Research has proved that timber industry has surpassed all hard asset investing industries. Increasing popularity of timbers and their sustainable growth ensures that return from its investment will continue such impressive as the previous years. More and more investors are now turning to timber industry to earn a stable monthly income from their invested money. Timber plantations are expected to produce enhanced growth as compared to the equities from other hard assets.
Companies like Ethical Forestry have now come up to management this forestry investment. Greatest advantage of timber is it is a renewable hard asset resource. This renewability feature assures that it is a low risk investing option and investors can enjoy its profit year after year. Since global demand of timber is always on hike, investors have the option of long term investment.
Timber – what kind of investment is it?
Now, since investing in timber plantation is a comparatively new project, many people don’t know what this investing option is actually regarded as. When a tree grows up, its value rises inevitably. Now, even if stumpage price of timber plantation remains the same, value of tree increases with its volume. Here are some characteristics of timber plantation that signifies it to be an investment option.
· Firstly, it requires investing in land, plantation and maintenance of timber trees.
· In this investing option, you put in money for long term since trees require a long time to mature. However, if the investor purchases existing timber plantations, through a company like Ethical Forestry, then he can experience faster flow of cash into his bank account.
· Potential loss is caused when there is damage to timber trees from fire, insect and disease. But as a whole, damages caused to large timber plantation are less than 1 percent. Many investment management companies also provide for the damage to timber trees.
· Timber being an illiquid investing option opens up opportunities to the investors who are interested in buying quality timber holdings at an affordable price.
· An essential feature of timber investment is that you can time timber harvest when the market is fluctuating.
How much predictable is cash flow from timber investment?
Timber is capable of providing manageable flow of cash depending on the structure of investment. Age of timber holdings is another factor that greatly determines the amount of return investors are likely to receive every month. If there different timber trees are of different age, then investors can have income all round the year. When the economic market experiences a downhill condition during the approach of harvest time, companies can delay the harvest. Many other such investment management is done by Ethical Forestry as well.
The company guides you as to when you should make the investment and when you should bar from investing your money. With so many facilities, investors now have the option to put in their hard earned income in a low risk asset that guarantees constant flow of cash. So, it time to wait and let your money grow with timber trees.
Companies like Ethical Forestry have now come up to management this forestry investment. Greatest advantage of timber is it is a renewable hard asset resource. This renewability feature assures that it is a low risk investing option and investors can enjoy its profit year after year. Since global demand of timber is always on hike, investors have the option of long term investment.
Timber – what kind of investment is it?
Now, since investing in timber plantation is a comparatively new project, many people don’t know what this investing option is actually regarded as. When a tree grows up, its value rises inevitably. Now, even if stumpage price of timber plantation remains the same, value of tree increases with its volume. Here are some characteristics of timber plantation that signifies it to be an investment option.
· Firstly, it requires investing in land, plantation and maintenance of timber trees.
· In this investing option, you put in money for long term since trees require a long time to mature. However, if the investor purchases existing timber plantations, through a company like Ethical Forestry, then he can experience faster flow of cash into his bank account.
· Potential loss is caused when there is damage to timber trees from fire, insect and disease. But as a whole, damages caused to large timber plantation are less than 1 percent. Many investment management companies also provide for the damage to timber trees.
· Timber being an illiquid investing option opens up opportunities to the investors who are interested in buying quality timber holdings at an affordable price.
· An essential feature of timber investment is that you can time timber harvest when the market is fluctuating.
How much predictable is cash flow from timber investment?
Timber is capable of providing manageable flow of cash depending on the structure of investment. Age of timber holdings is another factor that greatly determines the amount of return investors are likely to receive every month. If there different timber trees are of different age, then investors can have income all round the year. When the economic market experiences a downhill condition during the approach of harvest time, companies can delay the harvest. Many other such investment management is done by Ethical Forestry as well.
The company guides you as to when you should make the investment and when you should bar from investing your money. With so many facilities, investors now have the option to put in their hard earned income in a low risk asset that guarantees constant flow of cash. So, it time to wait and let your money grow with timber trees.