What’s the best yacht ownership program for you?
When you are getting close to the edge of saying yes to your yacht investment, it makes sense to want to try and scout the market to find a yacht charter ownership solution that suits you the best.
There’s a lot of companies out there offering a range of options for the would-be boat owner. This is where you can fall into murky waters. On the surface, many of these ownership programs seem to tick a standard box and the charter operators all look too similar. You might find yourself turning in circles to find a plan that fits your unique wishes.
What are the differences between
yacht charter ownership programs?
Traditional yacht ownership, involves an individual purchasing a yacht. Possibly outright but usually with some form of boat mortgage, loan or similar finance arrangement.
There is now, however, a wider range of smarter yacht ownership programmes available which offer alternative means to enjoying the benefits of ownership at a more affordable cost.
There is also a wide variety of smarter yacht ownership options, grouped into a few key types which we will consider here.
The first two programs described below (shared access and shared ownership) aim to reduce the financial burden of ownership by enabling the sharing of costs.
Finally, the second two programs (yacht charter ownership and yacht charter management) have a different focus; they aim to generate an income through charter to offset some of the costs.
Shared Access Programs
Shared access programs include various types of timeshare, membership programs or boat clubs. The ‘boat club’ owns and maintains several different boats. So each member pays a membership fee which enables an agreed amount of access to one or a selection of vessels throughout the year.
In these programs, the individual enjoys the benefits of ownership, i.e. regular access throughout the year, flexibility to sail to their timetable, and an opportunity to become familiar with the handling of a particular yacht.
However, the member never actually has legal ownership and the responsibility for arranging insurance, and berthing. The maintenance remain with the boat club.
Shared access Programs is truly one of the easiest and most affordable way to getting out on the water with your friends and family, contact us today for more information on how to make the most out of your shared access program!
Shared Ownership Programs
There are various options for private or managed syndicates which enable shared, fractional or co-ownership arrangements. So this option, each individual does have a legal ownership status of a fixed % of the vessel.
The management company will usually arrange maintenance, berthing, insurance, and so on. But the co-owners are responsible for sharing the costs in a pre-agreed proportion.
In some syndicate arrangements, the management company may even facilitate the boat being chartered out for a few weeks each year to generate a contribution to the running costs. Do you have any specific questions about shared ownership programs? Then don’t hesitate to reach out to us!
Yacht Charter Ownership Programs
Established global charter operators typically run popular Yacht Charter Ownership programs.
In these programs, the would-be yacht ‘buyer’ pays an upfront cost and during a contracted period (usually 5-7 years) receives an annual income equivalent to approximately 6-9% of the purchase price. Alternatively, he pays a lower upfront cost but won’t receive income (part financing/leasing programs).
Throughout this contracted period the charter operator is responsible for and pays for all the boat maintenance and management costs. So the buyer simply has a pre-determined amount of access to their nominated boat, or to a selection of similar yachts within the same company, possibly in different locations.
Some programmes, marketed as more performance orientated, have the owner reaping more of the charter income in return the owner is financially responsible for the upkeep and maintenance program that is offered by the charter business.
There is usually only a limited selection of yachts available to buy on these programs; carefully chosen by the charter operator to be most popular with the charter market.
Finally, at the end of the contracted period, the buyer takes legal ownership of the yacht. Different operators provide different options at this stage; the buyer may take their boat away, or they can accept a cash alternative, or they can even re-invest in another ownership programme.
However, a charter operator may offer a buyer a choice of ownership Programs. Still, each has a fixed design and structure. So there is rarely any opportunity to customise the nature of the programme to suit the individual buyer.
Do you wish to se what types of yacht that we have available for yacht charter ownership? Contact us here
Yacht Charter Management
With Yacht Charter Management, you purchase the boat of your choice and then enters into an agreement with a Charter Business (operator). The operator will add the yacht to their fleet and promote the boat to secure yacht charter income. Some Yacht Management Agencies also offer Charter Management services to help generate revenue.
The Charter Business is also responsible for marketing, administration of bookings including handovers. But also cleaning and yacht preparation and takes a commission from each booking to cover these costs, typically 30-40%.
The owner receives 60-70%. But remains responsible for most of the costs of ownership that are managed by the charter business/operator. So the Charter Business can often provide services including berthing and maintenance at favourable rates.
Each Charter Business will design its charter management arrangements. The levels of responsibility placed on the owners will vary in line with the commission structure. These arrangements are often flexible in design and tailored to suit the individual owner.
Our Goal – To Help You Become A Better Decision Maker
The best yacht charter or boat program is the one tailored to your needs. Charter companies offer different ownership options to choose from, but they are often highly standardised.
You should be able to choose the yacht you like in your favourite destination. It’s also important to have a charter operator you can trust and that won’t turn their back on you as soon as the deal is done.
Choose a program that fits your goals and wishes – which is the best yacht charter ownership solution!
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