Shared Family Memories Are Priceless, and Harvesting Timber Provides a Great Return
Many of us long for the simpler times of our childhood; dangling a fishing pole over a mirror-smooth lake, chasing fireflies at twilight or roasting marshmallows under a star-filled sky, and there’s no better way to create some new memories than by purchasing your own piece of rural America.
In a fast-paced world, the idea of owning your own rural property is becoming increasingly popular with urban and suburban residents. Whether it’s a farm, ranch or wooded retreat, there’s simply no better way to recharge your batteries than a weekend away doing what you love and making memories that will last a lifetime. The freedom of being able to do so whenever and however you please is uniquely fulfilling.
If your dream is bagging that trophy buck, hunting an elusive tom or just spending a quiet day in the woods, the experience is all the more satisfying when it occurs on your own land. Owning rural property allows you the opportunity to create food plots and practice responsible land management, thus making your property more attractive to game animals and potentially increasing their populations.
Rural recreational property is also a sound investment. Many owners see significant financial benefits, including value appreciation and income from renting out their getaways during times they don’t plan to use them. Unlike other investments, this is one you can actually enjoy as it appreciates. And if you do decide to sell, all signs point towards a healthy appreciation in value for rural properties in the coming years.
Another advantage of owning rural property is the ability to customize it as your tastes and needs change. You may decide you’d like to build a barn and keep horses, construct a home and outbuildings, or lease part of your acreage to grow crops or sell your marketable timber.
According to Investing in Timberland published in March of 2014, timberland on average outperformed the S&P 500 Index over the 10-year period 2002 to 2012. Our region has an abundance of the most desired timber species – elm, hickory, maple, walnut and the oaks: red, black pin and white.
The truth is that trees and marketable timber grow even through recessions and through crashes. And wood prices have grown consistently throughout the years. Very few companies can increase prices of their products by 6% every year, but the price of wood, according to money manager Jerry Grantham, has increased by that amount for the last 100 years. He says that prices have beaten inflation by an average of 3% a year over the last century.
Timberland is a sustainable asset that can provide returns for centuries. It is less volatile than the stock market and constantly grows in value. And if conditions aren’t right for harvesting your timber in a particular year, you just keep letting it grow, waiting for a more profitable time to sell. It is for investors who think long-term, and as with all investments, you have to make sure you buy timberland at a reasonable price.
Bill Ziercher is CEO at United Select Properties. He has been active in building, buying, selling, and managing real estate and income property for over 20 years. Bill is a lifetime member of Quail Forever and the National Rifle Association. Uniting urban buyers with rural sellers is Bill’s specialty.
For a free consultation on marketing your distinctive estate or rural property, you can contact Bill at 314.412.3966.