Turning your wine into wealth

INVESTING in wine can be a risky business -- especially if you don't padlock the cellar, writes Erica Thompson.

Wine / File

Turn wine into wealth

INVESTING in wine can be a risky business -- especially if you don't padlock the cellar.

"Profits can too easily be consumed," says Brett Heading, owner of winery Clovely Estate, which has a wine centre at Red Hill, in Brisbane's inner west. "Particularly after 8pm on a Friday."

Even if you manage to resist sampling a drop, making money out of wine isn't as simple as it sounds.

"Those who make a killing on the ASX don't usually do it by accident. With wine, it's no different," he says.

Research what you want

"You will need to research your purchases, thoroughly learn the system, the margins, the prices and the rules."

Luck also plays a large part in determining whether you end up with a $50 bottle of plonk or a $50,000 bottle.

"You're trying to find wines that aren't rated highly today but will be in a couple of years' time," he says. "That's not easy."

Mr Heading says potential wine investors should stick to established brands and high-quality vintages. Don't invest all in one vintage -- diversify.

Buy from the winery

"Purchase your wine from reputable agents or auction houses or better still, direct from the winery," he says.

"Magnums and large-format bottles are popular amongst collectors and regularly achieve higher returns."

Keep safe

How the wine -- or more importantly the bottle -- is looked after will have the biggest influence on whether you fetch top dollar at sale time.

"Wine is a perishable thing that is only as good as the way it has been kept or transported," Mr Heading says.

"A cellar has to be 14 degrees Celsius or below and constant. It also has to be around 65 per cent relative humidity.

"You will need to spend appropriately on cellaring -- either for yourself or through a commercial facility."

Mr Heading says if you pick the right wine you'll make very good returns, but without the research "you're better off simply getting great enjoyment out of drinking it."