Fractional Ownership Model: Understand the fractional ownership structure and how it works. Fractional yacht ownership typically involves purchasing a share of the yacht with other individuals or entities. It’s important to be clear on the terms and conditions, ownership rights, scheduling, and any limitations associated with the arrangement.
Figuring out what yacht is best for you, your family and all of your needs is not easy. But we are here to help guide you on that path. Here are just some of the things that you should consider before making your decision.
Hopefully you spent some time looking at some of the yacht fractions available on our site and getting an idea of the yachts what they each offer and what the costs are both to purchase as well as the annual expenses.
If you choose a yacht that is managed by our company and you will become a member of our exchange program. Our program provides members to exchange usage with other members. You can exchange your usage with other yachts in different locations. It’s a huge bonus to be part of this program.
Remember, every time you use the boat you have to pay for the expenses associated with your time on the boat such as: fuel, dockage, food & beverages. These are traditionally called APA’s (Advance Provisioning Allowance) is the standard system to pay your expenses on a luxury yacht. The APA essentially creates a bank account for the Captain (and chef) on the yacht to provision on your behalf.
If you just plan on staying on the boat, and using it as a hotel, and not traveling very far and not using too much fuel, and eating out at restaurants, that cost can be very minimal.
Do we get into the 3 different types of Fractional sellers?
Do we get into the two different types of yachts, Local & Destination?
Yacht Selection is key Research and evaluate the yachts available for fractional ownership. Consider factors such as the size, type, age, condition, and features of the yachts offered. Determine whether the yachts meet your preferences, intended usage, and desired level of luxury and comfort. The items below will help you find the right yacht for you.
When considering buying a fractional yacht, there are several important factors to take into account. Here are some key things to think about:
- Purchase Budget
- Annual expenses & Reserves
- Location of your yacht – City and marina
- Yacht Program – Local or Destination
- Size & Stabilization
- Age & Condition
- Staterooms, Bathrooms & Number of guests
- Amenities & toys
- Yacht Management
- Usage and Scheduling
- Crew Size
- Co-Owner Compatibility
- Exit Strategy
- Legal and Contractual Considerations
After getting all of this information we will be able to do a much better job at referring to you a Yacht Broker, that understands that market and those yachts.
At the bottom of this page please fill out our form, and that will help us find the right broker for you.
Budget
The first step is to figure out your purchase budget, Its really important that you figure out a range of how much you would like to spend because the sky is the limit. If you are new to owning a yacht it’s always best to start smaller and work your way up. The average large yacht owner keeps his yacht for 3-5 years. The great thing about buying a fraction of a boat is that it’s a lot easier to sell a fraction then to sell an entire boat.
Annual Expenses & Reserves:
Annual expenses of a yacht are generally 10-20% of the purchase price. These costs may include: monthly maintenance fees, insurance, dockage, crew salaries, repairs, upgrades and management fees. Make sure you have a clear understanding of all the financial obligations and how they will be shared among the co-owners. The good news is, you’re only paying a fraction of those annual expenses each year and getting the same amount of enjoyment of the avg full owner. Our management team will work with captain to figure out what is the right amount of money to collect to keep as a reserve for when unexpected issues come up.
Locations & slips:
Most of the yachts listed on our site will come with a home port slip, its important to understand that getting slips in very desirable locations like Miami or Palm Beach can be very difficult. When you buy a new boat at the boat show, they don’t come with a slip, the local marina that you may want could have a 3-year waiting list.
Local Yacht Day trip program:
Boats that will just be in one location fall into our local yacht day program. You get to use those boats for up to 75 days per year and you could stay on them for 1 to 7 days at a time. Think of it as your floating hotel with 3-4 bedrooms in a great city so you don’t have to buy a home or stay at hotels.
The Destination Yacht program,
Mostly larger yachts 80’ to 100’ and above with 4-6 staterooms that are located in incredible locations around the world from the Bahamas and the Caribbean to the Mediterranean, and far beyond. These yachts basically give you seven weeks of use per year and you could stay on them from 3 to 7 days at a time.
Size & Stabilization
Consider the size of the yacht based on your preferences and requirements. Larger yachts generally offer more space, amenities, and comfort. They may have multiple decks, spacious cabins, dining areas, lounges, and recreational facilities. Smaller yachts, on the other hand, can be more agile and suitable for navigating in certain areas with restrictions on yacht size. It simple the larger the yacht the more it costs and the more crew it takes to run it. Larger yachts have more systems and toys that can break down so understand the upkeep goes up exponentially with larger yachts. It is true that the larger the yacht the more stable it is especially in big seas. But today with the invention of stabilizers even smaller yachts can be incredibly comfortable when out at sea.
Age & Condition
We only allow yachts that are less than 10 years old to be in our program. All Yachts must be in above average condition based on a recent survey. They cannot have any major repairs scheduled that the new owner would be responsible for. We find that yacht older than 10 years old have a higher propensity to break down and have higher maintenance costs. We go over all details of the survey and work with the captain to understand the true condition of each yacht listed on our marketplace.
Staterooms, Bathrooms & Number of Guests
Choosing the right size yacht is always difficult, but its always a good idea to come up with a minimum & maximum for each item. Evaluate the number and configuration of bedrooms or cabins on the yacht. This depends on your specific needs and the number of people who will be using the yacht. Determine if the layout includes sufficient private sleeping accommodations for yourself, family, and guests. Consider factors such as the size of the beds, storage space, and ensuite facilities. In some ways, you could think of your new fractional yacht as a floating hotel, where you’ve get X number of days or weeks a year that you can use it instead of purchasing a house or condominium.
Amenities & Toys
The larger the yacht to more things it has to offer, from Jacuzzis and pools, to jet skis and event a Helicopter on the very high end. Just understand the more amenities it has the more it cost to maintain or replace. If you plan on doing some SCUBA diving or want to learn how to you need to make sure the crew has the gear and a dive master to teach you. Every boat has a list of amenities that comes with it.
Yacht Management:
Many of the yachts will be managed by our professional management services to handle maintenance, repairs, crew, and scheduling. Our team is responsible for overseeing the yacht’s operations. Make sure you understand how your yacht is managed.
Usage and Scheduling:
We have a yacht sharing point system program that makes it fair for all owners. It’s very important that you understand the allocation of time among the co-owners and whether there are any restrictions or blackout periods. Ensure that the scheduling system is fair and suits your intended usage patterns.
Crew size & Accommodations:
All of the yachts in our program have at least a full time captain. Larger yachts often have a crew onboard to handle operations, maintenance, and hospitality. The crew may include a captain, deckhands, engineers, stewardesses, and chefs. Some fractional ownership programs may have shared crew arrangements, while others may require hiring additional crewmembers as needed. A well-designed crew area is essential for the comfort and privacy of the crewmembers. Adequate crew facilities can contribute to a harmonious and efficient onboard environment. It’s important to have a clear understanding of the size, bedrooms, and crew arrangements offered by the fractional yacht you are considering. This will ensure that the yacht meets your requirements in terms of space, comfort, and the level of service you desire.
Co-Owner Compatibility: With our professional yacht management program the ownership compatibility is minimized. Most owners may never even meet each other. Some owners will want the other owners to sign a non disclosure of the other owners of the yacht. We have a simple code of ethics on the yachts that each fractional owner and their guest treat the yacht better than if it was there own. The job of the captain and crew is to make sure that happens. Any damage caused by an owner or their guests will be documents by the crew or the next guest of the yacht and the owner that caused the damage will be invoiced for the damage. That money will be taken out of that persons reserves.
Exit Strategy: Understand the options for exiting the fractional ownership arrangement. FractionalYachts.co is the largest marketplace for fractional yachts. When you are ready to sell your fraction we will gladly help you with that process.
Legal and Contractual Considerations: We provide all of the contracts and agreements used for each transaction free of charge. Please review all legal documents and contracts associated with the fractional ownership with a maritime lawyer who specializes in yacht ownership to ensure that your rights and interests are protected. Pay close attention to any provisions regarding liability, maintenance responsibilities, dispute resolution, and termination of the arrangement.
By thoroughly considering these factors, you can make an informed decision when buying a fractional yacht and ensure that the arrangement aligns with your preferences, usage patterns, and financial capabilities.
Buyer intake form
Please fill out our intake form at the bottom of our page, it will give us a much better idea of what you’re looking for and helping you find the right person that could help you purchase the best fractional yacht for you and your family.
If you have any questions, you can email or call us at any time, and our concierge will gladly help you answer any questions
