The Pros and Cons of Investing in Shared Yacht Ownership

Shared yacht ownership is not a new concept however, if you are considering yacht ownership for the first time, you might not know that shared yacht ownership exists.

There are many advantages of sharing a yacht however, there are some downsides too. Here, we will explore the pros and cons of investing in shared yacht ownership. Hopefully, the information provided here will facilitate the process of choosing the best option to suit your specific needs.

Is Boat Sharing a Good Idea?

Boat sharing, also known as fractional yacht ownership is an easy, cost-effective way of owning a yacht. The truth is, yacht ownership is expensive, you can’t avoid the sky-high price tag associated with yacht ownership. However, when you purchase a yacht through a yacht share network, you drastically reduce the cost and the hassle of buying and owning a boat.

If you are thinking about buying a yacht and you want to reduce the overall cost and the stress that might come along with yacht ownership, you can consider fractional boat ownership instead.

How Does Fractional Yacht Ownership Work?

When purchasing a boat through a fractional yacht ownership scheme, you essentially, share the cost of a boat with other boat owners.

Typically, eight boat owners split the cost and each buyer pays a fraction of the cost of the boat. Buying a boat this way will significantly reduce the cost of yacht ownership, not to mention, the hassle that is often associated with owning a boat outright.

Once you purchase your yacht shares, you get to use the boat for six weeks in a 12 month period. All maintenance costs are split equally between the boat owners, which reduces the total cost of yacht ownership.

How Much Does Shared Boat Ownership Cost?

The cost of shared boat ownership will depend solely on the initial price of the boat. For example, if the overall cost of a boat is £40 million. You would pay ⅛ of £40 million, meaning that your initial cost would be £5 million instead of £40 million. You would then need to pay for maintenance which is typically 10 percent of the total cost of the boat.

Now that you understand how fractional boat ownership works, let’s delve into the pros and cons of shared yacht ownership.

Pros of Fractional Boat Ownership

Hassle-Free

One of the major advantages of buying a yacht through a yacht share network is the hassle-free nature of shared yacht ownership. Buying into a yacht share network is seamless and stress-free as the yacht share company will take care of everything for you. Taxes, surveys and service history are all taken care of. In addition to this, yacht shareowners avoid the hassle of maintenance, hiring staff and other duties associated with yacht ownership.

Exclusive Access To The Latest Boats

We all know that yacht ownership is costly and purchasing a modern, luxury boat is expensive. With fractional boat ownership, you get exclusive access to the latest boats at a fraction of the cost.

Affordable

Affordability is a major draw when it comes to shared yacht ownership. Instead of paying £50 million for a boat, for example, you would pay £6.25 million instead which is a significant saving for you, the boat owner. You can essentially buy into a luxury lifestyle at a fraction of the cost.

Buy With Confidence

When you enter a shared yacht ownership agreement, you can rest assured that the quality of the boat is high. Why? Because other boat owners can provide testimonials to eliminate any doubt regarding your chosen boat.

Purchasing a boat through a yacht share network might be a new concept for you, especially if you are new to yacht ownership. However, as you can see, there are several benefits associated with buying a boat through a fractional yacht share agreement. To recap:

Hassle-free
Exclusive access
Affordable
Buy with confidence

Now that we are done with the benefits of investing in a yacht share network, here are the cons:

Cons of Fractional Yacht Ownership

There are not many disadvantages of investing in a shared yacht ownership boat. However, we can consider one possible disadvantage and that is:

Sharing a Boat

If you would rather have full access to your boat at any given time, you might consider the idea of sharing a boat with other boat owners a disadvantage. However, the truth is, most boat owners only spend a few weeks out of the year on their boats. Therefore, it makes financial sense to share a boat instead of buying one outright.

When you opt to sign into a yacht share network, you will share the boat with seven other boat owners; however, you get exclusive access to your boat for six weeks out of the year. Therefore, you won’t have to share your time with other boat owners. Each owner has their allocated time. Therefore, the idea of sharing a boat might seem like a disadvantage to anyone who is unfamiliar with the concept of shared yacht ownership; however, it is the most cost-effective and stress-free way of purchasing a boat.

Final Thoughts

Buying a boat outright is costly and often stressful. Choosing to invest in a fractional boat ownership agreement will not only reduce the cost but will eliminate the hassle that is often linked to sole ownership. You get to buy into a luxury lifestyle and enjoy all the benefits of owning a yacht minus the hassle. There will always be cons when it comes to investments; however, in this case, the pros certainly outweigh the cons.