Viewed as a long-term investment, purchasing woodland can offer your own private slice of nature, and provide an encouraging return in the process. Over the past two decades, returns on woodland investments have grown to around 9% – thats higher than the average return on a rental property.
Is woodland worth buying?
Woodland is cheaper than arable or pasture land, so it is a good option if you want to buy land that is relatively cheap. There are also taxation advantages. Any income made from the sale of timber is tax free, as long as it is it just cut to length and sold.
Can you make money from owning a woodland?
As with most assets, there are two main ways to make money from trees: capital gains and income. So you can buy a plot of woodland and hope that it goes up in value by the time you come to sell it. Or you can buy a forest and sell the timber that it produces.
Can you build on private woodland?
If you own a piece of woodland you are allowed to build a cabin on this land for occasional use in order to maintain or work on the woodland. This might take the form of a tool shed; store; office; refuge or shelter.