We want to show you a calculation of how much you can save by becoming a member and part owner of a Broward 121 foot luxury motor yacht, in our program Yachting Dream Club USA program.
In 2014 there were 6 000 + luxury motor and sailing yachts longer than 100 feet. It will be built around 100 to 200 new yachts, which will come into the market every year. Approx. 20% (1200 yachts) of the existing yachts are available for charter on the open market. Most are chartered out for 5 to 10 weeks a year. The remaining 80% are only available for the owner and usually have full crew on board throughout the year.
Statistically an owner of this category luxury yacht, use it from 3 to 6 weeks a year. The 20% that will be chartered out will have an activity of 13 to 16 weeks per year.
The value of yachts is reduced by approx. 6,5 % per year and the annual operating that the owner must cover is a several million USD amount, which is a lot of money.
By participating in this new "Luxury Yacht Part Ownership Program at Sea Program” you can save many million USD and at the same time you have your private Broward 121 feet (37 meters) Luxury Motor Yacht, which you are a part owner of for only 17 % of the investment of a “pre-owned” yacht and operating costs are shared on 1/36 weeks.
By participating in the program with Four Weekly Shares save your investment by 83% instead of owning the whole yachts alone. In addition, you save 1/36/52-parts operating costs.
Ownership versus part ownership
What does it cost to own a 121 foot motor yacht, versus to participate as a part owner? In this economic calculation, I have chosen to use four weeks. Here you can see two cases.
1. The price of a new built yacht today is approx. USD 16.0 mill.
2. The price of a “pre-owned” yacht today is approx. USD 6.0 to 9.0 mill.
COSTS TO ACQUIRE A NEW BROWARD 121 FOOT
Here I use USD 16.0 million as the purchase price. This may vary according to the technical equipment you choose. In addition to a new price comes the costs that the owner has paid from the date he decides to build his “dream yacht." Construction time for this type of yacht is 24 months and it inflicts owner constantly costs under way until delivery.
COST OF A NEW 121 FOOT YACHT:
1) Purchase: USD 16.0 million
2) Annual maintenance and operating costs per year: USD 540,000.
NET COST FOR THE OWNER OVER A 10 YEAR PERIOD:
1) 6.5% annual depreciation / loss of value: USD 7,200,000
2) Annual operating expenses of USD 540 000 over 10 years: USD 5,400,000
Owners total cost in a 10 years period: USD 12,600,000
COST OF PURCHASING OF A 10 YEAR PRE OWNED 121 FOOT YACHT
Purchase Price: USD 6.0 million
1) 6.5% per year depreciation / loss is: USD 2,500,000
2) Annual operating costs USD ,540,000 over 10 years: USD 5,400,000
Total cost in a 10 years period: USD 7,900,000
This is what you can save by participating as a part owner in Yachting Dream Club, using the yacht for four weeks every year for 10 years; a total of 40 weeks:
10 x 4 weeks cost USD 1,076,000. After the 10 year period is ended, Part Owners will be reimbursed 10% of this amount so that the net contribution will be USD 968,400. Four weeks annual running cost is USD 60,000 which is 4 parts of 36 weeks. A total cost for a 10 year period would be: USD 600,000. Total cost for 10 years: USD 1,568,400.
MODEL 1 - NEW YACHT:
Total cost for 10 year period: USD 12,600,000
Cost as a member of Exclusive Yachting Club No 1: USD 1,568,400
In this case you save the entire: USD 11,031,600
MODEL 2 - PURCHASE OF A PRE OWNED BROWARD 121 FOOT:
Purchasing price of USD 6.0 Million
1) Total cost for 10 years: USD 7,900,000
2) Cost for a member of Yachting Dream Club: USD 1,568,000
Save as a member: USD 6,331,600
SO WHY INVEST IN A “PRE-OWNED” BROWARD MOTOR YACHTS IN LIEU OF A NEW
The answer is very simple. If you participate as a Part Owner in Yachting Dream Club you will benefit by investing in a “pre-owned” Broward Motor Yacht. This is half the investment compared to a new, without any reduction in quality and style.
There is a full Business Plan of 65 pages available on query. Contact Meisler Yacht today.