Three Luxury Investments You May Want To Make In Life

The stock market is by far one of the most popular ways of investing but not everyone who buys stocks makes money in this unpredictable market. Other investors look to the bond market for investment opportunities while a large chunk of the rest bet on the ever-lucrative real estate market. However, very few ever consider opportunities in the luxury products market. So, what are some of the most interesting opportunities in this market that so often identifies with the rich? Here is a quick rundown.

Luxury Watches

Everyone is talking about smart watches with Apple (Nasdaq: AAPL) Watch and Samsung (SSNLF ) Gear being amongst the most popular brands. However, these are barely luxury watches. When we talk of luxury watches, the focus is on historical luxury brands like Rolex. Per reports, some Rolex watches have been doing well in terms of price appreciation when compared to the stock market. This explains why luxury watch accessories are still high in demand in the market as investors seek to augment their possessions by keeping them in perfect condition. Watch winder makers like Orbita, as well as, jewellers and other value additive companies have remained in business despite the influx of tech devices that target the same market.

In this not-so-fool-proof analysis published in 2014 by CRM Jewelers, it’s clear that given the unpredictable nature of the stock market, investing in luxury products like high-end watches cannot go so bad. For instance, the annual return for a 48-year analysis period indicated that the price of one Rolex watch nearly matched what the S&P 500 had to offer to investors in terms of return. And because only a few investors match the performance of the S&P 500, why not look at luxury watches and other products?

Supercars

Supercars offer a great option for those looking for alternative investment instruments. Many people buy supercars, but very few buy them as an investment vehicle. However, if you assess the way the value of supercars appreciates over time compared to the tricky nature of the stock market, it might make sense to want to own one in the future.

For instance, the price of Ferrari LaFerrari more than doubled between 2014 and 2015 thereby making it one of the most interesting luxury cars to invest in. And while the price might have been lower for the older models, the price of supercars has proven over the years that value comes with age.

Of course, there is a catch. Investors must keep their valued possessions in good conditions to keep their prices accelerating.

Holiday Homes

Whenever we talk of holiday homes the first thing that pops into mind is some exotic housing built next to a white beach on a land where the sun never sets. That’s hypothetical of a perfect holiday home. Nonetheless, the thing is that holiday homes aren’t necessarily viewed as luxurious possessions, but since very few can afford to own what would be the closest thing to the hypothetical holiday home, they can as well be classified as a luxury. Or does everyone need to own one?

Most people would rather rent to stay in one when the time for their holiday comes. And that’s how the creation of value comes about. Some people might classify this under real estate, but after Airbnb’s project began gaining traction, investing in holiday homes is now a different form of investment.

Just like a well-kept property, holiday homes gain value with time. Now, with a home where you can rent out some of the rooms while still living within the property, it means that you could get your investment money back without having to forego your holidays. As such, it makes even more sense to invest in a luxury holiday home as an alternative to the unpredictable stock market.

Conclusion

In summary, investing in luxury products may not be revered by most investors, but once you get the know-how on things, it’s hard not to see how accretive it can be depending on what you choose to invest in—be it a luxury watch, a supercar, or a holiday home, among others.

This can be determined by the level of income you have, because as discussed, luxury is never affordable to everyone.