Talk to agencies that specialize in finding good investment artworks. One such Australian company, Art Equity, prides itself on finding investment pieces for “ordinary art lovers”. Visit www.artequity.com.au
The driving force behind every investment is the chance of improving one’s lifestyle. The investor buys into an investment and at the end of a certain period, the asset has hopefully gained in value and is sold for a tidy profit. But what if the investment itself directly improves the investor’s quality of life? Such is the case with art.
Covering one’s walls with beautiful artworks that gain in value over time is a dream many share. And it’s a dream that’s simple to turn into reality, says Gina Lee, gallery manager at Melbourne’s Niagara Galleries.
“Start by getting to know the type of art you really like,” Lee says. “Go to public galleries; it’s free and is a great way to spend a few hours. Once you have an idea of the kind of art you like, visit private commercial galleries where it’s sold.”
Private galleries, Lee emphasizes, are just shops, so don’t be intimidated. Research the artists and galleries on the web, and look through their collections online. If they’re a member of the Australian Commercial Galleries Association (ACGA), you can be assured they abide by strict codes of practice.
“Put yourself on the mailing list to receive invitations to exhibition openings,” Lee says.“ Get to know the gallery staff. Tell them what you’re looking for and make an appointment to view works in the stockrooms. Forming a good relationship with a gallery means you have their years of experience at your disposal.”
The cost of a painting is rarely negotiable, but if you’re purchasing more than one piece, it’s worth discussing a discount. And once you own the piece, increase our home insurance policy.
“We recommend you hold on to a piece for at least six to ten years to get a return on your investment. Artists’ prices are generally reviewed at each exhibition – sometimes it might be a relatively small increase, sometimes it might be quite substantial,” Lee says.
Works by John Kelly, for instance, sold for around $1,000 at his first exhibition – some have recently sold for over $140,000 at auction. Look for artists who have the backing of a good gallery – after all, it’s in the gallery’s interest to ensure their own artists are well marketed.
From an investment point of view, try to stick with oil paintings on canvas, which are your best bet for bigger returns in the Australian market. And when it comes to paintings, size does matter, so if you have the space go for a larger artwork. After that, all you have to do is sit back and enjoy your new purchase.
“A gallery might be able to put you in contact with other people who want to form a collecting group,” Gina Lee, gallery manager of Niagara Galleries, says. “But it’s most important to ensure ground rules are in place before joining a group.” “Determine how much you can afford per year, work out who is going to be responsible for decision making, how you’re going to share the artworks and what happens, if someone wants to leave.” Or organize you own investment group with friends. Consider it a way to socialize, appreciate art and make money all at once. Talk to agencies that specialise in finding good investment artworks. One such Australian company, Art Equity, prides itself on finding investment pieces for “ordianary art lovers”. Visit www.artequity.com.au. Or check out Art Search, a database of galleries specializing in investment artwork. Visit www.art-search.com.au. Watch out for art exhibitions, like Melbourne’s Affordable Art Show or Art Sydney. With a huge amount of artwork on display, they also have various seminars. Visit www.affordableartshow.com.au or www.artsydney05.com.au.