Much like owning a boat in charter
, there is some economic sense to joint ownereship on an item that will only be used by an owner a few weeks per year.
One question I'd have is about scheduling time. Since everyone is an owner, what's your ability to get the time you want?
Another thing I'd check into is any owner's fees
that may exist. With my boat in charter
, I need to pay a daily fee which includes all the linens, fuel
rental, cookware, supplemental insurance
, etc. It's not unreasonable, but it's part of the financial equation. I assume you will have something similar with fractional ownership
You also have to compare this to your other options. It may be a much better deal than purchasing
a similar new boat
yourself, but is buying
a new similar boat yourself what you would otherwise do? In purchasing
a new charter managment boat, how good a deal it turnes out to be will be very dependant on what it sells for in the end. My alternative would not have been to buy a new $120K 33-foot monohull
like the one I have in charter, but more likely a 30-year old one for 30K. Let's say I decide to get out of either 5 years down the road. If the market continues to tank, I stand to loose a lot more on a 5-year old Beneteau
than I would have on a 35-year old used boat
. You may face a similar situation, when your fractional ownership contract
runs out and the boat is put on the market. Are you stuck without boating
until it sells?
I also think it can be dangerous to get caught up in what you have to put down. Your perecent of the ownership costs what it costs regardless of financing
options. Focusing on the lack of down payment or low monthly costs instead of one's equity or liability is the kind of thinking that has many in trouble right now with their home loans.
I don't know your finances or potential alternatives, but those are things to consider.