Home is where the art is (unless it’s in a SMSF)

Is art a good investment, or should you buy only for personal pleasure?

Mosmanites mostly buy art to display at home; however, some turn to art as an investment that offers good growth prospects. And just as you need a good real estate agent by your side when investing in property, so too do you want the security of a reliable and trusted art dealer.

History of art and artists in Mosman

Mosmanites revel in the knowledge our beautiful suburb was chosen by artists back in the 19th century. Due to the Depression of the 1890s, Sydney experienced an acute housing shortage similar to today. Many artists, inspired by European Impressionists and plein air painting, chose to live at one of the artist camps in Mosman set up as studios and accommodation.?

Camps such as Curlew Camp on Sirius Cove were home to some of Australia’s best-loved artists, including familiar names like Arthur Streeton,Tom Roberts, Charles Condor, Elioth Gruner and Sydney Long.

Choosing art for your Mosman home

According to Cara Breytenbach from SOHO Gallery , 710 Military Road, you should be mindful of your home’s style – traditional, contemporary, Hamptons – and choose your artwork to fit your space. For example, if your home is Hamptons themed, with beachy blues, greys and sand, traditional oil paintings or a painting with lots of red and black might be too heavy. On the flip side, if you’ve chosen a more traditional décor, then those landscapes and portraits will sit easily within your home.?

However, notes Cara, “Whatever you choose should resonate with you. Your art should evoke a beautiful memory and an emotional reaction”. Cara continues, “When you talk to the artist, it’s advisable to understand the background of the artist as well as the thought process behind the artwork. Once you or a prospective purchaser understands the viewpoint of the creator, then your emotional attachment to the work is heightened.”

Size is another consideration. Your large blank wall might be perfect for an oversized piece; alternatively, you could create a gallery wall with many smaller pieces.

Need help? Take advantage of the design service that SOHO Gallery offers. One of their representatives will meet with you and your interior designer to scope your wall and sculpture space, discuss the general design theme, and then return with a proposal and some artwork suggestions.?

It’s also good to remember that for the past 40 years, SOHO Galleries director and curator Nigel Messenger has been building relationships with Australian artists, many of whom will happily take on a commission from Mosman homeowners.

And once you’ve bought your beloved artwork, SOHO Gallery can help with bespoke framing. They can also assist with the conservation and restoration of existing artwork through their trusted specialists.?

Understanding art

If you’re new to the world of art, especially modern art, and want to learn more, I recommend reading the ‘bible’ for modern art lovers, The Shock of the New by Robert Hughes, or see if you can get hold of the TV series of the same name.?

Failing that, it’s worth heading to Mosman Art Gallery to talk to a curator or attend an opening where you can talk to an artist. An ideal opportunity might be at the Mosman Art Gallery Art Prize. Since 1947, this prestigious award has been conferred on many prominent Australian artists – Margaret Olley, Grace Cossington Smith, Tim Storrier, Jenny Sages and Nicholas Harding to name just a few.?

To talk to local artists, you can also visit Headland Artists , a community of painters, sculptors, potters and photographers occupying a collection of old military buildings at Georges Heights.? The studios are open to the public three times a year, allowing you to talk to the artists and purchase their work.

Do you love art or simply want to invest?

If you ask any art dealer, they’ll tell you not to buy art purely as an investment. Your ‘return on investment’ in art should come from your enjoyment of the artworks rather than purely financial gain. However, that isn’t to say you can’t purchase an artwork that you love that will, in time, appreciate in value.?

The easiest way to learn more about the type of artwork that is likely to improve with age is to attend an auction. Auction houses for fine art include Deutscher and Hackett and Menzies , where works by favourite Australian artists such as Jeffrey Smart and Arthur Boyd achieve above estimates in ‘hammer prices’.

Affordable ways to buy art

If the thought of shelling out $400k for a Jeffrey Smart piece is a bit much, then you have alternative ways of purchasing art. Masterworks , a platform that enables anyone to invest in blue-chip artists like Picasso, buys and sells art and tracks performance against the S&P 500. Closer to home, ArtMoney , founded in 2015 by Australian art entrepreneur, Paul Becker, enables buyers to purchase art from 1,500 galleries globally, interest free and pay over 10 months.

Your SMSF and art

If you run your own super fund, it’s important to remember art in which you’ve invested on behalf of your SMSF has to be stored rather than displayed in your home. This might seem like a terrible waste, but those are the tax rules. The art in which you invest must be ‘an allowable investment’, and careful storage and insurance must be considered as part of your SMSF investment strategy. The ATO makes it clear that artwork investments must be for the basic aim of providing for the member’s or members’ retirement. This means that your artwork must be able to be sold, and you may not exhibit the art in your home.

If you’d like to discuss selling your Mosman home or the local real estate market, please get in touch .??