We are going to provide an overview of the many fractional models available today.
OWNERSHIP – There are many different models available, Motor Yachts, Sail yachts and some fractional of smaller boats. You select one of the yachts the company has in inventory. Most offer 4 weeks, 2 weeks here and 2 weeks there. The yacht stays in one destination for 6 months so all owners have a turn then it moves to the second destination and the process starts again. The typical term of the fractional model is 5 years.
?? – What if I want a different yacht or a different usage method?
YACHT – Most fractional companies do not own the yachts they are offering, some do. You cannot choose decor or options as the yacht is what it is. You just choose one from their fleet.
?? – What if I want a different yacht, a voice in their decor or options?
DESTINATIONS – Most programs offer 4 weeks, 2 weeks in the NE and 2 weeks in the Caribbean for example. You have the same 2 weeks each year, which could be too early or too late in the season for that destination. Not much of a choice if you do not buy into the program early.
?? – What if I want to go to different destinations or times?
COSTS – Most models are 10 shares. Some models as few as 4 shares. All models cover the Yacht, Crew, Maintenance and Management in the price. Most models also include some degree of Concierge services. Consumables are excluded from all models. Major repairs are not included, while some include a reserve fund to handle repairs. Major repairs are always split by the owners.
HOW THE HELL DO I GET OUT IF I CHANGE MY MIND OR CIRCUMSTANCES CHANGE? – This is a very important part of fractional ownership – Each model has an exit strategy and be sure to read and understand. Do they allow you to sell your shares? Some do not! Some models require to you go through the company and in a few you pay them to sell your shares.
What we are trying to explain, is to READ, UNDERSTAND, ASK QUESTIONS, so you have the Right Expectations going in.