Newbie Alert

[pickle]

Hi, just joined the Group and thought I would give a heads up as to why......

I have found an old semi-forgotten pension that is transferable to a SIPP that can be used to purchase, amongst other things, a woodland.
So at last I have the financial ability to fulfil one of my many dreams.

I have found a woodland for sale, within 25 miles of my home, and now need to find an IFA, who sees the sense in my plan, to sign it off.

The woodland would be a family affair, with just enough space to pay for itself.

My experience of woodland work is limited but used to live semi self sufficiently so hope that some experiences are transferable.....

Once bought, I hope to become a regular contributor and welcome any constructive feedback or assistance anyone may have to offer

Pickle (Tim)

[oldclaypaws]

Welcome.

Who scored the winning goal in the 1949 F.A. Cup? (Sorry, test question as you wanted a test)

I've said in other threads that woods appear to be a good financial investment, but compared to the other benefits of woodland ownership this is an insignificant reason for buying one. If I knew mine was going to lose 70% of its value in the next 5 years I wouldn't even entertain the prospect of selling it. Me and my wood are joined at the hip and it gives me satisfaction on so many different levels; health, connection to nature, dogwalks, shared venue with friends, fuel, craft materials, wild food, contemplation....& more.

Can you tell us more about the sort of trees and physical layout of the wood, plus your hopes for what you want to do there.

After 6 months of having it you'll think you were crazy to ever see it as a 'financial' product and be too busy talking about 'real' stuff, like kelly kettles and chainsaw sharpening.

I realised today upon checking I've only had mine for 2 1/2 years, but I can hardly remember life before the wood, it occupies my thoughts, actions and conversation for about 80% of the day & never been more content.

[SitkaSpruce]

What a fine excuse to buy a wood.
I told those who didn't understand why I had bought a wood that it was part of my pension planning- it seems to be an acceptable reason to those who otherwise think I'm mad! I did look at how to put it in a SIPP but was uncomfortable with my SIPP owning the wood not me.
Like Oldclaypaws I've owned my wood for 2 1/2 years and I hope it'll gain value in time and I'll be able to sell some timber but I'm realistic that I'll also be spending money on it. It's very much a longterm investment- which is why it's given certain tax breaks. However it's an investment that you can enjoy at the same time- I get huge pleasure visiting and working in the woods and seeing it change. And you won't need to pay to go to the gym!

[Terry]

Welcome Tim

As above and also, no need to wait till completion to be a regular contributor.
There are a number of future owners involved and some owners who have been very active prior to purchase.
A lot of info available and it can be useful for others to see what you have to deal with going through the process of buying a wood, so dont be shy.

[pickle]

Well that didn't go to plan....
Tried numerous IFA companies and individuals who all said it wasn't what they did. In the mean time the woodland is sold (subject to contract) but the estate agent says 6 people were chasing it. Back to square one.
Damn.
looking out for a better one now - "look forward".

I have previously looked at a carved up wood and thought i wanted a whole one - pro's and cons????

If anyone knows of an ifa who would be interested in my sipp idea please fwd me their details.

cheers

[Dexter's Shed]

I have previously looked at a carved up wood and thought i wanted a whole one - pro's and cons????

I suppose it depends on what you hope to do in a wood?

our 7.2 acre plot is a segment of an 80 acre wood, way too big for me to want it all, I like the fact that we have neighbours, more eyes on the area, always time for a cuppa and a chat, someone always has a tool that you don't, but can borrow, and everyone helps each other if need be, thankfully my 4x4 has never been stuck in any of the rides, but it's nice to know that should it happen, I have around 5 people I could ring to come down and tow me out, I doubt if the AA or RAC have 4x4 tow trucks that would get to us down our private track

[pickle]

So, i have now found an ifa who "may" be able to sort the sipp pension transfer. Guestimate costs of buying a £50k wood is £5k. So far so good. Then he says i need to have an income to pay the ongoing annual management fees of £2k. This cannot be me just paying into the pension but could be an individual (me) paying rent for the wood.
The dilemma is do i pay £2k a year to stand still, or should i think that this is a good investment - for my pension, as in will i year on year add £2k of value to the wood, never mind the standard annual increase in value of land.
i never thought of making a profit from the wood, but conversely i wasn't planning on spending money on renting the wood - at least not without charging the pension an annual fee for woodland management ( to the same value).
paying rent isn't a cost effective way of paying into a pension either!

i don't want to appear that this is solely a financial plan (so no trolling please), but i just don't have the cash to pay out for rent without a instant return...

how else could i "earn" money to pay the rent - positive constructive ideas are welcomed.

cheers

[Dexter's Shed]

I started keeping bees at my woods last year, you can get around 60lb of honey minimum per hive per year, which sells at £6 per lb, that could give you a decent return, as each year bees swarm, if you control this by splitting, each year your doubling the amount of hives

[Wendelspanswick]

I think your guestimate of £5000 is high for the cost of buying a £50000 wood, I would say £1500 tops.
Earning a revenue of £2000 from a wood is going to be difficult unless you either put in a lot of time or rent your wood out.
Logs is the obvious choice but does involve hard graft.
A campsite for say 6 weeks in the summer would generate the money but you would need to organise water and sanitation.
Woodland burials might be something to look at.

[pickle]

Thanks for the responses and ideas so far.
the £5k is not only for purchasing the woodland but also the costs relating to the pension, the extra hoops the pension provider/administrator wants etc
i like the idea with bees - what about neighboring woodland owners if i bought a split wood?
selling enough firewood doesn't seem feasible - especially with how much you can the fell without a license.
woodland burials seem a bit too creepy - not so if its family, but strangers....? Don't think the family would be happy to camp knowing who was there.....

holding camping weekends etc seem do-able - how would it work with the 28 day rules?
keep 'em coming - i might still be able to make this work.