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Planning Examples

Jeanneau Dealer of the Year 2017

To understand the potential  value to the owner of this program, it is helpful review an example. The same analysis can then be applied to a yacht of your choice to see the results. This example assumes a Jeanneau 439 is purchased by the partnership for $368K  and the Fractional Partner has a 50% share having paid $184K for his/her share. The yach is docked in Coconut Grove, Florida. For simplicity, we assume that FYG and the Fractional Partner jointly own the yacht together for 5 years with no other partners.

Please refer to the following FRACTIONAL PARTNER 5YR PROJECTION EXAMPLE for complete details of this example

Over 5 years

  • all expenses for basic maintenance, insurance and dockage are shared 50/50. This is approximately $14K per year per partner or $71K$ over 5 years.
  • The Fractional Partner is able to  personally enjoy 12 weeks per year of usage that has a value over $58+K/year or $292K over 5 years
  • The Fractional Partner is able to charter-out 6 of the remaining 12 weeks of his/her 24 week entitlement as a 50% partner using FYG to earn a net income of $13+K/year for 5 years or $67K total

AFTER 5 YEARS IN THE FRACTIONAL PARTNER PROGRAM, the the Fractional Partner has realized:

  • -184K$ to purchase for the 50% yacht share
  • -$80K$ for the 50% share of $160K ownership expenses and sales tax
  • +$292K$  in charter savings
  • +$67K$ in charter income
  • +$132K$ as the the current value of the 50% share of  $264K

The net position after 5 years is +$227K. 

FOR COMPARISON WITH SIMPLE PRIVATE OWNERSHIP:  If the same yacht was purchased without a partnership, for private use only not utilizing the Fractional Partner program, then the owner would realize:

  • -$367K$ for the yacht purchase
  • -$160K$ for ownership expenses and sales tax
  • +292K$ for charter savings
  • +264K$ current value of yacht

The net position after 5 years is +$29K. 

In summary, after 5 years in the Fractional Yacht Partner Program, the fractional owner is ahead  by +$198K versus simple private ownership over the same period!

The next step with projections for the prospective Fractional Partner Program participant is to select the yacht they would like to sail from the Fractional Partner Yacht Offerings Portfolio and do the math. The yacht and the the math depend on the individual interests and objectives of the prospective participant. Florida Yacht Group can quickly provide projections of all of the above to meet your personal needs. To start this, please register for a web based meeting by going to our Registration page.

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