Invest in a portfolio of highly desirable wines
Invest in fractionalized rental properties
Investments
$35,000
Minimum investment levels start at $35,000 for the Premier Cru tier and go up to £1 million for the Black Tier.
Moderate Risk
3/5
Investing with Cult Wine Investment involves market risks, potential fluctuations in wine prices, and variable liquidity, which could impact the value and sale of the assets.
Moderate Risk
3/5
Investing with Lofty carries typical real estate investment risks, including market volatility, economic changes, and property management challenges. Additionally, the use of cryptocurrency and tokenization presents legal and regulatory uncertainties.
Minimum Liquidity
1/5
Cult Wine Investment allows for portfolio liquidation, typically within 8 to 12 weeks, through sales to global trade, collectors, and consumers.
Moderate Liquidity
2/5
Lofty provides liquidity by allowing investors to list their property tokens for sale on the marketplace at any time, with a 2.5% transaction fee. Orders are held in escrow and have a 30-day expiration.
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Moderate Return
8 %
Cult Wine Investment has achieved a compound annual growth rate of 8% since 2009.
Low Return
5 %
Lofty offers a 5% cash on cash return, with token values updating monthly based on HouseCanary's Automated Valuation Model (AVM).
Long-term Investment
3-10 years
Cult Wine Investment advises a 3-5 year minimum investment term, ideally extending to 5-10 years for optimal results.
Short-term Investment
1 year
Investment time horizon on Lofty is not fixed and is determined by property owners' collective decision on when to sell through the governance system.
Who can invest
International
Cult Wine Investment accepts investors worldwide with no geographic restrictions. Minimum age requirement: 18 or legal drinking age in your country.
Who can invest
International
Investors from the US and abroad can invest with Lofty, excluding those from OFAC-sanctioned countries.
Moderate Volatility
3/5
Fine wine values can fluctuate due to various factors, resulting in lower volatility compared to traditional markets, yet still subject to changes in market conditions.
Moderate Volatility
3/5
The value of assets on Lofty's platform can be volatile, influenced by economic trends, interest rates, and real estate market conditions, potentially leading to variable financial outcomes for investors.
Regulation and audits
Not Regulated
Wine investment is not regulated by financial authorities such as the Financial Conduct Authority or the Securities Commission.
Regulation and audits
Audited
Lofty's marketplace transactions are executed using a smart contract on the Algorand blockchain, which has been audited by CertiK for security.
Insurance
Yes
Cult Wine Investment's stored wines are fully insured against physical loss or damage, kept in a secure facility near London.
Insurance
No
Lofty's specific insurance details are not provided, but properties on investment platforms are usually insured against physical damage.
Payouts
Rental Income
Lofty provides daily rental income to investors, which can be withdrawn at any time through various methods including ACH, PayPal, and cryptocurrency options.
Withdrawals
To receive funds from Cult Wine Investment, investors sell their wine, typically within 8-12 weeks, and then the proceeds are returned to them.
Withdrawals
Investors on Lofty can sell tokens anytime on the marketplace and withdraw proceeds using methods like bank transfer, PayPal, or cryptocurrency.
Extra Fees
No
Cult Wine Investment charges an annual fee based on the investment tier, with the Premier Cru tier at 2.75%, Grand Cru at 2.50%, Cult Cru at 2.25%, and Black Tier at 2%. Fees are divided into monthly payments calculated from the portfolio's end-of-month value, rather than an annual lump sum.
Taxes
Annual Statement
Cult Wine Investment assists with tax documentation upon request or through a Relationship Manager for higher-tier investors.
Taxes
Tax Form
Lofty provides US residents with pre-filled 1099 tax forms for income and capital gains reporting. Non-US residents may reduce withholding taxes with forms W-8BEN or W-8BEN-E if they have a US SSN or ITIN.