{"id":173229,"date":"2017-05-04T10:00:24","date_gmt":"2017-05-04T08:00:24","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=173229"},"modified":"2017-05-04T18:11:01","modified_gmt":"2017-05-04T16:11:01","slug":"one-investment-thats-giving-south-africas-super-rich-a-huge-return","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/wealth\/173229\/one-investment-thats-giving-south-africas-super-rich-a-huge-return\/","title":{"rendered":"One investment that’s giving South Africa’s super rich a huge return"},"content":{"rendered":"

In the past, classic cars were seen as the ‘playthings’ of millionaires\u00a0– with the desire to collect driven by emotion, nostalgia and fancy – but today, these icons are seen as an incredibly lucrative investment opportunity, according to Sanlam Private Wealth.<\/p>\n

Notably,\u00a0investors are increasingly driven by rarity and the future value profile of classic cars, where these throwback beauties can sell at auction for as much as $30 million.<\/p>\n

Leon Str\u00fcmpher, Portfolio Manager at Sanlam Private Wealth says the market for classic cars has experienced a consistent rise in value over the past two decades\u00a0– with the value of the classic car market in the UK alone said to be about \u00a35.5 billion (R95 billion).<\/p>\n

According to the Knight Frank Luxury Investment Index the value of the classic car market internationally has over the past 10 years appreciated more than that of watches, wine, jewellery, stamps and art,\u00a0he said.<\/p>\n

Among the most popular classic car brands,\u00a0the latest price index compiled by the Historic Automobile Group International shows that Mercedes-Benz has been the best performing marque, increasing in value by just over 85% over the past three years.<\/p>\n

Ferrari also did well, posting an increase of 65% and sending Porsche into third place with a rise of almost 60%.<\/p>\n

A 1960s Ferrari Dino that might have sold for R25,000 in the 1980s, may sell for as much as R6 million today – while an E-type Jaguar worth R50,000 in the early 1990s might fetch upwards of R2 million in 2017.<\/p>\n

The best-performing classic cars in terms of return on investment have been the Ferraris from the 1950s and \u201860s, Sanlam noted, with the highest price paid for a Ferrari believed to be more than $50 million for a 1960\u2019s Ferrari 250 GTO.<\/p>\n

Not all classics are good investments<\/strong><\/p>\n

According to\u00a0Str\u00fcmpher, not all classic cars are a sound investment, however.<\/p>\n

\u201cIt takes a really deep knowledge of this industry and a lot of homework to know which ones will appreciate in value. Investment cars vary dramatically in price tag and returns, depending on their rarity and condition, and the size of the buyer\u2019s pocket,” he said.<\/p>\n

Classic car experts have outlined some tips on what types of classic cars will deliver the best return on investment:<\/p>\n