Investment Opportunities

From time to time we are interested in adding a boat to our very exclusive range.

Now is one such time. We are going to add two power catamarans for those folk, for whom Cats are the only way to travel. We are interested in 36 and 42 foot vessels and have a view as to brand and set up.

How does it work

Basically the investor buys a boat, usually fully financed. We supply a recommended specification which you are free to add to, or vary. The investor enters into an agreement with us for five years whereby we agree to use our best endeavours to charter the vessel at suitable rates. We look after the boat on your behalf, ensuring it is kept clean, well serviced and sound.

Inevitably a boat on charter with us is better serviced and maintained than the majority of private boats.

As the owner you obviously have use of the boat, usually for twenty one days per year.

What are the returns*

On a purely cash basis the net return after all outgoings is around 9%. Compare this to real estate which returns a gross 5%, nett 1-2% excluding appreciation. With appreciation over the last twenty years real estate has averaged 8%,

The real benefit though is when you negative gear the boat against other income. The depreciation schedules when applied against the top tax rates can provide an effective return of up to 16%.

Finally the retained value of a large boat after five years is traditionally around 70 – 80% of its original purchase price.

*Disclaimer: The above figures are based on our own results, the published price lists of opposition companies and the advertised and sale price of similar boats over the past months. There is no guarantee that these returns will project into the future and potential investors should seek independent advice.

How do I get more information

Contact us, email info@coral-reef.com.au or phone Ken on 1800 4444 15.

We will arrange for you to have all the figures, recommend some builders to talk to and generally ensure you have all the information you need for you and your accountant to make a decision.

Literally hundreds of large boats around Australia are being managed in the charter business. Most investors repeat the exercise and have had a number of boats. Others have multiple vessels, which indicate the feasibility of this type of investment.