Fine wine is the most popular passion investment, are wine cellars next?
Fine wine investment is all the rage amongst high net worth individuals. In fact, fine wine is now the number one passion investment, overtaking classic cars.
Investment grade wine saw a huge surge in value last year – up almost 25% overall. Although the rise of wine investment is not new, the purchase of wine cellars—an offshoot of the popularity of wine—is becoming more common.
Not only are wine cellars and storage rooms important for investors looking to abide by wine valuation guidelines, wine cellars are now becoming investments themselves. Could there be a day where the room you store your wine becomes more valuable to investors than the wine kept in it?
The rise in Wine Cellars
A recent report from the National Association of Home Builders found that among new homebuyers with an annual household income of $150,000 or more, 31% named a wine cellar as their most desired amenity.
Professionally installed wine cellars are one of the best ways to maintain your wine’s value, but there are also aesthetic benefits. Not only are wine cellars a must-have for wine investors, they are for property buyers too.
This is why wine cellars are becoming more and more important to high net worth individuals.
Convenient and professional fine wine storage
According to wine valuation guidelines, there are strict rules on storing fine wine that need to be abided in order to guarantee the quality of the wine and wine bottle. The price of a wine is dependent on the condition of the bottle. For example, the capsule of the wine must show no signs of rust, and the label must be entirely readable.
Fine wine investment experts at The London Wine Cellar say that bonded storage warehouses are popular as investors don’t have to pay duty or VAT. Keeping your fine wine in a wine storage warehouse will also ensure that your bottle is kept in excellent condition, however it may be so expensive that it offsets your potential profit.
If you decide to add a wine cellar to your property, specifically one with the necessary equipment and temperature control technology, you can ensure that your wine is kept in perfect condition. While it may be an expensive operation, you can save the money you would have been spending keeping it stored elsewhere. Furthermore, you could be adding significant value to your property.
Wine cellars help the price of your property
Wine cellars are becoming increasingly important for property. Wine cellars and wine rooms, often elegantly decorated, are the new must haves for luxury property buyers. Where once home cinemas or media rooms were once sought after, today it’s wine cellars that are in vogue.
In fact, a wine cellar could push up the price, or make the difference for some property seekers when deciding between properties. In a recent interview with realtor.com, Ray Stadler, president of Stadler Custom Homes, stated that “For $1.5 million and up, [a wine room] is usually expected,” he says. “Wine rooms hold their value in the homes we build and sometimes could be a reason that someone does not buy a home if there is not one.”
Investing in a wine cellar can increase the property value of a home as it raises the appraisal, and if you’re looking to invest in luxury wine, it will be a worthwhile investment regardless.