Is buying a yacht a good investment?
Owning a luxury yacht is a lifestyle choice.
Spending time with family and friends on board your yacht, enjoying the scenery, basking in the sunshine, a glass of Krug in hand is precious time you’ve earned. But how can you be sure owning a luxury yacht a sound financial investment?
Did you know that the ongoing upkeep and maintenance costs of your yacht will probably equate to about 10% of the price you paid for it?
The good news is that you shouldn't be subjected to the same level of depreciation you’d expect from buying cars and more traditional boats. Luxury yachts, if well maintained, do tend to hold their value. But well maintained is the key phrase here! As with anything, certain models, yacht designers, marine architects, boat builders and manufacturers are more desirable than others, highly sought after, respected and valued brand names who attract a certain audience, a certain price tag!
Talking to an experienced and well-respected yacht broker will help clarify whether the yacht you’re considering, is one more likely to hold its value when sold on.
If you’re thinking of purely the £ signs and potential investment purposes, we wouldn’t necessarily recommend buying a yacht ahead of bricks and mortar or land. A yacht’s value depends hugely on whether it’s been properly maintained, and high-quality, well crafted maintenance comes at a price. The luxury yacht market is complicated, it’s about making sure those floating assets retain their value rather than depreciating and that takes commitment from the owner, captain and crew to look after them.
Certainly talking to industry experts and yacht brokers in the know will help you make a wise yacht purchase or investment. Owning a luxury yacht doesn’t have to be a bottomless pit! There are ways you can offset or reduce the inevitable operational costs.
One option is to retain a professional yacht management company. Their role will be to help protect your investment capital, making sure your yacht is properly serviced and maintained. A reliable and well-respected yacht management firm could save you up to 30% of your operational costs and dock fees. Whilst also investigating the option of adding your yacht to a reputable charter fleet.
Charter your Yacht
There are pros and cons to chartering but broadly speaking, yacht charter is a route many motor yacht owners take to help cover their operational costs.
As a general rule, putting your yacht up for charter is a good way of covering the cost of dock fees, insurance and routine maintenance. It also ensures your yacht has a higher profile when you come to sell later on and want to ensure a good return on your original investment. Yachts that are available for charter are much more attractive to potential buyers looking to find a way to “try before they buy”.
How do I secure a good Return on my Investment (ROI)?
Getting your money back is the key driver when it comes to getting a return on your investment, but if you think of buying a yacht as more than just a financial investment, you’ll gain in so many other ways. Mentally, physically, psychologically, geographically....
Time away from the maddening crowds, gliding through crystal-clear waters, enjoying the tranquillity of remote and distant places, your every whim tended to by a full-serviced, well-briefed crew. Quality time at sea with family, friends - memories to treasure. That’s a return on investment that’s hard to quantify. A ROI that’s hard to beat!
If you’d like more information about recruiting crew onboard a motor yacht please get in touch today. With access to nearly 70,000 yachting professionals worldwide www.yotspot.com enables you to hire people quickly and efficiently. Post a job or search the Yotspot database to find onboard crew and people ashore for all your maritime and yachting needs.