You are here :: Panama Real Estate » Real-estate-investments » Reforestation

Reforestation - Panama Real Estate that is Helping the World

Through greed and abuse, nearly one-third of the world's standing forests have been eliminated. Scientists have not been able to fully calculate the effect of deforestation, but it is known that there are economic as well as ecologic effects already evident in the world. Reforestation is seen as a way to turn back these negative effects and Panama is one place to do it. Teak has become an important wood in these reforestation projects and with the affordable land for sale in Panama; the idea of Panama Teak plantations has become very popular.

Uses of Teak

A reforestation project at a Panama Teak plantation is a wise business decision not only because of the cost of Teak but because of the myriad of uses for this amazing wood. The very finest of yachts use Teak wood for their decks; in fact, Teak was even used extensively on the Titanic. This is significant as an example of the superior properties of Teak; even after nearly 100 years in the frigid North Atlantic, the Teak from the Titanic is still in excellent condition. Teak is highly resistant to sun and water damage and due to its natural properties, is self-sealing and has very good surface properties. This makes Teak important because it is a resource that retains high value due to its superb natural properties.

Teak plantations are tree farms that represent great investment opportunities. These plantations are reforestation projects consisting of planned and managed groves. Because they are strategic planned and maintained, Panama Teak plantations can actually have effective yields that are higher than naturally occurring groves and forests. Burma actually established Teak plantations in 1856. This farsighted move not only realized the need for replenishment but proved that Teak plantations were ecologically viable.

Investment Possibilities with Panama Teak Plantations

Many companies are anxious to invest in Teak plantations and reforestation projects because potential returns are enormous. As the worldwide supply of Teak dwindles, the prices of this exotic wood will continue to rise. Higher prices only make the opportunities that much more desirable.

A Teak reforestation project can be extremely profitable; for example, over the lifespan of a tree in a Teak plantation, the first harvest occurs at 12 years, and re-grows up to 3 times. If the trees are planted in a 10 foot quadrant and maintained properly, a hectare of Teak trees at the current market prices will yield gross income of over $475,000 in 20 years. It is projected that plantation set-up and maintenance costs would be approximately $17,000 per hectare for the same 20-year plantation.

The Potential of Panama Teak Plantations

The country of Panama is an excellent location for reforestation projects; the soil and climate in Panama are suitable for optimum growth of Teak trees and real estate in Panama is very affordable. It is still possible to find land for sale in Panama for as little as $1,500 a hectare. In fact, in some provinces, it is still possible to buy a farm with oceanfront frontage and a dock for the approximately the same price. Panama has a democratically-elected government that is very supportive of foreign investment and they even enacted many laws which encourage both business development and foreign ownership. Because of the real estate prices, the suitable climate and the supportive, stable government, Teak investment in Panama is a very sound business plan.

A Socially Conscious Use of Panama Real Estate

In Panama, each of the elements that make Teak investment a smart business move are in place; high demand, limited supply and opportunities for expansion. By combining the profit potential of Teak with Panama's affordable real estate and governmental support, it is possible to not only make a strong profit but to also make a socially conscious decision to help the world via Panama real estate.

We have covered some extermely profitable investment ideas that Panama has to offer but, lets explore the diverse and beautiful cities, towns, villages and countryside that is Panama.