Are boats a good investment?

“Boats are money pits.” Boat owners who fell out of love with their vessel often tell a newbie this negative old adage. Yet, it’s not necessarily true. The key to making sure that a vessel is a good investment for you is to fully understand what boat ownership entails and to choose your boat well.

First, we’ll take an objective look at the advantages and disadvantages of owning a boat.

Pros of buying a boat

Unrestricted Access: Owning a boat means you can enjoy the water whenever you wish, without the constraints of rental availability or schedules.
Personal Enjoyment and Social Bonding: Boating offers unique opportunities for relaxation and quality time with family and friends.
Customization: As a boat owner, you have the freedom to modify your boat to fit your specific needs and preferences.
Maintenance Trust: Knowing your boat's history and maintenance standards provides peace of mind and reliability.

Cons of owning a boat

Maintenance Costs: Regular upkeep requires both time and money, which can add up significantly over time.
Rising Insurance Expenses: In certain regions, boat insurance can be increasingly costly and challenging to obtain.
Risk of Mismatch: Choosing the wrong type of boat for your needs can lead to costly mistakes and the need to start the buying process again.
Geographic Limitations: Your boating experiences may be confined to your local area, limiting exploration possibilities.
Weather-Related Concerns: Storing your boat in a marina can lead to anxiety during stormy weather due to potential damage.

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Making boat ownership manageable

To mitigate the drawbacks, consider these strategies:

Start Small: Opt for a smaller boat that you can afford without financing. This approach reduces both upfront costs and ongoing maintenance expenses.
Love for Boating: Ensure your passion for boating justifies the investment. Try different boating experiences, like chartering or crewing, before purchasing.
Budget Realistically: Beyond the purchase price, factor in the costs of maintenance, insurance, and upgrades. If these seem overwhelming, a smaller boat might be a better fit.
Shared Ownership: Co-owning a boat can split costs and responsibilities, making ownership more accessible and less burdensome.

Do boats retain their value?

The short answer is no. Boats go down in value as they age and the gear on board becomes old.

As time goes by, you’ll need to replace some of the equipment and you won’t be able to recoup the money you spend on it. Plus, you can’t recuperate any of the ownership costs (registration, insurance, mooring fees, and more).

However, if you look after it well, it will retain the value it has to you - be it being a great weekend hobby, a stress-reliever, or a vehicle to get you to stunning places.

Can you resell a boat for more than you paid for it?

Yes, if you buy an old boat for little money and you can refit it for cheap. A few people do this because they love to work on boats. However, you need to make sure you’re striking an excellent bargain and you don’t overspend on the refit.

If there was a time to do this, it’s now. The boat market has improved drastically since the pandemic hit in 2020. Before then, it was a buyer’s market and selling a boat could take years.

Bear in mind that if you buy a new or recent boat, you won’t likely be able to sell it for more than you paid for it.

So, does it make sense to buy a boat?

Yes, if you understand the costs related to the ownership of a vessel and that you won’t be able to recoup much of what you spend on it long-term.

No, if you expect it to retain its value or to sell it for more than you invested into it.

Think of a boat like you would of a car. You don’t buy a car assuming it will run smoothly for many years without maintenance and that you'll sell it on for more than you spent on it. Before purchasing one, you look into insurance and road tax costs to make sure you can afford them. The same goes for boats.

If you own a boat and maintain it well, however, you will be able to keep it for a lifetime. The hull of a vessel is extremely solid and can be repaired. Plus, every piece of equipment on a boat can be replaced. So if you’re able to afford it, you can keep your boat in tip top condition for as long as you like.