Alternatives to Traditional  Boat Ownership Douglyss Giuliana www.sailtime.com www.advantageyachtsales.com www.blackrocksa...
Outline <ul><li>Ownership Pros & Cons </li></ul><ul><li>Goals for an alternative </li></ul><ul><li>Various alternatives </...
Ownership – How It Works <ul><li>You pay the bills </li></ul><ul><li>You do the work </li></ul><ul><li>You enjoy the boat ...
Sample Ownership Costs –  New ~35ft Sailboat <ul><li>Mortgage Payment </li></ul><ul><li>Slip Fee </li></ul><ul><li>Insuran...
Ownership Pros & Cons <ul><li>Pros: </li></ul><ul><li>Boat/option customization selected by owner </li></ul><ul><li>Usage ...
Ownership Pros & Cons <ul><li>Cons: </li></ul><ul><li>Pay 100% of cost </li></ul><ul><li>Do 100% of work </li></ul><ul><li...
Ownership - Profile <ul><li>Uses boat a lot </li></ul><ul><li>Enjoys extended cruising </li></ul><ul><li>Doesn’t like to s...
Goals for an Alternative <ul><li>Decrease total cost </li></ul><ul><li>Minimize work required </li></ul><ul><li>Eliminate ...
Alternatives to Consider <ul><li>Sharing </li></ul><ul><li>Fractional Ownership </li></ul><ul><li>Charter Ownership </li><...
Sharing – How It Works <ul><li>Split costs </li></ul><ul><li>Split work </li></ul><ul><li>Equity for owner only </li></ul>...
Sharing <ul><li>Very good flexibility of usage </li></ul><ul><li>Location-specific </li></ul><ul><li>Careful of legal/fina...
Sharing - Profile <ul><li>Good buddies or family </li></ul><ul><li>Good sharers </li></ul><ul><li>Strong commitment??? </l...
Fractional Ownership –  How It Works <ul><li>You own 1/nth of the boat </li></ul><ul><li>Share all expenses equally </li><...
Fractional Ownership <ul><li>Very good flexibility of usage </li></ul><ul><li>Equity, sell to get out (liquidity issues?) ...
Fractional Ownership - Profile <ul><li>“ Financially-savvy” </li></ul><ul><li>Mediocre sharers </li></ul><ul><li>Med. comm...
Charter Ownership –  How It Works <ul><li>You own the boat </li></ul><ul><li>No operating expenses or work </li></ul><ul><...
Charter Ownership <ul><li>Full equity (if there is any) </li></ul><ul><li>Really yours? Not really. </li></ul><ul><li>Loca...
Charter Ownership - Profile <ul><li>Lots of vacation time </li></ul><ul><li>Really pre-paying for future vacations. </li><...
Fractional Membership <ul><li>2 options – own or join </li></ul><ul><li>Not responsible for operating expenses or work </l...
Fractional Membership <ul><li>Good flexibility of usage </li></ul><ul><li>Guaranteed sailing time </li></ul><ul><li>NEW, l...
SailTime Benefits <ul><li>Location flexibility (PLUS program – use boats at any base) </li></ul><ul><li>Online scheduling ...
Fractional Membership – Profile  <ul><li>“ Busy” sailors, pre-addicts, financially intelligent, try-before-you-buy </li></...
Fractional Membership –  Owners  <ul><li>You own the boat (down payment + financing) </li></ul><ul><li>Manager pays expens...
Fractional Membership –  Owners Profile <ul><li>Financially intelligent, budding addicts, soon-to-retire, step-ups </li></...
Comparison High Cost Low Cost Low Hassle High Hassle Ownership Sharing Fractional Ownership Fractional Programs Charter Ow...
SailTime is the global leader in fractional boating, offering membership and smart ownership programs, as well as charters...
By Douglyss Giuliana SailTime Boston [email_address] http://www.sailtime.com/boston
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Alternatives to Traditional Boat Ownership

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A brief discussion of the alternative methods of gaining access to a boat (sailboat or power) without purchasing the boat outright in the traditional manner. Covers fractional sharing, fractional ownership, charter boat ownership, and sharing with friends. Discusses pros and cons as well as relative costs.

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Alternatives to Traditional Boat Ownership

  1. 1. Alternatives to Traditional Boat Ownership Douglyss Giuliana www.sailtime.com www.advantageyachtsales.com www.blackrocksailingschool.com
  2. 2. Outline <ul><li>Ownership Pros & Cons </li></ul><ul><li>Goals for an alternative </li></ul><ul><li>Various alternatives </li></ul><ul><li>Comparison grid </li></ul>
  3. 3. Ownership – How It Works <ul><li>You pay the bills </li></ul><ul><li>You do the work </li></ul><ul><li>You enjoy the boat </li></ul>Owner
  4. 4. Sample Ownership Costs – New ~35ft Sailboat <ul><li>Mortgage Payment </li></ul><ul><li>Slip Fee </li></ul><ul><li>Insurance </li></ul><ul><li>Winter Storage </li></ul><ul><li>Maintenance </li></ul><ul><li>Fuel & Cleaning </li></ul><ul><li>Estimated Monthly Cost: $2500 </li></ul><ul><li>Assumes slip in Boston, $1MM insurance, professional maintenance. Many less-expensive alternatives are available. </li></ul>
  5. 5. Ownership Pros & Cons <ul><li>Pros: </li></ul><ul><li>Boat/option customization selected by owner </li></ul><ul><li>Usage flexibility </li></ul><ul><li>Location flexibility – put it where you want </li></ul><ul><li>Privacy/exclusivity </li></ul><ul><li>Equity in the boat </li></ul>
  6. 6. Ownership Pros & Cons <ul><li>Cons: </li></ul><ul><li>Pay 100% of cost </li></ul><ul><li>Do 100% of work </li></ul><ul><li>Possible lack of “efficiency” w/low usage </li></ul><ul><li>Full commitment to the boat </li></ul><ul><li>Location specificity – can only use it from one location </li></ul>
  7. 7. Ownership - Profile <ul><li>Uses boat a lot </li></ul><ul><li>Enjoys extended cruising </li></ul><ul><li>Doesn’t like to share </li></ul><ul><li>Wants specific/exotic boat </li></ul><ul><li>Boating is THE summer activity </li></ul><ul><li>Cost: ~$2500/month </li></ul>
  8. 8. Goals for an Alternative <ul><li>Decrease total cost </li></ul><ul><li>Minimize work required </li></ul><ul><li>Eliminate “hassles” </li></ul><ul><li>Get sufficient time aboard </li></ul>
  9. 9. Alternatives to Consider <ul><li>Sharing </li></ul><ul><li>Fractional Ownership </li></ul><ul><li>Charter Ownership </li></ul><ul><li>Fractional Member/Owner Programs </li></ul>
  10. 10. Sharing – How It Works <ul><li>Split costs </li></ul><ul><li>Split work </li></ul><ul><li>Equity for owner only </li></ul><ul><li>Divide calendar somehow </li></ul><ul><li>Informal agreement </li></ul>Friend Owner
  11. 11. Sharing <ul><li>Very good flexibility of usage </li></ul><ul><li>Location-specific </li></ul><ul><li>Careful of legal/financial issues if no written contract </li></ul><ul><li>Clarify insurance coverage for both parties </li></ul><ul><li>Doesn’t help financing </li></ul>
  12. 12. Sharing - Profile <ul><li>Good buddies or family </li></ul><ul><li>Good sharers </li></ul><ul><li>Strong commitment??? </li></ul><ul><li>Is friend really committed? </li></ul><ul><li>Cost: $625-1250/month </li></ul><ul><li>Depending on sharing agreement </li></ul>
  13. 13. Fractional Ownership – How It Works <ul><li>You own 1/nth of the boat </li></ul><ul><li>Share all expenses equally </li></ul><ul><li>Share all work (do vs. pay) </li></ul><ul><li>Legal/financial issues managed centrally </li></ul><ul><li>Divide calendar equally </li></ul><ul><li>Formal agreement, legally binding </li></ul>Management Owner Owner
  14. 14. Fractional Ownership <ul><li>Very good flexibility of usage </li></ul><ul><li>Equity, sell to get out (liquidity issues?) </li></ul><ul><li>Is there a market to re-sell shares? </li></ul><ul><li>Location-specific </li></ul><ul><li>Commitment: moderate term </li></ul><ul><li>Comparison with ownership… </li></ul><ul><li>Is it less risky or more risky? I think more risky. </li></ul>
  15. 15. Fractional Ownership - Profile <ul><li>“ Financially-savvy” </li></ul><ul><li>Mediocre sharers </li></ul><ul><li>Med. commitment (3-5+ yrs) </li></ul><ul><li>Sails avg of 3- 7 days/month </li></ul><ul><li>Cost: ~$45,000 + $450/month </li></ul>
  16. 16. Charter Ownership – How It Works <ul><li>You own the boat </li></ul><ul><li>No operating expenses or work </li></ul><ul><li>Monthly income </li></ul><ul><li>X weeks/year usage (6-12 weeks) </li></ul><ul><li>Use other boats/bases too! </li></ul>Management Owner Charter Charter Charter Charter Charter Charter Charter Charter Charter Charter Charter Charter
  17. 17. Charter Ownership <ul><li>Full equity (if there is any) </li></ul><ul><li>Really yours? Not really. </li></ul><ul><li>Location flexibility </li></ul><ul><li>Heavy wear & tear decreases boat value </li></ul><ul><li>Possible repurchase and secondary markets </li></ul>
  18. 18. Charter Ownership - Profile <ul><li>Lots of vacation time </li></ul><ul><li>Really pre-paying for future vacations. </li></ul><ul><li>Not possessive </li></ul><ul><li>Not really looking to “own” a boat </li></ul><ul><li>Cost: $36,000 down </li></ul>
  19. 19. Fractional Membership <ul><li>2 options – own or join </li></ul><ul><li>Not responsible for operating expenses or work </li></ul><ul><li>1/nth usage: X days/month usage </li></ul><ul><li>Use same boat each time </li></ul>Management Owner Member Member Member Member Member Member Member
  20. 20. Fractional Membership <ul><li>Good flexibility of usage </li></ul><ul><li>Guaranteed sailing time </li></ul><ul><li>NEW, loaded boats </li></ul><ul><li>Low, fixed cost </li></ul><ul><li>Low commitment </li></ul><ul><li>Legal/financial centrally managed </li></ul>
  21. 21. SailTime Benefits <ul><li>Location flexibility (PLUS program – use boats at any base) </li></ul><ul><li>Online scheduling in real-time </li></ul><ul><li>Largest base network (50+ bases globally) </li></ul><ul><li>High quality, good value boats </li></ul>
  22. 22. Fractional Membership – Profile <ul><li>“ Busy” sailors, pre-addicts, financially intelligent, try-before-you-buy </li></ul><ul><li>Good sharers </li></ul><ul><li>Desires flexibility </li></ul><ul><li>Cost: $650/month </li></ul>
  23. 23. Fractional Membership – Owners <ul><li>You own the boat (down payment + financing) </li></ul><ul><li>Manager pays expenses + an income </li></ul><ul><li>Free membership, maybe two memberships </li></ul><ul><li>Accrue equity </li></ul>
  24. 24. Fractional Membership – Owners Profile <ul><li>Financially intelligent, budding addicts, soon-to-retire, step-ups </li></ul><ul><li>Good sharers </li></ul><ul><li>Moderate commitment (3-5 yrs) </li></ul><ul><li>Cost: $36,000 down, $300/month </li></ul>
  25. 25. Comparison High Cost Low Cost Low Hassle High Hassle Ownership Sharing Fractional Ownership Fractional Programs Charter Ownership Size of circle is amount of sailing time afforded. Key is to compare how much sailing time you can do to amount offered, and find the lowest-cost/lowest-hassle option.
  26. 26. SailTime is the global leader in fractional boating, offering membership and smart ownership programs, as well as charters, lessons, and events from 50+ bases worldwide on both sail and power boats. http://www.sailtime.com
  27. 27. By Douglyss Giuliana SailTime Boston [email_address] http://www.sailtime.com/boston

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