Considering a luxury boat? Answer these 4 questions first
Have you ever imagined being a boat owner? It’s an exciting prospect, but certainly not something that should be approached lightly. That’s why, before you start looking at boats, especially luxury boats, it’s important to consider a few key questions. By evaluating these 4 concerns, you can be sure that you’re prepared for all the responsibilities of boat ownership, from the financial to the logistical.
New Or Used?
When buying a luxury boat, one of the most important choices you have to make is between a new boat and a used one. New boats are obviously more expensive, but if you’re new to yachting you may not be accounting for an important factor: customization. Even with a used boat, you’ll likely do a refit to get the features you want. So as long as you find the right designer to collaborate with, you’ll be on the right track.
Does that mean you should go with a used boat when looking at luxury vessels? In many cases, yes. Just choose from a wide range of used boats for sale and then redesign it to suit your needs. As part of that process, you also need to ensure that the boat you choose can accommodate the additions and modifications you want.
Fly A Flag
Car owners register their cars wherever it is they live, but yacht owners don’t always do that because the regulations are different. Instead, what yacht owners do is look at different nation’s protections and make their choice based on location, benefits, and other factors. Popular locations to register a yacht include Malta, Cyprus, The Netherlands, and Liberia among others. Ultimately, a large number of American yacht owners don’t choose to register in the United States.
Account For Maintenance
Buying a luxury boat is expensive, but the costs don’t stop with that initial price tag. According to industry experts, new yacht owners should set aside 10% of the cost of their boat for crew and maintenance. If you buy an older boat, you may need to set aside even more for maintenance, as they can require extra care to keep running.
In addition to the cost of maintenance, you’re going to need to set aside funds for insurance and docking. Depending on the size and cost of your boat, that could be several hundred thousand dollars a year. Smaller boats will obviously cost less, but it’s important to budget for these costs.
Plan For Off Time
One of the most exciting things about buying a boat is that you get to think about all the trips you’re going to take. One problem with that is the simple reality that almost every yacht owner thinks they’ll use their boat more than they actually do. That’s the nature of life – we’re all busy – and it’s okay not to take your boat out every weekend. It’s important that you plan for the time you’re not using your boat, though. It’s important to find a profitable way to use your boat during that downtime, such as renting it out as a charter, otherwise you won’t be able to pay all of those maintenance and capital fees.
Buying a luxury boat takes a lot of planning, but if you do the advance work to get organized, you’ll be able to fully enjoy your yacht. It may not seem like much fun to do homework before heading out on a pleasure cruise, but you really will have a better time if you’re prepared for stormy seas.