THE MONOCLE FRACTIONAL YACHT OWNERSHIP PROGRAM
Own multiple weeks of fantasy filled, pure enjoyment on your own private yacht or you may receive the charter income while taking advantage of immediate tax benefits, building equity and residuals with resale. This is all possible through Monocle’s comprehensive management services that ensure five star asset maintenance and planning.
CHARTER SCENARIO:
Charter an 80′ yacht, 6 years old, 3 stateroom yacht for $35,000 per week.
4 weeks of chartering @ $35,000 = $140,000 annually.
5 years of chartering is $700,000 plus tips = $840,000
Plus the customary charter costs.
FRACTIONAL OWNERSHIP SCENARIO:
Purchase a 10% fractional unit in a pedigree 80′ 3 stateroom yacht.
Your total purchase price $300,000.
Own 4 weeks annually or receive the charter income
( As long as you own your fractional share ).
THE PROOF:
Down payment 10% or $30,000 of the $300,000 purchase price.
Finance the balance of $270,000 @ 6% interest only, which is tax deductible.
Annual Finance Cost $16,200
Your Annual Share of Operating Expenses 40,000
Your Total Annual Cost $56,200
$76,200 X 5 YEARS = $281,000
$281,000 (fractional ownership cost) VS. $840,000 (chartering cost)
When the yacht is sold, your portion of the residuals should be sufficient to pay off the lender.
This scenario does not, but should include the dollar savings from the interest payments which are fully tax deductible and could be another $81,000 savings.
* Individuals should review this information with their personal accountant and attorney.