4 out of the box investments

20 Apr 2017

Are you looking for new and interesting ways to invest your money? These out of the box investments will add some variety to your portfolio. Just be aware that, like with any investment, there is an element of risk. Speak to your financial advisor before making any big decisions. 

Fine wine

Investment in fine wine has increased in popularity in recent years, with wines from Bordeaux and Burgundy considered the best bet.

There’s certainly something tempting about the idea of investing in a top-shelf drop. To many, it’s a win-win proposition: if you don’t see the financial returns you want, at least you have a bottle of fine wine to enjoy. And there is something comforting about being able to watch your beautifully bottled investment collect dust in your cellar.

But beware you may be popping that cork sooner than you’d like; investing in wine is considered risky and requires a lot of research. 

Coins

The key words here are rarity and quality. A 1911 halfpenny is worth around 80 cents today, while a 1923 halfpenny is worth over $1000. Why? Approximately 2.8 million 1911 halfpennies were minted in Australia. Only 15,000 1923 halfpennies were ever minted.

A good quality 1923 halfpenny (one that was never circulated, or had little circulation) can fetch over $10,000.

Again, coin collecting for investment requires a lot of research and patience. Appreciation typically doesn’t occur for five to ten years. But even if you don’t make a return, you’re sure to get a fascinating history lesson. 

Art

Investing in art can be hit-or-miss. Indigenous art in particular has taken a hit in recent years. But with a bit of research and a lot of luck, it’s still possible to see a good return. 

Buying pieces by an established artist carries fewer risks, but will require a greater financial outlay, while buying pieces by emerging artists generally costs less but is more speculative in nature.

The most important thing is to buy art you like and enjoy the journey. 

Classic cars

Classic cars have performed well in recent years, and could be a solid investment if you know what you’re doing. A classic car is typically 30 to 39 years old and considered a good prospect for restoration.

Again, the key is research. Some models have performed much better than others, with the classic Porsche fetching high returns throughout 2016.