If you’re an avid boatie, you probably already know all about shared ownership for boats. However, some people don’t know what it is or why it’s helpful, meaning they could be missing out on an excellent opportunity. This shared or partial ownership is similar to a timeshare for a vacation home, but instead of property, you invest in a yacht or another vessel for water activities. Management companies offer this investment option as a fractional ownership or syndicate program, making it more affordable for everyone to enjoy ownership.
Pay Less, Get More
Places like Luxury Boat Syndicates allow you to invest in a larger and better vessel that you otherwise couldn’t afford. You spend less money, but you’re also not the sole owner of the ship. You can still pick the one that suits your needs best, such as those that are smaller or bigger to accommodate large families or groups. You, along with all other owners, get equal usage of the boat. However, this also means that you may have to schedule a time to use the vessel in advance to ensure that no one else has requested time.
Some management companies will allow you to buy multiple shares for the same vessel. If you and one other buy a boat, and you pay 2/3 of the cost of ownership and the other person pays 1/3, you may get more time on the vessel. However, it is important to read all the contract details from the management company before signing so you know what you can and cannot do financially.
What Happens After?
Once the syndicate period had ended, usually three to five years, you get your money back, minus depreciation, and can use that money to buy a share for another vessel of your choosing.
Be the first to like.