Whatever vehicle is chosen, anyone considering investing in forestry needs to educate themselves on exactly what it is they’re buying into.
London, UK (PRWEB UK) 28 January 2013
Investors’ portal iNVEZZ recently released an analysis entitled “Forestry Investments – The Private Investor's Options,” covering the routes available to a private investor considering investing in forestry. The author, Frank Quin, starts his commentary with a note highlighting the main benefits of this type of alternative investment – an outline he had already made in separate releases recently-published on iNVEZZ’s website. After reminding readers of the appeal of investing in forestry, Quin takes a detailed look at the particular options available to private investors considering exposure to this alternative asset class.
The author of the recently-published analysis distinguishes two initial directions on the path to deciding on forestry investment. He writes: “A basic decision the investor needs to make is whether the investment is directed towards a real estate investment in forestry – timberland and timber - or to the downstream production of forestry products.” While these two enterprises can be “vertically integrated,” Quin first reviews them separately. Beginning with direct forest acquisition, the author of the new iNVEZZ analysis narrows readers’ attention to the main factor which determines the range of income generated from this venture – the scale of the investment. Quin remarks that if an investor is considering investing in forestry and targeting significant earnings rather than just stable extra income, they should purchase a larger quantity of trees. He adds that a small-scale investment in this sector should only be viewed “as an investment in a lifestyle or amenity choice, albeit with the possibility of a capital gain on a future sale”.
After further describing the direct acquisition option, Quin moves on to syndicated forestry investments, or what he calls “the more realistic option” for investors seeking a direct forestry investment. The recently-published iNVEZZ editorial also includes information on the option of investing in shares of publically-traded forestry companies. According to the author, this may be an appealing opportunity for those who want an exposure to the forestry sector, but seek “appreciable liquidity in the investment.”
Quin concludes his recently-published analysis with a note of caution: “Whatever vehicle is chosen, anyone considering investing in forestry needs to educate themselves on exactly what it is they’re buying into and of course the rationale for the investment, given alternative destinations for the investment funds.”
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