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,
dinghy 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.
Linear Mode
Recent Discussions