The Benefits
What are the likely returns I’d see from my investment in a planted building plot?
The purchase of building plots within hardwood plantations is an extremely flexible investment that compliments and diversifies any savvy investor’s portfolio. Tropical hardwood investments, teak specifically, has a long history of confidently producing significant returns and is becoming an even more profitable and responsible way to invest in today’s world.
The outlook of timber investment is today as promising as it was during the twentieth century. In particular, timber investment is the single best performing asset of the last 30 years. From 1976-2005 timber investments saw average annual returns of over 13%. If you had invested $20,000 in timber in 1972, you'd be sitting on over a million dollars in 2006. That is better than stocks (70% less), real estate (75% less) and bonds (76% less). Timber also has a great long-term track record. Between 1910 and 2000, timber prices rose at an annual rate of 3.3% above the rate of inflation.
Sustainable forestry, properly managed as a selectable and stable investment is more profitable than short term forestry destruction. Not only do plantation plots in Costa Rica secure a very healthy return, but you will also be directly responsible for reducing the demand placed on our natural rainforests. By investing in our plantations you are helping to reduce the burden placed on the world’s natural rainforests whilst helping to reduce your carbon footprint. Once your tropical hardwood trees have been harvested, you can choose to replant the land or build your dream home as you wish.
Example Projections *
- If you invest €10,000 your net profit after 8 years will be €48,000 plus your original investment back
(Total return €58,000)
- If you invest €50,000 your net profit after 8 years will be €262,150 plus your original investment back
(Total return €312,150)
>26.6% Returns per annum
Example projections based on:
Dollar = €1.35
Increase in price of Teak 7% pa
Increase in the price of land 20% pa
* Please note – these projections are very conservative. As of June 2008: teak prices are increasing at 8.5% per annum, and land prices in this area increased by 40% last year.
To view our full projection spreadsheet for the Finca di Pacifico II teak plantation project, please visit our Download Brochure and Media page.
For more information on tropical hardwood investments, please visit our Why Tropical Hardwood page.
Click here for "The Stakes"
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