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Nowadays, a lot of arrangements make it possible for people to own and do the things that they’ve always wanted. If before, owning a yacht seemed like a thing for wealthy people, only, now, that’s not really the case. Yacht syndication made it possible for people to enjoy the waters and cruise with their own yachts.
Yacht syndication is often called shared yacht ownership and fractional yacht ownership. You probably have an idea of what this ownership is about just by looking at its name. In shared yacht ownership, a couple of owners all have an equal share and rights to the property.
Not only do the owners have equal rights, but also, equal responsibility for the property’s costs, maintenance, and needs. Meaning, you get to legally own a yacht for an affordable rate. Indeed, there are a lot of great perks that come with fractional yacht ownership.
But, just like all things in life, yacht syndication might not be for everyone. To see if shared yacht ownership can work for you, here are 5 things that you should consider before joining one.
1. Are you flexible working with other people?
Just like any partnership, yacht syndication requires a good amount of social skills. After all, that is what this arrangement is all about. Before you sign the deal for shared ownership, ask yourself: am I flexible to other people’s opinions and wants?
You don’t necessarily have to be an extrovert who hosts every single meeting of all owners. The question is if you have the nature to be willing to adjust to your wants and accommodate others for the best. It might seem easy to do, but in reality, when other factors are involved, it can be hard.
If you’re entering fractional yacht ownership with your family and friends, it can be easy. But, if you’re entering one with total strangers, this might be hard. If you are someone who is flexible to schedule changes, other people’s wants, and able to adjust to the majority’s votes, then maybe shared ownership can work for you.
2. How much are you willing to spend on a yacht property?
Money is always an important part of an equation. Regardless of if you’re considering private or shared yacht ownership. Most people who are in shared yacht ownership want to own a yacht at an affordable rate. Some simply do so because it is justifiable to spend less on a yacht compared to buying one privately.
Compare the prices of property under yacht syndication and sole ownership. Then, calculate your budget for those prices. If you are willing to spend thousands of dollars on a private one, that’s great. But, if you think that it’s quite too much to allocate so much money on a single property, maybe yacht syndication is the better option for you.
3. How often will you use the yacht?
As you contemplate how much you are willing to spend, this next question will surely pop into your mind as well. Ask yourself, how often will you use the yacht? If you have work and other responsibilities to attend to, likely, you’ll only use it on holidays and special occasions.
On the other hand, if you have a lot of free time on your hands, maybe you want a property that you can use anytime that you want to. Consider this question well. If you see yourself only using the property on holidays, yacht syndication can be the best option. It will also be more reasonable to spend less on a property that you’ll only use for a couple of days a year.
4. Do you value yacht personalisation or not?
One thing that boat enthusiasts value the most is personalisation. They want their property to emanate and be decorated with their personality. It is nice to be able to own a property and showcase your personality on it. After all, you spent thousands of dollars on the property. It would be great if you could decorate it freely.
If you are one of the boat enthusiasts who value personalisation, boat syndication might not be the best option. One thing to note about shared yacht ownership is that personalisation is very limited. If you want to repaint or change the interior of the property, you have to make sure that all owners agree.
The most that you can have it personalised in shared ownership is through furniture and the things that you bring in with you as you use the property. If this doesn’t sound right to your wants, maybe shared ownership is not for you.
5. How long can you commit to your yacht ownership?
Any type of ownership is a commitment. Usually, in shared ownership, owners have a contract as to how long they’ll own the property. If you like to experiment and want to experience owning different boat models, yacht syndication might work for you.
One great thing about shared yacht ownership is that you are free to sell your share anytime you want to. Of course, if you are under a company, terms and conditions may differ. But, if you get to be an owner in an agreement that allows you to share your part, you are free to upgrade your investment when you want to.
There are a lot of shared boat owners who sell their share after 3 to 5 years. After that, they’ll invest in another boat syndication for a newer and better model. If you want to try out different models, fractional ownership can be perfect for you.
Also, should you happen to find that boat ownership is not an ideal asset for you to have, it’s easy to sell your share and get back a good amount of the money that you invested.
Consider these questions well, so you won’t regret your purchase
It’s hard to decide whether you should enter shared ownership. Especially if you have the heart for water sails and adventures. But, this type of ownership can be a good start if you are still trying to see if you want to own a private boat in the future.
If you’ve been considering shared yacht ownership, answer the 5 questions discussed above first. If your answer to these questions leans towards yacht syndication, take it as a sign that it is the best ownership that fits your current wants. If not, maybe a different type of arrangement awaits you to try.
About the author:
Bianca Banda is a writer for MIY Yacht Share, which offers Yacht Co-Ownerships for sale, leaving the hassle of sole ownership behind by providing a cheaper yet luxurious property that is your own.