Dreaming of golden sunsets, wine glasses, and a pristine captain’s hat? Before making your dreams come true, there’s the dull side of dealing with the figures. Owning a yacht can be as expensive as you want, which is why it’s important to be aware of the costs you’ll face when buying exclusive yachts.

Let’s start with the basic principle of yacht management.

The bigger the boat, the more you can expect it to cost. If you’ve got a small yacht in Mallorca, you’ll always spend less than someone with a gigantic superyacht. With that out of the way, let’s investigate the costs you’ll have to consider when buying your vessel.

How Much is a Yacht?

Your first expense is purchasing a yacht. Unfortunately, the cost of owning a yacht varies heavily. It’s a volatile market and what someone paid for a yacht a year ago isn’t necessarily what it will cost you to own the same yacht today.

The main factors in how much a yacht costs are:

·  Length

·  Model year

·  Condition

·  Location

·  Vessel age

·  Brand/model

Purchasing a superyacht fresh out of the yard will always cost more than a second-hand fifty-footer. Likewise, who you’re buying it from matters. You can still find incredible bargains if you come across the right buyer.

In any case, the cost of buying the yacht is only the first part of determining how much you’ll need to set aside to keep your vessel in tip-top condition.

What are the Running Costs of Owning a Yacht?

It’s incredible how many first-time boat owners are completely unaware of the actual costs of owning a yacht. The cost of exclusive yachts doesn’t end with the purchase. They begin with them.

So, what are the main running costs of owning a yacht?

Yacht Exploitation Costs

It will always cost money to exploit your yacht. Whenever you charter a yacht in Mallorca, most operational costs are included in your package. When you own a yacht, you must pay for these costs directly.

So, what are the most important primary operational costs?

·  Fuel

·  Mooring fees

·  Crew

·  Communication fees

·  Food and beverages

·  Leisure costs

It’s impossible to give a rough estimate of these costs because it will depend on the size of your yacht, where you’re going, and for how long. That’s why so many owners invest in a yacht management company to deal with all this.

Yacht Maintenance Costs

The biggest expense of yacht ownership is regular maintenance. Even when you’re not using your boat, it will still cost you money. Maintenance is a non-negotiable aspect of owning a yacht and must be done regularly, regardless of how old your pride and joy is.

Maintenance costs include:

·  Maintenance of critical equipment, including engines, sails, thrusters, and safety equipment.

·  Occasional maintenance in case your vessel sustains damage.

·  Painting

·  Cleaning

The easiest way to cut down on maintenance costs is to do it yourself, but not everyone wants to spend their weekends working at their yacht berth. Moreover, many maintenance tasks require skills far beyond the average person.

Taxes and Insurance

Depending on where you’re based, you may have to pay different taxes on your yacht. Obviously, the easiest way to deal with this is to relocate to a more favourable location. However, yacht insurance is something you can’t afford to scrimp on.

Yacht insurance protects your vessel from anything that might happen to it, including crashes, breakdowns, fires, and theft. These are specialised policies and you can expect to spend anywhere from 0.8% to 1.2% of the yacht’s purchase price annually on premiums.

Annual Port Fees

Unless you’re planning to live on your boat permanently and sail the seven seas, the chances are there will be a part of the year where your yacht stays where it is. Port fees are another big part of your ownership costs, but the costs can spiral if you’re in a region where you have to dry-dock your yacht.

Winterisation costs are enormous, requiring transportation, handling, and storage. Taking a large yacht out of the water and moving it inland is a complex, expensive process. That’s why it’s best if you’re in a place where you can leave your yacht in the water for the whole year, such as in the Balearic Islands.

Port fees vary depending on the boat you have, the region, and the marina’s infrastructure. They can be anything from a few hundred pounds to a few thousand pounds per year.

Yacht Depreciation

Another aspect many owners fail to consider is depreciation costs. Yachts are like cars in that they depreciate heavily over time. Unfortunately, the rules that apply to vehicles don’t apply to yachts. Rates of depreciation are defined by price inflation, exchange rates, economic conditions, and so on.

The easy rule of thumb is to assume that your yacht will immediately depreciate by 10% in the first year of ownership, followed by 7% every subsequent year. After the fifth year, depreciation usually slows down, but this is balanced by the fact operating and maintenance costs tend to increase.

Conclusion: How Much Does It Cost to Own a Yacht?

Owning a yacht depends on the boat you’ve bought and where you’re based. A rough idea of the spectrum is that the average owner will spend 10-25% of the yacht’s purchase price annually on ownership. You’re likelier to have a larger number if you have a bigger boat.

Of course, this can dampen the joy of owning a yacht. If you don’t want to concern yourself with facts, figures, and the responsibilities of ownership, the best solution is outsourcing the problem to a reputable yacht management company.

Yacht Ownership Costs FAQs

What is the 10% rule for yachts?

The 10% rule for yachts is an oft-used figure that states yachts cost 10% of the purchase price to maintain every year.

Is owning a yacht worth it?

Buying and maintaining a yacht is a significant expense. However, if you plan correctly it’s an investment that more than pays for itself in terms of fun, freedom, and adventure.

What is the average lifespan of a yacht?

Average yacht lifespans depend on the material. For example, a fiberglass yacht could last up to 60 years, whereas an aluminium yacht may last 50 years. Like with anything, the lifespan of any vessel depends on how well it’s taken care of.