How can buying a yacht (where a used yacht or a new yacht) in this day and age of uncertainty be a good decision? For those who have managed to retain liquidity or are in markets which are still thriving, owning a high-end luxury commodity might not be such a bad idea.
Here are some compelling reasons why Buying a Yacht makes sense:
The yachting market, similar to other luxury markets in our previous era of booming economics, have seen prices rising unreasonably – mostly due to supply and demand. A correction is certainly evident today, with many yachts having come to market; some just to cover liquidity needs, others competing for few buyers. Thus we see many buyers actually buying yachts at prices that they would not have dreamed of a year ago.
Realistic buyers know value when they see it. Unrealistic buyers often miss the great deals. See these posts for more yacht buying tips: The Process of Buying a Used Yacht and Considering your Needs for Buying a Yacht.
- The cost of money is extremely favorable with plenty of credit available to persons with sufficient liquidity. Never have rates been this low.
- Repairs and improvements are not only much easier to organize (no standing in line waiting for quality vendors these days), but time constraints and pricing is much more favorable. The same goes for other aspects of ownership, such as fuel costs, quality crew and salaries, dockage, etc.
- Cruising grounds and marinas are less crowded and more flexible during the popular seasons, thus offering more choices to cruise areas which may have been previously limited – such as Nantucket, or Nassau (Atlantis).
Yachting today offers a far greater tangible and “quality of life” value than the uncertainty of equity markets – plus they will not lose value overnight for no apparent reason. Some wise business folks are taking time to enjoy life with their families and friends, knowing that things will eventually turn around and that they may never have the opportunity to spend precious leisure time exploring the finer things in life, like watching the sunset behind a tropical island while at anchor. You can’t put a price on these experiences.