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Classic cars far outperform other luxury investments, reports Steve Colquhoun.
Looking to splurge on an emotional investment that will quadruple your money in 10 years? Forget watches, stamp collections or even fine art. Buy a classic car.
Not just any old banger will do, though. According to the annual Knight Frank Wealth Report released this week, a ''truly investment grade car'' bought in 2002 would have appreciated by up to 395 per cent over the past 10 years.
That makes cars easily the best ''passion'' investment you can make, well and truly outperforming popular luxury items such as fine art (199 per cent), jewellery (140 per cent) and watches (76 per cent).
The most sought-after cars tend to be Ferraris, with a 1957 Ferrari 250 Testa Rossa holding the world record of $US16.39 million ($A16.02 million). Classic Aston Martins, Mercedes-Benzes and some pre-war Bugattis, Alfa Romeos and Rolls-Royces can also fetch prices in the millions.
Knight Frank's Luxury Investment Index assessed nine different forms of ''collectables'' over the past decade and found that cars outperformed coin collections (248 per cent) and stamp collections (216 per cent) for return on the initial investment.
The results are at odds with the popularity of each class of collectables, with Knight Frank finding that fine art was the most-collected commodity, ahead of watches and fine wine. Classic cars were the fifth most popular collectable, although the index forecasts they are growing in popularity with ''HNWIs'' - the high net-worth individuals who are the focus of its study.
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