We deliver qualified experience in the following areas of forestry to earn the most from your timber investment.
> TREE PLANTING & NATURAL REFORESTATION
> RELEASE SPRAYING & FERTILIZATION
> MANAGEMENT PLANS & APPRAISALS
As REALTOR for Great Southern Land, Eddie has rural property for sale in the following Counties in Alabama:
Welcome to Forever Green, Inc.
Eddie Stone, president of FOREVER GREEN, Inc, has a Masters Degree in Forest Business and has been working in the industry for 20 years. He is a Registered Forester and fully insured. FOREVER GREEN, Inc provides professional forest management to assist landowners in receiving the maximum benefit from their timberland investment. Serving the landowners of North and Central Alabama, FOREVER GREEN, Inc offers a full array of forestry services. Please take the time to look at all of the services and call or email for more information.
As FOREVER GREEN, Inc grew, Eddie Stone, RF, became a licensed real estate agent to better serve his clients. Looking for a quality real estate company that specializes in land only, he joined Great Southern Land. Eddie is now an Alabama REALTOR and the North Alabama Land Agent for Great Southern Land.
If you are looking for a good investment in real estate please follow the link below to view the land for sale in Alabama. These lands can be used for recreation, timberland investment, a rural property get-a-way, residential, hunting and/or commercial.
Why is Timberland a Good Investment?
Timberland is Uncorrelated to the Stock Market
Trees don’t know about wars, bear markets, housing crises, job losses, fuel prices or any other factor that negatively impacts the economy. Trees just keep growing year after year. So investing in timberland is an excellent way to balance your portfolio as its value rises even when stocks are falling. Timberland is negatively correlated with other components of the portfolio. Because timberland investments tend to move counter cyclically with stocks and bonds, and independent of the real estate sector, timberland can provide portfolio diversification. By managing the timber growth and subsequent harvests, the forest investment could be structured to act and behave in many respects like a long-term bond.
Trees Grow
Trees grow; the growth is compared to the interest earned at a bank. This growth is a hedge against price fluctuations. Returns from timberland investments are not only from biological growth but from upward product class movement, timber price appreciation, land price appreciation, and management/marketing inputs. The biological growth of trees makes up most of the returns of a forestland investment. Biological growth ranges from 3% in an unmanaged natural stand to 12% in an intensively managed highly productive plantation, with the average ranging between 6-9%. Upward product class movement comes from a tree moving from pulpwood to sawtimber, the two basic products derived from a tree. The value of sawtimber is about two to four times the value of pulpwood; therefore, as a tree grows, more of its volume is allocated to sawtimber. Value is being added as volume growth and product upgrade. In regards to timber price appreciation, there has been and is expected to be a strong demand for the South’s forest resources. Prices may fluctuate on the short-term but over the long-term are expected to increase. Timberland price appreciation is partly derived from the value the land itself can produce. Forest practices continue to improve the production from the land. Combine the improved production with timber price appreciation, the overall value derived from the timber will increase; therefore, causing the underlying value of the land to increase. Also, the land itself can increase in value independently of the timber influences. Increased demand for recreational property and geographical factors can both positively influence the value of timberland. In some areas these influences far out way the positive effects from the increased value from timber.
Historically, investments in timberland have provided total real returns (net of inflation) of 6-10 percent, and nominal returns of 9-15 percent.
Relatively Low Risk
As stated earlier, trees do not know of the outside forces that affect the economy, they just keep growing. As timber is growing it is standing on the stump. This storage of inventory allows flexibility to the investor. For example, investors can increase or delay the timing of harvests according to the price of the timber products. It also enables the forest manager to predict with relative certainty the volume and value of future harvests. Also, the investor can time revenues to match their own objectives, whether it is to meet a certain need or fill in gaps when other investments are depressed.
