In the weeks after the Chinese New Year, the Dragon lego set rose in value by 210%.
Going from $80 RRP to selling for $250 on Ebay is a savvy way to make 3x your cash in just a few weeks – though it has now settled at about $150.
This is why Lego has become a surprisingly viable investment option.
Articles like “With property prices increasingly out of reach, is investing in Lego a more viable option for investors with net returns of up to 3,593%?” (and this one right here) are popping up like daisies.
It’s not the first time toys have become genuine investment material. But they aren’t always a safe bet, remember the beanie baby boom and bust in the 90s? Reminisce here.
If you’re looking to make some smaller investments, it is reassuring to know that you don’t have to buy stocks or property.
But first here are some general investing tips:
1. Understand what you’re investing in
This doesn’t matter if it’s an ASX listed stock, the house down the road or Lego, if you’re putting money into an investment, you need to understand what it is, how it works and why you’re doing it.
2. Only invest what you can afford
Any investing comes with risk. You also don’t want to be in a position where you need to quickly sell it to get your money out.
That’s why you should ensure you have an easy to access emergency fund alongside any investments.
3. Have a plan for your investment
Do you want to keep this till you retire, or are you hoping to sell beforehand? Knowing your timeline will help you decide how much risk you can take on any given investment.
So with that in mind here’s a few different investments…
Bloomberg calls it the “hot new asset class” with some mint condition Lego sets increasing more than six times the original purchase price according to this study.
From their release date to 2015, Hogwarts Castle and Jedi Star Fighter sets yielded more than 11% a year, more than major US company stocks.
The study found diminishing supply over time, a huge secondary market and a general love of Lego made the toy “an attractive alternative investment with a good diversification potential.”
For many of us, owning a Chanel handbag is a dream. But some savvy investors have their Chanel and make money from it too.
If you could get your hands on a rare high-end Birkin bag, they are tipped to double in value in the next 10 years. But a Chanel, Hermes or Louis Vuitton will also at least hold their value.
The catch is that you’ll need to take exceptionally good care of them.
The chances of picking the next Picasso are pretty slim, but if you do your research, investing in art could work for you.
While da Vinci’s ‘Salvator Mundi’ for a staggering US$450 million in 2017, you don’t have to be a multi-millionaire, but you might need to get an in-depth understanding of the industry.
This piece by Canstar outlines what you need to know before you start filling your walls with photos or paintings.
Keep in mind, that art won’t pay any regular dividends, like a stock would, though you do get to enjoy it on your wall!