Timberland Very Attractive in Today’s Market

Timberland Very Attractive in Today’s Market

Timberland assets attract investors with the three basic components attracting investors to any commodity; it safely preserves capital; it consistently appreciates; and offers diversification. Timberland historically provides a long-term option to protect, hold and increase wealth.

Owning timberland acts as a buffer from your riskier, higher-fluctuating vehicles in your portfolio. But because timberland investment is such a safe investment, it is best approached as a long term option. Having a thorough understanding of the local wood market is the best line of defense when considering tracts, as timber markets are uniquely local.

With so many possible mitigating factors in timberland investment, your insurance agent has to be your best friend. With any number of outside factors, such as fire, bugs, disease and hurricanes, having a risk management plan and topnotch insurance will hedge against complete and utter disaster. More than adequate protection lets you worry more about the timber markets and your investment performance.

And as 2015 gets underway, timberland investment is safer than ever. For the first time in over five years, timberland is actually outperforming farmland. As the scars from the housing crisis continue to heal- housing development being a top timber consumer- the long-term and short-term both have very optimistic futures. Projections consistently call for 9%Y/Y returns on timberland, a top 5 commodity.

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