Do you want to diversify your wealth? Are you looking for a stable and profitable investment? Well, why not invest in the forest? In this article, we offer you an overview to know all about investments in forestry and their numerous benefits…
In recent years, we see that more and more French people want to invest in forests. And they are right, because the forest sector benefits from a growing market with strong investment potential! You probably didn’t know, but France is the fourth largest European country forest area.
It is estimated that today in France there are almost 17 million hectares of forest, which is more than 30% of France. And given the current environmental situation, these 17 million hectares are the subject of a colossal development policy.
In addition, this is evidenced by the average price per hectare of forest, which has almost doubled in 20 years! Therefore, it is not surprising that the forestry market has become a new Eldorado for investors …
What are the benefits?
However, forests generate income, in particular through the lease of hunting and logging. But you should know that investing in forestry is not necessarily the most important profit. Medium-sized forests give only 2% of the annual harvest. Investors are more interested in the revaluation potential of French forests.
According to the forestry of the deposit and consignment fund, the value of one hectare of forest grows by more than 3.5% every year. Do you know what is even more interesting? This is because the maximum price offered on the market can sometimes exceed the minimum price by 20 times!
So if you are planning to invest in the forest very soon, know that it is not too late. According to many experts, prices may even rise in the coming years.
It is worth noting, for example, that for the Paris Olympics, scheduled for 2024, more than half of the Olympic villages will be built mostly of wood. Therefore, we can already expect that the French forests will be extremely tense in the next few years. And as you probably already know, when demand exceeds supply, prices inevitably rise …
What is taxation?
But far beyond the potential for revaluation, investment in forestry is particularly valued because of its numerous tax benefits. You may not know it, but buying timber directly or through forestry groups can benefit from a tax reduction of up to 18%.
Having issued insurancestorm risk”You can also deduct up to 76% of your income tax contributions. But this is not the end of the tax exemption scheme proposed as part of the forestry investment! Under certain conditions, you can receive a tax rebate of up to 75% of the value of the forest when calculating the ISF.
Please note that this 75% tax exemption also applies to the calculation of inheritance and gift tax.
Buying a forest: a good plan or a bad one?
If you’re looking for a high-yield investment in a safe haven with an immediate return, well, you obviously won’t like investing in forestry. This type of investment rather rhymes with “security“and”stability”.
It is important to remember that investing in a forest means investing for a very long time in the hope of gaining additional value during the revaluation. Therefore, we should consider this type of investment more as a tool for asset diversification than anything else.
In general, people who are heavily taxed and want to benefit from a better tax exemption are primarily interested in investing in the forest.