A: Monocle’s income is derived from its management of the fractional yachts. We negotiate with yacht manufacturers or current yacht owners who enroll their yachts into our program at a 25% below the market price. This gives our fractional owners financial leverage when entering the program as opposed from buying through a full price broker.
Monocle divides its acquisition cost into fractional shares and does not mark up the purchase price nor the operating cost. Everything is on a net basis. Our goal is to open yachting to more individuals and make yacht ownership fun, affordable and hassle free while saving our owners millions of dollars.
This reality plus the high demand for fractional shares means an owner can expect to recoup most of his original investment upon resale of his share at some time in the future.
A: As many shares as are available or offered for resale. Each 5% share affords you 2 weeks annually. The yacht is scheduled for 40 weeks a year with down time between each owner use. The balance is set aside for ship yard work, repositioning and crew vacation.
A: The size of the yacht you require is determined by your family size or how many guests you wish to entertain. Monocle has fractional yachts ranging from 80’ which has three staterooms and 3 crew up to 325’ with 40 crew and 17 staterooms. You are permitted to have 2 occupants to a stateroom whether it is a twin, queen or king size cabin. The cost of the share itself and your share of the annual operating expenses are also a key factor.
A: Each yacht has a pre-assigned schedule divided accordingly into owner use time allocated to a summer and winter season. The calendar rotates every year to assure fairness overall. The schedule is posted on the owner’s page of our website for viewing one year in advance. Our concierge will assist you if it is necessary to swap your time with another owner or perhaps another yacht in a different location entirely.
A: If prior commitments causes a conflict of use time, Monocle will reach out to the other owners for a request to swap until a suitable time frame is found. Another option is to put your weeks out for charter and receive the income or simply let a family member or business associate enjoy your time.
A: The yacht has an annual operating budget which covers crew payroll, insurance, supplies, ship yard work, maintenance and repairs etc. Collectively the owners contribute based on their percentage of ownership into the yacht’s general operating account on the 1st of every quarter. This insures that the funds are always available to cover the operating expenses as they occur. When you and your guests are on board you will be responsible for the consumables (food & beverages, fuel, dockage). They typically range from $3,000 – $5,000 per week depending on your particular taste. As an owner there is a NO tipping policy.
A: If an owner fails to meet his obligatory payments, he is denied use of the vessel. Monocle may at its discretion step in and make the payments, so the yachts operating account remains constant. Monocle has the right to sell the defaulting share to recoup its money. The other current owners are not obligated for his outstanding payment.
A: The yacht is fully insured but the policy does have deductibles. If an owner damages the furnishings while on board, then he is responsible for the cost of that repair.
A: If the yacht malfunctions the repairs will be made as expeditiously as possible. You may stay aboard and use all the facilities until the repair is made. If, however the yacht cannot continue her itinerary due to mechanical failure or severe weather we will reschedule your missed time.
A: Monocle’s management team is fully responsible for the management of the yacht including but not limited to crew placement, scheduling, repairs, insurance, outside resources and accounting. Monocle charges a flat fee of $20 per foot per month for the entire yacht and is one of the line items in the operational budget.
A: You can keep your share for as long as you want. You can sell your share at any time either directly or through Monocle as we are always in the Fractional Sales spotlight. 70% of the ownership can decide to sell the entire yacht.
A: Monocle makes suggestions based on experience and research as well as available services. The ownership group ultimately decides where the future home base will be.
We suggest moving the yacht each season to give the owners a new and exciting experience to look forward to.
A: 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 replacement costs for the item are established. It is an ownership group decision.
Don’t forget, even if the unforeseen replacement cost of an item is $30,000, a 5% fractional owner is only obligated to pay$1,500. Not enough to keep you up at night as I say. Again, just one of the many benefits of fractional ownership.