Considering investing in wine? You came to the right place. Here, we are going to explain about investing in wine
- Wine is a unique asset.
Fine wine matures and improves with age. Only a limited number of asset class wines are produced each year. When cases are bought, the supply of wine becomes rarer and demand for it increases.
- Seek to invest for at least 3 years
Wine is not typically fast turnaround investment. As wine matures it gets consumed and becomes rarer and more desirable on the market, which increases its value. This means that, the longer you hold on to a fine wine, the higher your return will be.
- Storage.
We strongly recommend you store your wine in an insured and temperature controlled facility. It’s very important that your cases are stored professionally and correctly, in the right conditions. Usually this is a bonded warehouse under your own name and account.
- The more you invest the higher return you’ll have.
They key is to invest in the right vintage wine in high demand. Although remember that it’s better to purchase few of the finest wines than a lot of average ones. Always research all the options and alternatively you can seek a professional advice.
- Tax benefits?
According to HMRC, wine is considered a wasting chattel, ‘whose predictable life does not exceed more than 50 years’. It’s free from Capital Gains and Inheritance Tax. However we would recommend speaking to a tax adviser who could explain all aspects of investing in wine.
- Be patient and never buy more than you can afford to lose.
Although wine investment has been considered a reliable asset even during economic turmoil, you should still approach it with a patience and caution. After all, wine is dependable on weather conditions and demand in the market. Never invest more than you can afford and be ready to wait a few years before you can sell your assets.
7 Seek advice
Wine investment can be a great a exciting avenue to raise finds however it can be a lot to take in at first.
If you are not a specialist,seek advice from a reputable merchant who could explain the risk and opportunities.He or she would certainly share their knowledge and experience and help you pick wine that has a high chance of a positive return.Always speak to an established merchant.Wine investment is still an unregulated territory and it can attrach fraudsters.Be careful and always check the credibilty of your wine merchant
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