Why Buy Recreational Forestland? July 9, 2009
Posted by LandRadar in Uncategorized.Tags: ATV, bike, cabin, capital gains, cell tower, fish, hike, home, horseback, hunt, hunting, investment, land, minerals, portfolio, timber, timberland, value, wind farm
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There are lots of reasons – here’s but a few:
1. Immediate and continuous enjoyment for biking, hiking, hunting, fishing, ATV’s, horseback riding, etc.
2. Potential camping or RV site.
3. Potential home, cabin or hunting lodge site.
4. Consistent cash flows from leasing opportunities (i.e. hunting, minerals, wind farmss, cell towers, etc.)
5. Emerging market opportunities in biomass, carbon sequstration projects and potential conservation outcomes.
6. Significan cash flow from the harvest of your mature trees. Benefits include:
a) Preferential tax treatment of timber harvest income (Capital Gains vs. Ordinary Income)
b) Inflation hedge (timber prices have historically kept up to or exceeded the rate of inflation)
c) Portfolio Diversification
d) History of attractive positive long-term returns.
e) Overall low annual carrying costs compared to other investments.
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