A report just published by Jack Lutz, Forest Economist with Forest Research Group, looks at 61 years of data to measure the correlation of return to inflation for timberland and various other common investment assets. He also gives us a look at nominal returns for timberland over this same period.
The bottom line is that timberland continues to be a great place to put money!
Timberland beats inflation
There are many reasons why I believe this is true. But, this study makes the case that timberland, more than many common investment assets, has a high correlation with inflation (meaning, its return moves easily with inflation, giving the investor protection from loss of value). From the article:
“…timberland returns have always been greater than inflation during all investment periods. They have exceeded inflation by at least 250 basis points, and, on average, by just under 900 basis points.”
And, from my point of view, it’s the only asset where you can take your kids camping, hunt a turkey or grow some ‘maters.
Making a smart investment
With prices at levels not seen in 20 years, today’s investors have a unique opportunity to make a smart decision. We have a large selection of Alabama properties for sale, and can even help you find land that is not currently listed with our unique “Land Search Engine”. To get started finding your dream property, contact us.
Decisions of how and when to sell timber are difficult…
Cyprus Partners 7,400 acre Georgia listing mentioned in Washington Post on-line interview of Eric O’Keefe, editor of Land Report magazine, on Top-100 Landowners.
CLICK HERE to see full article.