Owning a yacht that you can use for holidays is a dream for many. Who would say no to a quick getaway on a boat and enjoying the waters? Except for people who have motion sickness, it’s safe to assume that almost anyone would be down for a water getaway.
Though owning a yacht may seem fancy and extravagant, one thing to know is that it comes with a lot of responsibility. Just like raising a child, yachts require a lot of care and maintenance to keep their condition at its best. For some, they consider their yachts an investment. On the other hand, some would argue that spending money on boat property is useless.
People have different opinions towards yacht ownership. But, that does not mean that it is not a great asset to have. If you’ve been dreaming of owning a yacht that you can enjoy and use for whatever it is that you’ve been planning for, here are 3 types of ownership that might just work for you.
The whole concept and point of shared yacht ownership, just like its name, pertains to owners who share a fraction of the property. Shared yacht ownership is also known as yacht syndication and fractional yacht ownership. In a yacht syndication arrangement, several owners enter into an agreement where each has an equal share of the property.
Just like how every owner has an equal part of the property, each of them shares equivalent control and usage as well. Usually, in a fractional yacht ownership arrangement, there’s a manager who supervises the availability, maintenance, and usage of the boat.
One of the strong points of yacht syndication is that you pay less for a luxury property. Usually, in a shared yacht ownership arrangement, at least 6 individuals equally own a share. If you can’t commit to the time needed for the boat’s maintenance, cleaning, and servicing, yacht syndication might just be the right type of arrangement for you.
Why it might work for you:
Before you go and purchase a boat, answer first why you want to buy it in the first place? Is it solely for the holidays? Is it an addition to your investments? Or do you simply plan to try out what it would be like to own one?
There are a lot of points why shared yacht ownership might work for you. One of them is if you’re someone who constantly has a busy schedule due to work. Yet, if you want a property that you can use for the weekends and on holidays, yacht syndication might just be the right type of ownership that you can consider.
Purchasing a yacht is expensive. Regardless of the type and model, it is a lavish property to own. If you feel like purchasing a boat on your own is not practical, yacht syndication is the answer. Take into consideration, how often will you be using it? If you think you’ll only be using it for a total of 60 to 70 days a year, maybe yacht syndication can work for your lifestyle.
The thing with fractional yacht ownership is that you get to have all of the perks of owning a boat solely. In fact, even better and at a more affordable price. With a shared yacht ownership arrangement, you won’t have to worry about the property’s insurance, condition, and maintenance. You have a manager who’ll oversee those aspects for you to completely enjoy and make the most of your time on the waters the way you want to.
Private sole ownership
Private yacht ownership is the arrangement where an individual owns a boat solely. If you’re someone who wants complete control over the property, private ownership might be the right one for you. For sailboat collectors and enthusiasts, this is the best option.
Unlike shared yacht ownership, if you can commit to keeping the boat in its top condition, private ownership is not a problem at all. Moreover, if you have a personal manager and staff who’ll tend to the property on your behalf, there’s no reason for you not to consider sole ownership.
One of the factors that stop people from purchasing a private yacht is its price. If you’ve been scouting different types and models, you know how expensive they are. If you’re willing to pay an enormous amount for a boat property, then better go for private ownership where you have full control over how you want it to be managed.
Why it might work for you:
It’s important to consider your lifestyle before buying a yacht. If you plan to make use of it occasionally and even during the weekends, private ownership might be the best option for you. Should you wish to take your family off to see a new area from time to time, maybe purchasing the property solely is better than assuring your slot and waiting for your co-owners for approval before you get to use it.
If you happen to have any other plans for the yacht in the future, for example, you wish to charter it from time to time, you are free to do so. One downside to shared ownership is that you have to coordinate with your co-owners the changes you wish to implement on the yacht. Regardless of whether it is with the usage or interior, all must be negotiated, since all owners have the equal right to the property.
If you are someone who values personalisation or wants to constantly improve the interior and exterior of the property, you can freely do so as a sole owner. Aside from complete control, if you want to make decisions and changes at any time without having to consult other people, consider the price of what it takes to be a sole owner.
Yacht charter ownership
With both shared and private sole ownership, owners are free to have their yachts for rent if they wish to. But, that depends on the arrangement and contract terms of those who are in yacht syndication. If you are someone who truly loves to cruise and travel, charter ownership might be the right one for you.
Charter ownership is the arrangement where an individual buys a yacht for business purposes. For some arrangements, the buyer will be the one operating the yacht completely for charters and such. Other arrangements can be made with companies that offer this type of ownership with other terms to regulate the boat’s operation.
Why it might work for you:
There are 2 things to note for yacht charters. First, it’s either you buy a boat solely for charter or business purposes. The second is when you purchase a charter program from someone who owns a boat for rentals or a company that offers the said arrangement.
Let’s talk about if you buy a boat for charter/business purposes. One great thing about buying a yacht solely for business purposes is that you make it an asset that can appreciate over time. Though it cannot guarantee to make the money that you spent on buying a yacht, it still makes up for the expenses you spent. Plus, you get to enjoy it while using it for business at the same time.
On the other hand, if you are not confident to commit to a yacht investment, purchasing a yacht charter program might be the better option for you. With a charter program, you get to enjoy the yacht for a certain period. All for a low cost that won’t break the bank. With this, you won’t have to worry about the maintenance, fees, and other expenses that are needed.
Moreover, if you plan to avail of a charter program, you are free to try out different yacht models and course different locations where it can be used. Unlike shared and sole ownership, you spend less and try different models at the same time, with no commitments.
What type of ownership is the right one for you?
Among the three types of ownership, which one do you think makes more sense to your lifestyle and budget? Regardless of your choice, all three types will work well as long as they align with your planned yacht purpose and financial capability.
Are you someone who prefers to manage a property on your own? Or do you prefer a co-ownership and allocate the money to other assets instead of buying a private one?
If you plan to buy a boat, what type of ownership will you consider and go for? Would you purchase it solely for leisure purposes or plan to put it up for business? Share with us your insights about it and why you choose that type of ownership in the comments below.
Bianca Banda is a writer for MIY Yacht Share, which offers Yacht Co-Ownerships for sale, leaving the hassle of sole ownership behind by providing a cheaper yet luxurious yacht that is your own. She is a massive lover of Japanese cuisine and enjoys binge-watching comedies or variety shows.
