The good to knows

Is investing in trees a risky business?

Short answer: No. Long answer: Also no. But like with any living thing, there are a few things that might happen throughout your tree's lifetime that you should probably know about now. We've gathered all the risks here, so you're fully informed as a tree owner and happy to invest in the future of the planet.

Natural hazards

All our forests are insured against this eventuality, but even with this said, it's difficult to anticipate and prevent natural hazards, even with a sustainable forestry management plan in place. We'll do our best to see one coming though and to be ready for it, if it does.

Changes in tax

There’s currently no tax on capital gains from the money earned when your tree is cut. However, tax regulations can change and even be applied retroactively, so we advise that you consult with a legal and/or financial advisor, should any legal or regulatory changes occur in your country of purchase. We’ll of course let you know if we hear of any!

The price of wood

The price of wood may increase or decrease in the future. But it’s a pretty good picture, if you look at the historical data for wood prices. Since 2004 the average yearly increase in wood prices has been 2%. And also - wood is the material of the future! So we’re totally not anticipating that wood will do anything except remain popular, in demand and good for the environment.

Lack of liquidity

We're not going to lie. Trees are a terrible investment if you need cash quick. Planting and owning a tree is a long-term investment. We selectively cut the trees only when their contribution to the planet's carbon sink has begun to decline. In most cases, that's several decades. So if you're in this, you're in it for the long haul!

Total capital loss

As with any form of investment, there is a risk of total loss of capital. It is a legal obligation that we specify this. So there you go. We’re specifying it. But actually, our foresters are professionals with many years of experience in the… woods. So your trees are in very good hands.

Inflation

In the case of a general and long-lasting increase in prices, there is the obvious risk of a loss of purchasing power that comes with inflation. But… if this were the case, then the price of wood would rise too, meaning your expected gain would also increase. So that doesn’t sound too bad at all, does it!

Insolvency and bankrupcy

We saved the really heavy stuff for last... But it's actually not that scary! Because whatever the financial situation of EcoTree, you remain the owner of your tree. And in the absolute worst-case bankrupcy scenario, a liquidator would still be mandated by a judge to preserve all of your rights, including the maintainance and management of our forests. And anyway, we have no intention of going under. We've got too big a mission and too many institutions supporting us with investment to let that happen!

Before you go, we just wanted to let you know that our Notice of Service and FAQs are right here.

See you in the forest!