Timberland as an inflation hedge and sound time proven investment.

The buzz currently is the climbing interest rates to curve inflation.  With higher interest rates we experience not only a higher cost to borrow money, but we also see cash investors putting their money into FDIC backed CDs.  While it is hard to argue with a CD paying 5%, we do think timberland offers the same or better rate of return in the short term and will outperform a bank CD in the longer term.  Historically CDs have fluctuated with the FED rate and it will be no different in the future.  However, timberland offers a constant biological compounding growth no matter which political party is in office and no matter if the Dow Jones is at 30,000 or 10,000.  Historically the stock market according to the S & P 500 has had a rate of return near 10% or near 7.3% after inflation is calculated in.  Timberland once again will perform in that same area, but with timberland you have the opportunity to depreciate your investment over a number of years while that investment is growing, which helps offset your tax liability.  Stocks do not offer this.  You can also use your timberland investment for recreational purposes. Again, something that stocks and bank issued CDs do not offer.  Simply put we think that land is a great investment for individuals looking to preserve and grow wealth and enjoy the recreational benefits that land offers. 

To talk more about available land investments, we welcome you to contact us.  As our motto states, “MONEY GROWS IN DIRT... BUY LAND!”