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Thailand |
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113/4 M.1,
Bantai Road,
Koh Phangan,
Surat Thani, 84280
Tel: +66 (0)77 238 771 |
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Australia |
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Fad
Galleries
14 Corrs
Lane, Melbourne
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Investing in Art |
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Investing in Art can
be an enjoyable occupation or it can be difficult if the value
of the artwork is not clear and you as the investor do not have
the knowledge of the artist or the artwork. For most art, there
is no clear cut valuation for a painting other than the
valuation that is clearly set at the price that the general
buying market is prepared to pay for it, it is not necessarily
the price that the seller will part with it. In the end it is
subjective.
120x 120 cm untitled
acrylic on canvas painting by
Wallaya Rattanapirom
was acquired in Nov 2006 for $320 and sold in Thailand in Jan
2008 for $560, a one year gain of 75% |
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Investment Parcels |
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US$50,000 per parcel will
establish your art portfolio with Blue
Bar Gallery. You decide the average artwork purchase
value and leave the rest to us. For a small fee, investments
funds can be received by our lawyers. Please contact us by email
to find their contact details.
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How can you make money through art investment?
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The Purchase |
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The Purchase.
The value of original art works
acquired for our collection ranges from $300 to $10,000. As an
investor, we would purchase art in Asia on your behalf taking a
buying commission of 20%. Under normal circumstance, art would
be sold through a gallery at 30 to 40% commission so already you
have made a saving on the purchase. A certificate of ownership
will be provided to you as the investor along with an agency
agreement for Blue Bar Gallery to manage the rental and future
sale process. |
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Rental Income |
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Rental Income aims to recover 20% on
of the value of a painting or work of art per year. For
instance, if we purchase a piece from Thailand at say $1000 and
then ship it to Dubai we may incur an import tax and shipping
cost of 15% of its nominal value. Along with our commission the
piece has an arrival cost of $1250. We would revalue the
painting according to the Dubai Art market at say $2500 offer
the piece for rent at $500 per year that we as agent would share
50-50 with you as the investor. This would continue for as long
as the work is being rented. We would nominally revalue
paintings with a 10% annual increase in value for its rental
purposes.
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Sale of Artwork |
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The Dubai art market is more
sophisticated than the sale process through an Artist's studio
in Asia, coupled with the increasing demand and shortage supply
of fine art paintings, normally the first sale price through the
gallery offered at 2 times to 3 times its acquisition price.
Works contained in the rental library will be offered for sale
to rental clients with a rebate of 3 months of the rental paid
out during the period. In any other event, all art works will be
constantly offered for sale according to demand. Blue Bar
Gallery will take a 20% commission on the sale price, the rest
is returned to you. The table below is an indication of the
possible returns on this example.
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Example of Art
Investment and Rental Strategy |
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The following example is for a single piece of art. At
the acquisition price indicated, a $50,000 portfolio
acquired through Blue Bar Gallery would include
approximately 36 similar works of art. |
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Example |
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price for 36 paintings |
36,000 |
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Commission |
7,200 |
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| Shipping,
Insurance and Landing costs |
5,400 |
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Your Initial Investment |
48,600 |
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Revised rental
value |
97,200 |
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Typical Rental $19445 for 4 years |
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77,770 |
| Rental
Commission 50% |
38,880 |
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| Sale price
as revised 10% pa |
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142,310 |
| Sales
commission 20% |
28,460 |
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Return to investor after 4 years |
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152,470 |
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Investment
gain* |
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104,140 |
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Overall percent gain after 4 years* |
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314% |
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*The above
illustration is an example only and may vary
significantly dependant upon prevailing economic
conditions and terms offered during the rental and sale
periods |
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Investment Parcels |
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Budis Blue
- 140 x 120 cm acrylic on Canvas is typical of the works being
acquired for rental purposes. This noted Thai artist has
exhibited internationally as well as many times in Thailand.
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