The concept of co-ownership is not a new one, it dates back centuries when fishermen would combine their monetary resources to purchase a boat. It meant that they could purchase a more expensive, higher quality boat and each member of the boat syndication group would pay for their share of the boat.

Co-ownership is also popular amongst real estate investors. A group of investors buy a smaller share in a large property, allowing each buyer to reduce the overall cost of purchasing a property.

How Does Shared Boat Ownership Work?

So, you want to venture into yacht ownership but you don't want to spend all your capital on the high-end luxury boat that you prefer? Well, there is a solution and that is fractional yacht ownership or shared yacht ownership.

With fractional boat ownership, you typically purchase ⅛ of the boat and the other buyers in the yacht syndication group will also purchase ⅛ each.

Every year, each boat owner gets to use the boat for six weeks in a 12 month period.

You can either arrange your own yacht share network deal with a group of friends or business associates. Or, you can purchase your boat through a professional shared yacht ownership company.

When you purchase through a top-tier company, you can rest assured that everything associated with the purchase will be above board. Also, all maintenance and crew and captain will be taken care of for you. Making yacht ownership less stressful and more cost-effective too.

How Much is a Boat Share?

The cost of a boat share depends on the overall price of the vessel. If you enter a fractional boat ownership deal and the boat is worth £2M, you would pay approximately £250K for your share of the boat. In addition, you would pay your share of the annual maintenance charges, depending on the location of your boat.

Is Co-ownership a Good Idea?

If you want to start your yacht ownership journey, Co-ownership might be a good option for you because it allows you to buy into the luxury lifestyle of boat ownership without paying the full price of owning a yacht.

Here are some of the downsides of outright ownership:

Cost - it comes with a hefty price tag
Maintenance is also expensive and often stressful
You handle crew and captain yourself
You might not get to use it as often as you would like

Co-ownership is a good idea especially if you would like to save money on a yacht purchase. Also, with fractional yacht ownership, you can choose a boat that you couldn’t afford as a sole owner.

There are several benefits associated with fractional boat ownership. Here are some of the benefits of buying a yacht through a yacht share network.

More Affordable

The most obvious benefit of purchasing a yacht through a yacht share network is the cost. If you have some disposable income but you don't quite have the capital to buy a superyacht. You might just be able to afford one with a fractional boat ownership deal.

When you buy a yacht, you need to factor in the cost of maintenance too. The purchase price is only one of the costs associated with buying a boat. Nonetheless, with a yacht share network purchase, you can reduce the cost of maintenance quite drastically as all the boat owners split the cost of maintenance of the boat too.

Hassle-free

Opting for co-ownership might be better for you if you want to avoid the hassle of yacht ownership. Maintenance, captain and crew and general repairs, there is a lot to think about. However, with fractional boat ownership, you can eliminate these hassles because the yacht share network company will typically handle these things on your behalf.

Make Full Use of the Vessel

Often, when people purchase boats outright, they sometimes leave the boat unattended for months on end. However, when you buy a yacht through a yacht share network, you get to use the boat for six weeks in a 12 month period. The other boat owners also get to use the boat for six weeks. Meaning that the boat will get used instead of leaving it unattended for months.

Buy a More Expensive Boat

If you want a more expensive luxury boat, it is possible with a fractional boat ownership deal. You pay ⅛ of the overall value of the boat therefore, you can afford to buy a better boat.

Build Friendships with Co-owners

As you are part of a yacht syndication group, you can build friendships with the other members of the yacht share network.

Luxury Accommodation Available for Six Weeks in a Year

You get access to luxury accommodation (the yacht)for six weeks out of the year. So, instead of spending your summer holidays in a hotel or at a resort, enjoy your luxury yacht instead.

Final Thoughts

Buying a yacht as a co-owner instead of buying one as a sole owner is a hassle-free, more cost-effective way of purchasing a yacht. Even if you do have the capital to buy a superyacht outright, you can still choose fractional boat ownership and invest the remaining capital in real estate, cryptocurrency or the stock market. Or, you could save the money for emergencies or other expenses.

Fractional boat ownership will give you the chance to purchase a high-end boat without the stress that often comes with yacht ownership. You get to use the boat for six weeks in a 12 month period and you don’t have to worry about maintenance and other logistical issues regarding your boat.

Yacht Co-Ownership: How Does it Work?