One of the best things about purchasing land is that it usually comes with potential income opportunities. The United States government actually offers several landowner incentive programs that range from wildlife conservation to forest enhancement and grassland reserves.
In terms of valuable land assets, timber offers additional income opportunities. The same goes for plots of land that can be dedicated to young pine plantations, depending on how many acres you plan to purchase. You just have to be sure that your intended property comes with the rights to sell timber or grow certain types of trees for reselling.
As far as financial gains are concerned, land in general has been proven to increase its value or at least hold its current value over time. It’s far less volatile compared to stock market investments. For example, even if the land’s value decreases for a short period of time, you’ll still be the owner once the value and prices increase again.
Think of it this way: More land isn’t exactly being made. So, you can always put money into your land and get it back when and if the time comes.
However, it’s up to you to decide whether or not there’s investment potential, which means you’ll need to determine the following:
- Can you place portions of your land in a conservation program rendering it untouchable by development or other non-eco-friendly activities?
- Can you maintain the land in terms of creating healthy habitats where all kinds of wildlife and plant species can thrive? (This would include endangered species as well.)
- Can you set up a sustainable forest, certified tree farm or regenerative farm that protects the environment while also drawing out carbon emissions?
- Is there anything on the property, such as mature wood, that can be turned into a side business?
- Can you build valuable structures on the land that will increase property value?
Not all the above have to apply. In fact, there don’t need to be any significant investment opportunities just to buy recreational land. Sometimes, the potential for the above is all you need in case things take a turn for the worse, financially speaking.
You’ll also want to consider non-financial investments, such as buying recreational property and turning it into a place that can be passed down among family to enjoy for generations to come.
