Timberland Investing: The Basics

If you’re thinking about buying timberland in North Florida – particularly in the Lake City area – but you’ve never done it before, there are a few things you need to know.

Timberland can be an excellent addition to your investment portfolio. Historically, there’s a positive correlation between timberland returns and inflation, and it’s also just another way to diversify.

There are a few ways you can make money on timberland, although there are no guarantees. Check out this quick list:

Land appreciation
Timber price increases
Growth of product

Land Appreciation

Land appreciation can be pretty significant – especially if you buy timberland in an area that’s experiencing rapid growth. Sometimes a developer will want to move in; sometimes a golf course company will want to set up shop. There are many former timber tracts that are now shopping malls, subdivisions and other big-name places.

Timber Price Increases

Historically, timber has increased in price. It’s often slow and steady, but if you know the market, you may find that timber is your best possible investment right now.

Growth of Product

The bigger your trees grow, the more profit you can make. And if there’s no money in selling your timber today, just leave it on the stump – where it gets bigger and more mature anyway – until the market improves.

Of course, this isn’t financial advice, and you shouldn’t take it that way. You should always talk to your financial adviser before you take any major steps.

Are You Buying a Home or Land for Sale in Lake City?

If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.

Check these out:

$248,535

SW Mcgriff Ln & Kaman Lake City, Florida

13.15 Acres

$549,900

15585 184th St McAlpin, Florida

2 Beds 2 Baths 1,130 SqFt 41.81 Acres

$1,462,200

S Water St. Starke, Fl Starke, Florida

48.74 Acres

Timberland Investing: The Basics