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New to Yachting; 13 Million to spend -

Discussion in 'General Yachting Discussion' started by Seeker, Mar 10, 2011.

  1. colintraveller

    colintraveller Senior Member

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  2. PropBet

    PropBet Senior Member

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    Is Everything!
    Some random thoughts here and there on the topic:

    Westport's 96 is a good choice to cut teeth on. I would buy used, after you have found a very trustworthy Surveyor and Broker. New boat tooth cutting, and new boat owners is a tough cocktail to mix. Your Surveyor of choice should be found / referred to by you or a colleague, not your Broker. And when you get to the point of surveys, remember, his job is to blow the deal up, not make it right. He is your best friend in the big picture, and a your brokers worst enemy. (for the lack of a better description) His job is to show you what's wrong with the boat, while the brokers job is to sell you a boat. This is a natural conflict of interest within the food chain of yachting. There's nothing wrong with it, however it's something to understand and work within.

    Expect, and plan on what could be a lengthy process to find what you like, don't like and end up with based on preference, cost, maintenance, crew, cruising grounds, amount of use, etc. Take your time. Sexy isn't always functional. Understand how and what you're going to use the boats for, and buy the boat that fits that. Considering the current conditions of the boating / yachting industry, there are some outstanding deals to be had out there. Cash is king, and money talks.

    Some of the best advise would be to charter a few boats before you decide to purchase. You're viewpoint will change remarkably through the charter process and time spent on a boat with regards to what you want and don't want in a boat around that price point.

    Finally, if you have 13M to spend, start looking in the 3 to 5M range. You'll understand why later.
  3. NYCAP123

    NYCAP123 Senior Member

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    And here I always considered myself to be that.:) Really though, we both are, and our job is to blow up a deal if it should be blown up. Find yourself someone knowledgeable in the business such as an experienced, independent captain and get chummy. He will steer you towards good boats, advise on negotiating strategies, and do initial checks much cheaper than a surveyor. Once something passes his muster and your negotiations (always contingent on survey and sea trial) are completed he should then be able to steer you to a good surveyor. If either tells you to walk away, forget how sexy she is and how much you love her, and do it.
    As you look through the related threads here you will find mention of a disclosure agreement. It's not part of most deals. Make it part of yours.
  4. PropBet

    PropBet Senior Member

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    Yes, blow it up if it should be. Very good point, and clarification. Thank you.

    And I second the disclosure statement. So much that I'd walk away from any seller that wouldn't provide one on a boat that size.

    I relate the Surveyor to the guy we use locally for property (real estate) inspections. You can actually see Sellers agent's cringe when he shows up. It's rather comical. But, he's also saved us untold amounts in headaches and potential sinkholes. We can all agree that it's best to use someone that represents the buyers personal interest, not the brokers or sellers.
  5. bernd1972

    bernd1972 Senior Member

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    You might also consider something completely different, a real small ship for example. Take a look at this Farmont 70.
    It´s a completely different story, but that is a bullet-proof go-anywhere vessel built to amazing quality and perfect for living aboard and cruising with a small crew.
    (No, I am in no way affiliated with that guy who wants to sell it. I just know that type of boat a little and I believe in the concept)

    Or how about a real ship? Something dutch?

    Well, you might already have noticed that there is plenty of choice with that budget.
    I guess you should think about the size you would feel comfortble with. The finest boat is unpleasant if you can walk around half a day without meeting your wife even though she´s aboard as well.:D
    Honestly, I´d rather try tot talk you into something smaller, something below 100ft if you´re giong to be just an owner couple aboard most of the time.
  6. saltysenior

    saltysenior Senior Member

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    BUY A GENTLEMAN'S FARM





    you will remember this post 5 years from now...;)
  7. 14freedom

    14freedom New Member

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    Shark?

    NYCAP123,
    Thanks for the Kudos. I am not a broker nor a shark...just trying to refer him to a guy who is President of the most reputable brokerage house in the industry. I've known him since he was a lowly broker in NPT.
    Question...with 4600 posts in 3 years, do you get out often?
    Dan
  8. NYCAP123

    NYCAP123 Senior Member

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    Close to 200 days a year (although not in this past year:( ) Your recommendation sounded like a good one, but premature. First he has to line himself up with professionals who represent him. I've known many brokers; some very honest and some sharks. I had one recently doing his absolute best to put a client into a tub, and without me he would have bought it. Once he has people familiar with the business on his side, he has a better chance of figuring out which is which. A brokers job is to make a living. All else is secondary, although many really do try to do right by the buyer. Even buying a used car (for a lot less than 13M) everybody knows to bring a professional, yet many don't. They're the ones on People's Court saying "I thought I could trust him".
  9. 14freedom

    14freedom New Member

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    Small Fortune...

    Hey All,
    Want to make a small fortune?
    Start with a large fortune, then buy a yacht.
    ATB-
  10. rodsteel

    rodsteel Member

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    Seeker,

    Over the past ten years, I have given a lot of thought about what I would do if I was lucky enough to be in your shoes. Here's my two bits :cool: .

    Rod


    1) Find a good financial adviser (i.e., one that can deliver a consistent, safe 5% yearly ROI - after commission and taxes).

    2) Place $12M into his care.

    3) Find a qualified (semi-retired?) captain and hire him for at least one year (probably about $100K would provide the quality needed) - given your experience you are going to need a captain anyway no matter what size you ultimately purchase.

    Take the remaining $900K and schedule two-week crewed charters on the following sized yachts in the caribbean and mediterranean (starting at 85' and going down then up). Take the captain and his significant-other along as guests on the charter and also let him research the yachts to charter based on your preferences.

    65' = $60K base and $20K fuel, food and tips ($80K)

    85' = $90K base and $30K fuel, food and tips ($120K)

    100' = $150K base and $75K fuel, food and tips ($225K)

    120' = $200K base and $125K fuel, food and tips ($325K)

    I would also consider chartering the following yacht (for one week only with captain/partner and eight family members). The reason I included the 165' is because I would charter one this size (or larger) once a year for the family get-together (much cheaper than buying an oversized one just to accomodate that week - the income from the savings could subsidize it).

    165' = $250K base and 200K fuel, food and tips ($450K)

    Total budget = $1.2M ($900K plus $300K from investment income)

    This should provide enough insight to then look into purchasing a yacht of appropriate size and price (10% - 15% of net worth and 10% - 15% of new cost per year in maintenance and running costs).
  11. Mark Woglom

    Mark Woglom Senior Member

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    Best "yachting" advice I've heard so far! Toys with motors are NOT a good way to keep an inheritance intact. If you want to have the money for a lifetime, make sure that you are leaving an inheritance, not spending an inheratance.
    Last edited: Mar 12, 2011
  12. bernd1972

    bernd1972 Senior Member

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    As far as I understand he wants to spend 13M of his inherited money on that yachting experience, mentioning that he quite enough left for not beeing concerned about his financial future.
    Beeing able to spend that amount of money is hard to imagine for someone like me as well. If I´ll ever have 13 millions it will be when you can buy stamps with that size of numbers on it. :eek:
    Nevertheless, if he wants to do so that´s fine. I´ll try my best not to envy him. :D
  13. fantasymaker

    fantasymaker New Member

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    Id like to suggest something a bit different.
    Its my dream but you are certainly welcome to it.
    Ive often thought if I were to win the lotto and have a few millions Id like to sail the world.
    Just as quickly it occurred to me that there might be a certain boredom to that and what a waste of so much money.
    Ive always found myself happiest when doing good.
    Then it hit me there are lots of "Do Gooders" that need transportation.
    Missionaries on their way a field, food and supplies that need to go to needy places. Exchange students etc.
    Why not outfit a cargo ship for this mission? Luxury appointments for you and your family of course!
    Think of some of the benefits.
    As a Nonprofit organisation there would be tax benefits.
    You will go to interesting places you would have never thought to go otherwise.
    Since your "Working" when there you will be treated in a more homey friendly manor by the natives.
    You will meet lots of VERY interesting people.
    You might create a legacy for your self.
    When approached by all those old friends and family that want a loan or grant from you you can say "Sorry but Id be stealing form starving kids if I gave it to you BUT since you really need money there's a job in the ships laundry.....
    You could insure your kids future without ruining their dreams by hiring them to work on the boat and thus get health care and other benefits but yet not make the jobs so good the would suck your kids away from their own dreams.
  14. Old Phart

    Old Phart Senior Member

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    I dunno
    This is how Bernie M's dreams became reality! :D

    Enough sarcasm, for now... ;)


    While on the subject of pre-purchase intellectual enhancement, anyone have a thought or two regarding the script on the stern, as in home port - domestic (USA) or foreign (C.I. or M.I.)?

    Just curious, given the theme of this thread (reduce ownership anxiety) and this helpful post:

  15. NYCAP123

    NYCAP123 Senior Member

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    Have we lost track of this being YACHTForums. What's with the real estate link?
  16. travler

    travler Senior Member

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    just some thoughts i have about your position , i think i would finde a boat i liked and interview the capt and crew to see what the compatiblty would be and make sure i could put up with them for several months at a time and charter the boat and crew to get a good idea of just what i was getting into and the areas of the world i like best , after a few months you should have a sence of what direction to go

    good luck travler
  17. saltysenior

    saltysenior Senior Member

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    the guy asked for advice....after 50 yrs of working in the yacht/fish business, and seeing the turn over rate as far as owners go the last few decades , i advised to by a farm......you can't do that on a ''YACHT'' forum.????:confused:
  18. NYCAP123

    NYCAP123 Senior Member

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    Maybe I'm connecting to a wrong link, but I'm reaching an ad for a house that's for sale down the block from the Clinton's estate.
  19. TheBigWhit

    TheBigWhit New Member

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    You have 13 Million what?

    I'm not sure you should use the word "invest" when speaking about boats.