Yachting lifestyle changes with the seasons
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TwitterWhether it's a holiday in the Mediterranean, cruising the Caribbean or entertaining at anchor in your favorite port-of-call, the pleasures of the yachting lifestyle are undeniable. It's a lifestyle and an industry that changes with the seasons, and some recent developments have made yachting more accessible for those whose sense of adventure is also tempered by a common sense approach.
Every premier athlete knows there's always the pro behind the pro. Consulting with the right professional - a trusted captain, an experienced owner, a reputable yacht broker or an established boat builder - is the smart play. There are even a few superstars like Ward Setzer who will take your call.
One of the world's most sought-after yacht designers, Setzer is a preeminent expert on the yachting lifestyle. He's a multiple winner at the International Superyachts Society Design Awards and his vessels have graced the covers of every major yachting magazine in the world.
Based in Cary, N.C., Setzer Design Group works with highly discerning clients and the leading shipyards around the world. As both a naval architect and master yacht stylist, Setzer can not only draw a boat but build one, creating seaworthy vessels that are one-of-a-kind works of art.
"The definition of a yacht has changed," said Setzer. "We typically distinguish yachts as vessels 50 feet and larger, but today there are production boats available up to 80 feet that owners can run themselves, and vessels under 50 feet that assert themselves into the yacht category with exceptional levels of finish and luxury. The choices can be overwhelming."
Today, approximately 6,000 yachts are under active commission around the world. The 100 or so new yachts launched this year will range in price from around $6 million for an 80' vessel to an average of $30 million for a 150' superyacht. Advances in design and technology have elevated on-board living to new levels of comfort, affording every amenity the finest home has to offer, plus the ultimate in privacy.
"Owners spend at least an additional 10 percent of the purchase price in annual maintenance and operating costs, plus captain, crew, fuel and supplies," Setzer notes. "To own a boat and gain pleasure from it is easy, but to own a yacht and experience the enjoyment imagined from the dock requires some careful planning."
Setzer's top-line advice: keep it real. "Be realistic about how you expect to use and enjoy your yacht," he said. "There is a boat for every buyer and yet not for every sea, meaning where you go, what the seas are like, the islands and anchorages, cruising grounds, docking and fuel supplies, winds and waves, fishing and diving, all factor into making the best decision for your needs and ultimate enjoyment.
"Also, it's important to determine how much time you'll have to go yachting and at what pace you like to move - 12 knots or 30 knots across water are two distinctly different modes of travel. If you can afford crew then you can afford to send the yacht on to an island destination and it will be waiting there for you to fly in and enjoy. If you like to travel with the yacht then you need to have the time available to cover 100 miles in a day. For some, it's the best part of the experience."
While Setzer is best known for designing mega-yachts (his company claims to have more yachts on the water at 100 feet and above than any firm in the U.S.) he has delved recently into the realm of micro-yachts, designing for such iconic brands as Hinckley and Concorde Marine, as well as developing Impulse Yachts, his own premium product line.
For first-timers, Setzer offers this checklist: First, write down your goals for what you hope to achieve by owning a yacht. How many days will you use it each year? Where will it be based? How many people does it need to sleep and in how many private cabins? Do you need crew for service? Do you need crew to run the vessel? Who will take care of the vessel when you are away?
What kinds of activities will you participate in while using the vessel? Will kids and family be on board? Interested in buying new or used? The resale market keeps scores of relatively new boats available to prospective buyers every day.
"Charter first to learn what you like and dislike, and then hire a pro to advise you," said Setzer. "Know what is under the hood even if at first it is over your head - your life may some day depend on it. Consider using a marine surveyor as your consultant instead of a broker, and do not take on vessels that are over 10 years old without very good guidance. Make out an operating budget and understand all the costs, from crew to dockage to maintenance. And watch out for sharks, on land as well as in the sea.
"Our method of approaching custom designs is similar to custom home architects, including the engineering as well as the interior and exterior design that guides a client to discover what their dream vessel looks like. Designer fees range from 2-4 percent of the retail price of the vessel, which, interestingly, is less than you will have to pay a broker to sell it to you. But the unique result is a state-of-the-art custom vessel with the eventual resale profits guaranteed.
"Fractional ownerships of yachts are also available, as well as the age-old partnership approach. In each case again you must be realistic. Partnerships have to be well worked out. Sharing a yacht is like sharing a custom home or condo. There will always be surprises and the friendship may be the ultimate casualty, with the broker getting one more commission in the end to get you out."
The industry saying is "The day you buy your yacht is the day it goes up for sale." There are far more yacht and boat designs out there than automobiles, and owners change products often. It keeps the industry alive.
Research into what is selling and how a vessel's value has or has not been retained is critical. Few vessels under 130 feet increase in value when brought up for resale. The production and semi-production markets below 100 feet are flooded with product and new models are constantly introduced to the market.
"Only the one-off, custom builds from a premier yard and a well-known yacht designer offer any insurance that resale value can be retained," said Setzer, "much as a custom home with a great view brings profits well above that of a stock design within a planned community.
"Above 130 feet the gloves are off. Designs from our office often bring our clients multiple millions in profits when sold within two to three years of delivery. The mega-yacht industry is a constantly changing, bigger-is-better marketplace with profits being taken from builds and re-sales around the globe. It can take up to three years to build a mega-yacht versus 90 to 120 days to build a production vessel, but the wait and the pedigree equate to greater returns.
"Our philosophy is to put original masterpieces out there - unique to their owner's requirements - that enhance the beauty of the harbors they visit around the world. If you do your research and buy a vessel to charter out when you're not using it, the investment can pay for itself better than real estate."
So ask everyone anything, be open to changing directions, and always remember there are no stupid questions. Uninformed decisions in yachting can cost you time, money and even your life, so make this journey with your eyes wide open. With the right combination of expert guidance and planning, yacht ownership can take you on an adventure like no other.
For more information on Ward Setzer and Setzer Design Group, please visit www.setzerdesign.com.
Yacht Classifications
Classic - Slow moving, 12 to 16 mph, robust and comfortable as if an older estate had been placed on the water with the benefit of changing the view for each day's sunset. From 50 to 200 feet.
Modern - Fast moving, 18 to 30 mph, sleek, flashy, loaded with toys and flat screens. From 60 to 130 feet.
Sport Fishing - Ready to chase gamefish and blast along through offshore swells. Not built for weak stomachs. From 50 to 110 feet.
Motor Sailors - Slow paced lifestyle, 7 to 10 mph, glamorous in the largest models and like camping in the smaller sizes. Fifty to 150 feet.
Expedition Yachts - Built for extended travel. Explore jungles or reefs by day and dine in your own safe haven at night. One hundred feet and up.
Micro-Yachts - Slow or fast, from 30 to 60 feet, designed to allow first time yacht owners to get their feet wet without getting in over their heads.
Mega-Yachts - The ultimate in luxury, crewed by professionals, equipped with chefs and engineers, often folded into charter service to offset operational costs of over $1 million per year.
