Property4Gain – a UK real-estate agent for overseas properties - is marketing an alternative investments in “tropical hardwoods – Teak and Agarwood” which looks very similar to Oxigen Investment’s product of £10,000 plus maintenance fees. Suprisingly the copy makes no mention of where the tree farm is located.
The minimum investment is £10,000 and the amount of trees varies according to the species selected. For instance £10,000 buys 300 teak trees or 350 agarwood trees.
The forestry company charges a fee for growing the trees, which includes the cost of acquiring and maintaining the land that the trees are planted on and the ongoing maintenance and the harvest of the trees.
The annual maintenance cost is 10% of the purchase price each year. For teak the annual maintenance cost is only required for the first 5 years because the remaining maintenance is self-funding. The annual maintenance cost can be paid quarterly or annually. If the total maintenance cost is paid up front the investor receives a 5% discount on the total maintenance cost.
NB. Further details may be available in the ‘cutomer area’ (registration required)
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