Five Common Fractional Yacht Ownership Myths
by Relevance Web, 29th July 2014, 482 comments
Fractional asset ownership is an ownership model, which is becoming more widely known and popular throughout the world. The concept is being applied to many categories of high-value assets including luxury property, racehorses, wine, works of art and, of course, yachts.
When it comes to fractional ownership of yachts, there are still some misunderstandings, partly because the model is still relatively new. We have talked to one of the leading companies, specialising in yacht fractional ownership in Europe, SmartYacht to help us address some of the most common misconceptions about yacht sharing. Read on as the five most common fractional yacht ownership myths get busted.
1. Fractional is just another way to say timeshare
Fractional or co-ownership is often confused with yacht timeshare models which do not involve actual ownership. Timeshare involves the right to use an asset, rather than ownership of physical assets. Especially in periods of economic volatility, it’s essential for you to protect your investment. SmartYacht has developed an innovative structure to provide a high level of protection for your boat share investment.
2. I’ll never be able to reserve the yacht during the weeks I want
This is never the case with companies, such as SmartYacht, where fractional yacht ownership is organised so that each member has the right to reserve a certain number of weeks (according to yacht share) up to one year in advance. The weeks are fairly distributed over the year using a three season reservation system. Each owner is guaranteed availability of the yacht in each of the three periods: main, off-peak and low season. The three SmartYacht Seasons are as follows:
Main Season: approx. beginning of June to the end of September
Off-Peak Season: April, May, October, November
Low Season: approx. beginning of December to the end of March
For example, with a 1/3 share: this means that you have 12 weeks use in total, with four weeks in each season. The remaining free weeks are available to each of the members of the yacht ownership for short-term, flexible usage or to the managers for maintenance, overhauling or repairs.
3. Annual costs are going to be really expensive
The annual operating costs of fractional yacht ownership are generally around 8% to 12% of the new purchase price of the yacht. However, remember that you’re not on your own. Sharing costs with your co-owners is a smart way to share the burden. Costs are fairly and proportionately divided according to the yacht share percentage. Co-owners only pay for what they own and use.
4. Managing maintenance, the crew, shopping and insurance is going to be complicated
Owning a yacht requires careful management of several aspects, including crew management, administration, maintenance and shopping and provisioning. At SmartYacht, you’ll be able to make the most of your precious leisure time with the Service & Lifestyle Package. The Package is a combination of exclusive services, helping you to take maximum care of your asset with the minimum of hassle.
Maintenance: SmartYacht keeps yachts in top condition and arranges maintenance, mooring, cleaning and repositioning, so that all you have to do is step on board and relax.
Crew: Depending on the size of the yacht, a crew on board is included, but equally, if you want to operate the vessel yourself, SmartYacht provides comprehensive training and instruction from an experienced skipper.
Shopping service: The last thing you want to do when you arrive on board is head out to the supermarket, so the SmartYacht reservation system also allows you to order beverages and food before you come on board.
Administrative Services (included in share price): SmartYacht takes care of registration of the yacht and the ownership company. It searches for compatible co-owners and takes on the burden of co-ordination between the owners.
5. I might end up in a dispute with other co-owners
Being a co-owner of a yacht should be a pleasurable rather than a stressful experience and SmartYacht ensures that your ownership is anonymous and completely independent of other co-owners. In fact, you can sell your share at any time. Thereby, the property ownership is clearly separated from other co-owners, in order to guarantee free usage for all individual co-owners.