There are many ways to build wealth and lead a comfortable life in this day and age. Investing in property is one way to do it, as is developing a property, or putting your money into the stock market and using fin-tech apps to slowly build a share portfolio. Or, there are even good old fashioned term deposit accounts. But there are also new and innovative ways of earning passive income as well. Today in this helpful article we’re going to discuss boat chartering, and how by sharing an investment boat that is hired out for charter you can earn some serious income.
What Are Charter Boats?
Charter boats are essentially boats that are available for hire. People on holiday in coastal areas often like to get out on the ocean, but not everyone owns a boat. So they look to charter or hire a boat to go fishing, host a party or just go for a pleasure cruise. If you can afford it, you could buy a boat outright and either manage the chartering yourself or hire a manager to do it for you. Or, you could split the purchase with some friends or relatives so that you each own a stake and earn some money. And the bonus is that you now own your boat that’s available to you any time of year. If you want to use it, simply don’t have it available for charter on those days! What a perfect investment.
How Much Will You Earn?
A larger boat with more features will attract a higher price tag to both buy and to rent out. As a rule of thumb though, owning a charter boat will likely earn you a gross annual income of between $100,000 to $180,00 thousand. Keep in mind that a percentage of that income will have to go to management fees (unless you manage it yourself), insurance, maintenance and tax. You’ll likely net between $35,000 to $60, 000 which is still a significant amount of passive income.
What Type of Boat to Buy
This is a tough decision and one only you can make. It pays to be informed, however. An older boat might be available for a cheaper price but it may end up costing you more in maintenance as the engine, hull and other parts of the vessel are older. A newer boat will cost less in maintenance but will attract a higher insurance premium. At the end of the day, you’ll go with what you can afford but be aware of the costs involved in your decision.
Advertising and Marketing
It’s not enough to just hire a boat, hire a management company or person and wish for the best. You’re going to need to actively promote and market your craft. Keep in mind that you’re not going to be the only boat owner hiring out a vessel for charter, especially in busy tourist destinations. Clever marketing and advertising, while costing some money, will set you aside from the competition.
A Chartering Conclusion
Owning a charter boat is a great way to invest in your future and earn some passive income. You can either purchase one outright or share the cost, and the income, with friends or family. You’ll net a decent amount of income per year, after all the associated costs. The type of boat you choose will depend on your budget and personal preference, although keep in mind there will still be costs associated with both new and older craft. Finally, don’t neglect your marketing and advertising as you need to keep a competitive edge in this business. Good luck!