There are many benefits from owning a woodland, many of them intangible (e.g. conservation, recreation etc), but also the tangible benefits associated with investment and tax mitigation.
All of the woodlands we sell will have investment potential in both the timber production and the capital appreciation of the land. The relative importance of these two elements varies enormously with different woodlands.
Most of the smaller and ‘conservation and amenity type’ of woodlands will have a much higher intrinsic value as a woodland, i.e. with the trees still on it, rather than the sum of the two separate elements of timber and land. Therefore it is usually far better financially to maintain these woods with a tree cover than it is to clear the timber and sell it.
However, if a woodland is a true commercial forest then the timber element may be of overriding financial significance and the management of the woodland may be to maximise the potential timber production, and to clearfell the crop when mature or when you have the capital requirement.
Woodland values are far less volatile than many more traditional financial market investments and complement any portfolio. The long term nature of a woodland investment provides a high degree of stability and growth patterns are historically very reliable.
The value of a woodland investment can be further complemented by several tax advantages and opportunities (see Woodland Taxation).