Most people don’t know that a yacht share is an excellent way to own a boat without all the hassles or the high cost. Likewise, they don’t realise that there are two primary sharing options, both of which are excellent, though one may be more suitable for your needs. These include owning a share of the boat with an equal number of days for use or paying to use a boat whenever you want, sometimes by redeeming points from your allocation. There are advantages and disadvantages of both options.
Owning A Share
With Luxury Boat Syndicates, you can own a share of your boat. You invest capital (money) into your yacht instead of the management company. While it may not seem like much, your share is always safe, even if the company is in financial trouble.
You can own a portion of the boat with others, so you don’t have to pay the full amount of the vessel. Because you all have a vested interest, you are likely to keep the boat in better condition than someone else. However, the management company you choose will help with maintenance and servicing.
Once the syndicate period has ended, you will receive your capital back, less depreciation.
The disadvantages, though few, can include committing for a longer period (at least three years and sometimes five) before you can sell your share and up-front investments.
Time-Share Systems
The time-share system doesn’t allow you to own the yacht. While you don’t pay up-front money to buy and have a shorter commitment period (a year or less in many cases), you won’t get any money back at the end of the syndicate period. Likewise, the company’s financial troubles could be yours as well, since you could lose all the money you’ve paid in. Plus, you don’t have control over the yacht’s usage.
