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.

16 Comments on Investing in Luxury (Part Two)

  1. Didi
    February 2, 2013 at 2:48 pm (5 years ago)

    I am with you on designer bags not being an investment. I don't have a designer (big name) leather bags with me, but I have leather bags, which I would say are expensive to maintain. It is a pain to see them stained, but I want them keep them in tiptop shape, so I did spend to have a bag cleaned and restored that actually cost more than my bag :s I'm sure, when push comes to shove, I won't be able to sell them at par with the price that I bought them.

    I just really wish people would be wiser with how they spend their money. I don't have a problem with owning designer bags…as long as you can REALLY afford them (without taking bank loans or getting into credit card debt just for it).

    Reply
  2. Jillsabs
    February 2, 2013 at 3:04 pm (5 years ago)

    True. Luxury is well and good, but if you have to go into debt for it, then maybe it's not yet time for you to indulge in the good life.

    Reply
  3. Dea
    February 2, 2013 at 11:30 pm (5 years ago)

    That article was disturbing.

    For me, part of the luxury experience is walking into the store and paying for an item in full and walking away with your purchase in a nice paper bag. Buying second-hand while starving yourself to pay for your item on installment is NOT luxurious at all.

    Good thing I'm not into designer bags.

    Reply
  4. Personal Finance Apprentice
    February 2, 2013 at 11:30 pm (5 years ago)

    So true. it's weird when people quote the resale value as a positive.

    For guys, it's cars. They'll buy a nice, obviously-for-pogi-points car and quote "safety" and "high resale value" as considerations over the reasonably-priced-gets-the-job-done but not pogi-enough car (and then drive like maniacs or hot-heads).

    If they like their luho, so be it. But hopefully they don't believe their own spin.

    Reply
  5. Jillsabs
    February 3, 2013 at 12:15 am (5 years ago)

    Or they don't fall prey to people with vested interests who push designer or high priced items under the guise of investments.

    Reply
  6. Jillsabs
    February 3, 2013 at 12:19 am (5 years ago)

    I'm totally with you on that, but at the same time, I also get why some people want a piece of luxury in their lives, even if they can't presently afford it. I guess it's the comfort and the promise of better times that item signifies that makes it worth the sacrifice.

    If that item will push them to work harder and smarter, then maybe it's well-worth the price and effort. Although I do hope that they'll get over their infatuation with expensive things after a while. Because no matter how it's packaged, marketed or how it makes you feel, it's still just a thing.

    Reply
  7. Anonymous
    February 3, 2013 at 9:48 am (5 years ago)

    I was looking at an LV bag at a pre-owned bags seller yesterday. The sales lady was saying, "it's almost brand new…P68,000, the brand new price is P88,000…" Good thing I'm not into designer bags either. I'd rather put that amount of money in a mutual fund or the stock market and watch the value appreciate over time 🙂

    Reply
  8. Jillsabs
    February 3, 2013 at 9:52 am (5 years ago)

    The way I see it, in a transaction involving second hand bags, the parties that benefit financially are the buyer (who buys at a discount) and the broker (who gets a commission). The seller always unloads her bag at a loss.

    Reply
  9. The Thrifty Chick
    February 3, 2013 at 10:57 pm (5 years ago)

    I don't have any expensive designer bags, I like my Secosana just fine. For me, if you like it and can afford it without getting into debt/breaking a bank/starving your family, then why not. But investment-wise, I don't think so. It'll just make you feel good, but I haven't seen a second-hand bag sell for more than its original price.

    Reply
  10. Jillsabs
    February 3, 2013 at 11:11 pm (5 years ago)

    Sometimes feeling good is enough reason to splurge on something. Of course, you might not feel as good after weeks of eating crackers, but if that's what rocks your world, so be it.

    Reply
  11. Anonymous
    February 5, 2013 at 4:23 am (5 years ago)

    Should I have the means, I would buy at least one luxury bag. Pero chaka naman na naka LV bag ako tapos araw araw nakasakay sa mrt. haha.

    Reply
  12. Jillsabs
    February 5, 2013 at 4:26 am (5 years ago)

    My dad used to say kahit fake ang Lacoste shirt mo, basta nakasakay sa BMW, mukhang genuine na rin ang tshirt mo:p

    No connection really with your comment, but it reminded me of what my dad said before hehehe

    Reply
  13. Anonymous
    July 11, 2013 at 5:00 am (4 years ago)

    Obviously an opinion (or rather a blog) of an insecure, impoverished girl. Get back to me when you're living the life of Warren Buffett or Carlos Slim and having lunch with Bernard Arnault.

    Reply
  14. Jillsabs
    July 11, 2013 at 5:02 am (4 years ago)

    Obviously the comment of a sad sap who doesn't even have the courage to write down his/her real name and must hide behind the cloak of anonymity.

    Reply
  15. Isabel
    October 2, 2013 at 7:57 am (4 years ago)

    This is absolutely true, but it's only my opinion. 🙂
    I admit I own a few, but yon nga, I buy it for my own pleasure, not for anything else. And I only buy when I am absolutely 101% sure that I am not making any sacrifices for it. I mean that it will not in any way affect how I live my life. Hindi ako mangungutang for it, hindi ako magtitipid for it, hindi ako magugutom for it. Like, only during times na I really have disposable money na if I don't buy, I know na mauubos ko rin naman yong pera unconsciously with a little bit of this and a little bit of that so might as well di ba? Although, may justification naman din ako, I tell myself "this is for all the Mango and Zara bags I liked but didn't buy" 🙂

    Reply
  16. Jillsabs
    October 2, 2013 at 8:02 am (4 years ago)

    Beauty is its own reward, no need to justify your luho when it's bought with your hard-earned money (unlike a certain someone that rhymes with Papet Papoles:p)

    Reply

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