Yachting has long been a symbol of luxury.
It’s a chance to own a vacation home on the sea that you can take on voyages to different places in the world. Yachts come in many different sizes from modest 30 ft vessels to glamorous superyachts upwards of 500 ft. The cost of owning even a small boat isn’t cheap. However, you don’t have to be a millionaire to afford one either. It depends very much on the level of lavishness you’re looking for. This post explores a breakdown of all the costs you can expect as a yacht owner so that you know roughly how much you’ll be splashing out.
The initial investment
Let’s start with the biggest expense – the boat itself. Beyond the size, there are many factors that can influence the value of a yacht: the brand, the engine type, the level of on-board facilities and whether it is new or used. It is possible to snag a compact unmotorized sailing yacht for a cool $20,000. However, a dazzling megayacht is likely to set you back at least $500,000. And if you’re looking for something truly extravagant, expect prices to soar into the millions. You can explore sailing yachts for sale online with finance plans. It’s worth noting that you do not have to own a yacht to experience a taste of the high seas – you can charter a yacht for $10,000 per week, $1,000 per day or even $100 per hour in some cases.
Insurance
It’s important to protect your purchase with insurance. This can cover you for various unforeseen incidents at sea. How much does insuring a yacht typically cost? Usually somewhere from 1% to 5% of the boat’s value annually depending on the level of cover you want. This means that you can expect to pay $3,000 to $15,000 per year on a $300,000 yacht.
Maintenance
Now let’s talk about maintenance – the never-ending responsibility of yacht ownership. Keeping your investment shipshape involves carrying out regular cleaning, hull inspections and engine servicing. It’s a bit like owning a car, but with even more upkeep. You should budget about 10% of your yacht’s value for maintenance each year. For a $20,000 yacht, that’s $2,000 per year to keep her in prime condition. Newer yachts will cost less to maintain than older yachts. It also depends on who is doing the cleaning and repairing – you can save big bucks by rolling up your sleeves and doing it yourself.
Docking fees
The location that you dock your yacht can have a big impact on your overall monthly expenses. Almost all marinas charge docking fees – which are based on the length of stay, size of your boat and the amenities at the marina. It’s hard to calculate exactly how much you’ll spend in this case, but a 30 ft yacht is likely to spend somewhere between $300 and $1,500 per month. That’s potentially $18,000 per year at a top quality marina.
Fuel costs
Fuel is another big cost to consider. Motor yachts can guzzle gallons of fuel per hour. Some modern boats are more fuel-efficient, and could be a good option if you don’t want to be refilling too often – especially with gas prices as high as they are now. Sailboats will save you a lot of money in this regard. While most sailboats still have engines, having the option to power yourself via the wind can save you a lot of money over certain stretches of water.
Hiring a crew
Hiring a crew to navigate and maintain your boat could provide the ultimate luxurious experience. However, be prepared to spend a lot more extra dosh! An experienced captain will likely demand a salary of $50k or more – and that’s just one staff member. It’s no wonder that many yacht owners choose to take sailing lessons and manage their boat themselves.
The bottom line
So, how much is it likely to cost you in total to own a yacht? The annual commitment is likely to be between $30,000 to $300,000 – depending on how glamorous you want to go. This might be too much money for some people to fathom. But for those who are passionate about sailing and the sea, it is likely to be worth it for the adventures and the sunsets over the sea. Approach yacht ownership with a financial plan so that you don’t end up sinking into huge debt. Consider the fact that if you have a small income, you may be able to find ways to make money from your yacht such as offering others boat rides or letting other charter it out for periods of the year.
