Author: Hunter Brant, President of Oakwood Realty Group
Date: January 20th, 2015
When considering an investment in recreational property, Florida Farms and Timberland for sale, are excellent candidates for quality return on investment and recreational uses.
This current opportunity is for a stable, alternative investment in recreational hunting property with potential for sustainable timber and lease revenues. This asset class is a hedge against future inflation, is renewable, an investment in the stewardship of a critical ecosystem and it is sustainable. The exit strategy is the sale of the property in the future as an improved, high quality recreational or plantation style property with sustainable revenues and a track record of management by a professional team of foresters and biologists.
Currently, the land market is seeing increased activity but is still well below its historical highs in price. We believe this asset class will continue to be attractive to high net worth individuals who want to invest in a prestigious, high quality property for enjoyment, legacy and return. The opportunity to offset management cost and derive return through intelligent and efficient management is especially important, and possible, if the right property is located and managed well. The potential for significant upside through asset appreciation if market conditions improve coupled with the enjoyment and use of the asset during ownership differentiates this asset class from most others.
Given the current timing in the market cycle opportunity exists for appreciation, not only in the dirt but also through the growth of the existing timber and in the recovery of the timber market itself. Location is also a primary factor to the appreciation of these assets and certain parts of the southeast will excel compared to others as the market returns.
Key qualities in these properties are:
- Distinguishing characteristic or unique feature
- Soil quality
- Water features
- Topography
- Proximity to other similar and like-managed properties
- High % of usable acres
- Ability to produce sustainable income from multiple sources
- Acquisition at proper time in market cycle and discount to real value
Contact Oakwood Realty to learn more about properties that meet these criteria and how we can provide the trust and expertise necessary to acquire and manage them effectively.