world news - 03.07.2007
Australian Timber Investment — great returns on fixed term timber investments
The fundamental
aspect of the strength and reliability of hardwood timber for flooring
is that it has to be both air and kiln dried – generally, the slower
the drying time, the better the product. Timber appreciates
substantially in value throughout the drying period and as a result,
investment opportunities such as the Australian Timber Investment have
emerged, where investors have the opportunity to buy green timber, own
it for a period, and sell it dried back to the Company at a substantial
profit. Hinterland Timber Processing, the manufacturing arm of the
, has participated in this form of investment to the marketplace for
over four years and its success suggests that we will be seeing much
more of it in the future. Buying
and selling timber through its drying period is popular as it is
secured by title, has great returns and can be suitable for
Professional, Company and Private Investors as well as some for some
self -managed Superannuation Funds. Hinterland director and experienced advisor in the insolvency industry, John Brickwood says “It
is true that the buying and selling of timber at a guaranteed return
per annum, where the purchaser holds title of the commodity, is a
little different from the purchase of shares or financial products
offered through stock brokers and that it is a relatively uncommon
approach to the usual fixed term investments in Australia. The
Australian Timber Investment holds up well against many traditional
asset classes, including term deposits, stocks, bonds and real estate
and because of its unique nature, performs differently from securities
or other investments. The Australian Timber Investment also offers
an excellent opportunity for diversification when added to a broad
portfolio of investments — and as a renewable resource, represents an
array of advantages among alternative investments. Through
the many businesses that I have consulted to or been involved with, I
have found very few like timber, where the value of the stock increases
while sitting on the shelf. During the drying period the timber gets
harder and stronger and increases in value by approximately 40%. The
new forestry management policies encourage renewable resources
(plantation forests) and have granted 20 year supply agreements with
timber companies like Hinterland, who have been prepared to invest in
the value-adding of timber through the drying, kiln drying and moulding
processes to attain the best return for this precious resource. ”
The
Australian timber industry over the years has had many great success
stories. Millions upon millions of dollars are invested every year in
some of Australia’s greatest companies and the hardwood flooring
industry is no exception.
See also:
- — Innovativ Vision is expanding its sales and service organizations in Europe
- — New native tree species discovered in Mexico
- — Mill acts for future
- — Congo to Cancel Logging Deals to Protect Forests
- — Rainforest furniture
