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Fractional Yacht Ownership
Smarter than chartering
Smarter than owning outright
Here is why
Right-size your yacht ownership
If you only have time to enjoy your yacht part of the year, then why own it the whole year? Right-sizing your ownership to the portion you want to use dramatically reduces your purchase price, your operating cost, enables you to buy into a much larger and more luxurious yacht, and eliminates wasted capital.
Leisure as an investment
Yacht co-ownership reduces your investment and recurring expenses to that of chartering. But where with chartering you’re giving your money away, with co-ownership you invest it in a tangible asset that you can sell again. This reduces the total cost of ownership to below the total cost of chartering, making co-ownership an easy—and smart—decision.
Hands-off yacht management
Co-ownership comes with some of the best yacht management, so you can focus on the pleasure of leisure, while your yacht management company manages the business of yacht ownership. Crew, maintenance, insurance, provisioning and trip planning are all expertly taken care of.
It's the financially savvy way to owning a yacht
FEATURED YACHTS
Below is a selection of yachts available for fractional ownership. Contact us for a full range of options.
Frequently Asked Questions
What's the catch?
If it sounds too good to be true, it probably is. So what’s the catch?
Truth be told, there is just one. It is scheduling. If you own your yacht outright, only you get to use it, so you can use it whenever you want. That freedom comes at a high price, of course, but if you can afford it (and prefer to allocate those funds to scheduling freedom rather than a bigger yacht) then owning outright is best for you.
When you share a yacht you won’t be able to spend every year ‘s Christmas, New Year’s, Spring Break, 4th of July and other major holiday onboard. But you can each year spend one or more of these on rotation. A very reasonable schedule of rotational scheduling priority gives each owner first pick on prime time each year.
If you’re bound by school holidays, co-ownership might not be for you. If you have scheduling flexibility, then the catch might just be the fresh catch of the day you’ll be having onboard.
How small or big of a fraction can I buy?
The most common share size is 25% which gets you 40-60 days onboard per year (not a full 90 days as some time is lost to scheduled maintenance and relocation, as well as turn-over between owners). Shares as small as 1/8th are available on some of the larger yachts. If you want more time, simply buy multiple shares, in the same yacht or in several different yachts for more variety.
What happens if there is a disagreement between the owners?
This is a problem many foresee but in practice does not exist.
If you were to buy a yacht together with your friends you’ll all be sharing in the maintenance, management, hiring and firing of crew, and everything else involved with owning a yacht. Soon, you might not be friends anymore, as disagreements about what needs to be done by who and how will likely deteriorate the friendship.
With fractional yacht ownership, however, there is always a yacht management company involved, and they own all the headaches. They’re in the business of managing your yacht, so that you don’t have to. You just own the enjoyment of owning a private yacht.
Most fractional yacht owners don’t even know who the other owners are, because they don’t have to. Everything is professionally managed. In fact, where you think you need to vet the other owners, you really need to vet the management company. They’re the ones that’ll make or break your experience onboard. We can help you pick the right one.
Can I sell my share or can I only exit when the whole yacht is sold?
While you don’t own the whole yacht, as fractional owner you do own your share. And that share can be sold to a next owner at any time. Many clients start with a single share in a smaller yacht to dip their toe in, and quickly decide they want more, or bigger, or both. We help them sell their smaller yacht share to a new owner and get them a share in something bigger—often from someone who him or herself is moving up into something even bigger.
Are there tax benefits to fractional yacht ownership?
The primary financial benefits of fractional yacht ownership are reducing your acquisition and operational cost for the same amount of leisure (or, if you keep the budget the same, scaling into a much larger yacht than you could otherwise afford).
If you’re looking for accelerated depreciation under Section 179 for instance, then you must operate your yacht as a business. Very few co-ownership management companies accommodate this. A smarter way for this approach is to own the yacht outright and maximize the amount of charters. This is an excellent model to optimize your investment, and we’re ready to help you with this too.
What goes into the operating budget and what doesn't?
Fractional yacht ownership not only reduces your acquisition cost, it equally reduces your operating cost. But what exactly are the expenses that are shared between owners, and what expenses are each owner’s own?
Everything related owning, operating and maintaining the yacht is shared pro-rata between all owners. Think of crew salaries, crew provisions, insurance, maintenance, repairs, upgrades, relocation expenses, etc. These are well defined expenses and you’ll see an operating pro-forma with every yacht we offer.
Everything related to your own use of the yacht, such as provisions for you and your guests, marina fees and fuel during your use, all vary with each owner and are the sole responsibility of each owner.
What happens if one year I cannot use all my time?
You’ll have a dedicated concierge to help you schedule your time, and they’ll try to make sure every owner gets to benefit fully from their available time. But in case you somehow can’t make it, you can in most cases gift that time to someone else. So friends, family or clients can be onboard without you needing to join them. I’m sure they’d appreciate that very much! And that is probably your best option if you can’t use your time yourself, because unused time typically does not roll over to next year.