(I posted this on the MacGregor Owners forum by mistake - I wanted it on this Forum) I read a lot of ads in magazines about the benefits of buying a boat and putting it into a charter company to charter-out and maintain. I suspect that there is a lot more to the whole program than is eluded to in the ads. (i.e. "the catch"). Beyond the obvious issues of having other people put wear and tear on your new boat, what are the due dilligence issues related to this type of investment? Can you actually pay-off a new boat in 5-6 years this way? There must be more to this or everybody (land locked sailors like me) would own a boat in the Keys (or San Juans, Bahamas, or Carrib, etc.) and use it 2 or 3 times a year while having charter income pay for everything.
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Suggestion
Before buying I suggest you look at a few vessels for sale that just came out of charter especially with the firm you are considering. Lots of variation in maintainence. I did the math a few years ago and it didn't work for me
Before buying I suggest you look at a few vessels for sale that just came out of charter especially with the firm you are considering. Lots of variation in maintainence. I did the math a few years ago and it didn't work for me
Having had two....
.....boats in charter, I wouldn't do it again. You'd have to do your maths about paying the boat off by having it in charter. Yes, it used to be able to be done here in Australia, but there are now new tax laws that may not make it possible. I don't know what the tax breaks are in the U.S. but I would suggest that's one of the reasons that people put their new boats into charter. And of course, Daryl suggests you look at boats when they come out of charter which is a very good idea. You might change your mind when you see what you get at the end. Cheers Bing
.....boats in charter, I wouldn't do it again. You'd have to do your maths about paying the boat off by having it in charter. Yes, it used to be able to be done here in Australia, but there are now new tax laws that may not make it possible. I don't know what the tax breaks are in the U.S. but I would suggest that's one of the reasons that people put their new boats into charter. And of course, Daryl suggests you look at boats when they come out of charter which is a very good idea. You might change your mind when you see what you get at the end. Cheers Bing
Investment?
Not in MY book. Think about it...you buy a brand new boat and put it into charter. Everyone and their brother (experienced or not) sails the piss out of it over a period of three years (average length of time charter companies will use a boat) and, in the end, you have a three-year-old boat that needs a total re-fit. I know three people who have done this and they'd never do it again. The charter companies do not perform proper preventive maintenance. Subsequently, things break on the customer. When the boat is turned in at the end of a charter they turn it around in a matter of a couple of hours for the next customer and the broken item is either half-assed fixed or band-aided just to make due. The other downside is if you can't afford to purchase a popular boat it may sit and deteriorate while YOU make the payments. A boat is not an investment to begin with. Getting into chartering is like flushing money down the toilet. Think about it...if it was such a great deal, wouldn't EVERY sailor do it? Just my two-cents. Cheers, Bob
Not in MY book. Think about it...you buy a brand new boat and put it into charter. Everyone and their brother (experienced or not) sails the piss out of it over a period of three years (average length of time charter companies will use a boat) and, in the end, you have a three-year-old boat that needs a total re-fit. I know three people who have done this and they'd never do it again. The charter companies do not perform proper preventive maintenance. Subsequently, things break on the customer. When the boat is turned in at the end of a charter they turn it around in a matter of a couple of hours for the next customer and the broken item is either half-assed fixed or band-aided just to make due. The other downside is if you can't afford to purchase a popular boat it may sit and deteriorate while YOU make the payments. A boat is not an investment to begin with. Getting into chartering is like flushing money down the toilet. Think about it...if it was such a great deal, wouldn't EVERY sailor do it? Just my two-cents. Cheers, Bob
My .02
The only advantage that I can see is that you would have a charter boat available pretty much anytime you wanted it. My experince is counter to Bob's, I find that the management co. nickels and dimes you to death with maintenance items.
The only advantage that I can see is that you would have a charter boat available pretty much anytime you wanted it. My experince is counter to Bob's, I find that the management co. nickels and dimes you to death with maintenance items.
It's true that they nickel
But that doesn't necessarily equate to a quality repair; nor does it mean that the repair will be made within a reasonable amount of time. Too many horror stories from people I know who chartered or owned a charter. Even the best charter companies slack off on preventive maintenance. Charter companies don't make money holding up a boat for a day or two of nickel
But that doesn't necessarily equate to a quality repair; nor does it mean that the repair will be made within a reasonable amount of time. Too many horror stories from people I know who chartered or owned a charter. Even the best charter companies slack off on preventive maintenance. Charter companies don't make money holding up a boat for a day or two of nickel
Not Me!!
Several years ago, based on the ads and the feel good information that the companies that are pushing charter/purchases, I might have thought about it. Keep in mind that people that are trying to sell you something never tell you about the down side. Then I chartered one in the BVI's, and put the thought right out of my mind. I rented a 2year old 46 foot Beneteau. The hour meter was showing 3600hrs. There were nicks and dings all over the cockpit with pieces of gel coat knocked out that were not repaired. Prior to leaving the dock, I found that a foot pump was not working in the galley, and called it to the companys attention. They sent a guy down to fix it. It seems as though the coat hanger, not kidding here, originally used to secure the pump where it had been broken before had come loose. It was repared with a fresh piece of coat hanger. While in dock, I as watching the help ferry other boats around in the marina. They were driving them like bumper cars slamming them into the concrete dock with no regard. I noticed that all of the slips had wood bumper rails affixed to the docks, the majority of them were splintered where they had been hit. I've got a feeling that the boats get better treatment from the renters than they do the charter company employees. Not wanting to get involved in any arguments about damage when I brought the boat back,I had the attendant list the damages on the back of the lease and took numerous photographs of the boat prior to taking possession of it. Would I get involved with one of these ownerships? NOPE!! Like Bob said about the 3000 mile away thing and other people using his boat, I worry enough about my own boat and it's only 80 miles away with nobody using it but me.
Several years ago, based on the ads and the feel good information that the companies that are pushing charter/purchases, I might have thought about it. Keep in mind that people that are trying to sell you something never tell you about the down side. Then I chartered one in the BVI's, and put the thought right out of my mind. I rented a 2year old 46 foot Beneteau. The hour meter was showing 3600hrs. There were nicks and dings all over the cockpit with pieces of gel coat knocked out that were not repaired. Prior to leaving the dock, I found that a foot pump was not working in the galley, and called it to the companys attention. They sent a guy down to fix it. It seems as though the coat hanger, not kidding here, originally used to secure the pump where it had been broken before had come loose. It was repared with a fresh piece of coat hanger. While in dock, I as watching the help ferry other boats around in the marina. They were driving them like bumper cars slamming them into the concrete dock with no regard. I noticed that all of the slips had wood bumper rails affixed to the docks, the majority of them were splintered where they had been hit. I've got a feeling that the boats get better treatment from the renters than they do the charter company employees. Not wanting to get involved in any arguments about damage when I brought the boat back,I had the attendant list the damages on the back of the lease and took numerous photographs of the boat prior to taking possession of it. Would I get involved with one of these ownerships? NOPE!! Like Bob said about the 3000 mile away thing and other people using his boat, I worry enough about my own boat and it's only 80 miles away with nobody using it but me.
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