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Own a yacht and only pay for when you use it.Own a yacht and use it as a business and make a profit.Put a group together and have the most fun you can imagine.
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Interval Ownership StoryInterval Ownership Story
Interval Ownership StoryInterval Ownership Story
Advantages of Interval Ownership
Have it all – a Yacht, Peace of Mind and Financial Asset
Have Flexibility to Use for Personal or Business
Maintain Capital, Maximize Use and Get a Return
Simplicity of Yacht OwnershipSimplicity of Yacht Ownership
Cost of Yacht
Shares
Owner Cost
Yearly Operating costs Approx 8%
That’s That’s it!it!
Choice of LocationsChoice of Locations
South
Pacific
West Mediterranean
Florida
New England
Adriatic Sea
Caribbean
Travel the world and have not a care
Fully CrewedFully Crewed
Custom Culinary Experience – First Class
A Full Selection of Toys
For your Personal Use
Beautiful Yachts
Another Yacht To Enjoy
Do you want to Sail
Our Newest Option – Class, Fun and Space
The Basic ConceptThe Basic Concept
Example: TOTAL YACHT PURCHASE PRICE $5,000,000 YOUR TOTAL 10% PURCHASE PRICE $500,000 TOTAL ANNUAL OPERATING EXPENSES $400,000 YOUR 10% SHARE CONTRIBUTION $40,000
EACH SHARE EQUALS 4 ANNUAL WEEKS ON THE YACHT
Interval vs. CharteringInterval vs. Chartering
$5 million 100’ Yacht 10% IntervalCharter
OWN AS A BUSINESSOWN AS A BUSINESS
SUMMARY of the Cash Outlay and Depreciation
Purchase Price $5,000,000
Your 10% Interest Investment $500.000
Your Cash Down Payment (25%) -$125,000
75% Financing @ 6% interest only $375,000
Your Depreciation Tax Basis $500,000
Tax Return
YOUR TAX STATEMENT COULD LOOK LIKE:
Charter Income (4 weeks @ $40,000) $160,000 Less: Charter Broker Commissions ($32,000)Net: Charter Income $128,000
Expenses Annually (Deductible) 10% Share of Operating Expenses $40,000 6% Loan Interest on $375,000
$22,500 10% Annual Depreciation $50,000Total Expenses
$112,500 Net Taxable Income
$15,500
OWN AS A BUSINESSOWN AS A BUSINESS
CASH FLOW STATEMENT: Net Charter Income $128,000Less: 10% Share of Operating Expenses $40,000 6% Loan Interest $22,500Total Cash Expenses $62,500
Cash Income $65,500$65,500
RETURN ON YOUR INVESTMENT___________ Cash Income $65,500 = 52.4% Return Initial Investment $125,000 on Investment
OWN AS A BUSINESSOWN AS A BUSINESS
ASSUME FUTURE SALE IN YOUR EXAMPLE
Future Sale Price (1/10) $470,000 Payoff Existing Loan - $375,000 Proceeds from Sale $ 95,000 Make sure you consult with your tax attorney or financial
advisor to apply to your specific situation.
Perform what ifs i.e. you do not charter one or two weeks in a year; or you are obligated to pay capital gains on you sale.
Is it in your best interest?
Interval Ownership and You
Ultimate Flexibility Access to larger yacht than your “budget” No hassle, guaranteed quality Use as a business expense Entertain customers, key sales people etc. Investment nature of deal Ability to charter unused time
Time to turn dreams into reality
Next Steps Get your questions answered Get an orientation visit to potential yacht Get a proposal on a specific interval
ownership plan for you – totally customized Get cruising and enjoying