A forest is a viable form of currency at OP - and a well-managed forest property can be used as additional collateral for a mortgage. The fair value of the forest estate is determined with OP Forest Appraisal, which calculates the forestry value of the estate using a sum value method. The loan can also be repaid in larger instalments with income from timber sales.
You can also ask another person to pledge their property such as a forest estate as collateral for a home loan. If the principal debtor is unable to make the payments, the collateral provider's liability is limited to the pledged property alone.
If you are purchasing a forest property, you can finance it with a bank loan, either partially or entirely. In this case, the acquired forest also serves as collateral for the loan.
Order an OP Forest Appraisal to discover your forest estate’s fair value and logging potential in the near future. You only need the estate’s property identifier to order the appraisal.