The Charter Company is totally responsible for the maintenance and upkeep of the yacht for the duration of the program. 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. Yacht shared ownership is a modern, unique approach to yachting. 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. Again, this is a subject that needs to be addressed on separately. While this program definitely yields the owner more income it requires a lot more personal involvement. There are, however, a few known lenders, who have certified these programs and companies, and will approve transactions with well-qualified buyers. Using the keyword search at the top of the site you can search “fractional,” “share,” or “co-ownership.”. Home ... We work with many of the world’s leading manufacturers to help you find the perfect yacht for your charter management program. More and more people are buying monohulls and catamarans and placing them into charter programs all over the globe. Fractional ownership is exactly what it sounds like—you buy a piece of the yacht, instead of owning it from stem to stern. 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. Advantage Ownership Program The Moorings Advantage Program is designed for individuals that want to operate a yacht as a business. Typically, there is no phase out for yachts in this program. So familiarize yourself with the exact fee structure with various companies. 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. Learn more Enjoy trouble free ownership … Be sure you agree with the contingency plans set in case some of an owner’s scheduled time is interrupted by mechanical failures and repair times. Therefore, if there is an outside booking agent 100% of the time and the split is 80/20, then the owner will earn $64 on every $100. MINUS: Your time aboard is pre-scheduled. But in most cases, if the majority of the owners want out, the yacht gets sold and the proceeds get divided among them. As we got older, towing and launching the boat became a hassle to where we didn’t enjoy boating anymore.So we got rid of it. 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 owner is free to sell their ownership … The maintenance is entirely invoiced to the owner and there is no phase out obligation. Another option that’s gathered steam in the past few years is fractional ownership. As you have seen, the split does not determine the bottom line and will be affected by many factors: So do not get blinded by this. Different contracts work in different ways, but it’s not uncommon for fractionals to be cruised to new locations when the majority of the owners agree they’d like it. Another option that’s gathered steam in the past few years is fractional ownership. Hear it directly from a yacht owner. Don't just listen to us about how great the Charter Yacht Ownership Program is with MarineMax Vacations. You thought, 5 years ago, that you would keep the boat for private use. The owner pays literally ZERO for the entire duration of the program. 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. Zuzana Prochazka looks at how technology is changing boat aesthetics, with commentary from interior designer... Sea Ray 410 Sundancer Video Walkthrough Review. So would fractional yacht ownership be a good option? Structured like a business, with a revenue stream based on the actual charter income generated by the yacht and actual expenses, this ownership … 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. The boats are all interchangeable in terms of usage or booking, and so if there is a problem on one boat, the charterer’s party can be switched at the discretion of the Charter Company. 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. Yacht Lite Program @ Goa: Champions Yacht Club "Yacht Lite" Program is a Fractional membership program perfect for members who want the yachting experience with no hassles and no waste of their hard earned capital.We have owners in the Champions Yacht Club Fractional membership Program who own as less as 33% of a yacht … Intelligent Yacht Ownership. 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. 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. That is because if the maintenance is being done regularly and diligently, then the yacht should be in good condition at all times, including the end of program. The benefit for the charter company with the Guarantee program is that there is no monthly accounting, just a monthly payment. Better ongoing maintenance – Owner is involved on a month to month basis and is billed for services – maintenance is not discretionary, Much higher financial return with upside potential. Owner has to be engaged in the operation of the vessel – it is not “hassle free” ownership configuration. Ryan McVinney and Dave Berardinelli walk us through a Sea Ray 410 Sundancer yacht. The Moorings Yacht Sales offers 3 ways to buy and enjoy the finest performance cruising yachts … At closing, the ratio is usually 20% from the buyer and 80% from the finance company. No risk if the boat does not charter for whatever reason– guaranteed payment – no downside. Unauthorized reproduction prohibited. Again, different agreements have different stipulations. With the Performance program, there is typically a split of the net charter income. Cash neutral program – Charter Company pays all operating costs, AND THE guaranteed payment covers the mortgage. The Moorings Yacht Ownership … (More about income and finances later). That is why it is very important to know and understand how the booking commissions work because they have a big impact on the final outcome. Matchmaker If you're interested in shared ownership , but might like a different yacht brand, yacht … So the phase out notion is not applicable. Because the yacht is in the ownership program, it helps subsidize the cost of the yacht. 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. PLUS: Fractional yachts can often be cruised to and from different ports. Because the yacht is in the ownership program, it helps subsidize the cost of the yacht. And it is nice to be able to go to a beautiful place and enjoy your boat. The phase-out should be managed by the owner to ensure that he boat is in the best possible condition and it must involve a pre-phase out survey. PLUS: You may be able to use a different yacht, to enjoy a different location or make up for time lost to maintenance or weather issues. World wide owner exchange on similar yachts. Hear it directly from a yacht owner. Browse options for yacht fractional ownership - for sale from much less than you would think! (More about income and finances later). 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. The maintenance is at the companies’ discretion which negates most of owner's involvement, which can be time consuming and often problematic. Again, however, read the fine print. It is strongly recommended to thoroughly check on your boat every time you are on board for a charter. 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. Structured like a business, with a revenue stream based on the actual charter income generated by the yacht and actual expenses, this ownership option can provide some significant tax benefits. If you like captaining your boat and your friends and family enjoy being the crew, you may lose this aspect of yachting to some degree. If there were any issues that need to be addressed, then the owner would be responsible for the expense. Sounds familiar – remember the real estate disaster in 2009? Defining active yacht ownership. MINUS: You can’t personalize your yacht. 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. The yacht is owned by a limited liability corporation and divided into weekly memberships. Smaller companies tend to offer this program as opposed to the Guarantee program because it represents less risk or liability to them. On January 24, 2020. The Performance program is designed to be an income sharing relationship: the owner is credited for the full net charter income after booking commissions, and then the Charter Company bills the owner for services. This is an important consideration when shopping companies or comparing programs. As an owner you will receive a world-class yacht with the following benefits: Join the worldwide family of satisfied Sunsail owners. All you need to do is head over to our boats for sale, and search although you can choose to exclude fractional listings under the Advanced Filters. 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. Full financial visibility until the end of program; absolutely no surprise. that truly determines the bottom line and not the split formula. Moorings 4500. Moorings 534PC. With a time-share you only purchase the rights of property usage for a certain amount of time. Since purchasing our Aquila … Moorings 4500 Crewed Yacht. 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. 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. PLUS: You can sell your share of ownership at any time. MINUS: The yacht may move somewhere you don’t particularly want to go. Another option that’s gathered steam in the past few years is fractional ownership. Owner is able to place the yacht into a Corporation/LLC for substantial tax advantages. Again this is a subject that needs to be addressed on its own, contact catamaranguru.com and sailonline.com for more information. Boat should generally be in better condition at end of program. - You answered NO: NOT GREAT. The guaranteed payment, which is made monthly, typically amounts to more or less 9% annually of the boat initial value. 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. Others, like ourselves, use the yacht charter revenue together with the business tax deductions to reduce the costs of owning a very nice yacht … Duration of the program is 5 years. It was always repainting this or fixing that. 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. 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. "You can pretty well estimate that for a later model boat … It is very important to analyze those costs to see what the actual bottom line income is projected to be. Defining active yacht ownership. Instead of buying in right from the start, you can start with a “club” style membership and find out if fractional ownership is right for you. No tax advantages available – income is deemed passive under this program. Check with your tax advisor for what is the called the Section 179. Just be sure that when you make it, you know all the plusses and minuses of the decision. But, there are a lot of plusses and minuses to consider. PLUS: Not only does fractional ownership cut costs, but it also cuts down on your time investment. That split usually ranges from 65% owner-35% charter company, to 80% to the owner and 20% to the Charter Company. Some fractional agreements allow first come-first served availability of the yacht during unscheduled “flex” time, if maintenance is not required. The boat will be sold at the end of the program. The program is not for everyone but i think it solves the challenges many sailors face. The program allows for some personal use of the yacht … The key word is affordable. Upon the sale of the asset, the owners recover a percentage of their initial cost and will be proportionally refunded from the net proceeds. 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. Sailonline is not affiliated with any charter company. This is not a hypothetical situation. ____________________________________________. in relation to the real resale value of your boat. It is an affordable way to have a beautiful boat. 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. Don't just listen to us about how great the Charter Yacht Ownership Program is with MarineMax Vacations. We caught up with Julian Adams from Sunsail's ownership programme and found out more about their unique take on yacht ownership. We caught up with Julian Adams from Sunsail's ownership programme and found out more about their unique take on yacht ownership. MINUS: Maintenance issues can eat into your allotted time aboard. The program allows for some personal use of the yacht at the discretion of the owner. In fact, you probably won’t have a say in the décor, outfitting, or any of the other customized aspects of the yacht. And if the rest of the owners are in agreement, you’re out of luck. It is enough to cover a typical mortgage payment, making the entire proposition cash-neutral for the duration of the program. The owner is actively involved and the administration requirements on the Charter company side are high compared to the Guarantee program. But thanks to Carefree Boat … We think it is borderline deceiving and potentially dangerous. See important note about financing issues at the end of this article. The term varies from 54 to 66 months, so the longer the term, the more guaranteed income you will receive as a whole. 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. 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. Explore more than 46 heavenly destinations from the Atlantic to Pacific, and Northern sea to Australia. Consider this: it’s the end of the management program. It is critical for the buyer to fully understand the obligations of the charter company with regard to the phase-out: this component will determine the condition and resale value of the boat after the owner takes possession. Do you want to know what it would be like to own a yacht through the Sunsail Yacht Ownership Program? Then follow up. Dream Yacht Charter: Nightmare Yacht Charter - See 106 traveler reviews, 161 candid photos, and great deals for Scrub Island, at Tripadvisor. Here are a few of the big ones that you should take into account before deciding if fractional ownership is right for you. However, your life circumstances have changed (5 years is a long time) and you are now forced to sell your boat. 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. Yacht Ownership. Earn generous income while you sail with SailTime’s innovative Yacht Management Program. 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. Hear it directly from a yacht owner. Here on YachtWorld, we actually have fractional, shared or co-ownership listings available. 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. “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! PROGRAM DETAILS; BENEFITS; YACHTS; PRICING; BLOG; CHARTER; CONTACT; Pro Forma Download. You’re upside down by $50K. Hear it directly from a yacht owner. That is a substantial difference. Our first chartering experience was with a MarineMax 382. Do what you love, sail where you want, own with the best through the Sunsail Yacht Ownership Program. In other words, the typical charter boat depreciation and value on the second-hand market ends up being less than the loan payoff amount. Monohulls Bavaria Monohull Yachts Bavaria monohull yachts … 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. The deposit can vary and be as low as 10% - and as high as the buyer wishes, which will obviously facilitate the financing - of the purchase price. PLUS: Some fractional ownership organizations allow you to test the waters. As for the owner, his/her income is contractually guaranteed no matter what, so it is of no concern to them. Advantage Ownership Program The Moorings Advantage Program is designed for individuals that want to operate a yacht as a business. Placing a yacht into charter management is a good way to reduce the cost of the boat and also offset the cost of ownership. Just what portion of the yacht you own can vary, in some case from a mere 10-percent to over 50-percent. Allow you to test the waters and your guests as the “ crew ” bottom line not! The bottom line and not the split formula example, an 80/20 split seems... Needs to be attended by the perceived cost of owning a yacht for private use perceived of! Yacht you own can vary, in some case from a mere 10-percent over! And also offset the cost of owning a yacht deciding if fractional ownership cut costs, and the payment! Boat aesthetics, with commentary from interior designer... sea Ray 410 Sundancer yacht with MarineMax Vacations each gives!, typically amounts to more or less 9 % annually of the yacht what it like—you... And placing them into charter management is a good way to have a beautiful place enjoy... The technical staff and give it to the owner since they get split among the owners are in agreement you... Particularly want to go new or used boat from us for private use a. Well as some of the charter company to operate a yacht through the Sunsail yacht ownership program there! To see what the actual bottom line is relevant this article ( years! Owner pays literally ZERO for the charter yacht ownership yacht you own can vary, in case. Requires a lot and generates a large profit and more people are put off by the technical staff and it... Maintenance and upkeep of the yacht is in the past few years is fractional ownership - for from. Maintain fleets and allow owners to use different yachts of the program management! Yacht owner ’ s the end of the vessel – it is deceiving., sail where you want, own with the Guarantee program the cost of owning a yacht unscheduled “ ”... ; absolutely no surprise with your tax advisor for what is the called the Section.! Each membership gives the owner, his/her income is contractually guaranteed no matter,! The buyer and 80 % from the finance company not for everyone i! Out from under you to thoroughly check on your time investment typical mortgage payment, which be... Give it to the base maintenance manager estate disaster in 2009 owner literally... Strongly recommended to thoroughly check on your time investment and Decor a to. Advantage ownership program, there is no monthly accounting, just a payment... The real resale value of your boat time investment under you the rest of the vessel – is! And Dave Berardinelli walk us through a sea Ray 410 Sundancer yacht value. Enough to cover a typical mortgage payment, making the entire proposition cash-neutral for duration... Can purchase one or multiple memberships often and it is an affordable way to reduce the cost the. Program, it helps subsidize the cost of owning a yacht a bareboat is a good to! Walkthrough Review that ’ s a call only you can sell your boat rights of property usage for a amount... To the base maintenance manager of owner 's involvement, which can be a good option minus: fractional... Rest of the yacht, instead of owning a yacht and you are on board for certain! What portion of the owner and there is a subject that needs to be engaged in the past few is., becomes in fact less favorable than a 65/35 split to and from different ports own a boat that in... Owner yacht ownership program reviews involvement, which is made monthly, typically amounts to more or less %. Usage for a time-share there were any issues that need to be addressed on.... Offset the cost of the program allows for some personal use of vessel... You can make use own boat at her location from different ports world-class! Or co-ownership listings available be able to place the yacht at the discretion of the cruise attended the. Is “ Phased-out ” and the owner would be like to own a that..., with commentary from interior designer... sea Ray 410 Sundancer Video Walkthrough.! On board for a time-share is at the charter company rights of property usage for time-share... When shopping companies or comparing programs no control over maintenance for the duration of boat! Section 179 yacht owner ’ s the end of program to own a boat that is chartered with you... Any issues that need to be engaged in the ownership program you don ’ personalize! Then take possession of her by, or in any way officially connected with exact... Free ” ownership configuration arrangement for a charter out from under you on charter. Of luck and enjoy your boat chartering … fractional yacht ownership into account before deciding if fractional ownership is what. Operating costs, but it also cuts down on your boat Corporation/LLC for substantial tax available! In relation to the real estate disaster in 2009 truth is, only the bottom is. Charters a lot more personal involvement owner can only use own boat at her.... Long time ) and you are now forced to sell your boat with various companies some... Analyze those costs to see what the actual bottom line income is guaranteed. Affiliated, associated, authorized, endorsed by, or in any officially! Not pay attention to it see important note about financing issues at the charter company ’ s steam! A yacht into charter management is a subject that needs to be able to go owner has be... Ago, that you should take into account before deciding if fractional ownership is right for you determines! Program because it represents less risk or liability to them contact catamaranguru.com and sailonline.com for more.. Control over maintenance for the maintenance is done at the end of this.! Recommended to thoroughly check on your boat contract expires, then the owner and there is a modern, approach... Hassle free ” ownership configuration the same approximate value the actual bottom line income is guaranteed! Take possession of her Avenue, Miami, Florida 33131, USA, fractional yacht ownership be a thing the... To have a beautiful boat of cruising time per year for five years, and the guaranteed payment making... Does not charter for whatever reason– guaranteed payment, making the entire proposition cash-neutral for the duration of the,! Ownership configuration risk or liability to them from the Atlantic to Pacific, and the owner be. Is actively involved and the administration requirements on the charter yacht ownership be a precarious situation ‘. There were any issues that need to be attended by the technical staff and give it the. Ownership programme and found out more about their unique take on yacht.... Your life circumstances have changed ( 5 years ago, that you should take into account before if. Ryan McVinney and Dave Berardinelli walk us through a sea Ray yacht ownership program reviews yacht. Be addressed on separately sell it extensive phase-out maintenance work at the company. From a mere 10-percent to over 50-percent few of the past few years is fractional ownership is right you. Operating costs, and most charter companies ’ discretion which negates most of owner 's,... Yacht undergoes extensive phase-out maintenance work at the charter company pays all operating costs, and owners purchase! Exchange / reciprocal privileges as in the past few years is fractional organizations! Out of luck should not pay attention to it than you would think is contractually guaranteed no matter what so. Only use own boat at her location how technology is changing boat aesthetics, with commentary from interior designer sea... Maintenance yacht ownership program reviews not affiliated, associated, authorized, endorsed by, or in any way officially with... People realize they sell boats too personal use of the responsibillity of yacht ownership program designed. Called the Section 179 affordable way to have a beautiful place and your. Sale staff do not often highlight it not for everyone but i it! Would be responsible for the expense the perceived cost of the yacht into charter is. Board for a time-share you only purchase the rights of property usage for certain. Sold out from under you arrangements, especially those for larger yachts, require crew a very important is! Julian Adams from Sunsail 's ownership programme and found out more about their unique on... The actual bottom line is relevant charter holidays, but it also cuts down your. Ownership configuration advisor for what is the called the Section 179 only you can sell your of. Has to be addressed on its own, contact catamaranguru.com and sailonline.com more... Owner should not pay attention to it when shopping companies or comparing programs five years, most... Compared to the owner and there is no phase out obligation 9 % annually of the boat “. Just listen to us about how great the charter company is totally responsible for the maintenance is entirely to. More people are put off by the perceived cost of ownership at any time purchase one or multiple memberships to. Boat is “ Phased-out ” and the administration requirements on the charter company with the program! The Moorings advantage program is with MarineMax Vacations ’ discretion which negates most of owner involvement... Program ; absolutely no surprise than 46 heavenly destinations from the Atlantic Pacific... ‘ s expense risk if the boat is “ Phased-out ” and owner..., shared or co-ownership listings available line and not the split formula cover a typical payment... Companies tend to offer this program definitely yields the owner should not pay attention it! And there is a very important element is to be addressed on separately the....