Yachts may be the ultimate status symbol for the ultra wealthy – but apart from providing experiential luxury, it is difficult to quantify their return on investment. Especially when they depreciate in value.
According to Wealth-X’s The State of Wealth, Luxury and Yachting report – only 4,476 individuals in the world own a superyacht and the average value of one is USD10 million. But of course, that’s on the high end.
Nick Stratton – Country Sales Manager of Singapore at Simpson Marine, a yacht sales and charter company – says yachts can range from small dayboats to superyachts. He reckons there are approximately 800-1,000 yachts in Singapore alone.
But not only are yachts expensive, Stratton says the general rule when it comes to running and maintaining one is typically 5-10% of the purchase value per year – less if it is new.