Contained in these pages are some advise and tips from the top professionals on how to make a choice of the boat that will best suit your needs:

(1) You first should define what your cruising plans are and how you plan to use your yacht. 

• Charter management programs all over the world with 2-6 weeks of owner use/year.      
• Privately owned and sailed primarily on weekends or short trips best described as coastal-cruising voyages.      
• Living aboard and/or blue water cruising. The spacious boat you saw at the boat show may be great to live on but it ma be a slug underway and you may regret that if cruising long distances.    
• How many people will you be cruising with? (i.e. how many sleeping cabins do you need?) Most catamarans have a minimum of three sleeping cabins and more storage space than you will ever use. However, as you add much extra weight to a cat, the sailing characteristics are altered significantly. The standard Lagoon 42 that will hit an exhilarating 16 knots on a broad reach in 25-30 knots of wind can turn into a slug that can barely reach 9 knots when loaded down with generator, air-conditioning, extra water and fuel, and tons of gear.     
• A yacht that is suitable for charter may not necessarily be the best for a couple’s live-aboard. Many people tell me, “We will cruise our new boat for “x” months, then we will put it into a charter program”. Well, then, you must go with a charter type boat (lots of staterooms and simply equipped) because otherwise, you will get killed by high maintenance costs and low utilization.

• (2)Once you have established what you want to use your boat for, you can start setting parameters for your search like price, type, location, age, etc.

• In order to stimulate industry, government has made subsidies available to US residents in the form of tax breaks: If you are a U.S. taxpayer/Resident who is in the 25% or greater tax bracket and has a current annual tax liability of $50,000 or more? If so, then there is a little-known way to buy a new yacht and apply the taxes that you already pay, towards paying for your yacht. Ask us about our Active Yacht Ownership Program.
• Your yacht could qualify as a second /vacation home and apply that tax advantage. 
• If you understand the system, you know how it is possible to be legally exempt!...Offshore registration is a legal way to avoid paying sales/use taxes and Customs duties. However, you can usually expect to pay $1,000 to $5,000 to set up an offshore corporation. Most larger catamarans prefer to register foreign flag because it offers more privacy, no taxes and less liability. Some U.S. lenders are comfortable with yachts/catamarans registered in U.K. "Red Ensign" countries. (i.e. former British colonies like the BVI, Cayman Islands, Bahamas, and Barbados). Some US lenders will insist upon U.S. Documentation, so check with your lender early on. The drawback to offshore registration is that you will have to exit the U.S. once/year to renew a Cruising Permit in order to remain in U.S. waters. The other drawback is that the attorneys in these offshore jurisdictions charge $1,500-5,000/year to maintain the holding corporations not unlike a trust. 
• Sales and Use taxes are levied in the U.S. by the individual states and generally apply to US Residents. Each state is somewhat different in their approach to this subject. Whether you owe this tax has to do with where the catamaran is registered and where and how the catamaran will be used. Buyers who qualify, will register their yachts in a tax-free state like Delaware in the name of a corporation. These corporations cost around $250 to form and around $100/year to maintain. This is the most cost-effective "state" registration. You may want to "Document" or Federally-register your yacht/catamaran if you are traveling mostly outside the U.S.This can also be done in the name of a Delaware corporation but only US Citizens can Document their vessel.  Non-U.S. citizens cannot own a U.S. Documented vessel.

Contact Stephen Cockcroft @ Tel: 1-804-815-5054 or e-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it to discuss tax advantages and yacht ownership.

(4) Tips, Pros and Cons of buying NEW vs PRE-OWNED & Charter Yachts

• New Yacht buying tips:Ask your dealer if there are any special discounts. Often boat show specials will be available before and during shows but not after the Shows. Ask specifically if the builder has any unsold inventory or production slots. Ask if the dealer has any inventory they would really like to sell. Mention that you would be agreeable to have your yacht displayed at any up-coming boat shows. Often this opportunity will enable a new owner to enjoy their yacht in New England for the summer before their yacht starts chartering in the Caribbean.

• New Yacht Pros: Newest designs, materials, technology: the engineering that goes into a new boat produces a stronger, lighter, faster hull. Much less maintenance in the first years ...mechanical and electrical systems are more efficient and safer. The engines use less fuel and are quieter, easier to maintain, more reliable and more environmentally friendly. Warranties. Financing more readily available and at lower rates. You choose the options and upgrades you prefer...get exactly what you want...many new boats have better accommodations for electronics at the helm. 
• New Yacht Cons: Fewer choices. Quicker depreciation. Cost more initially.Not all the "bugs" may yet have been worked out. If you choose to pursue a new sailing yacht you will find a selection of builders from around the world. Consider the impact that foreign exchange makes. If you have dollars and are buying a yacht in Euros there can be huge price swings from year-to-year. Consider buying a yacht priced in a relatively weak currency like China's. If you cannot afford a new boat, beware of the "fixer-upper". Most people grossly underestimate what it costs to refit a used boat. They say, "Oh, I can do a lot of the work myself!"... But they don't understand that a lot of the work is highly technical and the technicians required are priced in the stratosphere.
• Pre-owned Yacht Pros: Slower depreciation. Bigger "bang for the buck"...more affordable. Larger selection and variety than new yachts
• Pre-owned Yachts Cons: You inherit problems of previous owner. Appearance isn't always an accurate indicator of value...you MUST employ a competent surveyor. Everything starts to fall apart after 7 years

• Charter Yachts Pros: Costs of ownership are reduced through charter income. Sometimes there are additional tax benefits. A professional will maintain the yacht for you. When you are done sailing just walk-away and the boat is cleaned. If you only have four weeks of sailing per year or less, consider putting your boat into charter.
• Charter Yachts Cons: The yacht will receive additional wear and tear and can depreciate faster than a never-chartered boat. Charter clients have been known to damage the yacht. Most charter companies restrict the equipment you can have. You must leave the yacht at the charter base year-round.
• Tip: The demand for Pre-Owned yachts- Yacht sales have seasonal price tendencies. In relatively "thin" markets like the catamaran market, it is possible to see large swings in prices in just 6 months' time. I have seen incredible price changes from year to year and I think understanding this factor alone can save you many thousands of dollars and make this Guide worth its weight in gold for you. Consider this: every year, most buyers of cats are buying for the winter "high season" in the Caribbean. They generally start their shopping in late August and this buying activity ends in December. The lowest priced/best deals sell first (late May-June-July-August) and the highest priced "worst deals" occur later on (October-November-December) but this can vary by one month in a given year... Every year, the very highest prices for a given model are usually seen in December or perhaps January. On several occasions I have heard, "I promised my wife that we would have a yacht for Christmas vacation so what do you have?"....These are the buyers who wait until the last minute and pay the most. It must be nice to have money to burn! A little planning and using the knowledge contained herein will save you thousands!
• Tips on Dockage: The best resource we have found to help you find a marina for your new catamaran is www.marinalife.com . Great searchable fields and maps and charts to find these locations are provided by Maptec. Also search www.mpconline.com . In Florida you can try Dockfinders 954-786-0246 or the classified section of www.waterfront-news.com . Or ask your broker for assistance. Tip:The cheapest docks in Florida are behind private homes and can range from $250-600/month depending on proximity to the ocean. Because of zoning laws, living aboard is not allowed in these situations. These are just for storage.
• Tips on Insurance: Remember prior to closing your lender will require that your yacht be insured. Find out specifically what coverage your lender will require and shop policies with the same coverage. This will make it easier to compare the value of the policies. If you are buying a pre-owned yacht the lender will generally, depending on age of the yacht, require a survey and will base coverage on the value and replacement value reported on the survey. As a very general rule, the annual premium for "private use" coverage (vs. charter coverage) is 1.5% of the declared hull value. So, a $100,000 yacht will cost $1,500/year to cover for Florida-Bahamas "private" (non-charter) use. Ask your broker to recommend marine surveyors.

• Tips on Insurance: If you will only use the boat in a narrow area like Florida-Bahamas then it can be simpler to find coverage. If you ALREADY have homeowner's or auto coverage with State Farm, Allstate or Progressive then it can be relatively CHEAP and easy to add the boat to the policy. But these policies are usually only valid in the U.S./Bahamas. If you will sail to exotic locations then it becomes more-complicated so you may have to go with a European company. Remember, the European insurance companies are TERRIFIED by liability risk in the U.S. because the U.S. attorneys here have done such a superb job of rigging the game against them and in favor of the plaintiffs. It is different in the rest of the world where everybody takes personal responsibility for all their actions. Remember the U.S.A. is the country where a person who burned their tongue on a cup of hot coffee from McDonalds got $10,000,000 for "pain and suffering"!!! So, if you are cruising outside the U.S. then the European underwriters like Pantaenius (of Germany) and certain British firms will give you a sharp price. But they don't want to cover boats that will stay here....The American firms aren't the best for the exotic cruising locales. Keep in mind that Seven Seas Cruising Association has some current recommendations here so go to their websitewww.ssca.org and do a search for "insurance" ...There are new recommendations every month there Tip: Most yacht insurance policies are for an "agreed upon" value. That is, if there is a total loss, then you are paid the "agreed upon value" with no deductions. Beware of the tricky "actual cash value" policies wherein the underwriter can deduct substantially for depreciation and other reasons. Beware of "Exclusions" ("weasel clauses" that allow the insurer to disallow payment) and always buy an "All Risk" policy (vs. a "Named Peril" policy). Usually policies will allow you to legally "over-insure" the yacht by as much as 20% of the appraised value. If this is of interest to you, then the surveyor should be notified so his valuation is done properly. See the broker about this matter.

(5) When you have made your purchase and consider long distance cruising these tips:

• U.S. Residents should check into filing IRS form 2555EZ which can provide up to $80,000 income exemption if you spend at least 330 of a consecutive 365 days off of U.S. soil.
• Go to www.virtualtourist.com which has the single largest, user-generated travel content. 775,000 members contribute tips and warnings for more than 25,000 locations and cruising destinations. Learn where the tourist traps are and who you do want to deal with through other people's mistakes!
• If you are going on an extended cruise and are concerned about how your business or other assets will be without you, then read "The Four Hour Work Week" by Tim Ferriss. An excellent resource for really getting away from it all.
• Go to www.kropla.com for the World Electric Guide to figure out outlets, voltage, mobile phones, international dialing codes and all sorts of mysteries relating to worldwide electrical mis-matching.
• Get an international multi-band cell phone that is "unlocked"; that is, the SIM card can be swapped out in different countries and you can have service anywhere.
• Go to www.satphonestore.com for the latest in Satellite telephones. This technology is improving rapidly and per-minute prices are dropping regularly. Iridium has the widest coverage but check out GlobalStar and SkyMate. There are some internet satellite telephones on their way, too.... Skype's Internet phone may work in most land areas and it should be very cost-effective. Many cruisers use Skype now whenever they are near an Internet hot-spot to make free phone calls worldwide to any other Skype user (and very inexpensive to call other phones). It's free to sign up and easy to use. They haven't worked all the bugs out yet but you can't beat the cost!!! Skype will probably put all the other long-distance companies out of business by 2015.
• Go to www.solio.com to get some pocket-sized solar panels that recharge cell phones or other electronics' batteries twice as fast as a wall outlet. Adapters are available for many different types of electronics.
• Run out of money whilst cruising? No worries! See the following websites for ways to replenish the cruising kitty: www.transitionsabroad.com, www.writtenroad.com (become a travel writer), www.eslcafe.com (teach English abroad),www.workingoverseas.com
• U.S. Customs duty: Congress passed laws to help the domestic ship and yacht builders which calls for a 1.5% duty on all hulls built outside the U.S. and brought here to be sold or used. This tax is levied on the "appraised value" of the yacht. There is a fee on top of this by the CustomsBroker of .4% and a surveyor must be paid to write a letter confirming the appraised value. Surveyor's fees are usually $100-300. Speak to your broker about the nuances of this law. So, if your situation calls for this tax to be paid, plan on spending 2% of the appraised value to cover the "import duty" and guard this paperwork carefully. When you are ready to re-sell the yacht in the U.S., you will need this!
• Beware of Overzealous Customs Agents in Puerto Rico if you own a foreign built boat and are a U.S. Resident: There are many non-U.S.-built yachts cruising the Caribbean and if they stay outside the U.S. they do not owe U.S. Customs Duty. However, if the owner is a U.S. Resident and the vessel enters U.S. waters (like Puerto Rico...the U.S. Virgin Islands is a "duty-free" area), then technically, even if the vessel is there for a fuel stop only, the 1.5% Customs Duty is owed. It's better to bypass Puerto Rico than to be "arrested" by their agents and hassled. They can technically seize your boat and cause all sorts of trouble