There
is plenty of timber investing potential in Ecuador teak timber investing . Here
is information about an investment in teak that two bankers I know have started
there. If the numbers are only half accurate, this has a return that is almost
unimaginable.
Ecuador Teak Timber
Investing Note
Here is
what they wrote:
Ecuador Teak Timber
Investing
We have
finally found an affordable Ecuador teak timber investing opportunity in Ecuador
. The simple fundamentals have always appealed. Teak is in growing demand. There
is diminishing supply, plus a drastic need to stop logging rain forests where
old teaks stand. The answer is teak plantations and Ecuador makes a great place
to plant with 365 days a year of direct equatorial sunlight, lots of rain and
close to the U.S. !
Ecuador Teak Timber
Investing Potential
The potential
is around 20% per annum on a compounded basis for twenty years. That is a lot,
about 40 times investment or about $400,000 return on a $10,000 investment! A
tax attraction is that the first income does not come in until 2009 when the first
thinning begins and though initial capital is expected to be returned within ten
years, the big profits are in years 18-through 20 in the first major logging.
The project
requires $2,122,000 to cover planting and costs in the first eight years, but
is then projected to return $1,364,272 for the next six years or about a 400%
return on the investment. In year 20 the return is $75,802,154 or about an additional
40 times return!
Ecuador Teak Timber
Investing is Long Term
This is
a long term speculation but suits even baby boomers who want to retire eight years
from now. An investment today is tax free until 2009 when at retirement age, it
provides about a 50% per annum for eight years. The balance can be set aside for
old age or passed onto heirs. Younger investors reap the entire investment. Those
with young children or grandchildren may use it to fund their college expenses.
Ecuador Teak Timber
Investing Managers
The management
company (Manhattan Group, Inc.) has two other plantations (Tall Trees I and II)
under their belt. Though teak trees often take 60 to 80 years to reach maturity,
in the area of Ecuador chosen they reach an attractive selling size in 18 to 20
years. A 60 to 80 year old tree has more valuable heartwood but economics do not
justify waiting 40 to 60 years to obtain about 50% additional girth.
The Ecuador
Teak Timber Investing company has learned to plant a density of 2,500 trees per
hectare (2.2 acres) which increases thinning revenues and curtails maintenance
costs (less weeding). There are two final benefit. New trees sprout from the stumps
and provide another cutting in an additional 10 to 15 years later. This and land
values in 20 years have not been factored into the estimated returns.
For
details contact Paul Palacios at ppalacios@eolnet.net
Learn more about timber investing Financial-planning.com and Thebestofecuador.com
Gary
Scott inspects rain forest in Ecuador at
SuccessGuidelines.com.
Until next message, good global business and
investing!
Gary Scott
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