Belize Hardwoods | FAQs
15867
page-template,page-template-full_width,page-template-full_width-php,page,page-id-15867,ajax_fade,page_not_loaded,,qode-theme-ver-16.7,qode-theme-bridge,wpb-js-composer js-comp-ver-5.5.2,vc_responsive
 

FAQs

“Timber has outperformed stocks, bonds and commodities over the long run…it increased 18.4% last year, versus a 5.5% rise for the S&P 500”.

George Nichols – Private Research Analyst

Can my trees be uniquely identified in the field?

 Yes. Your trees are individually marked using GPS and are assigned a unique tree identification number. The trees are planted in sections (each section is approximately 1 acre) and each section boundary is also marked using GPS as well.

How do you choose where to plant your trees?

Before acquiring any new land, extensive site research is conducted by our staff. We select only the highest quality sites to begin our planting.

Who owns the trees?

You are the tree owner of each tree you purchase.

How can I prove ownership of the trees I purchase?

Once purchased you will receive a timber sale contract listing you as the rightful owner of the trees identified in the contract. This details the exact amount of trees you own as well as the exact location, age and species of the trees.

Do I own the land?

No, your tree purchase comes with a 27 year land lease. This is approximately 2-7 years longer than the estimated final harvest. This added time is an extra level of security on your behalf and allows for harvesting at only peak market times.

Why is a lease better then purchasing?

Purchasing the land your trees grow on is a costly and time consuming endeavor. If land title is transferred in Belize a GST of 12.5% is due and leasing avoids this cost. Some tree owners prefer to sell their trees before the final harvest, the lease is easy to transfer and allows this liquidity. Our lease option is one of the main reasons you can take advantage of this opportunity on a small scale.

When are the trees planted?

We have a policy of continually planting stock during the appropriate planting seasons. If your trees are not already planted (pre purchase) they will be planted at the onset of the next rainy season, usually September in Belize.

Who maintains the trees until harvested?

Belize Hardwoods maintains your trees until ready for harvesting. Our expert staff will maintain your trees throughout their growth cycle.

Are you cutting down any existing forest or natural growth to plant the trees?

Yes, we select only first growth virgin jungle land to plant your trees. This is the best possible land available and is chosen for that reason. We however us a very selective method of land clearing and use only approximately 20% of the land for planting. The remaining 80% is left in a natural state and allows the local flora and fauna to flourish. We believe a strong financial gain can be made without disturbing the ebb and flow of nature.

Is buying trees in this manner good for the environment?

Yes, Investing in hardwood trees is not only a safe and extremely profitable it’s also a responsible investment. Of course it’s important to see returns on your investing but doing so in an environmentally safe way is even better. Since old growth jungle actually releases more greenhouse gases (GHG) then it captures this truly is a green opportunity. Once under brushed and strategically cleared, the land is planted with hardwoods that capture more GHG’s then released. Since these valuable hardwoods are not burned these GHG’s are stored indefinitely making it a sustainable and eco-friendly investment. We strongly believe that high value investment returns can be accomplished by working with nature making this a truly green way to invest.

Will too many plantations reduce the value of the timber?

No. Plantations today produce less than 1% of the tropical hardwoods consumed in the world. Every year 50 million acres of rainforest are felled. It is unlikely that enough plantations can ever be established to keep timber prices from spiraling out of control.

What about fire?

Tropical rain forests are damp, humid places where fire risks are low. Moisture is maintained in the soil and in the trees. It is very difficult to burn a standing forest but our staff are ever vigilant, trained and equipped for such a risk. However, we plan our plantations with appropriate fire breaks and have staff on site 24/7 that are trained to deal with a fires.

How about flooding or drought?

Flooding is not considered a risk due to the topography and historical rainfalls. Water is a vital resource in managed forestry and it is the first consideration when constructing a new plantation. We build dams, reservoirs, and pumping equipment so that we can retain or release sufficient water at will.

Are hurricanes a problem?

No. This area is positioned in a location that rarely sees a hurricane or damaging tropical storm known to devastate other areas in Central America. Another strong reason we have selected this growing site.

Do you guarantee my trees will survive?

Yes.  We guarantee all our trees for the first 3 years after planting. If anything happens to them within that period we will replant for you at NO cost. With this guarantee you cannot lose your initial investment if your trees die or become diseased.

Can I see my trees from the Internet?

Yes. You can see your trees via Google Earth (as it updates) on our website and through our newsletters. This will give you a view of exactly where their trees are planted and how well they are doing.

Can we visit the plantations?

As an owner of hardwoods on our plantation we invite you to come and see your trees first hand. Each owner is allotted time to stay in one of our luxury guest homes located a few minutes’ drive from the plantation. You can visit each year and see the tremendous growth of your trees and also have a chance to unwind and relax in paradise. We believe you will not only love being an owner of hardwoods investments, but also love the country of Belize and it’s unspoiled beauty.

What would be the case if some of my trees suddenly died before a full 20 years’ worth of growth?

 If your trees were to suddenly die, they would still have value as wood. You would not be out of any money, since the trees would be harvested and at the current market value. Your trees are also guaranteed for the first three years.

How often are the plantations patrolled for poaching, vandalism, pest management, etc?

Theft almost never happens as each farm has a fulltime live in management team that is within earshot of any problems. Farm managers and their crews are on the farms every day. Because of the rate the trees grow – and everything else (like weeds and bushes) – it’s necessary to inspect the trees frequently to grow the best possible wood. They watch for diseases and if any develops (which is rare), they immediately deal with it.

Are the years in which thinning harvests and final harvest take place fixed?

The year of thinning/final harvest is dependent on the growth rate of the trees and tree species.  The typical pattern is a thinning at 7 years and harvests at 14 and 20 years with teak. Mahogany is harvested at 12 and 25 years. This however varies slightly depending on what or team recommends.

Is the number of trees being thinned a fixed number?

The exact number will be determined at the time by our staff. We will inspect your trees regularly to monitor their growth and notify you of our recommendations.

Do I need to follow your recommendations when it comes to any decisions regarding my trees?

No, the trees are yours and you have the final say in any of the process. We will make a written recommendation regarding your trees and you have the option of deciding what course of action you would like to take. We however have the experience and expertise and hope you follow our recommendations for the best possible financial gains.

Do I have to pay tax?

There is no income tax in the country of Belize however each investor is responsible for their own tax arrangements and we advise you to check with an accountant or a qualified tax advisor.

Can I redeem my investment at any time?

Understandably a 20 or 25 year investment is a long term plan. You have the right to sell, harvest or transfer your trees at any time.  Our system is set up to allow the tree owner to liquidate their trees at any time. This gives you the ability of holding your trees until they reach full maturity value or cashing out early and still reaping a solid return.

When would I get a return on my investment?

Holding your trees until they reach full maturity will yield the highest investment returns however your trees become more valuable each year due to the biological growth of the trees as well as the rising price of wood.

Can you be sure that the value of wood will go up?

There are no guarantees, but hardwoods like teak and mahogany a have gone up every year for the past 20 years and timber is a very safe commodity. Demand is rising so we agree with many financial experts that timber is an excellent investment. Remember that your trees value increases not only by the rising wood prices but also through the biological growth of the trees themselves.

What reports will I get?

You will receive a semiannual report listing the growth details and performance of your trees. When applicable it will list the following: purchase details / date invested / amount invested / how many trees / estimate returns / dates on returns / growing records / thinning dates.  Since your trees are a financial investment we provide you with all the appropriate data concerning to and supporting your investment.

Request Information