Green investing is the new buzz word and offers investors the ability to profit and get a return on their money as well as offering sustainable moral and feel good factors. Forestry Investment is particularly good as it is based on the land sale or lease concept, which mean investors can buy/rent into a plot of land which has trees growing on it. This is your typical plantation model and offers a long term sustainable investment. Wind, Solar and other green technologies are much more difficult to offer to investors as they are huge infrastructure costs and difficult to split into options, so many go through collective investment schemes or funds.
Green investments are typically based in developing countries, so many hardwood plantations are in countries like Sri Lanka, Thailand, Panama, Brazil, Costa Rica. They offer the ability to employ and empower local people, bring money into local economies and offer long term community benefits.
Hardwood Investments offer good short term literal growth. The term of these type investment start from 7 years, where you buy already half grown trees to seedling investments for up to 20 years. Depending on the species harvesting usually starts after 5 years and so returns are paid after that.
Many species are available but the usual suspects are Teak, Paulownia and Eucalyptus as they are all fast growing trees.
Interest in this type of hardwood investment is growing and is a great addition of an investment portfolio. Many investments are suitable to add to a SIPP (UK pension vehicle).
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