Fine Wine Investment - Important Points
Investment term - We recommend a minimum investment term of five years, with maximum returns arriving between eight to ten years and more. The past two years have seen significant returns realised in the short term but this should not be considered the norm.
Growth Rate - Traditionally the correct wines can accrue between 8-15% compound interest. Again, some wines have accrued this type of percentage in a matter of months over the past couple of years but again this should not be seen as typical.
Storage - BB&R will sell the wine to you in bond (i.e. excluding duty and VAT) and store it for you under bond. Current storage costs are £9.00 per case per year, which includes insurance at replacement value. Wines are stored in our own temperature and humidity controlled facility.
Selling - When it comes to selling the wine, you would sell under bond, thus avoiding paying the UK duty and VAT. You are not bound to selling the wine to BB&R though most customer do. There is no fee for this service: BB&R will offer you a price below the market selling price in order to re-sell the wine at a viable market rate.
Capital Gains - BB&R are able to offer you advice as to which wines to buy given our experience in the market. We do not offer financial advice and we suggest you speak to an IFA regarding tax implications, especially CGT. Wine is theoretically exempt from CGT charges as it is classed as a 'wasting asset rather than chattel'.
Provenance - Success in wine investment hinges around provenance - i.e. perfect stock from reliable sources. BB&R ensure that this is the case by purchasing wines from reliable, proven sources (as often as possible direct from source).
Investment Amount - The minimum investment amount (in order to ensure flexibility of the portfolio) is around £5,000. Given the nature of the market at present, the best returns can be made on the top-end, blue-chip wines such as the 1st growths of Bordeaux from the best vintages. Prices per case of these types of wines start at around £2,000-£3,000 per dozen and go up to around £10,000 per dozen.