In times of crisis, it is important to turn to safe and profitable investments. Luxury yachting meets these criteria. Here are 6 reasons why investing in this sector is worthwhile.
Market stability
Unlike many sectors that have seen their profitability decline in recent times, the luxury yachting market has remained stable and in constant evolution. In fact, according to the Mordor Intelligence report, the global luxury yacht market is expected to grow at a compound annual growth rate (CAGR) of 8% between 2022 and 2028. This growth is mainly due to the increase in global wealth, growth in tourism and technological advances in the shipbuilding sector. As a result, investing in luxury yachting is not a risky business, thanks to the stability of the market.
Residual value
Investing in a luxury yacht is a great way to build up your assets. Indeed, luxury yachts often retain a good residual value, which means that you can recoup a large part of your investment when you decide to resell your yacht. According to the Boat International report, the residual value of luxury yachts is around 60% of their purchase value. This residual value can be even higher for high-quality luxury yachts built by reputable shipbuilders.
Charter potential
You don’t sail frequently, but don’t want to leave your yacht docked? Have you thought about chartering? It is possible to charter your yacht to third parties, which can generate additional income.
The amount you can earn by chartering your yacht depends on a number of factors, such as the size and configuration of your yacht, the region in which you are located and the time of year. On average, luxury yacht owners can earn between €20,000 and €100,000 per week of charter.
Growing demand
Investing in a luxury yacht is a safe bet. Demand is growing all the time. The new billionaires are very keen on this type of property.
Demand for luxury yachts has been rising steadily for several years. In 2022, the luxury yacht market was estimated to be worth $10 billion. This figure is expected to rise to $14 billion by 2028. Market growth is being driven mainly by countries in South-East Asia, China and the Middle East. For the time being, Europe and the United States remain at the forefront of demand.
Investing in luxury yachting to benefit from tax depreciation
A profitable investment should not only help you build up your assets, but also make you money. With luxury yachting, both these conditions are met.
Tax depreciation is a mechanism that allows individuals to gradually deduct the cost of an asset over a given period. This reduces the individual’s tax burden over the useful life of the asset.
In some countries, the costs of purchasing and maintaining a yacht can be tax deductible as depreciation. This means that yacht owners can deduct part of the cost of their yacht each year over a period of several years.
The amount of tax depreciation allowed depends on the useful life of the yacht and the type of use to which it is put. In general, luxury yachts are deductible over a period of 10 to 15 years.
In general, it is possible to deduct :
- The purchase price of the yacht
- Maintenance and repair costs
- Insurance costs
- Mooring costs
- Fuel costs
- Crew costs.
A passionate investment
Luxury yachting is much more than just a financial return; it’s also a passionate investment. First and foremost, a yacht offers you incomparable prestige and lifestyle.
Yachting is an activity that lets you discover new horizons, experience thrills and enjoy nature.
Owning a luxury yacht means being able to sail whenever you want, wherever you want, with whomever you want. It’s also an opportunity to share your passion with friends and family, create unforgettable memories and enjoy a unique experience.
If you’re passionate about the sea, luxury yachting is an investment that will allow you to live your passion to the full.
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