Can Yachting be an investment?
The investment in yachting
Luxury yachts, which are often seen docked in the most famous marinas or tearing through the turquoise waters of exotic locations, are an example of human engineering and design excellence.
The decision to invest in such a boat should be approached with the same rigor and analysis that one would apply to any other major investment, such as real estate or the stock market.
The concept of a luxury yacht has evolved considerably over the years. Initially, these yachts were the exclusive privilege of a limited economic class, but today, an increasingly larger audience from all economic and age groups has shown an interest in experiencing and owning these floating paradises. This change has sparked a debate about the viability of luxury yachts as an investment option.
Understanding the luxury yacht market is of paramount importance, with the ultimate goal of a productive investment in the industry. The industry has seen an increase in demand, with manufacturers and brokers reporting increased sales and charters abroad, let alone in Greece. This growth suggests a robust market with unlimited growth potential, making investment in yachting promising.
At YachtingMates we believe that yachting is an excellent investment opportunity, especially in a country – a marine tourism destination par excellence, of international reputation. For this reason, we have partnered with The Luxury Playbook, an excellent investment guide, to structure a serious column around the investment prospects in yachting, which has been missing from the industry.
Investment in luxury yachts
The attractiveness of investing in luxury yachts is high. In addition to the prestige and enjoyment of ownership, there are tangible benefits that accompany this type of investment that make them highly profitable ventures.
Firstly, luxury boats can serve as an appreciating asset, especially if they are well maintained and have unique features that make them stand out in the market. The exclusivity and limited availability of luxury yachts can increase their value over time, offering potential financial gains for owners.
Secondly, these vessels can generate passive income through their chartering. Many owners choose to charter their vessels when they are not using them, thus creating a steady income stream. This not only helps to offset operating costs, but also generates also significant profits, making this yachting investment an attractive investment option.
Remember that Greece is among the 3 most popular countries in the world yachting Mediterranean destinations, which contributes significantly to the country’s GDP. Tourists from different countries and continents seek different methods to discover the magic of Greek seas, beaches and our unique culture. Don’t forget that yachting, although it once catered exclusively to the most affluent, this is no longer the case. Besides, at YachtingMates we firmly believe that yachting is for everyone and that’s what we say:“Yachting is for everyone” and we work hard to achieve this. Yachting is for sea lovers, for those who seek peace and tranquility in the majestic sunsets on board. No other factor will be an obstacle if you choose to work with us during your yachting career. Because even renting an inflatable boat, renting a boat without a license (according to the legal requirements) or even renting a sailing boat for your vacation is yachting. Because yachting is nothing but a feeling and not just a profitable capital investment.
Finally, there are tax advantages associated with the ownership of commercial yachts in many cases. These benefits can significantly reduce the financial burden of owning a luxury yacht, making it a more attractive investment. As YachtingMates, we are here to explain how you can benefit from them too.
Challenges of luxury yacht ownership
While the prospect of owning a luxury yacht may seem tempting, it comes with its own challenges and risks.
Unfortunately, at least to date, Greek legislation is not particularly clear and helpful. Complicated bureaucratic procedures, agreements with port authorities and institutions delay and impede the flow of investments. The experience and knowledge of a yacht broker, who will guide you through the appropriate steps, will certainly prove invaluable here. paths in this bureaucratic chaos.
Moreover, the initial acquisition cost is of course not the only expense, as ongoing maintenance, crew salaries, docking fees and insurance can accumulate, making the venture costly, while the liquidity of yacht investments is relatively low. Selling a luxury yacht can be a lengthy process, with the potential for significant price reductions to attract buyers. However, all of the above risks can be be significantly reduced by enlisting a reliable company in the field. We will be happy to help you with this!
Until our next article, you can find more information in English from The Luxury Playbook.
