Why buy Timberland Real Estate?
Diversification, risk reduction, competitive yields, biological growth, increased demand for raw material, appreciation in value of a finite commodity, and preserving land for enjoyment and recreation. According to The Rocky Mountain Elk Foundation, about 2,500 acres of wildlife habitat are lost every day to urban sprawl. West Palm Beach, Florida, reports over 3,500 people moving there each month. Every day we drive past office buildings and shopping centers that were vacant lots only a few months ago. As population expands, the value of land goes up. It makes sense to own land. It makes better sense to own land with timber on it. Why? Because you receive profits from growing timber in addition to the appreciation of land. Timber increases in value two ways. First, timber growth will annually compound your dollars at 10% or more. Second, as timber grows, it changes in product class (grows from pulpwood to sawtimber). This change in product rewards you by making big jumps in unit price.
