Location, Location or Re location

When looking to buy or sell real estate, the words Location, Location, Location are so often associated the marketing and valuation. But how does that relate to yachts where their location can be so easily changed? How does location affect the sale of a yacht?

The world seems to be getting ever smaller, communication is instantaneous and the opportunity to sell and buy products or services on the world stage is getting easier. For a lot of our clients, international trade is the norm and has become a key contributor to the growth of their business.

The numerous listing websites allows those looking to buy, search for their dream yacht worldwide without leaving their desk. Simiarly those looking to sell can reach a global audience. Ultimately though if a sale is to be made the yacht and owner will need to be in the same place. There are only two way this can be resolved. Either the client travels to the yacht or the yacht is delivered to the owner

From a global logistics point of view we see Yacht Brokerage as a fully-integrated international industry, driven by currency fluctuations and the strengths & weaknesses in the world economies. A good example of this is, since 2009, the UK has effectively became a ‘best value’ market for brokerage yachts thanks to the relative weakness of the Sterling against the Euro, Dollar and Scandinavian currencies. This has naturally attracted the attentions of the International buyers for whom we deliver their yachts home. In 2013 we saw a similar trend from Australia with a steady rise of inquires and contracts for yachts in the US and Europe. In this scenario the location of the yacht has been adjacent to the seller and the local currency has been the dominate factor. The delivery had taken place post-sale.

But let us also consider the benefits of relocating a yacht to attract buyers. Sellers would be unwise not to consider this option. Yachts located in high profile locations such as Ft Lauderdale, the Hamble or Palma will have without doubt have a greater visibility and greater potential for a sale. This has been the motivator for many of our more recent voyages where the delivery has been pre-sale. Recent examples include voyages from Guatemala to Ft Lauderdale, Malta to Mallorca and the Isle of Man to Southampton.

It is important that Yacht Brokers and sellers recognise the importance of the yacht’s location and how it affects a sale. Reliance Yacht Management works closely with the leading multinational brokerage networks to provide solutions and make distance between a buyer and a yacht no barrier to a sale.