A share is 10% of the usage and cost of the yacht. Each 10% share entitles you to approximately 4 weeks annually, 2 weeks in the “winter” season and 2 weeks in the “summer” season.
On a new boat the weeks are given out first come, first served for the first year. Then Monocle rotates the schedule every year after that to maintain a fair and balanced calendar. On a resale you are purchasing someone else’s allotted time slot for the first year and then you will be rotated each year after that as above.
There are several choices you can choose. 1st Monocle would approach the other owners for a “swap” of time. 2nd you may give your weeks to family, friends, clients, or, you may opt to charter your time and receive the income.
The yacht has an annual operating budget which covers crew payroll, insurance, maintenance and repairs. All the owners contribute their equivalent share to this fund, payable every quarter. This insures that there are funds in the account all year long to cover the operating expenses of the yacht itself.
If an owner fails to meet his obligatory payments, he is denied use of the vessel. In most cases Monocle will step in and make the payments for him so the yacht’s maintenance account remains constant. Monocle has the right to sell his share, recoup the advanced funds and forward him the balance of the proceeds. All of the other owners are not obligated for his payment.
The yacht is fully insured but the policy does have deductibles. If you damage the yacht, then you are responsible for the entire deductable. If the yacht is damaged due to no one’s fault or Captain’s error, the group will pay the deductible.
If the yacht malfunctions during your time aboard, the repairs will be made as expeditiously as possible. You may stay aboard and use all of the facilities. If however the yacht cannot continue her itinerary due to mechanical failure, we will reschedule your missed time as soon as it is possible.
The only other costs you will incur are your consumables while you are on board during your vacation. These costs are usually around $3,000 to $5,000 per week and that would include food and beverages, fuel, dockage, port entrance fees etc.
Monocle’s management teams are fully responsible for the management of the yacht including but not limited to crew placement, scheduling, repairs, insurance, outside resources and accounting. We send a monthly cash flow statement to all of the owners and we also send an independent audit to everyone each year. Monocle management becomes your go to source for any questions or suggestions you may have or for help with any plans you may want to make.
Monocle charges a flat fee of $20.00 per foot per month for the entire yacht. It is one of the line items on the operational budget of the yacht.
Becoming a member in the Fractional Ownership family is very simple. We will help you select the right yacht for your needs by determining how many staterooms you require, where you want to vacation and how much money you are comfortable spending. After the yacht selection and a refundable deposit is given, along with a signed binder, Monocle will prepare and forward the 24 page Fractional Documents to you. Upon execution of the documents, simply return Monocle’s “copy” along with the balance of the purchase price. Then all you have to do is start packing for your luxurious and fun filled cruise on your own yacht. If for whatever reason you decide not to go forward with the purchase, just return both sets of documents to us and we will refund your deposit.
You can own your share as long as you want. You can sell your share whenever you want. Monocle will assist you in that endeavor as we are always in the Fractional Sales spotlight. It will take 70% of the group to vote to sell the entire yacht dividing the proceeds accordingly to all of the share holders.
Monocle Management makes suggestions based on experience and research as well as costs however it will take 70% of the group in agreement to move the yacht to another area of the world. One of the advantages of fractional ownership is that you can cruise all over the world on your private yacht and it will only cost you 10cents on the dollar to do so.
If your business purchases the vessel and is used for business purposes than the yacht may be depreciated according to the new tax law and all of the operating costs may also be deducted. If you take out a loan to purchase the yacht the interest may be deducted as a “second home.”
Monocle handles it in one of two ways. We can build a reserve for replacement fund into the budget or we can make an assessment when the costs are established and repairs are completed. It depends on the group. Don’t forget, even if the unforeseen cost is $50,000, a fractional owner is only paying $5,000. Again just one of the many benefits of fractional ownership.
First of all consider renting verses owning. We have learned that the main reason people charter is that they get to have all of the luxurious lifestyle and fun while on board and then they get to walk away from all of the headaches involved with yacht ownership. The Monocle Fractional ownership program offers the same experience. We handle the headaches and daily concerns associated with yacht ownership, not the owners. You enjoy the yacht like a charter but you receive proceeds when she sells unlike a charter.