Making money in the Med: utopia ??

[MarkNL]

Dear forumites,

Allow me to share a very short introduction of myself: early 50's, self employed, several european machinery dealers buy forestry equipment for resell in their countries, from 5 brands that I import from USA and Canada into EU.

I currently own two 25 footers, one is a converted lifeboat near my hometown in the Netherlands, 7,3 meters bathtub with seating for up to 15 pax , engine is a 29 hp Yanmar, built by Fassmer Germany in early 80s. Generates some revenue through barqo.com, approx 150 % of its yearly port fees at € 1400.

The other boat is an center console Robalo, 25 feet of simple pleasure, engine is a 225 hp Honda, in dry storage near St. Maxime in SoF. Only used 3 weeks a year for private holidays.

This is the idea:

Larger boats in the 50 -60 ft size range are depreciating to extreme levels. At the same time, serious rental amounts are being asked and spent on seaside view appartments. The idea ... if you put a decent 50-60 footer from early nineties in a Med port, will it become a realistic rental business (with customers coming in through AirBnB or getmyboat.com, or other charter agent...) for 4, or 6 or 8 people for a week ... with the option of adding a "captain on demand" for a day trip ? And have some fun with just the tender for "watersports experience"....

Would you consider a "static yacht in a port" as a realistic / interesting / fun place to be for a week ?

The big question... is this cost breakdown anywhere near reality ??

• 2 years cost:
• port fees 12.000 x 2 € 24.000
• crane in / out once € 3.000
• maintenance of engines € 3.000
• general maintenance € 4.000
• cleaning 25 x 200 € 5000
• insurance € 3000
• depreciation 5% per year € 5000
• 2 years total cost € 47.000

Rental revenue per week € 3.500 ... does this sound realistic ?
7 weeks per year would be € 24.500 per year
14 weeks in 2 years is break even....

May I have your votes please ?



Technema 58, asking price € 120.000


19 x 5 meter makes an acceptable appartment....

 

[julians]

I'm guessing that mooring charges for that size boat will be more than your estimate in a popular/well located marina,but others will know with more accuracy. In Mallorca you're probably looking at double your estimated cost.

 

[MarkNL]

https://www.leboncoin.fr/nautisme/1535747487.htm/

This is Leboncoin.fr, just like Ebay. € 25k asking price, for 2 seasons left in St Raphael, for a 16 m x 5 meter berth.

So a 58 ft will not fit, looks like we might need to downsize a bit to approx. 50 ft...

or go to a less desirable spot, which will harm the rental revenues ??

 

[Nigelpickin]

Buy an apartment - rent that out - it will appreciate, if you buy well.

Air bnb your house while you charter for a couple of weeks a year.

Job done

 

[jrudge]

In a word. No !

A villa is cheaper and nicer. The odd night on beds on board yes. Good rental. No

 

[Portofino]

Have you considered what visability renting out something in Fr ( boat / property ) will have on a fiscal point of view ?
If so will you be comfortable getting tangled up with the Fr fiscal system.

I don’t think you can accept money for this “business “and be invisible to the Fr tax system at the same time - and all that that entails .

 

[markc]

https://www.leboncoin.fr/nautisme/1535747487.htm/

This is Leboncoin.fr, just like Ebay. € 25k asking price, for 2 seasons left in St Raphael, for a 16 m x 5 meter berth.

So a 58 ft will not fit, looks like we might need to downsize a bit to approx. 50 ft...

I have that size berth in the same marina, and you might just squeeze it on (we're just under 17m x 5m). Also, on top of the berth price you will need to add 3600 euros per year for the port fees. Also, you are able to buy a 10 year lease extension for 94,000 euros.

 

[mcanderson]

One word - madness!

I think your aspirational pricing is well above what you will actually get. We have a pretty popular apartment that we rent on the Côte d’Azur and in high season we ask and get €180 a night.

Don’t under estimate your running costs. The fit out alone for rental activity will add up.

Also who will do you change overs / be on call when guests have issues?

Also the local authorities will want to know all about your rental activity. We do all ours above board so that when the authorities crack down on the casual rental market we can show that ours is pukka. You will be amazed at some of the French rules and regulations.

Buy an apartment with a sea view or in an excellent location. You will get a much better return.

 

[MapisM]

In a word. No!

+1.
Just for your reference, the friends of mine who bought my previous boat are doing the opposite, and so far the idea is working very nicely for them.
During the peak of the summer, when the demand exceeds the capacity of hotels and B&B, they offer their holiday home for rent, and they move onboard.
Boats are intrinsically designed to waste money (possibly/hopefully also enjoying them a bit, in the process... ), not to make it.

 

[davidej]

I think it is only a question of time before marinas get wise to this and ban boats being used as Air bNbs - like the landlords of apartment blocks are doing.

The constant comings and goings - noise, partying etc- of the "guests" are causing increasing problems for the "normal" marina residents.

 

[MarkNL]

Boats are intrinsically designed to waste money (possibly/hopefully also enjoying them a bit, in the process... ), not to make it.

I love this quote !!

Thanks forum for all your feedback.