Is Yacht an asset or investment? What are the benefits of owning one?

Ok, let's get this straight.

What is an asset?

Something having value, such as a possession or property, that is owned by a person, business, or organization. An asset is also any positive feature that gives you an advantage.

What do we mean by investment?

1) The outlay of money usually for income or profit, capital outlay.

2) The commitment of funds with a view to minimizing risk and safeguarding capital while earning a return compare speculation.

Well, maybe for marketing purposes, some professionals might tell you it's an investment.

From the above definition, we can see clearly that Yacht is not really an investment. However, this does not apply to all Yachts. Yes, you heard me right.

Some Yachts can be so valuable, they appreciate with time, when properly maintained or at least keep the same value. However, you are still going to be spending a lot of money on maintenance. You can expect to spend somewhere around 10% of the value of a yacht in yearly maintenance and running costs and this doesn’t include the cost of a crew. Further services like major repairs and yacht refinishing can also be very expensive. Hence, your yacht will cost you a lot of money to own, even if it does end up appreciating in value, or maintaining the same value.

Yacht is not like a house, it's an asset like a car and expensive to maintain

Yacht might not be the best financial investment, even though you make money from it. If your aim is to majorly make money, there are far easier ways to do this than purchasing a yacht, investing in corporate business like finance or investing in luxury hotels, beach resort and real estate, or starting a business, let's say oil and gas, energy and power e.t.c

Simply because your vessel won’t necessarily appreciate in value doesn’t mean you can’t make money from it. If you only use your yacht for a few weeks or months per year, you can hire a yacht management company and chartering company to charter it out on a temporary basis. There's an exclusive article on this.

The charter company and management company will take some percentage of your profits, but you can still make reasonable money from chartering your yacht, which can help you break even and pay for maintenance and running costs. To crown it all, most of these companies will help with proper maintenanceof the yacht.

So, if it's not an investment why should I own one?

Here we are, owning a Yacht could worth more than a gold or silver

The advantages include:

Quality Time with Loved Ones: Family, relationship, friendship bonding. All could be achieved on Yacht vacation. I define Yacht vacation as heaven away from home and not home away from home. Perhaps you could have a taste of heaven on earth sometimes you know...

Increases your Social Status: Yeah! Everyone knows Yacht owners are not just business people, they are people of class, first class for that matter. Maybe that's why they may not really care about it being an asset. It shows a sign of success, like we discussed above - an asset have features that gives you an advantage.

Unforgettable Memories with your loved ones

Personal Relaxation in luxury and styles

More exposure by exploring new destinations

And last on the list; Your income increases.: Being an asset doesn't mean you don't make money from it, it's a valuable asset. In fact, you make loads of lakhs if it's on charter. Just as you can make money from commercial vehicles with good maintenance.

What's important is the experience that comes with owning the Yacht. Luxury experience which could be shared with friends and family, just like owning one of the most expensive cars in the world and this time, you also have the opportunity to generate good income from it.

What's more? If you think that's not worth more than gold and diamonds, then it's definitely inestimable.