The most significant benefit of fractional ownership is that one also only has to pay a fraction of the yacht’s ongoing running costs.
As most owners invariably get their capital outlay back, less some depreciation over time when selling their yacht (or their yacht share) the running costs actually form the greatest expenditure of yacht ownership over time.
Only paying a small percentage of all the maintenance costs therefore becomes very refreshing in comparison!
For example, replacing the external upholstery on a yacht would cost circa €5,000 and needs to be done every three years or so. That becomes a bitter pill to swallow for an outright yacht owner, but for a 6 weeks a year fractional owner that same expense only comes to €625 instead of €5000!
The temptation is therefore to replace items sooner, meaning fractionally owned yachts often look in better condition than their adjacently moored privately owned yachts.
This same philosophy applies to the cleanliness of the vessel. By the very nature of the need for a weekly changeover valet throughout, fractionally owned yachts are serviced, cleaned and polished once a week. Privately owned yachts sit unattended for many months at a time, rapidly deteriorating in a salt encrusted, burning sun environment, with the occasional clean only occurring before the outright owners’ next arrival.
Puerto Portals is known to be one of the most expensive mooring locations in the Mediterranean. Again, by only paying for the mooring when one is actually on board, as other owners pay while they are on board, it suddenly makes good economical sense. To be specific, an equivalent 20m mooring in a lesser marina in Palma could cost about €30,000 per annum less. A significant saving if one only uses ones privately owned yacht for 6 weeks of the year, equating to €5000 per week’s use. Although that mooring is further from the best cruising waters, the extra daily fuel usage would not equate to that €5000 occasional weekly use saving.
In contrast although the Portals mooring is €30,000 p.a. more expensive, a 6 week fractional owner is only actually paying €576 per week of use extra, to be moored in the best marina in the Med. The fuel savings alone for the saved hour or two a day in cruising, make it a better financial proposition to be based in vibrant Portals, aside from all the time saving, enjoyment, convenience and aesthetic benefits.
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Typical annual maintenance costs of a 50ft yacht
Marina Fees (Mooring/Electric/Water/Taxes) €40k
Guardinage (Repairs/Cleaning/Housekeeping) €40k
Servicing (Maintenance/Equipment/Parts) €40k
Equivalent to about €2,500 per week of ownership
Typical annual maintenance costs of a 65ft yacht
Marina Fees (Mooring/Electric/Water/Taxes) €60k
Guardianage (Repairs/Cleaning/Housekeeping) €45k
Servicing (Maintenance/Parts/Replacements) €45k
Equivalent to about €3,000 per week of ownership