frequently-asked-questions_charter_investment_ownership_management

frequently asked questions: Owning and Investing in a boat for charter

Here are some answers to the most frequently asked questions (FAQ) regarding owning and investing in a yacht for shared access -or ownership options, charter ownership, fractional boat ownership, charter investment programmes or charter management.

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Yacht-Match Services

Tailored ownership solutionscomparing the standard programs to custom.

From our +30 years of experience working in the yachting industry and being closely involved in the development of the charter market, we have developed smarter yacht ownership solutions that can help you either offset costs; finance your yacht ownership; or even become a more enjoyable way of investing.

Are you considering yacht charter ownership and found many of the standard offers and programs from bigger vendors and charter operators are actually duplicates and not suitable for your wishes?

With you as our principal, we create unmatched charter ownership solutions that outperform mainstream charter programs.

  • Standard programs have obviously the aim to create as much value for the charter company, with the use of your investment
  • Standard programs are only possible with standardised boats
  • Tailored programs are mutual beneficial; the operator and investor should gain from it
  • Tailored programs require tailored boats. Offer something unique

You are our principal - you'll make an informed decision and we will manage it for you

 

To start, Yacht-Match is not a sales-driven company, we are a consultancy company with the aim to give you a better overview of the options and become better informed.

We represent your interest and are employed by you, our principal, and not by one partner nor a specific shipyard. This ensures you receive a professional advisory and unbiased consultancy service at all times.

Our advice is based on comparisons and will always illustrate a “pros and cons” situation. As such, we can package what we can clearly prove to you would be the best matching proposal and scenario.

All of our assessment and comparison tools are subjected to objective review. We only work with market data and feasibility studies for charter income projections and estimations that are accumulated from our partners worldwide as well as the banks and leasing companies specialised in the yacht charter management industry.

We start by mapping your interests and preferences and presenting an initial market review. All along the consultancy, we are adhering and referring to your preferences that we agreed at the start-up. We supply you with interval advisory reports leading up to the final Yacht Charter Ownership Portfolio.

We represent and offer charter management and charter ownership programs as a sales agent for one of the biggest charter companies in the industry. We also package programs for the smaller companies, our partners, to specifically meet a win-win solution for an investment with their specific highlighted attributes.

With this information, we can tailor charter management for you and use our service to receive an improved version of the traditional charter ownership programmes one comes in contact with on the market. 

As such, you will always have a comprehensive overview of all the proposed programs and offers from the industry, compared with your own individual charter ownership proposal, which we tailored to better fit your preferences.

All of our assessment and comparison tools are subjected to objective review. We only work with market data and feasibility studies for charter income projections and estimations that are accumulated from our partners worldwide as well as the banks and leasing companies specialised in the yacht charter management industry.

We represent and manage the sales for a network of charter operators worldwide. These are handpicked and selected by us for their unique qualities and excellent ratings. They are reviewed yearly and we are in constant contact with third-party examiners, such as Yacht-Check and Euminia, and our partner network of leasing and banks to review our operators’ financial health.  

Naturally, every sales representative will claim they do, but they are representing their own interest and products and principal.

It’s a healthy competitive market at large, but most of the bigger charter companies and dealerships offer the same generic “good for all” and time-share services and products, branded and marketed differently.

You also find that most agents and dealerships will have some knowledge of the market and can offer laymen advice and point you at the right direction, or even make a deal together with a few charter companies to help you get going. This is often with heavy discounts, since they’d like you to make a quick decision and not start investigating other options and find out what the market can offer.

What’s new is a steady increase of bloggers and yacht owners or “independent websites” sharing experiences and offering how-to advice in abundance, only to gain interest of the bigger charter companies and agencies so they become paid in doing so. Effectively, their advice and guidance is often a disguise and a strategic way for industry leaders to find new vendors and channels to market their products with little branding. Thus, YOU the client and buyer think you are receiving a helping hand and guidance from a non-professional and independent advisor.

We don’t use marketing jargon nor do we represent the interest of a third party.
This shows in the consultancy assignment, where you get comprehensive guidance and develop a better understanding of what is a good investment, what is the best option for you as well as how to manage expectations and overcome preconceptions that you might have had. 

With our unique position in the market and our partner network, we can convert this business intelligence and create unmatched offers and customised proposals that outperform traditional charter management programs. You can present an offer you have received already and we can match that as basis.

All of our consultancy clients are presented a business plan and investment portfolio that goes along with a total assessment and advisory report of the matching options for an optimal charter ownership and management. The investment that you are making is financially guaranteed to outperform any other standard offer that you will find on the market.

The idea that you will get the best offer from ONE single sales representative or a few of them that are heavily represented on the market, is in itself only limiting your options. In addition:

  • the offers you get from the bigger charter operators and dealerships all more or less mimic each other,
  • most of these offers are standardised – you are left with a time-share product and service.

To meet your particular needs and preferences, the only way is to investigate the market and match all the components of the deal: The yacht, the operator, the charter management, and the business plan are tailored to optimal conditions.

The start up fee is paid back when you decide to purchase a boat

Our consultancy service fee is seen as a commitment fee – as such, it’s a mutual agreement to start investigating the market and put you at the forefront as a decision-maker. You have your own professional purchase advisor and dedicated team of brokers and experts handling the whole purchasing sequence for you, from start-to-finish.

We represent your interest and are employed by you, our principal, and not by one partner nor a specific shipyard. This ensures you receive a professional advisory and unbiased consultancy service at all times.

This reflects our pricing, as you are per effect not paying for our services, but merely honouring a commitment and enabling our team to work with a focused mindset and with your interest as a priority. 

As with any agency, broker or dealership, Yacht-Match makes its sales profit from the sale of the yacht to you, by commission or by brokering fee from our partner that we represent (ship yard or dealership).

The consultancy commitment fee varies from 1-2.5 % of the expected purchasing price of the yacht. This is then later deducted from the purchasing price* of the yacht when you complete the deal and are handed over the keys to your new yacht and lifestyle investment. 

*Deducted/handed back to the principal, as part of purchase agreement. Thus, adhering to the law of “serving of two masters”.

Whether you are new to charter ownership or a seasoned investor, we offer a soundboard and advise during your initial prospecting to make sense of the information you have acquired so far

For FREE - You can either:

  1. Match Your Offer - receive a second opinion: Send us an offer you like to understand, compare and get match;
  2. Charter Ownership Programmes – enhanced by Yacht-Match: let us know what you like and choose a ready made program or offer we are advertising and receive an indicative offer.

If you like to appoint us as your personal broker and receive a tailored ownership model - then you can appoint us to do all the work for you as your consultancy agency. 

For a Commitment Fee that is paid back to you:

  1. Investigate & Optimise – unlock the market:
    For a truly tailored solution, one where we offer our full consultancy service, you will receive your personal yacht advisor & purchaser. Yacht-Match will investigate all the possibilities and ensure you receive benchmarked proposals where you will know for sure that you will make an optimal choice and investment.
  • Exact best fit: 100% what you want & need  
  • Unmatched SolutionsOutperforming mainstream charter ownership.  
  • Your Boat – Your Preferences: Not a program nor scheme, but a solution for you  
  • Optimal Investment: Become informed & empowered with freedom of choice 

The commitment fee is paid at the start to initiate the assignment and signals the commitment from both you and our assigned consultant.

We make a plan for when you’d like to start sailing, and during the assignment period of anything from 2-12 months, you will be presented advisory reports and updates for the various review points along the way.

As the Client’s representative, Yacht-Match will be involved in the whole purchase process, plus support the Client in the charter management period to make sure the Client will have the best experience possible.

Your can cancel our assignment when you want or put in hold for up to 12 months. You are not forced to commit to buying a charter program nor a boat at any time. You will receive a full pay back guaranteed within 6 months if you buy a boat with Yacht-Match during the consultancy period.

 

Charter Management Programs & Investment

With the expected increase of the leasing rates, it will be increasingly challenging to calculate a profitable guaranteed charter income, which will result in lower fixed income and cuts in costs such as maintenance and service.

In the contracts with the international charter organisations, it’s clearly stated that they have the right to move the boat connected to the fixed program. They have because the vessel is until the delivery after the program, not yours but part of the organisation.

If you have a charter contract established with the aid of Yacht-Match, you are the full owner of your yacht, and you decide what will happen with your boat.

Most contracts with international charter organisations are fixed for 5-7 years. You can’t change the agreement or move the boat unless you pay the penalty.

 

However, all charter contracts produced with Yacht-Match guidance give you the freedom to change or move your yacht whenever you want—taking into account the usual notice periods of one or two years.

Thie answer to this question is complicated.

If you have invested in a fixed program with a downpayment of 50% or less, the charter organisation is responsible for the financing of the other half. Because they purchase the boat direct from the yard the charter organisations only have to lend money over their purchase price, which is much lower than the consumer price, minus your down payment. The leasing rates are therefore lower and the risk that they cannot settle the payments is smaller too. If the charter organisation can’t pay the leasing instalments, they will be on the first of bankruptcy.

 

When you own a boat with part finance, you are responsible for the settlement of the leasing fees if the charter operator can’t provide enough funds because of lacking charter income. But at least you have a clear picture who owns what and is responsible for what.

An investment is an asset or acquired with the goal of generating income or appreciation. A yacht can be an investment if you appreciate the capability of a yacht to offer you unforgettable holiday experiences.

Yacht-Match can offer investments in the charter market with a specific business plan and charter management for investment seeker.

We can show proof of concept with yachts in our partner fleets that are delivering 8-11% NET ROI per year.

The market reports and data during 2018/19 from the sellers in the brokerage community for pre-owned yachts have recorded sales prices close to 20-21% on the original purchasing price of the sold catamarans. The asking prices for the catamarans the last four years have averaged about 25% less of the original purchasing price for models as old as 2012/13.

Stock market VS. investing in the yacht charter market

There are similarities, but it’s never as fun to invest in stocks as being a yacht charter owner. Investing in a yacht is not abstract, and you can be more involved in the certainty of the outcome.

Even during this year's downturn in charter income for a majority of charter boat owners and charter business, you make up for that with a more than average year that we expect to come next year. Furthermore, you can prolong your investment and thereby receive a more linear ROI (compensating for a season with less income). 

Yacht-Match offers a leveraged investment with tailored charter management. In essence, the flexibility and control of your asset ensure that we can be proactive in advising you to make business decisions where and when it's most profitable for you. An example of this would be selling your yacht at the right moment, and another example would be to move the vessel to profit from a higher demand destination and operator.

Shipyard & Builders

There is not one best way or boat model when it comes to running charter business and choosing what boat or destination. The market needs and demands changes, and so does the projections, the outcome and also the programmes -and offers from the established charter businesses and boat clubs.

Boatbuilders and shipyards like the Bali Catamarans, Leopard Catamarans, and the new Sun Loft 47 by Jeanneau, are examples of purposely built yachts for the charter market. The more standard catamarans and yachts built by the bigger production shipyards, with maximum cabins per feet layout option are also considered typical charter boats. 

There are a lot of uncertainties about how we can start-up the economy again. Within the boating business we have a fragmentated production process, with many suppliers both from the EU and the rest of the world, mainly China. At the moment the stocks are enough to produce boats until the summer, but what will happen after the summer recess? Some main suppliers such as Harken are based in the severely hit Northern Italy, when will they be able to start manufacturing again? And with the modern in-time production methods the main shipyards have made their manufacturing vulnerable for to-late deliveries of parts.

What will all this implicate for the pricing of the boats? We are not sure yet. It’s not an issue of the supply, but also from the demand. How many clients are willing to invest in new yachts after the summer? If you want to share your opinion, leave a comment to this FAQ topic.

Although most shipyards were sold-out until the European summer just before the outbreak, we expect that some deals will be cancelled in the next weeks and months. We will keep you informed about opportunities as they arise.

In these unprecedented times we can only guess what opportunities may arise.

In earlier down-turns we experienced an increase in rejected production slots because, dealers or boat buyers cancelled their orders.

Yacht-Match Is in the middle of the boating business and will be amongst the first to hear if opportunities arise, at any brand. We will communicate about purchase occasions with our partners and consultancy clients first and in second instance with you as the reader of this FAQ page.

Keep a close eye on this space!

Opportunities can always be made. But what is a real opportunity? We think an opportunity is an occasion which matches with your preferences, your demands, your expectations. It shouldn’t be the other way around.

It’s not an opportunity if the price is discounted, if you don’t like the boat or the version, if it doesn’t fit your ideas or dreams, if the bargain doesn’t fit your lifestyle or expectations. Too many times people have been tricked into buying a ‘special’ deal, to find out that the deal became expensive or in other ways disappointing afterwards.

Yacht-Match, being the only neutral advisor in the boating business, has the goal to help you avoiding these kind of ownership disappointments, with  personal advice.

Leave your comments to share your thoughts on this topic.

Organisers have to cancel or postpone their boat shows and events according to the restrictions imposed by the Governments. We will keep you updated about boat shows; organised in real life or virtual.

 

Shipyards and dealers offer virtual boat shows enabling the audience to get an impression of the models through walk through videos, 360 degree presentations and sometimes personal advise via video conferencing. Some dealers have chosen to organise online boat shows for a restricted period. Shipyardss organise ongoing virtual boat shows such as: the Dufour Marina and Fountain Pajot’s virtual marina,

 

All real live boat shows and events have been cancelled until the summer. Hopefully the autumn events can be organised all be it with an adjusted concept like the Genoa boat show. The Genoa boat show will be postponed till 1-6 October and will have another set up with more spaceand entrance points for the visitors and compliant to the potential regulations.

Financing & Leasing

Although you might expect otherwise, financing is still available for boating. European leasing companies still offer finance to European citizens who can proof a healthy personal financial situation. Only the Croatian leasing companies have restricted their services. Until further notice they won’t base their approval on business case behind the charter boat, but only approve leasing if one can offer a bank guarantee or other proof of security

Because of the expected economic down turn the interest rate for leasing might increase up to 1,5 percentage points, It is anticipated that the leasing market might decrease with 30-40%. Leasing companies will be more careful who the lend money and will be more critical about the business plans behind charter boats.

 

We expect boat buyers who want to use leasing for part finance will need professional support more then ever to convince the leasing companies to provide money for the purchase of the yacht.

We are in regular contact with the main leasing companies who deliver finance to the boating industry and will report about our findings.

We encourage you to leave your comments on this page or in an email to us.

In every situation financial opportunities arise. 

Keep an eye on this space!

Buying a Boat

Yes, you will receive different proposals that we create to match your preferences. These offers will highlight how they differ from the generic market offers and illustrate projected savings, extra income, and investment advice.

As described in the scope of services above, our assignment is to create a comprehensive overview of the possibilities in the market of yacht charter ownership. You will become an informed and empowered decision-maker with freedom of choice, regardless if you are new to charter ownership or an experienced yacht charter owner. 

With your preferences in mind, and not with a traditional sales representative’s pitch and interest, the Consultancy assignment is aimed at achieving harmony between the preferences and your demands, as well as our ability to outperform any standard charter management program offer you will receive from investigating the market yourself and being in contact with your local dealer or charter management agent. 

If you are not in need of the full range of services that we offer and only want the top investment opportunities and exclusive deals that we generate each week from the international yacht market, we suggest that you become a VIP subscriber to get access to these non-public special deals and incentives. Our Consultancy clients and our VIP-subscribers are given priority to all the of the best deals and special yacht offers that we acquire from our partner network, the shipyard and our dealership partners. These are not available to the public market.

Check out this page ergularly.

More information will come soon.

If you want to contribute, write your comments on this page or send us an email.

The market of pre-owned boats was under pressure before the current situation. The younger yachts of 3-7 years old where practically not available anymore. Vessels of this age could still be deployed in charter, charter an older yacht is not feasible unless it’s a special brand or larger motor or sailing  yacht which has been refurbished extensively.

Given the circumstances we expect that at the end of this season more yachts then usual will be offered on the second hand markets.

Buying a boat for charter should first and foremost be based on your preferences and financial possibilities.

Safe investments are those which are made with funds you can do without. Investing in a charter yacht with partial finance should only be done if you can guarantee the monthly instalments if the charter income is not what you expected.

A safer or better buy can be determined by analysing your preferences, financial abilities, charter market requirements and connecting the outcome with the best matching operator.

There is a distinctive difference if a dealer or shipyard becomes insolvent.

Shipyards have appointed dealers to communicate with you, the buyer. You make your down payments to the dealer, who on his turn pay the yard. As soon as you did your first downpayment, your dealer will reserve a slot at the yard under your name and address. You can ask your dealer for proof from the yard what production slot or hull number is reserved for you. If the dealer would go bankrupt during the ordering process, you can directly contact the yard and agree upon the payment structure with them.

In the recent past, we have experienced that even major shipyards like Bavaria in Germany were able to fail. If a shipyard goes bust, the administrator wants to create as much turnover as possible to be able to pay the creditors, and for this, he will let the yard produce the ordered boats. As far as we know, all ordered yachts have been delivered by Bavaria to their owners.

If the shipyard goes bankrupt, you are as a buyer most likely to be less affected than in case your dealer goes bankrupt and he hasn’t paid the yard yet.

Share your experiences with us in your comments or email to us.

Deals occur the whole year-round. The current situation will create opportunities which we will communicate with our partners and consultancy clients.

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Charter Operators & Destinations

At this moment we don’t know which sailing destinations will be hit hardest.

Although the Caribbean destinations have a better chance to be less affected by the economic crisis than the companies in the European destinations because when the pandemic spread the season was almost over, and we hope that when the new season starts in December, some of the travel restrictions will be lifted. The European charter market hasn’t started yet and already faced the first blow with postponements and cancellations.

We will inform you about the latest charter market developments on this page.

If the operator who has the responsibility for your boat goes bankrupt, it depends on your contract how this will affect your ownership.

The international charter operations offer similar programs, but you need to check the contracts connected to the program you would like to choose. And review the general terms, because you are connected with only one operator for five to seven years.

If you have invested in a charter yacht with advice from Yacht-Match, you don’t have much to fear. You will be the owner of the vessel, and you will be free to place your asset wherever and whenever you want. Your operator is only the service supplier; there are no other business strings attached.

28/4: To get the most out of half a charter season companies start offering day charter next to weekly charter too. Your agent has an increasing choice in flexible charter dates and can find you a matching charter time, whether it's just a day, several days or weeks via the professional booking platforms.

 

Operators are adjusting their business according to the developments in this crisis. Most European companies were ready for the new 2020 charter season when they had to postpone the start of their operations until an unknown moment in the future, to ensure the safety of their co-workers and suppliers and of-course that of their charter guests.

 

Many companies work with a seasonal workforce who they had to send back home. The staff had to deal with ad-hoc restrictions imposed by the authorities and with charter guests who had made a down payment but now can’t enjoy their charter holiday.

All charter operators we are in contact with, offer the clients the possibility to change the booking to a later date in the season or to convert their booking in a voucher to be used within a year.

Being the spider in the web of the charter management market, we have a finger at the economic pulse. We will be most probably the first to recognize threats and opportunities which we will share with our partners and consultancy clients.

 

Get in contact with us to discuss the advantages of being a B2B partner or consultancy client.

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Coronavirus and the yacht charter market
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