The Concept of Fractional Ownership

This Luxury Sailing Yacht, will be owned by a BVI company which will consist of 100 (One Hundred Shares). These 100 shares will constitute 300 (Three Hundred Days) of charter time on the boat. The balance of the time i.e. 65 days, will be used for slipping the boat, maintenance, and leave for the crew.

Realistically, how often would you use a yacht like this if you were the sole owner? Each share holders ownership and interest, will relate directly to the amount of shares they own and like wise, any profits or losses the company makes will be due to that share holder accordingly.

The profit share will be directly linked to that shareholders use of their days on the boat, i.e. If a 50% shareholder were to use all their days on the boat for their own use, they would not share any profit generated from charter, or if that same shareholder used half his or her days on the boat then his or her profit would be 25% of the whole companies profits made from paid charters.

Senario1 (10% Ownership)

• Charter a yacht like this one for 4 weeks a year @ $45000 per week. That’s $180 000 a year and $900 000 over 5 years.
• Your deposit on your loan is $21 000 (5% dep.) or $42 000 (10% dep.)
• If a loan is acquired at 6% interest rate, that’s $23 940 per year (on the 5% dep. Option).
• That’s $44 940, the price you would pay per week anyway, but this way you are an owner and if you use the boat 4 times that year it still costs the price of one charter (plus food expenses etc. of course).
• If you don’t use all your time then you share profits from the charter income.
• Remember, there’s always the investment side of it as well, if you sell your shares, you get money back.
• Because you are actually a shareholder of a company, there are tax benefits as well.