From classic to luxurious designs, there are so many reasons to own a yacht.
They are a work of art which bring unforgettable memories and experiences with them. If you enjoy travelling around the world and getting away, why not get on board this amazing trend? Before taking the plunge, let’s take a look at yacht expenses to consider so you’re fully prepared.
Yacht Expenses To Consider Before Purchasing
With owning everything, there’s additional fees and costs to consider in order to keep your prized possession in the best possible working order. The list is fairly long, but we’re focusing on the most expensive and important ones.
1. Mooring Costs
One of the most significant yacht expenses include the mooring costs. For a fixed cost annually, you’ll need to consider mooring your yacht. Firstly, decide on the location you’d like to base your yacht – preferably not too far from your home. Obtain your quote and shop around to check on competitor prices.
Remember that you’ll still need to consider off-season hauling, as well as storage costs. This is only applicable if it’s in an area where the boat needs to come out of water during the colder months. Ensure that this is included in your quote to obtain the most accurate fee possible.
Depending on where you choose in the world, prices will vary, but typically you can expect to spend $3,500 a night. This is also dependent on the occasion, time of year, and if there’s any special event happening. It’s worth researching websites to search about the world for seasonal mooring fees.
2. Yacht Insurance
Not everyone thinks about yacht insurance when they first make a purchase, but it’s something you’ll need to look into. As with other insurances, shop around for not only the best quote financially, but for a policy which suits your requirements and needs. Certain companies specialize in discounts for your skills and things stored on your boat. There are plenty of facets which can affect the insurance price. One of these is where you cruise – specifically, how far offshore you plan on going.
Insurance protects you and your yacht in the unlikely event of an accident during route. It’s there to prevent a loss of some kind – particularly a financial one. Of course, each company is unique and the policies will vary. However, they generally cover accidental damage to your yacht, others, and sometimes even structures or other equipment. In worst case scenarios, insurance will help you if there’s loss caused by an injury to you or your passengers.
A standard insurance policy covers fire, theft, sinking, stranding, collisions and accidental damage. It will also protect you from frost, personal effects, damage to mast and rigging, damage to the engine and more. The price and size of your engine will affect the insurance price. Where you store the yacht can significantly affect the price too. For example, it’ll be cheaper if you store it in a sheltered location compared to a marina.
3. Maintenance Costs
Yacht expenses include general maintenance on your boat. It’s hard to predict a budget for this, as you may or may not need to pay regularly. On average, the amount you’ll need to fork out depends on the age, condition and how often you use your boat. If you store your boat in water, it’ll need anti-fouling paint regularly. Engines require maintenance to check on oil levels and other components. Not to mention, there will be inevitable mechanical problems which can crop up every now and then.
You can improve the price you pay by doing some manual checks yourself. For example, change the oil filters and engine oil level when necessary. Also, check the engine belts and hoses for damage before setting off on a long journey. The battery connections need to be tightly fastened, otherwise it could lead to injury. Keep safety equipment on board at all times, and ensure they’re in good condition. This includes a life jacket for all passengers, fire extinguisher, first aid kit, life rings and more. Although this can help to prevent any serious mechanical issues, these things cost money. You also need to ensure you’re prepared for unexpected maintenance when it’s necessary.
4. Paying For Crew
Not everyone considers crew costs when thinking about yacht expenses. However, you may require a team of professional and experienced boat crew onboard. A captain on a 160-foot vessel with five years’ experience would cost from $84,000 to $180,000 annually. You’ll also need other staff including engineers, stewards, deckhands, chefs and more. Thankfully, there are plenty of companies which can take the pressure off of the hiring process.
For a very large yacht, full-time crew aboard help you to run the vessel, as well as ensure it’s in safe condition. There are variables to consider, but for a large, expensive yacht, experienced crew can help to maintain the yacht without you having to worry about it. Typically, a salary will add up to 20 to 25 percent of the yacht’s value. This is clearly a significant figure to spend, but completely worth it to improve your yacht experience.
5. Operating Costs
Another to add to the list of yacht expenses is the operating costs. The first element to talk about is fuel. Yachts aren’t small, so keeping them running will set you back a hefty figure. It’s fairly difficult to budget and predict how much this figure will be, as it depends on how much you use the boat, the distance, and how you drive. As a guidance, you can predict the average distance, how many trips you intend to take a month, and multiply this by the boat’s cruising fuel burn.
Newer yachts are more economically designed to help reduce your operating costs. You can minimize your fuel costs by opting for energy-efficient boats and researching your yacht’s most efficient speed. Not all booklets will specify this, but you can work it out yourself by comparing the different speeds you use and how much fuel is consumed. Typically, operating costs are around 10 percent of the yacht’s value.
6. State-of-the-Art Features
No luxury yacht is complete without state-of-the-art features. How you buy your yacht isn’t how it has to stay. You can upgrade and personalize your boat to suit your tastes and lifestyle. Some of the most expensive and luxurious yachts in the world feature an apartment on the upper deck. However, perhaps you’d like to transform your upper deck to an outdoor cinema. Consequently, you’ll require extra funds for the equipment and amenities.
You’ll also need to consider any extra electricity costs these features use. If you do hope to add furnishings to the upper deck, consider shading to protect the items and your skin when on the deck. Add-ons to the yacht could affect the insurance costs as you’re changing the size and design of the boat.
If you like to arrive in style, you might consider a helicopter pad. Plenty of superyachts feature helipads, but many are creating matching colour schemes. This doesn’t just add a safe and practical feature to the yacht, but keeps a consistent theme throughout the design.
What Other Yacht Expenses Do You Know?
Yacht expenses are important to consider before signing on the dotted line. However, don’t allow these costs to affect your decision to cruise around the world. Having a yacht is one of the best things you can own, but you need to think about the hassle and prices along the way.
What other yacht expenses are there that we’ve missed? Let us know in the comments to advise people looking to get on board.
Related Article: History of Yachting: Where it Started and Where it’s Heading