Investment Options with Navigare Yachting
Receive up to 12% annual ROI
If you want to cruise around in luxury without having to worry about maintenance, and receive up to 12% annual return on your yacht purchase, or maybe take ownership of a brand new yacht for half the price, then a Yacht Investment and Management plan could be just the ticket.
Ancasta partner, Navigare Yachting, offers a number of comprehensive and lucrative yacht and lifestyle investment programs. Simply invest in a new or used yacht that is then charted out by Navigare Yachting and, depending on the program you choose, receive revenue from the yacht charter or finance the rest of the yacht’s value with the charter income. And if that wasn’t enough, you can also enjoy all of the benefits of the Navigare Holiday Program which allows you to sail up to 12 weeks a year on any of Navigare’s charter yachts all around the world or to book one of their luxury villas in both sunny locations and high quality ski resorts for no extra cost.
Of the Investor Programme boats in their fleet, some 95% are owned by Scandinavian investors. Ancasta’s historic relationship with Beneteau and Lagoon – two of Navigare’s key brands – means that this is a perfect match to bring the Navigare Investor Programme to the UK audience.
With the many options offered by Navigare, a strong and well-reputed service company, they made for a strong and credible provider for Ancasta’s clients who wanted to own a boat but with a solution to cover running costs, or to minimise the initial outlay.
Own a yacht with
zero maintenance and make a return!
Your own yacht in a beautiful location with no maintenance cost, free worldwide holidays for up to seven years AND a guaranteed income…. Sound too good to be true?
So how does it work?
There are three levels of “ownership” within the Navigare programme.
Purchase the boat as an outright investment & receive up to 12% of your yacht purchase price per annum for up to 7 years, guaranteed, or opt for a flexible revenue programme.
A reduced payment of 52%-65% of the value of the boat. This option ties up less capital, but there is no return to the investor. At the end of the term of the agreement, the boat is yours.
SMART LOW FINANCE
Works in a similar way to SMART FINANCE, but the initial investment is as low as 40%, with a delayed staggered final payment of 15%-20% at the end of the investment period.
A Global Service
Navigare Yachting is one of the top four charter companies with over 250 yachts in management worldwide. A friendly Swedish-based company with a strong commercial background.
“We exist to serve our clients with passion in heart, professionalism in operations, and unforgettable sailing experience in mind”
Nine global destinations
Brands available with Navigare
Brands available with Navigare
Seven years cost free maintenance
Benefit from a total solution of up to seven years of cost-free yacht management and turn-key boat usage, zero hassle. All costs are covered, including insurance.
On-line maintenance logbook
On-line maintenance logbook and works programme to view your own yacht’s technical history and follow Navigare’s extensive servicing and winterisation schedules, helping residual values to stay strong, historically 55%-70% of original purchase price.
A detailed phase-out schedule will ensure your yacht is returned to you to an exacting standard at the end of the term.
Extensive holiday program
Unique yacht and resort holiday programme through Navigare’s exclusive concierge service. Applies to yachts, beach and ski resorts and other holiday destinations worldwide.
Choose to sail your own yacht or another from any of Navigare’s worldwide locations at any time throughout the term.
Typical owner benefits amount to 4 – 6 weeks per annum according to season, using a flexible “points” system. You can even use up spare points to enjoy the occasional weekend break.
Holiday programme points
All three levels enjoy the same access to the Navigare Holiday programme, where you get 2 weeks peak season, 2 weeks low season and 4 weeks “last-minute” holiday on the level of boat that you have invested in. You can take these points on your own boat, or swap locations and boats. You can even trade to a bigger or smaller boat, or swap times for better seasons or more weeks on lower seasons. More points can also be bought. And if you want a change, the points can also be used for other holidays including an Alpine ski chalet, a villa in Italy or even a Thai beach resort.
Through the exclusive concierge service, Navigare Yachting takes care of everything, so that the investors can enjoy dream holidays afloat and ashore.
The specifics of the holiday programme are detailed and clearly laid out in a separate Holiday Programme document.
ARE THERE ANY OTHER OPTIONS TO GET INVOLVED
Of course. Navigare regularly offers SHORT TERM, where an investor may take over a pre-owned yacht at any of their locations and still gain the benefits of being a Navigare yacht investor. This is the perfect solution if an investor wants a short-term programme but still with the great returns on the initial investment.
HOW SECURE IS MY INVESTMENT?
The interest of the investor is formally noted on the registry of the yacht in the country of usage. It is therefore impossible for Navigare to pledge, raise a loan or sell the boat, or to change or cancel the registration without the authorisation of the investor. No other creditor can lay claim to the boat as the investor has first claim entitlement The parent company is Swedish and owns 100% of the subsidiaries. All contracts are under Swedish Law.
IF I AM NOT HAPPY WITH THIS ARRANGEMENT, MAY I OWN THE BOAT MYSELF?
A frequently asked question, and Navigare are happy to accommodate this. There are a few small costs of registering the investor as the owner, and these are down to the investor. However, given that the net funds generated are therefore income, this route could open up a greater tax liability. It would be advisable to consult a tax specialist before opting to take this route.
WHAT HAPPENS IF NAVIGARE CEASE TO EXIST?
All agreements are based on the investor receiving the boat either on their own volition (e.g. termination of contracts) or if something happens to Navigare. The priority lien on the boat is very strong, which in fact means that the investor would receive the ownership within a few weeks from the application date. The boat can never be subject to distraint when 110% of the value is pledged to the investor in the case when the investment is made as SMART or SMART LOW, there is an agreement between the investor and the bank who is financing the balance, which gives the investor the right to take over the contract and find another operator.
UNDER THE “FULL FINANCE” OPTION, CAN I OPT TO TAKE THE RISK AND POSSIBLY GO FOR GREATER RETURNS?
Again, not a problem. Navigare will reduce the guarantee return to 4%-8% and agree with you a split percentage of all charters that they take for your boat.
AND IF I WANT A SHORTER AGREEMENT?
You can of course opt for a shorter period of charter. Given that Navigare can get greater income in the earlier years, and discount the latter years, a shorter period of investment will actually be beneficial to you, guaranteeing greater returns. You can ask for this to be built in at the start of your agreement
Alternatively, if, under the FULL FINANCE option, you wish to withdraw your boat during the term of the charter period, you may do so at the end of any one season, and it will be excluded from the following seasons, and you can sail off in your own boat without any further obligations for either party.
CAN I FINANCE MY OWNERSHIP?
Unfortunately not, unless you act as owner, and the guarantee numbers disappear, it then being a split of income deal. However, the SMART and SMART LOW options give you the ability to put down a lower deposit and still own the boat.
DO I GET A CHOICE OF BASES?
Absolutely! And once settled, your boat will remain there, unless a change is agreed mutually.
WILL NAVIGARE MOVE MY BOAT FROM BASE TO BASE, ACCORDING TO THE SEASONS?
Not at all. Some charter companies will ship boats to the Caribbean for the European winter, but Navigare yachts finish their season, and are then serviced and winterised.
HOW DO I KEEP TRACKS ON THE CARE AND SERVICING THAT MY OWN BOAT IS RECEIVING?
Unique to Navigare is a “real time” web portal where you can log in and see all works that have been requested / done on your own boat. Be it a timely engine service or even the smallest of gelcoat repairs, everything is logged, so you not only get to see what is going on with your boat, but you also have a full service log when your boat finishes the charter period with Navigare
For example, Navigare undertake to replace the mainsail and genoa of the yacht at least once during the charter period, albeit not necessarily at the same time.
WHERE DO I STAND TAX-WISE ON MY RETURNS FROM NAVIGARE?
The guaranteed payments by Navigare are split and itemised thus: 1% of the outstanding capital of the loan is paid as interest; the balance of the agreed amount is repayment of the remaining capital amount. You are advised to speak to your own tax adviser, but with this set-up, most investors are only liable to tax on the minimal interest section of the payments.
ARE THERE ANY OTHER COSTS THAT I NEED TO BE AWARE OF?
When an investor charters a boat, the local Navigare base has a tax liability for the VAT. This is split 50% has been agreed with customers authorities to be of the standard VAT rate. In addition, flights and transfers are also the investor’s own cost.
SO WHAT ABOUT INSURANCE, BERTHING, SERVICING, MAINTENANCE COSTS?
All of these are covered by Navigare for the duration of the agreement, as well as registration and Charter Certification. A generous sum is also set aside for maintenance during the charter period. Exacting Swedish standards, and an ethos to keep their boats in a tip-top state is the mantra here, and as a result, the boats operate better, and have a higher residual value at the end of the term. Detailed information of the service plan can be found in the initial sales agreement.
HOW CAN I BE SURE THE GUARANTEED REPAYMENTS COME, IF ANY ISSUE PREVENTS CHARTERS ON THE BOAT?
Navigare also insure against this loss of rent and third-party liability, so as to cover their commitments to their investors. No matter whether the issue is the boat being out of operation, regional politics or climate conditions.
DO I GET TO MAKE ANY CHOICES ON THE SPEC OF MY BOAT?
Whilst Navigare has a proposed “best options” spec for each boat, they are happy to accommodate any specific options that you may have. Such options may add to your initial cost, whilst bringing no incremental return on your investment (e.g. a coloured hull), whereas other options are acceptable, but may reduce your income (e.g. a different cabin layout). There may even be options that you wish to have on your boat, but will only get added to the boat when you use it, and stored at all other times (e.g. Satellite communication). Prior to signing the final agreement, you will have some time with a Technical Manager from Navigare, who will go through all details of the boat to ensure the spec is accurate, full and to your satisfaction.
DOES THAT MEAN I CAN CHOOSE MY OWN LAYOUT?
Absolutely. Your best return will be the Navigare standard, but if you want to elect for more or even less cabins, Navigare will accommodate this, albeit the guaranteed returns may vary.
HOW DOES NAVIGARE FIND ITS CHARTER CUSTOMERS?
As well as its own charter team, Navigare Moments, situated in Sweden, and Navigare Charter Sales, based in Zagreb, Navigare boats are marketed through 1,200 charter agents around the world who act as travel agents for the available boats.
DO I HAVE TO PAY MORE FOR KITTING OUT THE BOAT?
No. The entire inventory is included within the original price of the boat
WHY IS THERE NO DINGHY & OUTBOARD ON THE STANDARD SPEC?
Navigare have found that dinghies & outboards do not last the entire term of the charter, so they are included within the charter spec, but excluded from your initial investment. You have the option to buy the one on your boat however, at the end of the charter term.
WHAT HAPPENS AT THE END OF THE AGREED PERIOD?
At the end of any investment period, the boat is yours and title is transferred to you. If this is to a private EU citizen, VAT will need to be paid on the reduced residual value Calculated based on the original price less the value of your holiday usage, usually 40% of the original price of the boat. Navigare and its partners such as Ancasta, will also broker the boat, should you wish to sell it on at the end of the agreement.
In certain circumstances, Navigare may also even offer an optional period of 1-4 years, but there is no compulsion to take this.
Should you wish to continue, Navigare will take your boat in part-exchange for a replacement boat, and agree with you a new term for a new boat. There are many investors already on their second and even third boats within the Navigare programme, some terms even cut short by mutual agreement, where the investor has decided to upgrade his boat during the first term.
Navigare have a “phase out” checklist prior to handover at the end of the charter period, so you know at the outset that your boat is coming back to you to a given standard.
WHAT IS THE LIKELY VALUE OF MY BOAT AT THE END OF THE AGREED CHARTER PERIOD?
Such figures are difficult to determine in advance, but Navigare sales tend to average out at 55% of the original purchase / investment price.