There are many ways that an investor can diversify their portfolio. Some who have not delved into stocks may have their luck in the game, and those who haven’t invested in properties may be pondering on the option. However, not many investors know about timberland investments, a fast-growing investing solution that has grown to billions of dollars.
As you may have guessed from the name, timberland investing is all about investing in forests and, more specifically, the trees situated in the land. The return comes from the harvests of these trees used for mass production, and records have shown this investment opportunity to be as good as equity investments with the added benefit of less risk!
Still not convinced to try out timberland investing? Here’s why you should:
Timber Can Be Stored
One problem with many other investment solutions like gold is that when prices drop to unfavorable amounts, you’ll be forced to either wait for the price to go back up or sell it, fearing it may go lower. Unfortunately, even if you wait, you won’t gain anything, especially if the price falls below your investment price.
What happens if the timber prices you were planning to sell at have dropped? You don’t have to sell it at all. Timber is something you can quickly leave as is until prices are favorable again. The bonus to this is that as you leave the trees to grow, they gain volume, which further boosts their price.
Timber Demand Is High
Many stocks you find today have already been around for quite some time. This means that the demand has somewhat steadied out, if not dropping. As you know, demand that doesn’t change or drops means one thing: the price either does not change or starts to drop.
On the other hand, timber is always in high demand, and that demand is only going up. Trade for timber each year is growing, and this means that if you invest in timberland investments today, not only will you enjoy steady prices for timber, but the rise of it, too!
Less Volatile Than Stocks
One reason not many people like investing in things like the stock is the volatility of it. If you aren’t sure what this means, volatility is the measure of the degree to which the price of an item can change. As you may well know, stock prices can vary drastically, either for good or for bad. However, uncertainty is the risk, and with stocks, things get quite uncertain.
With timberland investments, however, the volatility isn’t a cause of concern. In fact, it is half that of stocks. This is because timber isn’t directly connected to financial markets, making the risk of investing in timberland investments much less.
There are so many other reasons to invest in timberland investments. It’s a tangible investment, for instance, meaning that you can easily use the investment for other purposes such as a place to relax, enjoy a hike, and more.
That said, timberland investments promise to be an excellent investment to add to your portfolio. It promises great earnings with minimized risks, and with the demand for timber always on the rise, you’ll regret not investing in one soon!
Future Forest Properties is formed to help clients maximize sales and more with their timberland investments. If you are looking to purchase forest properties and more in New York, work with us today!