10 Tips for Buying & Enjoying Your Yacht
Whether it's the Bill of Rights, 10 Commandments or anything in between that you adhere to, these are the Yacht Hunter's 10 Tips to get the most out of your yachting experience and in case you'd rather watch than read, here you go!
10. Charter Prior To Purchase
If you're considering purchasing a yacht but haven't yet chartered one, you'll do yourself a huge favor by doing so, as you will validate that a yacht purchase is right for you or you will quickly figure out that it's not what you thought it would be.
* If you've ever wondered how to charter a yacht, check out Yacht Charter Fleet to browse your desired criteria and availability, but be sure to email us regarding industry discount pricing, regardless of who lists the yacht and where it is located in the world. If you're interested in booking a yacht for a smaller period of time, check out YachtLife.
9. Overestimate Operating Expenses
Any yacht salesman will tell you that industry rule of thumb is to project for 10% of the insurable annual value of your vessel (excluding crew salaries) to be a reliable indicator of your operating expenses and to make ownership more attractive so you spend more on the purchase.
While this is generally accepted, my clients and the smartest owners, project for 15%. Why? The proven theory is that you will be less hesitant to spend as you approach that 10% mark which will improve your vessels vitals, stabilize it's value at the time of resale, and decrease your stress levels.
*Superyacht owners with a fully crewed yacht should check out this calculator. Although the numbers will appear high, it's better to be conservatie.
8. Keep Your Yacht Active
This sounds like a no brainer in the sense that if you spend so much on a pleasure purchase of a yacht, you should get great use out of it, but a yacht that sits at the dock and doesn't move much tends to incur more issues and costs than one that moves fairly regularly. Many owners put their vessels into charter programs which helps with this while others encourage business partners to share in the use as well.
7. Customizations are Owner Convenience, Not (Neccessarily) a Buyer's Value
If the seller is telling you that they've made all of these improvements outside of mechanics and technology, you should never pay for these! Keep in mind that when you want to alter the blinds, your sofa, bedding or any of the interior features that you are doing this for your pleasure, not the future buyers.
6. Soft Goods are Secondary
Many can buy real estate and immediately form a vision as to how they'll improve the property to their liking but few can do so onboard a yacht. As long as the structure, layout and mechanics on a yacht look good, a hot tub, a sofa, and any aftermarket good can be altered relatively inexpensively.
5. Chartering Reduces Costs
Making a yacht available for charter extends a number of tax advantages to a buyer while operating costs, but as chartering becomes more popular for owners, the market is seeing an influx of newer, better, favorable rate yachts being made available for charter. While it is possible to breakeven through X amount of charters, be cautious if your broker guarentees you will break even and especially if they mention you will make a profit.
4. Lifestyle Toy First; Investment Second
The reason you buy a yacht is to throw amazing parties, travel to destinations others can't and to relax and enjoy yourself. If you are viewing your yacht as an investment which is possible you have to be comfortable with the fact that you may not see a dollar in return. By doing this, you will enjoy your yacht tremendously more than if you are concerned with your expenses.
3. Hire a Great Captain
You're too busy and don't have the desire to clean your yacht, repair your yacht, and worry about the intricacies of your yacht which is why you delegate the navigation, oversight and management of your yacht to your captain. Hiring a great captain will protect your financial interests, ensure your safety, facilitate your enjoyment and will be followed with a great crew as well.
2. Never Stop Enjoying
A yacht is simply too expensive to justify its ownership if you're not enjoying it to the absolute fullest. The minute you think about getting out of yacht ownership is the immediate time you shold so you can pursue other hobbies, interests and ventures.
1. Purchased Based on History, Not Market
This is my number one rule!!!! Each yacht sale is recorded in a yachting MLS so regardless where and when the make, size, and year of your yacht is sold, you need to know this information as it should establish the price ceiling for what you're willing to pay for your new yacht. Many sellers inflate this number up to 30% to create a perceived deal for unrepresented and uninformed yacht buyers.
As with everything I do, I believe a well informed buyer is a good buyer, which is why you can request recent yacht sales information right here: