After being cancelled due to COVID-19 in 2020, it was great to see the 2021 Sydney to Hobart Yacht Race once again be run and won. The entrants faced quite a challenging race this time with quite a significant number of boats retiring in the first 48 hours. While conditions were challenging, the race may have inspired others to get into sailing. For those motivated by the Sydney to Hobart performances to purchase a sailing boat, cheap yacht finance is available to make that acquisition.
We outline what is available and what is involved in securing a cheap yacht finance to purchase a sailing boat or yacht for recreation, racing or travel purposes.
Yacht Selection
The entrants in the Sydney to Hobart race cover quite a large range of types of yachts with varying lengths and classes including ORC, IRC and two-handed. The line honours winner Black Jack, and the place-getters Law Connect and Scallywag are in the maxi class – 100 footers. The overall winner is based on handicap and this year that honour went again to Ichi Ban. Not without controversy however, as it was after a protest over Celestial. The protest involved failing to comply with radio reporting requirements. A reminder to those that are planning to compete with their new yacht that the rules of racing must be adhered to.
While the maxis are the glitz and glamour of ocean racing, a lot of attention was on the two-handed class in this year’s Sydney to Hobart. Two-handed or double handed sailing is racing of a one-design boat by a two person crew. As one race commentator noted they should call it 4 handed as the two people have two hands each.
While some of the maxis have 18+ crew you can only imagine the challenges faced by boats with only two people on board. While the boats sailed in the two-handed class are smaller than the maxis and many others, the challenges can be far larger.
Two-handed sail racing has seen an uptick in interest of late as it will be a new class in the Sailing Competition at the Paris 2024 Games. Its inclusion replacing the Finn class which has been removed from the games agenda.
Paris will feature a mixed two person event – a male and female mix, and many sailors around the world are honing their skills, no doubt for possible selection in their nation’s team.
When it comes to selecting a yacht to purchase with finance, the focus is mainly on recreational vessels from popular yacht brands such as Jeanneau, Beneteau, Solaris, Bavaria, Hanse and others. Finance is available for single and multi-hull yachts including catamarans and luxury trimarans.
Multi-hulls are a popular choice for those planning to travel long distances or stay aboard for long periods such as sailing around Australia or for extended sail holidays. The additional hulls can offer increased stability, ease of handling by a small one or two person crew and provide greater space both above and below deck.
Finance Types Available
For those purchasing a yacht for their own private use, whether it be recreational or racing, the most popular loan type is our Secured Boat Loan. This loan has a standard secured loan format but with the added Jade advantage of being sourced at a better interest rate.
With the secured loan, the yacht is accepted by the lender as security against the loan. For most loan applicants, this will be the only security required to guarantee the loan. Some applicants however may be required by lender request to offer additional assets as well. Your Jade consultant will negotiate the most acceptable outcome and assist with these issues.
We source Secured Boat Loans with a cheap and fixed interest rate. This is preferred by most of our customers as it provides certainty over the term of the loan. With interest rates currently at historic low levels yacht buyers can capitalise on that situation by securing a fixed interest rate yacht loan now and enjoy that interest rate for years.
Some lenders will offer variable rates on boat loans. The range of loans and lenders can be reviewed.
With our Secured Boat Loan the loan term is also fixed, up to 7 years is available to approved loan applicants. With the fixed rate and fixed term, the result is fixed monthly repayments. Once locked in, the loan elements remain stable provided the borrower meets the repayments schedule.
Extra payments are permitted with this type of loan. If extra payments are made and the loan is paid off earlier than the end of the term, minimal break fees apply.
Insurance is required when purchasing a yacht with finance. Policies are available through many major insurers but specialist marine insurers such as Club Marine offer policies specifically designed for boats.
Additional items may be included in the total loan if purchased at the same time as the yacht. If intending to compete in offshore races or even sail off the coast, consider purchasing all the necessary safety equipment including comms and electronics.
So if you’ve been motivated and inspired to buy your own yacht, speak with Jade Boat Loans about the finance options available. We also offer business finance options for those buying for business purposes.
To discuss yacht finance contact Jade Boat Loans on 1300 000 003
DISCLAIMER: THE INFORMATION AND SPECIFIC DETAILS CONTAINED IN THE CONTENT OF THIS ARTICLE HAVE BEEN PREPARED AND ARE PRESENTED PURELY AS GENERAL INFORMATION AND NOT INTENDED AS THE ONLY SOURCE OF FINANCIAL ADVICE FOR BOAT BUYERS AND LOAN BORROWERS. FOR THOSE THAT CONSIDER THEY REQUIRE SPECIFIC ADVICE, THEY SHOULD CONSULT WITH A FINANCIAL ADVISOR. LIABILITY IS NOT ACCEPTED IN REGARD TO ERRORS AND MIS-PRESENTED DATA AND DETAILS HEREIN.
