Buying a yacht should be a lifestyle choice, not just a financial decision. If you love the ocean and dream of spending your days on the water, then a buying a yacht is a great investment in your own happiness which is impossible to put on a price on. However, if you want to learn more about what type of investment you can expect when buying a yacht, read on...
While purchasing a pre-owned yacht is similar to buying a house, the market for yachts is far more complex than real estate. Ultimately it is market based on high value assets that do tend to depreciate, unless they are properly maintained, and that maintenance can be very expensive. You can expect to spend at least 10% of the cost of your boat on upkeep and maintenance every year.
Offsetting Maintenance and Expenses
Will all that in mind, buying a yacht isn't an automatic "money pit" either. They are ways to choose your investment wisely, and ways to offset, or minimize your operational expenses.
One of the best ways to minimize the maintenance and operational costs is regular maintenance. Making sure your yacht is properly serviced and maintained will help you avoid major repair costs down the road.
Chartering your yacht is another way many yacht owners choose to offset operational expenses. Generally speaking, putting your yacht into charter should pay for slip fees, routine maintenance, and insurance. There are many pros and cons to chartering your yacht which we cover here.
How Do You Value a Return on Investment?
Owning a yacht may not always be the best financial investment, but it can be an investment in your mental and physical well-being. There are few things more relaxing than enjoying the stress free times out on the open waters aboard your own yacht. Buying a yacht can also mean more time with your family, with your friends, and enjoying some of the vacations and experiences you've only dreamed of!
Understanding the pluses and minuses of buying a yacht can be complex. If you have any questions or comments about this blog post, do not hesitate to contact us or call us at (213) 260-0155.