Fractional Ownership Of Jeanneau 44i Good or Bad Idea?

[rswanson]

I have an opportunity to buy a 4 week a year ownership of a Jeanneau 44i for $24,000. I can use all 4 weeks once a year or break up the weeks. There is a turnaround fee and a monthly management fee. The yacht will be sold after five years and the proceeds goes back to the owners. The main owner formed a management firm to handle all the management of the yacht. Does this sound like a good idea?

[l2ridehd]

What is the value today? Should be 48 weeks available to sell, so 48 X 6 = 288K. Is it a new boat? What are the maintenance fees? Dock fees? I have just bought a 44i and I figure about $2000 to $2500 a month for insurance, dock and maintenance. And a bit more every time I sail. What will it be worth in 5 years? How much of the 24K will you get back? Maybe 12K? Lots of questions to ask. Partial ownership can be a good deal depending on how much you want to sail.

[Lizzy Belle]

Originally Posted by rswanson

4 week a year ownership of a Jeanneau 44i for $24,000.// There is a turnaround fee and a monthly management fee.

At 6k a week + fees, wouldn't it be cheaper and much less of a hassle to just charter / rent a boat when you want to go sailing?

[Greenhand]

Originally Posted by Lizzy Belle

At 6k a week + fees, wouldn't it be cheaper and much less of a hassle to just charter / rent a boat when you want to go sailing?

That's what I was thinking, too.

[WindwardPrinces]

Originally Posted by Lizzy Belle

At 6k a week + fees, wouldn't it be cheaper and much less of a hassle to just charter / rent a boat when you want to go sailing?

I was thinking the same thing.

Less risk, and you can rent a boat wherever you want without the headaches.

[jackdale]

Originally Posted by Lizzy Belle

At 6k a week + fees, wouldn't it be cheaper and much less of a hassle to just charter / rent a boat when you want to go sailing?

That is 4 weeks a year for 5 years = $1200 per week plus turnaround and management fees.

[Lizzy Belle]

Sorry, my mistake.
So not much cheaper to charter (depending on location and season), but still much less of a hassle - IMHO

Other then that, there isn't much to go on - new boat, used boat, where is the boat, how many owners, how much are the fees - etc.

[l2ridehd]

Yes, $1200 a week plus fees, and something back when the boat is sold. So cost wise, a lot less then charter. If the fees are reasonable. And certainly a lot less then full ownership.

[dlymn]

Say to he owner "I want my four weeks always in the height of the sailing season" Then have them prove to you that this is possible. remember that you probably have to return to the same base and so the sailing better be good nearby.

[WindwardPrinces]

Originally Posted by l2ridehd

Yes, $1200 a week plus fees, and something back when the boat is sold. So cost wise, a lot less then charter. If the fees are reasonable. And certainly a lot less then full ownership.

I guess it depends on how much those fees/maintenance are.

[mcarling]

If you want to do four weeks of sailing per year, it may be a very good deal depending, as others have pointed out, on how much the fees are. Presumably, the maintenance fees would be an apportionment of the actual maintenance costs, so it comes down to the management fees.

[rswanson]

Originally Posted by Lizzy Belle

At 6k a week + fees, wouldn't it be cheaper and much less of a hassle to just charter / rent a boat when you want to go sailing?

Over five years I would get the boat for 20 weeks. If I use your $6,000 a week that would be a value of $120,000. I am paying $24,000. I am not sure how you get $1200 per week? Please explain. Are you are calculating "$2000 to $2500 a month for insurance, dock and maintenance" then keep in mind that amount which is high but it is to be divided between twelve owners. They are also talking about some potential tax write off.

[Calif.Ted]

A. Where are you ?
B. where is the boat ?
C. How much vacation do you have each year, 4 weeks ?
Will you want/be able to spend all of C going from A to B for vacation and back for the next 5 years ?

[Cadence]

Originally Posted by rswanson

I have an opportunity to buy a 4 week a year ownership of a Jeanneau 44i for $24,000. I can use all 4 weeks once a year or break up the weeks. There is a turnaround fee and a monthly management fee. The yacht will be sold after five years and the proceeds goes back to the owners. The main owner formed a management firm to handle all the management of the yacht. Does this sound like a good idea?

JMHO, run.

[rswanson]

Originally Posted by Calif.Ted

A. Where are you ?
B. where is the boat ?
C. How much vacation do you have each year, 4 weeks ?
Will you want/be able to spend all of C going from A to B for vacation and back for the next 5 years ?

B. The boat is currently in the Virgin Islands.
C. I can charter the boat if I don't use it.
D. They are talking about moving the yacht to the southern Caribbean during the hurricane season so I would see the southern Caribbean also. They are also talking about moving the yacht around to other locations around the Caribbean in different years.