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the value of woodland

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Postby steve rollnick » Thu Feb 23, 2012 7:33 pm

Over the past 3-4 years, has woodland appreciated in value at all?


Thanks


Steve


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Postby TreeWorks Uk » Thu Feb 23, 2012 9:17 pm

It certainly has in my part of the world (Cheshire).


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Postby steve rollnick » Sat Feb 25, 2012 8:59 am

Thanks. I wonder about other parts?


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Postby MartinD » Sun Feb 26, 2012 9:18 am

a quick scan of currently for sale and recently sold woodlands on woodlands.co.uk would suggest that there is little difference between current prices and prices at the time I bought my woodland, about 4 years ago. If anything, they are possibly lower. I paid more attention at the time to my local area (which is also Cheshire) trying to check whether I was paying a fair price, but I don't think there were massive regional variations.


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Postby SimonFisher » Sun Feb 26, 2012 6:44 pm

Do you mean that there's little difference in woodland value from region to region, or that you think woodland prices are much the same now as they were four years ago and that is true across all regions?


I've just had a quick look at eleven the woods currently for sale on woodlands.co.uk in the south east region and observe the following: -



  1. Prices range from £5,400 per acre to £10,000 per acre, with an average of £7,100 per acre

  2. One piece of woodland that I know of sold at £5,400 per acre in March 2008


That suggests to me that values appear to have gone up.


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Postby woodbodger » Sun Feb 26, 2012 7:18 pm

Please,you can criticise me for this;

It is after all my feeling that no one else can access the value that I get from every time I walk down to our woodland, it appreciates in value. Pound shilling and pence, Euro's do not come close to assessing the worth of the pleasure I get from the environment that I am the brief custodian of. My feeling is that if you are looking for added fiscal value the stock market night be the place to go! I just knew I should have invested in Amazon 5 years ago I would be so happy!


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Postby Stephen1 » Sun Feb 26, 2012 9:34 pm

I think there is no doubt that the financial value of woodland has gone up in all areas over 3-4 years. No doubt.

However you have to be sure that you are paying the correct price for a piece of woodland at the time you buy it if you are considering it as a financial investment. The oppinion of myself, with no vested emotional or financial interest, is that buying a small woodland put on the market at a fixed price is unlikely to yield a financial benefit in the short to medium term. These woodlands are bought by individuals who are attracted to 'that' wood. I don't argue that the sort of companies that put small woods on the market at fixed prices are in any way 'bad' ! - they have put the pleasure of woodland ownership within the reach of many more people than would otherwise be the case (with all the social and ecological pros and cons that has entailed).

I think, in general, woods bought at auction, by private treaty or even formal tender are more likely than small woods sold at fixed prices to be capable of yielding a profit over a timespan as short as 3-4 years.

Tilhill/Savilles produce a good report each year on the value of woodland - though obviously they have an interest in demonstrating it's a good investment!


See;


http://www.upm-tilhill.com/NetsiteCMS/pageid/28/index.html


Then click Forest Market Report 2011 pdf


Note that units of area in such reports will always be hectares not acres i.e. divide value per hectare by 2.4 to get it in acres. Obviously such reports are not intended to be directly relevant to the sort of woodland most people here have - but I think such information is still of value if you are looking to see if buying a small woodland is best though of as an investment or a purchase. However the economy changes there is still a commodity value to woodland.


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Postby MartinD » Mon Feb 27, 2012 1:07 pm

response to Simon Fisher - I meant in my 'region'. There is not a lot of woodland in Cheshire, so at the time I bought mine I looked at Staffordshire and Lancashire for a guide, where prices were around £5,000 per acre, and they appear to be similar today. But it is difficult to value 'woodland' in a general way - if the wood is 'harvestable', it will be worth more than mine, for example, which is subject to a woodland TPO. This doesn't just affect it in a commercial sense, but means that anything I do has to be sanctioned either by the FC through the WIG, or separately as a 'planning application' by the local authority. Other factors which may affect the price will be broadleaf vs coniferous; mature vs young; remoteness (distance from population centres - bad); remoteness (fewer unwanted visitors - good); scenic / beauty value - and lots of others.


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Postby Exeldama » Tue Feb 28, 2012 11:45 am

I first looked at buyimng around 1994........ overtime i looked at various sites /private sellers etc. Since that time prices have obviously gone up but itis not straight forwrad to gain an accuratte value due to the obvious monetary changes..)inflation etc).


The best thing for an investor is your investment is not going to fall down or deteriorate..rather it will gain in copmlexity and variation.


If you want to make money invest in the finacial markets with knowledge and a capacity to weather the ups and downs as a long term investment you should be ok...but buying woodland as many have said before is comleteley diffrent.


Its an ethical choice with security..as you are paying for it you can enjoy it... you cant a pile of paper or figures on a computer showing you own half of Arsenal..(pretty worthless anyway)... in vestments are all about return... if your woodland doesnt return enough for you then you have probably invested in the wrong thing.... if as said earlier you can experience your investment and enjoy its complexities each time you visit it, then you have probably got it right.....


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Postby cstocks » Tue Feb 28, 2012 8:40 pm

Comparing woods that are currently for sale in the same area as mine, prices appear to have risen about 60% in the last ten years.

I use mine for beekeeping, I harvest the wood for my home heating, I use the dried bracken as bedding for my chickens and mulch for my allotment, and my other half and I go there with her nieces and nephew to enjoy the environment and cook sausages over an open fire.

The woodland probably just about pays for itself through honey and the effective value of the gas and electricity that I don't have to buy to heat my home.

But if you're looking to make money, there are probably other investments you could make that would be less work.


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