Fractional Yacht Clubs Explained

Eric Schaefer

Fractional yacht ownership is a smart way to make efficient use of a depreciating asset.

Your time on the water is limited, so partial (or fractional) ownership makes economical sense; your investment correlates to actual boat use. The typical yacht owner only spends three weeks a year on their yacht anyway, according to Yacht and Vacations Charters Magazine.

Furthermore, you can bypass the complexities of initial purchase because, if you join one, a fractional ownership club will handle the purchase transaction for you.

Annual fees that the clubs charge can be steep, but they use the money for key elements such as white-glove service, maintenance, management, insurance and (sometimes) crew.

Budgeting your time on a fractionally owned yacht depends on what fraction you buy in to, and share options vary from club to club.

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