Fractional Ownership?

[gelkins]

Hi everyone,

I have question. Is fractional ownership a good idea? I just can't afford to buy a boat at the moment. And as a professor, I only have certain slots each year in which to sail. An company called "Footloose" offers fractional ownership with a guarantee that you can earn some of your payments back when they charter the boat. The fees apparently take care of everything.

Has anyone else tried this option? What advice do you have to this guy who loves to sail but lacks the big bucks to make it happen?

Thanks,

Gary

[MMNETSEA]

Had a look at one of their blurbs which was for a Fairlane Squadron 74 - $3,000,000

10 owners each pay in $300,000 for 4 Weeks per year (in the 1st year that amounts to $10,000 per day) The other 4 weeks the company charters the boat out and the profits if any are shared out. What's in it for the company?

Is this system similar to Time Share ?

Not much info provided regarding running & maintenance costs and professional crew that go with the boat.

It could be that there are lots of hidden overheads in the contract that are not revealed up front.

What happens if the company goes broke? Tax? Travel cost to the boat ? Etc......

Maybe the option of chartering a boat for your time slots is one to consider.

[magwas]

Originally Posted by gelkins

What advice do you have to this guy who loves to sail but lacks the big bucks to make it happen?

It is clearly a matter of trust. I would be concerned that things are broken in charter more often.

If it is safety gear when needed, you are in trouble.

I would see if they offer remediation for such cases, and check if they have procedures to check the boat when it is back.

You might consider to charter one of their vessels, check the condition of gears, break something, and see if you can get away with it. (Of course remediate them when/if it is obvious they did/didn't notice.)

I was trained on a vessel which was given to charter by the owner. She was in miserable condition. Spinakker lost, motor did not work, and I ended up sealing holes with chewing gum to prevent rain to my bed. I would never give my boat to the hand of those charterers if I had one. Of course it is Wild East, you migh as well find decent and caring people.

I have choosen the other way to have a boat cheaply. Building one.

[gelkins]

Thanks for your replies. Has anyone else shared ownership of a boat or tried fractional ownership? I would like to know if it is something that is worth pursuing.

Gary

[Istioploos]

While I have never participated in fractional ownership I did charter my boat S/Y Thetis for a few years right after I bought her. Although the charter company I used was very friendly, my brother was a partner and the technical manager, the wear and tear on the boat was significant. After a while I figured out that I was actually paying for someone else's vacation and stopped chartering her. It was wise decision!