When thinking of alternative investment schemes to place your savings into, one often forgotten form of investment is that of fine art, antiques, and collectables. Whilst it can seem daunting to forego traditional methods of investment, there can be notable benefits to going off the beaten track and trying your hand at investing in an exciting and unique way.
When compared with other forms of investment, trying your hand at art investment has the chance of providing high upside potential. There are plenty of stories of people finding old items in their attic and receiving a whopping figure for their collectables. Whilst this situation may be rare, there are still plenty of other benefits to investing in the art industry. As such, here are just a few reasons you should consider art and collectable investment.
1) Beat the inflation rate
Many forms of investment struggle to keep up with the rate of inflation, let alone surpass it. However, fine art and antiques are a method by which you can potentially gain value on your investments above the rate of inflation.
2) Potential tax benefit
Whilst it may seem strange to think you could possibly gain a tax benefit from alternative investment sources, there is the potential to do so depending on which tax bracket you fall into. The maximum tax rate an individual pays on the sale of art, antiques or collectables is 28%, and therefore, if you fall into a tax bracket that is above 28%, you have the potential to gain a tax benefit.
3) Avoid interest rate fluctuations
Almost all other forms of investment are subject to the interest rate. As such, when interest rates are low, as they have been for the last few years, traditional forms of investment become less appealing. However, investments in art and collectables are not directly affected by the interest rate, and can provide an attractive alternative for your investment portfolio.
4) Investments you can enjoy
Investments in fine art and antiques provide a unique opportunity compared to other forms of investment; you can use and enjoy your money whilst it’s still tied up. Hanging a painting on the wall can act not only as an investment but an investment that you can use and enjoy on a daily basis.