Charter Ownership

HKK EXHIBITION 05BALI_06If you have plans of buying a catamaran to go cruising in say 5 years but just can’t wait that long to get out on the water and start learning the ropes and living the cruising life, then you should really consider a charter investment. Not only can you enjoy cruising in an idyllic location within the safety-net of a fully managed charter fleet, but charter investments also offer an economical path towards accelerated boat ownership.

How? Well, for example, the Whitsundays for many years has been Australia’s favorite destination to ‘bareboat’ charter sailing yachts and catamarans, with the magnificent islands, anchorages, beaches and resorts that this world heritage area has to offer. As a result, the destination is a major draw card for charterers from Australia and around the world, who pay good money for the privilege of chartering someone else’s sailing boat. This revenue is collected by charter companies and distributed with approximately one third spent on sales and marketing, one third for the cost of turnaround and maintenance and one third returned to the owner as gross profit before interest payments and taxes.

The investor may use the boat privately provided they document their time and adjust their tax return accordingly. Typically two or three weeks annually are allowed for in the charter agreement plus unlimited standby use when the boat is not being chartered.

Seawind have been a favorite choice of charter fleets over the years, due to their robust cruising designs built for Australian conditions, which also happen to make excellent charter vessels – this is an important difference to other brands, as a Seawind catamaran will continue to be a great cruising boat after its initial charter life and historically shows strong resale values as a result, as opposed to a ‘vacation style’ charter boat with the typical four cabins and four bathrooms. These boats will make returns in the short term, but they are simply not practical for cruising and therefore offers little appeal to a long term owner or future used boat buyers.

Seawind remain the dominant brand for charter catamarans in the Whitsundays with more Seawind bareboat charter vessels than any other, while sailing catamarans in general are rapidly becoming the most popular type of charter vessel in the world.

Finance for commercial bareboat charter is available from a variety of lenders typically for 50% to 70% of the total capital value. A fully equipped charter Seawind 1160 with 50% finance after interest payments would return around $21,000 annually.

There are also opportunities for the entire range of the Seawind catamarans, including the new Seawind 1160 Lite, the ever popular Seawind 1160 Deluxe and the luxurious Seawind 1260, providing various sizes of boats and levels of commitment for investors to consider for their personal circumstances and cruising goals.

In summary, a bareboat charter investment is an excellent way of having your own fully maintained boat so you may enjoy your private sailing NOW – not in 5 years! And between now and when you plan to go cruising, charterers help to pay your way towards outright boat ownership and your future cruising life. Furthermore, you have a tangible asset providing a positive return in these uncertain financial times.

To learn more about charter investments or for help in producing a customised charter investment plan contact Shane Grover on +84 38733620 (Ext 207) or