Importing a Boat to Australia

[Dragon Lady]

Yeah, those types of boats have been around for a while now. None of them are cheap for their location and I think they may be used as an argument against the cost and hassle of bringing a boat in.
Interestingly the only people, who have told me I'm doing the wrong thing, are local brokers trying to sell me a boat here. Still can't blame them for trying.
It looks like importing a boat is going to get even cheaper now with the AUD going even higher today.

[Reefer.]

Well I just read the whole thread again from the beginning.

Since 2006 I have gone back to my old job, bought two houses & sold one and built another, had a daughter, watched the share market tank and watched the housing market lose its puff.

The most fabulous and exciting thing though, is watching the American Federal Reserve print more and more and more trillions of soon to be very worthless USD.

This in turn has allowed me to watch in amazement as the AUD gains spending power year after year.


Ten years ago I remember seeing a fellow from the UK heading west to Cocos Is in a very nice 70' yacht that was originally registered in Aus. I think you would get less than 35p for the AUD back then. Now its more like 65p. Importing back then, for us, was almost out of the question.

Was 54 Euros Now 74 Euros
Was 0.50USD Now 1.03USD
Even the Kiwi dollar can't keep up - hey Bro.

Dragon Lady, your timing is good!
Touche, our time has come.

[savoir]

The Singapore and Canadian dollars have risen in similar fashion. It is more the USD on a one way journey down the toilet than the others being fabulous.

Watch for a downwards blip when Congress announces the new debt ceiling. I predict 16T. Let's see. 3 - 4 weeks to go.

Anyone looking at buying a US boat with something other than US dollars should wait until after that issue is resolved.

[savoir]

Originally Posted by Reefer.

Well I just read the whole thread again from the beginning.

Since 2006 I have gone back to my old job, bought two houses & sold one and built another, had a daughter, watched the share market tank and watched the housing market lose its puff.

The most fabulous and exciting thing though, is watching the American Federal Reserve print more and more and more trillions of soon to be very worthless USD.

This in turn has allowed me to watch in amazement as the AUD gains spending power year after year.


Ten years ago I remember seeing a fellow from the UK heading west to Cocos Is in a very nice 70' yacht that was originally registered in Aus. I think you would get less than 35p for the AUD back then. Now its more like 65p. Importing back then, for us, was almost out of the question.

Was 54 Euros Now 74 Euros
Was 0.50USD Now 1.03USD
Even the Kiwi dollar can't keep up - hey Bro.

Dragon Lady, your timing is good!
Touche, our time has come.

Quite correct. In 1998 1 AUD = 0.35 - 0.38 GBP

The 0.5 USD bit was earlier. Sometime in the 1980's ? I remember it was 0.6 USD in 1999.

[hoppy]

Originally Posted by savoir

Quite correct. In 1998 1 AUD = 0.35 - 0.38 GBP

The 0.5 USD bit was earlier. Sometime in the 1980's ? I remember it was 0.6 USD in 1999.

That's when I moved over to Europe (UK/Ireland/Sweden). 13 years later and feeling like I am getting poorer and poorer and can't afford to move home. On the plus side the rise of the AUD$ made buying my boat psychologically much easier. It felt more sane buying a $100k boat rather than a $180k (Still convert some prices even though I paid for it with money earned over here).

[Capt Phil]

I prefer to look forward and not back... I'm planning on the US $ to keep spiralling down relative to Aust, CND $ and hoping to cash in down the track. The economic fundamentals in Europe and the US are similar for slightly different reasons but I'm betting that both economies are going to experience dramatic negative movement relative to Aust and CDN currencies in the next 2-5 years. Hence some really great buying opportunities for offshore cash to pick up bargains in the US, in particular. Not sure how the Australian Customs is going to value a $100K boat bought for that amount in the US and worth $150K in the Australian market, however. I suspect the duty will be on the assessed landed value in Australia, not what I paid for it in the US. Thoughts? Capt Phil

[dennisail]

I hope it keeps plummeting too. I am now seriously considering taking next year off to go and buy a US boat.

The most fabulous and exciting thing though, is watching the American Federal Reserve print more and more and more trillions of soon to be very worthless USD.

Without trying to side track the discussion. This is not how 95% of the USD comes into existence. It is conjured up from thin air electronically as debt to a lender by commercial banks. This is legally done via the Fractional-reserve banking system. This banking system relies on exponential amounts of debt/money being created so that the interest can be paid. It was a collapse of this system which caused the crash in the first place when people could no longer get more loans (IE create money from nothing) to pay off their existing loans with interest. See here

YouTube - Money As Debt (1 of 5)

Sadly I am pretty sure Australia uses this same system, but at least our banks were not just giving loans on anyone so the system is able to continue for now.

With this system now collapsing as was 100% in inevitable, the US can only patch it up for so long. Who knows exactly what effect this will have. I am hoping an even further reduction of the value of the USD so I can get a better yacht

[Capt Phil]

The underlying strength of the Aust economy lies in its rich natural resource base, stable and talented workforce, conservative banking and finance system and relatively stable political environment. Look around the world and do a little comparison of other 'developed' countries and IMHO Australia looks pretty good near and long term to me. Dennisail is correct but in the US and European Common Market countries, lack of understanding of the financial systems by lawmakers (or they were bought off) and shrewd short term bank and financial institution profit maximization and shifting of risk resulted in the 'wild west' of finance for several years. It is now time to pay for this greedy largesse and unfortunately those responsible are sitting in tax free havens on our millions with no possibility of retribution. Bernie Madoff just got unlucky. Too many checks and balances in OZ for that to occur. My apologies for the rant... but Australia looks better and better... Capt Phil

[jpemb7]

When or if the US / Europe trigger another downturn, there will be no refuge in the Australian dollar. The resulting lower interest rates and commodity prices will cause everyone to drop the aussie like a hot brick. The current rise in the dollar is unsustainable. I'm going to buy a boat in Europe next year. I have already bought some Euros to hedge against a lower dollar. The Euro has strengthened since then but if it weakens further I will buy some more. If I was buying in the U.S i would do the same with the U.S dollar. I want to buy a good boat at a reasonable price. If I try to pick the top, I'll be still trying to pick the top when it's at the bottom. Been there, done that.

[ausaviator]

Economists in both Aus and the US are tipping $1.20 by Christmas. By the time it gets to $1.20 if it happens, there will be no decent boats left....

[Factor]

There will also be much less manufacturing industries left in Australia, and not just in the boat building industry. A high Aus dollar does little for the economy at home. And some industries, once lost, will never be regained.

Still, we are going on holidays for a few months overseas later this year so from a selfish viewpoint its okay.

[jpemb7]

Originally Posted by ausaviator

Economists in both Aus and the US are tipping $1.20 by Christmas. By the time it gets to $1.20 if it happens, there will be no decent boats left....

This assumes that Europe doesn't implode, U.S doesn't fall back into recession and China keeps growing strongly. I have a glass half empty feeling about this at the moment.

In any event, Factor is right, the strong aussie dollar is bad for Australian industry, another reason it is not sustainable.

Phew...I should be sailing....not much of an economist.

[boatman61]

Originally Posted by Dragon Lady

Not yet, had to change crew as the original skipper piked out.

Sigh.... thats the trouble with 'Professionals' these days.....

[Hotboy]

Originally Posted by Hotboy

Hi All,
thanks for all your interesting information. I too am currently exploring the possibility of a US purchase. As a newby I haven't had the opportunity to research all the threads and I suppose the latest info is the most relevant.

Just got home from a visit to the Custom Office here in 'Bundy', Queensland and met two very friendly and helpful ladies at Customs/Quarantine (they share the same office) just up from the Midtown marina.

So here is the basics:

• "Yachts are subject to a general duty rate of 5% based on the customs value or 'CV' (basically the price paid).
  
• And 10% G.S.T. calculated on 'CV' + 5% duty + international transpor
  
• "Privately imported yachts are generally valued using the transaction method of valuation when purchased new or secons hand overseas." It was explained to me that Au Customs calculate the Au dollar value at the day of purchase.
  
• An alternative method of valuation may be used if the yacht was constructed by owner,the yacht has been extensively modified since purchase, the purchaser and vendor are related parties and that relationship has influenced the purchase, or the original purchase price is to far removed in time. (ie time between purchase and import)
  
• Alternative valuations are carried out by a marine surveyor which is based on market value plus customs duty plus gst.
  
• Where the yacht is sailed to Australia overseas freight will be determined having regard to essential sailing costs incurred while the vessel is actually sailing the most commercially viable route. Where supported by sufficient evidence, essential sailing costs would also include- cost of maps,charts, pilot books etc; crew's hire/wages; victualling or food costs; bunkering or fuel/oil costs.

Of interest the Aust. Customs lady said the freight cost may be calculated from the last port of departure before arriving at Australia. I sought clarification and was told if Noumea was the last port then that would be where the freight is calculated from.

QUARANTINE Costs:

Pratique $330
plus
Detection costs for termites (dog) approx. $800 + travel and accomodation

If termites detected then fumigation with methyl bromide will be carried out by approved fumigators at a cost estimated to be over $5000for the average size boat ( whatever average means).

Note that the detector dog and fumigators are both in Brisbane so you will have to either clear in at Brisbane or pay for the people to come to Bundaberg.

Capt Phil I recently made some enquiries with Australian Customs and Quarantine. I hope The above info helps.

[VirtualVagabond]

Hotboy,
Thats a great, concise summary.
One question, is the termite dog used as standard procedure on every boat, or just if the initial quarantine inspection leaves questions in the inspector's mind?