It’s Boating Season: How to Buy a Luxury Boat and Not Sink Your Budget

A luxury boat is an exciting option.  But buying a luxury boat has to be done after careful thought and planning.  Use the below ideas so that it does not sink your budget:

Used ones:  Buying used boats is a cost-effective idea.  Brand new luxury boats are costlier.  You can save money when you buy boats which are resold.  But inspect them carefully.  Sometimes the seller might try to repaint to hide the rusting metal.  So, consult experts and seek guidance.  When going for inspecting the boat take a knowledgeable person along with you. If the condition of the boat is such that you have to spend more money on fixing things, better you drop buying.  Repairs and renovation are costlier, and these will burn a hole in your wallet.

Letting out: You can enter into an agreement with 4 yacht for letting your boat to them for their chartering purposes.  They will ensure good maintenance and safe use of your boat.  You can also use them for own vacation purposes for the period agreed mutually.  Letting out will generate a good income which ensures a high return on the amount invested in the boat.

Taxes:  Check with your tax consultant as to what tax benefits you can get out of the investment.  Avail of the tax sops so that you save money in return of investing on the boat.

Claim depreciation and expenses:  Think about the possibility of using the luxury boat as a business asset.  You will be able to use it optimally instead of the asset being idle.  Also, when you use it as a business asset you can claim the expenses, depreciation etc.  When you use the luxury boat as a business asset, opt for mortgaging while buying the boat.  You can claim the interest payments as business expenses.