Boat Financing

[redfox236]

Hello from the Alps,

I am very much a freshman to this whole topic but I must assure you that I am really serious about getting down to the mountains and directly into the caribbean sea.
I have a very basic question:
I am looking to buy a decent motor yacht of about 30 m length.
I've learned that a boat this size will cost approx. 1.5 Mio EUR.
How much of that amount would you have to bring in cash in order to receive the rest financed by a bank?
Is it true that about 10% of the boats new prize will have to be calculated for the annual maintenance costs?

Thanks for some help with the first steps.

[boatman61]

Originally Posted by redfox236

Hello from the Alps,

I am very much a freshman to this whole topic but I must assure you that I am really serious about getting down to the mountains and directly into the caribbean sea.
I have a very basic question:
I am looking to buy a decent motor yacht of about 30 m length.
I've learned that a boat this size will cost approx. 1.5 Mio EUR.
How much of that amount would you have to bring in cash in order to receive the rest financed by a bank?
Is it true that about 10% of the boats new prize will have to be calculated for the annual maintenance costs?

Thanks for some help with the first steps.

Ask your bank... they're the financiers... not us lot..

[osirissail]

A 30 meter motor yacht? That is something you would see hanging around Monaco or Cannes. A yacht that big would require permanent crew and a yearly budget would probably be in the half million to one million Euro/year range. Prices would range in the one to 5 million Euro range and higher if you want a new one.
- - If that is your real interest, you are on the wrong forum - a don't know if the "big boys" have a forum but they have some neat magazines like "Showboats", "Motor Yachting," and others.

[redfox236]

@osirissail:

The goal is not to show off with the boat but rather to have a boat that can generate a sufficient revenue in order to maintain itself (incl. the Skipper)
I just figured that a 30 m long boat could host up to 3 families (excl. crew) and by that generate a weekly "rental turnover" of around 30.000 USD.

Am I way off target?

[NeptunesTrident]

If you have to ask about financing a 30m yacht, you can't afford the thing. The purchase price you mention, 1.5 million, is not your primary concern. A motor yacht, 30 meters long, 7000 liters of fuel, generators, batteries? 10% is going to be a little shy. Not to mention the crew your going to need. Not even I would work for free on a boat like that. To much like work.

[rgscpat]

An operation on this scale requires professional advice from tax, legal, accounting, insurance, and nautical professionals. A business plan would be appropriate and may be required. Potential financiers may demand significant background information about your relevant business experience and the experience of your team members and could be expected to demand that you demonstrate how you will preserve the value of the asset (boat -- i.e. with professional crew following established maintenance and safety procedures).

Perhaps your neighbour, Ernesto Bertarelli, could give you more tips on how to lose money on yachts. I haven't seem him post on this forum, but maybe one of the moderators would know if maybe he is a "lurker"?

[osirissail]

It is fun to envision such an operation but from the real world aspect of chartering in the economic realm of the people who do and do not read/post on this forum - your choice of a 30 meter power yacht is most probably not going to be economically possible.
- - Currently, in the Caribbean you can charter a power yacht (power catamaran) in the 15 meter range for about US$9K per week. Three couples can easily fit on these boats, in fact, I have seen these boats with as many as 12 people on them. You would be competing with the mainstream price of about US$10K per week against your suggested price of US$30K. Not a viable operation.
- - In order to charge US$30K per week you would have to sell to a very restricted market of "rich and famous" people with a product that involves not only an extreme luxury yacht but a full crew staff including gourmet cooks, servers, and associated staff - probably looking at about 5 to 10 total crewmembers. Music rock stars and people in the Paris Hilton circles might be interested. You can find YouTube videos of them playing on board yachts in the French Riviera and Ibizia.
- - Here is an example photo.

[witzgall]

Unless you have a track record to back it up, I cannot imagine any legitimate bank financing such a charter operation that will take the boat immediately out of the country.

Chris

[SkiprJohn]

Good luck on finding the information you seek. I don't know anyone on this forum that would be able to give you an opinion based on experience with a 90 m vessel.
kind regards,

[Ryan H]

I'd make it a 90m two seater cigarette boat (although at that size we could call it a Churchill Cigar) and just charge the passenger 1 million$ per day. You could triple your investment in a week and still have the weekend off :P. All fun aside, If you're serious and that’s what you really want to do good luck to you. From my own wealth of experience with dealing with multi billion dollar yachting companies, if you're rich enough to rent it you're rich enough to buy it. Anyone that would fit into a shady in between area is dealing with a recession at the moment.
-Ryan

[Sabbatical II]

Don't worry about the nay sayers. If you send me over the 10% deposit, I'll see how I go arranging the rest. No problem.