Several years ago only a select few could afford to buy a sea-going yacht, be it a motor or a sailing one. Today, more and more people are not only buying them but also making money on them. Year after year, the number of yacht charter companies in Croatia and the Caribbean is growing and they can count on a reliable income all year round.
Croatia is one of the best regions for yacht charter. This is due to both the favorable climate and the relaxed rules regarding yacht registration. Equally popular are the Caribbean. A large number of Poles run their businesses in both these places.
There are several ways to do it. The easiest one is to lease a boat. It is worth to know that not every company that provides this kind of service requires its own contribution. The boat can be leased on an individual basis, but it is also possible to deduct VAT from the cost of the boat and all the current fees associated with owning a yacht can be included in your business costs.
First of all, the bank will assess your creditworthiness and the potential risk associated with this type of investment. Before submitting the application it is worth to estimate the profitability of the purchase and make sure that the current repayments will not overburden the budget. It will also be necessary to calculate the maintenance costs of the chosen vessel and check how (apart from charters) you will be able to make money on the yacht. One of the options available is advertising space. The most profitable lease is the one for 4-5 years. Then you can count on the highest earnings. After that time you should consider returning the yacht to the leasing company and buying a new one. This is how a large part of Croatian charter companies attract lovers of new luxury boats. Yacht leasing is a service that can be found in the offer of many Polish banks.
The next step is to sign the contract with the charter company. The next step is to sign a contract with a charter company, but before you do that, it is advisable to carry out a thorough reconnaissance of the market and have a professional advisor help you choose a boat that will suit your individual needs and possibilities. The most popular yachts in Croatia are about 13-15 meters long and can accommodate 8-12 people.
What are the cost examples for this type of boat? A Bavaria S32 from Bavaria Yachtbau costs around 540 000 PLN. The price of a new boat is from 1600 to 3150 euro for a 7-day cruise from Split to Dubrovnik. During 7 months of the season a yacht can earn about 60 000 euro in the first year. It is important to realize here that this is not a significant return on investment. This is due to the cost of maintaining the boat – registration, insurance, maintenance and cleaning. Annually it can cost even 10% of its price. The management of the boat, on the other hand, is about 20-30% of the profit made. To this should be added the cost of regular maintenance, inspections and current repairs.
A yacht has to be well taken care of, in order to earn money for itself. Then it can serve even for 20 years. However, you should be aware that the profits will gradually decrease, which is connected with the fact that the value of a boat decreases with time. Another very important issue is that the bigger the yacht, the higher the charter costs. A 7-day cruise on a 16-meter Elan 50 Impression costs around 5300-5700 euros during the summer.
Equally profitable investment can be chartering catamarans. Unfortunately, boats of this type are much more expensive, and all kinds of formalities related to them are best completed abroad.
“Even the owner of one yacht can earn on renting a boat. However, to make a living from the charter business,…
Published by News of Business Tuesday, 28 August 2018
Featured Image: Freepik
