People always think yachting is expensive. Well, Yes, maybe and no. Yes because when you buy a yacht and maintain it and leave it to depreciate. No because you can always have companies like Marine Bookings to manage it for you efficiently and you can even make this ‘trophy’ of yours profitable. Maybe, when you fall in-between.
Before you get totally blown away, the title says 100 reasons. Definitely not exactly 100 reasons but wait. Isn’t a few extremely good reason better than many mediocre reasons?
A yacht can pay for itself.
If somebody tells you, you can make it all back in the first year when you buy a new yacht. Don’t walk away… Run! It is however, possible with good management knowledge and a lot of hard work to make it all back when buying a lightly used 2nd hand yacht. We know everyone wants to make money but who wants to put in lots of hard work? All you need to do is to find a company like Marine Bookings, dedicated to help you succeed. The company has also helped many owners achieve this. You can always ask them for free evidence and advice.
Renting your yacht out increases value of your yacht
Sure enough we all know that a yacht is a depreciating asset. But the less known fact is that many have earned a lot from the transaction of yachts they personally own (though, I must say that there are also people whom have lost a lot also). It’s not a gamble but science. It’s just how it’s done. The process is simple: first buy a value for money yacht, wait for a prospective buyer and sell the yacht and pocket the difference. Wait… There is something missing here. What do you do when you already own the yacht and you haven’t sold it? You charter it out for good money and don’t forget to party and have possibly the best time of your life on board. On a side note, chartering your yacht out also automatically publicise your yacht name to the public, whom potentially would buy your yacht. The constant process of free publicity also increases the perceived value of your yacht.
A comparison with the all great property market
You can buy a 1-Studio Bedroom condominium around town for slightly more than 1 million Singapore dollars. For that same amount of money you can buy a brand new 40-footer yacht. You can rent the house for about $2,500 at most $3,000 a month. You can rent this yacht for almost $2,000 averagely for a 4 hour trip and an average of 10 time per month. If you leave it to Marine Bookings fully, you can expect more. That means you earn $1.2 million in rental income alone. Let’s say after 5 years your yacht depreciate by half and you sold it for $500,000. More likely you can still sell it for close to $700,000. You still make $500,000 or if not $700,000 returns. Less a safe figure of 25% revenue for your operating expenses. You make a staggering 52.5% returns on your investment in 5 years. How many people can say that their house can do the same? This calculation is based on a brand new 40-footer Azimut. Which usually comes with 2 bedrooms. Can you imagine what happens when you get it almost new but at a discount of 25% of the original price?
A few word of caution: Warren Buffet once famously said ‘you make money when you buy, not when you sell’. This is very relevant owning and renting your yacht. Many people will talk to you. We all need second or multiple opinions, before making a big decision. Make sure you take advices from people relevant to that field and sieve out whether a person really knows what he/she is talking about, or just taking you for a ride. If in doubt ask for proof and evidences. Buying a quality yacht also takes knowledge and experience, just don’t buy a lemon. It is very important to buy the right yacht, if you don’t know much, just speak to someone in Marine Bookings first.
There is a lot more to it than just this article alone. Want to find out more? Make sure you contact somebody from Marine Bookings first before you make any commitment. It is crucial to whether get a good return on this investment or any at all.