What are the risks?

Of course with any investment there are risks.

What are the risks to an investment in Di Pacifico Dos?

Well there are two aspects to the investment the teak and the land.

1. The teak: Anything which affects either the teak yield or the price of teak will have an impact on the return on your investment.

Listed below are some of the factors which could affect your teak yield:

a. Hurricane - no hurricane has been recorded on the pacific coast of Costa Rica

b. Forest Fire - teak trees of more than 8 years of age are resistant to forest fire, careful management of the teak plantation, fire breaks, removing debris all help to minimise the risk of fire damage.

c. Disease - again careful management, disease prevention and early removal of any diseased trees reduce the risk of disease.

d. Adverse weather conditions - teak does not grow well in either very wet or cold conditions and a significant change in climate could afffect the teak yield.

Teak is a traded commodity world wide and some of the factors which would affect the price of teak are listed below:

a. Oversupply of teak - currently less than 5% of the world's teak comes from plantation sources. The rest comes from jungle sources. As world opinion and international laws move to restrict the logging of this natural resource the supply demands will fall to teak plantations.

b. Reduced demand - currently demand for teak is increasing year on year largely driven by huge demand from India and China. The likelihood is that demand will continue to increase.


2. The land: a reduction in land prices in Costa Rica will also affect the return on your investment

Some of the factors which might affect land prices are as follows:

1. Reduced demand: A reduction in demand from North American and Canadian holiday makers will reduce land prices and whilst the world economy is at a low at the moment, remember that this is a 6-10 year investment. Ask yourself this question - "do I really believe North American economy will be as bad or worse than it is now in 6-8 years"?

2. Political Instability: Political instability would certainly affect tourism to Costa Rica, however Costa Rica is the oldest democracy in central and Southern America, with more teachers than policemen, no army and huge foregein inward investment by mulitnationals.


If you are intrested in an investment in Di Pacifico Dos but are worried about the risks to your investment ask us to prepare an investment return showing a 0% land price increase, a 0% increase in teak prices and a poor teak yield.

The return still beats the bank! Just drop us an e mail or give us a call on +353 1 272 4184.