You Can Be a Cruise Ship Proprietor Even If You Are Not Wealthy

Not like fractional possession of plane and houseboats, fractional house owners of a cruise ship can all use the ship concurrently. There’s loads of room for you and the opposite house owners to dwell on the ship any time you need, or on a regular basis. You should utilize it as a full-time residence, and so can the opposite co-owners.

The primary apparent advantage of shared possession is acquisition price. There are numerous cruise ships in the marketplace in all value ranges, sizes, ages, and circumstances. There are numerous smaller and older cruise ships obtainable for lower than a million {dollars}. On the decrease finish, some smaller cruise ships in honest situation could be acquired for about $250,000. On the highest finish, the most important new mega cruise ships now price about $500 million to construct.

Do the mathematics. If 100 patrons pool sources in change for a proportion of ship possession, the acquisition price shall be divided by that very same quantity. One p.c possession of a $250,000 cruise ship would price a mere $2500 for ship acquisition. On the different finish of the dimensions, one p.c possession of a model new mega cruise ship would price 5 million {dollars}.

There are another figures that have to be tabulated into the overall price of possession. Acquisition price is at first. The subsequent determine is the price to place the ship in service. On an older ship this price could also be larger than the acquisition price. Alternatively, the price to place a ship into service could be a lot decrease for those who had been to get a superb deal on a ship that already meets the worldwide requirements for ship security, particularly SOLAS (Security of Life at Sea). Sustaining compliance with Chapter II SOLAS 74 amendments is price prohibitive for some older ships and they’re sometimes scrapped as a substitute of being refurbished at nice expense. There’s a crucial SOLAS implementation date arising on January 10, 2010. On that date all business worldwide ships shall be required to be in compliance with the brand new fireplace security codes. An important new codes cope with using flamable supplies within the ship. Will probably be costly to exchange all flamable supplies in ships with non-combustible or flame resistant SOLAS compliant supplies that meet the brand new security requirements. This may lead to many ships being bought for scrap steel.

The looming SOLAS 2010 implementation date provides each perils and alternatives. The most important peril is the chance that the expense to deliver a ship into full compliance with worldwide requirements shall be larger than the worth of the ship. Nevertheless, there’s a silver lining on this cloud. This pending SOLAS implementation date has already began to point out up as a major issue within the asking and promoting costs of ships in the marketplace as we speak.

SOLAS 2010 additionally provides an amazing alternative for many who might want to have a really giant houseboat as a substitute of a business ship. Ships that aren’t in compliance with SOLAS 2010 are actually promoting for a music (inexpensively). A cruise ship can simply be transformed right into a megayacht with the stroke of a pen. Privately owned yachts, not in business service, and never carrying passengers or cargo for rent are exempt from most of the SOLAS necessities. Working prices are additionally decrease for a non-public yacht. It price much less to register, flag, and insure a non-public yacht. Megayachts could be flagged and categorized for limitless service. That signifies that a megayacht can go virtually anyplace you need it to go. There’s one main disadvantage to registering a cruise ship as a non-public yacht. You can’t use the yacht commercially. This cuts off a possible income supply.

There are numerous first rate cruise ships on the market at costs of lower than a million {dollars} that may make good personal megayachts. For instance, take the ‘VERGINA SKY’ is a ship that I’ve personally inspected and so I can discuss first hand about it. The asking value was $750,000. Listed here are the specifics of the ship in a nutshell:

Present Identify: Vergina Sky

Ship Particulars: Constructed: 1971 in Japan – completely rebuilt 1992 in Greece

Dimensions: LOA 97.8m x LBP 82m x beam 14.6m x draft 4.49m Dwt: 500 on 4,49 GT/NT: 4,668 / 1,717

Description: Pielstick 2 x 8400bhp, twin screw, bow thruster, 3 x 500kw mills, 16 knots, 2 saloons, restaurant, 3 bars, on line casino, obligation free store, disco, swimming pool, 120 cabins for 318 company. Mendacity Greece

My Feedback after inspecting the ship

It is a effectively constructed little ‘Pocket Cruiser.’ At simply over 320′ in size general, it’s a small cruise ship. Many skilled cruise passengers want smaller extra intimate cruise ships for a wide range of causes. This ship can go locations the place the large cruise ships can not attain, corresponding to shallow draft ports and even many rivers. It has an omni-directional bow thruster and may activate a dime (comparatively talking in fact). I’ve rigorously examined this ship from the engine log to the ultrasound hull report. It is a sound and secure little cruise ship. Additionally it is a really gasoline environment friendly and economical ship. My first time on this ship was in the course of the summer season in Greece when it was very popular outdoors. The ship is totally air conditioned and it was cool and comfy contained in the ship. I checked the engine room to see what number of mills had been operating. I’m pleased to report that each one the electrical and air-conditioning necessities could be met by operating simply one of many three Daihatsu mills. These mills are very economical to function when it comes to gasoline consumption and upkeep.

I used to be in a position to negotiate with the proprietor, John Kosmas and get some concessions. I obtained the value right down to $500,000. And at that value, he agreed to deliver the ship into compliance with SOLAS 2005 and in addition to incorporate new paint topside. The ship was pretty effectively furnished even together with mattress linen, however the ship had been laid up for years. Its most up-to-date service was within the Mediterranean and Black Seas. Cruise ships that commerce solely within the Mediterranean and Black Seas are likely to have smaller cabins and fewer facilities than the standard cruise ships that frequent the Caribbean. The underside line is that this ship was an financial system mannequin, not a luxurious mannequin. Once I was inspecting the engine room, I requested for the engine log. Once I opened it I seen all of the entries had been in Greek. I used to be in a position to discern some dates and different information that informed me when the ship was final in service, however I couldn’t learn the Greek entries so I handed the engine log again to the ship proprietor, and informed him “It is all Greek to me.” Being Greek, Mr. Kosmas failed to seek out the humor in that.

Let us take a look at the numbers on this ship. 100% of the acquisition price would have been $500,000. 1% thus = $5000. 100 patrons might personal one p.c every. There are 120 cabins so every co-owner might have a non-public cabin with 20 cabins left over. Nevertheless, these cabins are a bit on the small aspect. Each cabin does have a shower and bathe, however the measurement is simply too small to be snug for most individuals, particularly if the house owners intend to dwell onboard full time. On a ship this measurement I’d advocate that there be not more than 60 joint house owners so every can have two cabins and may have the choice of changing these two cabins right into a two room suite. To maintain the numbers easy let’s imagine that this ship has 50 patrons who every purchase 2% of the ship. Purchase in price per proprietor would then be $10,000. If there have been solely ten patrons, then the acquisition price per purchaser can be $50,000. $50,000 is not going to purchase a lot of a home on land, however on this ship it might purchase 10% of a ship just like the Vergina Sky and twelve cabins that could possibly be transformed into a reasonably large residence.

On the financial system finish of the dimensions, a co proprietor might purchase 1% of a cost-effective cruise ship for about $5000. Nevertheless it’s not crucial for all co house owners to have equal shares within the ship. Possession can simply be divided up into 1% increments. If one purchaser needed 5%, then his price of acquisition can be $25,000. He can be entitled to five% of the ship’s cabins, and would have 5 votes on operations and administration of the ship, corresponding to itinerary planning.

Earlier than changing into a joint proprietor, it might be crucial to seek out different individuals who have related objectives. I’d counsel composing a preliminary DCCR (DECLARATION OF
COVENANTS, CONDITIONS AND RESTRICTIONS). You are able to do this earlier than you even store for a ship. Write your model of the way you envision the shared possession of a cruise ship accurately. Then see if yow will discover some individuals who agree together with your objectives and your DCCR, topic to some revisions and concessions to accommodate different joint house owners.

Step One: Decide for those who and your loved ones have the will and monetary functionality to turn out to be joint cruise ship (or megayacht) house owners.

Step Two: Discover others who agree together with your idea for shared possession of a ship.

Step Three: Store for a ship. That is the enjoyable half.

Step 4: Purchase a ship.

Step 5: Put the ship into service.

Even if you’re not wealthy, you’ll be able to afford to collectively personal a cruise ship. However then comes the following logical query: Why would you or anybody need to dwell on a cruise ship? Who would this be appropriate for?

In case you are retired or in any other case have a secure earnings from a reliable supply you most likely can afford to be a cruise ship co-owner and dwell full-time onboard a cruise ship. In case you work in a area the place you’ll be able to work at home on-line, then you can also most likely afford to turn out to be a co-owner of a cruise ship. Most fashionable ships have satellite tv for pc Web service obtainable 24-7.

Working a cruise ship is pricey. The bills embody the price of gasoline, labor, upkeep, repairs, spares, meals, port prices, insurance coverage, technical administration, shore administration, registration, and the opposite prices of working the ship. At first look these prices could seem costly, however in actuality the price of dwelling at sea is definitely a cut price contemplating what you get primarily based upon what you pay. The most effective worth doesn’t all the time translate to the most affordable value. If the ship is effectively managed, the administration will search the best high quality items, providers, and labor at the perfect international worth. If the house owners are dissatisfied with both technical or shore administration, they change them.

If there are lots of different co-owners of the ship to separate the working bills of the ship, it may be reasonably priced for these with a average degree of earnings, corresponding to a retirement test. I do have particular working price figures however I will not bore you with that information. The underside line is that it might not be prohibitively costly for a middle-class common particular person to have the ability to afford to personal a fraction of a cruise ship and be capable of afford to dwell on the cruise ship full-time in the event that they elect to take action.

For comparability functions it’s noteworthy that you’ve bills in land primarily based housing too. These bills embody property taxes, owners insurance coverage, upkeep and repairs, yard care, and utilities. Moreover you’ve got transportation prices and naturally meals prices. Most individuals additionally spend cash on leisure too. When these bills are added up the upkeep charges for dwelling aboard a ship are comparable.

There are literally some financial savings ensuing from dwelling aboard a ship. The ship’s govt chef buys meals and kitchen provides in bulk for the ship and may get higher costs than the typical shopper. Different financial savings outcome from the big freezers and the mobility of the ship giving the meals service administration the flexibility to refill on provides in international locations the place costs are low. Some crew and house owners might select to fish for leisure. This will provide some recent meals at even decrease prices to the house owners. Labor financial savings are realized when the crew is employed primarily based upon the most effective international labor charges. The legal guidelines of provide and demand drive costs down in some locations on this planet. Correct ship administration can capitalize on these disparities. All of the financial savings can be handed on to the cabin house owners leading to a cost-effective price of dwelling just like what you possibly can count on to spend with a traditional residence. Ship administration ought to have accounting transparency will all books (monetary data) open and obtainable for any proprietor to examine. Additionally ship administration ought to submit all monetary data quarterly to an out of doors auditor for the peace of thoughts of the house owners. Anyone within the chain who spends any of the ship’s operational funds must also be periodically audited. For instance, a great way to audit the chief chef can be for a number of of the live-aboard co-owners of the ship to go to the meals market district of every port of name and they need to attempt to haggle and get a greater value for a similar meals than the value the chief chef was in a position to purchase. If the chief chef can not discover higher offers than the ship’s co-owners, then the chief chef needs to be given his strolling papers. The chief chef place is an important place on a cruise ship. It is a place of belief as a result of he’ll invoice the meals he buys to the ship. He must not ever be tempted to just accept bribes from distributors or suppliers. Subsequently, he ought to know that he shall be routinely audited and any substandard efficiency will lead to termination of his employment.

The most important worth of all onboard cruise ship is in labor prices. The higher cruise ships are typically labor intensive, offering passengers with unrelenting consideration and lavish pampering. The resort workers on all cruise ships offers the essential providers together with meals preparation and serving, laundry, cabin stewarding, leisure, on line casino operation, magnificence store operations, That is one space the place I would favor to not scrimp due to the excellent worth in these providers as a result of low price of worldwide labor. I would favor to transcend the extent that almost all cruise ships go within the space of spas. Land primarily based luxurious and specialty resort spas are very costly, however the very same degree of service, professionalism, talent, and coverings could be supplied on a cruise ship at extraordinarily low price. Labor is the important thing and the first motive for a lot of the expense of spas. Labor is an amazing worth on a cruise ship as a result of the cruise ship managers can select employees from the worldwide market the place it’s straightforward to get the most effective worth for the cash.


Spa therapy is custom-made for every shopper. Spas generally supply providers corresponding to:

Soothing therapeutic massage therapies, pores and skin and physique remedies drawing from European and Japanese rules, skilled hair and nail providers, and a full menu of therapeutic remedies using a deep-cleansing facial at the beginning of this system, in addition to a sequence of detoxing and contouring wraps, lypo-reduction wrap, in addition to marine mud and herb wraps. Therapeutic massage Therapies together with: Swedish Therapeutic massage, Shiatsu Therapeutic massage, Deep Tissue Therapy, Maternity Therapeutic massage, Therapeutic Foot Therapeutic massage (Reflexology), French Hydrotherapy Therapeutic massage.

The therapeutic therapies embody a wide range of massages, reflexology, facials, firming and lots of different physique remedies. Plus all kinds of providers and wellness applications specifically designed to fulfill the person’s wants and wishes. A full service salon provides all method of hair remedies (together with an authorized colorist), in addition to a wide range of manicures, pedicures, and ‘facelifts’ in your palms. Intensive skincare contains: Age Administration Therapies together with, Glycolic Facial, Anti-Growing old Facial Peel, Microdermabrasion; Facials together with: Aromaplasty Facial, Teen Facial, Gentleman’s Facial, Nutrisource Facial, Regulating Zits Facial, Vitamin “C” Pores and skin Renewal Facial; Physique Remedies together with: Decleor Sauna Masks, French Hydrotherapy Therapeutic massage, Andromeda Salt Glow, Mummy Mud Masks, Seaweed Physique Wrap, Secure Solar Therapy, Natural Wrap; in addition to varied hair and nail remedies.

Moreover, spas can also facilitate weight discount applications, and even administer bodily remedy. Briefly, you could be handled like a king, on the price range of a pauper.

Labor Prices – Worldwide competitors offers probably the most worth to the ship house owners.

On paper it appears to make good sense to man the ship with a Philippine crew. I really like the Philippines. I’ve been there a number of instances. English continues to be extensively spoken and normally spoken fairly effectively. The individuals are normally pleasant and pleased to see international vacationers. A big proportion of ships worldwide are manned by crews from the Philippines. The Philippine authorities has a reasonably good construction and system to facilitate the export of Philippine labor. Despite how enticing it appears on paper, I’d advocate NOT hiring a crew from the Philippines. Philippine employees are typically envious of others, and particularly of everyone else’s wages. They have a tendency to suppose they’re getting the uncooked finish of the deal. It’s uncommon to discover a Filipino who’s pleased together with his employment. Whereas I’m positive there are lots of good staff from the Philippines, there are extra who’re dissatisfied than happy with their employment. There appears to be a cultural anomaly within the Philippines the place individuals really feel that employers are dangerous guys. I’d hesitate to advocate a crew from the Philippines despite the obvious benefits on paper.

My suggestion (for what it’s price)

I do know one thing about what I’m writing about right here. I’m the previous President of Journey Spa Cruise. My recommendation isn’t just uninformed ranting. Again to the purpose now, the second finest manning nation for a ship is India. I extremely advocate India for the medical workers and your entire resort workers, together with the spa, and each different place besides the deck and engineering. The labor prices in India are very enticing. I’d additionally advocate utilizing an Indian primarily based manning company. It’s best if the ship’s house owners do not need to cope with each worker problem or concern. The manning company takes the stress off the ship’s administration, and their service could be very cheap. Indian staff are likely to make higher staff than do Filipinos. Indians additionally converse English, albeit not fairly in addition to Filipinos. I do know Individuals are likely to get all labored up when somebody makes use of a broad brush to color a whole ethnicity. I really like the individuals from the Philippines, however as staff they are typically extra problematic than do Indian staff. I understand that this assertion is politically incorrect, and today which may get me thrown in jail. I normally don’t worry a lot about being politically right. I name it the way in which I see I and I let the playing cards fall the place they could, and hope I can keep out of jail for talking my thoughts.

All deck and engineering positions needs to be full of an all Ukrainian crew. The ship will understand probably the most worth for the cash with Ukrainian deck and engineering workers. The Ukraine has a protracted maritime historical past and custom. Maritime coaching and requirements within the Ukraine are among the many finest on this planet. Ukrainian deck and engineering workers are nearly as good as or higher than another, however the price of their labor is an excellent worth. The labor for deck officer and engineering workers are ruled by worldwide agreements, together with STCW (Requirements of Coaching, Certification and Watchkeeping for Seafarers).

Placing a cruise ship into service

After buying the ship, it’ll require some extra funding to place it into service. At this level the joint house owners might want to attain some agreements on many factors. The price of placing a cruise ship into service as a megayacht (very giant personal yacht) is far lower than placing the ship into business service. Nevertheless, for those who can afford to purchase a ship can simply meet SOLAS 2010 necessities, and may afford to flag and register it as a business ship then you should use the ship commercially to supply earnings and ROI (return on funding).

There are numerous advertising and marketing choices for a business cruise ship. If the house owners use not more than half the cabins, then that may go away ample means to supply sufficient income to no less than pay for working prices, and probably produce a revenue above working prices. I’ll simply briefly contact on a number of the choices obtainable for advertising and marketing cruise ship capability.

1. Typical cruises. There’s a trade-off right here. You’ll be able to produce income by offering standard cruises. This may require that the ship have an itinerary that fits the business cruising market.

2. Freight and cargo. Some cruise ships have sufficient cargo capability to supply some income by reserving freight.

3. Assisted dwelling. A cruise ship is effectively fitted to assisted dwelling, together with crew and amenities. The going price for assisted dwelling within the common metropolis in America is larger than the typical price of a cruise of the identical period.

4. Timeshares. That is an possibility not obtainable to standard cruise ship operators however could possibly be facilitated in case your co-owners comply with the sort of advertising and marketing to fill cabins not utilized by co-owners. I can’t go into the figures right here, however timeshares are typically excessive revenue gross sales. There’s a good probability that if the joint house owners use not more than half the ship’s cabins for their very own private use, the remaining cabins might simply produce greater than the overall quantity all of the joint house owners mixed have invested.

Ships that may simply meet SOLAS 2010 are likely to price a bit more cash to purchase up entrance, and price extra to place into service. So I will provide you with couple of examples.

The Orient Venus is one in all my favourite high-end ships. The specs:





GRT: 21,884 TONS

DWT: 4,863 TONS ON 6.50 M

LOA x B x D : 174.0×24.0x8.7 M




FUEL TANKS CAPA: IFO 1,500.4 M3 /MDO 87.30M3









OWNERS PRICE USD 22 MIL web right here

My private evaluation of the Orient Venus

It’s a late mannequin and exquisite ship. It has many extremely fascinating attributes for a residential ship. It’s a excessive finish luxurious cruise ship with a very excessive tonnage to passenger ratio. This is essential for a residential ship. Extra front room and more room per passenger is way extra important for a residential ship than for a traditional cruise ship. When passengers are solely on a ship for a short while, they will tolerate cramped dwelling quarters, however once they dwell year-round on a ship, the additional house is kind of priceless. The house owners have been making an attempt to promote this ship for $22,000,000. That will look like a excessive value, however whenever you divide it by the variety of cabins (195) the asking value per cabin is $102,564. This value is in keeping with what you’d count on to pay for a condominium. The final phrase I obtained from the house owners is that they may promote the ship for $18,000,000 now ($92,307 per cabin). The cabins are all “outdoors” cabins and are giant. The ship can accommodate 606 passengers and a crew of 120, for a complete of 726 individuals.

A number of ship brokers have this ship listed. I normally don’t discuss to ship brokers. I want to speak instantly with the ship house owners. I’m involved with the house owners of the Orient Venus. I might most likely get this stunningly lovely ship for lower than $15,000,000 as we speak, and get some concessions and extras thrown in besides.

One other instance of a excessive finish ship that may make do effectively as a business cruise ship, plus accommodate 100 or so full-time dwell aboard co-owners is the Dream Princess, initially named Music of Norway.

GRT: 22,945

Max Draft: 6.7 M in sea water

Size: 194 M.

Complete No. of Cabins: 538

Complete No. Of Beds + Berth: 1280

Outdoors Cabins: 346

Inside Cabins: 192

Cabins measurement vary: SQ. M: 11 -18.

Principal Engines: 4 Wartsila Sulzer – 18,000 HP.

Service Velocity: 16 Knots.

Public Rooms:

Principal Dinning room – “King & I”- about 500 pax.

South Pacific Lounge about 400 pax.

My Truthful Woman Lounge about 500 pax.

Bars- 5

Self Service Restaurant on the swimming pool deck

Massive Swimming pool


On line casino

Obligation Free Outlets

Health club

8 passenger decks

in depth out of doors areas

Ship was redecorated / refurbished extensively throughout 2005.

The asking value on this ship is $31 million USD. Divide the asking value by the variety of cabins and the typical price per cabin can be $57,620. After all some cabins are higher than others so co-owners must agree of the shared utilization earlier than agreeing to the acquisition.

I’ve some dangerous information for the ship house owners and a few excellent news for you. This ship is not going to promote for the asking value.


Ship gasoline is cheaper than car gasoline for a number of causes. There aren’t any highway taxes on ship gasoline in fact and in addition it’s completely different gasoline. Ships predominant engines normally run on IFO180 or IFO380. Generator engines are typically extra finicky and generally require diesel (MDO), which continues to be cheaper than automotive diesel. IFO 180 and 380 prices a lot lower than MDO, normally about half the value. Ships eat a number of gasoline. So gasoline price is a significant concern. I’ve some ideas. If I had been a co-owner of a ship I’d be prepared to speculate a little bit extra within the ship to extend gasoline effectivity, and thus decrease working prices. There are numerous issues that may be achieved to extend gasoline effectivity. I’d begin with hull resistance. There’s a new silicone-based paint from Worldwide Paints that when utilized to the hull reduces quantity of resistance within the water sufficiently to lead to a 3 to five% lower in gasoline consumption. An analogous coating for the propellers additionally has been confirmed to extend gasoline effectivity.
Along with hull and prop coatings, there may be an much more promising option to obtain dramatic gasoline financial savings.

There’s a firm known as Kiteship that has developed and produces kites for racing sailboats. These crusing kites don’t require a mast. The kites fly excessive above the vessel, connected by cable and managed from the vessel. Dave Culp of Kiteship has achieved a technical feasibility examine on becoming a really giant kite onto a traditional cruise ship. This could dramatically scale back gasoline consumption. It could convert a gasoline guzzler to a “inexperienced machine.” That is tantamount to changing a powerboat right into a sail boat. The design of a cruise ship limits the quantity of sail {that a} standard ship can safely accommodate. A cruise ship lacks the ballast of a sail boat. If used along with the primary engine(s) the kite will improve gasoline effectivity. If the kite is used to tug the ship with the primary engines shut down the ship’s velocity shall be lowered considerably. Nevertheless, on this case, not solely would the ship save IFO (predominant engine gasoline) but additionally save MDO (generator engine gasoline). If the kite had been pulling the ship unassisted by the ship’s engines, then the propellers could possibly be used to propel the ship’s mills with out firing up the diesel generator engines. Even when the ship had been touring very slowly within the water, the propellers would flip in reverse if free of the primary engines. It is a quite simple and straightforward job for the ship’s engineer to perform. In different phrases, the ship could be pulled by the kite, and that movement will push the ship’s propellers offering energy to supply electrical energy and energy the air-conditioning with out utilizing any gasoline. The trade-off is a lack of velocity and in addition some tacking is required, additional decreasing precise velocity. What is the rush? Why not go for max gasoline financial savings? The salient level is {that a} excessive flying giant kite can pull a cruise ship. If I had been a co-owner of a cruise ship I’d hope to seek out like minded co-owners who can be receptive to utilizing such state-of-the-art applied sciences to save lots of gasoline.

There are a whole bunch of cruise ships in the marketplace however I’ll simply point out yet another right here. This cruise ship has RO/RO (Roll-On, Roll-Off) functionality. This could be very handy for dwell aboard house owners who need to deliver their “toys” with them. The storage deck will accommodate 6 to eight vans, or 60 to 80 vehicles. That converts to a number of co-owner toys corresponding to motorhomes, journey trailers, campers, cabin cruisers, ski boats, jet skis, sailboats, houseboats, bass boats, bikes, ATVs, vehicles, and vans.




SOLAS 2005/2010 FITTED








GRT 12637


























Value per cabin primarily based on asking value, $71,739. This ship will promote for lower than asking value. It’s already SOLAS 2010 compliant. It could price little or no to place into business service.


Turning into a co-owner of a cruise ship just isn’t a far fetched thought. It’s sensible and possible if you’ll be able to discover like minded individuals who can be prepared to share the bills.

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