What would this cost to run?
Discussion
http://ybi1.com/sed_mangusta_72_fast_offshore_crui...
So, I'm in the south of France right now and saw this today in Cannes. It's a beautiful piece if equipment, and I'm thinking that purchase costs might be significantly offset by potential rental revenue.
Obviously I don't know how much I might be able to recoup for sure, but could someone give me an idea of what the cost of running this boat might be?
I don't want to bother the agent if the cost if going to be prohibitive, but as I'm here looking for an apartment to buy (and live in) while I work month on month off in Africa, I'm wondering if this might be an alternative option?
So, I'm in the south of France right now and saw this today in Cannes. It's a beautiful piece if equipment, and I'm thinking that purchase costs might be significantly offset by potential rental revenue.
Obviously I don't know how much I might be able to recoup for sure, but could someone give me an idea of what the cost of running this boat might be?
I don't want to bother the agent if the cost if going to be prohibitive, but as I'm here looking for an apartment to buy (and live in) while I work month on month off in Africa, I'm wondering if this might be an alternative option?
No, I'd be looking at hiring a captain. Believe that would cost about £25k per year, and one or two crew.
I guess my question was more about variables, such as dry dock fees, servicing on engines, and other hidden costs....although I don't claim to be an expert on any of the above, hence the question!
I guess my question was more about variables, such as dry dock fees, servicing on engines, and other hidden costs....although I don't claim to be an expert on any of the above, hence the question!
t your speedo's I suspect.Paddy_N_Murphy said:
Usual 'benchmark' is the 10% of value as running costs a year.
Would you anticipate 10% of new value or second hand value? I would expect the older it is the more expensive the running cost might be so it might be close to 20%?Edited by slf2012 on Tuesday 1st October 23:34
I don't think using a percentage of the cost price is sound. A 10-year-old boat would cost about the same to moor and service as a new boat, but be much less expensive. If you include depreciation in the equation, the older a boat the less it will cost. And these beasts drink fuel - so the more you use it the more it will cost, regardless of age.
As an example from modest Ditchland, the annual running cost of my current boat (bought new) is only 2% of retail price. For my last boat (38 years old) it was about 15% simply because it was much cheaper to buy.
As an example from modest Ditchland, the annual running cost of my current boat (bought new) is only 2% of retail price. For my last boat (38 years old) it was about 15% simply because it was much cheaper to buy.
Its Italian and plastic, although i suppose its still floating after 10 years but be ware of build quality and electronics issues.
Fuel would be a charter + cost so not your issue.
However engine servicing (whats the cost of a 100 engine hour service on one of them MTU's?
Moring - how longs a piece of string - where you going to park her?
Advertising / agent to find you customers?
A sinking (ahem) fund for bigger issues
A varnish, oil and polish fund
Maybe needs skipper + 1 crew but make sure your skipper isn't a complete monkey, dont pay peanuts(maybe outside caterer for the host(ess) and food
no idea about liability insurance.
Fuel would be a charter + cost so not your issue.
However engine servicing (whats the cost of a 100 engine hour service on one of them MTU's?
Moring - how longs a piece of string - where you going to park her?
Advertising / agent to find you customers?
A sinking (ahem) fund for bigger issues
A varnish, oil and polish fund
Maybe needs skipper + 1 crew but make sure your skipper isn't a complete monkey, dont pay peanuts(maybe outside caterer for the host(ess) and food
no idea about liability insurance.
slf2012 said:
I don't want to bother the agent if the cost if going to be prohibitive, but as I'm here looking for an apartment to buy (and live in) while I work month on month off in Africa, I'm wondering if this might be an alternative option?
At the moment, buying good real estate on the Cote d'Azur would be a much better investment IMO. The market has eased back quite a bit recently with the eurozone issues and Hollande's dim wit policies. I'm sure there are some attractive opportunities, and the best parts will always be desirable.
The season for boat chartering in the Med is very short and would be no more than six or seven weeks in summer. Once you get past the end of August almost everyone goes home and if you are able to get any charter business you would be looking at much reduced rates. So, I would ask the broker if the boat has been used for charter and , if so, ask to see the details of the number of weeks and the prices achieved.
You say that you are working away every other month so does this mean that you would be wanting to live on the boat for the months that you are not working? If you are, you will lose any charter revenue for those months and if they coincide with the peak time of year for business i.e. july/August you would have a big fall in revenue. Don't forget additionally that even in peak season you will have empty periods
You will need a captain and one other - someone to cook,clean the boat and host your guests who will expect a very high level of service for the price that they are paying. Maybe a husband/wife team would work best but I think that your figure of £25K looks very low indeed.
The costs of maintenance can vary enormously and disasters do happen with boats. You will need to ensure that the boat is mechanically in perfect condition as your clients will expect total reliability and it is not acceptable to have the boat out of action during a charter.
Fuel costs - depends how far and how fast you go ! However, between 250 and 500 litres per hour would be a rough estimate for slow/fast cruising.
Mooring costs - this is where it gets expensive. Where are you planning to base the boat, bearing in mind that you are trying to attract charter business. Twenty five or thirty thousand euros a year for a decent marina?
The boat itself ? Well, don't worry about it being ten years old, the important thing is how it has been maintained. The interior is looking a little old-fashioned (have a look at recent Sunseeker interiors for an idea of current trends) so you may found that the younger charterers might not be tempted.
I hope this helps - sitting on a boat in the Med in the middle of summer, anchored in a bay, drinking a glass of wine after a day of sun and swimming is amongst the best things you can imagine. The middle of January, sitting in the damp of a very empty marina isn't quite so nice so think hard and carefully please.
You say that you are working away every other month so does this mean that you would be wanting to live on the boat for the months that you are not working? If you are, you will lose any charter revenue for those months and if they coincide with the peak time of year for business i.e. july/August you would have a big fall in revenue. Don't forget additionally that even in peak season you will have empty periods
You will need a captain and one other - someone to cook,clean the boat and host your guests who will expect a very high level of service for the price that they are paying. Maybe a husband/wife team would work best but I think that your figure of £25K looks very low indeed.
The costs of maintenance can vary enormously and disasters do happen with boats. You will need to ensure that the boat is mechanically in perfect condition as your clients will expect total reliability and it is not acceptable to have the boat out of action during a charter.
Fuel costs - depends how far and how fast you go ! However, between 250 and 500 litres per hour would be a rough estimate for slow/fast cruising.
Mooring costs - this is where it gets expensive. Where are you planning to base the boat, bearing in mind that you are trying to attract charter business. Twenty five or thirty thousand euros a year for a decent marina?
The boat itself ? Well, don't worry about it being ten years old, the important thing is how it has been maintained. The interior is looking a little old-fashioned (have a look at recent Sunseeker interiors for an idea of current trends) so you may found that the younger charterers might not be tempted.
I hope this helps - sitting on a boat in the Med in the middle of summer, anchored in a bay, drinking a glass of wine after a day of sun and swimming is amongst the best things you can imagine. The middle of January, sitting in the damp of a very empty marina isn't quite so nice so think hard and carefully please.
Helping folk like you buy boats like this is what I do for a living. I'm not a broker, but a buyer's rep, and work on a fixed fee rather than take a cut of the commission. As it happens I was also in Cannes just a few weeks ago meeting a new Arab client.
To start with, the key is to make sure you're dealing with the central agency broker (assuming you can't find the owner), otherwise serious offers made get lost in the chain of middlemen. Take what the broker says with a pinch of salt: commissions are larger than you might think and many aren't concerned with reputation or long-term relationships.
Condition is everything. Yachts are a complex collection of materials and systems doing their best to self-destruct.
You'd be paying at least EUR 5k per month for a captain-cum-engineer, maybe EUR 8k for a couple to include a deckhand-cum-stewardess. And you'd have to choose very wisely as there are plenty of muppets and crooks out there.
Chartering-out is regulated and a non-conforming private vessel might need expensive modifications. But, yes, chartering-out can claw back quite a bit of expense. There'd be local tax implications, requiring local tax registration for you or the boat's owning company.
To start with, the key is to make sure you're dealing with the central agency broker (assuming you can't find the owner), otherwise serious offers made get lost in the chain of middlemen. Take what the broker says with a pinch of salt: commissions are larger than you might think and many aren't concerned with reputation or long-term relationships.
Condition is everything. Yachts are a complex collection of materials and systems doing their best to self-destruct.
You'd be paying at least EUR 5k per month for a captain-cum-engineer, maybe EUR 8k for a couple to include a deckhand-cum-stewardess. And you'd have to choose very wisely as there are plenty of muppets and crooks out there.
Chartering-out is regulated and a non-conforming private vessel might need expensive modifications. But, yes, chartering-out can claw back quite a bit of expense. There'd be local tax implications, requiring local tax registration for you or the boat's owning company.
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