Investment pleasure, but subject to the effects of fashion, art presents a real risk. Here is some advice for investing in art wisely. A work of art is a tangible investment with a palpable heritage value. In this article, you will learn all the basics to invest in art by the best abstract artists with pleasure by reconciling the possibilities of profitability.
Invest In Art, For Whom?
It is often thought that investing in art is reserved for the most comfortable incomes. This is to forget that this placement can begin at antique shops. In specialized galleries and public auction rooms, you will already find works to value from 200 or 300 dollars.
That said, in the international art market, you have to be able to invest in works priced between $ 50,000 and $ 100,000 to hope to reap the benefits. Prior to any placement, it will be essential to check the artist's rating and the current modes. In this way, you will avoid a fashionable investment, which offers more dangers of speculation.
What Does Investment In Art Cover?
Invest in art; it can be:
- Plastic artworks, sculptures and old paintings
- Art drawings
- Precious books
- Postage stamps
How Is The Art Market Evolving?
Art is considered a haven because it is less subject to the vagaries of the financial markets. That said, it evolves according to the logic of its own and the risk of loss is real. Its performance is random, especially for contemporary works. Only old paintings and high-rated works are a safe bet.
It is difficult to state generalities, but it is often assumed that it is necessary to keep a work of art between 8 and 12 to expect the profitability of 7% per year. Such a return can only be envisaged from a minimum investment of $ 200,000.
The Question of Taxation
At the time of purchase, a work of art is subject to VAT at the normal rate of 20%, unless you buy it directly from the artist. VAT amounts to only 5.5%. Similarly, imports are exempt from tax duties. In your heritage, art, antiquity and collections are not combined in the calculation of the ISF. On resale, if you own the work for 12 years minimum and if the price does not exceed 5000 $, no tax will be levied. If it exceeds 5000 $, it is a flat tax of 6.5% of the price that applies.6. Conclusion on investing in art
Investing in art can not only make you happy, but you will also gain an added value on resale. This investment, which can be considered a haven, is a great way to diversify your portfolio. So put only a small part of your financial wealth, at most 10%.
To ensure a good return, you must choose your investment strategy according to your objectives and your budget. But you must also pay attention to the choice of work. Other precautions are also to be taken into accounts such as the verification of the traceability of the property and the insurance of the full property.