What are your thoughts about fractional ownership?

[Fore and Aft]

SailingBlue for us one of the fun parts of boat ownership is just tinkering around with little projects onboard. Often we are onboard 3 or 4 days a week. I am not sure how that would work with a partnership. We also like having our stuff in the lockers. For us when we go onboard for a trip all we bring is some extra clothes. Toothbrushes etc are already there. Same with food, plenty of staples ready to use, just fresh stuff to be purchased.
Brioche is not wrong about the wooden pelican. Good friends of ours getting divorced spent a fortune arguing over a set of dining chairs that to me looked like they came from Goodwill.
Cheers

[Galumay]

Originally Posted by garyfdl

First, I'm not obligated to read every post.

That said - yes, I did read your post, so what?

CONGRATULATIONS! It's working for you, so far..

I was an example where it didn't.

What's the problem?

Oh, and another way to ruin a friendship? Go into business together.

Ok, I am done here. Why is it that yachties are the most aggressively dogmatic absolutists out there? Time and time again I see these views being expressed not as opinions, just outright one dimensional facts.

Its worse here than any other forum I have been on or moderated in my 62 years, sorry, but life is too short.

[thinwater]

I've owned my own boat, and the last 5 years I have been in a partnership (F-24). It was NOT to buy a dream boat, but rather because and opportunity came up on a smaller boat I had my eye one, and it has saved a good bit of money. Tips:

• Never to buy a dream boat. If you can't easily buy it on your own you are looking for trouble. Dumb idea.
• Best if you have very flexible schedules. Remember, you all want the nice days. I frequently sail with one of my partners and we have a blast, but I would not enter a partnership betting on that.
• Assume you are going to do all of the work, just as though you owned the boat. You'll probably get help, but this mindset will avoid stress. And if you do the work, that will negotiate some percs.

So I'm semi-retired, in a partnership on a boat I could very easily afford, and this makes it even easier. It's been a good deal. If it went sideways, it's not that much money. But it went very well and we extended another 5 years. Just remember, the more money, the more likely people are to get weird.

[leboyd]

Listen to @Brioche.

Do it correctly or don't do it at all.

[garyfdl]

Originally Posted by Galumay

Why is it that yachties are the most aggressively dogmatic absolutists out there? Time and time again I see these views being expressed not as opinions, just outright one dimensional facts.

ROFLMAO!

Have you looked in the mirror lately?

Kettle, meet Pot.

Can casual joint ownership of a boat (or anything else) work? Sure!

But IMO (and experience)? The odds are against it.

If that makes me "the most aggressively dogmatic absolutist out there", so be it.

[Andy64]

Originally Posted by sailingblue

Curious if people have experience with owning a fraction of a sailboat with a couple of people.

Not referring to our heading from a company who sells to 10 owners. Specifically curious if anyone has teamed up with others to buy a dream boat to share ownership in.

Would you?

Have you?

I have owned fractions of sailboats. I think the most important thing is that you have an exit agreement before you decide to buy the boat. If you have two owners the exit agreement should be as follows: If owner X wants to quit the co-ownership, he must set a price. Owner Y has now the option to sell or to buy with that price.

This same logic also works if you have three owners. If owner A wants to quit he will set a price. If B and C both want to sell A has to buy both A´s and B´s shares. If B and C both want to buy then A will have to sell his share to B and C 50/50. If B wants to buy and C wants to sell then B and A must buy C´s share 50/50. If A still wants to quit he must set a price and B will choose if he wants to sell or buy.

[Stewie12]

A friend of mine and myself bought a yacht together many, many years ago. We got on fine but the problem was with our wives over who was or was not cleaning up after they used it. We sold the boat before we fell out over it and we then both bought our own yacht. We are still good friends.

[lo2jones]

I’ve done a lot of deals in sales: sharing ownership and financial costs is a great way to own a boat. The key is a solid contract, drawn up by a good transactional lawyer, or CPA that knows contract law. Even between friends, it can be the thing that makes the difference.

[mike10haken]

Bought a boat with my 15 year BEST FRIEND in 2008. Haven't spoken to him since 2015.

[GarryD]

Went into a partnership with two others a few years ago one of whom I didn't know.


First thing we did was to sit round a table and say how much cash we wanted to put into the boast for purchase and how much we were prepared to put in each month to cover expenses.


Used the RYA form as a contract between us - it is quite comprehensive as to what happens if the partnership breaks up etc - most people's worry.


Then we went out to look at some boats that fitted our requirements.


Took in turns to "own" the boat - if we didn't want it then the others took it over.


Mainly the other two sailed together and I sailed with my wife.


Best trip was for when one pair sailed to Lymington from Dover. The other pair came down and we swapped over.


Broke up when one of the others had a change of job and I then bought the boat outright.


We had different "jobs" on the boat - cleaning, general maintenance, finance. Also we had a check list that included fuel, water, tea, coffee biscuits etc. So that what state the boat would be in when handed over. Also a check list of the usual items that get lost.


One thing to avoid - someone who has a digital watch alarm set at some unearthly hour and you can't find the ***** thing!


Would I recommend it? On balance in my experience, yes. But possibly not for everyone,

[djhsailor]

I co-owned a 1981 Irwin 34’ sailboat on Lake Superior from 2000-2020, with 7 different partners. I’m a business lawyer living 4 hours away in Minneapolis and would get up to sail 6 or 7 weekends a summer, plus one or two maintenance weekends.

I started with a law buddy and bought the bought for about $20,000. I paid his asking price to buy him out after the first year. Then I advertised on Craig’s list for a partner. The written deal I offered was half of operating costs and depreciation for half interest in and use of the boat. I asked $3,000 - $3,500 per year and sometimes accepted lower offers. About half the partners helped me with put-in and haul out.

The arrangement worked great. My partners all called me to sail with them weekends or week long trips, when they couldn’t find friends/family as crew. Three became good friends and I still sail my new boat with them several days - weeks a year. I knew 3 of them beforehand and found 4 on Craigslist.

I probably should have used a limited liability company to make it easier to switch partners. I rarely put them on the title because of the bother and small expense. I did list them as co-owners on my boat insurance. We never had to deal with an insurance claim.

Even with partners, the boat was in the slip more than 1/2 the season. I didn’t want to pay !,000’s to have it sit in the slip when I could find and enthusiastic and eager partners to cut my carrying costs in half.

I bought a new bigger boat (1987 40’ Tartan) after I retired. I have more discretionary income now and don’t mind the expense. I’ve brought 4 of my old partners along for sailing trips on my new boat and look forward to more sailing with them.

[Giro]

Why should anyone who responds to posts get antagonistic? Those who wish to engage in that should simply become immersed in American politics.
Let’s all try to keep it light and wish everyone smooth sailing.

[djhsailor]

One more thing. Now I’m looking to buy 1/8th to 1/4 fractional ownership share in sailboat in the Windward/Leeward Islands of the Caribbean. I’ve had a hard time finding available shares over the last couple years since I started looking.

[NotSoOldNick]

I have owned a couple of fractions over the years. Recently sold my share in a 5-owner boat in Greece. Still have a share in a 4-owner boat in Caribbean. Never had any serious problems. All buying and selling was handled by yacht-fractions.co.uk. They handle all the advertising and legal stuff but charge a small percentage to the seller. If someone owns a boat outright but then wants to sell shares in it, they will also handle that.

[guitarrich]

We are in a syndicate of five (families) in our yacht.

I was hugely pessimistic about this, but my wife agreed to cover costs if it went wrong! That made it easier!!

We’ve now been in the syndicate for six years, and it’s been absolutely fantastic!

We didn’t know anyone else when we joined, except for the fact that my wife was selling a new yacht to the newly-retired couple from whom we eventually bought our share.

The syndicate has clear rules, which are easy to follow and everyone has to agree to them. I believe sample contracts are available online. Ours is VERY well thought out.

There has been some churn since we joined, but still no issues at all with our newer members. Everyone has different abilities, and whilst I’m one of the “fixers”, everyone has their own level of ability and input, and I wouldn’t necessarily expect anyone else to do the things that I do - eg occasional maintenance when it arises.

The yacht is kept in Greece, and we have a marina berth for the summer, making turn around days really easy. (24 hr fuel dock too!!)

It costs us ….. £2,000 per couple, per annum, for six weeks of use.

The yacht is a fairly elderly 1996 model Jeanneau 37.1, and with the usual care and sensible behaviour we have had very few technical problems. But when the windlass failed last year, we only had to stump up £windlass cost divided by five!! Joyous!!

We often horse-trade with other members when allocating usage slots (by zoom call in the winter), and often have 4-5 weeks in a row.

I was very reluctant to get involved, but now I’m a complete convert. It makes SO much sense, and is VERY environmentally friendly.

Does it feel like our own yacht when we’re aboard? Oh it most certainly does!