Your dream has always been to own a luxury yacht, not just some ordinary boat, but a lavish, magnificent seafaring vessel. Many people have that dream, far fewer are living it. Yachting can be an expensive leisure activity. The purchase price for a luxury yacht can start a little north of a half a million and from there and the sky's the limit.

     That's just the beginning. Operating expenses include mortgage, insurance, repairs, crew salaries and docking fees. The expense of sole ownership is the primary obstacle that prevents many people from enjoying yacht ownership.

     Even if sole ownership is not an option for you, there's no reason you can't have a luxury yacht experience as good or better than in your dreams. With all the options available there is almost certainly one to suit your needs perfectly. You can charter, lease, timeshare, or belong to a club, but none of these options give you the pleasure of ownership.

     There are two ways to own a yacht. Sole ownership is for people who want to be able to take off at a moment's notice or customize the vessle. This ability comes with a hefty price. Another option, modeled after the success in the private jet industry is fractional yacht ownership.

     This option is perfect for those who don't plan to spend most of their time on the water, want to live the yachting lifestyle without the hassles, and those who don't want to spend an obscene amount of money on something that they might not end up using that much. This way you get to enjoy a majestic vessel that you might not otherwise be able to afford and your hassles amount to scheduling a time on the boat, taking a cruise, returning to port and walking away.

     When thinking about which arrangement suits you best the first thing to do is assess your wants, needs, and how much money you are willing to spend. Ask yourself these questions: How often will you take the boat out? Do you plan to cruise mostly in one area or do you like to travel? What is your skill level? Would having a captain and crew be worth freeing you of the responsibilities of operation and upkeep? The answers to these questions will help you decide which fractional ownership management company to choose as well as what part of the world your yacht should be located.

     Many companies have begun to offer fractional yacht ownership. Some have even started a leasing program similar to auto leasing in it's structure and approach. Due to the rising cost of luxury yachts and the expense of the shared down payment needed for fractional ownership, leasing may prove to become ever more popular.

What you should know once you've decided that fractional yacht ownership is for you

     It is absolutely essential to determine the financial stability of the fractional ownership management company and the other owners. Talk to the shareholders of the yacht you would like to buy into. Also talk to people who own shares of other yachts with the same management company. You're more likely to get an unbiased opinion from someone who is not in need of any additional shareholders.

     While costs can vary widely depending on the management company and the kind of yacht, there are a few constants. Sole ownership usually requires about a 20% down payment plus associated purchase costs (like broker fees) and you can expect to pay about 10% of the purchase price per year in operating and maintenence costs.

     When a fractional yacht ownership management company buys a yacht for a group of shareholders they bypass the broker and deal directly with the yacht manufacturer. This eliminates the substantial brokerage fee and because the vessel is purchased outright, the yacht carries no loan with its attending costs.

     This arrangement makes luxury yacht ownership feasible where sole ownership would be prohibitive. Fractional ownership enables you to own a luxury yacht, managed by an experienced crew, and travel anywhere in the world for six weeks (or more) of the year.