Is a Yacht a Good Investment?
This is the most common question I get asked by potential buyers and the simple answer is: ABSOLUTELY NOT.
As a capital intensive, highly negotiable, depreciating asset (10%/yr) that requires significant costs in upkeep and operation, a rational individual would agree that a yacht is not a good investment. Yet, the most successful people in the world are buying a 100' yacht every 1.3 days, so that raises the question 'What do they know that I don't?'
And that's where my role a strategic yacht purchasing advisor really comes into play. Once you realize the disclaimer above, there's typically 3 reasons of why buying a yacht is a good investment.
1) The Lifestyle - This is what every yacht salesman or broker is going to tell you but they'll stop there. Being able to travel at your own pace without having to repack your bags to places in the world most people will never go is great; being able to sit on the bow of your yacht will allow you to reach 'yachting euphoria' as I call it, where you'll realize the magnitude of your accomplishment while rediscovering additional ambitions. Any time you pull into port, all eyes are on you and your yacht, triggering a sense of intrigue and envy from every passerby. As the saying goes, can you put a value on happiness?
2) Yachts as a Networking Tool - This is my firm belief that of all the luxury and expensive purchases one can make, a yacht is second to none in creating the opportunity to mix business and pleasure. Whether you host clients onboard to close bigger deals in shorter periods, recruit top talent from competing companies, to enhance your brand's image, or as a negotiating piece with outside decision makers, a yacht presents the opportunity to cover the expenses and then some, when utilized properly.
3) Yachts as a Tax Write Off - Here's what they all know that the common folk do not; yachts made available for charter, or to be made for rent, create the opportunity to earn revenue, thus the purchase price, crew costs, and operational expenses create substantial losses for a business, which works in the favor of comapnies or UHNWI's as the loss reduces one's taxable basis. It's like asking the question, would you rather pay taxes on your $20M income, or would you rather have a super yacht and pay $10M in taxes? (Always speak with a maritime attorney or a CPA before taking this advice to ensure you optimize your potential tax benefits).
If you learned something new, be sure to comment below and reach out with any questions you have regarding your yacht purchase. Also, be sure to claim your free Yachtlytics Yacht Purchasing Report to assure you buy the best yacht at the lowest price.
Thanks for reading and Happy Yachting My Friend.
-Christopher 'The Yacht Hunter' Mortimer