As previously noted, ‘atypical’ assets provide both potential rewards, i.e. monetary / personal, and hassle factors, i.e. cost / space / time.
Based on articles from “Advisor’s Edge” magazine, here are factors and statistics concerning a few lesser known, larger asset types:
- ANTIQUE FURNITURE:
- Likely to involve auctions, with scarcity and legacy factors
- PROS include their holding or increasing in value, with best purchase prices when the economy is slow
- CONS include illiquid, long term investment possible restoration & deterioration issues, separate insurance need, appraisals may be required
- CLASSIC CARS:
- Individual vehicles have been auctioned for over $10 million
- PROS include their representing rolling pictures of appreciating art which can be enjoyed and exhibited, capacity to be transported to stronger markets
- CONS include rigorous due diligence, need for secure storage & insurance, appraisal process, exposure to damage in public
- PRIVATE ISLANDS:
- Price tag range per island from $30K to over $1 million
- PROS include the opportunity to customize a personal hideaway
- CONS include environmental issues if developed, weather vulnerability re services, healthcare travel, potential for pirates, maintenance costs & insurance
As with all ‘atypical assets’, be prepared to check out expertise and to do your own research.