I see a variety of issues with syndicate ownership, but for many it works well. When I first bought a
keel boat I was joint owner with a friend. We sailed together much of the time too. Sailing a big boat is easier with more than a
single pair of hands. So to have a friend to go sailing with was awesome (often with our families too), especially in the early days when we were
learning. We shared the
maintenance too, although that became an issue. But typically, and unfortunately, a syndicate isn’t based around friendship.
All though I have seen a very good example where half a dozen families came together themselves and bought and managed a serious
racing yacht. But they agreed amongst themselves and I understand were all friends to begin with. They enjoyed fantastic experiences for several years. And most of the owners would sail together. The boat was moored locally to them all, so convenient. But they also raced the boat internationally and on occasion hired
delivery crew.
All
boats break of course, plus we all want to make improvements. So who decides what, how much and who does the actual
work?
In reality under what is proposed you don’t enjoy one of the most pleasurable aspects of boat ownership. This being
buying stuff for your boat, and possibly even installing same one day. Most owners have a bunch of new
gear sitting in a locker that they’ll install one day, but it was on
sale and so they bought it. To me and I know to many, which is nicer to buy for, you spouse or your boat? And often the boat comes first as you’d expect.
Also I want to choose the colours, the décor, the artwork and nick nacks on show. You just don’t gain these pleasures from syndicate ownership. But that's just my opinion.
Another issue might be location. The OP hasn't said where he/she lives in relation to the boat, but it may matter. The issue is that the boat will have a base. So where he and his
family start their
cruise will be wherever that base is. And at the end of their time the boat will need to be back at its base. So trip distance is very limited. And what if someone is late sailing back?
For me, that's one of the drawbacks with charters, shared ownership and syndicate
boats. I want to decide where I go, when I go and what I do when I get there. I don't want to have to share that decision or be mindful of getting somewhere on a certain date because my time will be up then and the boat has to be at X spot for the next 'owner'. That's just me and this isn't about me.
There may also be restrictions about the boat’s use, for example:
- must be on a
mooring or in a marina, rather than at
anchor or rafted up,
- can’t be sailed at night,
- number of people on the boat limited,
- no parties,
- can’t leave your stuff on the boat at the end of your time.
Can’t leave any foodstuffs on board and so always
provisioning, and all that stuff,
food,
beer,
gear and clothes needs to be lugged on and off the boat, stowed, retrieved etc for each and every trip. And if you don't o it yourself the boat manager will hire someone and you'll pay, same for
cleaning between 'owners'.
Where as I know I can go down to my boat Friday after work, jump on and sail off for at least a weekend without a thought to
food, clothes, towels, bedding, gear etc because I can and do keep the boat stocked. As an aside the boat is also my family’s
emergency home in the event of a serious earthquake in Wellington.
Typically too, such boats have a very limited sail wardrobe. They don’t need to as most owners just
motor everywhere. They mostly don’t sail. It’s the same for general
boating stuff.
But the OP needs to appreciate boats aren’t real assets, boats are potential liabilities. In my view only fools borrow
money to buy boats or percentages of boats (unless to live on) as boats are toys we acquire and use from our discretionary spending money.
What is the liability if the syndicate manager can’t sell all shares? What if an owner drops out, dies, runs away, down the track; who pays that share. There has to be an exit strategy too.
If one syndicate
member has a relationship breakdown (or dies) then presumably their half share of the boat may become disputed matrimonial property or a part of an estate. It may be tied up for months or more in dispute, and perhaps no monthly fees being paid. Perhaps a smart lawyer gets a lien on the boat and it can't leave the
dock till the Court resolves the dispute. Perhaps the syndicate manager goes broke, runs off with all the money or sells an empty paper bag. Do the other syndicate members all have their installment increased to meet any shortfall. If not who pays?
And some people too just never get to grips with being sailors. You see them at most
marinas. They just don't learn and so bash their boat in to pilings, try to go on the wrong tide, do all the stupid things we hear about here many times, damaging their own and other's boats in the process. So
maintenance potential for such boats is high and factored so in the monthly charges. And the syndicate manager has to make a profit.
What if one of the partners is a useless yachtie and every time you pick up the boat there's another little bit of damage? Maybe too the other families isn't as tidy and clean as yours. And how do you sort out food and other stores? I want to be able to leave whatever stuff I want to leave on my boat. The wrong owner may be blamed.
And will friends and
family members be allowed to sail? Will the
kids when old enough be able to take the boat out for a few days? Will that include on their own with their own friends? I trusted my
kids once they hit about 18 to use the boat.
Will that include when no owners are on board? Who are the owners anyway?
Here's some common
newbie mistakes.
- Fill the
diesel with
water or fill the
water with
diesel. How would that be resolved?
-
Furler jams so use the
winch and rips the sail.
- Forgets to check the
engine water is open (or it blocks) and fails to hear the
alarm.
- Relies on
GPS and
sails the boat on to a rock.
- Doesn't tie up the $5K
dinghy properly and so it just disappears with the tide (of course no one ever does this, everyone blames a thief).
- The yacht itself comes away from the
dock in the marina doing millions of dollars damage to other boats there. As a result of the last 'owner' not making fast the
mooring lines.
There are hundreds of examples of course.
So hypothetically your brother Harry, a very competent sailor asks to use ‘your’ boat for a week and no one is using it. If it were you're own boat then it's a simple decision. But not so a syndicate boat.
Covering all these issues and the many I've not pointed out are going to mean a serious
legal contract and consequential fees too.
In reality this 'deal' is put together by a charter company that uses other peoples money to fund a charter yacht, at the same time selling charter weeks for years in advance. Potentially it reduces the typical cost of a charter, but liability now passes to the charterer through their shared ownership.
Sorry but this is a bad deal in my view.
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