Why Are Custom Wine Cellars And Wines Great Investments?
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When people think of wine cellars, the image that appears before them is that of an old, haunted, historic, underground hall, with huge cobwebs woven between wooden barrels. This image is in keeping with the traditional European approach, where centuries-old cellars containing the finest Italian and French drinks await tourists. However, it wouldn't be easy to replicate it in an urban area. This is what brings modern, in-house wine cellars to life. In this article, we will introduce you to why these solutions are great investments.
What are modern-day wine cellars?
Wine cellars have evolved from being an underground basement room full of barrels to innovative products that are custom-built to fit your home, regardless of it being a house or an apartment.
Modern wine cellars have three different parts:
• A shelving system to store the bottles in a transparent manner
• Glass walls to separate this space from the room
• An air conditioning system that establishes and maintains the proper temperature
Why invest in wine?
Wine cellars are only useful if you have bottles of wine to showcase and preserve for either future occasions or sales. Most wine collectors naturally become investors as well. When their cellars are full, they sell a few bottles and make substantial, often surprising profits.
Buying quality wines, especially French ones, have yielded higher returns in recent years than bonds, stocks, or even one of the most successful products of the last decade, gold. Wine indices, which are mainly composed of quality wines from Bordeaux, have shown an average increase of more than 20 percent per year during the last 5 years.
As wine becomes less and less simply a luxury item and increasingly serves as an investment vehicle, a wine exchange has already been set up in London and many wine investment funds are already on the market.
When it comes to wines, the old, famous, and well-seasoned specialty bottles are of great value. The price of good quality wines is mainly determined by the fact, that over time, their supply decreases. 90 percent of wines are consumed in the first year after they are produced, while the demand for luxury goods is increasing, which is the reason for the skyrocketing profits of investors.
In addition to the positive development in the past, the outlook is also promising: in the long term, further growth in demand is expected. The Sotheby's auction house, for instance, auctioned wine worth more than 92 million dollars in 2020. Demand for wine is boosted by the changing demographics of those interested in wine in recent years: While the average age of the clientele used to be between 60 and 65, it has now decreased to 40-45.
What do the best investment wines have in common?
The wine should be rated within the top 5% by one or more influential wine journals to be considered investment quality.
It is important to note that investment quality wines must be produced by wineries that have an unparalleled reputation, regardless of the consensus of critics. Newer entrants to the market are particularly affected by this.
It must reach its optimal maturity at least 10 years after bottling and should last at least 25 years. (Most non-investment wines are highly rated in their first year, and less than 1% last more than a decade).
Few (if any) investment-grade wines are produced in quantities greater than 20,000 cases.
How can wine cellars further increase the value of your collection?
Storing high-end wine bottles requires special equipment that helps preserve both the look and the contents. A custom wine cellar provides a larger space that allows homeowners to save money on storage.
Having the storage system in-house introduces a few other aspects:
Eventually, access to storage becomes much more convenient when it is managed in-house.
You have 24/7 access to your collection and can review any item instantly, giving you a high level of visibility.
Looking at the big picture empowers you to identify potential gaps in your collections, which you can improve by acquiring the missing items. This way, you will have a complete overview of your wine treasure and can organize it according to your future plans.
Seeing your collection as a whole also gives you pleasure as you enjoy the stunning visuals.
A high-quality, modern wine cellar increases the value of your property and opens the doors to a whole different audience, resulting in a faster sale.
How to choose the right contractor to build a custom wine cellar for you?
Just as wine requires fine taste and special care, so does the wine cellar require a professional skill. The wine cellar is so much more than simple shelving and air conditioning. An experienced contractor understands how a wine cellar fits into your current home design. Our wine cellar builders will help you plan the size you need (based on your current and future collection), create a design that is able to enhance the current look while choosing a smart climate control system that adapts to the needs of the contents. Creating and building the necessary parts is only a matter of weeks, depending on the materials you choose.
If you are looking for the best custom wine cellar for your home, check out our website, our gallery, and don't hesitate to ask questions about our wine cellar builders. We, at Innovative Saunas and Cellars Inc., are more than happy to provide you with the best solutions available.
