Selling your yacht in a recession
Recession is not the end of the world; it’s a correction that brings the laws of supply and demand into equilibrium. This correction in general brings a degree of pain. However there are ways to minimise the pain. Here is a personal viewpoint, on pain mitigation, from Boatshed Gibraltar. It’s been developed over the last year while operating in a recessionary environment.
Pricing is the mechanism by which markets come into equilibrium; a point that we believe we reached three months ago. Asset price deflation is over; sales have accelerated over the summer as smart buyers have moved in to clean up. We expect prices to remain stable for the next couple of years. So if you want to sell your boat it must be priced realistically. Boatshed Gibraltar not only knows what prices similar boats are offered at but also knows the prices at which deals were actually closed and will be able to provide sound advice on yacht pricing. Finally on the subject of pricing, price your vessel in pounds if you can as the Euro exchange rate is attracting Euroland buyers to Gibraltar in droves. Insist, if it suits you, on getting paid in pounds so that you are immunised from exchange rate fluctuations between contract exchange date and completion.
Any economist will tell you that taxes distort the market pricing mechanism. To the degree that you can transact in a territory that does not levy VAT, registration taxes or wealth taxes then you should do so. There is no need for the vessel to be in Gibraltar for the deal to be struck within Gibraltar’s jurisdiction. British Law is simple, effective and in Gibraltar’s case it’s also tax efficient. We do however need to visit the vessel so putting into Gibraltar or a nearby port is the starting point for working with Boatshed Gibraltar.
Market your boat with professionals. Selling a yacht on eBay may seem novel and low cost but when you factor in the time wasters and the lack of security for the buyer it is highly unlikely that a successful deal is possible. Working with a reputable broker like Boatshed Gibraltar both the buyer and seller are contractually protected and practically protected by the use of a client account to hold funds until deal completion.
The majority of boats for sale are owned by non-resident owners who can benefit from a local broker who can show the boats to prospective clients in the owners’ absence. When that broker is Boatshed Gibraltar the local broker suddenly becomes part of a global network for brokerages with 300,000+ registered yacht buyers and with the global reach of the internet to find buyers for your boat from the four corners of the planet.
To know more about selling or buying a yacht anywhere in the Mediterranean start the process at www.boatshedgibraltar.com.