Shared Yacht Ownership: The Do’s and Don'ts of Being a Co-Owner

Do you ever dream about owning a yacht? However, the thought of purchasing one outright sends shivers down your spine? Well, we have some good news for you. There are other options, you might have already heard of this cost-effective way of entering the world of yacht ownership, that’s why you are here, to find out more. 

Either you have just purchased your first fractional boat ownership yacht or, you plan to invest in a yacht share network soon. Either way, there are several factors that you should consider when becoming a yacht co-owner. 

Here is a comprehensive list of the do’s and don’ts of being a co-owner: 

What is a Co-ownership Agreement? 

A co-ownership agreement is a legal agreement to enter into a co-ownership deal with other buyers. You can enter a co-ownership deal to buy real estate too. You essentially pay to purchase a share of the boat when you sign a co-ownership agreement for a fractional yacht ownership boat. 

How Much is Fractional Yacht Ownership? 

Fractional boat ownership doesn’t have a static cost, it depends solely on the price of the boat. For example, if you want to buy a yacht that is worth £40 million, you would have to pay ⅛ of £40 million. Meaning that the amount you would pay into the yacht share network would be £5 million.

Are Boat Shares Worth it? 

If you want to purchase boat shares, then you are already aware of the benefits of owning a yacht. The truth is, buying yacht shares is far more cost-effective than purchasing a boat outright. Not to mention, you get to purchase a high-end luxury boat for a fraction of the cost of an outright purchase. Boat shares are definitely worth it if you are a yacht lover and want to purchase a yacht, but would rather avoid the pitfalls that are often associated with owning a boat outright. 

Do’s of Co-Ownership 

Here are the Do’s of being a co-owner: 

Understand the agreement 

Before you sign on the dotted line, understand the agreement you are about to sign. Most reputable fractional yacht ownership companies will provide you with all the necessary documents to purchase your new yacht seamlessly. However, it is vital that you fully understand the agreement that you sign, you don’t want any surprises later on down the line. 

Understand the Laws 

There will be several clauses in place when you sign your agreement however, you should also make sure that you understand the laws associated with boat ownership too. The beauty of buying a yacht through a yacht syndication company is that it’s hassle-free and less stressful. The fractional boat ownership experts will provide you with all the information you need. They will also be on hand to answer any burning questions that you might have. 

Get to Know Your Co-owners 

Typically, with fractional boat ownership, there are eight owners altogether. Each owner will purchase ⅛ of the vessel. Getting to know your co-owners is not mandatory but recommended because it will facilitate the process of handing over when it’s someone else's turn to use the boat. 

For example, you want to start your journey from Monaco and the previous boat owner is spending their summer holiday close by. You can get in touch with them and ask them to dock the boat at a specific location to facilitate the process. 

Make Full Use of the Yacht 

As a boat shares owner, you get to spend six weeks out of the year on your boat. Try and make full use of your boat to make the most of the money spent on your shared yacht ownership boat. 

Often, yacht owners who purchase their boats outright, only get to use their vessels for a few weeks in the year. With yacht syndication, you can purchase a high-end, luxury boat and you can rest assured that you won’t waste your money. The other co-owners can also use the boat for six weeks in a 12-month period which means that the yacht will get used more often. 

Don’ts of Co-Ownership 

Here are some of the don’ts of yacht co-ownership: 

Know Your Limits 

Unless you have unlimited funds, you will most likely have a budget for your boat purchase. Know your limits and purchase a boat within your financial budget. Aside from the actual cost of the boat, you will also have to split the cost of maintenance with your fellow boat owners. Therefore, you should consider how much you have to spend before you go ahead and sign on the dotted line. 

Typically, you should reserve ten per cent of the price of the boat for annual boat maintenance. Therefore, make sure you put money aside to take care of maintenance charges. 

Don’t Buy From Unknown Sellers Online 

Buying from unknown sellers online is risky. Instead, purchase your fractional yacht ownership boat from a shared yacht ownership company. 

Don’t Buy a Boat Without Doing Your Research First

Buying a boat is a major decision and you will have to invest a significant amount of money. Therefore, do your research before you go ahead and buy a boat. 

Don’t Mistreat the Boat 

Yachts are precious, respect the time, effort, expense and craftsmanship that goes into constructing a luxury vessel. Remember that with co-ownership, there are multiple boat owners, therefore,  treat the boat with kindness and respect for the fittings, fixtures and everything else on the yacht. Yes, you own the boat, but you want your luxurious yacht to last for many years to come. 

Final Thoughts 
If buying a yacht is a lifelong dream of yours, purchasing one through a   yacht share network is a good idea. Especially if you want to avoid the hassle of being a sole owner. The do’s and don’ts of co-ownership will hopefully provide you with some insight into some of the ins and outs of shared yacht ownership.