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Old 28-07-2011, 22:46   #1
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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
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Old 28-07-2011, 22:59   #2
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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
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Old 28-07-2011, 23:47   #3
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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!
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Old 29-07-2011, 00:49   #4
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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!
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Old 29-07-2011, 01:32   #5
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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.
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Old 29-07-2011, 03:33   #6
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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.
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Old 29-07-2011, 04:19   #7
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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.
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Old 29-07-2011, 06:56   #8
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Re: Yearly Cost of Ownership

If you have to finance a boat, you can't afford it. Just lease one when you want one.
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Old 29-07-2011, 07:43   #9
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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.
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Old 29-07-2011, 08:14   #10
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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.
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Old 29-07-2011, 08:22   #11
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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
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Old 29-07-2011, 08:45   #12
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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
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Old 29-07-2011, 09:00   #13
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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
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Old 29-07-2011, 09:05   #14
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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...
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Old 29-07-2011, 09:08   #15
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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
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