small money investment

dbnavan

Hi there,

Does anyone have any idea of how to get involved in small money investments. on a student income, with good return, probably no such thing but wondered anyway.

D

ronbyrne2005

http://www.irish-forestry.ie/

ronbyrne2005

or do something in network marketing,sell things to people in your college

RPGGAMER

ronbyrne2005 wrote:

http://www.irish-forestry.ie/

this sounds great. but there is a lot i don't understand. I am buying a site soon. it will be .5-1 acre but maybe more after seeing this investment. what is the min amount of land needed? if i bought 5-10 acres and had some of it wooded am i going to get a grant for it.

looks great and i think i will be contacting the forestry board. i like the ethical reasons too.

RPGGAMER

dbnavan wrote:

Hi there,

Does anyone have any idea of how to get involved in small money investments. on a student income, with good return, probably no such thing but wondered anyway.

D

that forestry thing looks great i emailed them so waiting for the rest

ronbyrne2005

from this irish indeprendent article it seems 40 acres is minimum viable plot and you would get grants,get a few friends toghther to share the cost of the 40 acres

...........................from indo:
DESPITE reservations expressed about the projected returns for a new forestry fund open to investors with as little as €750 to invest, it is already oversubscribed ahead of tomorrow's scheduled close date.

Irish Forestry Services anticipates returning "probably over €1m" worth of cheques to would-be investors in the €5.2m fund, even as industry observers claim that a 5pc or 6pc return is more likely than the 9pc of which it speaks.

Marketing director Paul Brosnan said its last 10-year fund in March was also oversubscribed by about 20pc.

However, Tony Mannion, technical director of the Society of Irish Foresters, questioned the likely performance of a 10-year fund, when, currently at least, the market for semi-mature trees is weak.

That aside, to project a 9pc return on any forestry investment is, he said, "a tad optimistic. Others throughout the industry talk of 5pc or 6pc."

The actual performance of any Irish Forestry Services fund is not yet known because each fund will be valued on the price of timber at the fund's maturation date and none has yet matured. The first will be finalised in 2010.

The appeal is of forestry investments is that they grow tax-free and are low risk.

If the Irish Forestry Service fund performs as projected, with 9pc compounded annually, those investing the minimum €750 today will get €1,775 tax-free in 2014.

Irish Forestry Services is the only private fund open to Irish investors and the option for those without the means and disposition to buy and cultivate the minimally viable forestry plot, about 40 acres, Mr Brosnan said.

Joe Carroll, operations manager of government forestry research service, COFORD, said investors also have the option of buying acres from forestry firms that would cultivate them, such as Woodland in Galway and Greenbelt in Cavan.

"However," he said, "the minimum stake would probably be at least €30,000."

Mr Brosnan said other private forestry funds have come and gone during the eight years of existence of Irish Forestry Services.

"Nothing else is quite as stable as forestry," Mr Brosnan said, citing recent research by the US-based asset management firm Grantham Mayo Van Oterloo.

"It found that timber outperformed the S&P (Standard & Poor's) index since 1940 and that tree values rose in three of four market collapses in the 20th century."

That said, he adds, "it's not an investment that's going to set the world on fire" (fortunately, for timber).

Timber values are stable and steadily rising, fuelled by diminishing natural resources, yet the modest return of the past 100 years has "typically outstripped the rate of inflation by about 1pc."

Since 2000, the firm has offered 10-years funds twice a year, one in March, one in September, and they are typically oversubscribed. Previously, it offered larger 30-year funds.

Together, Irish Forestry Services has more than €50m under management.

The limiting factor for forestry funds, such as IFS, is not willing investors but the availability of suitable quality land, Mr Brosnan said.

...........................................................................................

Culchie

Just be careful, and check out what 'species' of tree is being planted woth your funds.

My father invested heavily in one of these schemes 15 years ago in Stika Spruce, with signed contracts for sales on the 'open market' in Europe for Christmas Trees.

However during the time the trees were growing, his stock became useless, and the Noble Fir came into being, which does not shed needles, leaving my father (and hundreds of other investors) with stock that was useless.

I'm not saying this is the same thing, I'm just saying check it our thoroughly.

I note there is an 'open market' reference on that website as well, hence the importance of knowing that there will be a market for your trees in 6 years time.

ronbyrne2005

i think timber is timber even in six years time! the good part of setting up your own plantation is you can wait till conditions are good in the timber markets wheresas in the forestry fund things once the x year period is up you have to go sraight to the market and take the rate/price at that date

anyone know the amount of timber an acre yields? and what price such timber gets on open markets?

Culchie

ronbyrne2005 wrote:

i think timber is timber even in six years time! the good part of setting up your own plantation is you can wait till conditions are good in the timber markets wheresas in the forestry fund things once the x year period is up you have to go sraight to the market and take the rate/price at that date

anyone know the amount of timber an acre yields? and what price such timber gets on open markets?

If your research findings come up with "timber = timber in 6 years time" I think you should do some more.
Did you read my living example of how one species of tree became worthless overnight?


Don't forget the 'wooden floors' syndrome that every bloody house in Western Europe has had installed. Remember those 'pine kitchens' of 10 years ago, and how they look so 'hicky' and dated now. Do you think a Pine Forest would be a good investment now?

So past results of the last 10 years are not necessarily going to repeat themselves.

ronbyrne2005

i suppose you could plant a mixed forest? i havent done any research on forestry investments. i just read in several newspapers that it was possible to invest small amounts tax free so i posted the link for others to do their own research,i havent invested in forestry and havent any plans to do so in immediate futute,if anyone has any input on the issue please post. i thought there was some types of wood which generally dont "go outta fashion".maybe i was wrong.

CCOVICH

At the end of the day, projected returns are just that. I guess the tax free aspect is something in their favour.