Why Should You Invest In Assets That Have The Potential To Increase In Value?
For many decades, people contribute to their pension pots and have savings accounts with rainy-day funds. This is obviously a smart thing to do and something we highly recommend, still.
But the past 10 years have seen a rise in people looking to spot the next hot property and purchase something to hold on to until the market value rises and you’re able to cash in for a tasty profit.
Although it’s not guaranteed your investment purchase will increase in value, here we cover some asset types that are worth looking at and have already seen accelerated value due to supply and demand.
It can be quite challenging to guess which cars are likely to increase in value in years to come but for those who do, it is extremely rewarding.
The market has already revealed some of the top climbers to which most non-petrol-heads are in disbelief as to what they’re demanding price-wise.
If you’re able to find the funds to purchase an existing high-rising car, then here are some of our top picks to buy that shouldn’t drop in value and will more than likely continue climbing:
- Ford Cosworth Models – All Sierra or Escort Cosworth models
- Mitsubishi Lancer Evolution – Any with the 4G63 engine are worth investing in
- Nissan Skyline GTR – R32, R33 & R34 – The iconic RB26 engined models
- BMW M5 V10 – NA and roaring past 8,000 RPM is one of a kind
- BMW M3 E9X – The only M3 to ever feature an NA V8
- Peugeot Rallye Models – An S1 1.3 106 Rallye is the one to keep an eye out for
- Porsche GT3 RS – Screaming NA Flat 6’s won’t be around much longer
- Landrover Discovery Series 1 – Tidy S1s are climbing in value
- Aston Martin V8 Vantage – Another screaming NA V8 for the list
- Honda S2000 – Mid-engined (set behind the front axel) 9,000 RPM 2.0 V-TEC
How To Spot Future Classics?
You need to think about modern technology within the car industry. What type of engine, body types and models aren’t going to be produced again? What made them different?
For example, the rise in the value of Ford’s wearing the Cossie badge came to market with extremely aggressive yet unique styling and was available in AWD and RWD models.
Paired with the infamous 2.0 Turbo YB lump it was a recipe for a future classic. This is very similar to the Mitsubishi Lancer Evolution models. A road-going rally car that is now no more with very little seen on UK roads.
The Evo 6 Tommi Makinen (in red) is one of the highest in value. Both the Cossies and Evos are often listed for well over £60,000 when a few years back they were worth around £15,000!
Similarly but in its own way, the BMW M5 V10 was pretty bonkers at the time it came out and still is to this day.
Other than the M6, no other models have ever represented the S85 V10 engine and therefore collectors are naturally drawn to its rarity and uniqueness.
Modern engines generally have smaller displacements and are generally paired with turbochargers for efficiency and power delivery. Furthermore, many electric motor-assisted hybrids are well on their way to being full-fat electric in years to come.
Purists like old-school engineering and something iconic. Therefore it’s going to cost you if you want to own a piece of history but if you find the right deal on something that needs a bit of attention then you could have a solid investment parked up in no time.
Whisky is quite a specialist investment and you certainly need to do your research to become familiar with the different types. To someone who knows nothing about Whisky as a starting point, you’re destined to make poor decisions so you need to surround yourself with industry knowledge and experts, firstly.
The specific regional types you should look to invest in specifically are:
Scottish Whisky is a protected status ‘Scotch’ which is only given to Whisky distilled in Scotland which has matured for a minimum of 3 years in oak casks.
If you’re interested in purchasing Scotch whisky, we recommend starting to look at casks produced by these distilleries:
- Johnnie Walker
Do your research on particular bottles that have risen in value and are continuing to rise year on year. If you’re one for spotting market trends you could soon be sitting on something worth thousands after only investing a couple of hundred pounds to buy.
An example worth looking into would be Johnnie Walker ‘The Directors Blend’ releases. Not available to purchase when released as they were gifted to selected people, only.
Irish whiskey has its own heritage and history dating back just as far as Scotch Whisky. In fact, there is still a huge debate over who invented whiskies in the first place!
Regardless of who did, Irish Whiskey is just as valuable when it comes to investing in particular casks from specific distilleries.
The main difference between the two regions is that Irish Whiskey is generally made from unmalted barley, whereas Scotch is made from malted barley.
If you’re interested in purchasing Irish whiskey, we recommend starting to look at specific casks produced by these distilleries:
You may also want to look into purchasing your own cask barrels which will sit in storage for many years until you’re eligible to sell. Investors usually see around 12% profit after 6 years, but you’re more likely to see this percentage increase if you sit on it for 15 years or more.
3) Invest In Your Home
Property investment doesn’t always have to be an additional purchase to your existing home. Modernising or refreshing parts of your property is an excellent way of increasing the value of your home when it comes to selling and making a profit.
Properties will very rarely drop in value and locations close to schools and motorway access are always in high demand.
If you’re in no rush to sell but may do so in a couple of years’ time then why not consider some of the following areas proven to increase the value of your home:
- Building a patio area
- Adding a downstairs toilet
- Fitting a new kitchen
- Decorating main rooms
- Adding a feature wall (wall panelling)
- Upgrading windows and doors
Updating one or more of the above may cost a few thousand pounds, but houses with just one bathroom for example can often see £10,000 or more in retail value with an additional downstairs toilet added.
Alternatively, purchasing another home and renting it for a higher rate than your monthly mortgage payments is a popular way of generating additional income.
Just make sure you choose tenants wisely as you could end up having more problems than it’s worth with court cases and unwanted maintenance bills due to neglect!
4) Vintage Clothing and Sneakers
When it comes to clothing or sneakers and everything related to them, there’s no arguing that they’ve become a dominant force in the luxury and desirable resale market.
Many of us may look to purchase signed sporting memorabilia or collectable vintage clothing as a tried and tested way of making money down the line.
Signed sporting memorabilia often retains and significantly increases in value over the decades and is probably the safest type of asset to invest in for newbies with smaller budgets.
For sneakerheads, this won’t come as a surprise: there is a universal appetite for rare and exclusive sneakers amongst consumers. This is exemplified by collaborations with newer brands, designer collaborations and exclusive sneaker releases from heritage luxury brands.
Sneaker collaborations with the likes of Adidas x Kayne West and Nike x Michael Jordan have seen some limited edition productions reach unthinkable resale value and aren’t something to be laughed about when mentioning sneakers in this list.
A pair of 1980s Nike Air Jordans worn by himself in his earliest season sold for $1.47 million at an auction in Las Vegas in recent years and holds the record for the most expensive pair in history sold at auction.
If you’re looking to get into clothing or sneakers make sure you adhere to the following to give yourself the best chance of making a profit in years to come:
- Make sure the condition is ‘As-new’ and boxed (if applicable) or genuine if worn by a celebrity
- Limited edition runs and special collaborations are more likely to be valuable in the future
- Signed shirts or sneakers will usually hold their value well but will hold a higher purchase price tag
- Dry storing or vacuum packing is best for the preservation of these types of assets. Sneaker soles can become brittle and disintegrate. Clothing may attract moths which consume fabrics causing unwanted holes
- Monitor the time between the production and resale of historical transactions to gauge market trends
Jewellery is one of the most important and wise investments that a person can make. The type of jewellery to invest in depends on what you want to invest in, personally.
For example, if you want to invest in watches, then a Rolex watch is an excellent choice because it’s a historical and premium brand that has been around for over 100 years and is known to be desirable. Cons are they are very expensive to buy from the start.
Spotting the right opportunity to make a purchase is a skill to be desired. Look for limited edition production, colourings of the dials and minor details that could help increase its value.
Furthermore, acquiring an obsolete model at a good price may just pay off in the future.
Diamonds are also worth investing in depending on the carat, cut and colour. Experts suggest the best diamonds to purchase are:
Round brilliant diamonds with a carat weight of 1.01 to 1.49, with a colour grade of D-H and clarity grades of IF to VS2.
Look at recent trades to spot what might be the next desired garment in the next 10 years if you’re on a lower budget. Alternatively, purchasing an existing high-value piece and holding on to it for as long as you can whilst preserving the condition is a sensible option.
Investing is a rollercoaster of risk and reward. For those who get it right, it’s extremely rewarding and sometimes life-changing owning a piece of history that somebody wants so bad.
Managing your own financial risks is part of the commitment as you’re on your own doing it solo. You should always be aware this isn’t a guaranteed way to make money.
You may find it helpful to consult a financial advisor who specialises in asset investment, but you’ll have to pay their fees for the privilege.
If you’re not sure where to start, ask yourself: what is my passion? If there’s a clear answer like sports, go with sign memorabilia as an area to look at investment.
The asset types in this list are to give you inspiration only.