FRA
has welcomed a new article published by USA Today predicting a boom
in timber investment returns if the real estate industry returns to a
strong position.
Seattle,
United States, August 9, 2012 -- Forestry Research Associates
(FRA) has welcomed a new article published by USA Today predicting a
boom in timber investment returns if the real estate industry returns
to a strong position.
The
housing collapse in the US brought with it a fall in timber prices.
Now things are looking up again and, as a result, timber stocks are
looking rather attractive once more, according to USA Today’s John
Waggoner. Since timber futures prices’ lowest spot in early 2009,
they have increased by an impressive 93 per cent. Although this is
slightly less than the recovery in the Standard & Poor’s 500
index, the improvement in the real estate market indicates a good
reason to buy up timber REITs.
In
the past 12 months, new home starts have jumped by 23 per cent and
the fact that housing is now a lot more affordable than the last time
housing starts increased, suggests that the turnaround will last
longer and be more notable this time, claims FRA.
The
forestry investment advocacy group supports the USA Today article,
claiming that timber REITs are very attractive, but that there are
also other options for those who are interested in investing in
timber. “We promote investment in sustainably managed plantations,
such as those operated in Brazil by firms like Greenwood
Management,” stated FRA’s analysis partner,
Peter Collins.
These
plantations allow investors to directly invest in a piece of forestry
land for as little as $10,000, which is a lot less than is involved
when buying forestry independently. Then, firms like Greenwood manage
these plantations for the owners and start paying returns to
investors as soon as money starts coming in from any mature trees on
the entire plantation.
Mr
Collins claims that this option mean that investors enjoy the
diversification benefits of forestry investment, but also get to see
returns sooner than they would through other direct investment
routes.
About
Forestry Research Associates
Forestry
Research Associates is a research and advisory consultancy that
focuses on forestry management, sustainability issues and forestry
investment around the globe.
Media
Contact:
Peter
Collins
Forestry
Research Associates
620
Vineyard Lane
Bainbridge
Island, WA 98110
(206)
316 8394
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