War, Interest rates and boat prices?
- Thread starter tallyho
- Start date
slug zitski
Super Anarchist
Demographics is the major factor with Yacht sales.
the baby boom generation has the money and are currently retiring in mass
economic conditions don’t affect baby boomers with money to spend
the Covid issue is different …lack of mobility dented yacht sales and May influence the market for some time
AnotherSailor
Super Anarchist
If you can pay in rubles you might get a good deal ... not
slug zitski
Super Anarchist
Asking prices are always wishful thinking
at present boat work , refits , equipment…. are very expensive and supply constrained
factor this in when you make an offer
at present boat work , refits , equipment…. are very expensive and supply constrained
factor this in when you make an offer
12 metre
Super Anarchist
I'd say - it depends.
Used IOR warhorses and such - even ones with half decent interiors seem to have limited demand.
Examples:
A N/M 42 that looked to have a decent interior was listed at $16k.
A couple of NY 36's under $16k.
A couple of Farr 33's at under $10k
About four Schock 35's have sold at under $15k over the past couple of years.
Now mass market boats like Catalinas or boats considered "blue water" cruisers are likely a different story - but I don't pay much attention to those so I can't say for sure.
What I do know is there isn't much on the West coast that has much appeal to me at the present time. A few interesting boats on the East coast and Great Lakes - but trucking costs to PNW kind of removes them from consideration.
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Somebody Else
a person of little consequence
Do people get loans and pay interest for luxury items like boats?
Why?
Why?
slug zitski
Super Anarchist
If the loan costs 5 percent and money in the market generates 10 percent ….you would
Monkey
Super Anarchist
- 10,367
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12 metre
Super Anarchist
That is nonsense.
The only time it makes financial sense is if the proceeds of the loan are invested in the market.
In the case of using the proceeds to buy a boat, a boat is generally a non-performing asset - it generates 0 percent return at best.
Elegua
Generalissimo
slug zitski
Super Anarchist
Cash in your capital gains and your tax bill is huge
you guys need a lesson in money management
this is how billionaires , with no income, own megayachts
you guys need a lesson in money management
this is how billionaires , with no income, own megayachts
slug zitski
Super Anarchist
All those Russian yachts seized are owned by the bank JPM now has an inventory of megayachts
After Russia invaded Ukraine, Credit Suisse asked investors to destroy documents linked to oligarch yacht loans, report says
After Russia invaded Ukraine, Credit Suisse asked investors to destroy documents linked to oligarch yacht loans, report says
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SloopJonB
Super Anarchist
AJ Oliver
Super Anarchist
. . .only in our wildest dreams . .
except for the thrills, it's a way negative return mostly
For a pleasure craft yes.
But there are charter companies all around the world that use finance to buy boats & the profit generated covers the repayments & interest.
I assumed by the 'market' he meant that. My works as a sous chef on the big mega yachts, & apparently the thing is pretty much chartered non stop throughout the year apart from the times its in the yard.
danstanford
Anarchist
If you could reliably really reap those rewards in the market why wouldn't the lenders put their money in the market instead of loaning it to you?
In the US, you take out a loan on the boat, keeping money in the market, and write off the loan interest as a second home. That way 80% of the cost of the boat is working for you as an investment and 38% of your interest payment becomes a tax return. It doesn't make the boat free but it makes it cheaper to own. Just like a home purchase.