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Old 25-12-2008, 20:23   #1
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Annual cost of crusing?

Hello, I like many people have the ambition of cruising around the world. I am currently 22 years old, and I have a job which can net me around 50k in the bank per year. How much $$$ do you think I need to have saved up in order to facilitate a round the world cruise (~ 3 years).

The costs per year would include,

1.) monthly installments on a boat
2.) Insurance
3.) Food, gas, maintenance etc.
4.) Random stuff

How much do you think I need in the bank if I sold the boat as soon as I returned home (or maybe held on to it)?

I want a relatively speedy boat though, as I would like to cruise at a moderate rate of travel.

I have read 80k as a number, which is very doable for me, however if I could do it for cheaper that would be awesome as well.
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Old 25-12-2008, 20:35   #2
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Hi Scm007 and welcome to Cruisers Forum.

There are lots of topics on cost of cruising and unfortunately the question is like asking how long is a piece of string.

Try the search feature, select the google search for best results, and see what you get.

In the meantime I am sure there will be more opinions to come.

With the boat paid for I reckon you could cruise quite economically. 3 years is a long time so don't forget to factor in boat maintenance.
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Old 25-12-2008, 21:20   #3
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Quote:
Originally Posted by scm007 View Post
<snip>

The costs per year would include,

1.) monthly installments on a boat
2.) Insurance
3.) Food, gas, maintenance etc.
4.) Random stuff

<snip>
Numbers 1 and 2 will be the source of your highest hurdle, 007. If the vessel you purchase for your circumnavigation is new enough (read, expensive enough) that you cannot buy her outright, and therefore need to purchase through the use of financing, I believe that you will discover that your (probably) limited credit history will not qualify you for the financing you need, especially in the current credit environment.

If you do manage to obtain the necessary financing, your lender will insist that the vessel (his collateral) be fully insured. If it's an older vessel, getting insurance will be problematic, to say the least. If it's a newer vessel, capable of a punishing, three-year circumnavigation, it will be expensive, and the insurance on it will be, ipso facto, expensive as well.

What is more, that insurance will only be in force under certain conditions and in certain locales. I can assure you that you will find it virtually impossible to obtain insurance that will cover your financed vessel in all the waters that it will be necessary to transit to complete your circumnavigation.

The bottom line is that, like Ronnie Simpson, you may find yourself forced into a box that compels you to purchase your vessel outright, spend what is necessary to bring it up to world-cruising standards, then risk it all by setting sail completely naked - that is, without any insurance whatsoever. If, like Ronnie, you abandon the effort six hundred miles from shore and are taken aboard a passing cargo vessel, you may find yourself stranded in China with no money, no vessel (and all your worldly possessions aboard) and contemplating pedaling a bicycle across all of Asia in an attempt to get to Europe.

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Old 25-12-2008, 21:31   #4
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Lol who is this Ronnie Simpson guy?

Hrmmm, what do you think is a reasonable coffer to have then, supposing I have to buy the boat outright?
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Old 25-12-2008, 21:35   #5
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Is there anyway to waive the "fully insured" aspect of a loan considering the fact that I can make quite a lot of money per year, and I have a lot of years left in me. I would be willing to sign a "no bankruptcy" sort of loan if it came down to it.
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Old 25-12-2008, 22:22   #6
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Is there anyway to waive the "fully insured" aspect of a loan considering the fact that I can make quite a lot of money per year, and I have a lot of years left in me. I would be willing to sign a "no bankruptcy" sort of loan if it came down to it.
No, because that option isn't your's. Keep in mind, the vessel belongs to the lender until you have paid off the loan - you're only "renting" it. That is, as long as you make the monthly payments, you get to keep it. And you'll most likely find that your loan documents will expressly forbid the removal of the (lender's) vessel from nearby waters in any event.

Incidentally, you can't let any potential lenders know that you're intending to sail his/her/their vessel over the horizon and be gone for at least three years or you'll never obtain financing. Of course, withholding such information would place you in extreme jeopardy, in that you would be obtaining your loan fraudulently, and you could be arrested, and the vessel impounded, in some far-off port in a foreign country with a different concept of "justice" than your ideal.

Look at it this way, if you invested your capital in an asset that would be in the possession of a young man who intended to remove that asset from the immediate vicinity, and take it around the world with the intention of returning no sooner than three years later, would you be comfortable as long as the monthly payment arrived on time?

Doubtful.

Bankruptcy is the least of a potential lender's worries. What's more, such a vow carries no weight, does it? If you're flat broke, for whatever reason, what is your lender going to do to enforce your pledge not to declare BK, hold you in indentured servitude until he's satisfied?
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Lol who is this Ronnie Simpson guy?
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Hrmmm, what do you think is a reasonable coffer to have then, supposing I have to buy the boat outright?
In answer to the question "How much does it cost?" I'll just repeat the old adage, "As much as you've got!"

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Old 25-12-2008, 22:50   #7
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So it only costs 10k? I'm set! Seriously what do you think is a realistic expectation for purchasing say a used, older, quick, 36' monohull, without major work needed? Add to this refit costs and food + maintenance what do you think I'm looking at? 100k I could probably come up with in 2 years time.
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Old 25-12-2008, 23:12   #8
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So it only costs 10k? I'm set! Seriously what do you think is a realistic expectation for purchasing say a used, older, quick, 36' monohull, without major work needed? Add to this refit costs and food + maintenance what do you think I'm looking at? 100k I could probably come up with in 2 years time.
This is unanswerable, 007, as I'm sure you're probably already aware. There are just too many variables.

Still, if you do indeed have the ability to accumulate capital as you have suggested, then I'd advise doing so. Whether of not that's the correct number is irrelevant - making it your goal and actively pursuing it is the more important point.

You may well find that after a couple of years of diligent saving, you no longer have the desire to "invest" that hard-earned capital in an old boat. Or, you may find that a vessel that matches the description above is no longer adequate to satisfy your cruising dream.

By that point, you will have proven to yourself that you have a unique gift for the accumulation of capital, and, as a result, your dream may grow accordingly. You may then not be satisfied with anything less than a new 40'+ catamaran, and decide to re-double your efforts to save enough to make it happen.

Or, who knows, you may find yourself the father of an unexpected surprise by the time the next couple of years fly by. That could change your priorities utterly and completely.

You get the point. Begin saving as if the amount you can put together over the next couple of years is what you'll need, then see where you are in your life when you get there. Worst thing that happens, you change your mind - but you've got $100k to apply toward your new dream.

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Old 26-12-2008, 05:53   #9
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Just like any complex endeavor, long-distance cruising is something that has a very steep learning curve. Asking the question, "how much will it cost to sail around the world?", indicates to me that you're at the very beginning of the curve. The problem with the question you've asked, is that the answer is, "it depends". There are too many variables.

You'll need to educate yourself before you can begin to grasp what's involved. One way to begin is to read some books written by cruisers. For example, Beth Leonard's book, Voyager's Handbook, has a lot of info that will be useful to you. Read the books. Once you've developed a sense of what cruising is really all about, you'll be able to ask more specific questions, and begin formulating your plan.

Your dream is possible--many have done it. But there's no quick and easy way to get all the answers. It takes time, effort and determination.
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Old 26-12-2008, 06:50   #10
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Forget the speedy boat. That will no doubt extremely raise the cost. With the money you're earning. You can probably in a year buy a nice comfortable seaworthy boat through diligent shopping, and saving.

There are deals to be had, but cash in hand is how you get them. Save your money, and in the meantime buy a $2-4k boat, and learn how to sail in all weather. With this boat, and your sailing time. You will be able to figure out what will suit YOU best. If you buy something that averages 5 knots you are speedy!......BEST WISHES in figuring it out, and WELCOME. You will find endless knowledge here, but it's up to you to research, read, and participate.........i2f
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Old 26-12-2008, 07:00   #11
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Great answer Imagine2frolic!

Save some cash, buy a cheap boat, sail around on weekends for a couple of years. Meanwhile, save your money and look for a boat you like that is capable of the ultimate sailing you intend. Whatever that boat is, the practical advice is to pay it off. You really cannot honestly finance it, for the above said reasons. Leave some cash behind with parents or someone you trust, so that in an emergency you can fly home and start over. Forget the insurance, that cash is your insurance (at your age, that's an OK thing to do, you can start over). Then, takeoff and see what happens.
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Old 26-12-2008, 11:21   #12
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Good answers people. Yes I am at the beginning of the learning curve, although I have read a few books on the subject.

Hopefully once I have some more experience I will know what kind of boat I want, at which point I can figure out expenses.
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Old 26-12-2008, 11:53   #13
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But maybe as a baseline people can tell me what they paid for their boats, and how much it costs per year to run them? Or if that is too personal I apologize.
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Old 26-12-2008, 14:29   #14
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You can do some research on sites like yachtworld.com to see costs of boats. As far as how much to run per year. The bigger the boat the bigger the expenses.

If you like cavier & marinas the bigger the expenses. We seldom take a slip as in maybe twice per 6 months, and it's usually to pick up family, or friends. After they get use to the boat we drop ashore with the dinghy....lolololol

It's all about choices, and how you choose to live. As far as feeding yourself. It's about the same as ashore unless you are a good fisherman, and spear fish etc. etc. Then you have a huge savings.......i2f
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Old 26-12-2008, 15:57   #15
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I think eranger summarized very good i2fro advice, best and most specific one among all.

007 your learning curve started very good as you started here at the Cruisers Forum

Stick to experienced sailors as i2fro and Hud, they will help you find your way thru..
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