Marina Boom in India ?

Imagine a super yacht anchorage and water-front entertainment village, a recreation complex for visitors and the residents of the surrounding city. Envision a deepwater port of entry with first-class berthing facilities, a thriving marine commercial park and foreign trade zone, and successful cruise and cargo industries. In yet another sign of the rich getting richer, an increasing number of people are buying pleasure boats. Livemint gets talking to some of the key players in the industry to find out the possibilities.

Ajay Narang, Yachting Association Secretary General
India is likely to attract global attention during the Volvo Ocean Race : the premier round-the-globe yachting event held every three years. Pleasure sailing is on a growth path. Kochi will provide the stopover and the Kerala Government will build a ‘racing village’ across more than 2.5 acres, complete with accommodation for sailors, officials and more than 700 back-up personnel for the seven teams, a food court, theatre for cultural shows, and a nearby guest house complex for an expected 20,000 domestic and international tourists.

Shakeel Kudrolli, Aquasail
Mumbai doesn’t have ‘good water quality’, the sea is choppy and the tide strong, and dredging can prove prohibitively expensive. Owners of yachts and smaller pleasure boats can dock their vessels in Goa, and plan their vacations around sailing.

Phiroze Contractor, MD, Ava Marine
All of a sudden, all these boats are being imported, we are overflowing, we have run out of space. A proper marina will save space, more vessels can be accommodated, and docking made easier, reducing damage. Other advantages: owners will not have to invest in dinghies to reach their yachts moored in deeper waters, supplies of fuel and water for cleaning boats will be easier, and spillage of oil—now carried in jerry cans—will be history.

Malav Shroff, Ocean Blue
It’s the typical Indian mentality…first they buy Porsches, then they think of roads. Now people are buying boats, they will think of building marinas later.
Shroff senses a huge business opportunity in the anticipated shortage in docking facilities, and others agree. To them, Goa, Chennai and Kochi provide the maximum opportunity.

Hope Floats for Real Estate in India !

A United Arab Emirates- based project development company, Rakeen, and Chennai-based mining firm Trimex Group plan to jointly invest up to $5 billion (Rs19,850 crore) over five years in the Indian real estate market. They have partnered to form a 50:50 joint venture company known as Rakindo Developers Pvt. Ltd. Rakindo plans to build a first of its kind marina outside Chennai on the East Coast Road to Puducherry in Tamil Nadu.. The marina will have resorts and luxury apartments. The company will also be building infrastructure facilities in the marina. The marina will be like a mini port of 3.5km. The company is looking at more such marina projects in India.

Boating Dreams: How to Buy a Yacht and Cash-In on it?

Would you like to own a yacht?
Would you like to pay for it with charter income & tax savings?
Would you like to dramatically reduce your 2008 income tax bill?
If you answered “YES!” to all three questions, keep reading.

Whether you're going to sail the open water, fish your favorite coves or chart a course to your dream retirement, buying a yacht is the adventure of a lifetime. You can find many exceptional values in both new and used yachts. To make sure you get years of pleasure and adventure out of your boat, buy smart!

CHOOSE YOUR BOAT

Choosing a boat is a very personal decision. Ask yourself how you wish to use your boat. Obviously you wouldn't want to go and buy a racing sailboat if your intention is to cruise the bay with family. May be you want to hold corporate meetings onboard as well?

CHOOSING THE RIGHT GEAR

Many boats come stock with excellent gear and electronics, but undoubtedly you will want to add an item or two to your new boat. Professionals can help you choose what gear best suites your needs and budget, install it for you and teach you how to use it. Have fun planning and putting together your new boat.

DEALER"S SERVICES

• Does your dealer have a certified staff of sales professionals to install and service your new yacht.?
• Are they licensed, insured and bonded?
• Do they have mobile dockside service to help you no matter where your boat is?
• Do they have emergency technicians available 7 days a week?

FINANCE YOUR BOAT RIGHT

Anyone purchasing a boat or yacht should carefully look at tax issues in developing a financing strategy since some loans can be structured to include tax benefits. An experienced marine lender will be able to explain the general tax implications of various financing strategies. As always, you should review these options with your accountant or tax advisor.

• Should I finance my boat, even if I can afford to purchase it outright?
Investment earnings can far exceed the cost of marine financing. Financing your boat or yacht could cost less than outright purchase if you choose to allocate that money for prudent investment in stocks or bonds, and take advantage of tax benefits.

• Will a boat qualify for a second home deduction?
Yes, if a boat has a place to sleep, a head and a galley it will qualify as a second home deduction.

• What does this give me?
You can write off all your interest expenses related to the boat, just as you do your primary residence.

• What restrictions apply?
The IRS only entitles you to one 2nd home deduction, so if you already own a home, it might benefit you to finance your boat through the equity in one of your homes

• Can I write my boat off as a business expense?
Many do write off their boats through their business; however you would want to meet with your own accountant to insure you followed IRS guidelines.

PLACING YOUR NEW YACHT IN A CHARTER

Is your concern about the cost of owning and maintaining a yacht keeping you from pursuing that dream? Then placing the yacht in charter with a reputable charter company can help you achieve that dream, as it has for thousands of yacht owners.
Placing your yacht in charter enables you to:
• utilize your yacht.
• help pay for it with charter income.
• take advantage of tax deductions that will dramatically reduce the cost of owning your yacht.
• You also will enjoy professional care and maintenance for your yacht provided by the charter company.
• Chartering enables you to use your time for boating — while letting an experienced service staff attend to the hassles of maintenance.


In general, here’s how the tax laws apply to charter boats. Chartering converts your yacht from a personal to a business asset. As such, your purchase of a yacht qualifies for tax deductions applicable to business investments, including a significant tax deduction in the year of purchase and on-going deductibility of charter-related expenses, while generating revenue to help pay for ownership expenses. This revenue is earned while your yacht might otherwise remain tied to the dock.
Thus to conclude, with the fundamentals covered - you are now set to pursue your boating dreams!

Marinas! India Gears for a Different Kind of Parking Lot

JOINT VENTURE : Marina Project Planned The Thiruvananthapuram-based Floatels India Pvt Ltd and the Sydney-based J.S. Parsons Structural Consultants Pty Ltd will work together to set up marinas in India. The two companies plan to form a 50:50 joint venture that will design and build marinas, said Mr. M.R. Narayanan, Managing Director, Floatels India, and Mr. Joshua Parsons, Managing Director, J.S. Parsons Structural Consultants. While Floatels India has interests in hospitality and construction, J.S. Parsons has worked on marina projects across the world. The joint venture company will be registered in India and will fabricate the marinas in the country. Land for setting up the fabrication unit has been identified in Kochi, they added.
Initially, the company will look at working on marina projects in India, Mr. Narayanan said. Over the period, it also plans to fabricate marinas in India and export them to other parts of the world, Mr. Parsons added.

MODERN MARINAS According to Mr. Narayanan, there is a need for well-designed, modern marinas in India. There is tremendous potential for water-based leisure activities in India, especially given the country’s long coastline. And modern marinas can help boost such tourism-related activities. In Kerala, the Government has plans to build marinas in Kochi and Alappuzha, he added. Marinas create significant employment opportunities, with every berth in a marina generating employment for up to 10 people, Mr. Parsons said. They also create economic benefits for associated industries such as boat building, restaurants and so on.

Fraction of a Boat? Consumers Invest in Assets, Transumers Invest in Experiences !

Wealthy people today do not only invest in assets- but in experiences. Experience is becoming more important than ownership. ‘Fractional ownership’ is a shared-ownership structure that allows people to buy only part of a costly item. Today there are many ways to have a fractional lifestyle. One such service, www.bagborroworsteal.com, sells the use of a revolving array of designer handbags and jewelry that can cost thousands to own but $20 to $175 a month to use. Buyavineyard.co.uk sells partial titles to some French vineyards; and several luxury hotel companies, including Ritz-Carlton and the Four Seasons, offer fractional ownership of some properties they own or manage around the world.

Transumers are consumers driven by experiences instead of the 'fixed'. They are those persons driven by entertainment, by discovery, by fighting boredom, who increasingly live a transient lifestyle, freeing themselves from the hassles of permanent ownership and possessions. The fixed is replaced by an obsession with the here and now, an ever-shorter satisfaction span, and a lust to collect as many experiences and stories as possible. The past is, well, over, and the future is uncertain, so all that remains is the present, living for the 'now'.
Why agonizingly wait for years (or even forever) to save up your hard earned cash to purchase the latest boat you've always promised yourself when you can have access, based around fractional ownership. Being part of a fractional boating club is growing in popularity not just because members can get on the water on some truly special boats , but membership gives you the lifestyle and exclusivity usually reserved for the privileged few.

Partnerships in luxury assets are not always smooth sailing. If you are already in a partnership that's been loosely managed, chances are its been a rocky road. Some of the problems heard of include:

• Diverging budgetary preferences
• Competition for planning & management control
• Simplistic and inflexible scheduling agreements
• Differences in willingness to do maintenance
• Poor asset care and use
• Lack of communication between owners
• Improperly managed expenditures

Thus to conclude, you are seeing it in recreational vehicles, soon you’ll also see it in helicopters. Just about every luxury asset you can think of can and will be fractionalized.