10 Reasons Why You Should Invest in Sandalwood Plots
In this day and age, sandalwood trees are no longer used to make incense sticks or perfumes as they were in ancient times. Most people don’t have much of an idea why sandalwood trees can make good investments, and that’s where the problem lies.
Sandalwood is one of the most precious types of wood in the world, and it has many properties that make it a smart investment choice if you’re looking to invest in real estate – check out these 10 reasons why you should invest in sandalwood plots today!
1) Higher Returns
# 1 Higher Returns. One of the biggest reasons you should invest in sandalwood plots is for the potential for higher returns. The higher price and demand for this product mean that investors have a higher chance to make a profit. However, because of the risks associated with this investment, experts recommend keeping your investment limited to 25% of your total portfolio. Another reason why you might want to keep it lower is if you are still developing your personal finances.
# 2 It’s In Demand: A key benefit of investing in sandalwood plots is its current popularity and high demand from companies who use it for fragrances, skin care products, furniture polish, and much more.
# 3 Diversification: Diversifying your investments can help protect against any potential losses or failures with one particular stock or commodity. Investing in sandalwood trees offers an opportunity to diversify your portfolio.
# 4 Variety: With a variety of species available, like Indian sandalwood (Santalum album) and white sandalwood (Santalum spicatum), there are many different options when deciding which tree to plant.
# 5 Significant Time Commitment: Planting trees takes time before they grow into full-sized trees which may take up to 50 years depending on the species.
2) Favorable Weather Conditions
Thanks to favorable weather conditions, the harvesting season for sandalwood is nearly year-round. Between rain and sun, these trees are able to flourish regardless of the season and grow without any major hindrances. This helps ensure that there’s always an abundant supply of quality wood available to be processed into essential oils and other goods. In turn, this also creates an environment where prices stay low as sellers compete with one another for buyers. The natural harvest cycle also provides a steady flow of new products to market throughout the course of a year.
With time, it is easy to see how demand for your investment can soar in a short period of time. That being said, there will inevitably come a time when people need more sandalwood than they currently have access to (likely due to various forces such as overharvesting). When this happens, prices will skyrocket once again – so make sure you don’t wait too long before investing!
3) Low Capital Requirement
Start small and scale up when you see an opportunity. Save your money and start a business with it! The low capital requirement means that you can get started without worrying about other people investing in your idea or running off with your money. The cost of setting up a sandalwood plantation is not very high as the trees are grown from seeds that are cheap to purchase. It also takes little time to set them up, so they’re ready for harvesting quickly.
As the trees grow, they develop into beautiful aromatic trees which produce valuable wood used in making musical instruments, incense, and oils.
10 Reasons Why You Should Invest in Sandalwood Plots
4) Faster Returns on Investment
The return on investment for sandalwood plots is faster than for many other options. It can take as little as three years to see a profit from the plot, compared to a minimum of five years with most other ventures. Not only will your money grow more quickly, but you’ll also find that it grows in value over time. It’s been estimated that over the next 10 years sandalwood will be worth double
what it is today due to the rise of environmental regulations and interest in medicinal practices. Get in now while supplies are low and prices are high.
5) Low Crop Losses
There are no major insect or disease problems that affect sandalwood trees. As a result, you can expect to have higher crop yields than other trees. The average lifespan of sandalwood is 25-30 years and the yield per tree is approximately 6-8 tons. In comparison, the average lifespan of rubber trees is 15 years and the yield per tree is about 3 tons. If you were to compare two hectares of rubber with one hectare of sandalwood, then your annual income would be four times greater from sandalwood than from rubber. Furthermore, sandalwood produces three times more latex than rubber trees. The high demand for natural oil has pushed up prices significantly over the last decade and there’s little evidence of a decrease in demand anytime soon. The price for export quality logs ranges between $100 – $150/m3 while common quality logs range between $25 – $75/m3.
6) High Availability of Root Rot Resistant Plants
Finding the right place to plant sandalwood plants is one of the most important decisions when planting them. The perfect conditions are a warm soil temperature and high nutrient levels. You can also make sure that root rot-resistant plants are grown near less resistant ones
because sandalwoods are susceptible to root rot due to their shallow roots. Plants that thrive in similar conditions as sandalwoods include banana, coffee, macadamia nut, macqui nut, vanilla, chocolate, and almond.
7) High Rated Essential Oil Exports Value
Sandalwood is an essential oil that can be derived from the steam distillation of its wood and roots. Besides being used for therapeutic purposes, it also has other uses such as being an ingredient in many perfumes, colognes, antiseptics, herbal medicines, food flavors, and dental hygiene products. The worldwide demand for sandalwood is high because its natural supply is scarce. When you invest in a sandalwood plot, you are investing in a commodity with strong fundamentals like scarcity, quality, and price volatility. If you are looking to diversify your portfolio or
make extra money on the side by investing wisely, then this could be your best option.
8) Large Supply of Raw Materials for Essential Oils Manufacturers
The prevalence of sandalwood plants in India creates a large supply of raw materials for manufacturers of essential oils. Since India is the largest producer and exporter of sandalwood oil,
this resource can be exploited to cut out the middlemen when producing high-quality essential oils. Once you’ve planted your trees, they should last anywhere from three to five years before they need harvesting. This time frame can allow you enough time to find a way to finance your initial investment.
9) Proximity to International Markets (Japan, Taiwan, Korea, China, etc.)
One of the most important factors when investing in property is whether the location can be used for international trade. If you invest in a piece of land or building that will be close to an international market, then you’ll have the potential to sell your product to many other countries outside your own. For example,
if a person were to live or work close to an airport and was starting a new hotel or resort, they would want it as close as possible so travelers could stay at their business without feeling too inconvenienced.
10) Easy Transportation and Logistics Accessibility
When you invest in sandalwood plots, it is really easy to move heavy machinery. This means that you are able to get high-quality wood without straining your back or getting a hernia. Imagine how much work this will save you! So what are you waiting for?
Start planting today and make the most of every day with sandalwood trees.
By best real estate sandalwood company in Hyderabad
10 Reasons Why You Should Invest in Sandalwood Plots
