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Feb 11
Why Is Timber Investment So Attractive
Timber investments are attractive not just in financial terms but also in environmental terms helping to secure you financial returns and also contribute towards the health of our planet for you, your children and your children’s children!
Some of the most attractive Timber Investments are based around durable tropical hardwoods for example Teak which is one the most popular and valuable tropical hardwoods in the world.
Teak’s attractive and hardwearing properties make it the timber of choice for the manufacture of top quality indoor furniture such as cutting boards, countertops and flooring. Teak is also the most desirable timber for outdoor furniture and yacht and ship building where weather resistance is desired and Teak’s high oil content provides waterproof qualities other hardwoods do not have, but Teak is in short supply.
Huge deforestation over the past century has seen timber supplies worldwide dramatically reduced and as a result managed plantations are being set up in order to meet demand for this valuable natural resource.
Why Is Timber Investment So Attractive For Private InvestorsAn Attractive Option?
Investors buying into a Teak Tree Programme will help lower the strain of deforestation on the planets natural rainforests and provide a sustainable source of commercial timber.
Not only are Timber investments ethical they also provide excellent financial returns.
The natural growth cycle of teak trees means that they grow in size and value exponentially over time and when they reach harvestable maturity, their value will have increased significantly compared to the starting investment.
For example Experience International at the moment are offering a Teak Investment where you invest £25,000 initially then other lower amounts of funds up to an additional 25,000 UK pounds during the term of the investment for a substantial return of £475,000, an initial return of around £50,000 at year 10 and then another £420,000 after the full 16 years.
Historically the price of teak has demonstrated rates of appreciation that continually exceed the rate of inflation and has risen by an average of 7.5% pa over the last 10 years.
Teak is a privileged natural asset, the combination of quick physical growth rates, high market price and extremely favourable supply and demand characteristics means that teak will be for the foreseeable future a much desirable commodity and a profitable investment for many Shrewd investors.