Purchase, Fractional Ownership, or Charter: Which Yacht Option is Perfect for Your Lifestyle?
Are you thinking about buying a brand new yacht? If so, did you know that there are several options available to you? Buying a yacht is a big decision and you should choose wisely when you are deciding on how much you want to spend and when you are thinking about the model, make and age of the yacht you want to buy.
Of course, you can choose to purchase, charter a boat or you can buy your boat through a fractional yacht ownership scheme instead. More about fractional boat ownership later on in the article.
Which of these options is best for your lifestyle? After all, one option might be best for you.
Firstly, let’s dig deeper into each option.
What is Yacht Chartering?
When you charter a yacht, you essentially rent the vessel for a period of time. Therefore, you don’t own the boat, you pay a certain amount of money to use the boat and you return it once you have finished using it. Some chartering companies will handle the crew, captain and other aspects of utilising the boat. However, with some companies, you have to take care of the crew and captain yourself. The first option is the easier option, it’s hassle-free and less stressful.
Remember, with chartering, you don’t own the boat, you can only use it for a period of time and you have to give it back. With this option, you don’t get to experience yacht ownership but you do get to experience the yachting lifestyle without having to think about purchasing one outright.
What is Fractional Boat Ownership?
Fractional boat ownership is a cost-effective, hassle-free way of buying a boat. With this option, you actually own the boat. However, you don’t buy it outright, you purchase the boat with several boat owners instead. Each owner buys a share of the boat which is typically ⅛ of the boat.
Buying a yacht through a yacht share network is probably the easiest and most affordable way of buying a boat. There are different ways to enter into a shared yacht ownership agreement however, the simplest way is to utilise the services of a yacht share network company also known as a fractional boat ownership company.
They will eliminate the hassle and simplify the legal jargon associated with buying a boat through a shared ownership scheme.
Once you sign on the dotted line, you get to use the boat for six weeks in a 12 month period. You must consider the cost of maintenance too however, it is much cheaper with a yacht share network boat because the maintenance charges are shared amongst the boat owners.
When it comes to choosing a captain and crew, you don’t have to worry about that because the yacht share company will take care of that for you. Thus, eliminating the hassle of yacht ownership. All you need to do is pack your things and move in. When your time is up, move out and come back another time. Remember, you have six weeks out of a 12 month period to enjoy your boat.
Purchasing a Boat
When you purchase a boat outright, you pay full price for the boat upfront. Unless you take out a loan or a finance option to cover the cost of the boat purchase, you would have to pay for everything relating to the boat. For example, boat maintenance and repairs. You would also need to hire a crew and captain yourself too.
Purchasing a boat outright is the most costly way of acquiring a boat, however, if you have the disposable income to do so and you would rather not share a boat, this might be the best option for you.
What is Best For Your Lifestyle?
Let’s first talk about chartering. If you just want to make use of a luxury yacht every couple of years, then chartering might be best for you. Once you charter the boat and spend time on it, you won’t have to think about it again, you just return it to the charter company and move on. It’s hassle-free.
With fractional boat ownership, it allows you to enter the world of yacht ownership, minus the hassle and the cost of outright ownership. Therefore, in a way, it is a cross between chartering a boat and owning a boat outright. Instead of paying full price for the boat, with a yacht share network boat, you pay a fraction of the cost for the boat and you get to use it for six weeks out of a 12 month period. It’s a win-win because you do actually own the vessel, you are not just renting it for the day or for a few weeks.
Fractional boat ownership is great for anyone who wants to own a boat but they don’t want to shell out astronomical amounts of money to do so. Obviously, you do need a healthy bank account if you want to purchase a boat through a yacht share network however, the amount will be much less.
Final Thoughts
Buying a boat is expensive, there is no doubt about that however, as you can see from this post, there are options available to you. If you prefer to just rent a boat instead of buying one, chartering would work well for you. If you have the disposable income and you would rather not share a boat with other boat owners, you might just prefer to purchase a boat outright. However, if you are happy to share a boat and want to save some money in the process, shared yacht ownership would certainly be suitable for you.
