In recent years, financial advisors and analysts have established that art, cars and wine are some of the smartest and most lucrative investments that you can put your money into. Juan Manuel Fayen, the founder and CEO of the Miami-based luxury suites project for collectors, CollectionSuites, is an avid supporter of this theory. “Beyond a hobby and a passion, investing in collectibles like antique cars and art will yield profitable results when done under the right circumstances,” says Fayen.
The volatility that the stock market has shown in the last 5-10 years has created a fair amount of uncertainty amongst its stockholders, while those who have purchased luxury cars, rare wines and unique art pieces have seen steady growth in their investments. Unlike the stock market, which depends on external conditions, a collectible only becomes rarer over time, increasing its demand. Fayen, who has been a longtime car collector himself, has seen the benefits of investing in his passion.
“You compare the price of a collection car with the same amount you invested in the stock market, and there’s a huge advantage if you invested your money in the car,” explains Fayen. As the Wall Street Journal stated, “Luxury assets, including wine, art, classic cars and fancy colored diamonds, have outperformed stocks and bonds this year.”
Juan Manuel Fayen shares a few tips on how to build a well-rounded collection that will gain value over time. First, similarly to the stock market, he says it is essential to diversify your investments, “diversification is good because you cannot put all the eggs in the same basket.” Second, it’s to do your research and educate yourself on the car, wine or art piece that you want to acquire. For instance, as an automobile industry expert, he says that Ferraris should be on every collector’s list “Ferrari is the number one for everybody who knows a little bit about collecting cars,” says Fayen. “If you want to invest in cars, you need to have at least one Ferrari,” he added.
Lastly, Fayen states that it is critical to find an advisor or expert to guide you on your investment. “You don’t specifically need to have a mechanic with you,” he explains. “What you need is somebody who knows about these matters. It’s crazy to buy your first car, without having somebody helping you make a good decision.”
Storing these collections in a secure, private, and climate-controlled space is essential to preserving their quality and value. This, combined with providing ultimate comfort and a lifestyle suited for the most demanding collectors, inspired Juan Manuel Fayen to make CollectionSuites a reality. Fayen envisioned a space where collectors could embrace their passion while also providing a great investment opportunity in a property that, just like the collections it houses, will gain value over time.
Presented by CollectionSuites
We set out to create an unparalleled experience for a private community of collectors, who share a lifestyle driven by unlimited passion. Our complex includes 38 suites built on innovation, privacy, and exclusivity. Our goal was to offer collectors an exclusive space where they could store and admire their most prized collection.