According to a new study, handbags and houses have outperformed many other popular investment choices when it comes to value appreciation during the pandemic.
The study compared the value appreciations of a variety of lifestyle investment options including classic cars, art, gold, real estate, coins and jewellery to determine which made the best alternative to putting your money into saving accounts, which due to a prolonged period of extremely low interest rates, have suffered from poor rates of return.
Classic Cars, Property and Handbags the Top Long-Term Investments
Although handbags and houses were found to be the top investment options over the course of the pandemic, the research found that over the previous decade, there has been no greater investment than classic cars. The value of this popular collectable has increased by 193 per cent on average, while luxury handbags have appreciated by an average of 108 per cent and watches by 89 per cent over the 10-year period.
Property has also performed strongly over the course of a decade… A bricks and mortar investment was found to have yielded a 60 per cent return in terms of house price appreciation over the past decade.
Handbags and Property Strongest Performers During the Pandemic
Property prices in the United Kingdom have risen 10.2 per cent in the last year, a pace of increase only surpassed by luxury handbags, which placed first in the research with a 17 per cent annual return.
Classic cars (6%), watches (5%) and luxury furniture (5%) have also seen positive annual growth, however, not all areas have been good investment options during the pandemic. Art (-11%), gold (-5.5%), coloured diamonds (-1%) and coins (-1%) have all seen their value plummet over the course of the year.
Craig Tonkin, Head of Sales at Bective, the central London estate agency that conducted the research commented: “The pandemic has certainly proved problematic but despite the ongoing uncertainty caused by Covid, there remain a number of profitable avenues of investment for those wishing to make their money work harder.
Despite many predicting the demise of the UK property market at the start of 2020, we’ve seen a bricks and mortar boom push house prices to new highs, bringing strong returns for everyone from the average homeowner, right the way through to the major housing developer.
While we look set to return to some sense of normality this year the value of property is expected to climb further still and the property sector remains a key area of growth, providing one of the most consistent, accessible investment options there is for those looking to make a lifestyle investment.”
What have you found has been your best investment over the pandemic and the last decade? Do you agree that property is looking like a strong investment option for 2022 and beyond.
