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|Boats for investment|
Boats can be used as an investment as well as pleasure
How can a boat be used as a investment?
Boats operated by hire boat companies are often not owned by the hire operator, but by a private individual, partnership or limited company. The boat is operated within the hire fleet and the owner receives a share of the income from bookings. Often the income is greater than if the owner had a sum equal to the purchase price of the boat in a savings or investment account.
Are many boats operated this way?
Yes. A large number of hire boats operating in the UK are not owned by the hire operator. These boats are often termed 'sponsored' boats.
What sort of costs are involved?
The boat has to be purchased. Depending upon the deal with the hire operator, on-going costs may then include contribution to the licence, to routine maintenance and to major repairs (such as re-paints or major engine works). The hire operator will also contribute to these costs and also totally cover costs involved with boat turnrounds, marketing and bookings.
The hire operator will require a minimum period of operation within their fleet, which may be extended in some cases or the craft may be moved to a different fleet at the end of the agreed term.
Another cost to take into consideration is that the boat value will depreciate over time, with most likely greater depreciation on a new boat than on a second-hand boat.
What sort of income could be received?
The income is based upon a percentage of the hire revenue. This is generally around 30% to 40% of the revenue after VAT, and is often reduced as the craft ages to take account of increased running costs. Nett income will depend upon many factors, including the number of berths, charge rate and number of weeks for which the boat is hired. This can be estimated by taking average hire fees for a chosen hire operator, with a typical year between 20 and 30 weeks hire. However, as a very rough guide, investors can receive an annual nett income of around £5,000 - but there is no guarantee as this will depend on the success of the boat being hired out.
In addition, at the end of the term you still own the boat, which will have a residual value and can be offered for sale to private individuals or other investors.
Can I use the boat for personal holidays?
Yes, it is possible to book a limited number of weeks on your own boat, with agreement from the hire operator. The arrangements vary with some operators charging a nominal fee to cover such as turnround costs.
Where can I find investment boats for sale?
Occasionally we have investment boats for sale, however, we mainly sell privately-owned craft. Investment boats for sale may be existing boats or planned boats awaiting an owner before being built. Any that we have for sale at the moment are listed below.
Investment boats could give better return than money in the bank!
Buying a Boat
The ABNB Process
Finance & Insurance
Licences & Moorings
ABNB Ltd, Crick Wharf, West Haddon Road, Crick, Northampton, NN6 7XT