Forestry Investment – More and more people are investing in and purchasing woodland around the UK as an alternative to buying houses or investing in bonds.
Mark Herrod of Strutt and Parker, which sells woodland to investors and buyers, says that investing in wood is a “safe investment.” He explains that woodland and forests have become a safer asset class than many other investment options over recent years, and particularly since the recession began. He says, “unlike house prices, woodland values haven’t dipped. It’s land, after all. It would be worth more as farmland, without the trees.”
People buy woodland for a variety of purposes. Some simply want to have their own piece of land to use as they wish for a number of years before selling the land or timber when it reaches maturity. These buyers often sell the wood on as woody biomass, which is expected to be used more and more for the generation of bio-energy.
Carbon-offsetting schemes are another area of growing interest and investors are increasingly buying up woodland to use in these schemes as the importance of reducing emissions grows in the public concsiousness.
Investors are also often tempted by tax breaks that come with forestry investment and ownership, such as the lack of capital gains tax chargeable on profits made once trees have fully matured.