In contrast to stocks, bonds, and real estate, investment in art and collectables is known as making an alternative investment. While art is typically included in the collectable category, it will be used as a separate item for the purposes of this article. While investment in collectables and art can be beneficial, there are certain considerations that need to be made before purchasing these assets. This article will provide information on the different advantages and risks of investing in art.
What Are The Different Benefits To Investing In Art?
1. Tax Benefits
While it is not common to see the terms “tax benefit” and “collectables” in the same sentence, it is possible to receive tax benefits for art purchases if you fall into a particular tax bracket. If you are positioned in a tax bracket above 28%, the maximum amount you will pay on any sale of art will remain at 28%. Of course, this is still a high percentage; therefore the term “tax benefit” remains relative to a person’s budget and financial situation.
K Partners a local accountant in South Melbourne offers a personalised approach to manage your tax affairs and helps you manage every aspect of your personal and business accounting needs.
In recent years, art and collectables were in an uptrend with record prices becoming more standardized. Of course, a change in investment is constantly changing this will change; however, it will return to a trend again. This means that hanging onto an artwork can be a long-term benefit if you are willing for trends to turn.
3. No Sensitivity To Interest Rate Fluctuations
The majority of investments are sensitive to interest rates, but art and collectables are not – at least not directly. If the interest rate increases, the investment gain will decline; thereby leading to a reduction in disposable income levels. On the other hand, a rising interest rate does present with other investment options meaning there will always be a buyer for artworks.
If you are not sure if an artwork investment is at good value, there are independent financial advisors that can help.
4. Alternative Usage
If you purchase a painting, it is not necessary to keep it as an investment option locked away in a bank; however, you can enjoy the art as an alternative item. When purchasing bonds or stocks it is not possible to use them for entertainment purposes, but art and collectables can be displayed on a living room wall and enjoyed.
Here’s an interesting video regarding on investing in collectables:
What Are The Risks To Investing In Art?
1. Experience Is Costly
If you want to have a good experience investing in art and collectables, then you will need to lose money initially. The best experience to learn how to buy and sell collectables is trial and error so be prepared to lose money in the beginning.
2. Possible Asset Destruction
Unlike stocks and bonds, collectables are at risk of damage when there is a fire or flood in the home. If the art is damaged, the value of the collectable reduces immediately to zero or at least 50% less than what the purchase amount. To ensure you do not suffer from asset destruction, it is recommended that you plan accordingly. Learn more about K Partners here.
As can be seen, buying and selling art can be an enjoyable experience; however, there are risks as well as benefits. Using the information above, you can determine if this asset purchasing is the best act for your needs. For additional information about investments, you can talk to financial experts for accounting tips.
In today’s world of the Internet and social media, the plight of the starving artist is a self-fulfilling prophecy. It really is because of their own doing. Some people are attached to the persona and archetype of the starving artists, they even make it a part of their personality and a sort of mask that they put on. But the truth is that with the marketing techniques that are available for social media and the Internet, there’s no reason why you can’t make your art popular and why you can’t sell it.
One of the most beneficial things you can do, even as an artist, is to go to business school instead of art school. That may sound silly at first but if you want to be a professional artist of any kind, you need to understand some basic principles of Sales and Marketing. An artist who is not able to get distribution for his art will not be known or recognized. There are some cases where distribution just falls in the lap of an artist when the get discovered by someone looking for talent. But do you really want to rely on luck?
If you really want to learn how to sell art, how to get it into galleries, how to get attention, how to get your work in front of the right audience, you need to learn marketing. And one of the most efficient ways to reach your audience these days is online. So get on to social media and start learning how to engage people and keep their attention. Or get your website professionally established and start using strategies to get targeted traffic to it. If you are on a budget and can’t afford, consider going to free or affordable SEO seminars arranged by Abrar Patel – A.P. Web Solutions, that you can get the information from and implement yourself!
You need to learn how to use social media to get attention to your work. You need to make it a production and a part of people’s lives. Your art needs to be on Instagram, Twitter, and Facebook. If you are expressive and love to communicate with your audience frequently, then consider YouTube because Video is becoming more and more popular and it will be the most effective form of digital marketing in the years to come! You can also consult with A.P. Web Solutions about your Video Marketing needs. Click here for information about their marketing services. You need to take all of these resources and work them to the max. Don’t pay attention to what other starving artists are doing on the Internet, make your own path, carve your own lane and find an audience.
People really love art, learn how to sell it to them. Learn how to be more like McDonald’s than a posh mom-and-pop bakery. That might mean that instead of selling a canvas for $300 with your art on it, you might sell a photo for only $30 and you might sell 100 of those. One reason why artists stay hungry is because they overcharge for things that people aren’t interested in. A lot of people can’t find value in a $300 painting but they can find value in a $30 one. But this also does not mean that you have to keep doing this. It may just be a stepping stone for you as you gain financial independence so you can focus on the things you really want to do and the art you really want to create.
So you already know how to do art but now it is the time to learn how to do business. How to do business on the Internet. That means learning Internet marketing skills, putting yourself out on social media and forcing your way in front of people. It might mean buying ads and running a page on Facebook. It might mean becoming a personality on social media and creating tons of graphics and memes and things that people can follow just so that you can later start sharing your art. Think strategy and think business.
If you live in Australia or if you are planning to visit, then one of the things you should definitely be checking out are some of the biggest art galleries in the country. Most of the good ones are located in the major cities so you are likely going to be there anyway.
Cities To Visit
There is no shortage of art galleries in Australia. There are many well-known art galleries such as Arc One Gallery in Melbourne. Art enthusiasts have a lot to look forward to when they visit these art galleries in Australia. Now, of course, you will need to look at their website and do a bit of research because art is a very wide-ranged industry and depending on what kind of art you like and enjoy, you might be attracted to different galleries or displays. Generally, they also have a list of artists whose works are displayed in the Gallery, so you can also look into those if you follow someone’s work particularly.
Underwater Gallery – Great Barrier Reef
This is certainly one of the most unique galleries in Australia, probably one of its kind in the world in fact. The Great Barrier Reef is one of nature’s most beautiful wonders in the world. And after several years of back and forth, they finally got their own underwater art gallery! You will need to travel to Cairns to see it but it is very much worth the trip.
National Gallery of Victoria
One of the most well-known art galleries in Australia is the National Gallery of Victoria. They have a very informative website where art enthusiasts can explore the collections currently on display in the gallery. The website also lists information about how to get to the gallery and various facilities available in the gallery along with their opening and closing hours as well as various other features available there. Similarly, all the major art galleries have their own websites where art enthusiasts can find information about their visiting hours as well as the collections on display and various other important things.
In addition to the websites of various galleries, you can also find a lot of information about the famous art galleries by visiting the website of Tourism Australia. This website has a lot of information on Australian art as well as well known Australian artists along with major art prizes. There are also a number of other tourist websites dedicated to major cities in Australia where they can find a lot of information on art galleries, art and culture and other such things related to art.
Linton & Kay
If you would like to see the work of some local artists and do not mind traveling to the West Coast of Australia, then you should consider Linton & Kay, a small gallery in Perth. They have a range of exhibitions scheduled for throughout the year.
There are a lot of choices available within Australia and of course, even more choice if you travel internationally to see some stunning artwork, especially in Europe! But at the end of the day, it is an experience that is subjective and depends on how well you understand the work of the artist and how much you enjoy the way they express it!