Investing in Melina Timber. Forestry Investments for UK investors.

When you choose to place your money in any type of timber investment, you know that the rewards you receive from the growth of such a fund are going to be solid and stable and free from the influences on general stock and shares, which has enabled timber investments to provide higher returns than a number of traditional market funds over so many years.

And at the same time that you watch your money grow, you also know that the investment you make directly contributes to cleaner air and a greener environment for the entire planet to enjoy.

When it comes to Melina timber, you are investing in one of the fastest growing species of forest-based hardwood tree in existence which has enjoyed average rises in sales value of 17.83% in the past six years. Melina Trees are best grown in Tropical areas, with Costa Rica a major centre for cultivating this species.

Widely used in both furniture production and construction, Melina can reach up to 95 feet tall during its 12 year life cycle and has out performed a significant proportion of standard stocks over the last century including some of the most fundamental of commodities such as oil, gas and gold.

As part of an established but expanding market, demand for hardwood timbers such as Melina is only set to increase as the population continues to expand, creating a fantastic opportunity to take advantage of strong and stable investments in a sustainable and environmentally friendly resource.

And your investment couldn't be more personal than if you were growing the trees yourself. When you start to invest in a Melina fund all contributions you make are used to directly purchase Melina trees which are then grown on your behalf to create a sustainable long term investment opportunity that is ideal for pensions, savings plans or even family trust funds which can make financial planning for the future so much easier and more secure.

The income generated from all trees sold is reinvested over the period of your plan so that by the time the final harvest starts to take place, you may have thousands of mature plants ready to provide you with a stable and substantial income which can be used to repay your mortgage, create wealth for your retirement or even to support younger generations as they start off in the world.

With a twelve year growth cycle before the Melina tree reaches maturity, there is no short term win with this type of investment but as the trees are thinned every four years to make room for the stronger specimens to flourish, you may find your first payments are available a lot sooner than you may have initially thought.

And as your fund and your trees reach maturity, a Melina investment can enable you to enjoy regular and reliable income generated from an investment that offers stable and steady growth for you and you family while you are safe in the knowledge that you have invested in a product that is completely sustainable and renewable; this means that a method of plantation management is used that ensures profitability for investors, while preserving the environment.

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How Long-Term Investments Can Benefit You

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In uncertain times, with markets usually volatile, it is tempting to make long-term investments and hope to ride out any economic storms.

There are advantages and disadvantages to all types of investment terms so what are the specific benefits of Long-Term investments.

The most obvious benefit of long-term investing is compounding. This is the effect of dividends or interest being reinvested to achieve sustained Capital Growth.

If investing on a regular basis, this equates to cost averaging. This means that you may purchase shares or units monthly, for example, the cost of the units will differ short-term but as long as the overall investment increases long-term then any troughs or peaks are smoothed.

What about a lump sum long-term investment?

In this instance you are hoping that the investment increases over the long run to achieve capital growth or any income derived will outweigh capital depreciation. However, what if the investment actually grew over the long term, GUARANTEED.

If you think about it how many investments can you think of that physically grow and offers huge demand and markets.

For a long-term and stable investment, you couldn’t do much better than an investment in Timber. While many investments have been very difficult to predict returns, timber remains a solid investment opportunity for the savvy investor. The return on investment figures for the last forty years shows timber comes out as a top performer when measured against many other asset classes.

So how does a forestry investment work?

Usually, an investor will commit a lump sum. This will purchase saplings, fund the land lease, pay commissions and forester/management fees. The saplings are planted and they start to grow. Initially, the saplings are worth very little but as time passes the young trees start to gain in value due to growth. Weaker trees will be harvested and sold to allow the stronger trees to become more established. Usually, this first harvest will happen within the first five years. The income the harvested trees return will be passed to the investor as an income payment. The remaining trees continue to grow and all the time they increase in value. Further harvests will take place until the investor is left with high value, strong mature trees.

Please allow me to take you through a scenario. For example, an investor initially purchased 600 saplings. After year 4, 300 trees are harvested (assuming a return of £5000 in income). After year 8 a further 105 trees are harvested (assuming a return of £15,000 in income). After year 10 a further 68 trees are harvested (assuming a return of £20,000 in income). To this point it is assumed £40,000 has been returned in income.

For argument sake, lets me make the calculated assumption that a mature Melina tree (Gmelina Arborea) is currently worth £250 each and over a 12 year cycle the price increased by 5% per annum compounded, a mature Melina tree would be worth £453 approximately.

Therefore, 127 trees would remain after 12 years and harvested. Assumed returns would be 127 X £453 = £57,531. On this basis the overall return would be £97,531 for an initial investment of… £18,000.

Now what if I was to inform you Gmelina Trees in Costa Rica have risen in value 2005-11 on average 17.83% per annum.

As a long-term investment option, various bodies predict strong growth for the timber industry and for the foreseeable future. In the UK alone we use 50% more natural resources per person than what nature can replenish. When you weigh-up the long-term nature of timber an investment today is an interesting option to help secure your financial future.

Alternatively, if you are looking for UK Pension investment or a home for an existing pension, forestry may just provide the returns you need to 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.

Always seek advice from a qualified professional before committing to an investment.

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Investing in Two Successful Tropical Tree Species.

Two Successful Tropical Tree Species.

The forestry sector in Costa Rica has been influenced for many years by two commercially viable and vital tree species, Teak and Melina. Offered to both national and international investors, both species are highly sought after and have become a favourite as species of choice within sustainable tree farms.

Teak and Melina originated in Asia but over the last 30 years have been planted in many regions of Costa Rica. This is mainly due to the trees adaptability to the climate and environment. Therefore, as non-native trees, they are the two most widely established tropical tree species in the Costa Rican forestry sector.

Teak started to be planted in Costa Rica during the 1920′s. Teak was strongly marketed for being a sought after and important tropical hardwood. There is still a massive demand for tropical hardwood especially from India, where teak is known as the hardwood of choice.

Teak as a tropical hardwood, is one of the most used woods worldwide. Teak is in demand, in considerable amounts, by the the worlds markets with stable and generally increasing prices. This non-native tree has been intensively grown in forestry plantations due to its hardy nature and natural resistance to flood and pest.

Larger teak tree farms are generally in the hands of large international organisations while smaller plantations up to 40-60 hectares are controlled by national producers and professional project managers. The timber derived from tree plantations is mostly exported internationally, in form of raw-logs or as a plained and processed product. The main consumer countries are the population rich India, Indonesia and China.

Both countries are the two main importers of tropical wood while Europe and America are also big markets.

Importers of teak have strict rules in terms of certification (e.g. certified by the FSC)

Much later, Melina was starting to be introduced and planted with the aim to help pulp paper production. Afterwards, the importance of Melina has climbed considerably in the territory of Costa Rica. This is due to its short harvesting cycle which is unusually short for a hardwood. After 12 years a healthy Melina tree stands just short of 100 feet tall.

Melina is the most consumed type of tropical tree in Costa Rica.
Currently, both species benefit from sustainable demand.

Here at silvinvest we highlight several superb Forestry Investments. Register to gain access to the Sales Brochures and interact with our Potential Returns Calculator.www.silvinvest.co.uk/articles

Dear Prospective Investor

Dear Prospective Investor

Similar to many, you know that you need to be investing for your future and the future of your loved ones. With so many different investment options available all over the world, it can be hard to choose an investment product that is right for you.

Also, with all of the current upheaval in the markets and economies in various countries globally, picking an investment or market where you can feel assured of a future return can be a scary and difficult prospect. To compound the problem further, rates offered on savings accounts is less than inflation.

With all of these obstacles to safe investment, personal ideals such as environmental responsibility may have taken a “back-seat” when choosing between investment options, as most of the “big names” in Fund Management normally overlook the “eco-friendliness” of a particular market when creating their investment products.

It can be difficult to know if your investment with some of these big name investment firms is helping or hurting your investment plans.

However there are options to picking a sound investment that you can rest assured is also beneficial to the environment;

It’s easy to learn.

An asset class that is the third largest traded commodity world-wide.

An asset class that has actually risen in 3 of the last 4 economic downturns.

Has grown over 25% in recent years.

Sustainable and fair to the environment for current and future generations.

So What Is It? – Timber!

When considering investment options, many do not realize that there are eco-friendly, sustainable options for investing in timber that can actually help to improve the environment!

Silvinvest highlights several investment opportunities that are not only “Green” but offer superb potential returns. We explain how to invest using Cash or an existing UK Personal Pension. We also offer ideas and ways to provide investment returns to support your heirs’ long term financial future.

All of the marketed Forestry Plantations covered by Silvinvest are sustainable; this means that a method of plantation management is used that ensures profitability for investors, while preserving the environment. The importance of investing in sustainable timber cannot be underestimated. Legislation is being enacted by various governing bodies to stop the illegal harvest and logging that are devastating so many of the world’s old growth forests.

By investing in Timber, you are doing your little bit to help preserve the one resource that is responsible for the following;

1.6 billion people worldwide who depend directly on forests.

The majority of the world’s oxygen.

70% of the world’s cancer fighting drugs.

Up to 30% of land surface.

Ecosystems that are totally dependent on the world’s forests for survival.

The forests that you the investor help to create and the forests you help protect will take in vast quantities of carbon dioxide through the process of sequestration. This in turn will be converted into clean, breathable air, helping to reduce the CO2 within our atmosphere.

At Silvinvest, we are marketing certain investment plantations that can provide:

Transparency

Sustainability

Legitimacy

Potential

Rewards

Silvinvest also provides a helpful service where you can view brochures from responsible timber plantations. Access to the potential returns calculator so that any investor can quickly “crunch the numbers” associated with this investment class and easily see the potential value of investing in timber.

For example, estimates indicate that an investment of £18,000 in Costa Rican Melina Trees can be worth £104,189 at the end of a 12 year investment cycle.

Timber is a renewable resource that has been successfully traded for hundreds of years by many wise investors who have discovered the little-known fact that timber investments have generally outperformed stocks, bonds, and commodities over the long term.

This investment has remained remarkable immune to disruptions in the markets, or even political turmoil or terrorist attacks. The phenomenal growth of this industry when combined with various tax advantages, if held within a pension, that come from investing in commercial timber make this investment one that you cannot afford to at least educate yourself about before you make any decisions.

Since it is free to sign up for the newsletter and register to view brochures, downloads, investment calculators and more. Doesn’t it make sense to take a few moments of your time and learn more about the product?

Make a Change and Take Action Today.www.silvinvest.co.uk/articles

Tree Farms Are Becoming a Popular Investment.

Tree Farms Are Becoming a Popular Investment.

An area that is planted with trees for the purpose of producing timber is known as a tree farm. Tree farms are usually owned on a private basis and can refer not only to forests but to plantations and tree nurseries too. Both plantations and tree nurseries refer to places where trees are grown, for sale to commercial endeavours or retail markets.

Tree farms start with the planting of saplings, which are leaves that are either harvested or have been naturally dropped from trees. The investors then wait for these saplings to grow into trees. When the trees mature, they are harvested for wood and also for more saplings, which are then used to replace the trees that have been cut down, to grow a new generation of trees.

This process of regeneration can be repeated indefinitely so that a constant supply of trees is produced without the need for adding more land to the tree farm. This, in turn, serves to protect the environment as the area surrounding a tree farm can be conserved and maintained for its original purposes.

Those who invest in tree farms have the choice of the size and type of trees they plant. Some investors prefer to plant larger trees as these trees yield more timber per sapling while most investors in tree farms prefer planting smaller trees as the amount of wood or trunk as compared to the amount of leaves is less, and all the wood can more easily be harvested from the ground.

There are many different types of trees that can be planted in tree farms and the type of tree that an investor plants depends on the needs of the investor and the type of return that is desired.

One of the more popular trees used in tree farms is the melina tree (Gmelina Arborea). Melina has a high density and is used extensively for building materials and furniture. The wood has a off white appearence and this creamy colour enhances its demand for the packaging industry. The Melina is planted in Costa Rica, a perfectly suited environment for the species. It needs to be planted 10 degrees either side of the equator for it to flourish. Melina is a quick growing species and can reach 100 feet tall within 12 years and this is another reason for its popularity. In more temperate conditions a tree (oak for example) would require a much longer growing cycle before it would be suitable for harvest.

Melina is the wood of choice for pallets used in transportation. With consistent and rising demand, and with a ready-made market for this wood, it is easy to see why the Melina tree is a popular investment.

Another type of tree that can be planted in tree farms is the Teak tree Tectona Grandis. Teak is a tropical tree renowned for its grain quality that produces durable hardwood used extensively in furniture; house building, and yachts. Growing demand for teak wood, coupled with limited international supply, suggests that increases in teak prices should continue steadily. New Teak Forestry Plantations generally have a growing cycle between 20-25 years as the plantation is fully managed and use new practices to help with biological growth.

When investing in tree farms, an investor needs to carefully investigate and research the situation in order to determine which size and type of tree best suits their investing requirements.

Silvinvest highlights some fantastic investment opportunities that are not only Green but offer superb potential returns. We explain how to invest using Cash or an existing UK Personal Pension. We also offer ideas and ways to provide investment returns to support your child’s long term financial future.www.silvinvest.co.uk/articles