Anthony Liquori found the boat of his dreams on a flyer that a co-worker happened to bring back from a major boat show last fall. The 126-foot brand spanking new megayacht sat gleaning at the dock in Ft. Lauderdale when Liquori went down to visit the boat. He was sold the minute he set eyes on the enormous staterooms. The cabins were huge, with full size baths and walk-in closets, and the Jacuzzi on the top deck wasn't bad either. The luxury yacht will spend most of its time cruising the brilliant turquoise waters of the Bahamas, calling on ports at the will of it's owners. It will be staffed by a crew of six, including a chef, full time captain and it will be stocked with every water toy, from jet skis and ocean kayaks to motorized dinghies and SCUBA gear. All this begs the question: How can Liquori, an auto dealership finance director from Merritt Island, FL. afford such opulence? He can't. What he can afford is a share of a multiple ownership of the vessel, Our Fantasea, for $13,000 that entitles him to a week aboard the megayacht every year, from it's maiden voyage this year for the life of the vessel. (A share for a week every other year is $7,995.) "Believe me, I'm cheap," he said while fielding constant calls during his 60+ hour work week. "I just thought this was neat. It gives you an opportunity to live like the rich people." Living like the "rich people" is growing into a marketable commodity, as different schemes for shared ownership of boats both huge and small seem to be taking hold in the boating market. Just recently BoatU.S. attended a major yacht charter boat show in the Caribbean and variations on timeshares, particularly for megayachts, were the talk of the industry gatherings. Our Fantasea was the brainchild of BoatU.S. member Joe Sutphin of Melbourne, FL, who has been working on the concept for years, but could not find the right boat. Having done the math, Sutphin found that the four or five staterooms on most megayachts did not bring the price per-share down enough for the average person. Working with a Ft. Lauderdale boat builder, Winston Marine, he got a vessel built new with 10 staterooms for sale. As Liquori, who owns a 23-foot Sea Ray and a 14-foot Wahoo fishing boat, pointed out, "What you can do on a cruise ship is so limited. You're in a cabin the size of a closet, and it's still going to cost you at least $2,000 or more, and that's just for one trip. With this I get a vacation for the next 25 years." Nonetheless, the yacht timeshare idea is not common. Internet searches turned up very few floating dreamboats like Our Fantasea. More common are ownership programs for charter boats as well as many one-time enhanced yacht charters. There are also traditional resort-style timeshares to buy or swap for a cabin aboard major cruise ships. Share and Share Alike In land-based resort timeshare, the vacationer purchases a week or more at a specific resort and avoids the headaches associated with owning and maintaining a vacation hope, or paying top dollar to book a room at a resort. In addition to "owning" a week aboard a mini-cruise ship like Our Fantasea, is the concept of a boat club in which a one-time fee gives the buyer the use of a fleet of boats for a specific period. Surprisingly, in looking at the cost of an annual week aboard the megayacht, the cost of access to a whole fleet of small boats can actually be higher. But then again, one's right to use the boats is far more than one week a year - it's virtually unlimited. To wit, Freedom Boat Clubs have just expanded beyond their 13 year operation in Florida to the East Coast, specifically Virginia, Maryland and Washington, DC. Other locations are planned this year are Norfolk, VA and Long Island. "It's a brand new concept up here and we to do a lot of education (with boaters), said Doug Zimmerman, a BoatU.S. member from Vienna, VA who opened new locations this year. "Once people understand the concept, the reception has been strong." Zimmerman was formerly a financial analyst in the timeshare department for Marriott Corp. Marketing the club as a "hassle-free" alternative to the expenses and headaches of boat ownership, Zimmerman said all a club member has to do is make a reservation and show up to take out one of their boats, fully maintained, insured, clean and gassed up and ready to go. In it's first year, the new Woodbridge, VA Freedom Boat Club signed up 60 members who shared a fleet of eight boats, ranging in size from 19 feet to 27, including bowriders, cruisers, pontoon boats and a sailboat. Zimmerman said membership is limited to insure availability and boats are added as more clients buy in. Focus on the Fine Print While a week on a megayacht or unlimited access to a fleet of boats sounds great, buyers should never enter into a shared ownership deal as an investment. They normally do not increase in value and many owners have found resales difficult. As with anything that costs thousands of dollars and entailing a long-term agreement, consumer advocates urge prospective buyers to read all the fine print or have an attorney review it for you. Our Fantasea operated as Yachtshare International, a Florida corporation, has a 70-page partnership prospectus outlining terms, projected costs, rights and restrictions. Payments for shares are being held in escrow until enough shares are sold to operate the yacht later this year. But resale rights are also restricted. Buyers should also review all costs of buying into a timeshare including annual assessments for maintenance. Sutphin estimates the first years maintenance fee for our Fantasea will be $1,583 per share. Since a boat is not a deeded property like real estate, many of the standard terms and protections of traditional resort time shares do not really apply. For example, it is unclear whether state agencies regulating land-based timeshare companies would have any jurisdiction over sea-going timeshares. Also, unlike timeshares on land, a cruise on a vessel can be cancelled at any time due to weather or mechanical problems. And if you're the sort of person who likes to make last-minute changes to travel plans, a long term commitment may not be wise. A Federal Trace Commision list of Timeshare tips for consumers is at www.lawpublish.com/ftctmshr.html. Another userful e-newsletter is Timeshare Beat at www.thetimesharebeat.com where consumer alerts about numerous fraudulent vacation offerings are listed, along with travel deals and scams to watch out for. Since this is a relatively unproven concept for boating, BoatU.S. would like to collect comments from member who have had experiences with yacht timeshares, fractional ownership plans or boat clubs. Please email your experiences to
[email protected]; or write to boatU.S. Magazine, 880 S. Pickett St. Alexandria, VA 22304 or fax 703-461-2845.
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