Timber or black walnuts

I own vacant timberland. I mean I like to hunt but I don’t hunt on the land I own a whole lot. I also am super interested in forest ecology, soil improvement, forestry, so it’s a hobby for me. I got what I still feel like was a pretty good deal — found an estate that was being liquidated and bought it before it hit the market. It’s in the west central area of MS in a good neighborhood, but I don’t think it’s appreciated in value much, though the timber is growing and worth some $. I intend to trade up to more acreage some day. I was only looking for land that had the potential for timber harvest within a 20 yrs or so. Land with poorer timber and in better hunting areas has probably appreciated a little more than mine.

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We’re having trouble getting inflation to stay at the desired 2%.

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As long as you have a decent amount of cash and are flexible you can make some good money investing in raw land. Taxes play a big part. Price, desirability, and loan inteset are also very important as would be with any investment.

Ive bought and sold (flipped?) raw residential, water front, timber, recreational over the last 10 years and see annualized returns of 20-30%. You have to be flexible and avoid getting attached to your investment. I hunt on my larger tracks with my 8yo son, but am willing to sell tomorrow if someone comes in at market price.

Good luck and enjoy the challenge. With patience and dilligent research it can be fun and very rewarding.

I have family who have bought and held land in Florida.

Owning a home requires maintenance. Land? No.

And liability insurance shouldn't cost anything on raw land. You are correct if there is fencing or sheds. But liability is typically a minimal insurance cost (about $40 to add an address to an umbrella policy. Less than that if you are extending liability from your home policy).

So the game is timing the market and being comfortable with the tax outflow.
Even an idiot should be able to time things in a long window (20+ years).
But then you are tying up your money for something longer than just a short term inflation hedge.

How long are you seeing inflation as one of the primary motives for this investment strategy? Because I doubt you will outperform the market in a 20 year window.

Sold 7 lots down here to friends of mine about 5 years ago, about 2 years ago...sold 6 of them and they realized about 100% upside. So it depends on where you purchase. If bought in the proper location, the equity can be drawn upon if needed.

I am holding farmland (inherited) where I grew up. Have had multiple offers to buy but feel better off with the cash rent coming in. I know it’s not the same as your scenario of buying, but the don’t make it anymore. Plus I see a trend where people are wanting to move out from the cities. We have a large Amish population around these properties who are cash heavy and buying anything they can.

Yes. I absolutely love land. The freedom of owning beautiful land is one of life’s treasures to me.