Yacht ownership aligned to yacht usage. That is the principle of fractional syndication.
The initial outlay becomes only a fraction of the yacht’s purchase price, and any future depreciation is also cut down by an equally impressive amount.
Simultaneously, all the significant recurring annual operating expenses are shared among the fractional owners on a pro-rata basis. This continued saving makes the ongoing ownership experience of a yacht so much more affordable and palatable.
Fractional ownership needn’t compromise the owner’s use, size or calibre of their yacht. In fact many owners have found it better to own a smaller share of a larger yacht rather than a smaller boat outright.
Sharing a yacht also saves an owner from all of the drawbacks and management niggles, as the various owners share those burdens between them.
Syndicated yacht owners simply need to apply a greater degree of advance planning regarding their actual weeks of use.
It is believed that up to 25% of all yachts globally are casually shared in some way or another. Through more formal fractional syndication, many of the pitfalls of sharing are negated, as it is a more structured proposition, which has been well proven for many decades.
Fractional syndicates have become even more popular in recent years as people strive for greater financial efficiency in all aspect of life. This is now recognised as a proven and modern approach to better asset management, commonly referred to as “the sharing society”.
A very common misconception about fractional ownership is that it is a form of timeshare, but by a different name. This is not the case. With timeshare one does not own a share in an asset, simply the right to use that asset for a set period of time. When that time expires, one is left with nothing. With fractional ownership, one owns the asset and receives title papers reflecting that ownership. If one subsequently desires to sell, one can do so and recoup the initial outlay less any depreciation that the yacht may have incurred.