The benefit for the charter company with the Guarantee program is that there is no monthly accounting, just a monthly payment. Browse options for yacht fractional ownership - for sale from much less than you would think! “Factoring in the cost of maintenance, dock fees and insurance and the advantages of tax write-offs, hassle-free ownership and basically unlimited access, the MarineMax Charter Yacht Ownership Program just made sense. So would fractional yacht ownership be a good option? Another option that’s gathered steam in the past few years is fractional ownership. Our members enjoy the freedom to sail a larger newer yacht than they could afford to buy just about whenever they want plus they arent all tied up in the ownership cycle which allows them to charter guilt free in exotic locales all over the world. The Moorings Yacht Sales offers 3 ways to buy and enjoy the finest performance cruising yachts … Moorings 5000. Here on YachtWorld, we actually have fractional, shared or co-ownership listings available. Owner has to be engaged in the operation of the vessel – it is not “hassle free” ownership configuration. The program is structured so that after that deposit, the charter company pays for all the expenses including, insurance, dockage, maintenance and general operating expenses. You’ll see why.It goes like this: any loan with a 80% financing (the usual configuration) paired with a maturity higher than 10 to 12 years MAX, is guaranteed to put the buyer significantly upside down at the end of the charter program, simply by virtue of the typical charter boat depreciation and boat value on the second-hand market. As with the Guaranteed program, the purchase requirements with respect to financing, down payment, yacht specification, equipment and delivery to the base are the same as stated previously. “My wife and I used to own a boat but found that we spent more time repairing it than enjoying it with our family and friends! MINUS: The yacht may move somewhere you don’t particularly want to go. The yacht is owned by a limited liability corporation and divided into weekly memberships. You may have been chartering year after year but have you ever thought to own a boat that is in charter? No risk if the boat does not charter for whatever reason– guaranteed payment – no downside. This topic is all on its own and if more information is needed, go to the Boat Ownership sectionof this web site and look for the Phase-Out articles. AvYachts organizes yacht sharing for both buyers and sellers in a way that works best for you — responsible luxury. Defraying cost when buying a yacht isn’t a new idea; shared ownership with friends and family has always been one option, and some boaters simply choose to charter instead of making a purchase. Experience the joy of owning a first-class yacht and sailing in some of the world's best cruising grounds, all while receiving guaranteed monthly income in our charter yacht management program. While there is no charge for the actual charter, be aware that there are fees that will need to be paid, such as cleaning or turn around costs, diesel, water and ice etc, aka Turnaround fees. There are three options once the program has ended: private use, place the yacht in a second tier charter operation for another 5 years, or sell the boat. The owner is free to sell their ownership … Atlantic Cruising Yachts is the originator of Business Yacht Ownership ®, with years of experience assisting hundreds of successful boat owners set up their own yacht … As an owner you will receive a world-class yacht … Defraying cost when buying a yacht isn’t a new idea; shared ownership with friends and family has always been one option, and some boaters simply choose to charter instead of making a purchase. It is very important to analyze those costs to see what the actual bottom line income is projected to be. It is enough to cover a typical mortgage payment, making the entire proposition cash-neutral for the duration of the program. It is an affordable way to have a beautiful boat. As for the owner, his/her income is contractually guaranteed no matter what, so it is of no concern to them. That is because it is what the owner is charged for after the split  (costs of the price of services, booking commission paid to charter brokers, etc. Boat should generally be in better condition at end of program. Sunsail are well-known for their award-winning yacht charter holidays, but fewer people realize they sell boats too! We found that most yacht owners use this program as an avenue to acquire the cruising catamaran of their dreams for retirement at a huge discount. We see it often and it can be a precarious situation. Again, this is a subject that needs to be addressed on separately. Again, however, read the fine print. Most fractional arrangements include the yacht’s management, so you don’t have to worry about lining up contractors or dealing with maintenance when the boat is in the yard, or at a distant port. The phrase “active yacht ownership” refers to the strategy of purchasing a yacht and placing that yacht into a charter program to generate income, thus reducing the cost of yacht ownership. Bareboat vs. Crewed Yacht Ownership. And it is nice to be able to go to a beautiful place and enjoy your boat. At the end of the program, you can either take over the management and responsibilities of the yacht, sell her through our brokerage office, or discuss with us the availability of a "trade-in" towards the purchase of a new Sunsail yacht. Discover your passion for yachting with 10 premium … We think it is borderline deceiving and potentially dangerous. Fractional ownership is exactly what it sounds like—you buy a piece of the yacht, instead of owning it from stem to stern. For example: hourly labor rate, dockage and electricity costs, turn around costs, insurance or any other fixed or variable expenses the owner will be responsible to pay for. In fact, you probably won’t have a say in the décor, outfitting, or any of the other customized aspects of the yacht. PLUS: Fractional yachts can often be cruised to and from different ports. ____________________________________________. Placing a new yacht into the crewed program provides all the benefits of owning a deluxe sailing yacht minus the expense and challenges of traditional boat ownership. Or, buy a new or used boat from us for private use. MINUS: You can’t personalize your yacht. A bareboat is a vessel that is chartered with with you and your guests as the “crew”. Our Fractional Yacht Ownership Program was created to provide a surprisingly affordable way for you to enjoy partial ownership of fully-crewed luxury catamarans all over the world without the usual hassles of ownership. However, this does not mean that the owner should not pay attention to it. Ryan McVinney and Dave Berardinelli walk us through a Sea Ray 410 Sundancer yacht. Sunsail are well-known for their award-winning yacht charter holidays, but fewer people realize they sell boats too! The Charter Company generally earns less income from this program, with the owner benefitting more than in the Guarantee program, but the trade off is that the risk is shared. When the time is over, so is your investment. As with the Guarantee program, once the program has ended, there are three options: private use; yacht placement in a second tier charter operation for another 2 to 5 years; sell the boat. The Charter Company is totally responsible for the maintenance and upkeep of the yacht for the duration of the program. YachtWorld.com, 1221 Brickell Avenue, Miami, Florida 33131, USA, Fractional Yacht Ownership: Pros and Cons. Do what you love, sail where you want, own with the best through the Sunsail Yacht Ownership Program. As with the Guarantee program, once the program has ended, there are three options: private use; yacht placement in a second tier charter operation for another 2 to 5 years; sell the boat. But, there are a lot of plusses and minuses to consider. Because the yacht is in the ownership program, it helps subsidize the cost of the yacht. Upon the sale of the asset, the owners recover a percentage of their initial cost and will be proportionally refunded from the net proceeds. At closing, the ratio is usually 20% from the buyer and 80% from the finance company. Fixed return. - You answered NO: NOT GREAT. Advantage Ownership Program The Moorings Advantage Program is designed for individuals that want to operate a yacht as a business. Emma Coady discusses the best eco-toys and tenders to thrash around the ocean. No owner exchange / reciprocal privileges as in the Guaranteed programs: Owner can only use own boat at her location. Zuzana Prochazka looks at how technology is changing boat aesthetics, with commentary from interior designer... Sea Ray 410 Sundancer Video Walkthrough Review. There is a very important element is to be considered, and most charter companies’ sale staff do not often highlight it. That means those spur-of-the-moment boat rides at sunset may be a thing of the past. Sailonline is not affiliated with any charter company. The Phase out at the end of the program allows the charter company to address all outstanding issues at one time with an independent survey as guidance. The boats are typically priced fully equipped, delivered to the charter base and ready for charter so there are no more out-of-pocket or surprise expenses for the buyer after the initial deposit. That split usually ranges from 65% owner-35% charter company, to 80% to the owner and 20% to the Charter Company. In other words, the typical charter boat depreciation and value on the second-hand market ends up being less than the loan payoff amount. Full financial visibility until the end of program; absolutely no surprise. With the Performance program, there is typically a split of the net charter income. MINUS: Your time aboard is pre-scheduled. Yacht shared ownership is a modern, unique approach to yachting. Just what portion of the yacht you own can vary, in some case from a mere 10-percent to over 50-percent. Sounds familiar – remember the real estate disaster in 2009? The reality, often misunderstood by the boat buyers, is that the split is almost completely irrelevant and used as a marketing catch when it looks very favorable to the owner. It is an affordable way to have a beautiful boat. Defining active yacht ownership. Another option that’s gathered steam in the past few years is fractional ownership. Some fractional ownership companies maintain fleets and allow owners to use different yachts of the same approximate value. "The cost of ownership for a 60-foot, $1 million yacht is going to be about 10% of its value, or $100,000 per year," said Peter Schmidt, Founder of United Yacht Sales. Matchmaker If you're interested in shared ownership , but might like a different yacht brand, yacht … Because the yacht is in the ownership program, it helps subsidize the cost of the yacht. Initial The Moorings complaints should be directed to their team directly. While the boat is in service, the owners will have exchange privileges allowing them to sail on a similar boat at any of the companies bases worldwide. Another option that’s gathered steam in the past few years is fractional ownership. SailTime is the only ownership program that provides guaranteed sailing every month without sacrificing the potential income your boat … The program allows for some personal use of the yacht at the discretion of the owner. (More about income and finances later). In some cases the charter company will trade the boat in, or alternatively assist the buyer to sell the boat and upgrade to a new boat back into the program. However, your life circumstances have changed (5 years is a long time) and you are now forced to sell your boat. Once the financing approval has been received, the buyer will then typically pay a 20% to 25% deposit, while the balance of 75% to 80% is due upon completion of the yacht at the factory. Boats require a … No tax advantages available – income is deemed passive under this program. Most charter companies will have a phase-out program written into the management agreement that stipulates that the boat must be handed back in good working order except for fair wear and tear. Defining active yacht ownership. Moorings 4500 Crewed Yacht. This is not a hypothetical situation. For more information about The Moorings’ yacht ownership program… The term varies from 54 to 66 months, so the longer the term, the more guaranteed income you will receive as a whole. that truly determines the bottom line and not the split formula. Depending on the type of boat, configuration and location, the Performance program will yield 30% higher an income than the Guaranteed program to the owner. Advantage Ownership Program The Moorings Advantage Program is designed for individuals that want to operate a yacht as a business. Some fractional agreements allow first come-first served availability of the yacht during unscheduled “flex” time, if maintenance is not required. Charter boat ownership is in effect a great way to enjoy sailing for a few years without major expenses, AND own the boat at the end of the contract while having the charter income pay for some or all of the mortgage. Again, different agreements have different stipulations. Join the worldwide family of satisfied Sunsail owners. Join the worldwide family of satisfied Sunsail owners. Copyright ©2000 - 2019 Sailonline.com. The phrase “active yacht ownership” refers to the strategy of purchasing a yacht and placing that yacht into a charter program to generate income, thus reducing the cost of yacht ownership. Regardless of the buyer’s plans after the end of the management program, it is not a situation anyone wants to be in. Owner is able to place the yacht into a Corporation/LLC for substantial tax advantages. With a time-share you only purchase the rights of property usage for a certain amount of time. Others, like ourselves, use the yacht charter revenue together with the business tax deductions to reduce the costs of owning a very nice yacht … Home ... We work with many of the world’s leading manufacturers to help you find the perfect yacht for your charter management program. Similarly, because this is an income-sharing program, the owner needs to know what the costs are, and how they will be billed to him. When the contract expires, then the boat is “Phased-out” and the owner must then take possession of her. The key word is affordable. This can be an excellent way to defray costs as well as some of the responsibillity of yacht ownership. The program allows for some personal use of the yacht … The program is not for everyone but i think it solves the challenges many sailors face. In some cases the charter company will trade the boat in or alternatively assist the buyer to sell the boat and upgrade to a new boat back into the program. Check with your tax advisor for what is the called the Section 179. Generally speaking, the maintenance of a boat in a Performance program should be better because the Charter Company bills for services and the owner is involved in the management and operation of the yacht. As an owner you will receive a world-class yacht with the following benefits: PLUS: You can sell your share of ownership at any time. Typically, there is no phase out for yachts in this program. But with fractional ownership, you legally own the asset and can transfer or sell it. The owner is actively involved and the administration requirements on the Charter company side are high compared to the Guarantee program. The boat will be sold at the end of the program. The Moorings Yacht Ownership … MINUS: Your boat could be sold out from under you. Our Boat Buyer’s Guide will help you get through the initial steps of buying a boat, but once you take ownership of your pride and joy some budgeting and financial planning is in order. Julian, many people are put off by the perceived cost of owning a yacht. Learn how it is possible to offset 80% – 100% of the costs of a new yacht with business income, special financing options, and potential tax advantages*. No upside if the boat charters a lot and generates a large profit. Don't just listen to us about how great the Charter Yacht Ownership Program is with MarineMax Vacations. Learn more Enjoy trouble free ownership … We caught up with Julian Adams from Sunsail's ownership programme and found out more about their unique take on yacht ownership. Monohulls Bavaria Monohull Yachts Bavaria monohull yachts … Unauthorized reproduction prohibited. If you do not intend to keep your boat … You can find contact details for The Moorings above.. ComplaintsBoard.com … Our Fractional Yacht Ownership Program was created to provide a surprisingly affordable way for you to enjoy partial ownership of fully-crewed luxury catamarans all over the world without the usual hassles of ownership. Conclusion: In the end, the main aspects to consider for the boat buyer are his/her risk tolerance (financial visibility vs. potential upside, similar to the difference between a bond and a stock); need for tax benefits; attraction to exchange programs between locations vs. sailing in one cruising ground; interest in involvement in the yacht management vs. hassle-free experience. Fractional ownership … CW 's Elaine Lembo got down to the nitty gritty with seven charter yacht management companies to find out what really goes into owning a charter boat. That’s a call only you can make. This is an important consideration when shopping companies or comparing programs. Chartering year after year but have you ever thought to own a that! 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