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 The basic concept of fractional
ownership is based on bringing like-minded individuals together to purchase large capital outlay assets typically with high maintenance expenses, time consuming management responsibilities and
sometimes high depreciation rates. When proper systems are in place and expectations are set from the beginning, fractional ownership arrangements work out very nicely for the customer. One of the biggest
perks to fractional ownership is the ability to get much more asset for the money.
When you consider you can now get a $2.5 M brand new state-of-the-art 52' luxury CABO sportfishing
yacht from Pacific Boats & Yachts, LLC. for the price of something roughly half that size, around $250,000,
you start to appreciate this ownership model. Typical yacht owners only use around 20 days per year and with
this single share you would have 30 days at your disposal. Now consider taking all the headaches of typical
yacht ownership out of the equation such as, hiring captain and crew, paying marina fees, handling taxes,
keeping the yacht cleaned and making sure that all of the subcontractors you hire are doing their jobs and not
just taking your money. Oh yeah, and did we forget about those high insurance premiums or minimal coverage
many owners have to deal with? Oil changes, tank cleanings and the list goes on and on. Forget about it, you
will never have to deal with any of that again! Now with the offerings of a professional yacht brokerage and
fractional yacht ownership company, you can live that luxury yachting life with the ease that we have been dreaming of for decades.
The history behind fractional ownership is long, however it was not until the late 1980's when NetJets
paved the way for fractional ownership in Jets that this concept really started making sense. With the luxury
of today's technology, companies can take advantage of the internet to logically handle all aspects of this
kind of asset management. A professional management company like Pacific Boats & Yachts, LLC can assure
easy and flexible scheduling of customers' time on the water. With a simple way to schedule time, customers are now finding fractional ownership much more appealing than in previous years.
THE BASICS of Fractional Boat Onwership
A fractional boat ownership plan offers a realistically priced means of enjoying time on the water. As with
all fractional plans, you purchase a share of the asset and are thus allocated an amount of usage time. This is
an ideal way to make the most of both your time and your money. An additional advantage comes in the form of managed maintenance. Fractional boat plans include a monthly fee that covers -
- A cleaning and valet service
- Mechanical maintenance and upkeep
- Insurance
- Mooring and dockage
- A crew for larger yachts
- Administration
- Emergency assistance
Costs
As well as the initial acquisition cost which pays for the purchase of the boat, there are two more
payments that owners need to make. A monthly fee covers the cost of the services outlined above. This is divided between the members of the plan, and varies according to how many owners there are and the size of
their respective shares. The size and type of boat is also a factor - larger craft will attract a higher mooring
and maintenance fee. The individual owners are also responsible for the cost of fuel used during their time onboard.
Usage and Time
Many fractional boat ownership plans are set up as LLCs (Limited Liability Company) in the USA. This
means an individual owner of a particular vessel is only liable for the money they invest. Boats are typically
available to owners for 35 - 40 weeks a year. The other 12 - 17 weeks are needed for maintenance of the
vessel. During this period, there is also the opportunity for people who couldn't use their allotted time to still make use of the boat.
The plans themselves usually run for between 5 - 10 years. At the end of this period the boat is sold and the proceeds divided up amongst the owners.
Contact us for more information at: 808 329-4066 or pby@pacificboatsales.com
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