The sharing society is fast becoming the buzzword in globally advanced economies. Ranging from a huge variety of car sharing enterprises to high-end yacht syndicates to fractional jets and even fractionally owned vacation homes, it is rapidly becoming commonplace for luxury assets.
The principle behind the sharing society
The simple principle that ties them all together is an ‘only pay for what you use’ philosophy.
In most cases, especially for the higher value assets, you generally own a share of the equity which you can be traded freely making entry & exit a simple process.
This flexible asset-based concept differentiates itself from the less attractive timeshare proposition, where you often own nothing other that a time to use the asset.
How yacht shares work
The Yacht Share Network is the global leading listing portal and brokerage for yacht shares worldwide. Yachts range from €300k to over €10 million.
A 10% share in a yacht would entitle a syndicate member to 5 weeks on board per year, by just paying 10% of the yacht’s cost.
That 5 week period reflects the actual amount of time that many yacht owners use their wholly owned yachts for.
It seems almost crazy in comparison to pay 10 times more than needed, loose 100% of any depreciation and have to pay all the running and maintenance fees, an ongoing substantial sum in itself!
The sharing society members can be smug in the knowledge that they get 100% of the same ownership and usage pleasure, but only pay 10% of the purchase price and even more importantly only 10% of the ongoing running costs! Likewise they only suffer a small slice of any depreciation.
That’s why it has become recognised that sharing yachts makes so much more sense. It is now estimated that up to 1/4 of all yachts are somehow shared by family, friends or more structured syndicates.