Thursday, September 6, 2012
AAA praises Forestry investment Advocate for Supporting Alternatives
A recent article in The South African has attracted praise from (AAA for promoting the benefits of investing in timber.
Boston, MA, September 06, 2012 - A recent article in The South African has attracted praise from Alternative Asset Analysis (AAA) for promoting the benefits of investing in timber.
The article was based around an interview with Graham Rowan of Wealth Invest, who asserted that money really does grow on trees if you invest in forestry and timberland in the right way. He said that timber was his favorite ‘green‘ investment and added that there are a few tips to acknowledge before taking the plunge, but that healthy returns are easy to come by.
Firstly, Mr Rowan points out that timber investment has beaten inflation over the past 100 years by an average of 3.3 per cent. AAA’s analysis partner, Anthony Johnson, said that this is a particularly attractive trend during these times of high inflation and low interest rates of savings. He added that, depending on who you invest with, those interested in buying up forestry land can do so for a lot less money than in the past. For example, investments of less than $15,000 are needed to invest in the sustainable plantations run by Greenwood Management in Brazil and Canada.
Another factor to think about when considering forestry investment is the rate of growth for the species in your plantations or forestry project. The faster the growth, the quicker the returns and the less long-term the investment is. For those who want faster returns, investing in Acacia or eucalyptus is a good idea, for example. He also points out the location of the forests makes a difference on the speed at which they grow. He states: “UK forestry grows so slowly that you may find you are investing to benefit your grandchildren!”
Mr Rowan also recommends that investors look closely at any small print and check where they stand if they would like to exit the project early. Overall, though, he recommends forestry as a green investment option.
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