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A little more on Property versus Classic Cars.......

November 14, 2014
A little more on Property versus Classic Cars.......

A little more on Property versus Classic Cars.

Many people have spoken to us regarding Property versus Classic Cars, especially following the Article that we posted in the News section of this website.

They have confessed amazement after reading the Article, especially when they have gone away and checked the numbers for themselves.

Within the Article, Dominic Tobin from the Sunday Times described two scenario's:

1) Buying a house in London for £142,000 (AU$262,960 now) in 2004, and then selling it today at a profit of £100,000 (AU$185,200 now)

2) Buying a Ferrari 275GTS for £142,000 (US$264,000 at 2004 prices) and then selling it today at a profit of £1Million (AU$1.85 Million)

Now did the guy with the Ferrari KNOW that this would happen..........Probably not. That said though, which are the next cars that are going to do exactly the same over the next ten years, and do we KNOW that they will reach the figures that we are discussing here.

Of course the truth is that just as with the Sub-Prime crisis that led to the GFC, we do not KNOW categorically that these gains will always continue. Nor did the guy with the Ferrari in 2004. What he did differently is that he loved the car and so he bought it, although he traced the history of Ferrari 275's back 10 years, and all he found was solid growth in value. Now, in 2014, he will collect AU$1.85 Million for having done his homework, and could also purchase 4 of the houses in London that were discussed, for cash.

There are many Classic Cars that are well on their way to achieving massive gains over the next ten years just as this Ferrari has, making many people very wealthy. A lower end Classic Car can be bought today for as little as £8,000 (AU$14,815), with a gain in ten years of over 350%, if we conclude LESS growth than the figures seen since 2001. Will the growth halt ?. Well, will Property, or shares growth halt ?. The answers are all around us. Of course, if one was to purchase the right model of Ferrari............

Click here to read this Article

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