Art Investment

[Scott No Mates]

I got an email invitation yesterday through Morningstar offering a 9% (contracted) return + capital growth through the purchase of artwork.

Entry was only $5k+, not bad money for a SMSF (you'll need to get your own advice on this one).

My initial thoughts are: what is the exit strategy ie how easily can you offload your parcel?

Anyone got any thoughts?

Collins & Kent Int'l

 

[willair]

I got an email invitation yesterday through Morningstar offering a 9% (contracted) return + capital growth through the purchase of artwork.

Entry was only $5k+, not bad money for a SMSF (you'll need to get your own advice on this one).

My initial thoughts are: what is the exit strategy ie how easily can you offload your parcel?

Anyone got any thoughts?

Collins & Kent Int'l

I have bought a few from the auctions over the past 25 years, some from what was left that did not get out of Australia from the then most wanted fugitives Christoper Charles "Skase" after he did a runner to Spain,they have gone up in value but this is a saying from another artist that I have
2 paintings not prints..Brett Whiteley,that just about says it all in a few lines..

Never trust an art dealer who'll sit in a room for more than ten minutes with a crooked picture. (Brett Whiteley

 

[geoffw]

If it was artwork in your SMSF, you would have to ensure that you don't, by the terms on an SMSF, that you derive no benefit or enjoyment from it.

So you presumably wouldn't be able to go to an art gallery where it was hanging. Or even have a photo of it ;-)

It might be good as something small to have in your portfolio. It's a fair question about offloading- I don't know.

 

[Ausprop]

If it was artwork in your SMSF, you would have to ensure that you don't, by the terms on an SMSF, that you derive no benefit or enjoyment from it.

fortunately those laws are about to be scrapped, as is the resale royalty fiasco

 

[geoffw]

fortunately those laws are about to be scrapped, as is the resale royalty fiasco

Thanks for that info.

Do you have a reference as to what is going to change please?

 

[Ausprop]

Thanks for that info.

Do you have a reference as to what is going to change please?

this is just the first article I found on it but I did see a more comprehensive release regarding it

http://www.afrsmartinvestor.com.au/...in_the_frame_for_smsfs_ohQhVnWglIjMlmziUeVRtN

 

[geoffw]

Thanks Ausprop. That certainly makes it more viable.

 

[redwing]

Same would apply for coins also then?

Companies such as the link from Scott and Rare Coins which stored (or rented) the investments for a fee may suffer

 

[Luv2Travel]

Would be good to see these laws changed, although a bit late for these victims.

http://www.artmediaagency.com/en/35896/the-ronald-coles-case/

 

[Ausprop]

Would be good to see these laws changed, although a bit late for these victims.

http://www.artmediaagency.com/en/35896/the-ronald-coles-case/

yes, unfortunate that draconian rules forced the super funds to expose their assets to more risks, just so socialists could be smug in the knowledge that 'rich people' weren't actually deriving any hint of pleasure from their hard work