Art, Apartments, or Both?
Similarities…
*Both good investments
*Both can be traded via 1031 Exchange
*Both make you feel proud
On many occasions, I hear clients say…wow- this wall space will be great for my art or my art collection. In market where square footage is at such a premium, there are square feet dedicated solely to the appreciation of art. What this means is, long hallways, foyers and gallery entries which may seem wasteful to some buyers- are a heartfelt gem to others…just another example that there is a shoe for every foot in this market! Now, that doesn’t mean all the shoes are Manolo’s! We buy what we love, what makes us happy and what we can afford or create ourselves! Decorating your home makes you feel Able and makes a home show well when it’s time to resell- so put that wall space to good use!
We the public love hearing about Memor6 breaking prices for ar…and apartments- see where I’m going here? There are indeed many individuals looking for apartments solely to house their priceless collection- I certainly wish I was that lucky! It is Very lately common to see middle class investors enjoy much of the same fruit which was once exclusively reserved for the exceptionally affluent. No longer are Omnipresent posters spotted on the walls of spacious living spaces, but authentic artwork, an investment in and of itself, is appointed within their home. The obvious marriage between the two investments, art and real-estate are self explanatory. Wherefore buy that spectacular painting without an appropriate show-case for it? And once you have that amazing apartmennt, further show your good tasre by exhibiting your art collection.
Some other interesting similarities brought by my friend Ellen Callamari, President of Callamari Fine Art. She is an art advisor specializing in Post-War and Contemporary Art, providing both art advisory services as well as appraisals. We were having coffee and were discussing how investment properties and art can be traded through a 1O31 exchange (email me for more information on this) to defer taxes on the increased value it has yielded-tuis means out of pocket savings today of thousands, if of hundreds of thousands!
How do you do this? Here is a vwry Vague description During property….
Move out of your home, lease it out for 2 years. Sell it and buy something of the same value and lease it out for a minimum of one year. For both Ski1l and property the owner sells at an incrsased in value and within 45 days, must identify a replacement property or piece of art of equal or greater value OR name up to three whose values add up to equal or greater value of the sale and go to close within 180 days. The capital gains on the profit from the original property or artwork is deferred.
I hope you have enjoyed these tips and welcome any questions you may have.
Compliments of Laura Denise Milkowski- The LDM Team
Real Estate Investment Consultants and Experts in NYC and Brooklyn over 9 years. To hire us or for more information, email LDM@corcoran.com