You enjoy nature and prefer concrete investments? Investing in forests can be the most appropriate solution for you as an investor who’s looking for a stable, financial markets-uncorrelated product with limited return on investment (ROI) but attractive tax cuts.
Forestry groups allow you to invest in this long-term asset, which price has been rising for the last fifteen years and should continue to do so according to France Valley Investissements that advises 8-year-long investments at least.
In 2017, “forecasts point to (unsecured) growth between 1% and 3% of the price per hectare of forest, to which the stands’ natural growth adds to the total value,” explained Chief Executive Arnaud Filhol. While the average price per hectare of forest is around 4,000 euros in France, this can rise to about 8,000 euros, within a range from 5,000 euros to 20,000 euros for a forest of mature Douglas resinous wood, Filhol added.
Benefiting from tax advantages that are now more limited on most other financial assets, investment in a forestry group may be entitled in France to a reduction or even an exemption from wealth tax (ISF), to an exemption from inheritance rights and to a reduction in income tax (IR).