dermot
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Post by dermot on Mar 4, 2018 13:44:41 GMT
Not sure i'd want to invest much in one of these - especially without provision backing, even if one came up: www.bbc.co.uk/news/business-43239037Unlike gold and stones, it has a lot less intrinsic value, bearing in mind how rapidly fashion can change. |
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starfished
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Post by starfished on Mar 4, 2018 16:17:09 GMT
Well this is no different to high end watches or dare I say it, cars...
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Post by GSV3MIaC on Mar 4, 2018 16:53:04 GMT
Or art, or antiques, or <most things> .. 'intrinsic value' is in the mind of the purchaser(s), with the probable exceptions of food, housing, water, medicines and suchlike.
What can that handbag do for you that a £10 cheepie can't achieve, apart from improve your chances of getting mugged or kidnapped?
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sarahcount
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Post by sarahcount on Mar 4, 2018 21:57:05 GMT
My extensive DD on designer handbags, mainly gleaned from Posh Pawn on Channel 4, is that you really don't want to throw a pen into your bag as it will leave unsightly inky stains and devalue your investment.
But we all love a handbag - don't we girls?
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dermot
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Post by dermot on Mar 5, 2018 14:15:41 GMT
Well this is no different to high end watches or dare I say it, cars... I agree to a certain extent about watches and cars, but at least gold has an intrinsic value ... and the resale market is probably wider.
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stub8535
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Post by stub8535 on Mar 5, 2018 14:25:49 GMT
Well this is no different to high end watches or dare I say it, cars... I agree to a certain extent about watches and cars, but at least gold has an intrinsic value ... and the resale market is probably wider. Exhibit a DeLorean! Nuff said.
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james100
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Post by james100 on Mar 5, 2018 16:35:59 GMT
Not sure i'd want to invest much in one of these - especially without provision backing, even if one came up: www.bbc.co.uk/news/business-43239037Unlike gold and stones, it has a lot less intrinsic value, bearing in mind how rapidly fashion can change In the second photograph in that article, the right hand bag is a Chanel 2.55 Medium Classic Flap Black Lambskin. One of these resides peacefully in my safe. Purchased new in 2000 for £650 (still excellent condition with authenticity docs intact) current retail price of £3990. Secondary market prices often higher than primary due to limited availability. That's approx 10.6% per annum return for 18 years which ain't too shabby. No income tax or CGT liability either 
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dermot
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Post by dermot on Mar 5, 2018 17:41:34 GMT
Not sure i'd want to invest much in one of these - especially without provision backing, even if one came up: www.bbc.co.uk/news/business-43239037Unlike gold and stones, it has a lot less intrinsic value, bearing in mind how rapidly fashion can change In the second photograph in that article, the right hand bag is a Chanel 2.55 Medium Classic Flap Black Lambskin. One of these resides peacefully in my safe. Purchased new in 2000 for £650 (still excellent condition with authenticity docs intact) current retail price of £3990. Secondary market prices often higher than primary due to limited availability. That's approx 10.6% per annum return for 18 years which ain't too shabby. No income tax or CGT liability either I stand corrected!
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stub8535
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Post by stub8535 on Mar 5, 2018 18:28:05 GMT
Not sure i'd want to invest much in one of these - especially without provision backing, even if one came up: www.bbc.co.uk/news/business-43239037Unlike gold and stones, it has a lot less intrinsic value, bearing in mind how rapidly fashion can change In the second photograph in that article, the right hand bag is a Chanel 2.55 Medium Classic Flap Black Lambskin. One of these resides peacefully in my safe. Purchased new in 2000 for £650 (still excellent condition with authenticity docs intact) current retail price of £3990. Secondary market prices often higher than primary due to limited availability. That's approx 10.6% per annum return for 18 years which ain't too shabby. No income tax or CGT liability either Why no cgt if you sell james100?
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james100
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Post by james100 on Mar 5, 2018 19:41:05 GMT
stub8535 AIUI handbags fall under the full CGT exemption for disposing of personal possessions with a predictable limited lifespan of less than 50 years (same rule as for antique clocks & watches or anything else that can be categorized as a wasting asset held in personal possession). www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg76721(In any case, this particular item would also fall under the exemption for disposal of personal possessions with a sale value of <£6000.)
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stub8535
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Post by stub8535 on Mar 5, 2018 19:56:46 GMT
stub8535 AIUI handbags fall under the full CGT exemption for disposing of personal possessions with a predictable limited lifespan of less than 50 years (same rule as for antique clocks & watches or anything else that can be categorized as a wasting asset held in personal possession). www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg76721(In any case, this particular item would also fall under the exemption for disposal of personal possessions with a sale value of <£6000.) Thanks. Made me go read up for an investment type. Hmm! Not easy to decide on an investment asset basis whether cgt or income tax apply. Must take professional advice I think.
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copacetic
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Post by copacetic on Mar 6, 2018 13:38:02 GMT
Goods are priced by the interaction of supply and demand. What worries me about investing in most art is that demand is based on fashion which I have no way of predicting and can go up or down. Supply of art from a dead artist on the other hand is either fixed or decreasing (depending if the piece can be destroyed). The added risk of art such as handbags from a company that is currently trading is that supply could just be increased to make some extra short term profits.
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james100
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Post by james100 on Mar 6, 2018 16:09:56 GMT
This is quite a good article from the Financial Times (Nov 16) about investment-grade bags: www.ft.com/content/a94f93b2-a817-11e6-8898-79a99e2a4de6 which addresses the points on fashion and supply. Edit: in case it's behind the paywall you can get in clicking the search link from "Financial Times Handbags hold a rare attraction for investors" |
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dermot
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Post by dermot on Mar 9, 2018 16:43:47 GMT
In the second photograph in that article, the right hand bag is a Chanel 2.55 Medium Classic Flap Black Lambskin. One of these resides peacefully in my safe. Purchased new in 2000 for £650 (still excellent condition with authenticity docs intact) current retail price of £3990. Secondary market prices often higher than primary due to limited availability. That's approx 10.6% per annum return for 18 years which ain't too shabby. No income tax or CGT liability either I stand corrected! I *really* do stand corrected, since I've just been assigned a modest chunk of a fancy handbag loan this afternoon ...
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Post by elephantrosie on Apr 7, 2018 3:08:53 GMT
Not sure i'd want to invest much in one of these - especially without provision backing, even if one came up: www.bbc.co.uk/news/business-43239037Unlike gold and stones, it has a lot less intrinsic value, bearing in mind how rapidly fashion can change In the second photograph in that article, the right hand bag is a Chanel 2.55 Medium Classic Flap Black Lambskin. One of these resides peacefully in my safe. Purchased new in 2000 for £650 (still excellent condition with authenticity docs intact) current retail price of £3990. Secondary market prices often higher than primary due to limited availability. That's approx 10.6% per annum return for 18 years which ain't too shabby. No income tax or CGT liability either I can understand why second hand Hermes birkin bags are pricier than new ones. But why would a used Chanel classic flap be more expensive?
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