As investors, it’s important to know the nuances of the sailboat business. Formulas that work in most cases may not in certain others. Such is the case with cult classic sailboats.
Specialty boats and cult classics are production, limited production, or one-off boats that have their own nearly religious following, hence the term “cult”. With many of these vessels, the niche market is built right in simply by virtue of what they are.
If you are fortunate enough to find one of these sailboats for sale, the best thing going for it is that there is almost always a willing buyer for such a boat. The downside, it seems, is that these buyers tend to be highly educated about everything concerning the design itself – sometimes to the point of extreme perfectionism.
From an investment standpoint, we must take this into consideration before making any improvements or modifications whatsoever to the vessel.
Much like a classic car, and even if she happens to be a ‘fixer upper,’ certain types of vessels are worth more in their unrepaired state than they would be if modified in the hands of an enthusiastic but misguided owner. Though this is counter-intuitive, it is essential knowledge to possess and will save us a lot of money and headaches.
So if we find a cult classic sailboat, but it has been irreversibly modified, we should usually pass on it, even if the price is tempting.
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