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Birkin Bag vs Property — which is a better investment?

(Source: www.99.co)

Of all the possessions seized from former Malaysian Prime Minister Najib Razak’s homes, his wife Rosmah Mansor’s 284 boxes of luxury handbags is what really got the internet abuzz. Most of these boxes reportedly contains Birkin bags (of the French high fashion label Hermes). A single Birkin bag can cost more than S$400,000 — about the price of a four-room HDB flat in Woodlands!

Even if you take average price of a Birkin bag to be around S$210k, the combined value of Rosmah’s collection would come close to S$60 million. With that sort of money, you could easily afford a large Good Class Bungalow in Singapore — and still have spare change for a dozen bodyguards.

What’s more, a study has claimed that the Birkin bag is a better investment than stocks and gold. Over a 35 year period between 1980 and 2015, the S&P500 (a US stock index) and gold had average annual returns of 11.66% and 1.9% respectively. In time same time frame, the Birkin bag offered the lucky owner an average annual increase in value of 14.2%! Plus, the study claims that unlike stocks and gold, the value of Birkin bags has never fluctuated downwards.

Should I cancel my viewing for a Birkin bag?

But lest you feel tempted to cancel your VVIP preview for this weekend’s condo new launch in favour of some leather carriers, think again. Consider this: in just 15 years, average per square foot (psf) prices of freehold non-landed private homes in prime District 9 has appreciated by 180%. In Woodlands (District 25) where private property is less sought after, average psf prices have managed to rise even more in the same period: 187%!

All of this goes to show one thing: unless you have a serious obsession with Birkin bags or can’t buy a condo without being raided by the authorities, property remains the number one investment in Singapore for long-term capital appreciation.

And, besides, your dog can’t tear your house to shreds.

Need more convincing that properties win out over Birkin bags? Just look at this:

Birkin bag property value infographic

 

If you found this article helpful, 99.co recommends 9 quick property hacks to spot a good investment unit and Key considerations to keep in mind for all homebuyers.

Find the home of your dreams today at Singapore’s largest property portal 99.co!

More Info: www.99.co

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