11 Feb John Rosatti on Purchasing a Yacht
Purchasing a Yacht
Buying a yacht is a big commitment and requires careful planning, both financially and in terms of the time it takes to go through the buying process. Below is a brief guide to buying a yacht, to help you through the yacht buying process.
Type of Yachts
The yacht buying process starts with considering what type of yacht would be best for you. There are a wide variety of yachts to choose from.When thinking about what type of yacht you need, you will need to consider what you will use the yacht for. As graceful as a sailing yacht is, a motor yacht tends to suit most people’s needs – requiring less experience to run, more space and wider living area below decks, and the ability to travel at higher speeds. The size of the yacht is an important factor to consider, as this will determine how many guests you can entertain, and how many of life’s essentials you can carry with you. Whether you choose to go for a new or used yacht will depend on how quickly you would like to be out on the water. A new yacht can be ordered to your exact specification; however the flip side of this is that it will take time to be built. A used yacht may not be exactly to your specification; however it will take less time for you to be out on the water enjoying it!
Paying for Your Yacht
Once you’ve come up with the specification of the yacht to indulge in, before rushing out and ordering it, you need to make sure you can afford it. On top of the basic price you pay for a new yacht, you will need to set aside another 20% for extras to equip it. For a used yacht, you may want to set aside up to 50% for a refit and equipment. Money will need to be set aside for insurance, mooring and maintenance. When you’ve signed on the dotted line, whether you are buying a new or a used yacht typically you will need to put down a 10% deposit. A new yacht may have stage payments through the build process before paying the balance. After a used yacht has had a survey and a sea trial is accepted, the final balance is paid and the customer takes ownership of the vessel.
If you are buying a used yacht, it is imperative you get a comprehensive survey done. A surveyor will check the yacht all over, advise you of any damage or problems, and tell you what work needs to be put right. Many insurance companies require a survey to have been done before they will cover you.
A Helping Hand
Unless you’ve bought a yacht before, it is strongly advisable to purchase a yacht through a yacht broker. A yacht broker will not only advise you on what type of yacht would suit you best, but can help with financing and insurance options, as well as ensuring the buying process goes as smoothly as possible.