Renting out yachts?

[Zaiga]

Hey guys!

Didn't make much research yet. And before I go deep down the rabbit whole and calculate for days.
What kind of ROI can this "type of business" generate.
The idea is to buy and rent out yachts (small one) in southeast Europe region.

Thank you guys for the input!


Greetings

 

[JohnnyDoe]

Zaiga said:
Hey guys!

Didn't make much research yet. And before I go deep down the rabbit whole and calculate for days.
What kind of ROI can this "type of business" generate.
The idea is to buy and rent out yachts (small one) in southeast Europe region.

Thank you guys for the input!


Greetings
Click to expand...

It's not really a business, but a way to save on vat, and earn some extra cash that might help with the maintenance expenses.
There are only two good days in the life of a yacht owner: the day you buy it and the day you sell it. The rest is pretty much misery 😉
Nevertheless, sometimes it's fun 😀

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[CyprusLawyer101]

You need to be in the yachting business and lifestyle already or expect to dig deep to make it. Its also a business that locks a lot of capital.
You can rent to save on your maintainance and marine costs and if lucky make a few bucks. And to add to the sayings : " Best boat is your friend's boat ".

 

[Zaiga]

Thank you guys!
Simply looking ways to park some cash and to generate some additional alpha above stocks with abit extra work 🙂.

 

[CyprusLawyer101]

Real Estate rental income has less work, less risk and more stable returns.

 

[JohnnyDoe]

Zaiga said:
Thank you guys!
Simply looking ways to park some cash and to generate some additional alpha above stocks with abit extra work 🙂.
Click to expand...

Check out the relevant threads in the investments section

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[matihop]

As above, yachting it's more a hobby / way of life then a business.
If you would like to make that business, consider where you want to have that yacht. The most common options:
- Caribbean Sea: you can open company on one of the island with low taxes
- Mediterranean Sea: Albania has good taxes and it may be a good place for the company, or other commonly known islands ;-)
- any other area?

 

[Wellington]

You'd be competing with some major companies that essentially buy new yachts in bulk, run through for a few years chartering out, and then sell.

So you'd have a lot of competition (in Europe)

Then you have to factor out the operating costs/repairs/maintenance, and you'd likely find its not worthwhile because a entire years worth of revenues can be wiped out very quickly.

I have a neighbour (European) that is considering moving back to Europe and doing just what you are describing, and IMO it's not practical, with the costs of maintenance, and upkeep, they say it's 10% per year, but some years can be 25% it just works out 10% over a decade etc.

You need a lot of money sitting ready to be deployed in-case something occurs, not credit as that will continue to get tighter.

 

[clintk84]

I live in this industry and there are lots of ways to benefit, but depends vastly on the options you take.
For example a Day charter yacht is cheaper to build and run compared to a luxury yacht.
The day charter yacht will take lots of people (15-50) for 2-3 hour trips for a low entry fee
The luxury yacht will take 4-8 people for a whole day or weekend and charge a premium fee

It also depends on what value you start investing with?
example I recently sold a build for a day charter build for 60pax which is has an ROI of 20% PA
If looked after properly this is a stable 10-15+ years of returns

I always hear people talking about Mediterranean and Caribbean about yachts charters.
Yes they are very popular but also means plenty of competition as someone above mentioned
Labor in Europe is expensive too for running the charter business

Look at Mauritius!
Cheaper labor!
An export company in Mauritius pays only 3% corporate tax
minimum investment required to acquire an occupation permit (OP) as an investor, and to live in Mauritius as a non citizen is $50,000
Occupation Permit is valid for 10 years. This type of permit enables noncitizen to reside or retire or open their own business in Mauritius,
you can bring their parents to Mauritius as dependents and will also not have to obtain an additional work permit for a spouse who also wants to work
But you also need to earn a minimum of $2500 banked into a Mauritius bank account (Which is what you need to live off anyway)
Permanent residency requires an investment of $375,000.

So if you had to purchase and build a 50ft day charter catamaran yacht for $400,000 from us:
You could get permanent residency and a viable income generating ROI.
You don't have to live there, if you don't want to but it does mean mean you can have a gorgeous holiday on your own yacht whenever you want!