Mega yachts or superyachts are private luxury sea vessels designed for pleasure cruises and sometimes even full-time living. They are operated by an independent crew and maintenance team and can be either sailing yachts, motor yachts, or a combination. These premium boats are like floating palaces, often towering above 200 feet, with everything you could possibly need aboard. You’ll find that mega yachts exceed all expectations and their elegance, amenities, and power live up to their price.
Apart from the higher value and price, a mega yacht differs tremendously in size and features from a luxury yacht. Each one is unique, but they usually come with numerous amenities like a large swimming pool, a spa, a cinema, a gourmet kitchen, and even a large helipad. You’ll often find these vehicles have staff and services similar to top hotels around the world.
Guests can use all of this while cruising or while docked. These boats can access international waters and many exclusive locations with their prestige.
Most mega yachts are one of a kind with unique names, designs, amenities, and histories. They are so distinctive that there are even watch groups dedicated to spotting and tracking these mega yachts all over the world!
A Brief History of the Mega Yacht
These sea palaces began appearing in the 20th century when wealthy individuals sought private yachting with all the grandeur of a five star hotel. Seeing the demand, several naval architects and yacht builders worked on making large steam engine luxury yachts. The earliest superyachts became the precursor for modern models from shipbuilders like Princess Yachts, Northcoast Yachts, Heesan Yachts, and more.
Some Famous Mega Yachts and Their Owners
There have been many notable luxury mega yachts over the years, all owned by wealthy individuals. The largest expedition yacht, the Octopus, was built for Paul Allen, one of the cofounders of Microsoft. The heiress Emily Roebling Cadwalader owned the Savarona during the 1930s and 40s and was once used as a film set while in the North Sea. Others famous yachts include:
- The Rising Sun is one of the largest yachts in the world and was the name of the yacht used by Oracle CEO Larry Ellison.
- The Solaris was once the world’s largest yacht. Roman Abramovich is the rumored owner, but most of its development happened secretly.
- El Mahrousa has been in existence since the late 1800s, and it remains the presidential yacht of Egypt.
- The Ocean Victory is a Fincantieri superyacht owned by Russian billionaire Viktor Rashnikov and sightings of this vessel are rare.
Why Buying a Mega Yacht is a Great Investment
Yachts are an expensive asset in the world and many domestic and international tax implications come with their price. Knowing the ins and outs of any regulations and careful strategizing can allow a mega yacht to become a benefit for the owner. One of the main strategies for buyers is an active yacht ownership. In this scenario, the owner places the yacht in a charter program so it generates income. The income generated from the mega yacht charter reduces the tax cost of yacht ownership. Although the owner does have to share use of their yacht, it is at their discretion. Another part of the tax code is the hobby loss rule. An owner can offset tax implications if they demonstrate the ability and intent to make a profit for at least three of the past five years.
These strategies may require help from yacht sales professionals. You’ll need yacht management experts, like those from The Advantaged, to help you maximize any yacht ownership opportunity that comes your way.
Mega Yachts Increase in Value Over Time
Mega yachts do not depreciate in the same manner as other yachts for sale. Many of them maintain a premium and can even sell for higher prices later in their lives. The secret lies in maintenance and care. If an owner can keep their boat in pristine condition, they could sell it for anywhere from its original price up to 30% higher. Many of these vessels’ value comes from their history, quality, and make.
Selling a Dream Yacht and Realizing Gains
One of the concerns among buyers is if they can potentially gain from selling their vessel. There are some challenges present, like marketing and business needs. Getting a profit from it means being able to extract the value of the boats. Today, selling a yacht is best through companies like The Advantaged, which have expertise. We help people find the right yacht for them and can be skilled brokers for mega yacht transactions.
Buying Your Mega Yacht
One of the concerns that many people have is the amount of capital they need to buy a superyacht. One of the ways to take advantage of a good offer is to research exchange rates. If the euro’s value is relatively lower than it has been in the past, it makes sense to seek out European purchases at this time if your base currency is USD to maximize your money’s value.
Alternatively, cryptocurrency is one of the most reliable ways to purchase the world’s high-valued goods like a yacht. The issue with some mega yacht sales is that it often takes time for transactions to finish. There are a lot of middlemen to deal with, and each of them has a list of fees. Cryptocurrency becomes a way for a buyer and seller to transact directly. It can mean lower prices and higher profits because there is no middleman involved. Transactions are also faster, with some realizing the right price in minutes.
Which Flag to Register Your Mega Yacht Under
It’s ideal for a luxury sea vessel or a global fleet to register under international flag marinas. These countries have a lot of businesses that search yacht assets for favorable tax situations and protection. These places have created businesses like shipyards and cruising lines to help people own and operate a luxury ocean vehicle without issue. The country you choose should be a part of the Paris White List. Countries on this list follow international standards and yachting requirements, ensuring you are complying with any and all laws.
Buy a Yacht in Miami with The Advantaged
The truth of the matter is not many people can actually afford a mega yacht. But this doesn’t mean you can’t have a luxury vessel of your very own! The Advantaged offers yacht brokerage services to help buyers find the perfect yacht for their needs and budget. We are very skilled at connecting buyers and sellers and can help facilitate a purchase where everyone is happy.
Buying a yacht is a detailed process, requiring experts who know how to deal with and work in the luxury vessel environment. Having The Advantaged by your side can make purchasing the boat of your dreams an easy and smooth process.