Art Equity

boa · Joined: 26 Sep 2008 Posts: 14

Does anyone have any SENSIBLE comments on investments from a company called Art Equity - the previous thread seems to be full of jokes.

Have people invested money and showed a return?

Steve Gray · Joined: 17 Aug 2008 Posts: 1569 Location: Geelong

tried googling to see what comes up? art is generally a longer term investment.

Stefan Maguran · Posted: Fri Jun 12, 2009 9:35 am Post subject: Re - Art Equity

And personal. Look up Four Corners for art invetment and its risks.

gazman · Joined: 12 Jun 2009 Posts: 1 Location: Sydney

I purchased a rental portfolio off Art Equity four years ago. Probably paid to much but I don't know. I received rent for 2 years which was part of the contract. I wanted to sell the art after that but they advised me to store it so I stored it for another 2 years and paid them a fee for that. It has now come up for renewal and I am trying to arrange to get it sold.

Art Equity are in contact with an auction house and will get back to me with estimates.

I will let you know if I get the art sold and if I make any money out of this.

Stefan Maguran · Posted: Fri Jun 12, 2009 1:35 pm Post subject: Re - Art Equity

While I cannot comment on specific cases, I would strongly suggest, if you want to invest in art to do your homework.
Blogs like this may help:
http://artofcollectingart.blogspot.com/

ARTARTA · Joined: 16 Jun 2009 Posts: 1 Location: Canberra

I heard someone mention you were having a festival soon Stefan?

Stefan Maguran · Posted: Tue Jun 16, 2009 5:19 am Post subject: Re - Art Equity

Don't mention it!

boa · Joined: 26 Sep 2008 Posts: 14

Hi -

So, nobody has been able to confirm that they actually made any money from an Art Equity investment?

Most paintings they are selling seem to be priced much higher than resale value (auction), or am I wrong on this? Please let me know if there are any artists they are selling priced at around resale value.

Steve Gray · Joined: 17 Aug 2008 Posts: 1569 Location: Geelong

hey is there a scam in this... "send me $10k and I will send you an artwork and $5k as a vip discount... it looks lie a 10k asset but you really only pay five K."

hmm...

Stefan Maguran · Posted: Sat Oct 03, 2009 4:24 pm Post subject: Re - Art Equity

boa · Joined: 26 Sep 2008 Posts: 14

Hi

I should stress that I have NO problem with art galleries selling art well above resale value - in fact, most galleries do this! People art (and colour TVs) for enjoyment, and resale value is of no consequence.

So if an art gallery is selling paintings by, say, Artist Geoffrey D., for $20 000, and these have a resale value of $3000, this is fine - as long as buyers are not being led astray by claims that they are buying a good investment. But if buyers are being told it is a good investment, I think this is wrong!

The above comments should be taken as generic comments, I do not know what sales pitch individual galleries use, and so it does not apply to any particular gallery.

randall · Joined: 16 Jan 2012 Posts: 2

I did purchase an art rental portfolio from Art Equity a number of years back and in my opinion looking back I was suckered by a good sales pitch and complete inexperience in the art market. I received rent for 3 years then looked into selling them and found out I may be lucky and sell them for one tenth their stated valuation price at time of purchase. I have been looking at avenues to sell the pieces ever since without luck.

I was clear with the sales person that it was purely an investment and (obviously) I was not told I would likely lose my money. Without having a transcript of the sales pitch I remember a time frame of 5 years being mentioned that art should be held on to. If I was told there was a high possibility of me not getting my original purchase price back in 5 years I would never have signed the agreement.

Perhaps in another 20 or 30 years or so when the artist is no longer around then my pieces might be in demand and I might get my money back but by then the buying power of the original purchase amount will probably buy me a nice dinner.

Needless to say I will never be dealing with Art Equity again.

Hope my experience proves helpful to others and if you do purchase a rental portfolio through Art Equity that you have more luck than I have had.