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Eco Investments Excellent Way to Diversify Property Portfolio

November 8, 2010Article by Ray Withers

Eco investments are one of the best ways to diversify a property portfolio, property investment specialist Property Frontiers has announced. The firm says the fact that the investments are not vulnerable to stock market or property market fluctuations, often return higher than shares or bonds and have a similar ownership structure to property makes them an excellent choice.

For anyone that doesn’t know, an eco-investment is a natural commodity that is harvested rather than manufactured or mined. Eco investments will tend to be staple products like food or energy sources, for example, wheat, bamboo and militia. However an eco-investment can also be a luxury item, such as sandalwood.

A product is classed as an eco investment when its production is good for the local environment, for example helping to ensure the survival of threatened hardwood forests in the case of hardwood investments, or securing our future energy needs and reducing carbon emissions in the case of biofuel investments.

“Eco investments offer excellent growth potential,” says David Cox director of Property Frontiers. “For example, The Investment Property Databank UK Forestry Index returned 32% in 2007, five times higher than equities and bonds. This is also in stark contrast to the fall in property investments. Last year the global carbon market grew by 81% in the first nine months alone, and the World Economic Forum has stated that the global Carbon Market could exceed $100 billion this year,” he said.

“That is just two types of alternative investment, and these are made up of many varying products, some capable of returning even more,” Cox added.

Eco investments are becoming extremely popular with new products coming onto the market daily. However, not all products are good alternatives to property and there are some bad schemes out there so investors should choose carefully, Cox said.

“In particular, you should be clear that they have security of tenure and that the commodity is of lasting value, i.e. something that consumers are going to continue to need or want, rather than merely the latest ‘green’ fashion,” he said.

Property Frontiers are currently marketing several excellent eco investments, including investment in a crop of Bamboo in a sustainable bamboo plantation in Prachin Buri Thailand. Bamboo has some powerful vital statistics:

  • The fastest growing and most productive plant in the world.
  • A single bamboo clump can produce up to 15 kilometres of usable pole.
  • Consumes 4 times more CO2 than standard trees and produces 35% more Oxygen.
  • Sustainable and Eco Friendly alternative to hardwood timber.
  • Investors invest a minimum of £3,500 into a crop of Bamboo, which is then planted, managed, harvested and sold annually on their behalf.

For more information contact Property Frontiers on +44 (0) 1865 202700.

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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