Note that finance applications must be received by 26th June 2006

 

The Rewards Group offers investors a unique opportunity to participate in a boutique Sandalwood investment in the Western Australian wheatbelt. Investors will receive immediate and ongoing tax benefits plus excellent projected returns upon harvest of the sandalwood trees at age 5,10,14 and 18 years. The Project has strong investment fundamentals as well as providing environmental benefits including positive impacts on salinity and greenhouse gas problems.

 

Sandalwood has been highly prized and intimately linked to Asian cultures for thousands of years and is used in a variety of ways. The wood is powdered for the manufacture of joss sticks, which are burned as incense during Hindu and Buddhist religious ceremonies.

 

Sandalwood oil extracted from the wood and root is used for high quality perfumes, soaps and creams because of its unique fragrance and fixative properties. The extremely dense and close-grained fibre of the wood provides great appeal for the creation of intricate woodcarvings and furniture.

Many Asian countries, without native stands of sandalwood, are wholly dependent on international supply. Western Australia has exported Sandalwood for over 150 years with significant trade with Taiwan and China.

 

The application price is $5,000 per woodlot is payable. There is no annual outlay for ongoing fees, rather all rent, maintenance and administration is covered by a 20% charge on the harvest proceeds.

 

Investment Payment Options

You are able to invest in this project using cash, or you can access the 100% finance option from the Rewards Group. The various options are shown in the table below (note monthly repayments are based on a per woodlot investment basis):

 

 

 

Land Trust Investment

Investors can also purchase units in the land trust for $1,400 (0.5 hectare). The Land Trust will receive rent equal to 12.10% (inclusive of GST) of the total net harvest proceeds of each harvest. After deducting GST and any other applicable costs or expenses the Responsible Entity will distribute the balance of this income to Unitholders. After the final harvest, it is intended that the Land Trust will sell or otherwise realise the land value for distribution to all Unitholders.

 

 

Features

Up to 8% cash rebate (see below)

$5,000 per woodlot or any multiple of $5,000

Harvest in years 7, 12, 16 and 18 (estimated years)

100% tax deduction for investment amount (in woodlots)

Tax deduction for interest expense if finance option taken

No outlay for ongoing fees, these are paid at harvest

 

Commissions & Cash Rebates

With tax effective investments we will receive a commission that is not paid from your investment amount. With the Rewards Project this is 5% commission and 5% marketing allowance. 100% of the commission is rebated, plus part of the marketing allowance depending upon the amount invest as shown in the table below:

 

 

The cash rebate is paid to you as soon as we receive our commission payment.

 

 

Further Information

For further information please download any of the following files or right click on the button and 'save target as' to download to your computer (all files are in *pdf format):

 

 

 

 

 

IMPORTANT : This information has been prepared without taking into account your investment objectives, financial situation and particular needs. National Financial Solutions Pty Ltd (the authorising licensee) makes no recommendations as to the merits of any investment opportunity referred to on this site or via email correspondence. All indications of performance returns are historical and can not be relied upon as an indicator for future performance. Any investment decision in the products listed is entirely yours. NFS bears no responsibility for the appropriateness of the investment to your circumstances.  NFS will not be held responsible for the performance or security of any investment going forward. Furthermore NFS recommends that you seek advice from an independent person as to the appropriateness of any investment that is placed through our service.

With all of these types of investments you should seek independent taxation advice to determine whether this investment suits your circumstances. Please read the important information section.

By listing this investment on our site we are by no means endorsing this investment, manager or product.

* IRR upper range from independent research report