Greenbelt Irish Forestry

Johnerr

http://www.greenbelt.ie/

Hi, anyone heard of this company, office located in cavan, virgina,

You buy a couple of acres of them at 3000-3500 and acre

Im not sure what the minimum investment. Its a long term investment which offers 6% per year, tax free.

I have'nt read into it too much but just wondering if anyone has heard of them or had dealing with them?

Looks like a safe long term investment with some tax relief, wont make you a millionaire but 6% is not bad.

Thanks
Charlie


"Green Belt’s team of foresters actively source land which is suitable for afforestation at competitive prices. On an annual basis Green Belt source an average of 1000ha of land which it makes available to those interested in investing in forestry in Ireland .

Green Belt does not add a commission onto the price of the land but make the land available to the investor at cost price.

Once GB has attained planting approval for the land from the forest service the investor closes the land sale through their solicitor. Green Belt will then plant and manage the new forest at no additional cost to the investor by utilizing the planting grants that are available through the Department of Agriculture and Food.

Typical land prices vary from €3,000 per acre to €3,300 and the size of the farms available range from 15 acres to 100 acres plus. The returns available from this investment come firstly from the tax free forestry premium available at an average rate of €200 per acre inherent growth in value of the forest itself"

lucky john

Johnerr wrote: »

http://www.greenbelt.ie/

Hi, anyone heard of this company, office located in cavan, virgina,

You buy a couple of acres of them at 3000-3500 and acre

Im not sure what the minimum investment. Its a long term investment which offers 6% per year, tax free.
7
I have'nt read into it too much but just wondering if anyone has heard of them or had dealing with them?

Looks like a safe long term investment with some tax relief, wont make you a millionaire but 6% is not bad.

Thanks
Charlie


"Green Belt’s team of foresters actively source land which is suitable for afforestation at competitive prices. On an annual basis Green Belt source an average of 1000ha of land which it makes available to those interested in investing in forestry in Ireland .

Green Belt does not add a commission onto the price of the land but make the land available to the investor at cost price.

Once GB has attained planting approval for the land from the forest service the investor closes the land sale through their solicitor. Green Belt will then plant and manage the new forest at no additional cost to the investor by utilizing the planting grants that are available through the Department of Agriculture and Food.

Typical land prices vary from €3,000 per acre to €3,300 and the size of the farms available range from 15 acres to 100 acres plus. The returns available from this investment come firstly from the tax free forestry premium available at an average rate of €200 per acre inherent growth in value of the forest itself"

Green belt opperate from Virginia Co Cavan. They are around a long time and are one of the most reputable forest companies in Ireland.

Basically what you are doing here is buying land and planting it with forestry. The return is the premium paid to you by the forestry services. As mentioned above, around €200 per acre for 15 years if a non farmer and 20 years if a farmer.

There is a few costs like insurance, pruning, prsi, roads ect that eat up a bit of the premium over the time but nothing major. You basically leave it to grow. You will get a few euro for thinnings after 13..14 years and again every now and again after that but the big pay day is at clear fell. Softwood..30 to 40 years, hardwood 60 + years. A 20 acre planting will give you around 230, 000 euro tax free today but you will have to spend 25,000 euro replanting (that is a condition of the grant). Between year 1 and 20 the value of your investment will hardly grow so this is a looooong term investment. Minimum investment would need to be 20acres to be cost effective.

Johnerr

thanks for reply LJ was just whats I was looking for. Looks like a good solid investment but I think there might be better options for this time period.

If I had some some spare change this would be a good investment, but if I was to go for this it would be my only investment.

Thanks again.

gordongekko

you would probably get a better response on them if you post in the forestry section on boards.

Sonnenblumen

Would you not also get a better return from the PO?

€ 200/acre (excluding costs) on an initial outlay of €25k (€3.0-3.5k/acre) isn't great?

Phoebas

Sonnenblumen wrote: »

Would you not also get a better return from the PO?

€ 200/acre (excluding costs) on an initial outlay of €25k (€3.0-3.5k/acre) isn't great?

They don't say the return is €200 /acre

The returns available from this investment come firstly from the tax free forestry premium available at an average rate of €200 per acre inherent growth in value of the forest itself

Johnerr wrote: »

Looks like a safe long term investment with some tax relief, wont make you a millionaire but 6% is not bad.

The 6% is presumably a projected return, not guaranteed?
What's the investment period? Forests take a long time to grow and while there is some harvesting return from thinnings in the early years, the real value is quite long term.
There is another company called Irish Forestry Funds that offer a similar investment over 12 years and they haven't been able to pay out on investments that are now maturing because they haven't been able to sell the semi mature forests at a decent price.

lucky john

Phoebas wrote: »

They don't say the return is €200 /acre




The 6% is presumably a projected return, not guaranteed?
What's the investment period? Forests take a long time to grow and while there is some harvesting return from thinnings in the early years, the real value is quite long term.
There is another company called Irish Forestry Funds that offer a similar investment over 12 years and they haven't been able to pay out on investments that are now maturing because they haven't been able to sell the semi mature forests at a decent price.

I looked at the Irish Forestry Fund a while ago but had no interest in it for 2 reasons. The return of 9% to 14% for a 30year investment is very poor. The investment is not very liquid. To cash out you either wait for the end date or find someone else to buy your shares.

Forestry is a long term investment. Any time frame less than 20 years would be of doubtful value. It would be taking a chance to expect a return after 9 or 12 years. At least with green belt you have the income from the premiums on an annual basis as a dividen.

Mr. MD

Poor company to deal with, bringing them to court for breach of contract and breach of trust. Use them at your own risk.