Investing in art... dos and don'ts

By Jennifer Hill

LONDON (Reuters) - Interest in art as an investment is on the increase, but there are a range of factors to consider other than what to buy.

They range from due diligence and tax considerations to insurance and maintenance.

Investors could otherwise find themselves with a worthless work of art, facing legal action from a previous owner or a huge tax bill.

"People often neglect to treat the purchase of a painting like they would the purchase of other major assets," says Pierre Valentin, head of the arts and cultural assets team at City law firm Withers.

"It would be rare for an individual to spend a million pounds on a property without turning to independent experts first, to verify the price and viability of the investment.

"Yet many people invest in art for the first time without first ensuring that its history, its seller and its value have been verified," adds Valentin, who was European counsel at auction house Sotheby's for six years.

So here is our "dos and don'ts" guide to investing in art.

* Do... seek potential investments from both auction houses and private dealers. If you choose a dealer, ensure they belong to a professional association.