Buy to charter?

[Thistle]

Many thanks for all the responses. It begins to look as though a new boat in the Med might be worthwhile but anything else is pretty much a non-starter.

 

[Boo2]

Some years back, Jenneau I think, were suggesting deals based on following scenario -
£100,000 purchase cost.
£20,000 deposit,
£80,000 marine mortgage.
Gross charter income (to owner) = £19,000 pa
Costs, marina/repairs/insurance/servicing marine mortgage = £7,000
Net 'profit' = £12,000pa
All for a £20,000 investment!
Too good to be true?

Depreciation ? Can you really get interest only marine mortgages ? Interest at 5% on 80k is £4k so berthing costs will need to be £3k which is optimistic down south anyway. What about insurance ? And maintenance ? £19k pa is £730 per week every week between April 1st and Sept 30th..., really ?

"Too good to be true" is right IMHO, but as the song says : "...nice dream..."


Boo2