Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Rate Thread Display Modes
Old 28-07-2011, 23:46   #1
Registered User
 
Clipper4730's Avatar

Join Date: Feb 2010
Location: Keystone CO
Boat: 50 Bene
Posts: 216
Yearly Cost of Ownership

Hey All

Getting pretty close to purchase of our sailing yacht and am trying to get as good an idea as possible the cost of ownership of a new or almost new 45ish production boat. What I'm most interested in are averages on what you all spend for maintenance, insurance, payment(if you have one) and dockage. We are planning on around 30k to 35k per year for everything based on a 300k purchase with 20% down. Reasonable? High low ballpark?

Thanks in advance
Will
__________________

__________________
Clipper4730 is offline   Reply With Quote
Old 28-07-2011, 23:59   #2
Registered User
 
Ironhorse74's Avatar

Join Date: Dec 2010
Location: Vancouver Washington
Boat: Ed Monk designed 34' Sloop Second Wind
Posts: 400
Images: 1
Re: Yearly Cost of Ownership

There are a lot of variables that make it a tough one. Where you are going to berth the boat is a big one. In the Salish Sea 5500 a year and up for moorage. Another 1000 or so for insurance. Are you going to do any work yourself or are you going to hire everything done? 5-10,000 a year for maintenance. How often are you going to use it? Motor a lot? I just filled my diesel tanks. 4.18 a gallon 105 gallons.

Your mileage may vary
__________________

__________________
Ironhorse74 is offline   Reply With Quote
Old 29-07-2011, 00:47   #3
Registered User
 
SurferShane's Avatar

Join Date: Nov 2009
Location: NSW AUSTRALIA
Boat: L. Francis Herreshoff Ketch
Posts: 1,129
Images: 45
Re: Yearly Cost of Ownership

Biggest thing is to get out and use it. This won't detract from the boats value and will make sure those bucks are worth spending!
__________________
Life is a shipwreck but we must not forget to sing in the lifeboats. - Voltaire
SurferShane is offline   Reply With Quote
Old 29-07-2011, 01:49   #4
Registered User
 
Jamel's Avatar

Join Date: Oct 2009
Location: Beautiful South West Western Australia
Boat: Catalina 42 Pacific cruise to Australia
Posts: 223
Re: Yearly Cost of Ownership

I think my biggest concern would be the payments on $300K - 20%! My guess is that will hold you pretty close to home + work, work....and more work!

In the present finacial climate I would'nt be getting much sleep at night!
__________________
Jamel is offline   Reply With Quote
Old 29-07-2011, 02:32   #5
Registered User
 
swisscraft's Avatar

Join Date: May 2010
Location: on my boat
Boat: searching...
Posts: 172
Re: Yearly Cost of Ownership

Agree with Ironhorse74: a lot of variables:
300k boat price – 60k down payment = Credit of 240k - how long is the payback time? Interest rate?

Assuming you have 5 years and you pay 3% interest you will spend 51k yearly on the payments. I’m not a big fan of boat loans, but if I would never go over 5 years at all. If you use the boat as much as planned you will latest start too invested again after 5 years : Maybe new Sails, Electronic replacement or upgrades and so one.

Most forgotten cost is the trip to the boat – it really can add up if your drive 300 miles/km each way/weekend.

Add mooring, insurance, some depreciation and normal maintenance (and said here as well – it depends on your ability to do work yourself). I learned once that you can take 10 -20% of the price of a newer boat as a yearly cost figure (yes Europe – prices are higher). In my experience that’s pretty close …so 30k would be OK – without finance cost.

Last but not least, don’t let you fool from a the seller: They will tell you anything to sell you a new boat: Warranty, better resell value – sometimes they tell you its even cheaper in longterm . Fact is, a new boat is the second most expensive way to go on the water – it can only be topped by financing that new boat.
__________________
swisscraft is offline   Reply With Quote
Old 29-07-2011, 04:33   #6
Don't ask if you can't handle it
 
sailorboy1's Avatar

Cruisers Forum Supporter

Join Date: Jul 2007
Location: On the boat somewhere
Boat: Hunter 410
Posts: 12,322
Re: Yearly Cost of Ownership

so far this year it has cost me $9100 to operate, repair, upgrade my boat

I expect it to end up being around $11000 after winter storage.
__________________
jobless, houseless, clueless, living on a boat and cruising around somewhere
sailorboy1 is online now   Reply With Quote
Old 29-07-2011, 05:19   #7
Registered User
 
Tempest245's Avatar

Join Date: May 2008
Location: Piscataway, NJ
Boat: 34 Sabre Tempest
Posts: 937
Re: Yearly Cost of Ownership

Clipper, There's not enough information there to render a worthwhile opinion..other than, Congratulations!!

Basically, you have fixed costs and variable costs and unforseen expenses just like a house.

Fixed costs are the mortgage and interest. $240,000 @ 6 % for 20 years would be around $1800. or $21,600 per year. ( have no idea what your terms are)

Slip fee's/ winter storage .. ( have no idea where you are) let's say $150/ft @ 45 ft
= 7,000 year...with electric hook-up

Insurance...$1,000 to 1200. / yr.
Registration ..?

So far you are at $29,600 on " fixed" expenses.

If it's a new boat, hopefully you won't have to pour money into it to fix it but you'll still want and need " things" : Dinghy, motor, grill, hoses, docklines, fenders, electronics, Dodger, Bimini, connector, davits, etc etc, ( don't know what you have )

Then there's variables like ..fuel, slip or mooring fees if you travel...etc etc..

Then you have routine annual maintenance ( do it yourself?) bottom paint..2 gallons? $200 per/ gal Zincs, oil changes, anti-freeze, impellers..etc.

So.....$ 35,000 is in the ball park....depending on what additional..." I need thats" you have after you get going..you could easily be looking at $40,000.
Or $3300/mo.
__________________
Tempest
Tempest245 is offline   Reply With Quote
Old 29-07-2011, 07:56   #8
Registered User
 
lorenzo b's Avatar

Join Date: May 2009
Location: Panama
Boat: Steel trawler 63' Eileen Farrell
Posts: 961
Re: Yearly Cost of Ownership

If you have to finance a boat, you can't afford it. Just lease one when you want one.
__________________
lorenzo b is offline   Reply With Quote
Old 29-07-2011, 08:43   #9
Registered User
 
denverd0n's Avatar

Join Date: Jun 2008
Location: Tampa, FL
Posts: 3,953
Images: 6
Re: Yearly Cost of Ownership

I tend to agree with lorenzo b, but...

Mortgage costs will, obviously, vary wildly depending on how much you finance, for how long, and at what rate. So, getting an "average" from a bunch of people is completely useless. Likewise, dockage/moorage fees vary wildly depending on location, time of year, facilities, etc. So, again, getting an "average" from a bunch of people is completely useless. And same again for insurance. For these things you need to calculate what YOUR costs will be, depending on YOUR circumstances, and not bother with what others are spending.

Averages for maintenance and operating costs are only going to be useful if you can adjust for similar size/complexity of the boat, and similar usage.

In the end, though, all you really need to know is that it will end up costing far, far more than you expect--probably every spare penny that you have. And yet, if you truly love the sailing life, it will absolutely be worth every spare penny that you have.

Good luck.
__________________
denverd0n is offline   Reply With Quote
Old 29-07-2011, 09:14   #10
cat herder, extreme blacksheep
 
zeehag's Avatar

Cruisers Forum Supporter

Join Date: Jul 2008
Location: furycame alley , tropics, mexico for now
Boat: 1976 FORMOSA yankee clipper 41
Posts: 17,777
Images: 56
Send a message via Yahoo to zeehag Send a message via Skype™ to zeehag
Re: Yearly Cost of Ownership

depends on how you actually USE the boat--for cruising you will add more stuff an that costs money, and if your boat is NEW, you HAVE TO buy NEW products, so is more pricey. the dock fees will eat you alive, and then there is the depreciation.....dont forget the yacht club fees , so you have reciprocity in places you wont get to .....

i bought a used oldie and i spent hardly anything to get her and i spent another hardly anything to fix her up and i spent even less to get her to mazatlan for a summer before sailing more south.....i didnt have to buy electronics, as i already had em, jus updated the gps unit for 450 dollars so far, and .....

but to get a new boat and add what mine has is a fortune-- my autopilot alone woulda set me back 25000 usd for it with installation. weatherfax---
garmin-
radar-
all cost money.
have fun and smooth sailing. i hope ye make it out here.
zeehag is offline   Reply With Quote
Old 29-07-2011, 09:22   #11
Registered User

Join Date: Nov 2009
Location: Sailing from NC
Boat: 1999 IP40, Charbonneau
Posts: 82
Re: Yearly Cost of Ownership

I disagree with Lorenzo's statement "If you have to finance a boat, you can't afford it." I would agree that "Maybe you can't afford it."

Financing a boat depends on may things: amount of cash flow, reliability of cash flow, purpose of other assets and rates of earnings... and many more.

If after doing all the homework, you still believe the boat is a fantastic deal it may very well be worth paying some interest money until other assets can be converted. Property is a great example: with all the kids gone, our house now has far too much space and maintenance costs are too high for just two people. But, lots of small projects must be completed before bringing it to market and and timing isn't right yet anyway.

So, do I pass up a beautiful and well maintained boat until cash monies are available or say "life is short", mortgage the boat and enjoy several great retirement years sailing before selling the house and moving on board full time.

We said "life is short".

Bill & Judy
__________________
bchaps is offline   Reply With Quote
Old 29-07-2011, 09:45   #12
Registered User
 
capttman's Avatar

Join Date: Apr 2011
Location: Satellite Beach Florida
Boat: Bruce Roberts 434
Posts: 716
Send a message via Skype™ to capttman
Re: Yearly Cost of Ownership

Cost depends on several things, set up cost to make her what you want or need adds a lot but then once ya get going its a lot less
__________________
Capttman

"When the bow be in the trees we'll be running out of seas"
capttman is offline   Reply With Quote
Old 29-07-2011, 10:00   #13
Registered User
 
Clipper4730's Avatar

Join Date: Feb 2010
Location: Keystone CO
Boat: 50 Bene
Posts: 216
Re: Yearly Cost of Ownership

Well I'm not sure why sooooo many people are glass half empty kinda people. I was just looking for how your similar boat costs per year. Not a critique on my financial plan for yacht ownership. I've been reading on this forum for quite some time and it appears that an alarming number of people just want scare people off by making us wannabes afraid of what it will cost. I have owned several airplanes and if you think that if it say boat on it it is pricey try buying something that has FAA/PMA stamped on the side. I'm just trying to get as much info as possible befoer laying out the cash.

The idea is to put the boat in my S Corp charter it out a little write off the losses and depreciation lower my tax bill and have a nice boat to sail instead of spending upwards of 15k a year on charters. "if you have to finance it you can't afford it" Really? I guess anyone who has financed a car or a house couldn't afford it. Thanks again for the sincere replies

The boat will be either a 49 Bene two cabin or a new leopard 39 based in SoCal probably Marina Del Rey
__________________
Clipper4730 is offline   Reply With Quote
Old 29-07-2011, 10:05   #14
Registered User

Join Date: Dec 2009
Posts: 3,016
Images: 4
Re: Yearly Cost of Ownership

10% of purchase price per year for maintenance alone should be sufficient to keep her in good shape. On average. Likely more in the first two years as you discover all the deferred maintenance the survey missed If you go out on an extended cruise it may be less, partially as you have less opportunity, partially because you are busy having fun, but then after a few years of cruising you'll have your own pile of deferred maintenance...
__________________
daddle is offline   Reply With Quote
Old 29-07-2011, 10:08   #15
Registered User
 
capttman's Avatar

Join Date: Apr 2011
Location: Satellite Beach Florida
Boat: Bruce Roberts 434
Posts: 716
Send a message via Skype™ to capttman
Re: Yearly Cost of Ownership

Quote:
Originally Posted by Clipper4730 View Post
Well I'm not sure why sooooo many people are glass half empty kinda people. I was just looking for how your similar boat costs per year. Not a critique on my financial plan for yacht ownership. I've been reading on this forum for quite some time and it appears that an alarming number of people just want scare people off by making us wannabes afraid of what it will cost. I have owned several airplanes and if you think that if it say boat on it it is pricey try buying something that has FAA/PMA stamped on the side. I'm just trying to get as much info as possible befoer laying out the cash.

The idea is to put the boat in my S Corp charter it out a little write off the losses and depreciation lower my tax bill and have a nice boat to sail instead of spending upwards of 15k a year on charters. "if you have to finance it you can't afford it" Really? I guess anyone who has financed a car or a house couldn't afford it. Thanks again for the sincere replies

The boat will be either a 49 Bene two cabin or a new leopard 39 based in SoCal probably Marina Del Rey

Once set up you don't have to spend all that much.... It cost me very little for a 47 foot sloop but I am a minimalist. you know the cost of your slip and cost of ownership.. Many people paint the bottom every year what a waste I get three years out of a good painting etc.. I would guess if you figure 5K after your known cost you are in the ball park... but as you say some out there will disagree...
1/8 the cost of my flying machine... sold that
__________________

__________________
Capttman

"When the bow be in the trees we'll be running out of seas"
capttman is offline   Reply With Quote
Reply

Tags
ownership

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Newbie Needs Help Figuring Out Cost to Restore Annapolis 30' (Rhodes) mvelimir Construction, Maintenance & Refit 7 23-03-2013 02:17
Multihull Cost kevingy Multihull Sailboats 87 13-09-2011 23:40
Cost of Going Cruising Hannah on 'Rita T' Dollars & Cents 3 11-08-2011 18:18
Y- Valve Ticket Cost? keyspc Liveaboard's Forum 10 01-07-2011 14:23



Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 15:31.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.