This summer Latitude has appointed a South Island agent to cope with the increasing demand for the Fractional Boat Ownership. Yachtfinders Global - South have opened an office right on the Picton foreshore and have already begun promoting this intelligent concept in boating.
PROFESSIONALLY MANAGED ¼ SHARES IN LUXURY YACHTS
Few people would deny that cruising on a luxury boat is a delightful way to spend an extended holiday or even a lazy afternoon, but that satisfaction often comes at a tremendous cost in terms of time and money. Today, many people are questioning the sensibility of owning an expensive boat that sits idle much of the year and this line of thinking is not leftfield, it can be justified. Research shows that the average boat owner only uses his vessel 30 to 35 days per year, yet bears the unpleasant burden of insurance, berthage, maintenance and depreciation 365 days of the year, whether the boat is used or not!
The alternative is called Fractional Ownership. The concept is not new, it has existed for years in the private airplane industry. World renowned investor Warren Buffett, chairman of Berkshire Hathaway, purchased his first fractional jet in 1995 and three years later bought the company. Now his company is the world’s leading fractional jet company and part of a multi-billion dollar per year industry. Even Tiger Woods doesn’t own his whole jet, it’s fractional.
Boating is the obvious next logical application of the fractional concept, simply because of the large difference between the cost of boat ownership and actual usage. Latitude Fractional now offers a program to meet the growing demand for a more hassle-free, economically sensible boating experience that still affords owners a considerable amount of time on the water. For most boat owners, the cost savings are compelling.
Through Latitude Fractional owners can purchase 1/4, or 1/2 interests in the boats of their choice. Not only are the acquisition costs substantially reduced but all the on-going expenses such as berthage, insurance and annual routine maintenance are built into the purchase price to cover the 3 year term of the Management Contract.
The appeal of such a hassle-free, cost effective program is surely undeniable in these busy, economically challenging times and the benefits will far outweigh the costs for many people. On a typical $400,000 boat purchase, a 1/4 fractional owner will save over $100,000 in depreciation, financing, and day-to-day maintenance expenses in the first 3 years alone, and still enjoy a significant amount of time on the water. Fractional ownership may not be for everyone, but for those looking to ease the financial burden of a notoriously expensive hobby, it may be just what the doctor ordered.
Make no mistake; this is not timesharing a boat but sharing the expense of ownership. Unlike timeshare concepts, each of the four owners actually owns the boat and gets to use it when it suits. When you only use something for less than a ¼ of the time why own 100% of it? A ¼ share means a ¼ of the time, on a rotating schedule of 1 week every 4. Of course owners can swap times between themselves for extended holidays basically whenever you want and if you’re only spending a ¼ of the cost you can buy bigger and better. $100,000 now gets you into some very serious boating.
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