Do you reckon it is safer to invest in Art or property ?

[OnEdge]

We are renting, and we rent our own house. I was thinking of selling our own house and buying a more easy to rent one. My husband recently bought/invested in a beautiful painting, and it has made me think, would it be better to invest to profit from my house in Art than in another property.

pfffff

both risky.

I'd put my money in ISA's and savings accounts until the economy recovers.

Art fashion (and prices)is very changeable.

The art market is even more volatile than the property market.

I was talking to a property fund manager the other day. He said given the choice of investing £70m in a Picasso or a super-prime London property he thought most people would go for the flat and get a print of the painting.

You're probably not talking about £70m but I think the same principle applies. At the end of the day if the bottom falls out of the property market you can still live in a house until it picks up. Ok, so you can still look at a picture too, but I think the house is more useful.

LadyWellian

I think your property manager was joking. Serious art investor will not be just buying and hanging his/hers 70m Picasso on the wall in his flat. The painting will be put into the faults or loaned to a museum long term. If it is displayed by the investor at home there are massive consideration regarding tax/insurance/conditions necessary for storage. It is a massive expense, sometimes met by allowing painting to be taken for short term exhibitions. People who appreciate Picasso and capable to folk out 70m to have that particular painting (so not driven primarily by investment decision) will not be satisfied with a print.

Unless the OP is prepared to put some significant amount into single piece of art with proven track record or has particularly fantastic eye for that "lost" masterpiece or must-have of the future I would stay well clear of it. There are plenty of "advisors" who specialize in art but I do question their track record and loyalties to new investors or investors with limited funds.

I would really stay well away.

faults = vaults of course (fgs!! )

We have always done really well with Art mainly buy British Contemporary Art and have always made good money on the paintings.

croxlea - just out of genuine interest, would you call what you do investing or was that lucky? what rate of return did you make? how much do you normally invest into a piece?

hope it is not too intrusive

I am not talking huge sums here I have bought pieces for as little as £900 and sold in a couple of years for £3000 some are much more expensive and may earn greater amounts sometimes £100,000 a year earnt through buying prudently, it's risk reward.

I don't however buy thinking it must make money, buy your Art because you like it.

The housing market is tough at the moment, it's a difficult one I'm not sure that you are going to see the returns on property that we once did!

Maybe just try with a couple of smaller pieces and see how it goes, you don't have to jump in with huge amounts straight away.

Good luck with whatever you try.

Wouldn't trust a bank with my money, never have they always shaft you one way or another. Cash is still King.

Croxlea Where do you find the art to buy?

Try googling 'Barclays Gilt Equity Study' This gives returns for different asset classes over many decades. Decide for yourself what's best! Remember diversity is key!