SVN | Saunders Ralston Dantzler: Premier Timberland Broker
Our land professionals understand the importance of making the right investment and have assisted in the sale and purchase of a variety of Florida timberland properties ranging from smaller acreage transactions to large land purchases.
In March 2014, Dean Saunders, ALC, CCIM and Jack Vogel of SVN Saunders Real Estate represented the buyer, AgReserves, Inc. in a record $562 million land purchase, one of Florida’s largest timberland purchases in history.
Why Is Timberland For Sale in Florida Such a Desirable Asset?
Most investors look for investment vehicles that will earn large, safe, and long-term returns. Investing in Florida timberland for sale is a great way to earn those returns while diversifying your investment portfolio. Timberland is an alternative asset class investment that offers many attractive benefits for land investors.
The return on investment in timberland for sale in Florida is mostly driven by demand for harvesting timber and by the value of the land upon which the timber is cultivated. Below are ten reasons that make timberland for sale in Florida a desirable asset:
1. Timberland has historically proven to generate consistently large returns and is a less volatile asset when compared to other investment types.
2. Timberland has a low correlation with other major asset classes such as stocks and bonds.
3. Unlike other major asset classes, timberland returns are positively correlated with inflation. Historically, timberland returns have exceeded the long-term rate of inflation.
4. As an effective diversification tool, timberland can help investors achieve a more “efficient frontier,” a term for increasing total returns at commensurate levels of risk.
5. Long-term demand drivers for timber such as paper products and building materials are strong.
6. Timberland is a sustainable resource investment.
7. When conditions for harvesting are not ideal, investors can “bank it on the stump.” A term used in the industry to sit on the investment, which allows the timber to grow and increase in price until market conditions are right.
8. Investing in Florida timberland for sale offers investors highly attractive and unique tax advantages such as the potential to allow income from harvesting to be treated as capital gains.
9. Timberland returns are equal to or better than returns of comparable investments.
10. Timberland growth is predictable. In the U.S., trees in fertile growing areas grow at a rate of 6-8% per year, and the price of wood has steadily increased 6% per year over the last 100 years.
Benefits of Buying Florida Timberland for Sale with SVN Saunders Real Estate
Working with an experienced sales associate from SVN | Saunders Real Estate can help you determine which timberland properties offer the best opportunities for you as an investor.