Out at sea

Yachts have become the newest status symbols for the rich and famous.

MYou’ve got that BMW 7-series in the garage. You’ve travelled the world, flying first class and staying in luxury suites everywhere. Your address is, but of course, the finest. But to be considered seriously wealthy now, just all this isn’t enough. You need to have your own yacht as well. For if one thing that owning a yacht says about you, it is that you have all the money in the world to own something that has little or no utility factor. A private jet, a really fancy car, a large house: all still fulfill a basic need. A yacht is the only toy that a rich man can buy which has absolutely no use, other than it being a style statement.

 

But buying a yacht can be complex. Lalit Choudary, director, Infinity Yachts, says, “Buying a yacht can be a bit like buying a house. One needs to first decide on the application. How many people would one want on the yacht? Will usage of the bedrooms be high or will usage be largely on the saloon deck? Based on this, one can decide the size of the yacht. Does one want a flybridge (triple deck, more privacy, air-conditioned comfort on saloon deck, et cetera) or a cruiser (two deck, compromise on privacy but a sporty look). These are basic decision criteria. After that, one can decide on engine capacity, navigation equipment, entertainment system, interior fitouts, et cetera.”

According to Choudary, Indians prefer to buy flybridge (triple-deck), and the best size for a first-time buyer would be in the region of 55-75 feet. Opines Choudary, “The smallest yachts are 40-50 footers. But most yacht owners realise quickly enough that is too small. What is selling in India are bigger than that.” Giving a ballpark figure, Choudary estimates that a 60-footer can cost upto Rs 10 crore and a 70-footer can cost Rs 20 crore.

Can one negotiate the price and hope to get a discount? This is what Choudary suggests: “Yachts can be selected with a variety of optional features that could go up to 10 per cent of the cost of purchase. Negotiation is typically done on the all-in price to the customer. In weak economic cycles, the extent of discount can be very attractive to a buyer. In more robust economic periods, discounts are typically limited as demand shoots ahead of supply and most reputable builders will have a supply constraint.”

Choudary, who represents Princess Yachts in India, says that the brand from where you buy a yacht is important even though buying from East Europe or Australia could get you a yacht which is almost 30 per cent cheaper. Says Choudary, “People are brand conscious.”

Another aspect of buying a yacht is its maintenance. Choudary estimates the cost of the upkeep thus: “The rule of thumb elsewhere in the world is 10 per cent of the cost of a yacht.

In India, it ends up being cheaper. Facilities are under-developed and tariffs reflect the prevailing infrastructure situation. Berthing costs a fraction of what it would cost internationally, where berths are typically fully booked and new supply is constrained. Crewing and housekeeping costs are also lower in India. Parts and consumables end up costing more than abroad, given limited local availability. Depending on the size of the vessel, it could cost 4-6 per cent annually.”

With buying a yacht becoming easier in India, it’s time then to set sail to one’s dream lifestyle.