The Dirtiest Luxury Investment You Should Make
Each week I bring you news about the most exciting real estate opportunities around the world… I share details about residential developments, commercial investments, or retirement/rental homes in spectacular locations.
Not this week.
To quote “Monty Python’s Flying Circus”:
“And now for something completely different…”
You may have seen a brief mention of this opportunity in Live and Invest Overseas mailings, but today I want to share the juicy tidbits you need to know about… drumroll please… truffles.
Considered a luxury culinary treat, truffles are rare forest-floor gems that look like little clumps of dirt. These underground spore fungi have such a potent aroma that forest animals dig them up solely by their distinctive odor. In kitchens around the world, chefs gingerly shave truffles to add a rich, earthy fragrance and flavor to spectacular gourmet dishes.
Truffle oil, which usually contains only a small bit of these heady beauties, is used sparingly to impart the amazing flavors only found in truffles. In fact, I’ll share a personal secret with you: One of my favorite treats is popcorn, misted with truffle oil, dusted with sea salt, and paired with champagne. Give it a try sometime. I think it’s amazing.
Why Should You Consider Truffles?
People invest in truffles for a multitude of reasons. This is why this truffle opportunity should be on your radar right now:
- By investing in truffles you contribute to our environment in an ethical, ecological, and sustainable way while also diversifying your portfolio with a secure European-based investment.
- Truffles are in increasingly high demand but are experiencing drastically low supply due to natural circumstances… which have been overcome by this producer.
- High demand and low supply translates into skyrocketing market prices and impressive appreciation.
- Our preferred development company is the world’s best producer in this exclusive industry, using cutting-edge science that places it leaps and bounds ahead of the competition.
- This opportunity provides an affordable, low-risk entry into the world’s most expensive luxury food market, with a minimum investment of only 33,039 pounds (US$42,773) for a half acre of trees.
- Unlike other agricultural investments that require long time frames before profits begin, this producer’s world-class science allows truffle forestry to start producing during the third winter season after inoculation.
- The very wealthy invest in forestry because they understand how to preserve their wealth for the long term. This investment paves the way for you to join the uber wealthy while improving the environment and realizing financial returns averaging 20% to 24% per year over its term.
Let’s dive further into these benefits so you can understand exactly why I believe truffles deserve your attention and serious consideration right now.
Diversify Into Forestry Land And A European Location
You’ve heard it many times: Don’t put all your eggs into one basket. At Overseas Property Alert our focus is real estate investment, but there are ways to diversify your real estate portfolio as well.
This truffle opportunity provides diversity of currency, location, and type of property, all with a high profit potential and a fully managed business plan. U.S. dollars are now accepted for the initial investment, but profits are earned in euros.
Environmentally Sound Plan
One of the major reasons truffles are so hot right now is because truffle production collapsed by 95% over the last century, and declined equally sharply from this low base in the past two decades. The Mediterranean basin is experiencing a 20-year drought; and because 80% of today’s truffles are wild, they are suffering under these conditions.
In recent years, Spain has been the top producer of truffles by volume with 34% of the world’s truffle production. In 2012, however, Spain’s truffle production was almost zero. Our friends are developing the prized French Périgord truffle variety, which traditionally commands a price up to double that of Spanish Périgord truffles.
These wizards extract natural spores from these premium truffles that they use to inoculate the seedling tree roots in a clean, scientific environment. The precise timing for this, to maximize spore uptake, has been reduced to a 36-hour window in the trees’ lifecycle. The seedlings spend up to 24 months in the carefully controlled nursery environment before being sent out into the world to create new, luscious truffles in the southern French countryside.
With the installation of high-tech humidity sensors coordinated with the latest automated irrigation systems, these plantations are not affected by the current drought. Also there’s no concern about future water shortages because the land supporting these trees hides a valuable secret 83 meters below the surface: A natural aquifer holding billions of liters of water can be tapped to ensure perfect moisture conditions for the trees that will bear majestic truffles in a few years’ time.
High Demand + Low Supply = Skyrocketing Profits
The current truffle demand averages between 1,000 and 2,000 tons per year. However the current supply available to meet this need is only 8 to 60 tons annually. As you can guess, this deficit is causing truffle prices to jump exponentially.
In the United States alone, demand has risen from US$4,000,000 to US$30,000,000 per year in the last decade. Of course, this demand is heavily capped by current supply. The price for French Périgord truffles had seen a steady annual rise from 700 to 1,300 euros per kilogram for two decades until 2012. After consecutive annual rises, it hit 1,750 euros per kilogram on wholesale markets last season. At today’s currency exchange, that converts to US$2,029 per kilogram.
While this is already great news, I have even better news to share with potential investors…
Forecasters are suggesting prices will rise further due to increasing demand worldwide, driven especially by the vast new wealthy middle classes of developing countries like China, India, Russia, and Brazil and their insatiable demands for all things rare and luxurious.
Accessible Entry Point With Remarkable Return Potential
Your minimum initial truffle purchase is 100 trees on half an acre of land. At this point your investment obligation starts at a little more than 33,000 pounds sterling, or about US$42,750. The maximum recommended investment term is 15 years because the French tax regime packs a hefty income tax hit in the 60%-to-80% range after 15 years.
The inoculated trees will start to produce viable truffles in year 3 and realize maximum crop potential in year 12. The IRR (Internal Rate of Return) is conservatively estimated at 20% while the ROI (Return on Investment) will be 545% over the 15-year term.
I use the words “conservatively estimated” because these figures are based upon a truffle sale price of 500 euros per kilogram, not the predicted highs the market is seeing now and anticipating in the future. In fact, several notable publications are calling for future truffle prices to hit US$6,000 per kilogram.
At year 15, when you sell your trees and avoid the crazy tax implications, not only is your sale a tax-free event in France, but you should also realize a substantial increase in the appreciated value of your property. It’s a win-win.
Only The Best Will Do
Although I was somewhat familiar with truffles before discovering this opportunity, this producer has taught me much more. First, there are only a few truffle growers in the world attempting to do what this producer is already successfully doing.
The company laboratory is located just outside Barcelona, and the tree plantation is found in southern France. As a result, this producer has the world’s best truffle-tree science and production company, with the world’s best growing location, offering the world’s best truffle husbandry and management team to ensure successful production.
Also, this company has done the necessary research and development to put it light-years ahead of the competition. Now is the time to invest in this high-value, luxury market that will only continue to expand.
To learn more and start your truffle investment, click here. Oh, and don’t forget to try my popcorn recipe and let me know what you think.