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Alternative Investments
Wednesday, July 29, 2015 - 02:16
Floating an idea

Investments in tried-and-tested hard currency assets such as boats should be considered as an integral part of a well-balanced investment portfolio. These yachts are not only a low risk asset, but also a feasible alternative for both South African as well as foreign investors as they foster hard currency returns.

Global yacht charter companies such as The Moorings – with over 40 years of existence – offer yacht ownership programmes that pay a 9% p.a guaranteed income for five years plus usage. This way you pay only a certain percentage of the value of the boat, thus owning a yacht has never been so lucrative.
“Our owners enjoy this guaranteed income regardless of charter activity, as well as zero operating expenses, worry-free maintenance and extensive use of their yachts and sister ships worldwide.” shares Daniel Snyman, regional sales manager (Africa, Mauritius & Seychelles) of The Moorings Private Sales and Moorings & Sunsail Charter Yacht Ownership.
According to BUC’s Used Boat Price Guide boats retain up to 80% of their capital value. It’s also a legal option for investors to externalise wealth and own a tangible movable asset that can be placed in a charter market, for which there is known demand
Founder and CEO of The Botsford Group, a US boutique financial planning firm, who is also the author of The Big Retirement Risk: Running Out of Money Before You Run Out of Time believes that lifestyle investing is the new path to successful retirement. Lifestyle investments provide an income, either now or in the future, that’s safe, predictable or guaranteed. These include but not limited to real estate investment trusts, equipment leasing programmes or dividends from stocks.
The growth of the yachting industry has introduced new ways of owning a boat. The Moorings, for example, offers yacht ownership programmes that provide yacht owners fixed revenue. The programmes usually last for about five years with easy options to extend, attractive trade-in opportunities and worldwide brokerage support, making the exit process stress free.
The Moorings, that has pooled its expertise with South African boat builders Robertson and Caine to design a line of cruising catamarans, is a serious competitor in the international catamaran market.
Investors should “treat boat buying with care” adds Snyman. “Buy a boat that is made by a renowned boat builder, and always choose a good design to make sure you can sell the boat quickly when you need to.” he shares.
Owners can also sail to worldwide destinations, sailing school courses if desired, and have a dedicated Owner Care team on hand for all bookings,” Snyman concludes.
These boats are also available for private purchase through Leopard Catamarans -southafrica@moorings.com. You can also contact them on (021) 200 1825 for more information or visit www.leopardcatamarans.com.
 

Copyright © Insurance Times and Investments® Vol:28.7 1st July, 2015
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