War, Interest rates and boat prices?

tallyho

Member
207
83
Norway
The Covid premium on boat prices is still alive in Northern Europe...but.. 

..with war, inflation running high and low consumer confidence, are things slowing down? What's the broker / used sailboat market doing in your part of the world?

 

slug zitski

Super Anarchist
4,976
774
worldwide
The Covid premium on boat prices is still alive in Northern Europe...but.. 

..with war, inflation running high and low consumer confidence, are things slowing down? What's the broker / used sailboat market doing in your part of the world?
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 

 

Parma

Super Anarchist
2,904
367
here
I see prices continuing to escalate. New, used, power, sail, big, small, all of it.

Except maybe superyachts.

 

slug zitski

Super Anarchist
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774
worldwide
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 

 

12 metre

Super Anarchist
3,745
612
English Bay
I see prices continuing to escalate. New, used, power, sail, big, small, all of it.

Except maybe superyachts.
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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12 metre

Super Anarchist
3,745
612
English Bay
If the loan costs 5 percent and money in the market generates 10 percent ….you would 
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
4,300
1,840
God's Waiting Room
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.
And you'd better have the carry if your position becomes a long-term one. :D

 

slug zitski

Super Anarchist
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worldwide
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 

 

slug zitski

Super Anarchist
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774
worldwide
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

 
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MiddayGun

Super Anarchist
1,061
384
Yorkshire
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.
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. 

 

Murphness

Super Anarchist
1,126
61
Boston
East Coast US inventory is so low that the market hasn't changed a bit. If people start losing their jobs you might see a change in the market - so far that hasn't happened thankfully. 

 

221J

Member
119
43
CT
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.

 
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