The forest is a very long-term investment that is still little known.
The forest is a little known investment, as its profitability is only possible in the (very) long term.
Buying your own forest
First of all, if you dream of being able to picnic every Sunday in your own private forest, know that it won’t be easy.
For starters, not all forests are for sale, if you exclude the state-owned plots, you will have to find a forest owner willing to sell his property, and unless you know the “milieu” well, it will be very difficult to find your forest.
In the event that you find what you are looking for, the minimum investment is hundreds of thousands of euros, to which you will have to add annual maintenance and other costs, according to national and local regulations. These costs must include management plans, which will often be produced by an expert that you will of course have to pay for. In addition, a good knowledge of the forest world is strongly advised in order to develop it correctly.
Investing in a forestry group or forest savings
Becoming the sole owner of a forest can be long and complicated. A simpler method would be to become a co-owner through a forestry group, which is none other than a particular 99-year civil company in which you will have one or more shares (from 10,000 to 300,000 GBP per share).
Forest management is then carried out by a manager appointed at the group’s general meeting. Your investment is thus less exposed to climatic or legislative risks.
The other solution is to buy units in forestry savings funds, which are based on the model and must receive AMF approval to operate in UK. This type of fund is made up of at least 60% forestry assets and the rest in financial products.
Forests and woods allow you to invest in a property with a very interesting tax system. It is besides one of these main assets! It makes it possible to reduce between 50 and 75% of the wealth tax linked to this property.
It is also an asset during the successions, the forest makes it possible to transmit with an exemption ranging between 50 and 75%.
Be careful though, not all forests are the same. Depending on the species of wood, the “beauty” of the forest and the quality of its exploitation, the results that can be obtained from it vary greatly. It is therefore important to learn about forest management and to get good advice.