Fractional Ownership Of Jeanneau 44i Good or Bad Idea?

[rswanson]

Originally Posted by alansmith

Now that I heard there are 12 partners I have one piece of advice run away as quickly as you can. Disaster is looming on the horizon

Up to 12 partners but they seem to think there will be much less. That is why there is a management company to referee and make the decisions.

[Cadence]

Originally Posted by rswanson

Up to 12 partners but they seem to think there will be much less. That is why there is a management company to referee and make the decisions.

Initially said run and responded. It sounds as if you have made up your mind that is a good idea, I am afraid from a slick sales pitch. Or sails pitch.

The only one I can see coming out on the high side is the management co.

"Run Forrest run!"

[WindwardPrinces]

Originally Posted by rswanson

They explain and it makes sense that one party needs to be responsible. No guaranteed return but the fee's seem reasonable. When you add in revenue received by the owners for chartering the boat to others when not in use and depreciation because of the way the partnership is structured it seems pretty good.

I guess if you want sensible input from the community, you probably to provide all the numbers.

[dlymn]

I like sailing in one patch but that's because I own the boat and it's hard to move around over great distances. I like the idea of sailing in different countries if I could. Here's a company in the Ionian Greece that offers boat charters much like the annual share cost of the boat you're looking at Prices
They also charter out a 37 footer. Now if you could find prices like this around the world, you would be richer both in cash and culture.

[Lizzy Belle]

I always enjoy topics where the OP asks for advice, only to ignore both the advice and requests for missing info

Seriously though, looks like rswanson has made up his (her?) mind already, and isn't deterred by the 48 weeks in the water, unknown fees (or 'unsharable') and all the uncertainties (they say probably / they are talking about / it seems they).

So I guess the only thing left to say is: happy sailing!

[svGenesis]

The ideal situation is when you have 4-5 solid sailing people (usually good friends ect..)effectively share a boat with one person controlling (owner). dates are worked out, maintenance is scheduled, care and workmanship/propriatary knowledge is shared, issues seem to work out quickly! What happens if they charter it for a week and that captain grounds it or damages it?

[alansmith]

Got home from work and was checking the emails. Saw this solicitation from a multihull company overseas. It was for 12 partners and a gob of money. check this out...

Helia 44 Evolution Syndicate
Shares now available!
Due to continued demand, we are excited to announce the second syndicate opportunity to be based on Hamilton Island in the stunning Whitsundays. Shares in the upgraded Helia 44 Evolution are available to purchase to allow you 4, 6 or 8 weeks sailing per year.

Professionally managed and comprehensively equipped for comfort onboard, the Helia 44 Evolution will arrive on Hamilton Island in mid 2016 ready to go. Starting from $99,400 per 1/12th share, this is the most affordable way to own your own new yacht, with all of the management and maintenance worries taken care of.

Just step aboard and enjoy up to eight weeks of carefree cruising each year!

that is a lot of jing for an undisclosed amount of years. I agree with a previous poster that if the club is done right (he mentioned airplanes) it can be a good experience without owning your own plane. But I just have seen way to many problems in partnerships over the years. Frictions, bitterness, fraudulence, poor luck, accidents, carelessness, and unfair or unequal treatment.

[Sandero]

One should define the priorities with respect to "sailing". Sailing encompasses so many very varied aspects and needs and pleasures... it's important to "tune" the overall experience to match your needs and resources etc.


For example... people in the cold north love the idea of sailing in the tropics. To do that they need to get their northern based boat, equipped for the (ocean) passage south, set aside the time, undergo all the associated expenses... or

The can fly down and charter a "generic" boat and sail for X days and return.

And they can charter in multiple locations and different boats etc. Little commitment... and very different from having your HOME that you've tuned to your needs.

As much as I love sailing... if chartering was the only way for me to sail the tropics... I probably might do it. But I would much prefer a plan where I could sail my boat down and cruise for a bit.

On the other hand... I would probably not fly down and stay in a hotel in the tropics either!

I think boat clubs make sense for day use... a day activity... if you "get off" on sailing and prefer it to golf or tennis or hiking... or museums.... the other recreational/educational alternatives.

[Mirage35]

Any partnership arrangement like this is about sharing cost and risk, and often involves an expectation of profit on the part of one or more participants. Before making a decision:

1. Understand the costs (all of them) and who is paying for each.
2. Understand the risks (all of them) and who is on the hook for each.
3. Understand the profit expectations of the participants, and consider them against each participant's share of cost and risk.
4. Be aware that if there is a company involved it will be attempting to maximize its own profit and minimize its own cost and risk. Nothing wrong with that - it's how the economy works - but see point 3.

Applies to flying clubs, condo purchases, time shares, boat partnerships, charter boat ownership ...

And, whatever else happens, enjoy the sailing.

[Cadence]

Originally Posted by Lizzy Belle

I always enjoy topics where the OP asks for advice, only to ignore both the advice and requests for missing info

Seriously though, looks like rswanson has made up his (her?) mind already, and isn't deterred by the 48 weeks in the water, unknown fees (or 'unsharable') and all the uncertainties (they say probably / they are talking about / it seems they).

So I guess the only thing left to say is: happy sailing!

[Muckle Flugga]

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?

No. It definitely does not.

[Muckle Flugga]

Originally Posted by Lizzy Belle

I always enjoy topics where the OP asks for advice, only to ignore both the advice and requests for missing info

Seriously though, looks like rswanson has made up his (her?) mind already, and isn't deterred by the 48 weeks in the water, unknown fees (or 'unsharable') and all the uncertainties (they say probably / they are talking about / it seems they).

So I guess the only thing left to say is: happy sailing!

Ha ha.. always enjoy your commentary Lizzy Belle

[Kenthefenceguy]

It sounds like it is worth investigating. We bought a boat and put it in a Sailtime Fleet for 6 years and it worked out. Sailtime had a good clear contract and track record we could check out. The key is in the details of the contract: how you schedule your usage, how is insurance set up, how damages and expenses are accounted for etc. Do you get your name on the title or just the right to use it, because what security do you have on your $24k if the deal falls apart.

If you divide 52 weeks a year by 4 you come up with 13 users investing $24k each which means $321000 for the boat which is probably what you would need to spent to fully commission a 44' Jeanneau. So getting the time you want every year will probably be an issue. I suspect for the manager to be able to deal with 10 to 13 "owners" means you just get the right to use the boat for 4 weeks and not a true equity position which might be ok if the contract and management agreement is alright. The other issue is even if the contract is good, what country is it written in?

Befor I invested $24k in that I'd look at what I could do with $24k up front in a Moorings or Sunsail etc. fleet because they are a know reliable businesses.