The economic outlook for the rest of the year and throughout 2023 depends upon who you talk to. Some economists predict that the looming recession will be minor. Others believe that the downturn will be significant in 2023. For those that invest in the stock market, some predict that the S&P 500 will stagnate at around 3700 points or lower. Those who watch the Dow Jones think that it will likely fluctuate at 30,000, give or take a few thousand points. If stocks and financials don’t sound too attractive for the coming year, let’s take a look at classic boats.
Why do classic boats hold their value?
Classic boats are one of a kind. Consider Chris-Craft. If you are looking at a Chris-Craft from the classic era, these boats generally increased in value by about 5% from 2000 to 2021. Some rare Chris-Craft boats include the 1949 22’ Custom Sedan or the 1941 19’ Custom “Barrelback.” Classic boats hold their value because of their rarity, history, and their popularity over the years.
There is also a very niche market of people who thrive on classic boats. You can purchase an antique classic boat and sell it after you have restored it. For example, the Antique Classic Boat Society has over 11,000 members spread throughout the United States. These types of organizations are a great market if you want to sell your classic boat after enjoying it for a few years.
What type of people should get into classic boats?
Many people who find a classic boat they like have a unique connection to the boat. It might have been of the same brand that you learned to ski on or was in your family. Sometimes, you come across a boat that is so rare, it’s a great investment opportunity. For example, the Chris-Craft Runabout “Barrelback”. Only a handful of the 23-footers were made during the Classic Era, so this is a great example of a deal that you can’t walk away from. Another reason to buy a classic boat as an investment is that you just love projects. If you’ve restored classic cars, you may be ready for a classic boat.
Will a classic boat be expensive?
The cost of a classic boat will be determined by its condition, its rarity, and other factors, like maintenance. You might run across a great buy, like this U-22, a 1947 Chris-Craft 22’ Sportsman. Many people will start a boat restoration and the restoration money will run out. Boats like these are looking for a home where they can be brought back up to the level that they deserve.
A classic boat is also not too expensive to maintain. Some classic boat enthusiasts will budget about 10% of their classic boat purchase price annually towards basic maintenance, like varnishing and painting.
Why classic boats are a great investment opportunity
If you are looking for a safe place to put your investment money, consider a classic boat. Purchasing one of these hallmark brands will be less stressful, bring enjoyment, and create a tradition in your family that will, in some ways, be more valuable than dividends on the stock market.