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Buying a share from someone who owns the whole asset

| Boat share, collaborative consumption, Property, shared ownership, sharing | February 14, 2013

(I’m going to use boats as my example in this article because using the word “asset” over and over again gets truly tedious, but the principles apply to holiday homes, motorhomes and other assets.)

These tricky financial times are not receding as quickly as everyone hoped and many boat owners are wondering if they can justify keeping their boat or if they need to sell to extract some equity (or reduce their debt). They will also be aware that selling their boat might take a long time.

Most owners don’t even consider selling one, two or maybe three shares. I’m not saying that finding the right partner is going to happen overnight either. But with a little patience, it can be an excellent alternative: the owner keeps their boat and gets some equity.

Most “original” owners fully understand that they need to ensure that their new partners feel equal in the syndicate, but there are some who never really accept that the boat isn’t still entirely theirs and buyers should be alert to this. As with any sharing arrangement, there needs to be extensive discussions to work out all the aspects of the sharing arrangement and this should in turn be recorded in the contract. During this process, the new partners also need to assure themselves that the owner is really willing to share!

I’ve spoken to several people who’ve sold several shares in the asset they previously owned outright and the best method I’ve seen is for each partner to be bought in one by one. For example, say the ideal is to sell three shares so the boat ends up with four owners each with a quarter. The owner finds the first partner who buys half the boat and agrees with the plan to bring in two further partners. The two partners then look for the third partner, and when this sale nets a further third of the value of the boat, this is split between the first two partners. The three partners then look for the fourth partner, and the proceeds of the sale of the quarter are split between them. The contract is amended as necessary at the sale of each share.

The advantage of this process is that at each stage all the existing partners have an equal say in all matters. If each partner simply buys a quarter share, then the original owner inevitably has more control and may be able to push through the sale of a share to a partner that isn’t acceptable to the others. The other alternative is to wait until all three new partners are available. However this might take some time and there is the risk is that the first potential partner gets fed up waiting.

Many owners think that the potential partner will be unwilling to make this greater investment and indeed some will be unable to do this. But if I was that potential partner, I’d prefer to buy the half at the outset so that I knew I had equal input on decisions down the line.

As with all sharing arrangements, there are many ways of doing things, and all require an investment in time, discussion and negotiation to discover the best solution for a particular group of partners. The pay-back is that when set up correctly the vast majority of syndicates work really well, providing much joy, very cost effectively, for many years.

What are the environmental benefits of sharing?

| collaborative consumption, environment, Help | October 24, 2012

Sharing has three common consequences that are particularly environmentally friendly:

  • Better use of resources
  • Less space required
  • High standards of maintenance

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Auction culture and sharing

| collaborative consumption, Help | October 24, 2012

I’ve been reading about “auction culture” recently and it seems particularly relevant to sharing.

Auction culture is one aspect of e-bay’s impact on buying decisions. People are increasingly aware that some luxury items can be sold after a year or so for a high percentage of the original price. So when they want a new version, or if they decide they don’t need the item after all, they know they can recover much of the original cost. This can make the item better value than something that actually costs much less. So buying a Louis Vuitton handbag can be more cost effective than is immediately apparent to many people (and all men). Or, as explained in Futureshop by Daniel Nissanoff , how a $750 stroller (£350 pushchair to us Brits) can be the cheapest child transport option

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January 2009 yours2share reaches 2000 members

| collaborative consumption, Press, website business | October 10, 2012

January 2009

yours2share, the innovative website helping people to share assets now has over 2000 members and is going strong within these economically turbulent times.

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October 2008 Dream golfing properties

| collaborative consumption, fractional ownership, joint ownership, Press, Property, shared ownership | October 10, 2012

October 2008

Keen golfers often dream of owning the perfect villa within putting distance of the clubhouse of their favourite golf course, but many have difficulty justifying the cost of buying exactly what they want. Sharing a property with other like-minded golfers makes a great deal of sense and new website yours2share.com enables people to find compatible partners.

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June 2008 Making your dream a reality

| aircraft share, Boat share, collaborative consumption, environment, fractional ownership, fractional rent, Monday to Friday, Press, Property | October 10, 2012

June 2008

Have you ever wondered what it would be like to own the yacht, villa or classic car you have always wanted but without having to fork out the entire cost?

Many people dream about owning a boat on the South coast, having a sports car convertible, owning a holiday home in the Mediterranean or a beach hut in sleepy Norfolk, but for many these luxury assets are just a pipe dream.

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April 2008 Three Yorkshiremen share a boat in Mallorca

| Boat share, collaborative consumption, fractional ownership, Press | October 10, 2012

April 2008

Three Yorkshiremen, Ian Chapman, Tom Harrison and Geoff Sumner had never heard of each other until autumn 2007, but six months later, they bought a Fairline Targa 40 together for £155,000. The three men met through yours2share, a website that brings together people who want to share any valuable asset.

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February 2008 Helping people to realise life-changing ambitions

| Boat share, collaborative consumption, environment, fractional ownership, Press, sharing | October 10, 2012

February 2008

As people seek ways of working smarter, redressing their work-life balance, reducing travel time, or making time to sail, fly or travel, they often have to overcome hurdles to achieve their life choices. One common hurdle is cost, and sharing can be a great way of reducing costs, particularly with assets that would not be used all of the time.

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February 2008 Escapism proves popular

| collaborative consumption, fractional rent, Press, Property, sharing | October 10, 2012

February 2008

Advertisers on original website yours2share have been delighted with the response to early ads for fractional rental of second homes. Some people dream of owning a traditional holiday home as a means of regular escapism. But if this is too expensive, fractional rental provides an attractive alternative.

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