It’s all very well making a generous income, and even better if it’s one that pays for a luxurious lifestyle filled with first-class flights, five-star holidays and all the champagne and caviar you can consume. But as well as spending, their hard-earned cash, those who are able to enjoy their lives long into retirement are the people who have taken the time to invest their fortunes wisely.
Investment is often considered risky, with stocks and shares offering some potential epic returns for those with nerves of steel – but if you’re not prepared to put your money on the line to quite such a degree then there are plenty of other safer ways to invest your money. Best of all, you can do so while splashing out on some of the luxury items you no doubt already love to buy – and there are several items you can treat yourself to that will appreciate handsomely in value over time.
From luxury watches and designer handbags to extravagant jewellery, investing doesn’t have to be boring, and the items you choose to spend your money on could fetch you a small fortune in years to come. Not only that, but they will also make for great family heirlooms that will stand the test of time with ease, and can be passed down through the generations well into the future.
So, if you’re looking for an exciting way to invest your money that comes with maximum enjoyment and minimum risk, then look no further – because these are the items to add to your list.
A luxury watch
A luxury designer watch is a status symbol amongst the wealthy, and brands such as Rolex and Tag Heuer have become synonymous with style, sophistication and success. But they don’t just look incredible on your arm, and expanding your watch collection could be one of the cleverest moves you make from an investment perspective, fetching you a generous amount in years to come should you choose to sell your watch, or bestowing an impressive inheritance on your offspring after you’re gone.
Rolex has long been the go-to brand amongst the rich and famous, and with good reason. A Rolex Daytona was once bought for £75,000 – a princely sum in itself – only to be sold at auction just a year later for £237,500. One of the smartest purchases the owner ever made, stories like these arise often – and tracking down vintage and limited editions are an excellent way to ensure maximum return on investment.
A designer handbag
A girl can never have too many handbags, and this is especially true if you’re buying them as an investment for the future. Even so, the old adage of ‘quality over quantity’ still applies, and choosing your purchases carefully could result in a tidy fortune in the future.
Brands such as Chanel, Prada, Balenciaga and Hèrmes have become famous for their impeccably made handbags, with celebrities and Instagram influencers regularly seen sporting the latest ‘it’ model and sparking a global trend. In doing so, they drive up demand for the bags, which are often made only in small numbers. The result? A savvy purchase could quickly become worth far more should the right person be seen with it, so cottoning onto trends early will serve you well if you’re looking to turn a tidy profit.
To put things into perspective, the Hèrmes Birkin handbag has been shown to outperform the price of gold in the last 35 years when it comes to return on investment, with its value increasing by 500 percent. In fact, one sold at auction for an eye-watering $380,000 in recent years – so if you think that a handbag isn’t the best investment of your money, then think again.
Add to that the fact that it’s the perfect excuse to expand your handbag collection and thus your range of options for that next social occasion or event, and it’s a win win.
A great investment for wine enthusiasts, the only downside is that you’ll have to hold onto them to reap the long-term benefits – so if you prefer to drink them, then you might find this one a little tricky. Even so, there’s no reason you can’t do both – the key is knowing which ones to leave in the cellar for the long-term, and which ones to open on a Friday night.
Some of the finest vintages have fetched a handsome return, and the older and more refined, the better. The best performing wines at auction have seen the gavel drop at around 150 per cent of the original price, so if you have the funds to stock your cellar to the brim, then you could be sitting on a goldmine later down the line.
It is often said that cars depreciate hugely the moment they are driven out of the showroom – but while this is true amongst new models, the world of classic cars is an entirely different one. In fact, buying a classic car can provide a better long-term return than art, property and in some cases, even gold. Older Ferraris and Lamborghinis, for example, have steadily risen in value over the years, and have become highly sought-after amongst wealthy classic car collectors. Limited edition and imported cars can often fetch an even greater sum.
Of course, the level of financial gain you stand to make depends largely on choosing the right model – as some have greater potential than others. Consulting the annual Bull Market report, compiled by Hagerty, is a great place to start – while classic car shows can be a great place to locate your ride of choice. Look for original cars that are in great mechanical shape and have flawless paintwork – but be sure to research your options before you choose.
The bottom line
Investing in luxury items is a great way to secure your cash and set yourself up for some excellent returns on investment in the future – all while having fun doing so. So, if you’re looking to splash out in 2021, then these are your best options, and might just be the best purchases you ever make.