FRACTIONAL OWNERSHIP OVERVIEW

With fractional ownership, an individual or company purchases a share(s) in a yacht which is an “undivided lien-free interest” similar to “tenants-in-common” in real estate ownership, without assuming full maintenance or management responsibilities that come with owning your own yacht outright. The Ownership Agreement establishes that all owners represent an undivided interest and are subject to the terms and conditions of the Operating Agreement. Each owner is entitled to their proportionate shares of depreciation, expenses, tax benefits, etc. You purchase only the amount of shares you need to meet your personal needs. You retain financial and legal control over your fractional asset in the vessels specific hull serial number (registered to a dedicated company). The other owners cannot encumber your interest. Stellent Yachts manages everything concerning the care and operation of your yacht interest including but not limited to professionally trained crews, route planning, maintenance, berthing of yacht, insurance, scheduling and management, marina dues etc., all operating expenses are divided according to shares owned. The only other costs an individual shareholder would incur would be consumables while onboard; catering if requested, food, liquor, fuel usage, dockage fees if traveling to guest ports, visa fees for Mexican waters if applicable and fishing licenses if you desire to fish.

Here are five reasons why fractional yacht ownership is the smarter way to own.

Reason #1: A Better Investment. Number one on the list is money. Anyone who has ever owned an maintained a yacht knows why this comes out on top. First, most people come to realize they only use their yacht about 25 days per year, which is the national average according to National Association of Boaters. For that simple reason, paying only a tenth of the total price for acquiring a luxury yacht of your dreams is both more prudent, and easier to rationalize. Example: Paying $300,000 for a well-equiped $3 million yacht saves you 2.7 million dollars. And with today’s uncertain financial market, you still get the use and enjoyment you seek, with virtually zero risk on your investment. In addition, the monthly costs to run and manage the yacht, from maintenance to property taxes, are divided equally among the owners, once again saving you tens of thousands of dollars over time.

Reason #2: No Costly, Time-Robbing Responsibilities with fractional yacht ownership - the management company is responsible for all the maintenance and upkeep. This includes not just the bills, but also the time-draining hassles that take you away from simply enjoying your yachting time with family and friends. With a fractional share, the yacht management company handles all maintenance and repair issues, including regular upkeep, you sit back and enjoy your time while the managements staff takes care of everything.

Reason #3: Much More Bang for Your Buck. Although many people dream of owning a luxury yacht, most would not use it often enough to justify the substantial expense.

Reason #4: A True Approach to Carefree Living. To be blunt, very few yachts come with a concierge services, but Stellent offers our luxury concierge services as part of the package. Your yacht is always kept in perfect shape so everything is ready for you when you arrive.

Reason #5: More Than Just One Destination. Southern California is one of the most scenic and sought after destinations on the west coast for yachting with numerous offshore islands furnishing secluded beaches, epic fishing, numerous costal ports along the coastline to enjoy shopping, spas and fine dining or just a day cruising, and is also the launching pad for voyages down the Baja California peninsula - one of the world’s top yachting destinations. There is nothing on the planet like yachting on the west coast. It truly is a world-class destination that one could spend decades exploring, we are truly privileged to have such a beautiful and rich environment.

When you stop and consider all the details and advantages, it’s easy to see why fractional ownership is an appealing concept. The fractional approach to ownership is a clearly logical means to adding enjoyment and carefree living to your world. Look at the details and do the math; you’ll discover it’s difficult to argue against the wisdom of a Stellent Fractional Ownership Share, now or in the future.

The ownership experience is truly “turnkey” and hassle free.

And please remember: whatever requirements you have with regard to your fractional share purchase or vessel, we will do everything we can to turn them into reality.

Initial investment and recurring costs associated with fractional ownership

There are two cost components for the owner:

1. Acquisition Cost (Share % of Yacht Purchase Price) – a onetime cost based on the interest size of the yacht proportional to the number of shares you purchase. At the end of the program term the yacht will be sold at fair market value and the proceeds divided back to shareholders based on shares owned.

2. Management Fee (Monthly Fixed Overhead Costs) – covers all inclusive yacht management service, hull and liability insurance, marina dues, mooring, dockside electrical and water, scheduled maintenance, crew salaries, administration fees, concierge service, scheduling etc.

PLAUSIBLE TAX BENEFITS AND DEDUCTIONS

  • Depreciation of the asset
  • Writing off Expenses
  • Entertainment
  • Second Home

*We are not engaged in rendering tax advice, if tax advice is required, consult your CPA

YOUR NEXT STEP

CONTACT US and discover how buying a share in Stellent's Fractional Ownership Program is the most economical and cost effective way to gain access to these elite oceangoing works of art. From reduced expenses, shared revenue, and potential tax benefits, this is the future of yacht ownership.