When art becomes a better way to invest than real estate
Art: a better way to invest than real estate?
It is well known that real estate was once considered one of the best ways to invest your money. However, in recent years, art has become increasingly popular with investors. What explains this enthusiasm for art? Why are more and more people considering art a better way to invest than real estate? This is what we will explore in this article.
Why is art a good investment?
First of all, art is an alternative form of investment. This means that it is an option that does not depend on traditional financial markets. Art does not follow the same trends as the stock market or bonds, making it less risky. Additionally, art is rare and unique, making it more valuable over time.
Second, art is a tangible investment. Unlike stocks or investment funds, which can seem abstract and difficult to understand for novices, art is something you can see, touch and appreciate. This makes art investing more attractive to people looking to diversify their portfolio without taking on too much risk.
Finally, the art market is constantly evolving. New artists appear regularly, styles change and trends evolve. This means that art can offer high returns in the long term, even if the stock market is down.
Why is real estate no longer the best investment choice?
Real estate was once considered one of the best ways to invest your money. However, things have changed in recent years. First of all, real estate can be very expensive, making it an unattainable investment for many people. Additionally, real estate can be very risky. Prices can fluctuate depending on the state of the economy, which can make real estate investing very vulnerable.
Additionally, real estate is an illiquid asset. This means that if you need money quickly, it may be difficult to sell your property, especially if the real estate market is down. On the other hand, art can be sold quickly, even if the art market is down.
Finally, real estate often requires a large initial investment, while art can be purchased at much more affordable prices. This means that art can be a more accessible option for people looking to invest money without too much risk.
Real estate requires capital and constant cash flow in terms of maintenance to deal with unforeseen damage caused by time.
Real estate often requires a banking partnership whose investment threshold has deteriorated considerably since the health crisis.
Acquisition possibilities have been devalued, bringing on average the acquisition budget (before health crisis) which was from €500,000 to €320,000 to date.
How to invest in art?
If you're interested in art investing, here are some tips to help you get started:
Do your research: Before purchasing a work of art, find out about the artist, the style and the market in which you wish to invest.
Set a budget: Figure out how much you're willing to spend on a piece of art and stick to it.
Buy what you like: It's important to buy art that you like , as you may need to hold on to it for a while before selling it.
Make sure the work is authentic: Before purchasing a piece of art, make sure it is authentic and has been appraised by experts.
Store the Artwork Properly: It is important to store artwork properly to protect it from damage and degradation.
Conclusion
In summary, art has become a better way to invest than real estate for several reasons. Art is an alternative, tangible and constantly evolving form of investment. On the other hand, real estate can be expensive, risky and illiquid. If you are looking to invest money, art may be an interesting option to consider. However, it's important to do your research, set a budget, and purchase works that you love and that are authentic.
In a future post, I will discuss the satisfactions provided by the desire to collect works of art.
