Have you ever dreamed of owning a yacht? Have you ever dreamed of sailing in one of the world’s great cruising grounds where the sunshine is (almost always) guaranteed? Have you ever dreamed that owning a yacht was not such an expensive and extravagant proposition?
Through our affiliation with Dream Yacht, CYOA, and other yacht charter management companies, we offer you the chance to fulfill those dreams. These companies operate several programs, all of which ensure that your yacht is managed and kept in the best possible condition.
Several unique programs are available which will help you purchase the boat of your dreams and place her into charter yacht fleet with a program to suit your exact needs. It is the intelligent way to purchase, own, and manage such an important asset.
These programs will allow you a choice of yachts from the world’s greatest shipyards. We offer you models from Lagoon, Fountaine-Pajot, Nautitech, Catana and more. The boats are equipped to a higher specification, which in turn attracts higher charter revenues and in the end, commands a higher resale price. Not to mention more enjoyment and comfort for you, and your family and friends!
Yacht Charter Management Programs Explained
Lease Purchase Yacht Management Program
This program allows a buyer to purchase a boat using charter company financing. The buyer therefor do not have to apply for a conventional mortgage. The buyer pays 35% of the purchase price down payment at the start and then there is a balloon of 25% at the end of the 66-month program. The charter company retains the title and when the balloon payment of 25% is settled at the end of the program, the title is handed over to the buyer free and clear. There is reciprocal owner use worldwide (only the larger charter companies) for a maximum of 8 weeks. There are absolutely no out of pocket costs for the duration of the program and there is no income to the owner. There is an extensive phase-out program to hand the owner a yacht in good condition.
- Brands Available and Customization – Lagoon, Bali, and Fountaine Pajot. Minimal customization, these boats are ordered factory direct in volume and have to have maximum cabin configurations. No owner vesions.
Guaranteed Income Yacht Management Program
This program requires the buyer to obtain financing for the yacht, which normally requires a 20% down payment. At closing the title is transferred to the buyer and the lender will usually have a lien on the title. The charter company guarantees between 6-9% return on the cost of the yacht annually and is paid monthly. The ONLY expense that the buyer is responsible for is the mortgage, which is covered by the guaranteed payment. Charter company pays ALL other expenses for the 60-month duration of the program. There is reciprocal owner use worldwide for a maximum of 12 weeks. There is an extensive phase-out program to hand the owner a yacht in good condition. Check out this article that explains this program in detail: DO THE YACHT PROGRAM NUMBERS WORK?
Brands Available and Customization Level – Lagoon, Fountaine Pajot, Bali, and Catana. Can choose fabric and wood colors (if available) with minimal additional equipment and must be maximum cabin configurations.
Performance Yacht Management Program
This is the highest yielding program financially, but unlike the previous programs where the buyer has no financial risk, there is a shared risk/benefit attached to this program. The buyer requires financing and title is transferred at closing. The net income split is between 60% and 80% to the owner and the rest to charter company with all the expenses being paid by the owner out of the his/her portion. The owner is responsible for ALL costs including the mortgage payments. When looking at the split between the owner and charter company, careful attention should be paid to the actual bottom line number. Comparable programs with, what appear to be better split ratios such as 80/20, sometimes end up yielding less dollars than the 60/40 model because of loaded costs. There are 12 weeks of owner use but ONLY on the owners yacht – there are no reciprocals unless negotiated beforehand. Some companies will offer up to two weeks to owners.
Brands Available and Customization Level – Lagoon, Fountaine Pajot, Bali, and Catana. Owners versions are fine and the owner can customize the layout as well as equipment but it needs to be charter friendly and easy to maintain, so items like washer/dryer and dish washers are frowned upon.
Business Yacht Ownership Program
This program is based on the performance program template, but has additional modules which enable the buyer to run the boat as a business. By placing the yacht into a corporation and running it as a business, the owner is able to create substantial tax advantages that further offset the cost of ownership. We can explain and expand on how this program works with you in person or on the phone. Because every person has different circumstances, the stimulus programs that are available affect each one differently. A consultation is advised to see if this works for you. For buyers who are in high tax brackets, this is definitely an option that should be explored.
Brands Available and Customization Level – Lagoon, Fountaine Pajot, Bali, Xquisite Yachts, and Catana. Can customize layout as well as equipment, but needs to be charter-friendly and easy to maintain so items like washer/dryer and dishwashers are frowned upon.
French Defiscalization Yacht Management Program
This program is offered by French-owned charter companies. The yacht buyer receives an upfront 50% discount on the purchase price with a 7-year term. The charter company will pay the buyer an annual guaranteed income of 3% of the cash amount the buyer puts down. The buyer has no out-of-pocket expenses for the duration of the agreement (maintenance insurance, dockage etc. are 100% paid by the charter company). Owners’ use of the vessel is 2 weeks in high season and 2 weeks in low season, OR 6 weeks in low season with reciprocal owners’ use worldwide. The vessel must be French-flagged and the charter company remains the holder of the title until the end of the 7-year program. As a guarantee for the above clause, the buyer will be given a lien right on the vessel’s title, registered with the French Government from inception, which will ensure that the buyer is fully protected in any eventuality. French regulations on vessel’s titles are extremely strict and the buyer has absolutely no risk.
Brands Available and Customization Level – Catana only. These boats are prebuilt and spec’d out so there is no customization available and the specification of the boat is fixed.
Crewed Yacht Ownership
Most of our owners of catamarans over 50ft, place these catamarans into one of several crewed charter programs, like
- An owner/operator crwewd charter
- By-the-cabin crewed program or
- An independent crewed charter operation on a mega yacht.
The basic idea is that the boat is operated as a business, which enables the owner to reduce the cost of ownership through the use of available tax advantages and income from charter to pay for the boat. All our owners in these programs have successfully created small businesses and achieved their ultimate goals. It is the most cost effective way to own a big luxury catamaran! Get all the details here.