Bamboo Investments - The Greener Way to Make Money
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Posted On :
Apr-19-2011
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Article Word Count :
526
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As the news is constantly full of information supporting scientific papers on global warming, people are increasingly looking for ways to generate money whilst saving their conscience and bamboo is an ideal medium term investment. It is an extraordinary plant in that it sequesters four times more CO2 than ordinary timber, and produces up to 35% more oxygen thanks to its quick growth.
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As the news is constantly full of information supporting scientific papers on global warming, people are increasingly looking for ways to generate money whilst saving their conscience and bamboo is an ideal medium term investment. It is an extraordinary plant in that it sequesters four times more CO2 than ordinary timber, and produces up to 35% more oxygen thanks to its quick growth.
Anyone who has visited Hong Kong will be familiar with the sight of bamboo scaffolding which is used in the construction of skyscrapers. With a higher tensile strength than most steel, and much lighter, it is widely used in the construction industry throughout Asia. As Asia has some of the fastest growing economies and populations in the world, demand for Bamboo in construction is set to soar. In fact, over 1 billion people already live in homes made from Bamboo.
Bamboo is also used for the production of joinery panels, flooring, furniture, pulp and paper. It is also increasingly being used in textiles and for energy and biofuels.
It’s one of the fastest growing plants on the planet; growing to full height in just 1 year. As it is in such high demand, annual internal rate of returns are forecast at 16% to 21% per annum throughout its life cycle, once the initial growing period of four years is complete, with the harvestable timber increasing in volume as the plant ages.
Another strength of Bamboo is that it craves more co2 and releases more oxygen than other woods. Combined with its quick growing capabilities this makes Bamboo a green investment.
Leading investment consultancy Property Frontiers is currently offering a well structured bamboo investment opportunity. Investors buy a crop of bamboo seeds with a minimum investment of $15,000, the seeds are then planted, and the crop managed by the professional farmers. The investors receive returns from year one, and returns are expected to total 895%. The opportunity comes with returns guaranteed for the first 3 years.
Experts predict that the Bamboo market will be worth $20 billion by 2015. The global timber industry is currently worth £600 billion but there are fears for its future. At present some 30% of timber is being produced illegally and 40% unsustainably. Because of its rapid growth capabilities and green credentials bamboo's share of the global timber market is predicted to grow rapidly during the next few years.
There are several advantages to this type of green investment, not least the low entry level, low risk, and its similar structure makes it an ideal way for property investors to diversify their portfolios. It also has a constant growth rate which is relatively unaffected by politics, currency fluctuations, inflation or interest rates.
There are tax advantages for this kind of investment as well, as in many cases it can be used for SIPPs or for inheritance tax purposes. An investment of $5000 will buy a clump of 20 plants which is estimated to give a net return of up to $17500 based on bamboo prices today, while its green credentials will also give investors the chance to invest ethically.
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Article Source :
http://www.articleseen.com/Article_Bamboo Investments - The Greener Way to Make Money_59798.aspx
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Author Resource :
Property Frontiers is a leading award winning agency specialising in overseas property investment market and eco (green) investments. We have helped thousands of clients in their search to make sound, long term investments that provide both security and the highest possible returns. For great investment opportunities and detailed information, please visit bamboo investment.
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Keywords :
bamboo investment, green investment, property, investment, real estate,
Category :
Business
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Business
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