If you’re looking to buy a recreational property, it’s smart to consider the timber on a property as part of your buying decision.
Buying timber never really goes out of style, and now is a good time to look at timber as part of a long-term investment strategy, according to a recent story in Barron’s.
The story describes how timber can be an attractive investment in a number of ways:
- “Trees grow regardless of the politics in Washington.” Returns on timber have been shown to be consistent regardless of what the political climate is at the time.
- “There is, of course, the cash flow you earn from harvesting the trees and selling the timber. Then, there is the biological return, the increased value of the trees you haven’t harvested as they grow each year.” Also, a landowner can benefit from the appreciation of the underlying forest land.
- Properties stocked with young trees can be a good bargain, the story suggests. “They are cheaper to buy and have time to grow in value before they are ready to harvest. Pick timberlands with a large quantity of these, but then balance that by holding out a smaller selection of mature trees, which are ready to harvest and can earn you some immediate returns.”
Of course, the story emphasizes, patience is a virtue in this type of investing. And that ties in well with the long-term appeal of buying a property for your family’s recreational enjoyment in the coming years.
The experts in Potlatch’s Preferred Broker Network have deep experience in matching your recreational and timber investment needs, and they can help you find the property that will be perfect for you. Contact one of them today to get started!