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Luxury items of any type are usually poor investments, for several reasons: 1. Price range. By definition, you're above the normal price range. This means fewe
by adrianmonk 7y ago
Luxury items of any type are usually poor investments, for several reasons:
1. Price range. By definition, you're above the normal price range. This means fewer potential buyers, thus less liquidity.
2. Over-specialized. The upgrades or enhancements that made it into a luxury item, which were valuable to you, may not be valuable to someone else. You will take a loss on features that are included but others don't care about.
3. Experimental. People who make luxury items tend to include novel things that sound nice but don't pan out and turn out to be useless or even undesirable.
4. Status. Luxury and status are often linked. Luxury buyers aren't too excited about secondhand. A used sports car doesn't impress your friends like a new one.
If you buy a luxury item (like a giant house), the most rational thing to do is just accept that you are buying it because you want that luxury for yourself, and don't expect to get the money out of it later.