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Superyacht owners: insight, trends and chartering

Superyacht owners fall into two types – those who want to be on show and be seen in all the right places like the Cote d’Azur and those, who are an emerging new breed, who want to explore unusual places such as the Galapagos Islands or North Canada.

superyacht

St Tropez is a magnet for the owners who hire a yacht or a boat from the marina only to sail around the corner and moor up at Pampalone beach for a couple of weeks. Some would argue that spending in the region of £1 million per week to charter a luxury boat only to stay in the same place is a little peculiar, but you pay your money and you make your choice and this is a tried and tested formula by those who can….

The new breed that charter agents are noticing, are owners looking for the spirit of adventure. Over the last 15-20 years, the style and build of boats has changed dramatically and now that GPS and wifi and vastly improved communications can be installed into a luxury boat, it means that owners can set sail and still remain in touch or even work as they travel across the sea.

st tropez superyacht

The key to successful chartering is knowing the right agent. Experienced local agents will know the best and most interesting places to seek out. They will advise on the most suitable bo at and which marinas, harbours and ports will accommodate various sized boats. Rather like property agents, there are the great and the good in the boat charter world, there are the likes of Savills who have offices and representatives in the prime places such as London, Antibes and Monaco and there are ‘hustlers’, those with insider knowledge, who make calls and make things happen to procure the superyacht no one thought was available. It is a competitive market and there are deals to be had if you know who to go to.

Superyacht costs and technology

Costs are astronomical with fuel being one of the biggest. I was once alongside a superyacht off the Sicilian cost, that took four hours to refuel and at the end the owner handed over £250,000. Taxes and the cost of moving a boat from one beautiful location to another does not come cheap and can cost in the region of £10,000 just to move from one bay to another. Running costs can be around 10 per cent of the value of the boat; so some private owners will charter their boat to recoup the running costs each year. Even when a boat is standing still the costs continue with generators and air conditioning to be maintained.

Luxury yacht

These days technology extends to tracking superyachts across the globe, so in the summer from May to September you can see plenty of boats moored up along the coast of Ibiza for the club and party scene. Certainly the Med sees the most boats flocking to enjoy the host of islands and social life from June to August. Croatia and Montenegro are now becoming popular new hotspots and the Ionian Islands are a perennial favourite. In the winter months the Caribbean plays host to fabulous boats and glamorous visitors celebrating New Year on one of the luxury hideaway islands like St Barts and Richard Branson’s Nevis.

Expert property viewing advice for buyers and sellers

Simon Barnes offers his insights (and some advice) for property buyers and sellers; including mobile phones, smelly pets and annoying sellers.

Buyers

Buyers who do not pay attention during viewings and instead spend their ‘viewing’ time texting or on the phone. If you’re serious about buying, there will be an important decision to be made; so for perhaps 20 minutes, dare to turn your phone off!

Buyers who disappear after a viewing without giving any kind of feedback leaving everyone concerned in an unenviable state of limbo. Just let us know what you thought of the property… that’s all!

Buyers who ask stupid questions – usually because they’ve been on the phone for the duration of the viewing! You would know what the service charge is if you’d been listening… likewise that there is permit parking/off street parking/garage parking…or no parking etc etc

Sellers

Preparation – decisions are made within the first few minutes of viewing a property and yet strangely, few sellers seem to fully understand this so I make a point of always arriving at least 30 minutes before a viewing to ensure everything is as it should be.

Vendors who follow you around on viewings with a running commentary do nothing to ingratiate themselves to any prospective buyer – they only irritate!

Pets may well be loved by their owners but their ‘scent’ does not assist the viewing process – so I would recommend removing all evidence of smelly pets… or any pets for that matter.

About Simon Barnes

Simon Barnes has built a reputation for possessing insider knowledge, treading the pavements of London’s fanciest streets for more than 20 years acquiring prime properties for the well-heeled and wealthy. Working slightly ahead of the curve; his code of practice has been always to retain a manageable cluster of clients rather than spreading his attention too thinly.

by Simon Barnes

Spectacular riverside apartment reduced to £10M

Albion Riverside is a spectacular riverside apartment in an iconic building with breathtaking views of the London skyline. The apartment has recently been reduced from £12M to £10M.

Designed by world-renowned architects Foster and Partners, this magnificent apartment is in the most desirable and rarely available position within this landmark building. A combination of four flats, the impressive lateral space of 6,000 sq ft is interior designed throughout to the highest standards. It benefits from unrivalled river views, superb entertainment space, excellent accommodation as well as privacy and security.

Imposing entrance hall
Vast reception room 71 ft x 32 ft
6 bedrooms, 6 bathrooms (all ensuite)
Self-contained guest flat with its own entrance
Staff quarters with 2 staff bedrooms and bathroom
Guest cloakroom
Media snug
Acclimatised wine room
Laundry and utility room
Storage room
Air cooling throughout
Audio surround sound system
Crestron controlled lighting system
Floor to ceiling windows
Large wraparound river front balcony
24-hour security and concierge service
Residents’ gym and swimming pool
Secure underground parking for 4 cars

Located on the south bank of the River Thames between Albert and Battersea Bridges, the building is within easy walking distance of Battersea Park, Sloane Square and the King’s Road.

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by Simon Barnes

Off market – the new trend that is old news…

The trend for claiming that a particular property is only available ‘off market’ has been very slowly creeping back in. The term is a grey area; off market is often an excuse to over value a property and ask a higher price.

Sellers may test the water by being off market increasing the price considerably in comparison to neighbouring properties and hoping that no one notices the disparity. Of course in this day and age of the Internet when data is freely available, savvy buyers will be able to do their own research into comparable property values and from that make their own judgement on pricing.

The fact is that whether you are a seller hoping to attract a buyer by being off market or a buyer wishing to make a discreet purchase, strong experienced representation from an agent is crucial. A good buying agent will earn his commission in spades when it comes to firstly sniffing out a genuinely off market property, but above all when it comes to negotiating the best possible deal. Professional estate agents will trust only the most credible buying agents who come with a solid reputation, act with due diligence and have an impeccable track record.

Throughout the last financial crisis, some owners favoured going off market because they did not want to give off the wrong signals by openly marketing their property. Similarly, some buyers wished to remain under the radar, preferring to conduct their viewings and negotiations in private.

In the last few years, agents have definitely claimed to be offering off market properties when in reality they are not. Beware of off market properties, it’s tempting to misinterpret this as a kudos label, when actually they tend to be more expensive than rival properties and are really in no way superior.

If you want to sell or buy well, then focus on retaining the most experienced agent, someone who can navigate a deal through the lows and negotiate on your behalf, securing the property at a sensible price rather than paying the inflated price on an off market price tag.

by Simon Barnes

The rise of the super-let in Prime Central London

Simon Barnes highlights how the demand for a super-let in Prime Central London is on the up:

“Over the past few years, Prime Central London’s ‘super prime’ market has stalled but not stopped. Global events such as the oil crisis, China’s flagging economy and Russian actions in the Ukraine affected international buyers irrespective of where they came from. Consequently, rather than for example only three out of ten overseas buyers being adversely affected by a world event, all nationalities whether Arabs, Russians, Chinese, Indians or Europeans, have experienced some negative impact as a result of economic and political uncertainty.

This in turn, has affected the number of ‘super prime’ properties remaining unsold across the most desirable postcodes in Prime Central London. Taking a pragmatic approach has seen savvy developers and sensible vendors take a decision to offer their properties to the rental market for a two to three year rental rather than reduce the asking price and lay themselves open to accepting an even lower offer. The advantage being that over a limited term they can achieve exceptional rental revenue, whilst retaining their property asset and relaunching on the market at a later time when the PCL super prime market looks promising. It really is the common sense approach to wait until the market shows a positive change assuming no forced sale is involved.

Recently H Barnes & Co, in conjunction with Knight Frank, rented a house in Mayfair for in excess of £20,000 per week. This deal is a great example of how a high end residence which had remained unsold attracted intense competitive interest the moment it became available to rent.

Rental properties of this calibre are few and far between, so when one comes available, they attract the attention of the UHNWI. As far as the tenants go, their motivation for renting tends to be based on individual circumstances rather than a desire to rent. It might be that their own home is undergoing a comprehensive refurbishment, or undergoing major repairs, or they are waiting for the right property to come to market. A whole host of reasons, but for them money is not object and they will have an exacting brief when it comes to securing the right hard-to-come-by rental property at this level of the market. It is not uncommon for owners of these properties to agree to a long term rent and then a sale at some point further down the line. At H. Barnes & Co we have dealt with several clients who have gone on to buy their rented home.”

This article by Simon Barnes was originally published in PrimeResi (subscription) on 5 May 2017

https://www.primeresi.com/the-rise-of-the-super-let-in-prime-central-london/100392/

Superyacht costs and technology

Buyers

Sellers

About Simon Barnes

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Contact H. Barnes & Co – Tel: 020 7499 3434