Yachts are unlike most other lifestyle purchases, because they exist on the intersection of ownership and experience. A yacht satisfies our desire to own something beautiful while simultaneously providing us with experiences that we treasure for years. With that being said, purchasing a yacht an investment, or are yacht expenses too high?
There’s no doubt that owning a yacht is a lifestyle choice. Not everyone who can buy a yacht will buy a yacht, and only a select number of those captains will truly use and enjoy their yachts.
Joining the millions of other captains across the world who love their yachts is priceless.
Which brings us to the most important thing to consider before buying a yacht: Why do you want to own a yacht?
The First Thing to Consider Before Buying a Yacht
Yachts are always an expense, and always an investment. The real question is why would you invest in a yacht, and what kind of pain tolerance do you have in terms of yacht expenses?
The truth is, the yachting life appeals to some, and is suited for far less. You should only buy a yacht if you’re going to use it. Unlike fast cars or beach houses, yacht demand to be used and yacht maintenance services are necessary if you hope to keep it floating in the near future.
Yachts as An Investment
There’s a great article in the Washington Post that plays with the idea of yachts as an investment. This quote perfectly captures the right mindset:
Let me suggest better advice than “never ever buy a boat.” Try the following: “Don’t buy things you cannot afford, won’t actually use and that could cause you more pain than pleasure.”
First, let’s talk about how buying a yacht is an investment. There are a number of ways in which we can consider a yacht an investment laid out below, and each point corresponds to the reason you bought a yacht in the first place.
Regardless of how you use it, owning a yacht is an asset when you make it an investment. The truth is that yachts are a depreciating asset, like a sports car. Though there are far more costs to maintain a yacht than a sports car, but the sentiment is the same.
If you’re investing in the experience, then owning a yacht is right for you. It may be hard work, but the memories you’ll make on every trip and on every night that you spend on your yacht, it’ll be worth it. The question you need to ask yourself is how often will you use it? Be realistic when you answer this question. Try to stay on your yacht for at least one long weekend every two months. Take it out on short trips, too.
You can charter a yacht for a yearly trip and save a lot of money, time, and frustration. You have options!
Sign of Status
For business owners, a yacht is a status symbol. It’s a ticket into a club, as well as a sign that you are a part of the few that get it. It’s also great for meetings, schmoozing clients, and even employee retreats if you’re so inclined.
Buying a Yacht to Live On
Yes, you can actually get practical use out of owning a yacht as well. Though buying a yacht to live on is its own set of challenges. There are pros and cons when living on a yacht.
Make Money Flipping Yachts
This is specialized niche, and not for the faint of heart. We recommend anyone thinking of flipping yachts to have a lot of experience in either yacht maintenance and repair, or yacht markets and sales.
Advice for Those Seeking Luxury Yachts
If you’re looking to purchase a luxury yacht or mega yacht, then check out Boat International’s guide. The article discusses working with yacht architects to create a custom yacht and other factors to consider when buying a luxury yacht.
Buying Your First Yacht
Deciding if a yacht is an investment or expense occurs when you’re in the should I buy a yacht phase.
We have created a first timer’s guide to buying a boat, for those inclined to purchase their first vessel.