Collect Paintings for Retirement
How to Invest in Art and Make Money for Your Pension Fund
Although most small investors avoid it, putting a small amount of pension savings into paintings can help you create a balanced portfolio. After all, the financial events of 2008 demonstrate that keeping investments in the bank is not necessarily a safe option.
As long as investors only spend as much as they can afford to lose, realise they are tying up their money for the long haul, and appreciate their art treasure may become unfashionable over time, buying paintings can prove to be a fun and profitable venture.
Here are eight tips to help the rookie art investor.
Only Buy Original Art. Limited edition prints may be a cheaper entry into the art world, but the chances that you are simply buying an expensive poster are high.
Make Sure You Buy Something You Like. You have to live with the art you buy, so why not own something you enjoy looking at.
Don’t Buy Cheap. A cheap new painting is likely to only develop into a cheap old painting, whereas a more expensive painting has a better chance to at least hold its value and perhaps appreciate in value. Be willing to spend at least £500 ($1000) on each individual purchase.
Look to Buy Something that Many People Will Like. However, make sure your painting is good quality and stands out from the crowd. You might like the idea of owing a preserved rat pinned to a board, but don’t forget that when it comes to selling your art, you will have a limited audience. Likewise, art that looks very fashionable today may date by the time you want to sell it. Choose a soothing and fairly traditional painting, but with something of a twist to make it a little different from the ordinary.
Don’t Rush to Buy Your Art. You only have so much wall space and a finite amount of money. Take a look around the galleries, see what you can get for your money, and only buy something that finally catches your eye. It can take years to build up a small but perfectly formed collection.
Remember that Many Artists Have Their Own Websites. The paintings could be cheaper if you buy from the artist direct. Use galleries and art exhibitions to discover the artists you like, but remember that galleries have a large mark up on their prices.
Make Sure You Place Your Painting Carefully. If you are keeping your painting to sell in the distant future when you retire, make sure you hang it in a good place away from direct sunlight or heating.
Don’t Forget to Increase Your Household Insurance. Also don't forget to itemise your treasures. It needn’t cost more than a few pounds or dollars each year to make sure your collection is safe from theft or fire.
Traditional Art With a Twist May Give A Profit
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