Escape Artist
  • Features
    • Interviews
    • News
    • Field Notes
    • Trending
  • Your Escape Plan
    • Finance
    • Real Estate
    • Second Citizenship
    • Events
    • Shop
  • Destinations
    • Europe
      • France
      • Germany
      • Italy
      • Portugal
      • Scandinavia
      • Spain
      • United Kingdom
      • Rest of Europe
    • Central America
      • Belize
      • Costa Rica
      • El Salvador
      • Guatemala
      • Honduras
      • Nicaragua
      • Panama
    • Others
      • Africa
      • Asia
      • Australia
      • North America
      • South America
  • Travel Tips
    • Know Before You Go
    • Packing List
    • Food + Culture
    • Health + Wellness
  • Subscribe
Escape Artist
  • Features
    • Interviews
    • News
    • Field Notes
    • Trending
  • Your Escape Plan
    • Finance
    • Real Estate
    • Second Citizenship
    • Events
    • Shop
  • Destinations
    • Europe
      • France
      • Germany
      • Italy
      • Portugal
      • Scandinavia
      • Spain
      • United Kingdom
      • Rest of Europe
    • Central America
      • Belize
      • Costa Rica
      • El Salvador
      • Guatemala
      • Honduras
      • Nicaragua
      • Panama
    • Others
      • Africa
      • Asia
      • Australia
      • North America
      • South America
  • Travel Tips
    • Know Before You Go
    • Packing List
    • Food + Culture
    • Health + Wellness
  • Subscribe
👤

THE NUMBER ONE SOURCE FOR EXPATS, DIGITAL NOMADS, AND DREAMERS.

This field is for validation purposes and should be left unchanged.
  • Your Escape Plan

Teak Hardwood and Other Types of Timber Investments

  • BY Brooke Cobb
  • April 4, 2018
Total
0
Shares
0
0
0

Timber itself can be a lucrative investment, simply because it continues to grow in value regardless of what the rest of the market is doing. While stock values rise and fall, timber continues to grow and to hold its value. An investment in reforestation that allows for the planting of more trees is always useful. It helps the environment and also fulfills the common need for building materials. No matter what the market is doing, timber will always be a necessary material for the growth of our economies.

The Question is, What is the Best Way to Invest in Timber?

Even if you know that timber itself is a smart investment, that doesn’t mean you know which type would best suit your needs. Teak is exceptionally popular in Latin America for plenty of reasons. It’s a resilient hardwood that repels insects and does a great job standing up to fire and the elements. The demand is high since its numbers in southeast Asia are dwindling, and all of these factors combine to make it quite a valuable asset. So, why choose to invest in a plot of land for teak hardwood rather than in other options?

Types of Timber Investments

There are different ways to invest in timber, and not all of those ways involve choosing the type of wood involved. For example, you can purchase shares of timber through publicly traded stock. These can involve timber REITs (Real Estate Investment Trusts) and timber ETFs (Exchange Traded Funds). With the timber REIT, one company’s stock is being purchased for the investment, while timber ETFs are more similar to mutual funds and are made up of stocks from different companies. If you choose either of these investment methods, you may or may not be working with the most valuable woods, which turn around the highest amount of profit.

One reason why timber is a powerful asset is because, when you purchase timberland rather than another company’s stock, you actually have a piece of land on which the trees are growing. You can take a stroll through those woods; you can go camping or horseback riding in those woods. The land is yours, and that’s just another addition to all of the appeal. Of course, you can choose to invest in the stocks and keep track of a piece of paper, knowing that timber is generally a low-risk investment, so you’re in a comfortable spot…but you could be getting so much more.

When you choose to purchase an actual plot of land, you can choose your wood. There are, of course, other valuable hardwoods in which you can invest. Take, for instance, Shorea (a type of wood very similar to teak), Iroko (also known as African teak), and/or Ipe (more commonly referred to as Brazilian walnut). Nothing, however, quite compares to the value of teak. Your level of liquidity is lower when making this sort of investment as opposed to investing in timber stocks, but you also have more control. Even better, you can watch your investments grow right in front of your eyes, and you can choose to harvest when you are ready, knowing that the more mature the wood, the more valuable it is. When you’re ready to harvest, you can do so and then re-plant a whole new plot of trees. The decision to purchase a piece of timberland rather than a stock is popular for these reasons.

Managing Your Timberland Purchase

If you choose the route of purchasing your own land on which to manage your timber assets, keep in mind the importance of ensuring that land is adequately maintained. You’ll need a well-maintained forest if you want the best possible return on value. The best way to gain peace of mind in that particular field is to locate a competent consulting forester. Do that by contacting the Association of Consulting Foresters of America (ACF). Members of this association, and other related associations, are required to have knowledge in growing and maintaining forestry, and you can rest assured that they have the experience necessary to guide you in proper maintenance of your rather large asset.

Overview of Timber as an Investment

Over the many recessions the world has seen, including the Great Depression, one thing has remained steady and reliable – and that has been the need for and value of timber. In fact, during the Great Depression, when stocks fell by about 70 percent, timber investments soared by more than 200 percent. During the most recent recession of 2008, the S&P 500 fell more than 35 percent while timber grew 9.5 percent. It’s no secret that overall faith in the market is growing shaky, and that’s just another reason why timber investments are on the rise.

SD-IRABanner

If you’re interested in buying a home abroad and want to weigh up your options, visit ECI Developments, who specialize in creating exceptional residence and resort communities across the world.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Previous Article
  • Portugal

A Comprehensive Guide to Investing in Portugal

  • BY EA Editors
  • March 8, 2018
View Post
Next Article
  • Your Escape Plan

11 Freelance Jobs That are Perfect for Expat Retirees

  • BY EA Editors
  • May 4, 2018
View Post
You May Also Like
Buying a Property abroad
View Post
  • Your Escape Plan
Why More Investors Are Buying Homes Offshore
  • BY EA Editorial Staff
  • October 8, 2025
Best Places to Live in Spain: A City-by-City Guide for 2025
View Post
  • Spain
Best Places to Live in Spain: A City-by-City Guide for 2025
  • BY EA Editorial Staff
  • October 8, 2025
Hungarian Citizenship by Descent Journey from Amercia
View Post
  • Second Citizenship
Our Journey from America to Hungarian Citizenship
  • BY Ethan Cohen & Learn Hungarian Anywhere
  • October 1, 2025
The Tale of the Tael - A timeless store of value across centuries
View Post
  • Finance
The Tale of the Tael’s: A Hard Lesson about Hard Money
  • BY Michael Checkan
  • September 24, 2025
Craggy cliffs and quiet harbors frame life in the Isle of Man
View Post
  • Your Escape Plan
Life and Opportunity on the Isle of Man
  • BY Aneesa Marufu
  • September 19, 2025
Central America’s strategic position is reshaping the global offshore banking map
View Post
  • Plan B
The Future of Global Finance Runs Through Central America
  • BY Luigi Wewege
  • September 17, 2025
Tokyo's infamous cherry blossoms.
View Post
  • Japan
How I Built a Life in Tokyo in 3 Months
  • BY Annie Nagel
  • September 8, 2025
Global Diversification Tips from Experts
View Post
  • Plan B
Staying in One Country Could Be Your Biggest Financial Risk
  • BY Isha Sesay
  • September 3, 2025
Trending Posts
  • 1
    • Mexico
    Top 10 Things to Know if You’re Moving to Mexico
    • September 26, 2025
  • Hungarian Citizenship by Descent Journey from Amercia 2
    • Second Citizenship
    Our Journey from America to Hungarian Citizenship
    • October 1, 2025
  • Abkhazia jewel of Soviet summer escapes 3
    • Field Notes
    Secrets of the Soviet Riviera
    • October 3, 2025
  • Summer in Lapland: Lapland’s wild landscapes glow under the endless Arctic sun 4
    • Field Notes
    Before the Snow Falls in Lapland
    • September 29, 2025
  • Onu building with flags under a blue sky in New York 5
    • News
    Latest News: Fault Lines, Flotillas & Frontiers
    • September 25, 2025
Subscribe
Know Before You Go
  • Best Places to Live in Spain: A City-by-City Guide for 2025 1
    • Spain
    Best Places to Live in Spain: A City-by-City Guide for 2025
    • October 8, 2025
  • Expat Child Syndrome 2
    • Wellness
    The Untold Story of Expat Kids
    • October 6, 2025
  • Abkhazia jewel of Soviet summer escapes 3
    • Field Notes
    Secrets of the Soviet Riviera
    • October 3, 2025
  • Hungarian Citizenship by Descent Journey from Amercia 4
    • Second Citizenship
    Our Journey from America to Hungarian Citizenship
    • October 1, 2025
  • Summer in Lapland: Lapland’s wild landscapes glow under the endless Arctic sun 5
    • Field Notes
    Before the Snow Falls in Lapland
    • September 29, 2025
Learn More
  • About us
  • Contact
  • Advertise
  • Subscribe
Why Subscribe

The newly imagined Escape Artist brings you fresh content with a global focus, and sharp, up-to-the-minute coverage of the joys, challenges, and opportunities of life abroad.

For a limited time, we’re offering a special discount on all subscription deals, so be sure to lock-in these incredible savings and start receiving top-notch travel and expat content today!

Sign up for the EA Newsletter

Get important news delivered directly to your inbox and stay connected!

This field is for validation purposes and should be left unchanged.
Escape Artist
  • Terms & Conditions
  • Privacy Policy
  • Cookies Policy
  • Disclaimer

Input your search keywords and press Enter.

Newsletter Subscription
Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/