Have you always dreamt about it and now you’re finally ready to take the leap? You can’t just spontaneously take an around-the-world boat trip, but your motivation is still the fundamental driving force. Next, you need to make the dream possible in practical terms. In this blog we’ll explain the benefits of doing so with a charter program!
In preparation for life aboard a sailboat, you could spend days, weeks, months and even years pouring over reference books and reading through cruising blogs—so many questions, concerns and wanting to know what to expect.
Honestly, it’s not until after you’ve set sail into the sunset that you realise, you’re only partially prepared for what to expect. Knowing how to sail is only half the battle. Learning to live the cruising lifestyle can prove to be just as challenging!
You’ll need some preparation, planning and confidence before heading out on that awaited Atlantic crossing. That’s why entering a charter ownership program might be the perfect start to your dream lifestyle.
By the end of this blog, you will have learned why charter management it’s a great start towards that longed for cruising lifestyle. You will not only learn about what type of yacht to look for, but also how to avoid the pitfalls that may occur. Let’s dive in!
Why it’s a great idea to start your journey towards your live-onboard lifestyle with a yacht charter ownership program:
- You will gain a lot of valuable experience by the time the charter period is over.
- You will also have the chance to explore all those magical destinations and maybe even pick out a few favourites to visit once the charter period is over.
- The charter income will help you with the ownership costs and upkeep costs.
- The initial hitches that usually occurs with new boats will be remedied by an experienced charter operator.
- A highly rated charter fleet operator will ensure that your yacht is professionally maintained and take care of.
- With certain charter fleet operators, you can plan a re-fit program that prepares your yacht for your adventures after the charter period.
Why you should look for a better-build yacht:
There is a large stock of second-hand vessels available in the market which you could refurbish and take over the leasing contracts. We should also expect a few charter companies that won’t survive the 2020 season to put their fleets for sale.
These operators will most probably be adopted and taken over by other charter operators. As a private prospecting person buying a yacht for charter, there are pros and cons of taking over pre-owned charter yachts. Buying pre-owned boats on the second-hand market to introduce them to the charter market later present extra challenges.
The three main reasons why you should be aware of buying pre-owned yachts for charter ownership:
1. There are no “bargains or deals”.
The chances are slim you acquire a deal that outweighs a balanced charter management offer from Yacht-Match. Such a proposal is created out of a step-by-step process to ensure you truly get the most optimal solution. A bargain on the pre-owned market translates into a lot of aftermarket labour and preparations. You have to compromise on what you set out to acquire (expect a maximum of 70% of what you want and can get).
2. A good deal is more than a seemingly low purchase price.
It’s actually the total investment plus management that makes a good deal. It would be best if you considered a must-buy-price and a deal-too-good-to-pass-on should in light of the added costs and implications of transferring the rights.
3. Demand and supply – the most sought-after boats almost cost the same as a new one.
The yachts you would want to consider (most in demand/ best for charter investment/ highly rated models) have high re-sale prices and sales rate. The residual value and sellability indicate that investing in a new yacht for charter makes more than practical sense and can be considered an intelligent investment scenario.
A good example is the catamaran market. Current re-sale values are close to 90% of the original purchasing prices, which results in depreciation as little as 21-23% after 5-7 years. In the end, the main reason for buying a pre-owned boat is budget. It’s fine to buy a pre-owned boat, don’t get us wrong! But it’s important to remember the extra costs. It might be a costly affair since you need to update and modernize the boat to suit your needs.
What do we know about buying charter boats, or introducing pre-owned into charter?
First of all, researching the matter online will take you more than a few weeks reading. The issue is discussed widely among current boat owners and future prospecting boat owner for charter and defended avidly by the sellers (charter operators and the regional dealers).
There are few excellent YouTube videos on how to buy a pre-owned cat. We particularly like the video of Nick O’Kelly and his wife! They are into their 5th live on-board boat, have experience and give an accurate and considerate description of a “how-to” scenario, not taking any unnecessary risks to achieve what they want. This time it was a catamaran they chose and from a charter company.
What do we know about buying charter boats, or introducing pre-owned into charter
The video is neither advocating that you buy a second-hand catamaran, nor a charter boat, nor is it deterring you from the idea; it just illustrates the journey you most likely would have to take and what it requires. Let’s have a look:
In the end, it pays to know what you are getting yourself into. I’ts always wiser to start in the right end of your prospecting – making sure you research your numbers and make a clear Business Plan. Or at least compare the charter programs offered on the market and making sense of them.
So, why not work with a professional consultant or broker that share your interest and goal, and to pick a better build boat (technical more advanced and better build-technique) and prepare it for best of both worlds, the charter market and your blue water adventures!? Read more about how to buying a used yacht for charter ownership here.
The new build yachts – What to look for
So, let’s have a look at how the yacht-market is doing right now: During half of last year prices have actually increased with 2-3 %. The shipyards have reduced their production and in spite of the pandemic the demand is still very strong. There’s no need for special offers or attractive payment plans from the shipyards, as the dealers are struggling to get boats for their clients.
Shipyards will want to offer incentives in terms of attractive payment plans and secure the production line is obtained, and their dealership network is healthy and able to represent the brands locally.
Our advice is to focus on boats from brands that are performing well, e.g. the Beneteau Group, with its Jeanneau and Beneteau brands. The Beneteau group has seen taking market share and by proving themselves not just in end-user demand (owners and charter guest) but also to charter operators. Professionals who have to deal with the day-to-day issues of running charter operations and the importance of having a fleet of easily maintained yachts and after-sales support from the shipyards.
Let’s see what the experts think about a new build yacht vs a used yacht
Here are some great tips for preparing yourself in the best possible way! Even if you still have to decide between a multihull or monohull, we recommend reading the book “Catamarans: The Complete Guide for Cruising Sailors” by Gregor Tarjan. It’s a must-read for boat buyers. To quote the foreword:
“If you are contemplating spending hundreds of thousands of dollars on a cruising catamaran, the small price of this book is probably the best investment you could possibly start with“.
In this book, Gregor Tarian talks about how the charter industry was terrific because of the fact that the yachts were mass-produced, the price of vessels came down. But then goes on to say:
“A lot of blame, now that we have praised them, goes to the charter industry which commissions thousands of new cruising cats each year. In order to update their constantly abused fleets and with the goal to increase profitability, charter companies prefer multihulls with the most space to length to price ratio. This keeps acquisition cost at a minimum yet maximises revenues when renting to large parties.
The only problem is that these types of charter catamarans often have mediocre performance and sometimes dangerous behaviour in challenging sea conditions. Often hulls and bridge pound against the waves and older catamarans purchased from the charter fleets for bargain can end up being a nightmare to own. This is not to say that there aren’t good charter caps that one can obtain at a good and still enjoy their boat. However, one should never forget the purpose of the boat, and the forces the sea can throw at you.”– Gregor Tarjan
Sailing La Vagabonde is also another great source of information when it comes to blue water cruising!
Here is a great video where the Australian couple talks about the risks when buying a used yacht and how to avoid getting mislead. They also give away some tremendous blue-ocean sailing tips! Make sure to check it out:
How will Yacht-Match help you take the first steps towards your live-onboard lifestyle?
The bigger companies that offer these standardised programs (i.e.: Navigare yachting, Dream Yacht Charter, Moorings and Sunsail) usually have programs and forms of investment where they have predetermined the terms and what is best for them (i.e. the charter company), leaving you with little or no chance to change anything.
With Yacht-Match will provide you with customised solutions for owning a yacht in charter. Our yacht charter management programs are also deliberately set up to define all the details and the yacht’s specifications according to your preferences, right from the beginning. The Yacht-Match solution is ideally configured and matched with our network of niche and premium charter operators around the world.
How does a tailored charter management work in practice?
-Let’s break it down!
The Yacht-Match EXPLORER program is a unique yacht charter ownership explicitly designed for those planning to make their overseas experience.
We will tailor the yacht specification and the set-up of the charter ownership towards your needs. You can enjoy the benefits of charter management, and at the same time, allow yourself the best possible preparation for blue ocean sailing and voyage.
The Yacht-Match EXPLORER program is an excellent way to benefit from a charter ownership of your preferred yacht. While receiving the right guidance and professional support from our team of dedicated specialists.
What makes this program unique?
The EXPLORER program is deliberately set-up to customise the yacht specification and ownership program from the beginning of the enquiry and proposal stage – ideally configured and matched with our network of niche and premium charter operators around the world.
We will inform you through professional guidance and recommend the specifications for a bluewater yacht package and added equipment, depending on your preferences.
The Yacht-Match network, with more than 62 bases around the world, allows you to choose from several starting points. You’ll have access to charter operators that will be able to extend your charter management if you like to re-enter the charter fleet after your long overseas experience.
In other words: The Yacht-Match EXPLORER program is tailored toward your needs. You will enjoy customised charter management with a well-prepared yacht without losing any of the traditional charter program’s benefits.
Who does this program suite?
The EXPLORER program suits the buyer that would like to have:
- The option to decide the length of the charter ownership program (free to join and exit over 1-10 years)
- The option to join other bases/charter fleets around the world, if needed to re-enter the charter management program again
- Professional guidance and support to equip and prepare a yacht for an ocean voyage and comply with a preferable charter configuration
- Access to the best niche charter operators in the world
- Legal aid and understanding of correct registration and financing
What can I expect?
We guide you through the entire purchasing process and open the market for you. You’ll get a broader perspective and become equipped with our unique comparison tools and financing options with the best deals on the market.
We enlighten you by being your unbiased and professional consultant, unveiling the true potential of tailor-made charter ownership. You will become informed and empowered to make the best decision and your lifestyle investment come through!
Explorer Program Details:
The EXPLORER program is a bespoke charter management program, configured to meet the requirements of a well prepared and correctly specified yacht to be operated in charter and managed by yourself in your blue ocean voyage.
We serve as your broker and dealer in selling the yacht and as your professional unbiased consultant to guide you through a proposed plan. We will offer you a range of options with a portfolio illustrating the suggested boats, financing, and EXPLORER package with the correct matched charter management.
The Final Proposal and end offer will contain a correctly equipped and specified yacht; details of delivery & registration; details of the charter management and matching operators; financing options; and a contingency plan for re-entering a charter fleet during the next maximum of ten years.
We hope this article guided you to a better understanding of a tailored charter program! Don’t hesitate reaching out to us if you have any questions!
Our Goal – To Help You Become A Better Decision Maker
The best yacht charter or boat program is the one tailored to your needs. Charter companies offer different ownership options to choose from, but they are often highly standardised.
You should be able to choose the yacht you like in your favourite destination. It’s also important to have a charter operator you can trust and that won’t turn their back on you as soon as the deal is done.
Choose a program that fits your goals and wishes – which is the best yacht charter ownership solution!
Do you want to experience what that bluewater cruising lifestyle is all about? Fill out the form below!