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Charter Boat ownership, is it like owning a Holiday Home? And is it profitable?


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The thing Ive found with holiday homes, the only time they offer good lifestyle balance is when they are managed by someone else. You get to stay in it in the down periods, but you dont want to be doing the cleaning or organising the keys (a lot now just use key locks).

 

Is that the same with hiring out a Charter Yacht? You are tied to cleaning it, etc etc.

 

And is there money to be made in owning a Charter Yacht?

 

I cant say cleaning a holiday home was ever fun, but I actually enjoy working on my boats, whether thats de scaling it or just polishing up the gel coat, its a lot niceer cleaning a boat than a home imo.

 

http://www.cruisingworld.com/charter/charter-companies-owning-charter-sailboat#page-2

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I have to ask, why do you keep posting the link to cruising world and the same subject you then ask questions of here?

It's pretty hard to make money from chartering your boat here in NZ. I imagine Auckland and BOI could be profitable. The Sounds Charter boats seem to struggle. It really depends on what the boat is, hire charge, bare boat or skippered, etc. You can go through a charter company that do all the maintenance and hire bookings and cleaning between hires and you get a bit of coin. Or you can do it yourself and that means you do the cleaning between hires and have to make the bookings.
       The one caution, any boat under charter in NZ must be in Survey. That can be difficult to get on a boat that has not been built under survey and may not even make the survey requirements. Sometime a Hull may meet the requirements with additions, which can be expensive. Then you have a five yearly inspection to meet and that can also be expensive depending on boat. Mainly in the drive type. For instance, anything with a Hull shaft must have the shaft removed and tested.
It used to be that putting your boat in charter was a way to right off a heap of tax. But that has all been clamped down on now.

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Yep, tax breaks don't exist, survey rules are crippling and your boat gets trashed.

 

When I bought my 1020 in 1990 it still had a season to run on it's charter contract. In that time it was majorly damaged twice hitting rocks by 2 charterers.

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I would never look at either a holiday home or a charter yacht as a profit, I worded that badly, what I meant was does it help pay the bills for its upkeep etc?

 

Im thinking long term, a $250k Cat, Im wondering how much money you would get in your pocket from the charter management company etc and if its only enough to pay upkeep or it would help pay for the yacht (even though it would be freehold)

 

People rent their bach out during peak season to how pay for it a bit, but IMO there not profitable as such, its more a lifestyle thing. Like why have a holiday home sitting empty most of the year when you can get some good cash in peak season for it.

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There are 100 variables but these would be needed before you even start thinking about it

 

What is the cost of the boat

How old is the boat

What is the maintenance/replacement schedule for that boat and it's equipment

Where is it based

What are the marina charges

Will it spend all year there

How long are the peak, shoulder and off season

What are the charter rates in that area for each season

What is the expected demand

Who will handle bookings, servicing, provisioning, departures and return

If professionally done, what are their rates

How involved do you want to be in it's management

How many days do you want to use it and when

What is your income and sources and marginal tax rate (and partner)

 

If the answer to any of these is "i don't know" or "it's too hard" then forget it

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I hear charter groups are a good idea if you have a good type of survey boat , they do the off shore marketing and your boat in it , not shore what fees they take , and they have a deal with berthing so search that out try Shane walker he's been in the charter bis for years ,and knows the ropes ,

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Got a charter in Croatia later this year. Included is a fee for underwater survey post hire. I guess that's fair, but wasn't done after I hired a boat in the sounds a few years back.

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