LAND APPRECIATION
 
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Links to Explore

MapWise: Florida Real Estate Maps and Analysis

View one of Florida's largest inventories of aerial photos, parcel data, future land use data, zoning data and more. Aerial photos are very helpful when researching a parcels timber, per cent of wetlands and estimated parcel dimensions.

Google Earth

Zoom in to view details of any address. Search for schools, parks, restaurants and hotels. Get driving directions. Tilt and rotation lets you view 3D terrain and buildings. Free version available.

Timberland has Demonstrated a Very Favorable Risk/Return Ratio - a Highly Profitable Investment Strategy
Historically, timberland investments have performed competitively with the advantage of having limited volatility. The annualized standard deviation of quarterly returns for the South Timberland Index from 1987 to year-end 2003 is less than half that of the S&P 500 index and about one third that of the Russell 2000 index.

Timber Values:

Another added value of purchasing large North Florida land tracts is the income producing timber. Timber provides for reliable asset appreciation which lowers investment risk. Timberland has a low to negative correlation with most traditional portfolio assets.

With the long-term demand for timber and the fact that trees will continue to grow, investors are finding timber to be a wise investment strategy. When timberland is purchased with preservation of the land and sale of the timber in mind, the selection process is extremely important to assure liquidity of the timber and the best return on investment. The three factors that must be considered is the biological age of the timber, timber product prices and land value.

There are three phases of growth for timberland that affect how it is used, its liquidity and overall risk.

  • Emerging Growth is the first stage where trees are just beginning to grow through 15 years of age. The timber is primarily pulpwood and liquidity is unpredictable.

  • Established Growth pertains to timberland where the trees are 15 to 25 years old. Timberland in this category becomes more marketable and liquid. About 40% of the timber is used for small dimension lumbar and 60% is used for pulpwood. Holding this investment for a 10 to 15 year period enhances return on investment with moderate risk.

  • Mature Growth refers to a well established forest where trees are over the age of 25 years. By holding this investment for 5-10 years, liquidity is tremendously increased as the trees become more marketable. Timber in this stage is primarily used for large dimension lumbar and plywood.

A balanced timberland portfolio provides the most competitive returns, best liquidity and lowest risk. A timberland portfolio where 30-40% is emerging growth, 40-60% established growth and 10-20% mature growth assures the best performance over a 10-15 year period.

Matt Raitz is your timberland and land development expert. Call Matt today and tell him what you are looking for. He will search for property by county in North Florida (Leon, Jefferson, Wakulla, Gadsden) and by acreage.

NorthFLLAND.com
850-766-2123

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