What are your thoughts about fractional ownership?

[Andy64]

Originally Posted by garyfdl

I disagree. the owner who wants out doesn't 'set' the price.

The price is what was paid for the boat, plus/minus appreciation/depreciation, assuming the costs of repairs or improvements were shared equally. If the owner who wants out didn't contribute their fair share, that is also deducted from the price.

So do you think the price is the price is going to be too high or too low? You see the one who wants to exit the co-ownership is committed BOTH to buy or sell. If he sets the price too high he must buy the other guys share with overprice. If he sets the price too low he must sell too cheap. So he will have to set a correct price. And yes, if the owners owe each other money, that must be solved separately.



The whole idea of this kind of agreement is that nobody has to determine the disputable appreciation/depreciation of the boat.

[Drunkonwatch]

I suppose some people are into the “lifestyle” maybe it would work lol but long before I split ownership I would buy a lesser boat. Never seen it work unless it was a work boat arrangement.

[OneBoatman]

If you don't have enough problems in your life, this might be the solution. The other way to be a part time boater would be to charter a boat whenever you feel like sailing on a boat where you have no idea how things went for the captain before you. Whether you're just friends, family, or these other fine boaters happen to be your in-laws, co-owning something is probably not the best way to get to know each other. Each owner is both individually and jointly responsible for whatever happens. Each can keep a running list of what they think needs to be fixed next. Only you can decide, do you miss being in court? The good news is that strict liability cases are usually settled quite quickly.

[garyfdl]

Posted by garyfdl
I disagree. the owner who wants out doesn't 'set' the price.

The price is what was paid for the boat, plus/minus appreciation/depreciation, assuming the costs of repairs or improvements were shared equally. If the owner who wants out didn't contribute their fair share, that is also deducted from the price.

Originally Posted by Andy64

So do you think the price is the price is going to be too high or too low? You see the one who wants to exit the co-ownership is committed BOTH to buy or sell. If he sets the price too high he must buy the other guys share with overprice. If he sets the price too low he must sell too cheap. So he will have to set a correct price. And yes, if the owners owe each other money, that must be solved separately.

The whole idea of this kind of agreement is that nobody has to determine the disputable appreciation/depreciation of the boat.

I 'think' what I 'said' in the quote above your post.

The person who wants to exit co-ownership is not committed to buy out the others, unless that is in the ownership agreement.

The 'whole idea of this kind of agreement is' (usually) that it (supposedly) lowers the cost of owning a (larger) boat by spreading expenditures, 'not that nobody has to determine the disputable appreciation/depreciation of the boat'.
(IMO)

[Kolchac]

Do NOT do it!!!

[mrcarson]

The only Co Owned vessels I've ever seen work. Are Racing mates that race together and fishermen that do the same.
You have to have he same type of interests at THE SAME LEVEL to be fully compatable over yrs. 2 sailors I know started off with a Cole 23 50ish yrs ago. Now have a Farr 40. Still racing/Holidays (together with family's.
It can work but I wouldn't do it. I like me and my cat to argue with. and if anything goes wrong. Welll..... Nobody but my cat to blame hey! (chuckle). He just hisses at me and hangs on tighter with his claws. But still sleeps with me every night. even now we ashore.

[Icarus]

Originally Posted by Galumay

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.

Pretty much....unfortunately....

[Icarus]

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?

IMO a recipe for discontent.
Unless its a small harbour racer...but then why not owing it outright?
A cruising yacht to me is a personal thing...you like to come along..fine...we can split the running cost...
I am the skipper...

[Merrimac3]

We (my wife and me) have a lot of experience of fractional ownership of a sailboat. I must first say I can say nothing about the legal implication since I am Norwegian and our legislation is quite different from the US. However, I may say something about the human side. Our actual cooperative is called SY Friendship Five as it consists of five parts. It started the March 8th 10 years ago as 5 friends got together for “Skippers dinner”. We were friends from an Atlantic crossing in ARC 95 on 4 different yachts ranging from 35 to 52 feet. Since outside there was a lot of snow and sailing season some months away someone said, “Why don’t we buy a boat together in a warm place”. So we did and Friendship Five, a Bavaria 39 Cruiser, has now been moored in Greece 2 seasons and in Turkey 8. Now 10 years later the only my wife and I of the original owners are left, and so far all is fine. As you may have understood from the previous all original owners had a ton of sailing experience and all had a yacht of similar size back home. So all knew what the cost of maintaining a yacht is and that there is always something to repair or improve. We had a co-owners contract with a clear exit strategy. The responsibility of selling a share was that of the selling partner. Important is that all other owners must approve a new owner, and our first concern for a new owner is sailing experience and that that he is the owner of a yacht of similar size or has previously owned one. Most conflicts I have heard about in other fractional ownerships arise from people having little previous experience from owning a yacht.
Every year we have a skippers meeting in the low season when we both solve problems and have good party, after problems are solved. Important points on the agenda are:
• Distribution of the 25 weeks in the main season (April –September), 5 for each partner.
• Where the yacht will be moored in the next season.
• Planning of maintenance and renewal.
• Who does what?
This is our second fractional ownership, the first was only 2 parties. And we are still friends with all our previous co-owners.
Einar Alme
Sailing since 1964