Owning a yacht is the epitome of sophistication and opulence. If you get to own a luxury yacht in your lifetime, you have certainly experienced real luxury. There are several types of yacht ownership and you don’t always have to go down the traditional route. For example, shared yacht ownership dates back centuries when fishermen would combine their resources to purchase one boat instead of each fisherman buying their own individual boat. This is an affordable way of buying a boat and it is still a feasible way of buying a boat in the modern day.

You can also buy a boat outright, this is another option for you. Read on to find out more about the different types of boat ownership in this ultimate guide. Here we will explain the different types of yacht ownership available to anyone who wants to purchase a yacht.

What Are the Different Classes of Yachts

As well as understanding the types of yacht ownership, it is also useful to understand the different classes of yachts too. Here are some of the different classes available:

Open Yachts / Sports Cruisers.
Semi-Displacement Yachts.
Fishing Yachts / Sport Fishers.
Hybrid Yachts.
Classic Yachts.
Sailing Yachts.
Motor Yachts.
Displacement Yachts

The Types of Yacht Ownership

Here are the different types of yacht ownership available:

Outright Ownership

The most common type of yacht ownership is outright ownership, where you purchase the boat outright. You own the boat and you share it with anyone else. There are pros and cons to owning a boat outright, here they are:

Pros

You have access to your private boat whenever you want
You get to choose everything about the boat yourself with no input from anyone else
You can choose your name for the boat

Cons

Here are some of the cons of outright ownership

Expensive
You need to hire all the staff for the boat
You are solely responsible for the boat

Fractional Boat Ownership

Fractional boat ownership is a convenient, cost-effective way of purchasing a boat. With this type of yacht ownership, you reduce the hassle and responsibility of boat ownership.

Here are the pros and cons of fractional boat ownership:

Pros

Much cheaper than outright ownership
Share the responsibility of owning the boat
No hassle
Stress-free

Cons

You have to share the boat

Note: sharing the boat could be considered an advantage and a disadvantage. However, it does mean that the responsibility lies on the shoulders of all the boat owners, not just you. You split the cost of the maintenance which makes yacht ownership much easier.

How Does Fractional Yacht Ownership Work?

Fractional boat ownership, also known as shared yacht ownership offers a simple solution to the stress often associated with outright yacht ownership. This is how it works:

Choose the boat you want
Sign an agreement and pay for your share of the boat
You get to use the boat for six weeks out of the year
Usually, there are eight boat owners, you would pay for ⅛ of the boat

With fractional boat ownership, it is best to purchase your boat from a professional yacht share network company. However, the other option would be to share the cost of buying a luxury yacht with your friends or family. Buying a boat this way is beneficial however, you will still need to take some responsibility for the boat. Whereas, with a fractional boat ownership company, they would typically take care of the crew and other issues about the boat. Therefore, all you would need to do is hop on and off the boat without thinking about cleaning, crew and other maintenance problems.

Hire Purchase

With hire purchase, you essentially take out a loan to buy the boat. It’s like taking out a mortgage to buy a house. You pay a downpayment and pay the rest in monthly installments. There are pros and cons to this type of yacht ownership too.

Pros

You have time to pay
You get to enjoy the boat while you pay

Cons

High-interest payments
You don’t own the boat until you finish paying
If you default on the loan, you could lose your boat

Yacht Timeshares

With yacht timeshares, you actually don’t own the boat. It offers you the opportunity to experience yacht ownership however, you just own the right to use the boat. You don’t actually hold a stake in the boat itself. So, in a sense, it’s not yacht ownership but it’s close enough. Yacht timeshares are typically cheaper than buying a boat outright or fractional boat ownership but again, you don’t own the boat.

What Is The Best Type of Yacht Ownership?

There is no wrong or right answer to this question. With yacht ownership, it is best to go with the most suitable option for your current situation and lifestyle. If you have lump sum capital, then, by all means, purchase a boat outright. However, even if you do have the capital, you could save money by utilising a fractional boat ownership deal. Then, use the saved money to invest in something that might offer you a better return on your investment.

Buying a boat through a hire purchase deal might sound appealing however, the interest charges will be high and you don’t fully own the boat until you finish paying the loan. If you fail to make payments on time, you could risk losing the boat.

Shared yacht ownership is affordable, convenient and stress-free, it could be considered one of the most financially viable ways of owning a yacht.

Types of Yacht Ownership (Your Ultimate Guide)