38-43 Match_MM168-US_Match 11/11/14 14:14 Page38

O PINION When purchasing your catamaran, All information gathered by Philippe Echelle is it better to go for co-ownership or Charter?

By Frédéric Moreau, Commercial Director of Dream Yacht Charter

here are many people who dream of owning their own multihull. However, it isn't always Tplain sailing! “Before they buy a boat, most amateurs have an unrealizable idea of how it will all pan out: sailing whenever they like, hugging the coastline, ancho- ring wherever, and all this together with family and friends. For many people there soon comes disap- pointment, as the reality is often very different! Working lives, the kids' schooling and all sorts of family responsibilities combine to burst the bubble, and the actual time on the water starts to look dis- proportionate against all the fixed costs which are non-negotiable (a slip in a marina, insurance, upkeep, repairs, taxes...). Just about everyone ter. Amateur sailors (former owners and charterers) the investor doesn't show a profit. Another advan- THE MULTIHULL HEAD TO HEAD HEAD TO THE MULTIHULL agrees that most boats spend more time sitting at are looking more and more at investing in a char- tage of this type of deal is that the investor has the the dock and lining the pockets of the company ter, not because they want to own a boat, but chance to sail for between 8 and 12 weeks a year that runs it, than actually sailing! It's not unusual because they want to sail without all the hassle of on his boat, or on something similar in any of the therefore to come across disappointed owners who conventional ownership. You can sail in the Tropics company's bases (at Dream Yacht Charter there in winter and spend the summer in the Med for only use their boat for three weeks a year! When are 34 bases) such as Cuba, the Seychelles, the the kids become teenagers they don't want to sail example. A managed charter package is all about buying into a state of mind where you are free to Caribbean, Thailand, Tahiti, Greece, Turkey, with mum and dad anymore, maybe the spouse is Croatia... Many people turn to charter after consi- sick of the same harbors and anchorages... These sail and discover as you choose. You have the dering a co-purchase, but then get cold feet after are probably some of the reasons that some freedom to go where you wish depending on how owners sell their boats and start looking into char- you feel and the time you have available. There's worrying about the potential pitfalls of managing a no pressure. Charter joint ownership venture with a partner. Even when contracts allow investors they're shared, all the issues linked to conventional to sail for the lowest ownership still apply: the fixed costs still need cost, as all the fixed paying, and the maintenance needs to be followed costs (port, comprehen- up and organized! Sailing dates need to be shared sive insurance, mainte- out between the owners (not always easy dealing nance costs) are all paid with each other’s' sensibilities). These projects can for by the charter com- pany. In most cases, the also sometimes end in disagreement (usually linked investor receives a gua- to all the costs) and the owners will end up sailing ranteed net income, to the same places, close to the home port, with paid monthly, and not only retired people able to take full advantage. usually taxable, as it is Charter contracts are therefore the most logical linked to a lease-pur- way for a sailor who is still working and who has chase with a purchase school age children or students, to invest in and to option, meaning that self-finance his boat without any hassle!

38 38-43 Match_MM168-US_Match 11/11/14 14:14 Page39

The Multihull Head to Head is an open forum where those involved in the leisure catamaran industry can freely express their opinions. For this head to head we asked for the views of some happy co-owners and a managed rental specialist to outline how each option stacks up in terms of cost effectiveness... For Co-ownership

Is it possible to share a life project which is as personal as a year's sabbatical on a multihull? Here are the views of Matthieu Breton and André Motte, 2 brothers in law who set out with their families. They lived their dream after buying a second hand Athena 38 together in the Pacific!

Co-Ownership Can Work! The choice of the boat depends especially upon the project. The way it will be financed is also very closely linked. For us it all seemed so obvious. My brother in law and I had the same dream: to go to French Polynesia for a “year. We had similar families, (2 adults and 3 children) and the same idea with the possibility of realizing our dream one after the other. We therefore decided to share the boat purchase, to put all the running costs for the two years into a kitty, and to share the money 50/50 when the boat was sold. My brother in law had cherished the idea for a long time but would have struggled to finance it alone; I managed to make a decision quickly and jump onboard the project. We decided on the type of boat: it would be a catamaran! Even without any previous multihull experience, it was the only Co-Ownership? Forget It! type which seemed to fulfill all our needs: space for the children (schooling had to continue), the ability to welcome friends' visits, and most impor- He always books the best weekends. He doesn't know how to look after it. tantly to be easy to sell on. It's almost impossible to buy a house in There's always something broken when it's my turn, and he drinks all my Polynesia. A number of outsiders (or "Popas"), especially teachers who booze... Obviously, on my own and with an ambitious plan (to spend a have been transferred there, buy boats to live in. We felt that a catamaran year“ in Polynesia with 3 kids!), I could only afford an old boat. That's where fitted these criteria, and we bought a 7 year old Athena 38 from a rental this story all began: combine our two sabbatical years (myself and my bro- company and kitted it out for our adventures (we changed the motors, the ther in law) to enter into the co-ownership of a boat on the other side of solar panel gantry and added a nice dinghy with a 15HP motor...) Both the world! That should spice up family Christmases for the next 20 years. families had fantastic voyages, despite a mast collapse between the We exchanged hundreds of emails before selecting our boat: I didn't want Gambiers and the Tuamotus which meant that each family had to navigate to spend too much so as to avoid too big a loss when it came to reselling, without a mast for three months (at the end of our trip and the start of my but Mathieu wanted something more recent and therefore more expensive. brother in law’s!). Co-ownership was the best solution for us. We sold the Once in situ we visited our respective number one choices. Result: Mathieu boat after the two years (to some non-sailing Popas!). Overall it was a 1, Me 0. What transpired proved him right: choose a recent, ex-rental multi- good financial operation, with just €30k to cover. That's €15k each for a hull, get it surveyed, take out good insurance, prepare it and then sell it on year's catamaraning in Polynesia! I'd do it again as soon as I could, and at a good price. Our budgeting was as simple as could be: a lump sum to would again do a co-ownership with my brother in law! start with, and then an Excel spreadsheet for all the subsequent expenses, Mathieu Breton with one eye on the potential resale value! The mast collapsed on Mathieu and family after 9 months. Some people said "You must have it in for your brother in law?" It's true that this occurred just two months before we set off on the trip of a lifetime! It could well have happened 3 months later and we would have had to manage the situation. We also had our fair share of issues (diesel leak, broken windlass, cooling pump). We even struck a coral head in the Tuamotus, leaving behind a piece of rudder. There was no point moaning; all sailors know that when cruising things get broken and they have to be repaired! In conclusion, I'd say that co-ownership was the best solution, and we were able to take advantage of a much better boat than we could have done alone, and had two wonderful family expe- riences by joining forces and limiting the overall cost with a quick resale. I recommend this solution wholeheartedly, although don't suggest a co- ownership on a weekend boat, even with my brother in law. I'm not sure that I'd accept! André Motte 39