Buying A Yacht

Buyers

Why Yachting?
Where to Go?
Why a yacht broker?
What should I look for in a yacht broker?
What is the process of buying a yacht?
What can I expect to spend in ownership?
Does chartering my yacht make sense?
What is going on with marine insurance?
What about the high cost of fuel?
Dockage?
What about Boat Shows?



Why Yachting?
We live in a day and age where the ability to freely navigate the wonderful oceans of the world is one of the true joys.  Having your own yacht to call a temporary home and roam the islands and ports of the modern world is a satisfying lifestyle that few lucky souls can choose.   So much to see… so little time.


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Where to Go? 
With the growing demand, many new marinas and destinations are being built thoughout the world, and especially:
Florida and the Florida Keys – Key West is always fun – try on the Dry Tortugas sometime.
The Bahamas - 800+ islands with some of the most beautiful, clear water and diving in the world.  Yacht friendly resorts are springing up all over.  Ditto for the Turks and Caicos Island group.
The Caribbean – not only the Windward and Leeward Islands but areas such as Dominican Republic, Puerto Rico & Jamaica are getting new yacht resorts.
East Coast US – South Carolina is getting to be the place to stay.  Better make reservations in New England –way in advance.
Cuba – forget it for now.  Most insurance companies won’t cover you there or in some Central American countries.  It’s going to be beautiful cruising and diving when it opens though.
Costa Rica – A few, really nice resorts are opening up in this gorgeous country.  It is also “hurricane free”.
Pacific Northwest – transporting is making the San Juans, British Columbia and the Inside passage to Alaska a reality for many smaller yachts. 

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Why a yacht broker?
Most boats under 40’ feet don’t require the services of a yacht broker, as the fact gathering and registration is typically fairly easy and straightforward.  For yachts above this landmark, many variables come into play; which make having a competent yacht broker almost a necessity.  Few yachts above 40’ are not represented by a broker, therefore you might as well protect your own interests by taking advantage of a broker’s expertise.  It’s kind of like going to court without a competent attorney, doing your own corporate taxes, or operating on yourself.   Most people who can afford yachts know from business experience that  experienced and trustworthy advice is the best way to stay ahead of the game – and yachting can be a very complex activity, full of pitfalls for the un-experienced.  Buying an expensive yacht without representation is for the very knowedgeable or very foolish.

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What should I look for in a yacht broker?

Conversely, good brokers look for clients who are sincere and are worthy of the huge time investment that it takes to sell a boat.  We believe in long-term relationships.

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What is the process of buying a yacht?

What can I expect to spend in ownership? 
Rule of thumb is 10-15% of value per year which includes dockage, insurance, crew, repairs, maintenance, some fuel and depreciation.  Naturally, this is a variable number depending on the yacht and usage.  Cutting corners on things such as maintenance, crew, repairs and such tend to bite much deeper in the long run.

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Does chartering my yacht make sense?
It makes sense if:
- You don’t mind other people using your boat.
- Wish to offset the cost of ownership (estimate 12-14 weeks of charter per year will cover this )
- Don’t need to use your yacht during peak periods (holidays and such)

To be successful at chartering, you have to look at it as a business with long-term goals in mind.  The boat is only a part of the operation…the crew and itinerary is the part that will keep charterers and their friends coming back year after year.  If you want to charter, consider looking at a boat or boat type with a successful charter history (and maybe buying an existing charter operation).  A good charter broker is essential to bringing you charters.

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What is going on with marine insurance?
Due to the stack of claims from our busy hurricane season in 2005, the marine underwriters re-examined their policy making and with a knee-jerk type reaction; harshly adjusted them.  However, the last few relatively quite seasons have brought common sense back into the picture.  Two major concerns are:
Experience – if you are new to the scene, it only makes sense to engage a professional captain (perhaps even part-time) to work with you and your boat so that you and your insurance company will feel better about your ability to navigate safely. 

Storm exposure – with today’s modern forecasting, it is usually a matter of taking early precautions to avoid being in the destructive paths of storms.  Usually being 50 nm on either side of a hurricane eye is a big difference.  Even being in a target zone, there are many things that can be done to minimize damage, not only to your boat, but to the things that your boat can do once free of its tethers.  We see our customers getting good coverage all up and down the east coast.  Cost has gone up, but it is still relatively a good value. 
Perhaps the relatively storm free central American countries and islands will enjoy prosperity with the advent of modern marinas and cruising grounds. The idea is to make the insurer feel comfortable with your abilities and common sense.
Warning: It is not a good idea to “shop” insurance with more than a few agents- as they can lock you out of underwriter markets with respect to other agents whom you might want to do business with.  Look for a good agent who will be there and work for you at claim time.

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What about the high cost of fuel?
My suggestion is to plan trips for slower cruising and take your time.  Most experienced yachters find the “sweet” spots for maximum efficiency – Assuming this is a yacht with a semi-displacement hull, an extended range cruise speed (typically less than 10 knots), a displacement speed that is comfortable (somewhere between 11-12 knots) and a fast cruise speed (usually around 300 rpms below wide open throttle)

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Dockage?
South Florida has a plethora of dockage available that is relatively easy to find – most of it is behind people’s homes at a fraction of the cost of marinas.  That is for yachts that aren’t lived aboard.  For full time live-aboards, there are public and resort marinas which tend to fill up during the winter.  Beware boat shows times!  Dockage gets tough.

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What about Boat Shows?
Boat Shows are a great way to see a variety of yachts in order to determine what suits you best.  The two BIG shows every year are the Fort Lauderdale International Boat Show (FLIBS – in late October) and the Miami Brokerage Show (mid-February).   The Palm Beach show (Easter time) is a breath of fresh air and quite enjoyable.  If you come to these shows, you should be aware that only a fraction of available brokerage yachts are displayed and many are within easy driving distance.  Let your broker know in advance and he/she will gladly make arrangements to show you others on your list.  Also, these shows are quite expensive to the sellers, so making a deal before ahead of time can usually discount the cost of going into a show – despite the banner tag “Special Boat Show Price”  The best day to do these big boat shows without the crowds is the last day of the show. Another advantage to developing a broker relationship, is that they will get you onto yachts that you want to see much easier and without having to register at every booth, or wait during busy periods. Plus, a good broker will “map” out your itinerary – making it a breeze to see the good stuff in a much shorter period of time

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