Wednesday, April 11, 2012

Demand for Timber Frame Houses is 'Good news' for Forestry investors, says FRA

A new report from MTW Research shows that demand for timber frame housing will increase hugely over the coming four years in the UK. This could prove good news for forestry investors, according to FRA.

Bainbridge Island, WA, April 11, 2012 - A new report from MTW Research shows that demand for timber frame housing will increase hugely over the coming four years in the UK. This could prove good news for forestry investors, according to Forestry Research Associates (FRA).

The researchers found that as demand for sustainable, energy efficient building materials increases, sales of timber frame homes will increase by 60 per cent in volume. Sales values will increase even further, growing by 80 per cent from current levels.

FRA, a research and analysis consultancy focusing on forestry investment, claims that those with investments in the timber industry could benefit from this new popularity of timber framed homes. The researchers claim that new regulations, such as the Code for Sustainable Homes is helping to promote timber as one of the lowest carbon forms of construction material.

“The research carried out by MTW Research was very comprehensive,” stated FRA’s analysis partner, Peter Collins. He added, “Around 80 per cent of the industry was involved in the study and much of the industry seemed extremely positive about what the future holds in store for them.” Growing demand is expected to come from the house-building sector, but also from the commercial, leisure and retail sectors, which are all also under pressure to turn to more sustainable building materials.

FRA is an advocate of investment in sustainable forestry projects, such as those run by Greenwood Management in Brazil. More and more people are investing in alternative asset classes such as forestry as the traditional financial markets continue to be volatile places to invest – where people can lose a fortune overnight.

“Investing in forestry and timber, however, is much less risky,” added Mr Collins, who went on to say, “If your timber stocks come to maturity at a time when the market is less than strong, you can just hold on a little longer before harvesting and watch your asset continue to grow in the meantime.”

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394

Commodities could be Big earner for Alternative investors, claims AAA

Commodity investors are expected to reap the benefits of increasing prices this year, according to recent forecasts by Barclays Capital.

Boston, MA, April 11, 2012 - Commodity investors are expected to reap the benefits of increasing prices this year, according to recent forecasts by Barclays Capital. Alternative Asset Analysis (AAA) would like to add timber to the list of commodities being recommended by experts.

Copper is one commodity that is forecast to see prices rise this year. According to the San Francisco Chronicle, which said that prices stood at about $1 a pound in 2004, rising steadily to $4 per pound in 2006. The price then plunged during the global economic collapse, rising to a high of $4.50 last year. Current prices stand at $3.90 and analysts expect it to rise in line with the further industrialisation of emerging economic such as India and China, which both have huge demand for Copper.

Gold is another favorite among the analysts, many of whom were found to be continuing their bullish trend about the precious metal when interviewed by Barclays Capital on the subject. Prices have risen hugely over recent years, hitting an all-time high of $1,917 in August last year.

However, it did lose some ground over the following months, finishing the year at a value of $1,600. Current prices are around $1,700 and demand is still high from the world’s central banks, suggesting that prices will continue to grow.

Alternative Asset Analysis (AAA) is keen to ensure that timber is added to the list of promising commodities for 2012 investments. Its analysis partner, Anthony Johnson, said, “The demand for sustainably produced timber is rising exponentially as a result of the economic growth in India, China and Brazil, which are all desperate to get their hands on raw materials.”

AAA claims that investing in forestry plantations run by investment firms like Greenwood Management, in countries like Brazil and Costa Rica, can offer an easy and relatively low-entry level introduction to ethically sound commodities investment.

Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-939-9596