This beautiful property is located in the province of Colon, situated between the towns of Escobal and Coipo, which lie north of Panama City.
The Teak Plantation is on the shores of Lake Gatun, it has more than 2000 meters lake front and 1000 meters road front. The property has electrical power; fresh well water all year around, it also has live springs and many scenic locations. For sale by private owner.
So what do I think?
With five & seven year old teak trees on this 80 hectare plantation
much of the difficult work has already been done. But with seven year
old teak trees you must be committed for the long haul in waiting for
the harvest. There is still maintenance to perform though minimal. This
is private property so all the onus for security and maintenance is
on the owner. This is not for the casual investor. The advantages are
as owner you control your own destiny, which I believe is important
due to the many questionable and at time unscrupulous plantation investment
firms throughout the world.
How's the price?
At $1,500,000 - $18,750 per hectare I believe this teak farm is a bargain
especially if compared to the Costa Rican Teak Plantations. So it appears
to be good buy and much more so considering the potential of the real estate.
Is it going to make me lot's of money?
This particular teak tree farm should return a tidy profit after expenses
even if you sell off the logs. As with any business there are always
operating costs and potential losses. Not only will you have maintenance
fees you will have harvesting and processing costs. How much profit
will depend upon your business savvy and level of your involvement.
The potential profit I see in this deal
as a lumberman is tempting, but remember the projected profits are merely
projections based upon maximizing profit, minimizing expenses and locating
the best market.
Things to consider.
If you do not plan on living on the property or in the area you will
need a very reliable manager. I would also look into insurance, perhaps
from Lloyds of London.
You do get residency in Panama with a US$40,000.00 investment in reforestation.
This has benefits to those who wish to retire in a less expensive and
currently terrorist free country. This would not cause loss of citizenship
for US or Canadian citizens. Some restrictions apply for other foreign
nationals.
With more than two kilometers of lake front property in an area eventually
prime for development the Lake Gatun property should be considered an
excellent real estate investment also. This property is in an excellent
location for a retirement village considering that it is one hour and
thirty minutes from Panama City and only 30 minutes from Colon City.
Some of this development could begin prior to harvest and actually may
become an advertising boon in marketing the development.
The right Tree Plantations I believe are a sound investment in Panama.
