Timberland for sale in Florida has been a popular investment for a number of years. As of of 2015, large institutional investors have invested over $100 billion in timberland globally, and 75% of those investments have been made within North America.
While these investments are popular among institutional investors, Florida timberland for sale has also been an attractive investment and portfolio diversification tool for smaller investors and entrepreneurs around the world. This is due to the financial opportunities occurring from biological growth and price appreciation.
Tree growth for investors means consistent appreciation. Year over year, the land value of timberland for sale in Florida increases because as trees grow, they become more valuable. The value of a particular type of tree can be determined by its growth and yield. Growth refers to a measured change such as weight, basal area, or volume. Different species of trees grow at different rates, so when looking at Florida timberland for sale, be cognizant of tree types. For example, pine trees, one of the most valuable species of timber, grow at an average rate of 10% each year for up to 50 years. The yield of a tree is equal to the amount weight, volume, or basal area that can be harvested or removed. It’s important when choosing the right property to have an understanding of how biological growth will contribute to the long-term return on investment.
Available Timber land for sale in Florida is dwindling making it a valuable asset to investors around the world, but the land itself is not the only thing appreciating. Timber is used to make homes, furniture, paper, and more, so there will always be a global demand for timber, even more so now with many countries turning to biomass fuels as an energy source. Tree type does play a role in the value and use, but by 2017, average sale prices are estimated to reach $373/mbf, compared to $356/mbf in 2014.
Timber is a renewable resource, so as timber is harvested stands can be replenished. Using best forestry practices, your timberland investment property will appreciate for years to come.