- This topic has 1 reply, 2 voices, and was last updated 18 years, 6 months ago by
.
-
Posts
-
The $100K investment in Teak for residency in CR seems almost to good to be true. Projection of 200% to 500% returns in 15 years with full residency (except voting) in CR are attractive. If anyone has any information, opinion or experience with Teak plantation investments please share with us.
We are a group of Houston, TX area peterochem business related, soon to be retiries, who are investigating CR for possible relocation and retirment.
Thank you Scott for this great website!
Don Magee
Spring, TXWell, I will speak to it. 15 years is a very short time for teak. How do I know? We grow it. http://www.fincaleola.com
Also, you will need 100,000 PER PERSON (no, spouse don’t get included) for the residency. This is under the Ley (law) 7575.
Much of this depends on where the trees are grown, and how much care is given. For example, in 15 years in Guanacaste you are just getting into have valuable wood – on our side of the mountain, first thinning is around 6 to 8 years.
Be very careful on any investment like this – Costa Rica is full of failed plantations.
How many trees are you supposed to get for 100,000 dollars? What is the planting density (i.e. how many meters apart or how many trees per hectare) What kind of soil? How steep is the land (teak hates anything more than 20%) How often will it be cleaned for the first 3 years (teak hates competion) How often will it be pruned? (you want to produce the best quality wood possible, if you have knots, you will lose half your value or more)
Is that enough to get started?
I can tell you how much you might make if you answer the above questions. Well grown teak is a great investment – unfortunately, this is rarely the case.
Thank you crtreedude for the information and the link to the wonderful website. It is always great to get information from the horse’s mouth.
Although, we maybe talking at cross purposes on the Costa Rican Resident Investor Status as applies to forestry, or maybe not. I tend to trust your judgment more than someone trying to sell me something.
The information we have recieved concerned a different set of residency laws, i.e. – “Forestry Law, article #70, of Costa Rica, recognizes the Investor status, on a reforestation project, to any person who invests a minimum amount of US$100,000.00 to apply for “Permanent Resident Investor Status” in Costa Rica.
This status carries all benefits and rights that a Costa Rican citizen enjoys with one exception. The individual is not allowed to participate in National elections. This status allows the individual to live and work here in Costa Rica in their chosen field of endeavor.
They are not restricted to working in the field in which the investment has been made. Individual must be present in Costa Rica a minimum of one day a year to have their “cedula” stamped.
The investor has the right to live and work in Costa Rica. The spouse and any children under age 18 have the right to live in Costa Rica. (or children under age 25 if full time students and living with cedula holder)” etc.
The above information (contained in quotes) is being presented by some CR teak investment businesses and at least one CR law firm we contacted. This information may be outdated or perhaps very new, does anyone have any insight?
As far as planting density 1,100 trees/hectare seems to be the consensus on inital planting and 500 tree density at 15 year harvest. Of course the Teak investment firms we have contacted claim the finest foresters, land, climate, and forest culture on the face of the earth. The firms are presenting themselves as “certified” by the CR government and some firms claim international scope. Some firms sell you land and trees, some just trees. One in particular sells “guarenteed” trees. If one of your trees should perish they will replace it with one of theirs.
Like I said, sounds almost to good to be true. But, if it is true, there are several of us more than willing to invest the $100k in what we perceive, at this time. as a BARGIN.
Thank you again for your insight crtreedude and perhaps we might have contact off site, as I doubt Scott would appericate us talking business on his site.
PLEASE – if anyone has some insight to offer, please let us hear from you. We might just be neighbors someday soon. Thanks again to Scott for this wonderful forum.
Don Magee
Spring, TX
- You must be logged in to reply to this topic.
