A Beginner’s Guide to Timberland Investing

Metcalf Land Company of South Carolina helps people find land to invest in, including timberlands full of trees. In South Carolina, timberlands are known for their majestic pines. These lands can be used for game hunting (turkeys, deer, geese, etc.), recreational opportunities (hiking, ATVs), and/or commercial forestry. Some people even buy timberland in order to build a vacation cabin surrounded by tall trees– sounds nice, doesn’t it?

The History of Timberland Investing

Modern day timberland investing really took off in the middle 1970s and 1980s when institutional investors started buying timberlands up. If you were to look into who owns timberlands, the list might include pension funds, university endowments and charitable foundations, as well as really rich people. Meanwhile, did you know timberlands are often managed by Timber Investment Management Organizations (TIMO)? Among them are Hancock Timber Resource Group, Forestland Group, Campbell Global and Resource Management Service– and they’re responsible for– get this– some 15 million acres of timberland. Some timberlands are classified as REITS (Real Estate Investment Trusts) because of tax advantages. Over 17 million timberland acres are REITS, and you can look up the names Plum Creek, Rayonier, Weyerhaeuser and Potlatch for more info on those.

Reasons to Invest in Timberland

Why invest in timberland? Well, returns are favorable over time. They make people money. And they’re typically less volatile than equity investments. If you were thinking of investing in timberland, you’d most likely do so as a hedge against inflation and/or to diversify your portfolio. Plus, trees grow over time– they get bigger (more wood) and there are more of them (in volume), thus growing in value. The land value also tends to appreciate over time. Timber prices rise, too. All in all, timberland can be a sound long term investment.

Finally, the nice thing about timberland as an investment is that it not only can make you money but can also be enjoyed in real life. Want a place to ride your ATV in the woods? Or a place to build that cabin you’ve been dreaming about? Timberland ownership makes sense.

Want to acquire some timberland in South Carolina? Contact Metcalf Land Company at 864-585-0444 today

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