Whether you want to buy a share of a yacht, sell a share of a yacht, or are completely new to the concept of yacht co-ownership, this article is for you. We’re sharing some of the most popular questions we get from clients, and our answers.
What is yacht co-ownership?
Yacht co-ownership – also referred to as fractional yacht ownership or shared equity yacht ownership – describes an ownership structure that enables a designated number of co-owners to share all the benefits and costs associated with owning a yacht.
Why choose co-ownership?
The immediate appeal of co-ownership, as opposed to conventional yacht ownership, is that you only pay for the time you spend on the yacht. If you were to own a yacht outright, you would be paying for the yacht even when it’s simply docked in the marina.
Plus, with shared ownership, your yachting budget can go a much longer way. The more people you have to share the cost with, the bigger your budget and your yacht options will be. Rather than having just one single budget to work within, you’ll have double or triple that depending on how many partners you share the yacht with.
Another major advantage to co-ownership is the hassle-free experience it offers. As part of AvYachts Co-ownership Plan, management and maintenance responsibilities can be taken care of for you. Rather than worry about planning yard times, hiring and managing crew, and the day-to-day challenges of yacht ownership, you’ll be able to spend more time enjoying your yacht and having fun.
How does co-ownership work?
With yacht co-ownership, each owner gets to use the yacht on a fair basis according to how large their share is. There is a round-robin system that rotates the most popular weeks of the year, such as high-season or school holidays, with the flexibility to swap weeks.
What is the right number of co-owners?
There is no one right number of owners. It is dependent on a variety of factors, including the size of the yacht, plus where and how often you plan on using it. Our expert matchmakers will work with you to find just the right ownership structure for you.
Why do so few companies offer Co-Ownership services?
Co-ownership has long been a part of yachting culture – whether it’s family members buying together, business partners, or even friends. So why is it that so few companies offer co-ownership services? The honest answer is that it requires a lot more effort and dedication to put a shared deal together than a single ownership deal. In some cases, it can be twice to four times the work, so a company/broker needs to be passionate about the concept of finding the right fit for you and be experienced at successful yacht partner matchmaking.
Why consider selling a portion of your yacht?
The demand for yachting is growing. Every yacht owner has weeks their yacht is sitting empty. That is never good for the yacht, the crew, or the bottom line. While some owners open their yacht for charter to defray the cost, another option is to sell ¼ or more of your yacht for a lump sum plus an annual rate for a guaranteed number of weeks a year. As the seller, you set the rules of ownership. It is a guaranteed flow of funds and will keep the yacht and crew moving.
If you are looking to buy a share of a yacht, what factors should you consider when setting a budget?
Owning a yacht is expensive, no matter what your budget is. Here are some questions to consider when setting your budget:
- Do you want a crew, or are you planning on being the captain and maintaining the yacht?
- Usage weeks: How many times a year are you going to use the yacht?
- Number of staterooms: How many people will you be traveling with?
- Destination: Where do you want to go on the yacht?
- Homeport: Where do you want to keep the yacht?
- How long do you want to own the yacht?
- Do you want to handle the maintenance and logistics of owning a yacht?
Any additional considerations?
At the end of the day, it is not only the purchase price of the yacht that you should keep in mind. The yearly maintenance and running budget are some of the most important numbers to consider when shopping for a yacht.
As the expert in helping you buy or sell a share of a yacht, AvYachts matchmakers can connect you with the yachting experience you dream of, at a fraction of the price you imagine. Ready to get started? Contact us today.