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“Click here to discover our top-performing opportunity”
From Seed
To Seedlings
To Harvest
How it Works
Getting involved in a timber investment opportunity had been historically reserved for only large corporations or extremely wealthy individuals. This is primarily due to the overwhelming costs and maintenance of growing plantation trees. Our investment model allows you to reap the same benefits as these wealthy investors without the large capital outlay.
Through Tropic Hardwoods, individuals can now take advantage of the highly lucrative hardwood industry by purchasing free-hold titled property in one of our highly sought after hardwood plantations. The properties range in size from 1/8th of an acre to over one acre and have been pre-planted with highly profitable teak or mahogany trees. In addition, since we manage and maintain the entire plantation, which consists of our trees as well as those owned by our clients, all parties benefit from the cost savings achieved through the economies of scale of a large commercial operation.
This innovative structure enables almost anyone to take advantage of this exciting and highly lucrative opportunity as it does not require a large capital outlay to participate. While our meticulous planting and growing process calls for a 20-year final harvest timeline, the tree’s value increases every year. This enables our clients to either hold their investment for the full term or sell their property and trees at any time. Obviously the value of a fully matured tree is higher than that of a younger tree and holding them until maturity provides for the highest return, but having the ability to “cash out” of the investment at any time makes this opportunity even more attractive.
Investment Model
The return on an investment (ROI) in hardwoods depends on a combination of two factors:
#1 Value of the Trees
The first factor that impacts the ROI is the increase in the value of the trees based on their age, size and quality. Based simply on the natural biological growth, the tree sizes increase approximately 6% per year and as a result, they obviously become more valuable each year as they grow. The natural tree growth means that the volume of wood that each tree produces also increases approximately 6% each year.
#2 Rising Price of Wood
The second factor that impacts the ROI is the increase in the value and price of teak. Teak prices have been rising steadily and consistently for years. Considering that the world’s population and resulting demand for teak and mahogany continues to expand exponentially, while the supply of teak becomes ever increasingly sparse, the increasing price trend is expected to continue well into the future.
Grow Your Money
Even a conservative increase in the price of harwood, coupled with the biological growth of the wood itself, generates impressive returns.
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 Tropic Hardwoods, we truly do “Grow Your Money”
What We Do
We scout the world’s perfect locations to grow the best long-term investment crops, primarily hardwoods like teak and mahogany.
Using our knowledge and local skilled labor, our site selection and preparation is the first step in producing the best quality and highest value timber products on the market. Without the ideal site selection and preparation, the end result may not be as desirable or valuable. This is just one of the many reasons why we consistently produce the most valuable hardwoods on the market today.
Commodity Charts
Historic Teak Values
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 (According to the United Nations FAO publication ‘Forest Products Prices’). Regardless of the timeline analyzed, throughout history, teak prices have clearly been rising at a rate greater than the 9% used in our projections.
Recession Proof
Since trees get more valuable as they age, they have a strong resistance to recession. Teak and mahogany trees continue to grow and remain unaffected during down times in the economy. Although prices consistently rise annually, our clients are not forced to harvest at any particular time. Unlike other crops like cacao, coconuts or pineapple, that need to be harvested when ripe, our clients have the ability to harvest their trees based on the best particular time/price in the market creating an incredible advantage.
Your Investment Guarantee
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. Teak is one of the heartiest species of trees and is very resilient to insects and diseases, once fully rooted even fires won’t damage them. However it does take upwards of three years until they are fully rooted.
Timber as an Investment
“Indeed, as an asset class, timber – a renewable resource with constant product demand – stands out as a remarkably stable investment.”
Bloomberg
Wealth Manager
“Over the last 40 years timber investments have returned 13.3% versus an 11.6% return for the S&P 500 index over the same time frame.”
Smart Money
October 11, 2001
“Inflation has an inverse effect on timber prices, increasing the return on investment. Timber has historically risen 3.3% over the rate of inflation.”
The Investment U
January 7, 2005
“Timber returns beat stocks from 1990 through 2007… with less volatility.”
investopedia.com
“Between 1971 and 2010, timber boasted average annual returns of over 14%. That’s enough to turn $10,000 into more than $1.5 million.”
Stockinvestor.com
“Timber – a renewable resource with constant product demand – stands out as a remarkably stable investment.”
Bloomberg Wealth Manager
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Submit the form below to receive your FREE copy of our Hardwood Informational Guide