Friday, January 20, 2006

Cruise ships offer new property investment opportunity

Property investors in America could soon have a novel new investment prospect in the shape of cruise ships converted into apartments.

A shortage of waterfront property on America's Gulf Coast prompted Florida entrepreneur Mark Boyd to assemble a group of investors to purchase cruise ships being sold off by cruise companies and convert the cabins into apartments.

Each apartment suite will cost between $249,000 (£141,875) and $529,000 (£301,464) to purchase and will be subject to a service charge, or ground rent, of between $7,000 (£3,989) and $10,000 (£5,698) a year.

The $15 million annual bill for operating a mid-size luxury cruise ship will be financed by a combination of the ground rent as well as ongoing casino and nightclub operations aboard the ship.

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