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Fractional Yacht Ownership

Fractional ownership is a cost effective way to own a yacht.

Yachts are luxurious and impressive - but they are also expensive and difficult to maintain. Having a fractional yacht is a new trend that allows people to enjoy the benefits of a fabulous yacht without the hassle.

Cost: The costs are divided by how many owners are participating in fractional ownership. In most cases this number will be four. There is an initial buying price, which would typically be 25% of what it would normally cost to buy a yacht, and operational costs. Operational costs pay for slip fees, insurance, fuel, maintenance, and crew. You can finance a yacht since it is a deeded ownership.

Depreciation: A good quality yacht is worth about 75% of its original value after several years of use. With four owners sharing the loss, each owners' depreciated amount would only be 6-7%.

Liability: The boat is purchased by a corporation and owners are a shareholder, providing a corporate shield for liability purposes.

Most people who own their own yacht don't use it all year, but they do pay for it all year. Sharing responsibility of a yacht allows owners to reduce the costs of owning and operating the yacht, while enjoying the benefits. Operating fees pay for a full crew, chef, concierge, maintenance and management. Having everything taken care of not only saves money, but gives owners peace of mind.

Some fractional yacht management companies go above and beyond just one service. Privatsea is an exlusive membership for luxury yachting and provides access to a fleet of superyachts, private jets and a portfolio of premium private residences. Privatesea also makes travel arrangements, gets members access to private clubs and invitations to exlusive events.

SeaNet is another service that allows owners to exhange time on their yacht. Owners are typically assigned weeks, and may get weeks that they are unable to use. This exchange program allows owners to exchange weeks amongst themselves to get time that they are able to use.