5 Luxury Assets High Net Worth Individuals Invest In

High-Net-Worth-Individuals (HNWIs) invest in a large array of assets. They don’t stick to the conventional favorites and often show incredible foresight in terms of long-term returns.

An asset draws value over time. Anything that is sure to become a scarce asset or one-in-a-lifetime collectible will certainly fetch great returns. And that’s why HNWIs love investing in luxury items.

Of course, considering the sheer amount invested, this investment strategy seems highly exclusive to the wealthy. But that doesn’t mean others can’t do it at all. Should you develop an interest in such an investment, you must know what the most popular luxury assets are among HNWIs. Here’s a list of 5 of them:

1. Watches

Tabloids around the world love writing about the extravagance of the wealthy. What they miss is the smart investment strategy underlying those expensive purchases.

Watches are very commonly purchased. In fact, watches with a terrifyingly steep price almost always fetch buyers immediately because there’s a lot to be gained in the future. Yes, watches are tasteful in a prosperous society, but the expensive ones become a highly-wanted asset in the future.

2. Vintage Cars

Certain items in the world beat the depreciation game. Even cars, which are known to be easy targets of the same. But, some cars can mint an exorbitant sum for you if you choose the right ones at the right time.

People who buy vintage cars are obsessed with them. They’re usually owned by HNWIs or children of HNWIs. A lot more money would go into the refurbishment of these cars. And, eventually, they’ll be sold out to a fellow vintage car collector. Not many can understand the appeal of an investment like that–and sure enough, you don’t need to as long as it gets you good money.

3. Art

It is no secret that the HNWIs are lovers of aesthetics. Many of them respect creativity and support it. But, most of them have an ulterior agenda to keep them going–to tap the exponential value of the art in the future.

Investment in art doesn’t give immediate returns. The appreciation in value is slow and dependent on the background developments. But, as artifacts grow older and more vintage, they are quite likely to sell at a handsome value.

All the money going into museums and art galleries is not a simple realization of a hobby. The scheme is smarter and motivated by things other than aesthetics.

4. Wine

Nothing ages better than wine. We’re pretty much aware of why. As much as it is a metaphor, it has a context rooted in the practical realities of wine. The older and rarer the wine is, the more luxurious it is. The more luxurious it is, the more satisfying the auction price will be.

It is quite common to hear about the expansive, highly secure wine cellars of the HNWIs. Maybe they love wine as much as they show it, but they know how much these wine bottles would help. Experts suggest that a wine bottle could appreciate in value by 30 percent in five years. Now, that’s interesting!

5. Designerwear

Now, designerwear could be anything, but as long as it has a tag on it, that should work. But not just any designer wear. An iconic designerwear comes from an iconic designer. A long-lasting legacy is all it takes.

Whether it is Chanel or Birkin Bags, HNWIs hoard them up in their closets all the time. Yes, they are fascinated by it, of course, but many know that these are going to make money in the future. The prestige and scarcity associated with these designer items impact their resale price, and HNWIs know that.

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