9 Things To Consider Before Buying Your First Yacht

Before buying an expensive yacht, learn about the different types of yachts, the related costs, set a budget, and check out various ownership rules. Buying a yacht for the first time is a fantastic feeling. However, ownership of a yacht means similar responsibilities like owning a car or a house. That said, proper evaluation is […]

9 Things To Consider Before Buying Your First Yacht

Before buying an expensive yacht, learn about the different types of yachts, the related costs, set a budget, and check out various ownership rules.

Buying a yacht for the first time is a fantastic feeling. However, ownership of a yacht means similar responsibilities like owning a car or a house. That said, proper evaluation is vital before buying your dream boat.

Without having decent knowledge, you may find yourself in a bind. The outstanding features & aesthetic design of a yacht may take your breath away. Nevertheless, these features may be irrelevant to your purpose and end up costing you more. Since boats are comparatively expensive, it is best to do some background research before sealing the deal.

In this article, we have put together some helpful tips to help you choose the right yacht. So read on before signing on the dotted line.

1. Determine The Purpose Of The Yacht

You need to spend a lot of money on a yacht. Being driven by impulse or emotions alone will not help you in this case. Figure out what type of yacht you would want to own.

If you are looking for elegance rather than performance, you have to spend considerably more than usual. There are high-speed yachts, which may not be the right one if you are buying it for just a few holidays in the summer. Hence, figure out your purpose before even considering looking at yachts for sale online.

2. Review Your Budget

Owning a yacht is a life-time decision. Whether you are in your late 50s or the early 30s, buying the perfect yacht is challenging.

Decide on the amount you are willing to spend and stick to it. Don’t overwhelm yourself with thousands of options because yacht prices vary significantly, and all of them will not be suitable for you.

That’s when brokers come in handy. They are excellent in negotiations & know which yacht will serve your needs well.

Contact a reputable broker to avail of the marine finance facilities. They can help you buy the FSA authorized boats at affordable prices so you can have your dream oceanic tour.

3. Understand Various Types

There are various types of boats. From the slow-sailing Catamaran to the powerful RIB, to name a few. However, before buying a yacht, take your time to learn about the different types of boats and their functionality.

Also, the number of family members plays a vital part in determining the right boat. If you have a growing family, you may have to get a boat with more than one cabin, but if you have a small family of four, then a big yacht that can seat 30 people might just be a bit of an overkill.

4. Consider Shared Ownership

If you are on a tight budget yet fancy buying a yacht, shared ownership may be the ideal option for you. In a shared ownership, sailing companies let you purchase partial ownership of yachts from them.

The condition is- you can use the boat on certain occasions of the year. The company holds the right to charter the boat for the rest of the year.

In that way, you won’t have to spend a lot. Also, you won’t have to think about all the maintenance costs.

5. Assess The Legal Paperwork

Buying a yacht is almost similar to purchasing a property. While purchasing a property, you make sure the legal authorization of the seller over the property. The same goes for the yachts. You have to verify the real owner of the boat.

Don’t forget about the VAT invoice. Make sure the taxes have been paid regularly. You also need to make sure the yacht has a Recreational Craft Directive (RCD) certificate that certifies the minimum operating standard.

6. Understand The Expenses

Before making any purchase, it’s crucial to understand the expenses clearly. Without a proper assessment of the costs, your investment may financially drain you.

Maintaining a yacht includes a few specific costs like mooring fees, insurance, surveys & maintenance. You will need a place to keep your boat docked and stored as well. That said, the mooring fees may vary wildly from place to place.

Although a brand-new boat won’t require much maintenance cost for the first 5-6 years, the internal mechanical systems will need routine check-ups.

7. Take Surveyor’s Help

As you will spend a lot of money on a yacht, why take any risk of getting a lemon of a yacht? There are many unscrupulous salespeople out there waiting to prey on your lack of knowledge. Hiring a surveyor is the safest option to shield yourself from mistakes.

These surveyors get paid for doing all the field works on your behalf. They have more knowledge in this sector than you. So, asking for their help will make it easier for you to decide.

They can negotiate better, scrutinize the boat’s condition & performance. Do not worry about the extra cost of paying a surveyor because a thorough inspection will always be beneficial and save you thousands down the road.

8. A Second Hand Or A Brand New One?

Yacht prices, just like other boat prices, have a high depreciation rate. Cost-wise, a second-hand yacht will be a good deal. Yacht prices typically depreciate at a 7-8% rate every year.

But there is a downside. If the yacht was maintained poorly, then you will need to invest in repairs. The maintenance cost will also be more compared to a newer, more efficient model.

Buying a new yacht will be more expensive, but you will have your warranty intact, and you will not have to worry about unnecessary repair costs.

However, if you are lucky to find a 3-5-year old yacht, it will be wise to check it out. Hire a surveyor for a thorough inspection of the yacht’s condition and then make an informed decision.

9. Charter Before You Buy

Take a ride on your friend’s yacht to understand what boat suits you well or charter one. This is the closest thing to having your yacht, and it is essential to experience time on a yacht before owning one.

This way, you can correctly understand the measurements, accessories, utilities, and envision the type of yacht you want to buy.

Consider the tips mentioned above to find the right yacht for you. After that, all you need to do is pick a destination, pack your sea-side beauty items, and set sail.

Takeaway

A yacht is indeed a luxury, but you should not go overboard and dive headfirst into buying one. Do proper background research, plan out your financing options, and make an informed decision to become a proud yacht owner.