Ahoy Captains,
I would consider 5 Issues.
Income, Insurance, the declining Quality of the Phase Outs, Irma Boats and Covid Boats.
Income – A New Yacht? I strongly agree with Capt. George.
None of the Builders or New Yacht companies want to sell or charter anything under $500K. Their main source of profits is the Sales of New Yachts, which as Capt. George has noted, are very challenging due to Interest Rates.
Caveat Emptor with buying a New Yacht and having to pay the additional interest and principal that the present New Yacht charter companies no longer cover, and recognizing the Yacht will probably resell around 60% after it ‘retires’ in 5/6 Years.
This business, 40 Years ago, was predicted on tax breaks, using the boat as collateral to 90%, and boats selling for $100K. All Gone.
Your 'Profit' is your Owner Time.
There are very few 2nd Level / Used Yacht Charter companies since Cat 5 Irma and Covid.
http://www.traveltalkonline.com/ubb...rter-company-closed-shop.html#Post264468Insurance - It is very challenging to find Insurance for the ITZ for Hurricane Season.
That is the Caribbean Sea for June 1 to Nov 30.
Do You want to buy a $500K Used Yacht to have it sit in Grenada for 6 Months of the Year, or, pay $$$/Night for the T dock in Florida for the summer months, while You personally, that is You on board 24/7, play hide and seek with the weather watches and warnings.
http://www.traveltalkonline.com/ubbthreads.php/topics/306581/1.html You would be Very Lucky to find a charter company in the Caribbean, like The Captains Compass, that can offer Insurance including Hurricanes and all other Named Storms, 365 Days of the Year, with shelter 1 Hour away in the Water in a nearby Hurricane Hole. And, offer Yachts the Full Coverage for Bareboat and Crewed commercial chartering, 365 Days of the Year.
Phase Outs – Really Caveat Emptor
https://www.youtube.com/watch?v=3vwf2lC1uKA https://www.youtube.com/watch?v=bPpLRc5Ox2U etc.
Cat 5 Irma Yachts –
Cat 5 Irma damaged many Yachts.
Some of them have been repaired but the quality, under a thin coat of gelcoat, is questionable.
Most professional Marine Surveyors will not Survey a Yacht damaged by Cat 5 Irma due to the liability for the unknown quality of the repairs.
Without a Survey the Yacht can not be Insured or Chartered.
Covid Yachts –
Due to the world wide shutdown of Tourism during the Covid Pandemic there are many Yachts, especially those built since 2017, that have only 1/2 the normal 'wear and tear'. Especially charter yachts that were purchased with Insurance buyouts after Irma and now retiring after their 5 Year contracts have expired.
I hate hyperbole, but the fact is that these Covid Yachts with very low engine hours are ‘Once in a Lifetime’ opportunities, I Hope!
I Need More Quality Cats for Chartering !
Fair Winds, Brent
thecaptainscompass.com Yacht Charters and Management
heatseekerinternational.com 5% Comm and Sales-Tax-Free Yacht Brokerage
