Here is a sound investment that is worth a close look. It provides an investment in land and timber at the same time and provides an ongoing income from the upcoming carbon trading scheme.
This large rural forestry development is located in the Far North of New Zealand, in kiwi habitat area handy to the popular coastal towns of Taipa and Cable Bay and the main service centre of Kaitaia.
The ten acre plus blocks are planted in 5-6 year old radiata pine and all enjoy main country road frontage.
New Zealand encourages the growth of forestry in order to gain carbon credits under the carbon trading scheme.
Under the scheme, trees planted after 1992 are able to claim credits which are used to offset carbon users such as industry etc, hence the standing trees provide ongoing income for the property.
If the trees are cut down and milled, the income from the timber should easily pay for the land, & you still have the land !
Having cut down the trees, carbon credits are repaid from the proceeds.
Once replanted, the land is producing income again from carbon credits until it is time to mill again in 10 years or so.
For sale is the approved subdivision for 13 rural blocks, with all blocks being over 10 acres (4 hectare), professionally planted radiata forest and a main country road frontage.
| This property pays a 7% return on the Purchase Price of the land, for a period of 2 years, during the Subdivision process. |
| After 2 years it is expected that the subdivision is complete and partially sold off to repay development costs, or trees have been logged to provide income. |
Technical Details
Peria valley road Northland
Species - Pinus Radiata
GF Rating -17
Year Planted 1999
425 stems per hectare
First certified pruning if required - $0.65 per meter x 2.5 m per stem
Mature forest based on June 2005 values saleable at $15,000 per hectare net of all expenses to logging contactor (ie trees as they stand)
Estimate provided by Cochrane Logging ltd.
If trees harvested by owner and sold direct to sawmill or milled for sale, returns would be much higher.
In addition, there is currently 8 Hectares of mature southern pine ready for milling now (lot 11 & 13)
Southern pine does not have the strength of radiata and therefore is not suitable or building construction however it can be used for decorative timber sarking, furniture etc.
nearby Cable Bay
According to this calculator, each block of 4 hectares is likely to be entitled to $2200 carbon credits per year at an estimated price of $25 per tonne of CO2.
The total credits available for the 65 hectare block is likely to be $35k per year.
see article below for further details
| Section Type: |
Rural |
|
| Development Type: |
Forestry |
|
| Development Size: |
Whole development for sale as 1 lot |
|
| Address |
LOT 2 PERIA VALLEY ROAD |
|
| Size: |
13x 10 acres |
|
| Price: $ |
850,000 + GST |
|
| Valuation: |
|
|
| Profit Potential |
|
|
| Finished Sale Price |
$15,000 per hectare timber
$15,000 x 13 x 4 |
$ 780k |
| Initial purchase price |
Land, plans and consents |
$ 850k |
| Development costs |
$ per
- build cost, finance etc |
$ |
| |
Estimated Profit |
$ |
BBX and Barter dollars also accepted
| Contact Details |
|
| Name |
Daryo or Peter |
| Company |
Darius Group |
| Phone - Landline |
+64 9 447 1641 |
| Phone - Mobile |
Daryo +64 27 524 1931 Peter +64 274 711191 |
| Fax |
+64 9 447 1642 |
| Web Site |
www.dariusrealestate.com |
Note: email addresses available by placing an "enquiry" (top right of menu)
