Thinking about buying a yacht? Here's what you need to know

Some people get the call of the sea, and we get it. Especially if you like luxury and high living, and you want to take the dive and buy a superyacht. But beware. It can be a challenging adventure to make such a purchase, so to skip the headaches, we're here to guide you in acquiring your first boat. From the very beginning to the set of your crew on the dream boat, you must consider quite the list of things that go into a purchase like this. It's similar to buying a private jet or a mansion, and it is an entire process - now it could be full of hurdles or you could make it enjoyable. It's up to you.

You might see yourself crossing the world to find the boat you're dreaming of, making a shortlist, observing boat shows in places such as Monaco, and learning more about the latest trends in yachts. And before you buy one, you can always try on the lifestyle, as many possible customers are recommended to do. So, you can try a boat or two and be surprised to find that quarters still seem quite close on a yacht. At the same time, a smaller boat is just fine.

So, why not rent a yacht for a week? See what you like or what you don’t like about it, especially if you're new to traveling on water. Plus, there's no rush. If you're planning to purchase a superyacht, you might as well take your time in finding the right boat, as many customers do. Some even spend years before they buy a yacht, but the average time to make up your mind is somewhere between 6 months and 2 years.

Pricing

Pricing relies completely on your expectations. For example, Russian businessman Roman Abramovich’s superyacht - the second-longest superyacht in the world - is said to cost around $1.5 billion. It has 24 guest cabins, two helipads, and a mini-submarine. At the same time, you can find older superyachts for $1 million. Ultimately, the cost depends not only on the size of the yacht but also on its origin (where it was built) and its age.

Due diligence

Once you found the boat of your dreams, it's time to get down to the dirty work and the details: negotiating the price, managing your financials, and creating the contract that would protect you and the seller as well from now on. Both buyer and seller document into a note of contract that, among many good points, it's written when and where the customer can test the boat and the circumstances under which both parties can break the deal. If you discover a few hours after you just tested your new boat that it has a problem or you're simply really sick of being on the sea, it could be helpful to know how or when you can break the deal. It should be just a trial and you should be able to call the purchase off for any reason. If you proceed with the purchase, the superyacht will be lifted from the water or put in a dry dock to be analyzed by architects. At this point, you can call off the deal if there's a problem with the engine for example.

Funding the acquisition of a superyacht is doable, but rather rare. The founder of the London-based boutique Cecil Wright says that in 25 years of doing business, he hasn't ever pursued financing for a customer to buy a yacht. He admits that clients that purchase a superyacht have their money invested in something already, and they don't need to borrow more capital. Considering the yacht is the one you want, as do your finances, within two months of signing the contract you should take custody of your boat.

You will soon learn that owning a superyacht means that you are owning a company because this business will have you hiring a crew of people that will work and live together. Plus, the costs will be high: maintenance, insurance, fuel, and dockage. Now, the size of your crew relies on the measure of the superyacht and the extras, as it can range from a few people, just the basic - captain, engineer, steward, chef, and deckhand - to dozens of people. One of the world's biggest superyachts employs more than 70 people for its crew. The customer can negotiate to maintain the team that has been with the yacht previously. But you can start now if you want, and your broker can guide you through finding a new crew working with agencies that have these contacts. You can actually benefit from a broker doing all the operations necessary in the purchase of a superyacht.

However, before you buy a superyacht you should know that yearly procedures and maintenance will cost you up to 15% of the yacht's purchase price. But the price of yachting appears to be no impediment because many customers consider that owning their own yacht is more than worth the acquisition of funds and investing in it. Plus, every year, sales of superyachts are increasing. After all, cruising with your own personal ship is a luxury experience and you will definitely value your time on the boat, whether you spend it alone, with friends or with your family for important events in your life - or simply to enjoy your vacations.