We believe that investing in forestry and timberland makes a smart decision as a great long term alternative investment as it is a tangible asset which produces a steady income both in land appreciation and the production of wood. As well as being a great investment, it is also an ethical investment as it protects trees and forest areas as they have a value.
However, you don’t have to take our word for it, there’s an excellent article on investment portal Investopedia which highlights why it’s a good idea to consider timber as an investment. In the article Timber Investments Cut Down Portfolio Risk Robert Stammers looks at how the forestry industry is changing and how many timberlands are now owned by investors and management companies and this trend is set to continue “making the market more liquid and efficient” and “creating a more robust futures and derivatives market in timber”. He also highlights why a timber investment is a good thing to add to your portfolio, namely because –
- Demand is increasing
- It acts as an inflation hedge
- The returns have beat stocks from 1990-2007
- It has a low correlation to other asset classes
- The investment is not only in timber but also in the land as an appreciating asset
A recent article in the Financial Times supported the fact that forestry is a very attractive investment, as it “has been the top-performing asset class in the UK over the past three years, with total returns at 14.7 per cent, according to the agency Strutt & Parker, beating returns on commercial property, homes, equities and bonds.” The article also shows that forestry investments have significant tax benefits including 100% business property relief, no capital gains and relief from inheritance tax after two years of operation.
To find out more about investing in forestry and other timber investment opportunities in Uruguay, download our Investing in Forestry Guide by filling in the form below. The guide 15 page guide covers the benefits of choosing forestry investments including the increased demand and diminishing supply causing projected timber price increases. It also makes the environmental case for investing in forests and why trees are so important in the fight against global warming. Finally, it reviews why investing in forestry in Uruguay is such an attractive proposition. Please fill in your details below to receive the guide.
Alternatively, contact our team of expert financial advisors from JP Capital Investments to discuss whether forestry investments are right for you and offer other ideas and options to optimise your portfolio and manage your wealth.