Shared Ownership

Don't Go it Alone

There are many good reasons to consider a fractional ownership of an expensive yacht, but first, we would like to explore a few of the many good reasons why not to buy and own a yacht by yourself.

Although many can afford it, a million plus dollars is not a casual expenditure, especially since it is a depreciating asset and the initial cost is but the first of a steady stream of expenses. When we speak of a boat being a depreciating asset, it is particularly hard on the single owner at sales time to take the hit all alone. Although Nordhavns hold their value better than most and rivaled by none, there still will be a loss at sales time. Better a fourth of the loss than the whole enchilada.

Although many can afford it, many cannot afford the time to use it the way an asset of this caliber deserves. What is particularly vexing is the time it takes to manage the details, its care and feeding.

While the allure is great, some may not prefer to rush into a new lifestyle. An ocean traveling boat like the Nordhavn isn't like buying a new car; it creates a meaningful change in thinking and living. You might be wise to try it out first.

Benefits of Shared Ownership

This brings the argument to the positive aspects of fractional ownership. There are some negatives to be sure and we will air them also.

This may seem to obvious to say, but the most important aspect of a one fourth interest in a yacht is that you pay one fourth of the acquisition price and the ongoing maintenance expenses.

With fractional ownership the boat is used more, which is better for the machinery.

Also with fractional ownership comes professional maintenance without the owners' physical time commitment. When you arrive at your boat, it is fueled, provisioned and ready to go.

Partial ownership can mean new friendships with the other owners, and cruising with another owner couple can be rewarding.

The Downside

The big negative is the fact that owners cannot arrive at the Marina any time they want. There must be reservations and a schedule so as to not step on the toes of other owners. Also, the boat may not be in the place where you might want it. Cruising is cruising however, so this may not be such a big impediment.