Why Forest Land is a Good Investment



by Laura Mueller

Long before there were massive commercial and residential developments there were forests, which means that purchasing forest land is one of the oldest land investments around. And centuries later, it’s still one of the best investments that you can make.

There are a number of unique benefits to buying forest land, regardless of whether you’re looking to turn a profit on the timber or not. With that in mind, here are five reasons why forest land is a good investment — and why you might want to consider adding it to your land buying portfolio.

1. It’s sustainable

As we all know, saleable assets don’t grow on trees. But trees themselves? That’s a whole other story. With proper replanting and sustainability-driven techniques, you can ensure that your investment is a long-term one, continuously repopulating your timber supply while also making a return on it. So if you’re looking for a land investment you can one day pass on to the grandkids, forest land is hard to beat.

2. Timber is impervious to other market forces

Ebbs and flows are normal in the economy, but that doesn’t mean they’re welcome, especially if you’re invested in an asset that faces lower demand as a result. Fortunately, timber is relatively impervious to market conditions, with continuous need despite what the economy is doing. That’s not a promise that you won’t experience times when demand is higher than others, but you can be pretty confident that you won’t face a time when demand is gone all together.

3. It’s a hard asset

Like other types of land, forest land is hard asset — meaning it’s inherently valuable and that value tends to stay steady over time. And unlike other types of assets, it’s unlikely to face huge swings related to inflation. That sort of predictability is a good thing in all investments, and one of the reasons that forest land — and all other types of land — remains a top opportunity for both private and commercial investors.

4. It has value beyond money

There is so much to appreciate about forest land beyond its income potential. Whether you intend to build on it or use it for recreational purposes, owning a piece of forest is like owning your own private natural oasis, complete with abounding flora and fauna, and no shortage of inherent beauty. This is a big driver for forest land investments, with many people who make the purchase utilizing their property as much for the environment it offers as for its profit value.

5. There’s no pressure to act right away

Forest land is a hands-off investment that sustains itself without the need for human input or action (and in fact, the less human interaction, the better). If you’re playing the long game with your land portfolio, or if you’re just not ready to capitalize quite yet, that’s a big benefit.

You can find forest land for sale in every state. So if you think it’s right for you, browse our listings in your area and work with a local real estate agent to discover more about your options.

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