Long Term Investments in Timber

Long Term Investments in Timber

It can be tempting to look for long term investments in these times of economic crisis. Investors in volatile markets have seen their profits take a hit and when a potential investor sees this they will want to get as far away from that volatile market as possible.

For a long term and stable investment, you couldn’t do much better than an investment in teak. When other investments have been heading down hill, timber remains a solid investment opportunity for the smart investor. That said, just because timber is a safe investment, it doesn’t mean that it is one with low returns. If you look at the return on investment figures for the last forty years, timber comes out as a top performer.

If you are considering investing in teak then you should make sure that you do your research first. You should make yourself aware of the sort of returns that you can expect before you put any money down. Unfortunately this is not always as easy as it might seem as there are no properly defined international standards for measuring the price of teak.

One reason that timber is a great option for long term investment is that it can be cashed in early if the time is right. If you think that you might need to cash out of the investment early then teak is probably not your best bet. Fortunately there are plenty of other woods to invest in.

It is often the case that if the market conditions are right, the timber can be sold early. For example if the price of the timber has jumped up then the trees can be harvested and sold for an increased amount of money – often more than the trees would be worth at the end of the original investment period.

Timber should also be thought of as a long term investment option as various bodies are only predicting growth for the industry for the foreseeable future. The world continues to demand more timber each year and the demand always outstrips the supply, meaning that prices remain high. A study by the United Nations has estimated that by 2050 our demand for wood will have doubled from the level of demand that we see today. When you consider the length of timber investments, getting an interest in this type of forest today is a great option to secure your financial future.

Timber is such a long term investment that you are not going to be only securing your future, but also that of your children. By investing in this sort of long term venture you are going to have a solid investment that you can pass onto your children.

Alternatively, if you are younger and looking for investments that will be useful to you when you retire, investing in forestry will get you off to a great start in building your financial security for the later years in your life. Whatever way you look at it, investment in timber is a solid financial choice.