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Buying a Yacht
2010-10-01 14:07
At any time of year, it’s hard not to be inspired by the variety and beauty of the many yachts and superyachts clustered around Port Hercule. But why stop at inspiration? While chartering is an option, there are several good reasons at the moment why buying a yacht of your own is the obvious next step. Despite the credit crunch, the superyacht market is by all accounts one of the most buoyant at the moment, and if you have the money and patience, the message is that there’s been no better time to buy, whether it’s a fast planing, triple-engined Sunseeker to take you to lunch at Club 55 in St Tropez at 55 knots, or a full displacement 80m palace with helicopter deck, swimming pool and private beach. We interviewed James Munn, of Monaco Yacht Group:
Why buy here?
JM: Monaco is rightly the centre of the Mediterranean yachting world, and with all the major yachting brokerages having headquarters there, this is undoubtedly the place to start your search – especially when the Riviera ports play host to the largest and most valuable yachts afloat every summer. The 2009 Monaco Yacht Show was fully booked up thanks to its undisputed position as the leading luxury yachting show and more than 100 yachts over 30m and ranging in price from 10,000,000 to over 100,000,000 Euros were on display.
What to buy?
Yachts, including super or ‘mega’ yachts come in four flavours: custom, semi-custom, production (new) and brokerage (i.e. pre-owned). The analogy with house-buying is exact: in terms of finance, you need to factor in initial cost, running costs – including crewing – and upkeep. Much of the last two can be offset by chartering (i.e. buy-to-let), while of course making sure that you take the opportunity to enjoy your boat yourself! Unlike cars and houses. Custom yachts require the greatest preparation and commitment to a project on your part but are by far the most exciting possibility: to have your own personal vision beautifully articulated by expert boatbuilders gives the greatest sense of achievement. Semi-custom, by contrast, is an immensely popular option – more of a joint project with the shipyard, the advantage of falling in with their own design and build expertise may well outweigh the fact that your boat can’t be personalized to quite the same extent. Production boats are bought ‘as is’, and provide a quicker route to ownership, while buying brokerage requires a smaller initial outlay, though of course such boats may require a sizeable refit.
James Munn adds: Perhaps in the new era of government stimulus for green initiatives and a growing desire to protect our environment we will see a return to sailing yachts dominating the market. Quieter, cheaper to run and with all the romance of the last golden age, new technology and materials have allowed sailboat design to stretch limits we could not imagine 20 years ago: 60m automated sailboats for round the world cruising or all-electric, push-button race boats.
How to buy
Three main sources of information for your initial research are online yacht brokerage sites, (it is advisable to buy from accredited MYBA (Mediterranean Yacht Brokers Association) Brokers), shipyards themselves, and of course big boat shows like the Monaco Yacht Show and Cannes Yacht Show each September. Whether you’re looking for a production, custom or brokerage yacht, there are plenty of companies ready to help you make your choice and assist with the process of buying. Most of the big names will offer a complete package of services to see you through, from choosing and customizing to financing, insurance and legal advice. For crewed options they may even deal with crew registration. Major brokers such as Camper & Nicholsons, Edmiston, Frasers and Nakhimov - all of whom will present at this year’s 20th Monaco Yacht Show - have international offices, and a permanent presence in Monaco.
James Munn again: Find some one you trust, and look at a few to really see what you need from your boat (easy swimming access, a gym or heli-pad), consider re-sale as the last years have been over-heated and prices inflated, and look at running costs. Any professional yacht broker will walk you through the process from inspection to negotiation - and appoint a marine lawyer to review the contract. Unlike property, debts remain with the yacht and full indemnity and clean title at purchase are important. A survey on a brokerage yacht is essential – few vessels are ever 100% - and this is arguably the best money ever spent on a yacht, whether the results are good or bad!
How much?
Buying a yacht of any size above 25m is an investment – you’ll need at least 5m euros - but it’s important to remember that with luxury boats the depreciation may well be less than you think, at least in the short term, and that prices right now are at their most competitive for some years. Prices range from around 20million to 80million euros for boats in the super class. For crewed vessels, expect to pay annually 10% of the purchase price in running costs. A major consideration will be getting good insurance. Brokers give good advice, but it’s worth shopping around: there are a number of reputable insurers dedicated to underwriting superyachts, among them Sturge Taylor (www.sturgeyachts.com) Pantaenius (www.pantaenius.co.uk), Onlyyacht, a division of Suisscourtage (www.onlyyacht.com).
The best harbours
Once you have taken possession of your yacht, you’re going to want to explore. You may cruise to the Italian Riviera, Sardinia, Corsica, Porto Fino, Elba, and have ample opportunity for some of the best and most picturesque sailing in the world - but you’ll need to know where to drop anchor. We list the details of the main harbours in the directory