Enjoying the boating experience doesn’t always have to involve buying your own vessel. There are options for shared ownership and usage options for a boat loan to buy a share in a boat. The cost of owning a vessel can be significant. Not only are there the finance repayments if funded with credit, but there is insurance, rego, maintenance, mooring and other ongoing expenses. Shared arrangements enable many of those expenses to be shared.
Another reason for choosing a shared arrangement is how often you actually have time to use a vessel. Many boat owners will attest that they simply don’t get around to using their vessel as often as they would like. A shared option can provide usage for the amount of time available. And without all the added costs and responsibilities.
Boating can be much more enjoyable, and safer, with friends aboard. Most boat owners will regularly, if not always, invite others out on their boat. So why not, not only share the time, but the ownership.
There are a raft of reasons why many choose shared ownership and funding is available for this type of expenditure. Jade Boat Loans provides low rate options for buyers seeking a boat loan to buy a share in a boat through boat-share companies or with friends and family. Explore your credit options, consider the upsides and downsides, the rates and repayments, to decide if shared or sole ownership is the right option to realise your boating dreams.
Options for Sharing Boat Ownership
Shared boat ownership can be acquired in a number of different ways. There are companies that specialise in time-share or boat-share. They sell packages which offer buyers different options to suit different requirements. These are available for a sailing and power vessels of varying types, sizes and levels of luxury.
These time-share arrangements are typically arranged with a formal contract which outlines the buyer’s entitlements. There can be restrictions on the waterways and locations for using the boats. Buyers would need to select a share-boat company offering vessels in their state or in the area they wish to go boating.
Arrangements allow shareholders a certain number of weeks and weekends per year usage of the vessel. These dates may be set well in advance so buyers can plan their holidays. These may be sold as a one-off purchase to cover a certain number of years or with other financial arrangements including some additional out-of-pocket expenses.
Another shared ownership option is through personal arrangements with family or friends as a syndicate. Buying with friends can be popular, but there are considerations. These may include whether you are buying the vessel together from the outset or buying into a vessel already owned by a friend.
Usage arrangements would typically individually set. From a financial point of view, buyers can consider if it is vessel only or vessel and trailer and what other costs they will be required to cover such as mooring, insurance, maintenance, registration.
Also consider what happens if the vessel is written off or stolen? Does the insurance compensate you for your share? These may be issues to consider and formalise with the co-owner or co-owners.
Regardless of the shared option selected, you will need a boating licence suited to the specific vessel, in order to operate the vessel.
Loan to Buy Share in a Boat Options
When requiring credit to purchase a share, a number of factors will determine the most suitable lending product.
A key determinant will be if the vessel is available to you to be collateral for a secured lending product. The registered owner would likely be the only party able to offer the vessel as collateral for secured finance. As a part-share owner, it may not be accepted to offer the vessel as security and would due to the arrangements, may not be accepted by lenders.
A lending product that can suit shared ownership, either though time-share companies or syndicates with friends, is an Unsecured Personal Marine Loan. This can be a flexible option for funding many vessels which are not available as security.
With this product, the funds being borrowed are not secured against the vessel being acquired. Some form collateral or personal guarantee may still be required even though this is called an unsecured lending product.
This lending product may be secured at a fixed or a variable interest rate. Providing flexibility in many respects. Despite the higher rate than for a secured lending product, this option may be an affordable way for more people to get into boating.
Choosing a Share Plan or Boat to Suit Loan Repayments
Buyers can use our boating finance calculator, with the unsecured product rate, to work out estimated repayments as a guide to affordability,
This tool also provides those considering a shared ownership arrangement with a quick way to work up estimates on owning a vessel on their own. Sole ownership may be funded with a Secured boat loan Credit product which attracts a lower interest rate to unsecured products. Compare the options and speak with us about securing the lowest rate option.
Speak with Jade Boat Loans on 1300 000 003 to explore your options for a boat loan to buy a share in a boat.
DISCLAIMER: THE INFORMATION AND SPECIFIC DETAILS CONTAINED IN THE CONTENT OF THIS ARTICLE HAVE BEEN PREPARED AND ARE PRESENTED PURELY AS GENERAL INFORMATION AND NOT INTENDED AS THE ONLY SOURCE OF FINANCIAL ADVICE FOR BOAT BUYERS AND LOAN BORROWERS. FOR THOSE THAT CONSIDER THEY REQUIRE SPECIFIC ADVICE, THEY SHOULD CONSULT WITH A FINANCIAL ADVISOR. LIABILITY IS NOT ACCEPTED IN REGARD TO ERRORS AND MISPRESENTED DATA AND DETAILS HEREIN.