Woodland Investment – Is Woodland Investment Right For You?
There are many people, maybe you, who are looking for new ways of making money. Old style investments like stocks and bonds, art and antiques or currency trading have been used by in the know investors over time to make the most of their wealth.
A little understood and explored market has been quietly making money for large company investors and the super rich who use woodland investment schemes to legally bypass taxation, offset and cancel out their carbon output and also be used by them in some cases for recreation like hunting and shooting or for camping or hiking trips. Maybe that is something you would like to enjoy too?
The reality is that there are many drivers in the investment market that point to woodland investment being worth looking at now, particularly given the recent global financial situation.
I\’ll outline some of these factors for you below, and why woodland investment is an asset class that could be right for you.
Firstly after the recent credit crunch the banks have not been as keen to invest in real estate investments that promise the earth but fail to deliver in rental income or capital growth. The difference with woodland investment, that is the timber or forestry plantation,is that there is only ever growth as long as the trees are managed properly. Growing together in close lines they need to be pruned, cropped and cared for to ensure maximum growth and therefore financial returns. A simple woodland management contract can be set up with KPI\’s and tracked with a spread sheet the same as any other investment. Nature just keeps growing and the value of your investment keeps growing too and agricultural funders have been willing to lend on these schemes as historically they have seen steady growth that has outstripped stocks, bonds and even commercial property.
Secondly the taxation advantages are very worth while. As long as you hold your investment for at least 5 years you can get tax free returns on the cropping of the timber or biomass. Most tropical hardwood investments like teak are medium to long-term investments so you can think of it like a pension supplement. In fact in the UK you can invest via a SIPP or self-invested personal pension and have your land holding or tree investment set up in a trust for maximum tax advantages. These hardwood schemes are now starting up in Europe too especially Germany as fast growing hardwoods give better returns than the softwood pine conifers. It\’s a fact that demand outstrips supply with hardwoods so there is a corresponding high price on the realisation of the woodland investment.
With eco concerns about the health of the climate some people and businesses are opting to cancel out their climate pollution by an investment into a tree plantation. Woodland investment schemes can be set up to buy a bare plot of land and plant a new forest from scratch. As trees take in so much carbon dioxide they actually clean the air and are used in carbon offsetting schemes to counteract excessive air travel and other polluting behaviour.
You can even get to use your forestry to visit for hiking, fishing or hunting game. Imagine taking your colleagues on an adventure on your own land and doing a bit of hunting. I hope this article inspires you to think about the possibility of owning your own woodland investment and if you like it please visit my site in the resource box. Thanks.
Author Bio: Mike Bickley writes about woodland investment and sustainable investments at his site www.woodlandforsale.org.uk
Category: Real Estate
Keywords: woodland investment, woodland for sale, real estate, land investments, investment