Should I Invest in Art?

There are lots of different things that we could potentially invest our money in and art is just one of them. If it is something that you are considering investing in, then there are quite a few things that you need to think about first. It is well worth taking time to think first as rushing in to a decision like this, could be something that you will regret.

Picking a Piece

To start with you have to decide on which piece of art you are going to pick. This can be pretty difficult. If you buy something form a new artist, there is a chance that they may get really famous and their early pieces could become valuable but that is a risk. However, there is an equal risk of buying a painting of a popular artist, which is likely to be more expensive and still may go down in value rather than going up. It is not an easy decision to make and even after a lot of research. It can be very difficult to predict what might happen with regards to trends in the market.

Storage Costs

Once you have a painting you will need to store it. You will need to think about where it will go and how it will be protected. You may want to hang it in your home and if this is the case then you may need to fit a burglar alarm to the home so that it is protected form burglars and this will cost money as you will need to have it serviced each year. If you plan on putting it in storage, you will need to find somewhere that has the right temperatures and humidity so that the painting stays in good condition. You will also want to check their protection from thieves and for fire as well.


You will also have to pay to insure the paintings. This will be either a monthly or yearly cost that you will have to pay out. Insurance tends to be high as well because insurance companies will not only cover you for the value of the paintings but also for the cost of finding replacements for them should they be lost. This means that the insurance value tends to be 3x the auction value.

So, if you are considering investing in art you will need to think about it hard. Not only will you be taking a risk when you are choosing a picture to invest in, you will also need to think about storing it and insuring it. There will be these ongoing costs that you will have to find the money to pay for. You will also need to think about the costs that you will have when you sell the art. If you auction it, the auctioneer will take a cut and you may have to pay capital gains tax if the value does go up a lot.

Many people advise those that are looking to invest in art to buy things that they like themselves. This means that they can hang it I their home and enjoy it and they will be able to get value from it that way. Then if they find that they cannot make money from it, either because it has not gone up in value or it has gone down in value, they will still feel that the purchase was worthwhile, because they have been able to get a lot of pleasure from it themselves. It is so hard to predict what people might like or dislike even a few years into the future and tastes change and people go off things and then might like is again in the future and so it can be very tricky indeed.

Is it Good to Invest in Property?

There are many different places to invest money but there are a lot of people that will use their money to invest in property. This is something which has started relatively recently due to the stock market not performing quite as well and because of a trust in banks, pensions and other types of investments. There are pros and cons to investing in property though and it is good to have an understanding of these before going ahead with it.


With a property there are two ways to make money from it. Most properties will increase in value over the years just due to the fact that house prices tend to rise with inflation. Although, this may not always happen, it does generally. If you are unlikely enough to pick a house in area that becomes undesirable, a style of house that falls out of trend or one that is in disrepair, then you could find that the value will go down. However, most houses will go up in value and this means that you are likely to be able to make some money when you sell.

You may also be able to rent out the property. You could get in a regular tenant to get monthly rental or let it as a holiday home and you have more seasonal guests but the rent that you can charge tends to be higher. This will provide you with an income stream as well so it means that you will have money to cover the costs of home ownership but you will have to pay out to keep it maintained inside.


There are always costs of owning a home, whether you live in it, leave it empty or rent it out. These include maintaining it inside and out, insurance, council tax and if you rent it out, you will also have to have safety checks done on it and pay for it to be decorated. You may also have letting agent fees if you do go through an agent. It may also be the case that you will have to pay for it to be modernized or updated every so often as well. The amount of maintenance will probably depend on the age of the house. An older property may need more work doing to it.

Buying & Selling

When you buy a property there will be costs, such as stamp duty and solicitors fees. You may also have to do some decorating or perhaps even more expensive work to update it. Then if you are renting it out, you will need inspections and safety checks to be done and pay for insurance, before you can pay a letting agency to find you a tenant.

When you sell a house, you will have to pay an estate agent and solicitor. You will also have to pay capital gains tax on the money that you have made on the increase in the value of the home, if it is more than the threshold for the tax.

So, as you can see, you will need to think about the costs and the potential returns on a property in order to decide whether you will be able to manage financially with a property. It can be hard work as well, as you will have to deal with tenants and any emergencies that they have and if the property is empty for a while, you will have no rent coming in. So it can be quite a gamble and it can be well worth talking to people with experience of being landlords to find out a lot more before you go ahead with this sort of investment.