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 period, the asset has hopefully gained in value so 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 which gain value over time is a dream many share. And it's a dream which is 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 doesn't cost anything and it's a wonderful way to spend a few hours. Once you have a good idea of the kind of art you like then visit private commercial galleries where it's sold." Private galleries, Lee emphasises, are just shops, so don't be intimidated. Research the artists and the 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. Once you own the piece, increase your 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 small increase, sometimes it might be quite substantial," Lee says. Works by John Kelly, for instance, sold for around $1000 at his first exhibition 17 years ago. 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. Finally, from an investment point of view an oil painting on canvas is 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 then go for a larger artwork. Then all you have to do is sit back and enjoy your new purchase. Safety In Numbers As with share investing and racehorse ownership, it is also possible to join a group and pool your money to invest in art. "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 the group." Or organise your own art investment group with friends. Consider it a way to socialise, have fun, appreciate art and make money all at once. Talk to agencies that specialise in finding good investment artworks. One such company, Art Equity, prides itself on finding investment pieces for "ordinary art lovers'. Or check out Art Search, a database of galleries specialising in investment artwork. Watch for art exhibitions, like Melbourne's Affordable Art Show or Art Sydney. © Chris Sheedy/the hard word |
