I'm contemplating the concept of setting up a boat restoration business focusing mainly on cruisers in the say, 20ft-40ft region. Either as a bring your cruiser to us and we restore or buying cruisers, restoring and then onselling, or a combination of both.
I'm interested to know what the general concensus is in relation to buying fully restored older cruisers. They would essentially be like new but still an old hull.
Over to you folk...
The problem with "older crusiers" is that many can be many unknown brands and designs. So its hard to guesstimate a market value, regardless of condition.
Are you talking about targeting "production brands" or anything?
Ive seen boats re-appear for sale 1 - 4 years later with a totally different description, but a photo that matches 99% the previous time it was forsale. I had a collection of Trade-A-Boat magazines for while.
EG:
28' trawler style GRP cruiser with CAT 3208
$35K, then less than 4 years later it was forsale under $20K apparently in good running order.
22' Riveria Design Sports Cruiser with Mercruiser (looked like 2400 Mustang, Savage Ranger 24 and Signature crossed together with those slanted cabin windows pointy at one end)
$9K then seen it around $20K a couple of years later with no mention of a new power plant or refurb)
Custom 10m Alloy plate aft cabin cruiser. Twin Diesel Shafts.
Seen it for sale several times with all different prices varying by 100%.
Your no idiot, so i know that you will pay the correct money for the boat. But how much is the "new owner" prepared to fork out for it. With unknowns there is nothing to bench mark against.
Id say that you need to stick to the known production brands. Ones that will sell based on brand and model.
If i was buying a refurbished boat, id like to be able to see your workshop or other boats that are work in progress so I could verify the quality of your work. A progressive photo portfolio of work would be good. Especialy for new floors, underfloor tanks etc that are not accessable for the buyer to inspect once installed.
You always tell people to tread carefully buying a boat that appears too clean as it could be hiding something. Now its your turn to be the seller
Last edited by fishingrod; 04-05-2007 at 08:39 PM.
Yep, i agree with all of the above.
I shoudl have mentioned only well known production cruisers but I decided to deliberately leave any detail out to leave the forum open for all and sundry comments and thoughts.
Having spent 3 yrs retailing used boats I know precisely how hard it is to sell unknowns or "orphans" as we call them. I have in mind boats like the Savage 24ft and 26ft flybridges and cabin cruisers, Bertrams quite possibly, the bigger Cruisecrafts, maybe some shark cat type hulls also.
In terms of values there will always be a few for sale on boatpoint etc in various states of presentation to enable some manner of cross referencing values.
Unless the whole idea of a "restored boat" is mainly about the "did it myself" aspect.. If so, then the concept is not viable as a business.
Re the "boat too clean". Yes, always true but obviously different when a boat is sold as restored and all facets of that work can be pointed out as opposed to the situation where this squeaky clean boat thats newly painted (engine and hull) and the owner says he's had it 10 yrs and its never been painted.....
I'm biased to the idea so that makes it hard (which is why I float ideas and read the feedback) but to me it seems financially wise to buy a restored but older cruiser for say $60K for a 26 flybridge Savage versus $130K for a Caribbean 26 flybridge new. Obviously the new buyer is never going to buy old and maybe thats where it all falls over. I don't know....
Cheers
The value proposition for you is going to be boats that have been "let go".
That usually means lots of hours and quite a few bucks to bring them back.
Then you have got to move them.
You can have a heap of non performing dough sitting there waiting for a buyer if you are not careful.
Most marinas have various marine engineers, boat fitters/builders/ detailers associated with them.
How do you envisage making your business different , I think you will find it is a competative market place.
I dont mean to say dont do it . Im just playing the devils advocate for you.
If you do go ahead , good luck. I hope you make a mint.
rando
I would never buy anything has been restored. I am a panelbeater by trade and i seen a few people buy restored cars and end up with other peoples bad workmanship. I am in no way saying that happens everywhere or all the time but thats just my own experience. I believe that there is some good people that do the job right and BM would not ask the question if it wasn't done right.
Just my two bobs worth.
Rando, firstly I appreciate your err.. horned advocacy!!!
I am well versed with the usual marina environment and yes they have their share of trade services but they don't typically have a business dedicated to the complete restoration of a vessel. Particularly with yachts.... but not too disimilar with power boats...
Marina businesses are typically REACTIVE, they provide a service to an issue that presents itself. They typically rely on their income from the vessels in that marina and are often not pro-active in hunting down new work or extending their capabilities.
Fortunately for me (possibly, and possibly not) my experience crosses many areas including boat sales, marine mechanical repairs/servicing/rebuilds from small tinnies to large multi engine cruisers and restoration work including spray painting, fitting out, timber work, floor, stringer and transom repairs and trailer repair work.
Re the initial purchase aspect. I know how to buy wellHave spent a few yrs doing it. Supply of good stock could well be an issue but this concept forms part of a larger business concept comprising mainly a marine mechanical repair/servicing/rebuilding establishment for outboard, stern drive, conventional(shaft) drive and jet skis.
Searay, thanks also for your input. I'm keen to here from those who would partake and those who would not. And equally happy to hear form both sides and more explicitly, their particular reasons why or why not.
Thanks so far folks.
Hi BM
I wonder if one of the things you are up against is that if some is after new look etc they may well have the $ to buy new/near new and someone that wants an older looking (IMO a better looking hull- re classic) hull is possible wanting to do the rebuild themselves. I know in the circles I move in there is one guy that just loves to build them from scratch, this includes plugs. Then there is a few of us that love classic shapes and hull design (I think some hull design has gone backward in the last 15 years - exspecially in top deck design) and someone is always looking for a classic. Then there is a few that just go and buy new.
does all that mean any thing, probable not
cheers
blaze
Well, I guess it shows there is a mixed bag out there Blaze..
I do believe the Classics have a place in yesterday, today and tomorrow and the ongoing future.
But its a matter of consumerism and popularity I guess. Sure its a passion of mine, but I won't pursue it unles its a passion of others.
Cheers
Hi Bm
maybe what I am trying to say is that people that want classics often veiw the task of rebuild/rebirth as much a part of the overall experience as that of owning and using such a vessel
cheers
blaze
ps
hope all goes well for you if you decide to make the move north.
Yes!, and I indicated as such somewhere along the line. If this is indeed the over-riding motivation for restoring an older boat then I am out of the equation, pure and simple (in terms of profitable restoration that is).
Cheers
What about the outdated styling on boats from the late 70's - mid 80's. Or should i call it the classic stylingOriginally Posted by BM
Do people still like the styling?
If you look at interior on a Mariner Pacer or 22 or a Cruise Craft Rover or Carribean 23 sedan, Savage Marlin etc .... they are all from a era of Woodgrain trim and their layout isnt as always very space efficient. Some had big ugly looking tall helm positions and varnished seat boxes, lots of louver doors, the spirit stove and sink in the cabin.
Perhaps todays market would expect a fridge and ice box in the cabin, then maybe one of those more modern fibreglass seat boxes with the sink/stove combo underneath. Unless you make these yourself they are very pricey to buy.
What about toilets ..... I admit that I havent kept myself up-to-date with the holding tank and allowable direct discharge areas, but would you need to retro fit holding tanks in boats for todays market?
Im pretty sure you can handle typical re-wiring jobs.
But can you do canopys and upholostery yourself?
Can you weld stainless ?
There could be min $500 (?) work on every boat that you would need to subcontract out.
On some boats I imagine that you might do a basic turn key re-furb and advertise a price. Leaving things like deckwash/shower, extra electronics, solar panels, shore power, extended binimi's etc to be quoted additional and fitted according to the new owners specifications.
Set up costs. Maybe a good tow vehicle and a big tri/tandem trailer so you are less reliant on (expensive) boat transport companies
In terms of stock, in NSW there is ex government SharkCats, Water Taxis and fire damaged and sunken boats.
I guess you would need to always keep your eyes open for bargains, even if you had other projects on the boil. You would need mates regionally to do a initial inspection on a rig? Before travelling yourself to do a final inspection ?
About 6 years ago one of the local National Parks boats sunk. Stuck under a wharf on a rising tide i heard. I think it was a 7.5m ProMarine heavily constructed plate alloy with lock up wheel house about 6 years old. Motors were twin ~200hp Optis only a few months old with very low hours. I spoke to the guy who bought it as a wreck for ~$15K. Apparently the motors started OK on the ear muffs. Im not sure how well they actually ran. Thats probably the type of project you may want. Any re-furb would have to be done at a standard to maintain the boat in survey as your buyer would probably be commercial.
I would never by a refurbished boat. Id rather buy a 1995 boat in original clean condition than a 1982 boat that had been restored. The sheer age of the hull scares me.
I can see potential in your idea, but can you make a entire business out of it is the question. Im only in my late 20s and so far have never even once considered my own business. So I really admire the small people that start up on their own and sustain the business.
cheers
Rod
Well I would use this service as I know the boat I would get but I would want many many pics at all stages of the rebuild.
hi nic i guess there could be a market in the area of suppling expertise and labor for the tough jobs in refitting eg. transom mods,deck layout changes. the bottom line is, will i get value for money? & could i do it myself? best of luck if you go ahead.
CHEERS RODNEY
Some people still go for the timber look inside, in fact Whittley still produce their cruisers that way. Teak trimmings and lots of grey frontrunner. But the idea would be to do what the customer wanted or in the case of a stock boat I'd apply a different theme to each job. Or alternate between timber styling and modern styling.
Yep, I love that combo setup under the seat. I don't have moulds for those.... yet. But there are more ways than 1 to do that. There are some really neat items produced today that can be retrofitted into a boat. For example these from BLA:Perhaps todays market would expect a fridge and ice box in the cabin, then maybe one of those more modern fibreglass seat boxes with the sink/stove combo underneath. Unless you make these yourself they are very pricey to buy.
What about toilets ..... I admit that I havent kept myself up-to-date with the holding tank and allowable direct discharge areas, but would you need to retro fit holding tanks in boats for todays market?
These are an awesome looking moulded side pocket arrangement with built in drinkholder etc. I'm planning to use these in the Bertram 20 project but I may have a depth issue to work around.
Yep, no problem there.Im pretty sure you can handle typical re-wiring jobs.
Subbing some stuff out is fine. I can only arc weld. Can do canopies and upholstery but I am slow so I prefer to let someone faster than me to do it.But can you do canopys and upholostery yourself?
Can you weld stainless ?
There could be min $500 (?) work on every boat that you would need to subcontract out.
I'd rather a boat that is done up as a stock boat has all the good gear fitted to it (within reason). For example the Savage 26 Flybridge pictured below I would envisage that being sent out with pressure hot and cold water, transom shower, toilet, galley, anchor winch, full covers etc etc So the buyer really has no equipment to add unless they wanted some specific item.On some boats I imagine that you might do a basic turn key re-furb and advertise a price. Leaving things like deckwash/shower, extra electronics, solar panels, shore power, extended binimi's etc to be quoted additional and fitted according to the new owners specifications.
Would depend on the boat. I woudl build a trailer to suit up to say 30 or so feet boats and could pick up local stuff, but interstate is better on a truck. By the time you look at the cost of going to get iti and tow it back yourself you can't do it much cheaper than a large trucking company can.Set up costs. Maybe a good tow vehicle and a big tri/tandem trailer so you are less reliant on (expensive) boat transport companies.
Yes, hadn't considered those options. The sunken stuff I'd probably steer clear of though. I would be hunting boats that have simply been let run down.In terms of stock, in NSW there is ex government SharkCats, Water Taxis and fire damaged and sunken boats.
Yep, sure would have a keen eye open. Depending on the asking dollar I would (shock horror.....)buy sight unseen sometimes. Realistically, if th eprice is right and things like new floors or transoms are factored then it wouldn't matter.I guess you would need to always keep your eyes open for bargains, even if you had other projects on the boil. You would need mates regionally to do a initial inspection on a rig? Before travelling yourself to do a final inspection?
I recently missed this Huntsman 23 Flybridge that was advertised on crap-bay. See this link:
http://cgi.ebay.com.au/ws/eBayISAPI....9138&rd=1&rd=1
This Huntsman would have been a good pickup. Sure it needs quite a bit of work but it could really be turned into something special. The 4 on boatpoint at the moment range from 38K-55K.
Theres a good sharkcat flybridge on there also at present:
This 23 footer:
http://cgi.ebay.com.au/ws/eBayISAPI....2488&rd=1&rd=1
Toss some pods on the back and 2 outboards (easier to sell with outboards). Could be restored quite well. But cats are hard to sell.
This Savage Lancer 26 sedan is a possible go-er but the dollars are too high at present.
http://cgi.ebay.com.au/ws/eBayISAPI....7547&rd=1&rd=1
Fair call. Although thats the beauty of glass boats in my opinion. Pull it apart and replace whats cactus and you are good as gold again.I would never by a refurbished boat. Id rather buy a 1995 boat in original clean condition than a 1982 boat that had been restored. The sheer age of the hull scares me.
That is the big question. But as part of another business its probably workable until it got legs of its own (possibly). Theres nothing glamerous about being in business... Just bloody hard work, sometimes being cashed to the hilt and other times having no money..I can see potential in your idea, but can you make a entire business out of it is the question. Im only in my late 20s and so far have never even once considered my own business. So I really admire the small people that start up on their own and sustain the business.
cheers
Krazyfisher, funny you should mention that. I did a 19ft Savage Surveyor about 2 yrs ago for a guy in Canberra. He never saw the boat in the flesh until it was restored (I had it in the yard for sale as a typical secondhand boat). The number of email discussions was enormous (and enjoyable, he was a funny bloke and we accused each other of being Tolstoy due to long winded emails, akin to the long winded epic "War and Peace") and pics were taken right throughout.
The boat has appeared in PowerBoat magazine twice now.
Newchum, the value for money part is up to the individual i guess. From my perspective I would prefer to pay say 60K for something like that Savage Lancer flybridge (pictured) with everything restored in a modern manner, with all the gear on it, new engines etc etc than paying $130k for a new Caribbean 26. But maybe if I had that sort of dough laying around I'd go for the expensive new boat.. Actually I wouldn't. I don't see the value in buying something brand new and then losing money the moment it leaves the showroom...
Used boats in excellent condition always command top dollar and get it. It would be interesting to see how 5 yrs down the track what sort of depreciation there was on something like that Savage 26 fully restored. It could possibly achieve the same price as when it gets restored. Thats not one of mine I might add. Its just a picture of a Savage 26 belonging to a bloke in QLD.
Phew..... that took a while..... I'll dig up some pics of the 19ft Savage Surveyor I did and post em too.
Cheers
Hi Nic
Thanks for taking the time to give such a comphrensive reply.
That Huntsman looks like its only got a long shaft? That pod could be close to the waterline and could get covered in slime if moored.
That SharkCat looks like a aftermarket flybridge. I cant say ive seen any early ones like that with a F/B before. Looks a fugly.
A Savage Lancer with legs? Maybe thats a MK1, ive never seen that before.
Thanks for the examples, its good to see the type of projects that your looking at. At least those current owners have already paid for most of the expensive jigsaw pieces, you just need to put it together.
I wonder if boat prices in QLD will be too low compared with what your used to in Victoria?
Re another post of yours and the Pride selling price. You would need a small balavlava in Sydney to sell it at that price. But i guess once you have got a buyer that has seen it and fallen in love with it, they want it no matter what.
Ill admit i may have paid $1K more than market value for my current Allison 189 (year 2000 model) I knew even before I made the offer that i should probably go a fraction less. But i had been looking at boats for one year (web and 4 different states while on driving holidays) and not even seen a single boat i wanted to make a offer on. If i offered him too low i might have missed out buying it. I would have been happier 1K less. 2K less would have been a good deal. Either way im very pleased with my purchase. Maybe im going off topic, sorry.
The opinions to your original question so far seem pretty mixed. So good luck.
Rod
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