Buying a yacht in Hong Kong
Buying a yacht for 2017 could be a profitable deal.
Perhaps end 2016 & 2017 it is the best time to buy a new yacht currently in Hong Kong. The last time we saw the same trend was back in 2008, when many people predicted a doom to the world’s financial system. However, there were many experienced buyers who quickly took advantage of the falling currency rate and especially falling British Pound rate and bought some very big yachts.
As the exchange rate stabilized and new yachts were lot more expensive, some buyers who wanted to sell their yachts for a good price after couple of years of usage were successful in doing so.
But mainly those who wanted to keep their yachts got a great price and value for the money they spent.
With Euro and British pounds touching so low against Hong Kong dollars and USD, it is best time for Hong Kong buyers to purchase yachts from Europe at this time.
But, What kind of yacht to buy? used yachts?
It is a question always if one should buy a second hand yacht or a brand new one. If you are buying from Europe, a second hand used yacht most likely will not match your requirements. Because mainly the yachts are used a lot more in Europe as they travel long distances in the Mediterranean seas and they also tend to have lower powered generator as the summer in Europe is not as hot as Asian countries. With a small Generator onboard and low power air conditioning system it becomes rather expensive and a long process to upgrade these once in Hong Kong. Another reason for not buying used yacht from Europe is also that surprisingly the yachts look a lot more older than their age. This is mainly because in Hong Kong we tend to make tailor made canvas covers and cover the yacht throughout the week. In Europe this is not common at all. The yachts are left open and get affected by constant sunshine and UV rays.
One more reason is that for luxury yachts around 50 footers lets assume. The Hong Kong owners generally have a full time crew who is experienced in maintaining the yacht properly. In Europe it is not common to hire full time crew to take care of medium sized yachts. Not unless it is a big sized super yacht.
So generally the used yachts in Hong Kong especially are in much better condition than the used yachts in Europe and America.
In the circumstances that the exchange rates are favorable, it always makes more sense and is safer to buy a new yacht from Europe. The yachts can be specified according to the requirement of Hong Kong owners making it rightly powered.
New Brands or old brands
It is important to check the factory before you purchase. There are new factories who have new concepts and trendy designs. But it can be a gamble. Because sometimes the new concepts are not tested enough and a owner can end up in a struggle to maintain any mechanical or structural repairs.
It is however always good to buy from factories that you know existed for a long time. Some of those can be famous brands but there are some which are not so famous in Hong Kong but have been in Europe for 100 years. So buyers need to know such factories so they can compare quality design and price.
Speed boats, what not to buy!
It makes sense to buy whatever your need is. But one of the things that looses its value the most are speed boats. So it makes sense to buy quality speed boats but not high end expensive ones. The reason for this is the manufacturing process of speed boats in Europe is generally the same. They use same technology, quality control systems and only thing that differs is the design. But again, in the size range of small boats, the design has its limits and there is very little difference.
Unless you have loads of extra cash or you are buying things via your public listed company then yes, by all means buy a million Euros speed boat, which has trendy outlook. But remember as a used boat if you get bored of it and when time comes to replace it. It will be worth almost nothing. It will sell along the lines with the other speed boats available in the market and if it is priced significantly higher it will stay in the lists for ever.
Same with medium sized yachts. It always help to understand the manufacturing process a little bit more, before someone sticks you a yacht and says that this is great because it has a particular brand name. Even if it seems popular it doesn’t mean it is a sensible buy. It is best to find an agent who has been in the business for more than a few years and understand the different aspects of yachts that add value.
I hope you found this article useful and informative. Please feel free to contact us for any questions.
Of Asia Boating Limited