Words: Ashley Rigg
Published: 11th May 2011
*Portals struggle with green investment overload
Every week there seems to be another low money-down, tax free green investment being promoted by companies who used to rely solely on selling overseas property.
The logic is compelling. Green investment is a top topic, the entry prices are low and most importantly, commission is paid quickly.
The businesses that moved in first a few years ago, made serious money.
Today the picture is slightly different.
According to Caroline Roberts, director of
Buy Association, a lead generation company, it is becoming ever more difficult to generate leads for green investments due to the number of companies now competing for a finite pool of leads.
“We’ve been generating leads for forestry investments for eighteen months and recently the market is becoming ever more cluttered. We have one very well established client in this area who were among the first to sell this type of product and our priority is to look after them. Unfortunately, it is getting to the point where many database owners are reluctant to take forestry promotions as there are only a finite number of interested investors in the market”.
Other portals are also struggling to meet client lead expectations although I couldn’t find anyone else willing to talk on the record about the issue.
Information overload
One of the reason green investments are so attractive is due to carbon subsidies and credits which apply to a huge range of products.
Everyone you speak to is convinced their type of investment is the best. Bamboo, green oil, jatrophe, oud oil, biomass and solar plant investments are just a few of the choices that are overwhelming investors.
Faced with too much choice and little way of navigating it, the default for potential buyers is not to buy.
Credibility Problem
The bottom line is buyers are faced with too much choice both in terms of products and the companies promoting them.
Many of the companies promoting alternatives in the market have a credibility problem. Agents with strong brands and large databases of happy property investors are makign the most sales but selling cold is becoming increasingly difficult.
Third party endorsement like the one Property Frontiers have got from Yale University for
their new Bamboo investment is arguably one of the best ways around the problem. Another one is organising educational seminars to promote credibility.
However, the fact remains that the market is over-saturated and is becoming ever more so. For many agents entering the market late, the promise of a riches from the alternative investment market may remain just that: a promise!
Source: Global edge
User Comments
The low entry level (€20,000) forestry products such as teak, bamboo and agarwood strike me as a fad. I´ve looked into about half a dozen of them, some promoted by companies I respect, and I just don´t like the concept. My gut tells me to stay away.
I´m not surprised the leads from property databases for these are finite. No investor in their right mind would purchase on the back of an email received from a property agent promoting bamboo (or whatever) in some forest in the middle of nowhere in SE Asia.
I would hazard that while the majority of agents sending these emails are decent and honest, most haven´t gone within 1000 miles of where these places are located, never mind done full due diligence.
Colin Murphy,
Torcana Ltd