Items of luxury are often coveted, and largely considered as reserved for a particular kind of person. As well, given the still-developing cost-of-living crisis that has had real impacts on household budgets up and down the country, it is understandable that buying up luxury items might not be a priority for many people.
Indeed, it might seem even counterintuitive to put money towards luxuries when more pressing costs are emerging. However, luxury items are not just items for the sake of luxury; they are also investments, with their own positive impacts on your medium- and long-term finances. But how?
Why Invest in Luxury Items?
For one, luxury items are, by and large, an excellent store of value. Depending on the item or product you buy, you can be sure to at least retain the value you placed in it for decades to come – and have an asset worth selling if ever needs be. In certain circumstances, the item you buy may even appreciate in value – returning you significantly more than your initial investment, and outpacing other conventional saving vehicles like ISAs.
‘Luxury’ does not describe a class of item, but rather a quality. This means that luxury items are not unilaterally expensive, and that luxury is not necessarily described by cash value alone. There are luxury items available for every price point, making the finer things accessible to almost everyone!
Which brings us to a final point: luxury items should not be reserved for ‘best’. Given the affordable nature of many luxuries, the mental health benefits they can provide as quality goods that supersede other alternatives might be considered more than worth the slightly higher initial cost. You are allowed to enjoy things, as well as invest in them! But what things should you think about investing in?
Watches are a quintessential luxury item, and popular collectible to boot. There are myriad high-quality manufacturers of timeless timepieces, and many designs that stand the test of time not just in relation to aesthetics, but also value. It is a hobby for many, and a relatively easy one to enter as well; second-hand watches by familiar brands like Rolex are widely available, and retain their value well even after initial purchase.
Returning to wearable items, trainers have fast become a commodity of sorts. Designer brands continue to produce limited edition designs and runs of both classic and cutting-edge trainers, inspiring a young but potent market for trading and investment.
WWhiskies and Wines
Consumable products can also be luxury items that store and appreciate value, though you cannot quite have your cake and eat it as with watches and other such wearables. Wines and whiskies both are notorious for getting better with age, though this does depend to some degree on the maker. Whiskies and wines both also look amazing on the shelf in your home, whether as an invitation to share with friends or as a purely aesthetic addition with monetary value.