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Before investing in forestry there are a number of things you should check to ensure the investment is as safe and successful as it can be.
There is only one company that we promote. Our choice is based on the above criteria and the availability of a secondary market. The underlying growth cycle of a Radiata pine forest is 28 to 30 years. If you want to exit earlier the availability of an active secondary market is very important. This forestry company has been in operation for over 30 years since 1972. The returns from a plantation harvested in 2002 is equivalent to a taxable rate of return of more than 16.2% compounded annually. When expressed as a tax paid real return (ie removing an average inflation of 7.5% and paying marginal tax at 33%) the rate is 4.2% compounded per annum, a very satisfactory return from what are really "ordinary" tree stocks on a net stocked area of 250 trees per hectare (today's plantings have 350+ trees per hectare). For more information and an investment statement and application, click here |
Disclosure Statement available on request and free of charge, phone 04 471 0662, or email alison@lyfords.co.nz |