How do you choose the Right Boat Share System for You?

The first choice you need to make is between the 2 main systems.

You can Own a share of the boat with a proportionate number of days allocated for your use each year - also known as fractional boat ownership.

Or you can Pay to Use (normally by redeeming points from an annual allocation) - also known as boat timeshare.

Let's take a look at these 2 systems.

Advantages of Ownership Based yacht share systems

• Your capital is invested in the yacht not the management company. This means that if the company gets into financial trouble your share of your boat is safe.
• You and the other owners of your boat have a vested interest to care for the boat and protect your investment - so your boat is more likely to stay in good condition.
• Only you can your fellow owners use your boat. It is never used by owners in other yacht syndicates nor visitors from other areas.
• Fractional yacht ownership schemes are preferred by NSW Maritime.
• At the end of the boat syndication period you get your capital back minus depreciation.

Disadvantages of Ownership based boat share systems

• You have to commit for a longer period - usually it's at least 3 year period for a yacht syndicate unless you sell your share before the end of the term.
• You have to make an up front capital investment.

Advantages of Pay to Use boat time share systems

• You don't have to pay up front to buy the boat.
• It's a shorter term commitment - often you can sign up for a year or less.

Disadvantages of Pay to Use boat time share systems

• Your costs over three years can be as much as a fractional ownership system and you have nothing to sell at the end.
• Should the company run into financial problems you could lose any money you have paid to them.
• You have no control over who uses the boat - it can be up to 40 or 50 different people including visitors from overseas and interstate.
• There is no owner pride so there is less incentive to care for the boat.

If you choose to own a share in your boat you have to think about whether you choose to look after your boat yourselves as a group or whether you want to go for a professionally managed yacht syndicate.

If you need help to decide we talk about the pros and cons of managed boat syndicate systems here.

So now you know about the different boat share systems the next thing to consider is...

...You!

• First look at your Free Time. How many days each year do you honestly have free to go boating? Think about work, family commitments, seeing friends and other leisure activities you enjoy. There is no point in paying for more days than you need.
• Now look at your Skills. Do you know much about looking after boats? Do you want to get involved in maintaining and cleaning your yacht? Or do you want to just turn up and go sailing?
• Is Owner Pride important to you? Do you want to share your boat with fellow owners who have a vested interest in it and care about it? Or is flexibility more important to you than the condition of your boat?
• And finally Money. Do you have some cash available to invest in your boat? Does a three year term with a guaranteed asset at the end sound appealing? Or do you need the flexibility of pay to use accepting that you will have no asset to sell at the end?

Here's some information about the differences between yacht and power boat syndicates

And if you would like more details about the tried and trusted Smart Boating Yacht Syndicate system head here.

Any yacht share questions?...

... Give David a call on 02 9997 5344 - he'll be happy to help

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