Should I invest in handbags or property?

A handbag that’s ten years old and in”grade-two state” last month sold in London for $289,338 (#162,500).  So, which is very likely to be the more rewarding investment? Judging by the debatable gauge of past market performance, a situation may be made for the purse.

While that specific diamond-encrusted Hermes Himalaya Birkin now holds the name of most-expensive handbag sold in Europe, auction houses around the globe are frequently selling”investment-grade handbags” for small bundles.

In actuality, during the past 14 years, the Rare Handbag Index — monitored by Jersey-based dot-com JustCollecting — has outperformed property and share markets in Australia.

The indicator tracks the value of “regularly-trade and investment-grade” handbags and is believed to have recorded a rise of 170.1 percent between 2004 and 2018. During this time the median home price in Sydney climbed 103 percent, according to Domain data, and the ASX 200 gained 73 percent.

Birkin handbags are a potent status symbol.
Different designer handbags find themselves on the index — Chanel, Dior, Louis Vuitton — but it is almost exclusively the purchase of a Hermes Birkin which makes headlines. The most expensive handbag sold was 448,514 for a Birkin in 2016.

And since the supply of new luggage is kept low and available by the manufacturer to a hand-picked elite, the second hand collector market is now lined with gold.

Fashionista Victoria Beckham is thought to possess an impressive Birkin collection.
Victoria Beckham is believed to have one of the most significant collections on the planet, but the Kardashians could probably give her a run for her money.

Leaving the top-tier $290k diamond bags aside, if you had managed to get your hands on a $5444 Cognac Ostrich Leather Birkin (40-centimetre) handbag — produced by (you guessed it) Hermes — 14 years back, you would have made a clean 275 percent return by now. It last sold for $20,415, based on JustCollecting.

So, with that in mind, in case you begin”investing” in handbags? Probably not.

To perform well comes down to the ability to forecast what’s going to be fashionable and desired a decade before the rest. Knowing what’s in fashion right now proves a tall order for a few — such as your correspondent.

The sector is, apparently, much more market and has far less regulation than other markets.  They may look pretty, but high-end purses are probably not a substantial investment.
Experts advise against purchasing any fashion accessory and expecting a return.

Spending upon a portfolio of investment-grade handbags is”very insecure”, based on Melbourne fashion business legend and purveyor of high-end accessories Christine Barro. “When Phoebe Philo was brought into design Celine and revive that brand [in 2008]… I had those bags, and I could not get enough of them.

Purchasing an apartment is finally the smarter decision. After all, you can not reside in a handbag.
The price tag a few of the handbags is astronomical, but the ever-changing character of fashion explanations the bags as an available form of investment.  There are ways you can avoid some of the exorbitant real estate fees and sell without agents when buying or selling property, DIY property sales and selling your property privately is now available and very popular.

And, like the current owner of a $282,000 Melbourne apartment would let you know, you can’t reside in a handbag.

Please Share this...
Share on Facebook
Tweet about this on Twitter
Share on LinkedIn


View all posts by