Comparing Yacht Ownership (including fractional and co-ownership) and Yacht Clubs to Artizia Yachts

Updated: Jul 14


Compare yacht ownership to fractional and co-ownership models

Have you ever wondered what goes into operating and owning a yacht? While the costs can be unpredictable based on a variety of factors, we've outlined things to consider when looking into purchasing a yacht as an individual or through a co-ownership or fractional ownership scenario. Of course, we are also going to compare ownership to other boat clubs and Artizia Yachts membership.


As a rule of thumb, just to maintain a boat with an "average use" each year costs around 10%-15% of the boat's value each year of ownership. For simplicity, if you own a $5M yacht, plan on spending around $500,000 to $750,000 every single year.


If you're buying new, expect to have a 20%-30% depreciation within the first two years and then around 5%-10% depreciation every year thereafter.


Why is it so expensive to maintain a yacht?

Let's take a look at what is included in that price tag for operating a boat with a price tag of around $5M. Whether you take on the costs, split the costs, or avoid some of the costs through a club, a yacht still incurs the below fees.

  • Boat slip, where you primarily keep the boat - $60,000 per year

  • Fuel - $150,000 per year

  • Electrical, water, cable, and marina utility fees - $8,000 per year

  • Reserve for mechanical and electrical maintenance - $50,000 per year

  • Reserve for haulout bottom paint and maintenance (every 2-5 years) - $15,000 per year

  • Interior cleaning - $15,000 per year

  • Exterior maintenance, washing, cleaning, and wax - $20,000 per year

  • Captain portion or maintenance company for coordinating services - $60,000 per year

  • Additional captain fee if full-time and managing maintenance - $60,000 per year

  • Additional crew - $75,000 per year

  • Black and grey water pump out and cleaning - $10,000 per year

  • Bottom, hull, cleaning - $7,000 per year

A low estimate of maintenance and operating costs of $530,000 each year!


Options for Yachting

There are a few different scenarios for enjoying a yacht. that have pros and cons for each.


Individual Owner

Pros

  • It's your boat! Available any time provided there are no mechanical issues

  • Hire your own crew and make the boat your own from top to bottom

Cons

  • Incur all costs

  • Requires downpayment and loan if financing

  • Depreciating asset

  • Unforeseen costs, issues, and downtime

  • Need to operate yourself and/or hire a captain and crew

  • Responsible for fuel and all other provisions

Co-ownership / Fractional Ownership

Pros

  • Split the purchase and maintenance costs between three or more owners

Cons

  • Getting a consensus on things such as where to keep the boat, cleaning service, maintenance technicians, crew, captain, etc.

  • Incur fraction of costs

  • Scheduling conflicts and prioritization among owners

  • Requires downpayment and loan if financing

  • Depreciating asset

  • Unforeseen costs, issues, and downtime

  • Need to operate yourself and/or hire a captain and crew

  • Responsible for fuel and all other provisions

Yacht Club

Pros

  • Low cost of entry

  • Low membership fees

  • Not responsible for maintenance fees

  • No ownership, no depreciation

Cons

  • Difficult to find availability due to a large number of members

  • Do not offer/cannot accommodate overnight stays

  • Designed for quick minimal hours on the water

  • No cabins or luxuries that are typically found on a yacht

  • Small boats, 28' or smaller, that only accommodate around six people

  • Older boats that show their wear

  • Bareboat charter and in charge of operating and/or finding captain and crew

  • Responsible for fuel and all other provisions

Artizia Yachts Membership

Pros

  • Hospitality-focused captain and crew are included

  • Not responsible for maintenance fees

  • No ownership, no depreciation

  • A limited number of members to ensure availability

  • Fuel, food, and drinks (yes, even beer, wine, and spirits) are included

  • Ability to book longer trips and stay overnight in addition to short half-day trips

  • Proprietary technology to book trips, manage reservations, plan your itinerary, and manage add-ons

  • Dedicated concierge to accommodate your requests

  • Membership gives you access to all boats at all locations

  • Larger 65"+ yachts at all locations

  • Newer updated boats at all locations

Cons

  • None, unless you are not a member!


 

As a recap, what are the expected costs for the first two years of owning a boat, by the time you factor in depreciation and operating costs, you are looking at a minimum of $1M for operating and depreciation of $1M for a total hit of $2M.


Curious about how Artizia Yachts compares to standard charters, check out this article which also outlines how much a typical four-hour yacht charter costs.

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