Buying a Boat – Getting the Right Advice
See a boat you like? Fall in love with it at first sight? Immediately reach for your wallet? That’s all fine – however, you want to be sure that it is a boat that you will continue to be in love with even after that first flush of romance. You need to ensure that the boat continues to provide fun, pleasure and thrills for many years to come. That’s why you should take independent professional advice to help you get the best boat and have the best value for your money. Let’s consider the need for, and some sources of, advice. Why is advice needed? You may very well be experienced in your profession or business. Possibly used to negotiating or being part of a project. Maybe you have technical skills. These are useful. However, we believe that buying a boat is simply more complicated. Think of a boat as a combination of a house, a car, and one that (hopefully!) floats on the water. Multiply those complexities together. This is not a problem in itself, provided that you get the right advice to help you make the right decisions. Sources of advice There are of course multiple sources of advice you can use. The internet provides a great variety of advice. Often, however, you need to know what questions to ask, where to look, who to believe. The internet can be useful; but it can also provide conflicting and unreliable advice. Frankly, I have seen some advice on the internet that makes me cringe as the advice has simply been wrong or even dangerous! Surveyors are an essential and important part of boat buying. However, you need to know how to choose a good surveyor, understand the different types of surveyors and surveys, and how to make best use of surveyors to actually save you money. If you are looking at a boat that has had a previous survey done – maybe a year or two ago – we advise you NOT to rely on it for several reasons. Firstly, the survey is the property of the vendor, not you, so the surveyor owes zero responsibility to you. Next, some issues could have arisen since the survey. Also, if you have been given the survey, then you have been informed of any issues identified, and so you have no come back or room for negotiation on those issues. In a nutshell – you need to get your own survey done. Go Earth can recommend the types of survey(s) you need and assist in finding a suitable surveyor. Brokers are of course often ready to be helpful and give advice. However, please remember that their legal, contractual relationship is with the seller, not you as the (potential) buyer. Also, they – naturally enough – want to sell you a boat on their books. That’s what their job is. Further, if you ask the broker for information, they may simply be unable to give you accurate or full information because they may not know all the boats on their books. Also, it has been known for the seller to forget to tell the broker about significant issues with a boat! Solicitors may be needed for large or complex transactions. However, most solicitors are not specialists in marine matters. Your personal solicitor may, therefore, not be the most appropriate one for a boat purchase. We can help you find a specialist marine solicitor. Go Earth is not associated with any boat broker or boat manufacturer. We are independent. Our mission is to help boaters through all the stages of buying a boat. To do this we provide a variety of services. We can act as your professional advisor and procurement agent. The professional advisory element is typically focussed around requirement specification and identifying makes / models of boats that fit your requirements. Note that we are starting from ‘what are your requirements?’; not from ‘that’s a nice-looking boat, let’s buy it’! Of course, it is not always easy to define your requirements; and so we can help with that process. The procurement agent does what any procurement agent in any industry does – tries to get you the best product at the lowest possible price. Go Earth is an example of a procurement agent, and provides a range of services to help you get the right boat at the best (i.e. lowest) price. While of course nobody is going to give a boat away, a procurement agent can negotiate on your behalf to ensure that you buy at the very lowest viable price. In summary, our services include boat search, boat pre-visits, and perhaps most importantly boat negotiation services. We always recognise that it is your money, and so we will do as little or as much as you want. Our Boats for Sale Listing Explore our select collection of boats! Click Here
Buying a Superyacht
For many people, buying a superyacht is the culmination of a dream. For others, it must remain just that – a dream. This article is intended to help you – either in reality or in your dreams! Definition It is difficult to define what is meant by ‘superyacht’. You can define it in many ways – by size, by the possible need for crew, by cost, by design. Although this article focusses on superyachts, many of the points are equally relevant to lower value transactions. Why buying a superyacht is different There are many more factors to consider when buying a superyacht compared to a smaller boat. These factors can be practical, logistical, financial, location, size, design (interior and technical), self-drive and/or crewed, foreign exchange, regulations in other countries. None of these are problems in themselves – provided that you do it properly, with proper consideration and professional advice. A project The key thing is to realise that buying a superyacht must be treated as a project, not a simple transaction. The complexities of purchase exceed those of even a high-end car or property. If it helps, think of your superyacht as a property combined with a high-powered car that floats and can move between multiple locations and jurisdictions; and then multiply those complexities together. Put simply, do it right and you will end up with a superb, enjoyable, luxurious, asset. Alternatively, buy it on a whim, and spend time and money regretting it. So – how do you manage the purchase process successfully to maximise the pleasure and minimise the cost and your time? At Go Earth, we break the process down into multiple stages, which at a very high level are: • Initial requirements specification• Boat search (refining the requirements if necessary)• Boat negotiation• Validation (survey, legalities, finance)• Completion Initial requirements specification To state the obvious, think about what you want. Initially, perhaps you only have a general idea. This may be an iterative process, where you define and refine your exact requirements as you go along. Some things to think about include: What uses will you make of the boat? Will you want to stay on board? If so, just for weekends or for longer? How far will you want to travel? Will you want to work on board? How many friends and family will you want to accommodate? Do you want a luxury machine or a speed machine or perhaps both? What engines – or sails – do you need? How about the galley? What electronic systems are needed? Does the keel type matter? What about contractual matters when purchasing? What types of surveys do you need? What is viable within your budget? Are you going to charter it out? Will it need coding? It’s your money, and you want to spend it on what suits you. A professional buyer’s agent (yes, such as Go Earth!) can assist in all this. Boat search – refining the requirements if necessary This can also be an iterative process. You search (possibly, we hope, with the help of Go Earth), find a number of superyachts that seem to fit the bill. The process may highlight features that you had not thought about. Adjust your requirements accordingly. Hopefully you then end up with a ‘long list’ which can be whittled down to a ‘short list’ of serious contenders. A key initial question is ‘new or used?’. Whilst a new yacht may seem attractive, you need to be aware of the pitfalls. Firstly, if it is a new build, (as opposed to a boat in stock), then you will be spending a lot of money for a significant period of time before you can even begin to enjoy your purchase. There is also the risk of the yard going into liquidation mid-build. It does happen – and, while rare, happens more frequently than is desirable. Of course, the contract might provide you with a degree of protection – but even if you get ownership of the half-built hull, that is of limited consolation. The big advantage of a new build is of course that it is built to your taste and specification. The degree of customisation can vary. Most yards offer a certain degree of customisation, while others will take on a semi-custom or completely bespoke project. Ironically, the advantage of a used boat is that you know exactly what you are getting – or at least you do after a comprehensive survey and sea trial. Also, just like cars, a used vessel can be significantly better value than a new one. Let someone else take the depreciation hit. Of course, if you then want to make changes to the décor, you can do so – just ensure that you have budgeted for this. Industry knowledge is essential when looking for your first, or next, superyacht. Although many superyachts are advertised widely, some are not for personal or business reasons. In the superyacht world, confidentiality is essential. Certainly, Go Earth, through its bespoke boat search service, can assist you in this search process. If you are ‘time-poor’, a good buyer’s agent can pre-visit a selection of boats for you, take numerous photographs, and even provide a virtual reality walk through of the superyacht for you. Whilst such activities are not cheap, you may be making better use of your time running your business; and only personally visiting a short list of those vessels that appear to suit you and that you like the look of. Boat negotiation Price negotiation is an essential part of the process. Brokers do prefer to be able to tie you down to a price as soon as they can. This is not surprising. It’s their job, after all. Negotiation can become very emotional, especially considering the sums involved. Buyer’s agents such as Go Earth can provide a buffer and enable negotiations to be conducted so that that you end up with the best viable deal. Brokers like to ‘qualify’ potential buyers. Is he/she a serious
Moving On Up (With Apologies to M People!)
Moving from this… …to this There comes a time in the life of every boater when they decide it is time for a change. You have had your boat – and it’s been great while it lasted. However, now you may want a faster, younger or bigger (or possibly smaller) model. Or perhaps simply move from sail to power, or power to sail. Why move? Your motives may be many. Possibly you are no longer as active as you once were and now is the time to move from sail to power. Maybe you bought your first boat with limited knowledge and now have a better view of what exactly suits you. It could be that your first boat was simply a trial – to see if you liked boating – and you have now decided that you do and want something better (= more expensive!). Possibly the ‘joys of berthing’ have convinced you that you now need a boat with greater and easier manoeuvrability in crowded marinas using features such as a bow thruster, twin engines, joystick control and automatic fenders. Perhaps you want to cash in part of your pension, have just sold your business, have won the lottery or received a great inheritance. Whatever your source of finance, you want to enjoy the benefits of it. Making the move – sell and buy, or buy and sell? The first question is – do you have to sell your current boat first – or can you buy your next boat without having sold your first one? This is primarily a question of finance. If you have the funds, there is no need to wait until your current boat is sold. However, don’t forget that you then have expenses on two boats, not one, until your current boat is sold. Of course, you could try and do a part-exchange. This might work for you – however part-exchanging is far more problematic than part-exchanging a car. If it’s a private sale and purchase, you are very unlikely to find someone who has a boat that you want and who also wants the boat you currently have. If it’s via a broker, then usually the broker would have to take your boat into stock. Most brokers are reluctant to do this, as their business model is a broking one, unlike most motor traders. They rarely take into stock and sell on their own behalf. For those brokers that are willing to take boats into stock, they are often only willing to do so if the boat you are buying is of much higher value than the one you are selling. Also, you won’t be surprised to hear, they often don’t give great prices for boats they buy. Therefore, you usually get best value by separating out the selling part and the buying part of getting your next boat. Making the move – what do you want, really really want? (with apologies to The Spice Girls!) Next, consider exactly why you are making the move. If it is for space on board – then this is the most common reason why people move. However, there is an unfortunate rule of thumb about this – the price of a boat is (very roughly) proportional to the cube of its length, everything else being equal. So – to move from, say a 25 footer to a 50 footer, this doesn’t just double the cost – it multiplies it by a factor of (maybe) about 8 times. This ‘cubing rule’ is logical if you think about it – you are increasing not just the length, but also the beam and the height. Bottom line – if you want to move to something significantly bigger, you have to be prepared to spend the money. However, at Go Earth our speciality is boat procurement, so we can help you save at least a proportion of that extra cash. That’s what we do. Some factors to take into account include: Budget – capital expenditure and ongoing expenses Will you be travelling further afield – in which case, this impacts: Boat size and ocean-going capability Storage requirements on board Specialist kit, such as water-makers Boat category Insurance Communications – such as satellite radios The wishes, experience and capabilities of your crew Internet access- such as the need for your daily fix of Facebook? For a superyacht, you may not be able to get into some local marinas and harbours. So you would anchor off and use a tender to get ashore. You would therefore need to budget for a decent tender – one that will get you comfortably ashore even if the weather is a bit ‘dodgy’. You may be using a crew for the first time. Getting good advice WHERE TO GET ADVICE Having had a boat already, you already know a bit about boating. However, if you are moving up, you may be moving into a different league, with different issues, different technologies, a different mix of good and not-so-good brands with different makes and models. In particular, you may be spending more than you did on your current boat. Indeed, it is not uncommon for our clients to spend substantially more on their next boat than their current one. You need to get it right. At Go Earth, we argue that you still need unbiased advice from a trusted representative that is acting on your behalf – on the buyers behalf, not the sellers. This is a service that we provide. When we first started the company, we expected the majority of our clients to be people buying their first boat. In fact, we have had roughly a 60/40 split in favour of people buying their second or third or even fourth boat. We have often heard the comment “we wish that we had known about you when we bought our first boat!”. Our initial consultations are free – that is, free of cost, free of hassle, free of any commitment. We have
Viewing a Boat For Sale
You are looking for your first, or your next boat. Let’s assume that you have narrowed your boat search down to a few boats that might be suitable. Now we get to the exciting bit. Viewing potential purchases. All you need to do now is view them, and then make a decision. Sounds easy? Sadly, no it’s not. This article is intended to give you a few hints to help you through this potential minefield so that you (eventually) get the right boat for you. Create the short-list The typical purchase process involves doing a boat search (something that Go Earth can assist with) by trawling through a variety of sources. Eventually, you may have a short-list. How many boats should be on your short-list? You may think that one or two are sufficient. After all, you have read the particulars carefully and may have spoken to the broker who assured you that the boat was excellent. The reality is that many of the boats simply turn out to be very unsuitable. What could go wrong? What should you look for? Possible issues to identify on the viewing You need to view each boat with open eyes. It’s the ‘head vs heart’ syndrome. Definitely do not set your heart on a boat before you have viewed it and thought about it. There are a few things that you can do to ensure that your viewings are not a waste of time. Take your camera with you and photograph all aspects of the boat. This is ideally a good digital SLR if you have one. Fit it with a wide-angle lens, so that you can see more in each photo. It is also handy to have a telephoto lens, so that you can take photos from different angles and distances. You should also take a good torch or use the flash on your mobile phone, and ideally bounce the flash off a white or pale surface. This will help you see the darker areas of the boat (such as in the engine bay), without sharp shadows hiding possibly important details. A mobile phone (in addition to your main camera) can be pushed into recesses that a full-size camera cannot reach. Keep a careful record of which photos belong to which boat. Make copious notes during the visit. The whole boat should be examined for obvious signs of damage or problems. For example, we viewed a boat for a client where the area where the mast went through the coach roof had a repair. (See the photos.) That by itself might not have been a cause for concern. However, the repair had been badly done and most importantly, the repair itself seemed to have cracked again, possibly suggesting continuing stress at that point. On further investigation, we noted a jagged line of gelcoat cracking along the starboard side of the coach roof. Again, there had been attempts to repair this. (See the further photos.) The point is that this investigation suggested the possibility of a major structural event at some time, such as a de-masting causing significant damage. We recommended that our client should not touch this boat with the proverbial bargepole. One issue that often worries people is ‘osmosis’. This is frankly very difficult to identify on your visit. Even the ‘worst case’ – stage 3 osmosis – will typically only show blisters below the waterline. If the boat is out of the water, then look along the line of the hull. Ideally with the sun in line with the bow-stern, so that it will cast shadows on any blisters. This is really a job for the surveyor. One useful tool to use when viewing a boat is your nose! If it smells damp and dank, that may be a warning sign. Of course, when you find potential issues, you need to decide how serious they really are. Some issues are simply what you must realistically expect on an older boat. Others are easily fixed. We viewed another boat for a client that looked like it had a coral reef growing off its hull (see the photo). In this case, it was simply that the owners had not used the boat and the antifouling had worn off. The boat itself was actually perfectly fine, with no issues with the hull, and no signs of osmosis. Once it had been cleaned off and anti-fouled, it looked almost like new. Crack near the mast Gelcoat cracking along the coach roof Continuing cracking with a poor repair Coral reef growing off a boat? Time-poor? How many on the short-list? Pre-view service? It is a truth universally acknowledged (with apologies to Jane Austen), that most boats you visit will be entirely unsuitable. We see a lot of boats on behalf of clients and we think that about 75% should be rejected; and of the remainder only about half of them will really hit the mark. In other words, as a rough rule of thumb, only about 1 in 8 will be really suitable. It follows that if you want to have a couple of real possible candidates to choose from, you need to have, on average, some 16 boats on this initial ‘short’ list. (Feel free to check the maths!). If you have the time, like visiting boats, and have the expertise to identify issues on a first visit, then this is not really a problem for you. On the other hand, if you are ‘time-poor’, are better spending your time running your business or career, don’t like travelling far and wide, or wish to reduce the risk of missing issues with a boat, then you might want to consider using an agent to do pre-viewing. We (Go Earth) provide a ‘pre-view’ service where we will visit a number of boats on your behalf, and provide a report with many photos so that you only need to visit boats that are at least potentially viable. This service is available in the UK and globally.
