Is an Investment in Teak Right for You?
After reading a bit about teak, you may find yourself curious about teak investments. They certainly seem intriguing, but you’re not sure if they are exactly the right type of investment for you. You’ve got a general idea about the investment style you have and are comfortable with, and you know what your investment goals are. But you’re wondering if an investment in teak aligns with these. These are certainly important questions to ask. For those who are interested in teak, but still not quite sure whether an investment in teak is right for them, here a few things to consider for those people who think they might be interested in teak, but who aren’t quite sure:
Are you looking for a short term or long term investment?
Teak is in general a long term investment, however, the beauty of making a teak investment with Teak Hardwoods is that you can make an investment that will yield returns in the short run or the long run.
Teak takes 25 years from planting to harvest. This means that teak is an investment generally for the long run. While this may turn some investors away, this makes teak an excellent investment vehicle for some of the more long-term investment and savings goals in your life. Things like retirement or paying for a child’s college education. These are the sorts of investments and savings projects that take years and years to build up, so why not make an investment that is stable while you work towards these goals? Teak is definitely a great, long term investment, and one that will give you some of the best returns you can find as a reward for your patience.
However, there are still options for those looking for a more immediate return on their money. Our Panama plantation teak is already 17 years old. This means that an investment into our Panama plantation will yield a return in only 8 years’ time. This is a very rare opportunity. It is not common to be able to invest in teak that is so close to harvest.
Are you an opportunistic individual?
The teak market today is set up perfectly for forward-thinking, opportunistic individuals to take advantage of the current market situation, and make a good return doing so as well. The traditional suppliers of teak, 4 countries located in southeast Asia, have noticed their natural supplies of teak drying up, and as a result all of them have placed quotas or outright bans on the felling of old growth teak. This means that the world’s traditional suppliers of teak can no longer maintain their role as dominant teak suppliers. At the same time, the global demand for teak shows no signs of slowing, and in fact is growing. Major markets for teak, such as India, are going through massive population and economic booms, both of which are spurring impressive growth in the global demand for teak.
Basically, the global market for teak is opening up in a way that is hasn’t for hundreds of years. As traditional suppliers of teak run out of old growth teak to cut and sell, plantation teak is filling the void. Investing in a teak plantation will allow you to cement yourself in the supply chain of an industry that has traditionally been closed to almost everyone, save for a few rich politicians in southeast Asia. It is uncertain how long this opening up of the market will last. Eventually, as certain teak plantation companies establish themselves, the market may close up again to new investments. If you are an opportunistic individual, you will want to take advantage of this unique positioning of the global teak market, and invest in teak today.
Do you have a Plan B?
I’m not talking about dinner reservations or summer vacation plans. I’m talking about the most important Plan B that exists. I’m talking about a Plan B for your life. What would happen if some sort of political or economic catastrophe hit your home country? Would you have somewhere to go? An investment in teak can be coupled up with a corresponding residency program in the country of investment. This will provide you and your loved ones with somewhere to go if the need should ever arise. A foreign country which will welcome you with open arms whenever you desire or require it. This is the kind of protection that will offer you peace of mind like no other protection can. If you haven’t already set yourself up with a Plan B, you may want to consider doing so through an investment in teak.
Are you interested in creating generational wealth?
One of the greatest benefits of an investment in teak is not one that will directly affect you, but one that will directly affect your children. Investing in teak is an excellent way to create generational wealth, wealth that is passed down through the generations that allows your children to maintain the quality of life that you worked so hard to provide for them.
Generational wealth stewardship is a favorite investment strategy of the ultra-wealthy. It is because of generational wealth stewardship that wealthy individuals, big names like the Rockefellers and the Carnegies, were able to ensure that their families remained affluent, even after the deaths of the family heads who accrued that wealth.
Investing in teak is an excellent way to invest in wealth that can be passed down to future generations. Generational wealth stewardship can provide for a continued high quality of life for your descendants.