If you are keen to buy a yacht but worry about the costs, maybe this blog will help you make the right decision.
The cost of a yacht ownership is very expensive for most and in a way, this has always been the case. The initial outlay may be the smallest problem at times, as once you start considering purchase of a yacht, surely you must have earned some money to consider doing so. The problem, as with many other hobbies or activities can be a cash flow or the cost of maintaining such a yacht. This is where modern yacht ownership options change a lot for many of those considering purchase of such an expensive toy as a yacht, in particular a luxury yacht.
Today, one can even talk about profitable yacht ownership indeed. The most popular of all, 50-67ft luxury catamarans such as Vaan R5 but in particular the most popular models such as Bali 5.4, Lagoon 55, Sunreef 60, Alegria 67 are rented up to 20 weeks during the Mediterranean season alone. Purchase price of these boats is in the region of 1,5 – 3,5 million Euros, yet income is also around 20% of the purchase price in the year one alone and as a minimum in most cases. If such boats than head to the East Caribbean for the winter season and make another 20 weeks, this income is not only covering leasing rates, crew salaries and port or insurance fees, but give a handsome return on investment too.
The cost of running such a yacht with professional crew is probably around 200,000 – 300,000 Eur per year, yet average price of a Bali 5.4 is also around 20,000 Eur net. Multiplying it by 40 weeks which such a yacht can make, without potential transatlantic crossing charter income added, makes for a very interesting read indeed. Yacht such as Alegria 67’s are for example almost 70% booked out already for most of Mediterranean summer holiday months and we are still in January. Sending such a yacht to a winter seasons destination, at n average weekly rate of 40,000 Eur, ensuring 40 weeks are made in a 55 week period brings an income of 1,6 million Euros. Deduct management fee of 15%, brokerage fee of 15%, crew wages and usual running costs of around 200,000 Eur and you as owner are still left with a total yearly income of around 1 million Euro on a purchase price that is likely to be 2,5 million Euros. Try buying anything else for 2,5 million Euros and see how you can finance it, let alone collect 1 million Euros income and most of the investment advisors in your own bank will want to listen to you.
Similar, albeit not as good investment proposal is available with a luxury motor yacht or indeed a genuine superyacht. The talk here is about a Puccini Yacht 65 Fly or Puccini Yacht 82 Fly, both JING models. JING stands for a rare, indeed unique offering in yachting. Puccini Yachts are namely the only shipyard in the World that is trying to combine sleek, modern designs with traditional styling that includes the use of Royal Chinese Cloisonne patterns. This combination of fashionable yachts, as well as cutting-edge technology and the integration of traditional handicraft is a great and innovative concept that any sinophile or chinophile would need to consider. Imagine your own hotel or villa on the water, located in a marina near the London’s Tower Bridge, promoting the traditional expression of thousands of years of Chinese civilization, all in modern & stylish environment that is also a high-quality CE and Lloyds classed boat.
At a cost of around 4 million Euros, PUCCINI YACHT 82 Fly Jing is the most expensive of all mentioned her, yet thousands would flock to London every year just to see this floating museum of Ming Dinasty’s greatest designs, thanks to world renowned art details of Royal Chinese Cloisonné designers. As a world famous traditional handcraft, the Cloisonné is appreciated worldwide due to the artistic characteristics of the craft, summarized by the four symbols of shape, grain, colour and light. A beautiful cloisonné designed luxury yacht will therefore have a good shape, a decorative pattern, gorgeous blue colour determined by carefully chosen materials and finally the chosen patterns will be finished in gloss and gold plated. A masterpiece without a need for any art, as the yacht is art in itself in other words. Thus, this collection of art, craft, sculpture, inlay, glass melting, metallurgy and other professional technologies, all with a distinctive Chinese style and cultural connotation, combined with an ultra-modern European design, will make each of these JING styled yachts a very individual creation, would entice many to pay a premium price just to visit the yacht. Many others would want to enjoy a stylish meal on board coupled with daily or hourly cruise down the Thames. Others would even consider her for a long term stay while visiting the UK or conducting a business event in London. The possibilities to generate income from a superyacht that is also a sort of a museum, a painting, a piece of art are endless. Sale price alone may be higher than purchase price under circumstances, so that even flipping her may be the best investment decision anyway. With a smaller PUCCINI FLY 65 JING costing less than 2 million, more then 50% less than the 82ft-er, your investment into this type of a luxury motor yacht may be even more profitable.
Whatever your plans, in today’s market, yacht ownership can be a great way of enjoying the lifestyle you crave but also not paying for it. At least not in full. The popularity of sailing and yachting as a social distancing exercise in a privately secluded environment is also on the rise, so much so that in the coming years, investing into your own yacht is not only desirable, but also recommended in a way. There is of course no guarantee of success, neither it is advisable to buy any kind of yacht, at any time, unless you can fully finance it, without falling into difficulties, yet given the current market conditions, high demand and track record of many similar yachts or indeed exclusivity of a project such as Puccini Yacht ‘JING’, it is certainly worthwhile considering jumping into a cold water.