Prospective investors in forestry syndicates should be wary of new ventures promoted outside a securities law regime.
London, UK (PRWEB UK) 28 January 2013
iNVEZZ has recently published a new editorial exploring several alternatives for investing in forestry available to the private investor. The analysis comes as a response to the growing popularity of forestry and timber investments among private investors looking for ways to diversify their investment portfolio. Frank Quin of the investors’ portal therefore provides a valuable insight into several investment options, each with its own specific advantages and disadvantages.
The author of the editorial points out that the first decision which prospective investors need to make is whether to direct their investment toward a real estate investment in forestry or to the downstream production of forestry products.
Quin then looks into the first forestry investment option available to the private investor, namely the direct acquisition of a forest or area of forest. Despite the significant initial investment required with this particular route, Quin notes that direct timber investments can nevertheless be a viable option for the individual private investor.
The next investment alternative which Quin looks into in detail is by means of a forestry syndicate, with investors having the option to either buy into an existing syndicate or participate in the establishment of a new syndicate. He also outlines the dangers associated with this type of timber investment and advises investors how to choose a reputable venture. “Prospective investors in forestry syndicates should be wary of new ventures promoted outside a securities law regime,” cautions Mr Quin in his editorial.
The analysis then goes on to explore the option of acquiring shares in a forestry investment company. Quin notes that one of the challenges of this more liquid investment option is making the decision on the type of investment product. Mr Quin explains the specifics of investing in forestry funds, as well as in publicly traded real estate investment trusts (REITs) and timber-related exchange-traded funds (ETFs).
In conclusion, Quin notes that regardless of the investment vehicle, anyone considering forestry and timber investments should educate themselves on exactly what it is they are buying into and the rationale for the investment.
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