Investing in Woodland

Property investment has long been recognised as a solid and easy to understand investment for long term growth. Woodland is not the first thing that springs to mind when thinking about investment and it is only in recent years that woodland has opened up to the general public as an investment vehicle.

On average, land prices rise at a rate of 5-12% per year. Currently with its popularity, woodland is in high demand and therefore, values have risen well over the past few years.

Woodland for sale not only provides a tangible investment but comes with the added bonus of possible tax advantages. Commercial woodland is exempt from Inheritance Tax, and with many people getting stung from the increase in property values of their homes, people are keen to ensure their loved ones are secure in the future - even after the tax man has had his cut of an estate.

If you are truly looking to purchase woodland as an investment, then as with all property, the key is location. Private woodland in the Southeast, particularly within the M25, is very hard to find, so if you find anything fitting this description at a good price – then it could have investment potential.

Alternatively, any woodland priced at under £4,000 per acre should be considered a good buy.

Revenue from woodland

If you are expecting an income from your private woodland, then you need to look at your figures carefully and do some research. Only larger acreage yields any substantial revenue from timber sales and on most woodland there are limits on how much can be felled per annum and the majority of the woodstock must be replenished.

The UK's climate is well suited to growing trees, as such, harvesting your woodland for timber can make a tidy profit. Income generated by sales of felled or standing timber is tax free. Further to this, any increase in the value of standing timber is also free of capital gains tax.

It is unlikely that any woodland would obtain planning permission for a residence and therefore, most people who buy woodland do so for pleasure and enjoyment. You can put non-permanent structures such as sheds or tree houses in woodland and you can also camp in a caravan for up to 28 days per year.