Knowledge centre : FAQs

The investment:

1. How do the projected returns compare with leaving my money in a bank?
Nobody knows what interest rates will be offered to savers in the future, but if we assume an average rate of 5% per year for the next 25 years, a £5,000 deposit would increase to £16,932 if the interest were compounded. This compares to the projected return of £56,849 (over 12%) that you will receive by buying trees.

2. Do I have to pay tax?
Each investor is responsible for his own tax arrangements and we advise you to talk to a qualified tax advisor.

3. What if my financial situation changes?
GGF understands that 25 years is a long time and that peoples' circumstances change. Therefore should you require, GGF will assist you in selling your trees, via the website, on the open market.

4. When will I get my money back?
The financial projections that we have provided in the returns section give a good indication of when you will get your money back and when you start making profits.

5. Who will manage my trees?
Green Gold Forestry will manage your trees and do what is necessary to ensure that your trees grow as well as possible. We will manage your trees in the same way as we manage our own trees.

6. Is there a minimum or maximum purchase?
The minimum investment is £5,000 (equivalent to 100 trees). There is no maximum.

7. Can you be sure that the value of teak will go up?
There are no guarantees, but teak has gone up every year for the past 20 years and timber is a very safe commodity. Demand is rising so we agree with many financial experts that timber is an excellent investment.

The trees:

8. What species are you planting?
We are principally planting teak (tectona grandis), which we believe combines the best attributes for plantation growing: good results, well proven, good final price with high demand. We will also grow small quantities of mahogany (swietenia macrophylla), which is more difficult to grow, but could give better financial rewards. If the mahogany we plant fails, we will replace it will teak.

9. When is the first harvest?
The first harvest (thinning) takes place at year 7. Subsequent harvests follow at years 10, 13, 17, 21 and 25. All these time scales are estimated due to the nature of growing trees and the GGF management programme which will take into account technical aspects and international markets and prices.

10. What about fire, disease and flooding?
Tropical rain forests are damp, humid places where fire risks are low. Moisture is maintained in the soil and in the trees. It is very difficult to burn a standing forest but our staff is ever vigilant, trained and equipped for such a risk. We use the best available seedlings, which are strong and resistant. Disease in teak is unusual and can be well managed. The most dangerous time is during the first three years during which we guarantee to replace any lost trees. Flooding is not considered a risk due to the topography and historical rainfalls.

11. When are the trees planted?
Trees are planted in the rainy season.

12. When are the rainy season and the dry season?
The rainy season is from November to March and the dry season is from May to September. April and October tend to vary from year to year.

13. What reports will I get?
We will send you a report on your tress every 6 months. We will also keep your advised of any management decisions regarding the timing of the thinning. Our web page is constantly being updated with news and reports. We are available at any time to answer questions and will be delighted if you want to come and see your trees.

14. Are you cutting down trees to plant my trees?
No! We are working on land which has been previously deforested - probably for agriculture - and we are returning this land to forest use.

15. Are you planting trees that will not be harvested?
Yes. We are committed to returning one hectare of deforested land to its natural state for every hectare of land we replant with your trees. This land will remain as natural forest.

16. How will I know which are my trees?
Every tree is numbered and located by GPS (Global Positioning Satellite). After your trees have been planted you will receive a certificate stating where your trees are. With your reports we will send you photos of your trees.