I was interested to run across a site maintained by the World Forest Institute that talks about how institutional investors like pension funds, insurance companies and endowments have been adding forestland investment to their portfolios as a way to hedge against inflation in 2012. It goes on to mention that while most of the forestland investing is happening in the U.S. that other countries like New Zealand, Australia, China, South America and others are also seeing increased interest in forestlands as an investment.
There is an old Mark Twain quote, “Buy land, they’re not making it anymore.” Will Rogers echoed the sentiment in slightly different words. While you don’t want to invest in just ‘any’ land without doing good research and making sure you are choosing wisely, there is real truth that it is a limited resource. In the same way that some people choose to invest in precious metals to withstand economic turbulence, others choose to invest in land that has good value as a way to protect their money.
The North Woods are filled with beautiful forests and we have always emphasized buying land for the enjoyment and memories you and your family will build. However, the fact that that institutional investors have taken an interest in forestland as an investment tool was interesting enough that I thought it was worth mentioning here. If you have ever thought about buying vacation land for personal enjoyment, it might also be worth doing a little research to find out how your land might also serve you as an investment.