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Digital Be informed with the essential news and opinion. We do not invest in timber or forestry directly for Courtiers clients. Past performance is not a reliable indicator of future returns. The value of your investments and any income you take from it may fall as well as rise and is not guaranteed. You might get back less than you invest.
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The price of stocks, shares and funds, and the income from them, may fall as well as rise. Past performance is not necessarily a guide to future returns.
We do not endorse nor accept responsibility for the content of any website not operated by Courtiers which you may visit by following a link from this article. Contact link Contact us via email by following the link Contact Login link Click to login Login Mobile call link Call us Ask a question. Back to News 10 reasons to still stay away from timber investments 23 Mar Investment Market Commentary. In , I stated 10 reasons why you should be wary of investing in timber and forestry.
Nothing has changed. Timber investments are illiquid. Actual forests are hard to sell quickly if you need your money. Even with sustainable forestry investments which respect human rights and the environment, the planted trees need lots of time to grow.
On ecologically farmed land, they probably take even longer to grow than the fast-growing trees in monocultures, which are harvested earlier, to produce cheap pulp and biomass. This is to the advantage of the slowly growing trees — because trees become larger with every centimetre, they gain in volume and thus in value — but it cannot be ruled out that during long contract terms, much can happen: companies can fall victim to mismanagement or go bankrupt, the regions in which the forests grow can become politically unstable.
Natural events such as fire, earthquakes, droughts or floods also have a lot of time to occur over the years. Forestry investment are therefore right for investors in particular if they do not shy away from risks, have the necessary financial means and staying power until the trees generate returns.
An important indicator for a reliable provider is its presence on the market. The longer he has successfully reforested and managed forests and perhaps already paid out proceeds to investors, the more likely it is that he will continue to do so in the future. It is also important how transparently a forestry investment provider operates: does he publish consolidated annual reports, disclose calculations showing how timber yields are generated and is there an opportunity to visit the forest areas and speak to employees on site?
Based on these important indicators you can recognise solid and reliable business partners. Direct forestry investments in precious woods, on the other hand, can react better to market fluctuations by postponing the harvest.
The trees are left in the forest until the harvest is worth it — they become bigger, taller and more valuable every day. In addition, the fluctuations in precious wood prices are significantly lower than those of timber or wood used for pulp production. Besides, the yields generated from a direct forestry investment are generally tax-exempt while the price gains of forestry shares and forestry shares dividends are subject to the almost 30 per cent flat rate withholding tax including solidarity surcharge and church tax.
Direct forestry investments also offer advantages from an environmental point of view: the afforestation of new trees can only be initiated as an investor. Buying forestry shares, on the other hand, does not necessarily mean planting new trees.
ForestFinance has been proving for almost 25 years that ecological forest projects successfully generate yields. Read more on this topic here. Search for. Contact We are happy to help you! ForestFinance Service Centre Eifelstr. Please note: Our office is closed on Dec 24 and Customer area Deutsch English. ForestFinance: Sustainable forest investments Media library How to invest in forests.
How to invest in forests What is a forestry investment? Other forest products. Forestry investments at ForestFinance ForestFinance is one of the leading providers of direct forestry investments within Europe.
Request free information material now Back to media library. What are forestry shares? What are forestry funds? Can I buy forests? Benefits and risks of forestry investments 6.
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