Does owning a Charter yacht make financial sense?

[Pambbrown]

Interested in others who have taken the plunge and bought a yacht with a charter co. Horizon Yachts use 25 weeks/year. Is it a break even after expenses? How easy is it to actually get 25 bookings/yr.

[dianoce]

It could also be profitable to charter your yacht. But that would also depend on the location your are placing your yacht. I suggest that you go to places that there are always huge number of tourists looking for yacht charter.

[dmgjgmd]

The answer to your question is much more complicated than you would suspect. On a straight cash flow basis it does NOT break even. Figuring in tax breaks can make it advantageous. But that means you should expect to be audited by the IRS. This means you MUST have a good CPA, and MUST do your due diligence. Which among other things means keeping a copy of everything you do in preperation for the venture. (including a copy of this thread, ticket stubs for every boat show you visit, copies of all advertising rochures you read, etc) There are significant differences between the chartering companies. Please visit several marina bases (during the off season), walk the docks, and inspect the condition of boats which have been inservice for several years. Will you be happy owning a boat leaving a charter fleet after the charter service says she is through? We are still owners of a boat. Our first went 9 years in the BVI, and looked good when she was sold. Our second boat has been in service for 7 years, still looks good, and there are a couple of boats in that fleet now on year 11, still looking good.
The best thing is going down to the base, and getting on your boat when she is quiet, and taking her out for however long you want. We sail to places that charterers cannot go, and enjoy it.
Be warned that at the present time financing (which is an important part of the tax breaks) is very difficult.
Good luck

[Mayap]

It is a very risky buisness, depends on the market.