Do you remember the time back when owning a yacht was deemed as an elite lifestyle? Well, it still is. However, trends and fads over the years have evolved which led businesses to come up with fresh and unique ideas to make such lifestyle justifiable, if not affordable.
Shared Yacht Ownership is a term referring to being able to own a portion of the yacht for a definite time, and be officially recognized as a legal owner. This concept of ownership may seem appealing to some who’d like to enjoy the perks of owning a personal yacht. But for some, it may be nonsensical to invest an enormous amount just for a fractional share of a yacht.
To gauge if yacht syndication is a sound investment that would fit your lifestyle and plans, let’s take a look at some of its pros and cons.
It saves you from a huge deal of commitment
One of the basic things to know about owning a yacht is that it requires your time for management and maintenance. With fractional yacht ownership, everything is well taken care of by the management of the property that you bought from. From service repairs to monthly cleaning maintenance, they have you covered. If you’re someone who can’t prioritize committing to your property management needs, yacht syndication may be a great choice for you.
You pay less for more
As appealing as it sounds, fractional yacht ownership does not only make you pay less for an actual amount of the property; it also covers services to make your travel stay as comfortable as it can be. Necessarily, having a boating license is required for one to be able to purchase a yacht. In a shared ownership arrangement, if you opt for a complete zen travel mode, the agreement can provide you captains and crews to assist and cater to you on your voyage.
This means that you’re not only investing in a property but also in a package to make the most out of your stay. In this type of arrangement, personalization may be limited, however, it does not hinder you from making it feel like your home. The valued belongings that you’ve brought over your stay for personalization will be kept and stored by the management under care, for future use until your next yacht stay.
You get to decide if it’s no longer for you
As time changes, your plans and wants also do. When the time comes that the yacht you co-own no longer serves your lifestyle, or you feel like you’ve outgrown it already, you can sell your share anytime. This gives you the freedom to upgrade if you wish to, or simply call it ends. With this, you’ll have to inform your co-owners about your decision regardless if they wish to continue their contract or choose to sell it as well.
You may also have the option to rent it out if you hesitate to sell your part and still want to be a legal owner. It’s important to inform the management and your co-owners about this possible decision to plan and modify the arrangements for rentals. The pro thing about this is that from time to time you still get to use the yacht as per scheduling if no rentals were made on your desired date of usage.
It is cost-efficient
In relation to all of the three pro-points discussed, investing in shared yacht ownership justifies a more affordable way of owning an asset. You pay for what you get to maximize with perks from the monthly payout, insurance, maintenance, and running costs. Should you and your co-owners decide to sell it out as a team or individually, in return you get a return of investment that is somehow adequate and comparable to what you spent for.
Personalization is limited
As to any other property that is shared legally, you don’t get to make decisions on your own. If you’re looking for a yacht that you can personalize from its interiors, color choices, furniture, or even equipment used, yacht syndication may not be the best choice for you. When it comes to personalization, a compromise between the legal owners is the key. What you want may not appeal to them and vice versa.
Duration of usage is constricted and depends on the availability
Like how personalization is limited, how long you get to use your yacht is equally divided with the other owners. It is a fair and square division, however, if you’re someone who prioritizes schedule flexibility and being able to travel anytime you wish, then shared ownership is not for you. Negotiating and arranging when to use the yacht is a great feature for those who want it for special occasions or seasons. With shared ownership, you have to adjust depending on the yacht’s availability.
Relocation requires all of the owners’ decision
Should you choose to travel to a different area or bring the yacht to a new location, all of the other owners get to decide about it. For instance, if you wish to move the yacht from its home berth port, and bring it all the way to a different location’s port since you’re traveling in that location, you would have to wait for your co-owners’ ‘go’ signal before doing so.
If you’re lucky to have co-owners who would agree to this type of decision, then it’s a smooth sail for you. On the contrary, should other owners come to a unanimous disagreement, then you should be open to changing your planned wind’s direction.
To cap it off,
Fractional yacht ownership is not for everyone. If you happen to find all of the pro-points to be fitting exactly what your investment parameters are for in a yacht property, yacht syndication may be for you. It would be best to check out first the different types and models of yachts that you could invest on, as to determine the one that suits your taste and style. On the other hand, If you’re looking for a boat asset that you can personalize, improve, and navigate entirely on your own to amplify your lifestyle, shared ownership may not be for you.
Regardless of your choice, identifying the wins and risks for your yacht investment should be the top priority. Let us know your thoughts if you’re considering shared yacht ownership as an investment or not!
About the author:
Bianca Banda is a writer for MIY Yacht Share, a Yacht Co-Ownership company that offers various luxurious Yacht that is your own. She is a massive lover of Japanese cuisine and enjoys binge-watching comedies or variety shows.