There are 2 main types of boat share.
You can own a share of the boat with a proportionate number of days allocated for your use each year.
Or you can pay to use (normally by redeeming points from an annual allocation).
In this article I discuss the pros and cons of each system.
Let’s start with the advantages of owning a share of your yacht
- Your capital is invested in the yacht not the management company. This means that if the company gets into financial trouble your share of your boat is safe.
- You and the other owners of your boat have a vested interest to care for the boat and protect your investment – so your boat is more likely to stay in good condition.
- If you choose a reputable management company, only you and your fellow owners use your boat. At the end of the syndicate period you get your capital back minus depreciation.
So what are the disadvantages of ownership based boat share systems?
- You have to commit for a longer period – usually it’s at least 3 year period for a yacht syndicate unless you sell your share before the end of the term.
- And you have to make an up front capital investment.
And the advantages of pay to use boat time share systems?
- You don’t have to pay up front to buy the boat.
- It’s a shorter term commitment – often you can sign up for a year or less.
And finally the disadvantages of pay to use boat time share systems
- Your costs over three years can be as much as a fractional ownership system and you have nothing to sell at the end.
- Should the company run into financial problems you could lose any money you have paid to them.
- You have no control over who uses the boat – it can be up to 40 or 50 different people including visitors from overseas and interstate.
- There is no owner pride so there is less incentive to care for the boat.
So now you know about the different boat share systems the next thing to consider is…
First look at your Free Time. How many days each year do you honestly have free to go boating? Think about work, family commitments, seeing friends and other leisure activities you enjoy. There is no point in paying for more days than you need.
Now look at your Skills. Do you know much about looking after boats? Do you want to get involved in maintaining and cleaning your yacht? Or do you want to just turn up and go sailing?
Is Owner Pride important to you? Do you want to share your boat with fellow owners who have a vested interest in it and care about it? Or is flexibility more important to you than the condition of your boat? For more information on boat share systems head to own a Ship
And finally Money. Do you have some cash available to invest in your boat? Does a three year term with a guaranteed asset at the end sound appealing? Or do you need the flexibility of pay to use accepting that you will have no asset to sell at the end?