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The pros and cons of buying a yacht for ...

21 July 2025

The pros and cons of buying a yacht for charter

By Christian Brewer British Sailing Team Member and Former Olympian

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Enjoy the yachting lifestyle without
the full-time costs

Owning a yacht in an exotic location is a dream for many, but the reality of buying a boat and keeping it in a far-flung location can be hugely expensive – especially when you factor in how little time you may actually spend on board. That’s where charter yacht ownership offers an attractive alternative.

A brief history

The charter yacht ownership model dates back to the late 1960s, when Charlie and Ginny Cary pioneered the concept in the British Virgin Islands. Their approach gave yacht owners the ability to offset costs while enjoying the Caribbean sailing lifestyle. Their business evolved into The Moorings, now one of the biggest names in the global charter industry. Today, the same model is used by other major players like Sunsail and Dream Yacht Charter, with fleets of yachts all around the world.

Charter yachts are purchased new and come fully equipped with all the safety and liveaboard features required for operation in each location. The types of yacht typically used are from the larger French and South African manufacturers and include both monohulls and catamarans.

But is it right for you? Let’s find out!

A person stands on the deck of a sailboat at sea, admiring the sunset and modern sailmaking in action.

Pros

1. It can make financial sense for frequent sailors

If you plan to take more than 2 weeks of holiday per year – especially in high season – and have the capital available, charter ownership can begin to stack up financially. You’ll usually choose between:

• A guaranteed income programme
• A lease down payment model
• A share-of-income programme (sometimes can be run as a business, with potential tax offsets)

While the yacht will depreciate over time, the income or final lease payment programmes help to counterbalance this.

2. Global sailing opportunities

Most major operators offer a unique perk – the ability to use sister yachts in exotic destinations around the world. This is where these programmes come into their own. From the Caribbean to the Mediterranean, to Southeast Asia, it’s a great way to be able to sail all around the world – the stuff of dreams! If you do go down the charter route, I recommend having a 5 – 6 year plan to sail on every continent.

3. High-specification yachts

Charter yacht specifications are very high – they have to be to meet stringent safety standards – and will include a full inventory within the purchase price. These well equipped ex charter yachts are often in demand by secondary charter companies making them easier to sell at the end of the programme if you choose not to keep the boat.

4. Flexible ownership and use

You can buy the yacht in partnership with others and nominate family members to use your owner time. This maximises usage and helps spread the cost.

5. Hassle-free maintenance

With guaranteed income and lease models, the managing company handles dockage, maintenance, and cleaning. This can be a surprisingly costly overhead, especially in exotic locations. The managing company will follow a routine maintenance schedule throughout the lifetime of the programme.

6. A potential step into yacht ownership

This can be an affordable route into yacht ownership if you plan to keep the yacht at the end of the programme. For example, you might pay 65% upfront, finance the remaining 35% over the charter term, and use your income to offset repayments. The lease programmes are attractive in that you can opt to purchase the title at the end of the programme or walk away. In this case, your 30% (for example) down payment effectively becomes the cost of five years of sailing.

Illustration of a white sailboat with turquoise accents on calm teal water, reminiscent of a Vendée Globe race scene.

Cons

1. High upfront cost

Even with financing, you’ll typically need a minimum down payment of around 30% – requiring a significant initial investment.

2. Heavy wear and tear

Charter boats need to generate good revenue for the managing company, so are typically used for 30+ weeks per year – far more than most privately owned yachts! This results in higher engine hours and greater wear and tear. Ensure a refurbishment plan is in place before taking ownership at the end of the programme.

3. Limited peak-season use

High-season usage is usually limited to two weeks per year. If you have school-aged children, this may not align with school holidays. Off-season sailing also brings more unpredictable or windy conditions.

4. Owner use still incurs some costs

Your usage won’t be entirely free – you should expect to pay for cleaning turnarounds, local taxes, provisioning, and of course, your travel expenses/flights.

5. Additional costs for coding and registration

If you own the yacht outright under a guaranteed or income-share model, you’ll be responsible for coding and registering it for charter. This can be expensive – typically a £30,000+ investment on top of the purchase costs for the necessary safety gear, surveyor fees, and haul-out charges.

6. Risk of leasing without ownership

In lease arrangements, you don’t hold title or lien on the yacht. If the managing company were to go out of business, you could lose your capital investment.

7. Limited choice of yacht

With the large charter companies, you won’t have a choice on the yacht entering the programme. This is specified by the managing company who deal direct with the manufacturer. You would make the purchase through them at the full price.

Is it for you?

Charter yacht ownership works well for many, some of whom will part exchange and do it again and again over many years. The repeat owners are the best ambassadors for the managing company, often happy to share their experiences with would be owners.

There’s truly nothing quite like sailing beautiful blue seas, surrounded by nature, friends, and family. Just be sure to weigh the numbers (with the help of a professional financial adviser), and your priorities before you sign on the dotted line.

Man in red sailing gear steers a small sailboat—Guide to Poole’s vibrant lakeside sailing scene.

Christian has first-hand experience with two of the charter industry’s leading operators – The Moorings and Dream Yacht Charter – giving him deep insight into the business models, ownership programmes, and operational logistics that drive the modern charter yacht market.

A lifelong dinghy sailor, Christian was a member of the British Sailing Team and served as Olympic Reserve in the Tornado class for the 1988 Seoul Games. His combined practical and professional expertise makes him ideally placed to explore the pros and cons of charter yacht ownership.

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