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Forestry Investment Receiving Rave Reviews
October 19, 2009Article by Ray Withers
Property investors should diversify their portfolios according to experts. Who the advice comes from and what they advise diversification into are the biggest surprises however.Well known international property investment consultancy Property Frontiers recently announced the addition of a timber investment product in the Sri Lankan jungle, which they said was perfect to meet the necessity that property investors now face to diversify their portfolio.
Director Ray Withers stated the need for property investors to diversify their portfolios.”We live in a changed world. While we still consider ourselves as property investment specialists, anyone who didn’t know the importance of having a diversified portfolio quickly learned it over the last 2 years. For that reason we are and will continue to diversify the range of investment products we offer, so that our clients can diversify their portfolios with a company that has earned their trust,” he said.
And sourcing manager Ben Jeffries explained why timber investment is what to diversify into.”In recent years wood flooring has become massively popular, with tropical wood species being among the most popular. They are also among the most expensive because short-supply makes the products difficult to obtain. This makes an investment like this somewhat of a no-brainer, especially when you take it as part of your [Self Invested Pension Plan] SIPP,” he said.
The Sri Lankan forestry product is very much an entry level investment with the minimum outlay being just £10,000. The minimum is a 6 year investment in Agarwood seedlings expected to yield in excess of £40,000. The highest yielding option is a 15 year investment in Teak seedlings at £15,000, expected to yield in excess of £240,000.During the term of investment, buyers are involved in the business including having a say in how many seeds to plant and when to harvest.
This investment product has such high potential gains because of the massively rising demand for tropical hardwood, and the fact that supply levels can only ever reduce. This continues to apply upward pressure to the price of tropical hardwood products, which have continued to increase in price throughout the current downturn.