In life, there are lots of investment options and instruments that are considered a great asset. People buy assets in order to build wealth. Typically, the purpose of investing money in assets is to generate more profit than your initial cash-out. The faster and bigger you make money out of an asset, the better.
You would normally hear advisers and mentors suggest to allocate your money in stocks, real estate, mutual funds, and such. It is quite rare to hear someone recommend investing in a yacht property. People often perceive owning a yacht as more of a luxury than an investment.
If we try to look beyond the typical factors that make an asset a great one, we might just see that owning a yacht is indeed a great possession. In this article, let’s discuss how yacht ownership can be a great asset to have.
1. It can be turned into a money-making business
A yacht property is often compared to a car. People often find it nonsensical to ‘invest’ in a yacht since, after a year, its value will start to depreciate. Of course, yacht enthusiasts beg to differ. The thing is, its value will only start to depreciate if you choose it to.
For you to make the most out of your yacht investment, you can have your property for rent. Most especially in seasons when its demand is high for vacations. If you are in a shared yacht ownership arrangement, it would be nice to suggest to your co-owners the idea of opening your yacht for rentals.
It’s no secret that a yacht investment, regardless if you’re a fractional yacht ownership partner, is a big investment to make. When you invest in a yacht, you also invest in its maintenance fees, insurance, and condition check-up. It’s also more likely that you and your yacht syndication partners would only be using the property during a certain month or season.
Open it for business on seasons when you won’t be using it
If we’re to be realistic and practical, there will surely be a year or an entire quarter where you won’t be able to use your yacht. We’re adults and we have responsibilities and careers that we need to prioritise. That being said, this is a great excuse that you can push to open your yacht for business.
If you ever do the move to open your yacht for business, you make your luxury purchase an investment. Also, if you’re in yacht syndication and pays your share monthly, your rental profits make it easier for you to earn your interest from your invested money.
On top of that, you still have the freedom to enjoy your vacation and have your time off in the waters with your yacht. The only difference is that you made a smart move to make your luxury purchase make additional profits for your end.
2. Owning one makes a good impression on your potential business partners
Some people try to make a good impression on others through fashion. They dress up well, wear an expensive watch and shoes, and use their luxury car when meeting someone for the first time. What better way is it to let someone know that you’re doing well in life than to showcase it through your possessions?
Some people say that first impressions last. Of course, it only will if you are to never meet that person again. It’s important to make a good impression on people that you will be meeting for the first time. Most especially if you are meeting potential business partners.
If your nature of work requires you to constantly meet new people and develop business relationships with them, you can use your yacht to your advantage. Why don’t you invite them over to your yacht after your first meeting? Or try to seal the deal by asking them if they’re interested in fishing?
There’s no better way to win someone’s heart than to try to know them personally. Show them a little glimpse of your personal life. It’s easier to talk about business-related stuff when both of the parties are in a calm state. Who knows, maybe better business ideas will suddenly pop up as you enjoy your meeting on your yacht.
3. You can open it for co-ownership
Let’s say you bought a yacht for solely vacation and leisure purposes. Then suddenly 5 years after, you realise you need to allocate a portion of the money that you are paying for the yacht to another asset. If your yacht is still good as new, then it surely is a perfect candidate for shared yacht ownership property.
Imagine, if you open your yacht for yacht syndication, you won’t have to spend as much as you used to when you were the sole owner. Not only will your yacht investment be lessened, but as well as the maintenance fees, insurance, and cleaning fees.
Opening your property for fractional yacht ownership does not take away the perks and benefits that come with it. In fact, you can still use the yacht for both points number 1 and two. If you ever plan to open the yacht for rentals in a certain period, make sure that all the co-owners agree with that.
Remember, once you enter fractional yacht ownership, you and your co-owners all equally have the same benefits, access, and share on the yacht. Unless you proposed an arrangement where one owner owns a bigger portion of the share.
4. It’s having a vacation tool that is at the reach of your hands, any time you want to
Just like a car, owning a yacht gives you the freedom to have unlimited access to go anywhere you want to. The only difference is that you are in the waters and you can go have a vacation any time that you want to.
Really, who wouldn’t want to unwind and refresh on a yacht after a long hard week at work? Surely, there’s no greater breather than the waters. Also, it would be fun to bond and gather your family during the weekends for a quick leisure getaway via yacht.
In fact, there are so many fun activities that you can do on a yacht. It’s like a one-stop vacation shop for owners where they can do whatever they like. Want a hotel-like experience on the waters? Celebrate a party with your friends? Or even have a peaceful time trying to catch some fish.
One of the top reasons why people buy and invest in a yacht is for vacation and leisure purposes. The only difference with a yacht investment compared to other assets is that you get to live a life that you want to while sailing the waters.
It’s up to you if your yacht property is an asset or not
All the points I discussed above are just some of the reasons how you can make the most out of your yacht and make it a great asset. For some, these reasons might not be enough for them to still consider a yacht as an asset.
Despite it being a good asset or not, it’s up to you how you would like to view your yacht property. If the reason why you’re considering buying one is that you are a yacht enthusiast, no one’s stopping you. As long as you have the means to invest in one and are capable to maintain the yacht in its best condition, it’s up to you how you’ll make the most out of it!
About the author:
Bianca Banda is a writer for MIY Yacht Share which offers Yacht Co-Ownership for sale, leaving the hassle of sole ownership behind by providing a cheaper yet luxurious yacht that is your own. She is a massive lover of Japanese cuisine and enjoys binge-watching comedies or variety shows.