Most people believe that purchasing land only for hunting purposes is a waste of an investment. Instead, people prefer to take their money in the stock market, expecting that it will always be there.
While investing your extra cash in bonds is usually a smart idea, remember that what goes up must come down. When the stocks pick up, it’s time to reinvest part of that profit in more secure assets. Real estate, particularly land, is an excellent investment.
Timberland and farmland have historically outperformed the equity markets in terms of return on investment. Real estate is an excellent investment because it is, well, real.
In contrast, a stock is a piece of paper with a fictitious value that is typically based on nothing. This is why a plot of property with valuable resources will always be highly profitable. It is, at best, a reasonable inflation hedge and, at worst, an investment that has made families wealthy. If you privately own land, it may be the only place where you may hunt in the comfort of your big “backyard.”
If you’re still unconvinced, here are some compelling reasons you should consider investing in hunting land yourself:
Investing in Hunting Land Gives Versatile Perks
Timber, hunting, and farming are activities that will always exist and gain value through time. Thus, owning hunting land is a wise investment. By assigning regions for tourist activities, you may create a successful investment in a place where your family can enjoy a lifestyle close to nature while still generating a profit.
Some people invest in hunting land because they enjoy the tremendous gratification of creating a great living environment where animals may grow and hunt in peace.
Buying Hunting Lands Are Risk-Free Investments
Volatility is linked with the stock market. It is exceedingly variable on a yearly level and extremely volatile over a hundred-year period. Contrast this with the value of farmland.
Since the Great Depression, land values have remained consistent and predictable, only correcting in the 1980s before resuming their upward trend. Over that time, the value of farmland has soared fifty times over.
Investing in hunting land is a solid investment and a great way to diversify your assets.
Using Leveraged Land Agreements
The ability to leverage real estate is one of its many advantages. For instance, the income from the sale of timber and farming can be utilized to pay off the mortgage loan.
The second feature of leveraged agreements is that when the value of timberland grows by, say, 3 percent, you earn 3 points on the total value, not just the cash you put into it. If you invest $30,000 in a $100,000 tract and improve in value by 3 percent, you will have made a 10 percent return on your investment (ROI).
You Get Your Money’s Worth on Hunting Land Investments
There are several ways you can commercialize your hunting grounds for ROI. For example, you can choose to lease a portion of your hunting land or build an exclusive hunting club right on your property. Another strategy is to utilize the land for its mineral resources.
If your hunting land is rich in minerals, you can sell the mineral rights and receive your money back. Alternatively, you may split the property and sell construction lots where allowed while keeping the remainder for hunting.
When it comes to timber, you can see it before you buy, unlike the other sources of revenue listed above. A bit each year, too. Professional foresters are needed because timber prices might fluctuate, but high-quality timber is constantly in demand.
With any luck, prices will rise along with it, allowing you to profit on both sides. When correctly managed by a skilled Consulting Forester, it is both renewable and ongoing. You and your family may reap the benefits of timber production for generations to come.
If you are buying hunting land in NY, Future Forest Properties, LLC. can help you find the best piece of hunting property to suit your needs and interests. We specialize in the purchase and marketing of timber tracts and serve those looking to buy or sell hunting and recreation properties. We are also uniquely qualified to assist you with your purchase or sale with our land management and real estate brokerage backgrounds. Contact us today!