Belize Hardwoods | Investment Model
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Investment Model

“Timber – a renewable resource with constant product demand – stands out as a remarkably stable investment.”

Bloomberg Wealth Manager

Your Investment Guarantee

Belize Hardwoods guarantees all of our trees for three years after planting. If anything happens to them within that time period we will replant them at NO COST to you. With this guarantee you cannot lose your initial investment if your trees die or become diseased.  Once fully rooted, these hearty species of trees are very resilient to insects, diseases and even fires. However, it does take three years until they are fully rooted.

Investment Model

The return on an investment (ROI) in wood depends on a combination of two factors:

#1 Value of the Trees

 

First is the increase in the value of the trees based on their size. Tree sizes increase at approximately 6 % per year due to the natural biological tree growth. The trees grow quickly and as a result, they become more valuable each year that they age. As a natural commodity, your trees grow every year, and therefore their value keeps increasing. Natural tree growth means that the volume of wood that each tree produces increases by up to 6 % each year.

#2 Rising Price of Wood

 

Second is the increase in the value and price of hardwoods. Wood prices have been rising steadily for years and that trend is expected to continue well into the future. Especially as the world’s population and resulting demand for wood continues to expand exponentially. Assuming  even a conservative increase in the price of wood combined with the biological growth in the wood itself combines to add an impressive return.

Grow Your Money

 

Highly prized for its beauty, strength and durability the demand for hardwoods will always be rising. Your investment grows in two ways. The value of the final product grows with demand and the actual trees grow at the same time. As you can see, at Belize Hardwoods, we truly do “Grow Your Money”.

Selling Trees Commands a Higher Price

Hardwoods like teak and mahogany are highly valued for several reasons. They are in very high demand and are becoming increasingly rare. The high demand, coupled with short supply, drives the values and prices higher every year. As the world’s population increases so does the demand for hardwoods and since most of the “old growth” timber has already been exhausted, the demand and value continues to rise. The value of the wood is also dependent on the state in which it is delivered.  A 20 year old “live standing” tree is still very valuable, however it ultimately needs to be harvested and shipped to a buyer.

Belize Hardwoods not only harvests the trees but also mills them on site producing a rough sawn block. A “live standing” tree clearly has value but a rough sawn block has a much higher value. Our expert loggers and mill operators have the knowledge and skill set to achieve the highest ultimate value from a tree. Although this seems like a simple way to increase the final value, other growers lack the experience and mills needed to perform these tasks. Our ability to produce top quality trees that are skillfully milled into highly prized pieces, enables us to achieve the highest ROI for our clients.

With over 1000 acres of hardwoods scheduled to be planted in the next few years, our supplies will be more than sufficient to capture the attention of market buyers. Most growers only have a few acres of hardwoods available, and most have been planted years apart, creating a limited supply to bring to market at harvest.  Although still valuable, they lose the power of volume, which commands the highest prices. The global hardwood buyers would prefer to make one large purchase verses hundreds of smaller ones. This is just another reason why our value predictions are well above that of the average hardwood grower.

Commodity Charts

Historic Wood Values

 

According to the United Nations FAO publication ‘Forest Products Prices’, the median export/import prices of teak rose at an average rate of 9.7% per year for 18 years from 1970 to 1988 (the last year of the report), and 13.2% per year for the last four years of the report. Teak prices have clearly been rising at a rate greater than the 9% used in our projections.

Recession Proof

 

Since trees only get more valuable with age they have a strong resistance to recession. Although hardwood prices rise annually, you are not forced to harvest at any particular time. Unlike other crops like cacao or coconuts that need to be harvested when ripe, you can harvest your trees based on the best particular time in the market creating an incredible advantage.

Green Investing

Investing in hardwood trees is not only safe but it’s also environmentally responsible.  While it’s important to maximize return of investment, doing so in way that helps the environment is even more rewarding. Due to the fact that hardwood trees are so highly prized, they are being illegally logged in many countries. Unfortunately, these illegal logging operations have little if any regard for the flora and fauna. Burning thousands of acres of habitat to harvest a few trees literally destroys the populations of many species. Investing in a hardwood plantation actually helps stop the global deforestation that has been a plague on our world’s wild habitats.

When we prepare our land for planting we do it in the most responsible ways possible. We prepare the land by hand whenever possible, limiting the use of heavy machinery and leaving wildlife corridors and migration trail areas undisturbed. Nesting boxes are built to help keep birds undisturbed and flourishing. Creeks and rivers are left primarily in tact as to not disrupt the ebb and flow that has been naturally forming the land for thousands of years. Believe it or not but old growth jungle (existing) actually releases more greenhouse gases (GHG) then it captures due to all of the underbrush.  Once strategically cleared of the underbrush our plantations are planted with hardwoods

that capture more GHG’s then they release. Since these valuable hardwoods are not burned, the GHG’s are stored indefinitely, making it a sustainable and eco-friendly investment. We strongly believe that through strategic planning, we can successfully achieve a high ROI for our clients as well help to protect the planet, creating the ultimate win-win! By investing in hardwood trees you’re making an active contribution to protecting the environment because every tree planted helps to improve the global carbon footprint. Six hundred teak trees absorb approximately twenty-two tons of CO2 every year. That’s the equivalent to the CO2 emissions created by driving a car for 60,000 miles.

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