Tuesday, January 20, 2009

Has there been a better time to invest in land and teak?

Well in a nutshell no! - in our opinion (although we might be slightly biased) there has never been a better time to invest.
Why - I hear you ask....

Well, as many of us are now discovering to our cost, those intangible assets like stocks, bonds, contracts for difference, options are not as secure as we thought them to be!

Even the banks and bankers in whom we placed our trust are not as trustworthy as we imagined them to be.

Warren Buffett said that "when the tide goes out we find out who has been swimming with no shorts" and it turns out that many of our banking and financial institutions were skinny dipping!
Here in Ireland financial scandal seems to come on financial scandal. Anglo Irish Bank, the states third largest bank, has just been Nationalised. It's share price collapsed as a direct result of investor loss of confidence when it was revealed that Sean Fitzpatrick, the banks previously respected CEO and Chairman, had deceived the banks auditors, the financial regulator, the banks board and the banks shareholders for 7 years, by "bed and breakfasting" a personal loan of €130million with another financial institution whenever the bank was being inspected or audited.

The result significant losses for the banks shareholders which can never be recouped.

An extraordinary tale of deceipt!

The upshot of the current financial crises is that many of the assets in which we had placed our financial hopes and dreams have been devalued to a fraction of their previous value with little or no hope of recovery.

The advantages of a development land and teak investment are:

  1. These are tangible real assets.

  2. Teak does not know about the global credit crunch or banking crises - it continues to grow regardless.

  3. Although teak prices have fallen back from the highs they reached in mid 2008, our teak will not be ready for harvest for another 6-10 years and the growth in world population will ensure that demand for teak continues to rise.

  4. Supply of teak continues to fall as world opinion continues to move (quite rightly) against logging our natural jungles.

  5. As for land - well they just ain't making any more of it.

  6. Costa Rica's aims to be carbon neutral by 2021 will reduce development land in Costa Rica, pushing up the price of existing development land.

  7. The US Baby Boomers start to retire in 5 years and many will seek their piece of paradise in Costa Rica.

  8. Interest rates are at historic lows and your bank savings are actually losing money when compared to inflation.

  9. Good stock picks seem impossible in the current climate.

  10. And I repeat - these are tangible real assets!

The bottom line - there has never ben a better time to invest in development land and teak in our opinion (although as I mentioned we might be slightly biaised!)

Have you seen our new website, it has lots of downloads and we hope it is easier to navigate and will become an important source of information for teak, development land and Costa Rica - have a look: http://www.costaricainvest.ie/ and we would love to get your feedback on how we might improve it further, just e mail us at info@costaricainvest.ie

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