Determining a yachts value.

[Rum_Pirate]

I have the opportunity to buy a half share in a Trimaran 27'0" yacht.

It has been on the hard for over 6 years.

Yachts of the same model are available for sale in Miami for (according to vendor) US$25k - $35k. Owner wants (wants and gets are two different things) US$32,000.00.
I have seen one for sale at $18k.

The subject yacht requires the following work (IMO) to make it seaworthy.

Remember in the Caribbean you are fairly on your own, no SeaTow, UK style CoastGuard etc. For me safety is paramount.

Needs :

• New main (both sides agree) - about US$2.5k plus freight + duty etc +/-60% So roughly $US$5,500
• Standing rigging needs replacing (over 10 years old). So roughly $US$5,000
• Halyards, running rigging etc requires replacing. (Seeking prices including turnbuckles).
• Probably needs needs new jib
• Probably needs rewiring.
• Antifouling - sand hull and apply (US$400.00 / US gallon) So roughly $US$800
• New outboard 9.5 hp (existing one is a 2 stroke 2011 model and has not been run in over 6 years. It was not run in fresh water after haul out. So roughly $US$2,000
• Various hatches require replacement due to UV damage (surfaces are powdering)
• Trampolines on either side - about US$1.2k EACH plus freight + duty etc +/-60% So roughly $US$4,000
• Trampolines - small - on either side at bow. $US$1,800
• Repair to rudder base glass fibre matting damaged and exposed.
• Clean inside properly (six years stale air and water in bilge, some mold in outriggers). Power wash and steam clean?
• Clean outside properly.
• Hull and topsides need polishing after 6+ years in sun.
• Miscellaneous other items.
• Owner is facing $US3.5k per annum storage fees.

A rough cost to bring it up to seaworthy standard is say US$12,000.00 (low ball estimate, exclude front trampolines, outboard engine or more doing work ourselves etc).

Fair simple arithmetic value calculations (assuming all else is equal)
Take the $35k price -$12k = US$23k.
Taking average $25K = $60 /22=$30-$12 = $18k
Take the $25k price -$12k = US$13k.
Take the $18k price -$12k = US$6k.

What would value the yacht at US$ 23k, 18k, 13k, 6k ? Other?

Is my offer of US$5,000 plus I will organise and get and pay for all of the above repairs/replacements/restoration done, i.e. +/- $5,000 +$12,000 =US$17,000.00.

 

[Minerva]

The one you've seen at 18k - how much needs spent to bring it up to the same standard as your theoretically upgraded boat listed above?

 

[cherod]

( IMO ) your figures are only a bargaining chip ,, in reality much of which you quote is available used in good condition .
( is it a eg. Newick , or is it rubbish . would make a difference )

 

[Rum_Pirate]

( IMO ) your figures are only a bargaining chip ,, in reality much of which you quote is available used in good condition .
( is it a eg. Newick , or is it rubbish . would make a difference )

Corsair 27.

Getting stuff here it is better to bring in new as the duties are in the 50-60% range.

Not actual boat pictures.

 

[KevinV]

I'd personally be very wary of a boat share with someone who hasn't touched it for 6 years - are they going to do/pay their share of the running maintenance when she's back in commission?
A trimaran in the Caribbean is a lovely thing, but 18k buys a lot of boat down in Trinidad

 

[cherod]

Corsair 27.

Not actual boat pictures.

well respected boats .
( didnt pick up the " share " bit earlier ,,, ( personally ) i would never consider that , especially ( as said ) with someone who already has shown that they can not maintain their boat .

 

[Rum_Pirate]

I'd personally be very wary of a boat share with someone who hasn't touched it for 6 years - are they going to do/pay their share of the running maintenance when she's back in commission?
A trimaran in the Caribbean is a lovely thing, but 18k buys a lot of boat down in Trinidad

Got any contacts/links ?

 

[Rum_Pirate]

well respected boats .
( didnt pick up the " share " bit earlier ,,, ( personally ) i would never consider that , especially ( as said ) with someone who already has shown that they can not maintain their boat .

He lives overseas and would sail/motor only for a couple day sails at Christmas/winter, more likely or not with us aboard.
My friend and I would maintain and use rest of time.

 

[KevinV]

Got any contacts/links ?

Not anymore I'm afraid, and I might easily be wrong about the situation now. I just recall there being a lot of (mostly American) boats pretty much abandoned down there, racking up fees at Powerboats. Dream trip down from florida, hauled out for hurricane season, and never returned to. St. Martin was very similar, but I guess the last hurricane cleared Simpson Bay?
(jeepers, I just realised it's 20 years since I was there - I'll shut up now)

 

[Rum_Pirate]

Not anymore I'm afraid, and I might easily be wrong about the situation now. I just recall there being a lot of (mostly American) boats pretty much abandoned down there, racking up fees at Powerboats. Dream trip down from florida, hauled out for hurricane season, and never returned to. St. Martin was very similar, but I guess the last hurricane cleared Simpson Bay?
(jeepers, I just realised it's 20 years since I was there - I'll shut up now)

Interesting the 'dream trip down from Florida/US.

That voyage is basically going against the wind.

Trinidad to Florida is with the wind and a much smoother sail.

Depends too the time the voyage down is made.

 

[Concerto]

Personally for a boat that has been left out of the water for 6 years in the sun, I would never consider being a part owner.

The deal you are considering means you still have only a half share but going to pay for all of the work. If you then want to buy the other share at a later date, it will be valued on the improved condition that you have paid for, so you will pay 50% of the $12,000 costs . Sorry it is a deal I would never consider. Offer to buy it out right for $10,000 and then do the work to benefit yourself.

Do not forget he has a liability to pay on going storage charges and insurance, besides the existing $3,500 storage charges. He cannot use his boat in its current condition. The outstanding storage points that he is hard up and not in a position to get a top price on an unusable condition. He is not in a strong negociating position, so use it to your advantage. You could always suggest that he could join you to go sailing as a crew, but not an owner. This at least shows he could still go sailing, but at your convenience.

 

[KevinV]

Interesting the 'dream trip down from Florida/US.

That voyage is basically going against the wind.

Trinidad to Florida is with the wind and a much smoother sail.

Depends too the time the voyage down is made.

Absolutely - I always rather assumed that's why the dream stranded - beating to windward, pretty much against the current the whole way, while being constantly on the lookout for squalls isn't everyone's wife's Caribbean dream

 

[V1701]

It honestly sounds to me like he'd actually be getting a good deal if he gave you a half share for nothing on the understanding that you brought the boat up to scratch based on your description of what needs doing, taking care of ongoing maintenance and sharing storage/mooring fees. I would be very wary, he sounds like he does not have a particularly realistic view of things. If you do enter into any sort of agreement with him I would make sure all paperwork is absolutely as it should be...

 

[Rum_Pirate]

It honestly sounds to me like he'd actually be getting a good deal if he gave you a half share for nothing on the understanding that you brought the boat up to scratch based on your description of what needs doing, taking care of ongoing maintenance and sharing storage/mooring fees. I would be very wary, he sounds like he does not have a particularly realistic view of things. If you do enter into any sort of agreement with him I would make sure all paperwork is absolutely as it should be...

ABSOLUTELY !

 

[KompetentKrew]

The boat is never going to be worth what the owner thinks it's worth.

This boat is going to sell at fair value when the owner gets sick of paying the storage fees and finally accepts the psychological "loss" of selling it for less than he dreams it worth.

I wouldn't want to be in a boat share with a previously sole-owner who has an inflated idea of the boat's value.

A shabby boat is never worth the price of a good boat minus the cost of getting it up to scratch, however - that ignores risk; you don't know what problems you might later discover.

Also, he is never going to fairly value the labour you put in, because it's completely invisible to him.

 

[Stemar]

I wouldn't walk away from that. I'd run!

Loads of work and expense, and guess who's looking for someone to take it all on and pay him for the privilege.

"Of course I'll do and pay my share, you can see how keen I am from the work I've done already"

 

[Keith 66]

Dont go there, he is looking for a mug.