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The most important things to know before investing in tangible assets

06 Dec, 2023 Investment

As House of Assets see the investment landscape continue to evolve, investors are exploring tangible assets to diversify their portfolios and seek stability. So, what are tangible assets? Tangible asset investment is any fixed asset that is in a physical form and can hold/gain value, like fine art, classic cars, vintage whiskey or wine, sold online at House of Assets. 

By now understanding House of Assets, the meaning of tangible assets, and the examples of assets, it is essential to understand the five top tips before investing in tangible assets and unravel the reasons behind their appeal as good investment choices.  

Tip 1: Research

Before investing in any tangible asset, thorough research is paramount. Understand the market trends, historical performance, and potential risks associated with the specific fixed assets you are considering. Robust research lays the foundation for informed decision-making and mitigates the risks associated with tangible asset investments.

Tip 2: Consider Liquidity and Exit Strategies

Unlike liquid assets such as stocks or bonds, tangible assets have lower liquidity. So before investing, consider how early you can convert the asset into cash if needed. Also, be prepared for unexpected circumstances, so develop soundproof exit strategies and contingency plans to help you be one step ahead of the game. Knowing your tangible common equity ensures that you can optimise your returns while maintaining flexibility in your investment portfolio.  

Tip 3: Understand Maintenance Costs and Responsibilities

Tangible assets often come with maintenance costs and responsibilities that may impact your return on investment. For example, art involves storage, cleaning and insurance. Understanding these costs is crucial for accurate financial planning and preventing unexpected financial burdens—factor in ongoing expenses to assess the true profitability and feasibility of the investment. 

Tip 4: Evaluate Risk Tolerance and Time Horizon

Every investor has a unique risk tolerance and time horizon for their investments. While offering stability, tangible assets may have varying levels of risk depending on the asset class. Evaluate your risk tolerance and align it with the specific characteristics of the tangible asset you are considering. Also, clarify your investment period; it is best to allow a great amount of time, as tangible assets often perform best over the long term. 

Tip 5: Seek Professional Advice

Investing in tangible assets requires a specialised understanding of the market, legal considerations, and financial implications. Seek advice from financial advisors, art consultants and investment enthusiasts to guide your investment decisions. Their expertise can provide valuable insights and help you navigate the complexities of tangible asset investments, ensuring that your strategy aligns with your financial goals. 

Investing in tangible assets with House of Assets can be a rewarding journey when approached with careful consideration. As with any investment strategy, staying informed and adapting to changing market conditions are key to success in the dynamic world of tangible asset investments. 

House of Assets is set to offer a wide variety of tangible assets, and they can’t wait to be the matchmaker to your next dream investment. For any enquiries, don’t hesitate to get in contact. 

Beth Macdonald

Bethany is a seasoned expert in tangible asset investment, renowned for her astute insights in the realms of art, fine wines, whiskey and classic cars. With over two decades of experience in the financial and luxury asset management sectors, and working for other auction houses/marketplaces, she has a deep understanding of the market sector and investment trading. Her passion for tangible asset investments started early in her career and she has keen eye for value and art.

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