Should I Invest

[Lucan]

16 hours ago, scbk said:

It's a peatbog in Caithness with a conifer plantation on top, the price is probably about right!

I would say so. Commercial forest plots like this are all very competitively priced, no bargains to be had unfortunately. 

 

In a previous life I spent 5 days measuring timber in a similar sized forest for a client. The client lost out as the winning bid from the competitor we estimated to be a return on investment of only 1% profit. As I said it's attractive if your looking for a tax-free place to put your cash but not it's not the right business model if your taking out a bank loan.

 

Buy yourself half a castle for the price of a one bed flat in London and Airbnb it for £500/night

https://search.savills.com/property-detail/gbabrsabs160093

 

[Ciaran Taylor]

Owners get paid 5-15k/hectare for clearfell. Replant might be 2k per hectare. Which is why most smaller blocks are getting sold at 10k/hectare rather than your 2.5 (which almost all woods used to get sold for). Worth noting that 90% of forestry land in Scotland gets sold to 1 company. Banks will only loan up to 2 thirds and are, in my opinion, crap at giving new people a chance at projects like this because of the scale - even when you point out that smaller blocks are far more expensive. Rich get richer.