When the time comes, one of the decisions you will have to make about your wine is whether to sell it or whether to drink it yourself. This may sound an easy decision for investors, but when you consider that the wines you are investing in are considered some of the best in the world, you may find yourself tempted to crack open a bottle. There are a number of things to consider when making that crucial decision.
Firstly, how is the fine wine market performing? In recent years the wine market has been in very good shape, the WAM Fine Wine Index has been outperforming its rivals and demand is at an all-time high. All of these factors mean that the prices paid for fine wines has sky-rocketed. Register here to get updates on fine wine.
The next thing you need to ask is how well your wines have been stored and cared for. If you have cellared them at home, you may not get as high a price for your investment as you would if they had been cared for by a professional cellar warehouse. It may be worth having your wine selection valued by a professional to see just how much you could expect to earn on your investment before you decide to sell.
If you do decide to sell, another thing to consider is how you’ll actually go about the process of obtaining a buyer. Many investors sell through wine auction houses or with the help of an agent – though both methods will reduce your profits as you will have to pay commission. There are also a number of wine clubs and associations online who allow you to advertise your wines, and this may be another option worth considering. You will need to consider delivery costs though as this can be expensive, save money in the long term by delivering within a certain radius yourself. You might need to invest in a van or an estate car to hold the deliveries but make sure you declare business use with your insurance company. It should be much more expensive, if it is then use Quotezone to help you find cheap van insurance.
Firstly, how is the fine wine market performing? In recent years the wine market has been in very good shape, the WAM Fine Wine Index has been outperforming its rivals and demand is at an all-time high. All of these factors mean that the prices paid for fine wines has sky-rocketed. Register here to get updates on fine wine.
The next thing you need to ask is how well your wines have been stored and cared for. If you have cellared them at home, you may not get as high a price for your investment as you would if they had been cared for by a professional cellar warehouse. It may be worth having your wine selection valued by a professional to see just how much you could expect to earn on your investment before you decide to sell.
If you do decide to sell, another thing to consider is how you’ll actually go about the process of obtaining a buyer. Many investors sell through wine auction houses or with the help of an agent – though both methods will reduce your profits as you will have to pay commission. There are also a number of wine clubs and associations online who allow you to advertise your wines, and this may be another option worth considering. You will need to consider delivery costs though as this can be expensive, save money in the long term by delivering within a certain radius yourself. You might need to invest in a van or an estate car to hold the deliveries but make sure you declare business use with your insurance company. It should be much more expensive, if it is then use Quotezone to help you find cheap van insurance.