If you’re about to buy a yacht in charter, it’s essential that you read this article. A lot of decision-making is involved in it and it’s best that you have the essential factors settled from the get-go.
Opting to buy a yacht in charter is not simple. It is a serious investment that needs time and serious research effort. The process is long and you need to brief yourself and this article will help you do that.
When you’re to buy a yacht in charter you need to consider at least six essential factors. The rest of your decision-making process will go easy when these six factors are already settled and clear on your end.
If you’ve already decided to buy a yacht in charter, congratulations! Your life is about to change and you know it! This article will help you and you should fully take note of it,
If you have yet to decide if you want to buy a yacht in charter, we fully understand. Buying a yacht in charter is a big decision and you should feel free to take up all the time that you need to intelligently reflect and decide. This article will clear many important factors for you. After reading this, you can be sure that you’d be ten steps closer to deciding whether you want to buy a yacht in charter or not.
6 Essential Factors That You Need to Consider When Buying Your Own Yacht in Charter
The first thing that you truly need to do before proceeding to buy your own yacht in charter is to ask yourself: is this true to me? Does sailing fit in my overall lifestyle? Will it improve the quality of my life?
You need to be honest in answering the following questions. A yacht investment is not as simple as buying a car. It will greatly affect your overall lifestyle in ways you didn’t even think possible. It can even affect your close relationships. Is this something that you’re already aware of? Is it a decision that you can make on your own or something that you need to discuss with your family? Are there other financial plans that you need to prioritize?
Owning a yacht is quite a dream as it will easily allow you to explore parts of the world with your family and friends by simply sailing. However, it requires serious maintenance. And it is anything but cheap. Your charter income will greatly help you in paying for the yacht but do know that expenses can pile up and multiply if you have no control of your financial situation.
If you can afford it and you truly enjoy sailing while exploring the world, you should buy a yacht in charter. If you can’t afford it and sailing does not truly play a central role in your life, you should think twice.
You need a serious amount of money when buying a yacht in charter. You will be required to give a downpayment of at least 20% of the price of the yacht and you need to be ready for that. This is beside the initial costs and other running costs. It will take you five to six years to finish payment so you need to be fully committed to making sure that you can duly answer all your current and future obligations.
Owning a yacht through a charter will be less expensive though because you will have continuous income. Your costs will also be reduced. This is not exactly the same if you’d opt for traditional ownership.
PRO TIP: When looking for a charter program, consider your risk tolerance and tax exposure. Take note of numerous tax benefits that will be open to you. You should also not opt for one that lasts longer than 12 years. Never believe a salesperson that is open to a 20-year mortgage because you will have more issues and troubles by the end of the charter.
Charter Management Companies
You need to research your charter operator options. You could choose between going for a big operator or a small one.
If you don’t want to lift a finger at all and want to be sure of big income, you should opt for a big charter operator.
But, if you want to be truly involved in the management of your yacht while sailing a lot, you should opt for a small charter operator.
Type of Yacht
When choosing the kind of yacht for you, you need to answer this question: do you sail?
Who will be sailing your yacht? If you will be sailing your yacht, are you an expert in sailing?
If you’re an expert in sailing and you’re after adventure, you should opt for a monohull.
If you’re not an expert in sailing and you just want to cruise leisurely, you should opt for a catamaran. Catamarans remain popular worldwide because they are very easy to manage and maneuver.
If you won’t be doing the sailing, you should opt for a monohull if you want to tend to expert sailors during the charter contract. But if you want to earn more, then you might want to opt for a catamaran as they are more in demand.
Where do you want to place your yacht? This preference should be clear even before purchasing one. If you want to spend less, you should opt for a base that is easier to access from your home. You should also consider the demand in the area. Placing your yacht in a base where it is not that popular will lead to lesser bookings. Hence, you should choose wisely. If you want to place your yacht in Bali, you should check out Isabella Yachts Phuket.
You will need to make a decision after the end of a charter contract. You will need to choose one of the following scenarios upon your charter contract’s expiration:
- Your charter operator can sell the yacht and you will get to buy a new one
- You can sell the yacht and use the earnings to pay your debt
- Get your yacht, sail away, and take it home.
- You opt for another charter program with a different company.