Investing in Luxury (Part Two)
I tried very hard not to be smug, but while reading this article on designer bags* in the Inquirer, I couldn't help but say: "I told you so!" and then smirk. Yes, I can be a little smug SOB (DOB?) when I feel like it.
Reading the article confirmed my theory that designer bags do not appreciate in value, as explained by a bag reseller:
"They’re leather and they’re hard to maintain,” she explains. If unused and not aired regularly, leather becomes brittle and deteriorates. “And unlike jewelry they don’t appreciate in value.”
In case I get misinterpreted again, I would like to clarify that I have nothing against designer bags and other luxury items, as I too have my own luho, with jewelry being my poison of choice.
But when it comes to investing, you can do so much better than plunking your money down on branded items. Sure they have a resale value, but if you can only recoup 30%-50% of what you originally paid for (even if it makes you feel like a superstar), then how on earth does that become an investment?
So buy your branded bags and shoes because you enjoy them, because they're your reward for all your hard work. However, putting a spin on them as investments is just your guilty conscience trying to justify your hefty purchase. Pay no heed to that nagging voice and clutch that bag proudly. You earned it honestly and now you will enjoy it. You do not have to explain yourself to anyone. That's all there is to it.
*The article is actually an interesting read on how women can get obsessed with designer bags and the backyard industry that second hand bags has spawned. Personally, I don't get the whole designer bags bit but that's because I'm not into bags. However, just a few minutes at Tiffany's where I can ogle at the pretty baubles will leave me smiling all day long. Again, to each her own. Walang basagan ng trip.
**Read my first post on Investing in Luxury here.