‘Collectable handbag’ takes first place in Knight Frank’s luxury investment index, The index shows that during an average ten-year period, handbag outperformed both wine and art that both recorded substantial growth of only five percent. Over a ten-year period, though, it’s a very different story. In fact, even as the value of the real estate market continued to slide, the price of handbags, specifically designer handbags, has continued to rise steadily and, over the last several years, they have grown in worth by nearly sixty percent.
It’s not difficult to see why Knight Frank believes handbags are an excellent investment category for the savvy investor. For one thing, because the handbag is rarely owned, there is a much lower risk of default, which, according to the real estate market, means higher returns.
Even so, there is no doubt that the real estate market is undergoing a period of significant change. For this reason, many investors are choosing to invest in a wide range of real estate related products, including, but not limited to, luxury real estate investments, including those in the form of luxury homes and luxury townhouses.
Knight Frank, in conjunction with the National Association of Realtors (NAR), offers a number of ways that buyers can determine whether investing in real estate is an appropriate venture for their specific needs. One such tool is their “Luxury Index.” This index evaluates the market value of luxury items, and allows users to compare the price of a given item in different markets. For example, the index ranks the average selling price for designer handbags against various cities, ranging from New York City to Los Angeles and San Francisco, California.
Perhaps you’re looking forward to making your next big purchase, or maybe it’s just the start of a new year’s resolution to purchase more luxury goods. Whatever the case, the Knight Frank index can give you an idea of where to begin and what to consider when buying. There is no doubt that, if you do so, you will be delighted by the results.
Another area of particular interest in the luxury investment category is health and beauty products. Although there is some evidence that the value of health and beauty products is declining as a result of the recession, the real estate market can provide an excellent opportunity to make money by investing in these products. As an example, many companies offer discounts to customers who purchase certain brands at certain times.
This is particularly true in the realm of diet and wellness. Because of the increase in demand for healthy food, manufacturers are often offering special rebates to customers who purchase their food at the beginning of the year. The Knight Frank index shows that the average discount offered for diet and wellness products is more than forty percent, so even if you don’t want to eat the food directly, you can still save money on food, and, by extension, spend less money.
All in all, it seems that the investment industry is an ideal place to make money investing. Whether you are buying a home, a commercial property, or a large investment property, the luxury investment market offers great potential to earn sizable profits.
One important caveat, however, is that the Knight Frank luxury investment index is not available in all areas. Some cities, including those located in Europe and Asia, may not include it in their index because they have higher prices.
Regardless of whether you plan to invest in a home, a commercial property, or a large investment property, the real estate market is one of the most stable and profitable investment opportunities available today. Indeed, many experts believe that the real estate market will continue to perform well for several years, which could mean good news for many homeowners. in your situation.
So, whether you are interested in investing in real estate or not, you may want to consider the Knight Frank luxury investment index to gauge whether you are able to make money with this market. Even if you think you can’t afford to purchase a house or commercial property, you may find that investing in the real estate market can pay off in other ways, as well.