CREWED FUNDING is something we introduced to the Superyacht industry a year or so ago and it was really well received by a lot of you. This was mainly because it meant that those of you who were thinking about investing in buy to let property could do so. The main difference being that, rather than borrowing money from the bank to buy the property, the money to buy would be made up by other yacht crew. This means no loan repayments and no interest so that you can maximise the return from day one.
For those of you that don’t know CREWED FUNDING is a play on the words CROWD FUNDING. It is exactly the same thing but only open to Superyacht crew. We also try to limit the investments to things which mean something to you such as property, specifically rental apartments, developments and, most recently we have begun to set up a classic car club which will be funded by you, Superyacht crew. But more on that later.
As you all know, Yachting provides crew with a great opportunity to save, invest and potentially set yourself up financially for your life after yachting. A lot of you invest in stocks and shares, many into property or maybe even both.
One thing we have seen a surge in recently is crew contacting us about mortgages. A lot of you have made great progress with this and are now benefitting from the income provided by an investment property or two.
However, in light of this we have also discovered that there are a lot of you out there who want to invest in property but are unable to due to residential status, your tax situation or restrictions imposed by certain banks. Also a lot of you have been asking about alternatives to buying property and, some of you are looking for something lower risk to invest in. After talking to a lot of you since we came up with the original idea we have refined how this works so that we need a much smaller number of people to invest per property. This means we make progress quicker and you start earning faster. The basic principals other than that are the same
Welcome to CREWED FUNDING.
What is it?
Crewed funding is a way for yacht crew to invest into property as part of a group with one goal in mind, Return on Investment.
- Each member invests cash savings into the fund in return for an agreed (contracted) share in the owning company.
- The owning company purchases the agreed property (this can be either a house, apartment, refurbishment project or new build) with cash.
- The investment term will be pre-agreed depending on the project/ investment type.
- Because there is no mortgage a better price can be negotiated and there is no borrowed money, therefore no interest to pay.
- All earnings from the investment are therefore higher, meaning a better ROI for each member.
- The property is then sold after an agreed term/ value increase. Also each member earns an annual dividend from the profits of the business.
- The property is managed and accounts sent to each member annually to show profitability of the project.
- At the end of the agreed term the property will be sold and all shareholders will receive the corresponding return in accordance with their % share in the project.
The idea behind this type of investment is that it is aimed at combining the savings of a number of like minded investors in order to return a higher gain than if you invested alone.
This type of investment is nothing new and happens a great deal outside of yachting but this is an industry first and completely unique right now to the yachting industry.
The great things about it are;
- Open to all nationalities
- No need to borrow money from the bank
- Option to invest £10,000 to £100,000 per person
- A higher return on investment due to no interest charges
- Specialist advice from our Wealth management and property investment team.
CREWED FUNDING has now launched and we have our first two projects available for investment immediately.