Unlike more conventional cars and boats, a luxury motor yacht doesn't necessarily automatically depreciate in value. The person who sells you a yacht is likely to say something like 10% the first year, 5% the second, 3% after that, etc., but in reality, that is lazy and wrong. When buying and selling a yacht, the condition of your yacht, as well as the market and what previous buyers have paid for your yacht, determine the value of the yacht. If you are buying a new yacht, expect a reduction in value of at least 15-20% during the first year.
While this isn't a smart financial decision, there are huge lifestyle perks that come with yacht ownership, making it a valued investment in yourself. Overall, boats lose about 36% of their value after 10 years of ownership. Boats lose between 23% and 30% after 5 years and between 18% and 22% after only 1 year of ownership due to a new purchase in the current year. This is because the boat is properly maintained and kept in good general condition.
Boats demanded by major yacht builders, for example, tend to retain more value, and yachts that are rented can also help offset costs, helping to make the investment more financially sound. However, if you keep your yacht for, say, 10 years, don't expect the market to have stayed the way it was when you bought it. In this size range, the Hatteras motor yacht lost its value at approximately the same rate as the Viking sportfishing yacht. The example of a yacht with gas engines lost value a little more than the other yachts with diesel engines.
Owners who have a passion for yacht restoration can spend time, money and effort rebuilding the yacht. Just remember the numbers from before so you don't feel disappointed when you want to sell and find that your yacht is not worth as much as you paid for it when you bought it. The yacht has to comply with a lot of regulations, it usually needs a captain and chef on board and the volume of charters rarely keeps up with the cost of operating the yacht in such an elaborate manner. He spent an afternoon on the yacht with a good bottle of Scotch whisky and remembered all the adventures, the big landings and the parties, as well as the difficult passages through which she had taken him safe and sound.
Owning a yacht is a luxury few can afford, and usually the wealthy and deep pocketed are looking to expand their fleet of leisure toys rather than looking to flip a yacht for profit. When planning this, it is an essential truth that a good purchase never crystallizes until it is eliminated and, therefore, no matter how good the deal you have made for the yacht of your dreams, if no one wants to buy it when you want to sell, suddenly this good purchase is simply a matter of money paid for a project now completed. The pure efficiency of the market indicates that a yacht with a precise price will find a buyer, but too often boats are listed too high because of the owner's predisposition, or the feeling that the yacht is special or because of the selfishness of the intermediary's commission. A yacht that is older but has been kept in excellent condition and has had some improved features can cost a few million, compared to an older model without upgrades that could sell for a measly six figures.
While it's important to focus on the experience of yacht ownership, a good yacht broker will advise you throughout the process.