About Fractional Ownership
Traditionally, luxury assets such as vacation homes, private jets and yachts have been owned at huge expense by the privileged few.
Along with the high purchase price of these millionaire trophies comes a significant on-going expense associated with their upkeep, including maintenance, insurance, taxes, and management.
Fractional shared ownership enables buyers to avail themselves of the opportunity to own a slice of the pie and share the experience of ownership, without the financial outlay only available to the privileged few, coupled with only paying a share of the on-going maintenance costs of the asset. For depreciating assets such as Yachts and Aircraft fractional owners only suffer a fraction of the depreciation looses.
Fractional asset ownership is therefore considered to be an intelligent way to own a second home, yacht or aircraft worth many times the actual investment required. It’s often described as: “Getting more for less through a sharing society”.
A fractional syndicate offers a lower financial entry point to a fully transferable share in an asset, without the full cost of ownership, maintenance headaches, or worries of renting any unused time to offset the expense. The concept should always mirror the principle that you only own and pay for the asset for the time you use it, and other shareholders own and pay while you don’t.
The concept is relatively simple. The syndicator brings unrelated parties together to co-own a yacht, aircraft or second home, similar to what friends and relatives have done on their own, for decades. A Fractional Association member is given all the tools to simply make it work better. That applies equally to a group of friends who have found an asset they wish to share, or a professional syndicator who has done this before, but is seeking betterment and a degree of governing professionalism.
It is naïve to assume that all the co-owners will want to continue their shared ownership forever, or that all will want to end the shared ownership at the same time, even if they are close friends or family, and even if they all express perfectly harmonious intentions at the outset. The reality is that co-owners may become ill, age, their physical and economic circumstances evolve, and the shared asset itself may change in ways that affect each co-owner differently. It is therefore essential to pay equal attention to the opportunity to exit as it is to enter the syndicate.