I have spent the last few weeks tirelessly looking at boats and learning
as much as I can about what it takes to cross oceans. I have formulated the below plan that I would like you all to critique so that I can build a better plan and help others learn as well.
28-year old desk jockey who writes financial reports for work
and even now during my free time... a new low. I will be traveling with my partner of 5 years. She has no experience and I have 3 weeks of experience sailing 40+ foot Yachts. I intend to get ASA
101-104 certifications before buying
. I am the type of person to do things for the story and I would like to cross sailing across oceans off my bucket list.
Destinations & timeframe:
plan is to take 2.5-years to sail from the Mediterranean
. I will start with 6 months in the Mediterranean
, 8 months in the Caribbean
, and the remaining 16 months crossing the pacific into french Polynesia
, new Zealand
and up the coast of Australia
I have saved up $70K USD and have a guaranteed passive income
of $11K per year. So over the 2.5 years, I will have a total of $97.5K available to spend.
I am looking to purchase
a 2015 Bavaria
37 Cruiser (pictures attached) from a charter
company in Croatia
. The boat
is listed for $85K USD and I will be putting down 20% ($17K) and financing
the rest. I am assuming that by paying the full asking price
I can get them to do $8500 in repairs
to bring it up to sail away condition. This would be the equivalent of getting a 10% discount (Fair assumption yes/no?). I would also ask for them to cover closing costs. After the down payment, I will have $53K of savings remaining and $11K a year of income
to fund my adventures ($80.5K over 2.5 years).
Using a 15-year term for the $68K loan at 7% would make the payments $607 per month, $7284 per year or $18,210 over 2.5 years.
There is a video on the YouTube video by Sailing Yacht Florence called “How much does it REALLY cost to sail around the world?” and they recorded an average expenditure of $17K per year. The $17K they spent included everything from food
costs. We plan to be just as frugal as they are but things never go as planned on a sailboat so I will build in an extra $3K of expenses. My total operating costs per year will be an estimated $20K or $50K over the 2.5 years.
Based on the above calculations and assumptions I should expect an initial payment of $17K, and annual cash outflows of $27K to cover operating costs and the loan repayment.
I will sell the boat
for an assumed 15% loss in Australia where these types of boats fetch a premium compared to the eastern Mediterranean. I believe this is a fair estimate because the same make and model averages a 5% decrease in value every year according to YachtWorld listings. This level of depreciation will leave me with a sale price
of $72K for the boat and a remaining loan of $61K, the net of which would leave me with $10K cash in pocket.
If my assumptions hold true, I will be looking at spending $50K in operating expenses + $17K downpayment + $18K loan repayment - $10K reclaimed at sale
= $75K USD for 2.5 years or $30K per year.
Starting with $97.5K cash less $75K for 2.5 years of expenses will leave me with $22.5K
for unforeseen costs and surprises and hopefully enough for a flight home from Australia.
Please let me know where you see holes in my plan and comment with any suggestions you have. All feedback is appreciated!