Owning a boat is one of the great dreams, and like all great dreams can be enhanced by some smart thinking.
Boats are a peculiar type of asset, because even the most enthusiastic amateur sailors have other things to do during the working year, so boats do tend to spend a lot of time alongside in the marina.... the average boat owner chooses to use their vessel for less than four weeks a year.
So there is a massive lost opportunity in an asset such as a yacht sitting alongside, unused, an ongoing cost to be recovered, and a need for a reasonable amount of use and ongoing maintenance attention to actually help in keeping things serviceable.
You'll be pleased to know that with Charterlink, your boat can earn a significant income in otherwise idle time which offsets the ongoing cost of ownership. There are many, good, experienced people out there who would love to pay you to explore our beautiful Hauraki Gulf, when you're not using her and there are tax advantages to be had if you let them. Charterlink can put it all together for you locally and manage the entire process, end-to-end.
What's more Charterlink manages repairs and maintenance, cleaning and grooming, all of the chartering stuff like marketing, Maritime NZ regulatory compliance, customer bookings, payment, customer vetting, briefing and support, cusomer service, safety checks, winter husbandry, and simply keeps an eye on your vessel every week of the year These are just some of the benefits of placing your vessel in CharterLink's fleet. There is also a significant tax advantage (despite what some people say), and most importantly, the vessel is here, in Auckland,for your enjoyment.
All you have to do is take the charter income and tax advantages, arrive, sail, and enjoy.
Below is some more detail about each of the points... but whether you're an existing owner, or considering buying a vessel, give me a call, drop in to our Bayswater HQ for a cup of coffee and a chat.... We'd love to make your acquaintance, and chartering just may make the difference between owning a yacht and not owning one, or add a few feet on to your dream vessel by making it that bit more affordable.
OIC, Charterlink Ph 021 355368
Essentially, you own the vessel, and the charter income is shared between Charterlink and yourself. Charterlink’s share goes to pay for the services below, and your share is first applied to the vessel, and then you take the cash surplus. So your maintenance and expenses are paid by the charterers, not you.
The exact formula is tailored for each vessel and owner, and we will go through detailed expected outcomes with you and adjust the formula so that it works for both parties.
The income level will depend on the attributes of the vessel, how much chartering you allow, and the peculiarities of each season such as exchange rates and weather patterns.... so we'll have to discuss that in detail with each interested party.
However the fundamentals are that bareboats in the Hauraki Gulf are in short supply, and therefore highly valued by Clients, and they're happy to pay good money for the privilege of using your vessel. They generally pay more than you can get under a shared ownership deal, (so your boat gets more income for less work)
Because the vessel becomes an asset used to create income, very significant "proportional use" tax advantages apply.
- the GST component of the purchase price can be claimed against,
- as can the GST on purchases and expenses
- the value of your boat may be depreciated in your tax
- finance cost may be deductible
We recommend that you speak with a financial advisor for the details of this, but combined with the Charter Income, this can very heavily subsidise your ownership of your beautiful boat.... and we've been told more than once that the act of putting a boat into Charterlink often means that an Owner can afford a bigger boat than they would have otherwise
The international bareboat charter business generally has a preference for new and/or big.
The ideal yacht is in the 40-60 foot range, is less than 10 years old (the newer the better) and sleeps as many as possible.... three or four cabins is desirable, monohull or Catamaran.
The ideal power boat is in the order of 30-50 ft, with good sleeping accomodation and not too quick... we have previously had power vessels in the fleet and would happily do so again, but 10-12 knots is fine (to avoid the cowboys!)
To be eligible for hire as a bareboat the vessel must conform to the Survey and MOSS systems set by Maritime New Zealand. Despite the fact that they may be fully approved in overseas jurisdictions such as the EU, Maritime New Zealand require that vessels going to charter must have New Zealand Design Approval (structural and electrical) and undergo an Initial Survey process. In order to get Design Approval, we must be able to acquire full documentation (e.g. plans and factory certification records) relating to the vessel’s construction, which is submitted to an NZ naval architect and Electrical Design Approver for the approval.
This in turn invariably means that we can only charter quality-built “Production” Yachts (the current fleet includes Bavaria, Jeanneau and Beneteau brands), which are built to a known formal standard and well documented. New vessels are easier to get documentation for than older ones.
From a customer viewpoint, moderate hull displacement, modern and roomy hull design with maximum cabins, ease of operation and superior cruising interior accommodations are sought after. The ideal would be in the order of 35-50 feet mono or multihulls vessels with three or four cabins.
Charterlink can provide guidance on the most suitable vessels and detailed configuration, and will guide and subsidise the process of getting design approval, which can be lengthy for new classes.
Incidentally, in order to charter out a vessel, the operator (ie Charterlink) must also hold a Maritime Transport Operators Certificate. Holding this requires all processes to be approved and audited by Maritime New Zealand. Charterlink has an MTOC, and whilst adding new vessels requires work to set up manuals, checklists, processes and evaluate risk management, it is relatively easy given our experience.
Because Bareboat charters are in short supply, we can afford to be picky about who we let aboard!
Our clients divide into two main groups....
Many of our clients are from overseas, and generally speaking they are boat owners of good standing themselves, so they have an appreciation of how to look after a vessel. Their objective is to sail in our great Hauraki Gulf.... it's humbling to realise that what to us is a commonplace trip around Waiheke or over to the Happy Jacks is a world-class cruise and sailors come from all over the world to do it. We regularly have visits from overseas sailing clubs (such as the presigious Royal Yacht Squadron in 2016, or the Cruising Club of America on 2017) and these people are respectful and professional sailors
Local folks also hire our yachts; again, generally they are mature people who are experienced and accomplished sailors who either own a boat now or have done so in the past, and have significant experience in charge of vessels of a similar type to that being chartered.
We require a substantial bond on all charters, and this gives our clients "skin in the game", we enquire deeply into their sailing experience and expertise, and we assess this during a detailed briefing session which we conduct before each charter. We remain in touch and available to charterers throughout their trips, and provide detailed manuals and tips to them...
in short, you can be assured that the vessels are in better hands with our clients than most boats on the harbour are under their owners or part-owners!
Yes. Because we generally only have only one owner (not six or more sharers), Owners have the first call at all times of the year. Owners fence off the first choice of any time they want in advance, and Charters are not accepted for those times. (Charterlink recognises that our boat owners own their boats so they can go boating!)
Even if time has not been fenced off, owners can use their vessels if there isn’t a booked charter. ...your yacht is in the Hauraki Gulf, handy and ready, so if the weather looks OK for the weekend you don't have to book a plane to go sailing (as you would if your yacht was in some foreign charter fleet.) Only if a charter has been accepted for a particular time is the vessel committed to clients.
What's more, we prepare the boat for an owner trip in the same way that we would for a Charterer; our Year- round upkeep offers ready-to-use availability. When you arrive, your boat is waiting in its berth, fuelled, watered, serviced, and cleaned. Just put aboard your food and gear and you’re away!
If your primary objective is to make a profit, owning a boat in charter with one of the big overseas charter companies is an option.
The vessels are managed and used by the charter companies, and you get to use her (subject to various conditions) in that location. The closest fleets to here are based in the Whitsundays, Tahiti, Tonga and New Caledonia.
That works for some people... but if you want to take your boat for a run on Friday night you have to go to the airport.
The Hauraki Gulf and the northland coast are superb world-class cruising grounds, but if your boat is in some exotic location, you don’t get to go to Mansion House, or Tiri, or Fitzroy, or the Happy Jacks on the weekend with your mates, or the family, or the Club. You don’t get to have the work folks round for drinks on her, and neither do you get to see exactly what your boat is doing, or visit her except for the annual excursion.
These companies make their money by chartering the boat out, and the reason they are in those locations is that they can look forward to 300 days a year or more of charter season. That’s great for income… but it’s a double-edged sword… 300 days of chartering a year is going to take a toll on the boat.
However, our Owners charter with us
- because their vessels are accessible... if the weather looks OK for the weekend they dont have to book a plane to go sailing
- because although too little use is a bad thing, so is too much....too much use of a boat reduces overall life. Charterlink finds the "Sweet spot" in between.
- because we have way more flexibility about owners use, and the fine details of how much we do or you do on your vessel
Maritime New Zealand rightly require that charter vessels are kept at a high standard of safety and fitness for purpose. They hold us accountable for that through our Maritime Transport Operators Certificate and a battery of checks and audits, and only some vessels are acceptable for this service. This means that you, as vessel owner, can be assured that the boat is kept up to scratch and regularly checked from a safety perspective. Even when theyre not working we visit and check each boat each week year round free of charge for vessels in service... many of our owners are from out of town and this means great peace of mind!
Charterlink is very experienced in administering that process, and because we operate a fleet of vessels, we can run a complex management system, and get the economies of scale and pass them on to you.
It takes some work and expertise to make bareboat chartering work in New Zealand. You need to operate under a Maritime Transport Operators Certificate, (which involves a raft of requirements physically and operationally), have the vessel in survey, and manage the marketing, enquiries, bookings, customer services, and payment processes. Charterlink has been doing this for many years.
- Advertise & attract customers
- Address booking Queries
- Maintain booking system
- Take Payment
- Bond Admin
- Screen and assess Skippers
- Provide external qualified skippers when required
- Voyage Management
- Start of Charter briefings and preparation
- Provide Hotel services and materials
- Provide Real Time support during charters
- Post Charter debrief, inspection, turnaround
- Administer Payment of owners
- Maintain Maritime Transport Operators Certification
- Manage the Maintenance of vessels
- Boatkeeping... we visit and check each boat each week year round free of charge for vessels in service... many of our owners are from out of town and this means great peace of mind!
- Acquire goods and services for maintenance on behalf of the owner at the best price
- Monitor vessels throughout the year
- Ensure Vessel is ready for Owners Use
- Insure Charterlink’s activities