Becoming a yacht owner is not easily achieved since, beside the expense of purchasing the craft, there are high costs arising from operating and maintaining it. Therefore, it is no coincidence that the concept of shared or fractional ownership is gaining ground in the luxury craft segment. Fractional yacht ownership is an intelligent investment if what you are looking for is to reduce costs and become a worry-free yacht owner. It is also attractive for people who want to try out the nautical world but still aren’t sure they’ll like it.
How does it work?
Through fractional ownership, each of the members has the experience of being a sole owner without being burdened by all the costs. In the case of FYI Yachts, a maximum of nine members purchase a fractional part—11%—of the actual yacht value; in other words, they are co-owners in equal portions.
Every member can freely use the vessel for 20 days and 6 weekends a year. He must only pay an annual fee, which includes management and operation of the craft, periodic preventative and corrective maintenance as needed, and periodic remodeling in order to keep the yacht in top condition. It also includes food provisions and full use of the water toys, as well as a trained, certified crew providing impeccable, personalized service on board.
The contract has a six-year duration. All payments to be made are clearly stipulated from the beginning, so there are no unexpected expenses or add-ons. This gives peace-of-mind to the owners, who will only have to worry about enjoying the yacht for the time they are allotted.
In a fractional ownership acquisition, there are no restrictions insofar as an owner’s nationality is concerned. The only limitations associated with the yacht are those established by law regarding navigation—for example, the maximum number of persons on board.
If a member wants to sell his ownership portion before the contract has terminated, he will have no problem doing so, and at the price he decides to accept. In that case, the new owner may only make use of the yacht during the remaining time stipulated in the original owner’s contract.
Without a doubt, there are many advantages associated with shared or fractional ownership of a luxury craft; primarily, it offers more people the opportunity to become part of the exclusive lifestyle that is inherent to the yachting world.