- Trees, I own a few hundred (might even be a few thousand) through a forestry management company. This makes me feel quite good as it's a 'green' investment, and at the moment it looks set to return about 9% p/a net (compounded). Although it is a commodity and will depend on the log prices at harvest time about 7 years from now. The most frustrating thing about this is, despite owning lots of pine, I still need to part with $20 or so when I go to Mitre 10 for a 2 metre length of 4x4.
Any advice on this? I have been thinking about a forestry investment - either shares or a whole small plot.
I reckon the best time to invest in trees is now or the last 5-10 years.
There was a boatload of trees planted in the 90's which are coming up for harvest (kiwirail are even opening closed rail lines to help with transporting to port) and so I think prices will stay steady or drop with the amount of trees coming to market.
But that may not be the case once the 90's planting frenzy has been harvested over the next 10 years.