Whether you are a thoroughly experienced investor or have only just started out on your investment journey, you are likely aware of various seemingly reliable forms of investment – such as shares, bonds or cash. However, you could be surprised by how much you can reap from other types of investment.
You might spot many investments being commonly referred to as “alternative investments”, which is a catch-all term for opportunities which don’t fall into mainstream categories including those specified above. There are lots of alternative avenues that you can pursue – including those as obscure as parking spaces and film scores. However, we know that the huge choice of opportunities could leave you indecisive, so we will single out some that we reckon warrant special attention.
Do you enjoy sipping from a glass of fine wine now and again? Whether you do or not, there’s great news for your investment hopes: a lot of other people around the world do, too. Or, to be perhaps more to the point, more people than you probably currently realise. During the last two decades, fine wine has actually been among the best-performing asset classes.
Furthermore, demand – particularly for top-end red wine – from China has led prices to continue rising. Nonetheless, the future persistence of this trend is not guaranteed. Indeed, experts have warned that no person should invest in wine unless losing a significant proportion of their cash – or having to drink their losses – is something that they can genuinely afford.
There’s a huge variety of art around, which is why you should be careful which particular artworks you buy if you want to embark on serious investment in art. Long term research has shown that prices for art generally rise between 1% and 5% yearly. However, the value of the art you buy personally could potentially either double overnight or shrink to a small fraction of what you originally paid. Yes, the range of price changes for art really can be that broad!
Therefore, it’s a good idea to – as generally recommended by experts – only purchase art that you personally like looking at. That way, if the market goes against you, you still have a nice piece of art that you could just keep in your home until demand for it rises in your favour.
Investing in antique furniture is, in many ways, like investing in art. For a start, how much money you can get from furniture can depend on what exact type of furniture it is. You should consider, for example, that pieces from the early and mid twentieth century have increased in price by 29% over the last ten years, while furniture older than that has become unfashionable.
Therefore, as with art investment, it’s wise to buy items that you would like to see in your own home. That way, if the furniture doesn’t attract sufficient interest from other people, as can be a persistent possibility in this rather volatile market, you can simply keep it for yourself.
If you’ve got a collection of anything, it’s especially likely to be stamps. Amassing stamps has become an often lucrative hobby, too. Stamp collections have rose in value by 34% during the last five years and 195% in the past ten. However, what stamps do you personally own and could sell?
We ask because, to make good money out of stamps, you should make sure that any stamps you are willing to sell are very rare, in perfect condition, and provably authentic. Also, it’s advised that you hold such stamps for at least a decade in order to counter this market’s volatility. Taking all of this into account, stamp investment isn’t something that an amateur can easily excel in.
As the property investment consultants at Flambard Williams would attest, property investment can lead to impressive returns. House prices, on average, double every ten years. If that’s not staggering enough, keep in mind that the average house price grew by 370% between 1993 and January 2016!
However, there are also pitfalls to watch out for when on a property investment mission – and that’s one reason why expert advice and guidance can really help you along the way. Flambard Williams offers not only such assistance, but also a broad range of properties for you to choose from for your first serious venture into this kind of investment. If this sufficiently interests you, we wish you luck with what could turn out to be a very exciting new chapter in your life.