Yacht Partnership in the Med

[Budawang]

I belong to a 3-way partnership of a 34-foot yacht in Sydney, Australia. It works out really well - I get on well with my partners, we share the maintenance and financial burden of owning a boat. I consider it provides great value sailing when you consider it is moored in a prime location on Sydney Harbour.

I was thinking of setting up a similar partnership (maybe 4 partners) which would purchase a boat in the Med. I'm thinking of something like a Beneteau 42 about 10 years old. The idea would be to buy a boat over there, keep it there for a year or two during which time partners could use the boat over summer. During the winter months we would keep it in a marina in Greece or Turkey - looks like that would cost about $2,000 for 6 months. After two or three years we would decide whether to sell the boat of sail it across the Atlantic to the Caribbean for a season and then maybe sail it back to Australia.

The reason why this looks attractive is that the Australian dollar is very strong these days. Not only is the purchase price low for us, but I assume most other costs would be too.

The people I would invite to join would have to be kindred spirits that I trust. Do people think this is a viable idea? Any idea what kind of annual costs would be involved? I'm thinking maybe $1,000 to $1,500 per partner (assuming there are 4) per year, including marina fees, slipping, hull cleaning, some maintenance, insurance, registration etc. This wouldn't include additional cost incurred while cruising. Does these seem realistic?

[David_Old_Jersey]

I think there are a couple of companies that organise this - Yacht Fractions? - possibly not exactly what you want, but could give you some ballpark figures (and comparisons between European Countries).

[Budawang]

Thanks. I'm not sure the fractional ownership model is what I'm after - I think that's where the purchase and all the ongoing costs are managed by a broker. In other words, there's a middle man doing everything and you just use the boat for the time allotted to you according to your share. Typically, the broker sells the boat (and takes a commission) after two or three years and you have to buy into a new boat.

In the arrangement I have here in Australia, we manage everything ourselves and we even drafted our own partnership agreement. Obviously you need a certain level of trust, but this has never been issue for us. Basically, the three of us are friends and never seem to have conflicts. I'd like to replicate the same type of arrangement for a boat in the Med.

[MacG]

@ Budawang

Your approach is much more sympathetic compared to those commercial agencies offering their costly services.
But then you have to organise such between fellow Australians: with a slightly larger boat even 2 couples can enjoy - as long as they go well together. That's why I say fellow Aussies.
They buy the boat themselves and after licking it up selling shares plus allotment, and will screw you out of every penny they can while the boat remains in their possession.

I should forget Greece, for political reasons, but a number of Turkish marina' s are exploited by UK based companies and with them you are able to make standing agreements. Berthon is one of them. Or you could keep the boat in Port Napoleon, Port St Louis, at the other side of the Med. and belongs to a Belgium investment group.
There are as many possibilities as there are marina's.
What you must foresee is a sharp rise in costs. Particularly Greece will fall victim to their huge financial problems and it is for sure that they will try to get the most out of their customers in the very near future. Croatia might be another option.

[hoppy]

Originally Posted by MacG

I should forget Greece, for political reasons

why?

I certainly would avoid it if the OP was looking to buy property etc... and perhaps it could be advisable to avoid having the boat as Greek registered or setting up a Greek company to "own" it.

If they raise taxes and charges then relocate it.

[Formidable]

Great idea. Have had Jeanneau 45.2 in Med / Adriatic since 2000. this is a 3 member partnership; like yours it works very well. Not sure what type of $ you are using; our costs are about £950 (stirling) per month, every month, that is:- annual marina fee, fuel, maint, repairs, ... everything.

[Budawang]

Originally Posted by Formidable

Great idea. Have had Jeanneau 45.2 in Med / Adriatic since 2000. this is a 3 member partnership; like yours it works very well. Not sure what type of $ you are using; our costs are about £950 (stirling) per month, every month, that is:- annual marina fee, fuel, maint, repairs, ... everything.

This sounds exactly what I'm after and what I'm currently doing in Australia. Thanks for the reality check with the costs. Is that £950 for all three of you and does it include your actual cruising costs as opposed to the base costs of keeping the boat? Does it factor in contingency for those, inevitable, years when you have to do costly repair work?

I had envisaged something in the 42 - 47 foot range and 6-12 years old. There seem to be huge numbers of ex-charter production boats on the market over there. I would be aiming at paying less than 100,000 Euros. Seems like that can be done.

[David_Old_Jersey]

Originally Posted by Budawang

Thanks. I'm not sure the fractional ownership model is what I'm after - I think that's where the purchase and all the ongoing costs are managed by a broker. In other words, there's a middle man doing everything and you just use the boat for the time allotted to you according to your share. Typically, the broker sells the boat (and takes a commission) after two or three years and you have to buy into a new boat.

In the arrangement I have here in Australia, we manage everything ourselves and we even drafted our own partnership agreement. Obviously you need a certain level of trust, but this has never been issue for us. Basically, the three of us are friends and never seem to have conflicts. I'd like to replicate the same type of arrangement for a boat in the Med.

I think these guys do pretty much the same as you want (i.e. no ongoing fees - nor management)......the bones of the deal being solely between the partners.

Yacht Fractions - yacht shares, charter management, yachts in Greece, Bavaria

What's currently on offer:-

Yacht Fractions Ltd - Yacht Shares Sailing Yachts Overseas

Even if you buy own boat, would be a way to find another partner or 2.

[Aussiedreamer]

Interested in your idea, we have a 34ft yacht in Mooloolaba, Qld. Have been looking at the feasibility of buying a boat and leaving in Med for a few years, but had not considered a partnership. Sounds from your experience partnerships can work, interested to hear how you progress.

[goboatingnow]

Macg, boat advice fine, political advice = nonsense. Greece is and will be fine, tough yes but they'll come out of it.

Dave