Life – a user's manual Part II - Boksidan

But this model is only partially true because there are other factors driving up prices:
- Proximity to a major urban area. Probably mainly because they are more interested potential buyers.
- A beautifully situated property often cost more than uglier ones.
- How well shaped the pieces of land are. With good shaped means that it is divided in a few different pieces
(each piece is called a shift), the shifts are more square than long, flat, rather than mountainous, beautiful,
close to water, et cetera.
- Fertile forest land costs more. The feritility is in Sweden with a figure called bonniteten. It tells you how
much growth in forest volume there is in a year and the figure shal be written in the prospectus, in terms of
average fertility (in Swedish medelbonitet):
- Small properties are valued higher per cubic meters than larger ones, probably because there are more
buyers who can afford it.
- High proportion mature trees raises the price.
- Low total price for the property will raise the price per cubic meters.
- Good hunting, i.e. wildlife-rich land, raise the price.
- Good forest roads.
Factors pushing prices down:
- The land is located in the backwoods.
- In areas where trees grow slowly, as in the mountain, the forest is cheaper per cubic meters, because the
trees are so skinny that one will get less volume in relation to the following work required to get new plants
to grow on the ground (which is a legal requirement), so the potential earnings per cubic meters of cutting
down the trees in the end will be much lower than for forests in fertile areas.
- A part of the forest should not be harvested (i.e. it is of type S3, see below).
- There is a recession.
- It happen to be few competing buyers.
- The seller is desperate.
- A large proportion of deciduous forest.
As a layman, it may seem impossible to estimate how many forrest cubic meters there are on the ground. But
fortunately at least the leading brokers, www.konsult.lrf.se, provides also this data in their sales prospectus.
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