HOW QUAY 55 FRACTIONAL OWNERSHIP AND ASSET MANAGEMENT WORKS

What is Fractional Ownership?

In its simplest form, Fractional Ownership means the multiple ownership of an expensive item. Fractional Ownership generally (but not exclusively) applies to expensive, luxury items such as yachts, aeroplanes, helicopters and real estate. The term fraction has an arithmetic base referring to one half, one third, one quarter or some other fraction in terms of the ownership split. In the context of luxury yachts, the number of Fractional Owners generally varies from two to ten. Fractional Ownership and Timeshare are two different concepts. Timeshare generally involves a significant number of multiple users of resorts, vacation real estate etc.
Fractional Ownership is a concept that has been around for some time, but has, in the last few years, become very popular worldwide as a means of purchasing luxury items. Fractional Ownership currently represents an intelligent and pragmatic way of purchasing a luxury yacht.

What are the main benefits of Fractional Ownership?

In the case of luxury boats and yachts, Fractional Ownership has the following obvious benefits for individuals:

	* One is able to afford a bigger or more expensive boat;
	* The purchase price is shared;
	* The maintenance costs are shared;
	* The mooring costs are shared;
	* The insurance costs are shared.

However, one of the most important aspects of Fractional Ownership, when the number of owners is restricted, is that the each owner retains the satisfaction and prestige of owning a luxury boat and not just sharing it with a number of other people!!

In the case of luxury boats and yachts, Fractional Ownership is the most intelligent way of investing in a yacht, not only for the reasons listed above, but in light of the fact that the majority of yachts are actually not used very often, nor for very long periods of time. A number of studies in Australia have shown luxury boats and yachts are used for less than 30 days each year.  It is also a fact that boats benefit from being used. A boat that just sits in the water and is seldom used will deteriorate much faster than a boat that is used frequently. Boats that are “Fractionally” owned, are far more likely to be used frequently and consequently, maintenance costs are reduced and of course the added benefit is that the costs are shared. Where Fractional Ownership programs are linked to professional boat management programs, boats are better maintained and overall maintenance costs are further reduced. A professional maintenance service not only provides all the owners with complete peace of mind knowing that the boat is being maintained to professional standards but the program will also increase the resale value of the yacht, thereby justifying the cost of such a program. With Fractional Ownership, the significant amount of money invested in a luxury yacht, becomes justifiable.

QUAY 55  and Fractional Boat Ownership

QUAY 55 is a registered company that specializes in Fractional boat Ownership and Asset Management. QUAY 55 is different to other “boatshare” companies in that, with QUAY 55, one does not have to buy into an existing range of boats that are company owned. All the client has to do is provide QUAY 55 with some details about the boat required. Each client’s requirements are then entered into a data-base where similar requirements and aspirations are identified. After a consultation with each prospective owner, QUAY 55 begins negotiations with potential and reputable builders/brokers.

An important consideration when dealing with QUAY 55 is that one can buy a third share in a boat from as little as $50 000 through to $6 million depending on the boat.

QUAY 55 undertakes to ensure that the client is entirely satisfied that the boat being considered will meet all their requirements and, will gladly offer advice to satisfy this very important objective. Part of QUAY 55 ’s philosophy is that the company is dealing with people and their dreams and therefore, they deserve the very best advice and service which will ensure peace of mind. The liaison between the client and QUAY 55 does not stop once the boat has been purchased – it is an ongoing relationship. 

QUAY 55 offers the following services:

• We will find the most suitable boat to meet the clients’ requirements;   
• We will negotiate a good purchase price;
• We will advise clients on the best insurance options and ensure that the boat is correctly insured;
• We will assist in finding moorings, and 
• We offer a full maintenance contract which will not only provide peace of mind for all the owners, but will ensure that the boat retains good value!!

QUAY 55  Management fee

The management fee includes the following services:

• The provision of a platform (website – www.quay55.com.au) for prospective buyers to express their interest or intent to purchase a boat and to indicate the type of boat they wish to purchase and the amount of capital that they are prepared to outlay;
• Based on the information received, QUAY 55 will then co-ordinate prospective owners with similar requirements and interests;
• QUAY 55 will negotiate with the prospective owners as to their exact requirements and the details regarding the purchase of the boat, including the period of time that each owner will have full access to the boat;
• QUAY 55 will source potential boats for possible purchase;
• QUAY 55 will negotiate with the seller for a discounted final purchase price;
• Purchase of the boat.

QUAY 55  will not:

• Provide any finance towards the purchase of the boat;
• Negotiate any loans/finance agreements on behalf of an owner in order to purchase the boat.

QUAY 55  Maintenance contract

The owners of any boat purchased through QUAY 55 will have the option of taking out a maintenance contract with QUAY 55. This contract will ensure that the boat is maintained to the highest professional standards. The maintenance contract will include the following:

• Maintenance of the boat’s engine(s) by ensuring that they are serviced by reputable manufacturer-nominated agents and as per the requirements set out by the boat manufacturer;
• Cleaning and general maintenance of the boat which is defined as:
• Manual cleaning of the boat i.e. vacuum cleaning of carpets and rugs, cleaning of windows etc.
• Polishing of all wood and chrome fittings and structures;
• Removal of all trash from the boat;
• The making of all beds with fresh linen;
• Ensuring that all linen is washed and ironed;
• Refuelling as and when required;
• Filling of the water tanks as and when required;
• A visual inspection of the boat after each passage. A full report will be submitted to each owner if any damage is identified;
• Facilitating any repairs that are authorized by the owners;
• Facilitating antifouling according to the manufacturers specifications;
• Source suitable mooring opportunities and provide the owners’ with a comprehensive list of moorings and associated costs;
• Secure moorings after discussion with the owners;
• Owners will be informed when boat insurance premiums are due and if required, ensure that the insurance policies are paid timeously.

Usage by owners

It is envisaged that there will not be more than three owners per boat although four owners could be considered if so desired by all parties.
The time allocated for usage by each owner will be negotiated by QUAY 55 with the owners.
Several options will be available to owners:

Option 1:

• Each owner has use of the boat for a period of 27 days a month during the designated months;
• Usage of the boat is restricted to 27 days a month to allow QUAY 55 to carry out maintenance during the remaining 3 to 4 days;
• Maintenance will only be carried out during week days;
• All attempts will be made to meet the requirements of the owners.

Option2:

• Each owner has use of the boat for a continuous period of 115 days (when there are three owners);
• Before each transition to the next owner, QUAY 55 will have access to the boat for inspection and to carry out necessary maintenance;
• At the end of each year the cycle will be changed so that each owner will have access to the boat during the Christmas/New Year period i.e. each owner will have use of the boat over the Christmas/New Year period once every three years.

Option 3:

• Each owner has use of the boat for 55 continuous days (when there are three owners);

• Before each transition to the next owner, QUAY 55 will have access to the boat for inspection and to carry out necessary maintenance;
• At the end of each year the cycle will be changed so that each owner has access to the boat during the Christmas/New Year period i.e. each owner will have use of the boat over the Christmas/New Year period once every three years.

Other options: