Boat Co-ownership

Langy3366 · 15 October 2010, 12:35

Anyone tried it? Does it work? What pitfalls to look out for?

Jizm · 15 October 2010, 12:59

Do you mean privately or using a company like RIB share RIB shack?

Langy3366 · 15 October 2010, 13:03

I was thinking privately.

Jizm · 15 October 2010, 13:11

Without doubt you would need to be very good mates but would probably find it would cause a great deal of friction between you despite best intentions. You would both want to use the boat the same time, not to mention have difference of opinions regarding how the boat is left, any damage etc.
In my view it's best avoided if you want to remain friends.....
Just my 2p worth.

I have looked at both private and RIBshare companies and decided to buy my own in the end. The RIBshare can be expensive and there can be hidden costs incurred not made clear at the outset. That said if it's financially viable for you then it can be hassle free boating...

Hightower · 15 October 2010, 13:32

I would agree with Jizm as I have co-owned a boat with a real good friend for several years. As the boat was stored at mine, I found I was doing all the work in maintaining it. I didn't mind at first, but these type of things do eat away at you over a long period of time. We're still great friends that still go fishing with each other but the Evinrude blew up and the boat got sold before things came to a head.

I would never "share" another boat!

willk · 15 October 2010, 13:35

Boat Sharing, a terrible idea, worse than wife swapping because you'll love the boat...

HUMBER P4VWL · 15 October 2010, 13:42

Don't do it.

Mollers · 15 October 2010, 13:43

It doesn't work.

Poly · 15 October 2010, 18:21

Quote:

Originally Posted by Langy3366

Anyone tried it? Does it work? What pitfalls to look out for?

there have been a few threads here in the past, try searching for "Share / sharing" rather than coownership. However a brief synopsis would be that it seems to be very unpopular in the rib (and possibly wider powerboat) world. Its more common in the yacht world (but even there there are plenty of people who think it is mental). I'm not convinced it is totally stupid but there is definitely potential for problems. I'm not sure 'really good friends' are the best people to share a boat.

Screaming04 · 15 October 2010, 22:47

Done it, doesn't work.

Although we had a clearly defined arrangement, my partners (couple) were upset when I wanted to sell.

The deal had been: if someone wanted out, the other person can buy the other party's share or the boat would be sold.

My partners couldn't afford to buy my half and were left boatless (blaming me for it).

Another problem was sharing maintenance, I had been doing all mechanical work and maintenance, they'd been doing waxing etc (hard boat). They were hinting that I should be helping with the waxing etc. while I was quite certain that I was spending at least the same amount of time with the mechanics (they had little appreciation/understanding of the work I was doing).

We had both owned boats prior to this arrangement.

These people had been close friends , I'd been in their wedding party etc. We haven't spoken since. (It's been just over 7 years)!

sarahscottiedog · 16 October 2010, 09:48

I did it with my two best mates and it worked out GREAT. However I can see how there might be problems especially if it someone you dont know at all or even havent known thm for a long time ! If you can find someone to share then it does make for much cheaper boating !

Jizm · 16 October 2010, 10:07

Quote:

Originally Posted by sarahscottiedog

I did it with my two best mates and it worked out GREAT. However I can see how there might be problems especially if it someone you dont know at all or even havent known thm for a long time ! If you can find someone to share then it does make for much cheaper boating !

Which is why it may actually be easier when it's managed by a third party such as RIB shack.

deeyup · 17 October 2010, 22:08

A friend and I have owned pwc's and 3 boats together in the past. We now share a thundercat.
Works great for us, as I find when I go out boating, I would usually ask a mate to come along, so he comes, and the same the other way. So there's none of this "It's my turn" nonsense.

Agree in advance the rules ie wanting out, accident damage etc then should all be fine really.
If there's possibility of someone saying "i do more work maintaining"etc agree to get all servicing done at a dealer and split the cost. Or do the work together.

Nos4r2 · 17 October 2010, 22:08

I tried it many years ago. It was such a bad experience that I wouldn't attempt it again. The boat itself (a nearly new Shakespeare speedboat hull) never even made it to the water.

lauchiemb · 18 October 2010, 10:13

We have a jetski syndicate with 9 members that works brilliantly. We have a good sinking fund that will be able to replace it every four years. I love the members that pay their monthly dues and never use it from year to year! They like being able to say that they own (part of) a jey ski.

This year we bought a syndicated RIB, which still works well. The boat is always polished after use no arguements yet. You have to be realistic and flexible. If you want to use your boat at any time, anywhere, then you are best to rent or buy on your own.

The best part of being in a syndicate, apart from it being cheaper, is that you always have someone to go boating with. And if it breaks down it is less of a worry since you have less of a financial commitment and more help to get it fixed.

SteveHall · 18 October 2010, 10:46

I am just about to venture into this situation, with a 50% share. I am buying in with a friend who currently has a 50% share, and the other share holder wants to sell his share for other reasons.

For them in the past it has worked well, a few ground rules have been set and everything for them has worked well for 6 years, so i hope it will for me.

bigjarv · 05 March 2013, 09:07

So it sounds like people who put the effort into laying out the ground rules have had a good experience. The cost advantage of sharing a boat is just too great for me to ignore. All the benefits but half the costs is how I see it so trying to overcome the hurdles!! It's either do it this way or not at all for me.

Does anyone have any advice on the set up of a shared rib? The method used in aviation (light aircraft) is to pass the asset into a limited company and then each member owns shares of the company. This makes it all very clear and easy for insurance etc. everyone knows where they stand. I'm just wondering if passing ownership into a Ltd if that will automatically mean I have to get the boat coded? No one is going to use the boat for reward and it will only be owners that use it. If anyone has any thoughts I'd be most grateful! Even if you can just point me in the right direction I'd be really happy!

Thanks in advance!

Dry Run · 05 March 2013, 09:38

Loads of shared boat ownership going on at KB Dry Stack. I have never seen any real problems amongst our "sharing" clients. Some have formal contracts (I could probably get the OP a copy if they want), others have more informal arrangements.

Good luck anyway!

John Kennett · 05 March 2013, 09:49

I don't see why it would need to be coded in those circumstances. I'm not sure that there would be any real benefits of the limited company though, especially given the cost of doing annual accounts.

I own a share in a boat on the Thames and it works very well. There are eight owners and we manage the syndicate ourselves without needing to jump through any of the hoops that a limited company requires.

Syndicate members do some bits and pieces of work on the boat, and inevitably some more than others but that's generally because they want to do it. We use a local marine engineer for most of the maintenance other than daily checks. Personally I would want to keep clear of a syndicate based on DIY by members, preferring to contract the work out as required. The great thing about shared ownership is that the generally horrific costs of boating are split several ways so even major work isn't too painful.

I'm interested in finding something similar up for a big RIB as well. I absolutely can't justify owning one outright knowing how much use we're likely to get out of it due to other family commitments, but a share could be a good compromise.

Poly · 05 March 2013, 11:45

Quote:

Originally Posted by bigjarv

Does anyone have any advice on the set up of a shared rib? The method used in aviation (light aircraft) is to pass the asset into a limited company and then each member owns shares of the company. This makes it all very clear and easy for insurance etc. everyone knows where they stand. I'm just wondering if passing ownership into a Ltd if that will automatically mean I have to get the boat coded? No one is going to use the boat for reward and it will only be owners that use it. If anyone has any thoughts I'd be most grateful! Even if you can just point me in the right direction I'd be really happy!

MGN280 contains the answer to your question on Coding. I'm fairly sure it defines that situation as NOT needing coded. When I have some time later I'll highlight you the relevant words.

Quote:

Originally Posted by John Kennett

I don't see why it would need to be coded in those circumstances. I'm not sure that there would be any real benefits of the limited company though, especially given the cost of doing annual accounts.

I can see some advantages in clarity though. Ltd co accounts needn't be expensive - as its not going to have any real turnover or profit so no need for audits etc; you can even do them yourself - someone is still going to have to keep the books for a loose association of 'friends'. Personally I can see that a Ltd co, (or LLP) provides a structure which makes it easy for people to buy in / out etc.

Quote:

I'm interested in finding something similar up for a big RIB as well. I absolutely can't justify owning one outright knowing how much use we're likely to get out of it due to other family commitments, but a share could be a good compromise.

I've previously posted similarly - I assume any sensible owner wants to keep it on the West Coast of Scotland

- afterall if you will only use it infrequently it might as well be somewhere spectacular!