Investment is a term that refers to things that one can make a profit from. Usually, people recommend and go for real estate, stocks, funds, or business as the best option for investment. These options are considered as the best assets that have proven great returns of money.

   Aside from those, there are other things that people invest in that are solely for recreational purposes. If you’re someone who has kept a good amount for this type of investment, you’re looking for an asset that you can enjoy and maximise at the same time. One of those can be a yacht.

   If you’ve been wanting to buy a yacht to make your sea voyage dreams come to life, there are important factors that you must consider first before you seal the deal. To avoid any regrets and mishaps on your first yacht investment, read on the following points that will help you decide on the best type of yacht that you’ll surely love.

1)What type of arrangement best suits your lifestyle?

 First things first, are you eyeing a yacht that is solely your own, or do you plan to have partners on this investment? Consider if you want shared yacht ownership or complete control of the property.

Sole ownership

Investing in sole yacht ownership allows you freedom and complete control over your property. With this, you get to decide on where the boat will be stored as well as its overall management.

Another great thing about this is that if you want to make money out of your yacht when you’re not using it, you can have it for rent. This will quickly return all of your invested amounts and make more while you’re not using it.

Fractional Yacht Ownership

  On the contrary, if you’re someone who has busy schedules and can’t commit time to manage the yacht, you might want to opt for yacht syndication. With this arrangement, you have co-owners who’ll take part in every decision that will be made concerning the yacht.

   The great thing about this type of arrangement is that you spend much less on the investment. Unlike in sole ownership, you take out a huge amount regardless if the yacht is brand new or used. In yacht syndication, you pay for less but you also get to take advantage of exclusive perks. You are also free to sell your share if you decide to upgrade on a better investment or if you just simply want to move on with another investment.

2)What will be the main purpose or use of the yacht?The second question that you should ask yourself is why are you buying a yacht? Will it be solely for leisure purposes or is it an addition to your property investments? Your answer to this question will help you to conclude your answer to the first question.

Leisure purposes

   If the reason you’re buying a yacht is exclusively for vacation and recreational purposes, you also have to consider how often you would be using it. If you’ll only use it for every special occasion or every holiday, then maybe it would be best to invest in shared yacht ownership instead.

With fractional yacht ownership, you’re not only paying for less but you also won’t have to allot so much time in managing the property. You will have people who’ll take care of the maintenance and cleaning of the yacht. This way, it would feel like you’re using a brand new boat every time you’re off to your water adventure.

Solely for investment

  If you’re deciding to buy a yacht as an addition to your assets, sole ownership and shared yacht ownership can work depending on how you plan to handle it. If you opt for sole ownership, this allows you the freedom to customise and make your property unique. This could be a great asset most especially if you plan to have it for rent.

It might cost a bit more, but renting it out and offering unique inclusions will make your investment valuable. On the flip side, if you’re planning to go for yacht syndication and plan to have your share for rent, you and all the owners would have to discuss it first.

   If you’re lucky to have partners who’ll approve and if your contract permits you to, it’s a great way for you to start an investment that won’t cost you too much. The only downside for this is that you’ll have to negotiate the slots of use and assuring an on-the-go appointment or booking can’t be promised.

3)What size would best fit my yacht’s purpose?

            Have you answered what would be the main purpose of your yacht investment? If yes, then it’s time to decide on what size you would be getting. Getting the right size would tell how you can maximise the purpose of your investment. When choosing the size of your yacht, consider the following:

(4) Where would I store my yacht when not in use?

    Have you already decided where the berth of your yacht would be? Is it located on a famous lake or destination that people would want to explore?

(5) How far can this size travel and how long can it operate?

     When choosing a size, consider the parameters of where you plan the yacht to course. If you’re eyeing a small yacht, then its engine might not be able to handle long-distance travel and usage. If you plan to sail your yacht in various locations and areas, make sure to purchase one that can handle those courses.

(6) How many people will I allow to have onboard?

    The number of people you will be entertaining on board should never be overlooked. A certain yacht can only operate and handle a certain percentage and it would be best to not go over the recommended number. This way, you get to operate your sail smoothly as well as store important emergency kits and lifeguards on the yacht.

(7) How is the condition of the boat and how do I maintain it?

      If you’re buying a brand new boat, don’t be too complacent that its condition is 100% well and ready for the ride. Make sure to check and test ride all of its parts most importantly its engine. If you’re investing in a used boat, this is a vital point that you should check. Is the boat well maintained, or are there any parts that need replacement? Make sure to ensure these questions before signing the deal.

 Regardless of the type of arrangement and condition of the yacht, make sure that you also know how to maintain the property. Make sure that you know the following and ask the sales representative for their recommendations to maintain your yacht in its top condition:

8. What type of fuel is needed for it to operate?

9. How many times does the engine need to be operated when the yacht is not being used?

10. What insurance policies do you recommend for my yacht?

11. Do you offer parts replacement when needed?

12. What are the inclusions of my purchase?

  These questions will help you save so much time in worrying in the future and would help you to easily endorse your yacht to your manager if you won’t be handling it personally.

13) Lastly, do all of my answers fit my allotted budget? Before you finally sign that contract and give your ‘yes.’ make sure that all of the points mentioned fit your planned investment budget. Purchasing a yacht regardless of the type of arrangement and condition costs a lot of money.

  Make sure that your purchase would make the most out of your wants and equates to the amount you’ve invested. Know that a yacht’s value will depreciate as time goes by, but its condition will all depend on how you maintain it.

In the end, it all depends on how you get to enjoy the investment regardless if you choose to sell it in the future or not. Are you considering investing in a yacht? Share more questions you have in mind that we should answer before investing in one in the comments below.

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.