"The hidden costs of owning a (super)yacht"

[kthoennes]

Now I feel deprived that I have no paid staff on my boat. And I have no big "H" on my foredeck for helicopter landings, and I don't even have a helicopter. I'm a failure in life.

 

[rgano]

Its a rare ring knocker to turn down flag....I couldn't imagine it for the world unless had a super sweet job in the wings.

There are so many reasons to turn away from any more military career in your life after a certain level of success, I cannot begin to enumerate them. It was pretty much all downhill after command at sea, and 32 years later, I am still happy with my decision.

 

[Alaskaflyer]

There’s little work available for them in their home country. Many in the 20 to 30 y.o. range figure it’s a good way to get out and see the world. They’re in demand as unlike American youth and some other countries they will work hard for short money and aren’t entitled in attitude. Owners tend to not like tattoos nor piercings and that fashion is less prevalent as well. My captain friend was a USN lifer left when as O6 offered O7 but had enough. Still knocks his ring when he wants your attention.

Ah, interesting. Thanks.

 

[psneeld]

There are so many reasons to turn away from any more military career in your life after a certain level of success, I cannot begin to enumerate them. It was pretty much all downhill after command at sea, and 32 years later, I am still happy with my decision.

True, when I lost chance of commanding an air station, my reasons to stay disappeared too.

Flag and its possibilities might have been the only other reason to stay, but I knew my number was up, small service, too many opponents and flag was way out of the question.

Anyway, not sure the connection between ringknocker and South African youth have in common.

 

[Pathfinder]

"If you to ask how much it costs you can't afford it"

 

[Nightflyer]

At my Costco - and in the one in Bozeman, Montana where I routinely shopped before moving last year - you couldn't swing a cat without hitting three multi-millionaires.

Probably meant to say Billionaire’s

 

[Lollygag1]

Years ago I had a customer come into my electronics store to have me install a new stereo on his boat. When I started to discuss options and price he stopped me and said "son we are talking about my Grand Banks, so just give me the best that you have". That was my first exposure to the yachting class.

 

[MV Caroline]

‘He estimates that a 150-foot superyacht will cost around $2 million a year or roughly $200,000 a week to run.’

That is some really terrible math.

yeah, I get 38,462. plus. Still a chunk of change I think, though, that maintenance, constant updating and improvements cost me more like 20% per annum. Does not include fuel and cruising expenses.

 

[Bonedoc]

I was recently visiting West Palm Beach, Florida and went for a waterfront jog. I was astonished at the many 150-250 ft yachts in the marina. I Googled one such vessel and the purchase cost was $219 million. Tough to get my head around that amount of spare cash. Here’s the fun part.

The vessel “principal”” was on the back deck with some
technicians trying to get a railing latch to close properly. I smiled as I listened and jogged by- Yes, even the $200 million boats have the same mundane problems that need attention!

 

[Raduran]

And let us not forget the shadow support boats.



https://www.boatinternational.com/yachts/editorial-features/best-superyacht-support-vessels--29257
Hodor was up here two years ago with it's mother ship.

 

[dannc]

I was recently visiting West Palm Beach, Florida and went for a waterfront jog. I was astonished at the many 150-250 ft yachts in the marina. I Googled one such vessel and the purchase cost was $219 million. Tough to get my head around that amount of spare cash. Here’s the fun part.
....

I used to live in South Florida and the size of the boats and the money they represented was mind blowing...

But that was well into last century.

The boats/ships in South FLA I see on today's YouTube videos is astonishing. Just unreal.

Youtube just showed me some video about a catamaran in South FLA, so I had to watch it. I did not recognize the bridges, one was new and the others had been rebuilt. Then there were the boats and ships. They pulled into what most have been the boat builders South FLA operation and there were a dozen or so large catamarans, which are nothing compared to the private ships that are down there, but even the cats were an unheard of size decades ago. The cat in the video docked next to a "sail boat" which is the largest single masted vessel in the world. The mast was 250+ feet tall if I remember right. That mast was tall enough to have a red light to notify aviation...

Later,
Dan

 

[Alaskaflyer]

I love how the shadow support ships are all called out for carrying the helicopters, quads, range rovers and various sizes of tenders and go-fast boats that the owners and chartering guests want and apparently need. Where are the reefer and laundry ships? The spare parts barges?

 

[FWT]

Its not just yachts. Not just planes.

I've seen drop dead gorgeous horse farms go unsold for what seemed to be a song. The elaborate barns, fencing, grounds and so forth demand a full time staff. Many people could easily afford to buy it, but not afford to own it.

 

[Lollygag1]

My support ship is 8 1/2’ long and powered by a 2.5hp engine. Not enough for a copter but does the trick

 

[Alaskaflyer]

Its not just yachts. Not just planes.

I've seen drop dead gorgeous horse farms go unsold for what seemed to be a song. The elaborate barns, fencing, grounds and so forth demand a full time staff. Many people could easily afford to buy it, but not afford to own it.

Yes, buying a depreciated yacht, airplane or property still carries the upkeep costs of the asset when new. Actually, probably more, since age usually means more $ for upkeep. After ten years of owning a fifty-year-old airplane I easily spent the money to buy it twice or more - not counting fuel.

 

[BevinB]

My rule of thumb (yearly budget) for my 44 footer is $1000 per foot per year all in to both own and operate.

If I’m truly honest with myself...

 

[Lollygag1]

If I wanted an investment it would not be a boat, plane or other toy. These are paid for with discretionary income. The super yacht and jet owners just have more of it.

 

[BevinB]

Remember that old saying if it flies, floats or f@&ks rent it ...

 

[tpfbdf]

My support ship is 8 1/2’ long and powered by a 2.5hp engine. Not enough for a copter but does the trick

Thanks THANKS THANKS for the great laugh! As someone still in searching-for mode (not yet owner) ... and one currently weighing the costs/benefits between buying something a bit larger or smaller than my original plan (a difference of 10' or so either way)... this thread was starting wear a bit thin as it was soooo far outside my reality. LOL! Thanks again for re-centering my morning with a laugh! Peace!

 

[backinblue]

+/- 10' in either direction is more than "A bit larger or smaller". That is a huge difference in boats. (e.g. if you are thinking 40', you would be in the 30-50' range). In fact, only a couple feet can make a pretty big difference in most boats.

 

[BandB]

Thanks THANKS THANKS for the great laugh! As someone still in searching-for mode (not yet owner) ... and one currently weighing the costs/benefits between buying something a bit larger or smaller than my original plan (a difference of 10' or so either way)... this thread was starting wear a bit thin as it was soooo far outside my reality. LOL! Thanks again for re-centering my morning with a laugh! Peace!

Well, the entire premise was faulty to start. The idea that somehow the owner of a super yacht didn't know all the costs. Those with the 200' plus yachts typically have an operations team and every line item has been budgeted for years, including outrageous salaries for the operations team.

 

[Alaskaflyer]

The premise of my OP is that the 10% rule of thumb is often thrown around here in ownership circles, and when scanning my daily news feed the other day I saw this article and thought it interesting that major boat management firms seem to agree with it, though some include the cost of fuel and crew salaries in it, others don't.

One interesting thing that isn't often mentioned that was brought up in posts 43 and 45 is, to what value is this magical 10% applied for your budget? If you purchase a thirty-year-old yacht for $200,000 tomorrow, but its original cost was $400,000 in 1991, which is about $780,000 in today's dollars, you are applying the 10% RoT to...? In aircraft owner discussions people always caution that you need to apply it to the higher figure, or perhaps the original purchase price ignoring inflation.

My boat ownership experience - albeit with 25-30' cruisers with gas block engines instead of larger diesel trawler-types - is 10% only if you include the cost of fuel. I did all the minor maintenance.

In the end, it is what it is, and one should go into ownership with a decent reserve of cash - or credit I suppose. A budget projection is only a projection, and theoretically you could have a run of costly maintenance catastrophes that can blow it out of the water. Or not.

 

[tpfbdf]

+/- 10' in either direction is more than "A bit larger or smaller". That is a huge difference in boats. (e.g. if you are thinking 40', you would be in the 30-50' range). In fact, only a couple feet can make a pretty big difference in most boats.

My Bad... ...I should have said +/-5'... basically... I'm looking in the 32'-42' range... which I agree is a major difference (min-max). As for the "buy the biggest boat you can afford" vs. "buy the smallest boat that will work for you" debate... I know that's covered in other threads! (I simply can't comprehend 170' vs 180' LOL!) Peace - Pete

 

[backinblue]

Just be warned, the smallest boat that will work for you will quickly become too small and you'll be looking to upsize. I would lean toward the upper end of the size range, but it depends on lots of factors as to what is right for you.

 

[BandB]

Just be warned, the smallest boat that will work for you will quickly become too small and you'll be looking to upsize. I would lean toward the upper end of the size range, but it depends on lots of factors as to what is right for you.

It's a bit ironic in that most who start with what they think is the smallest that will work for them (clearly they've misjudged in these cases) soon find themselves moving up. However, later in their boating lives, many move down very successfully. The problem is that until trying to live on a 34', you may not realize it's too small for you but after living on a 45', you've developed skills and may understand how to live happily on a 38'.

 

[tpfbdf]

... but after living on a 45', you've developed skills and may understand how to live happily on a 38'.

Great perspective... I imagine that probably holds true for boat handling skills as well: i.e. less of a learning curve going down in size than up in size. (He said making a sweeping generalization! LOL! Forgive me for hijacking this thread... but thanks for the insight!)

 

[OldDan1943]

The hidden cost of boating is that amount you spend over your budget and wont tell anyone the amount.

 

[Seevee]

Wifey B: Oh I so disagree. Hire the right staff, treat them right, and they'll be the joy of your life, becoming incredible friends. We love them all.

Totally agree!


Hired hands, tenants, subs are all assets to make my life easier and would trade them for anything.


Don't have anyone on my payroll any more but still love my help!

 

[Seevee]

Yes, buying a depreciated yacht, airplane or property still carries the upkeep costs of the asset when new. Actually, probably more, since age usually means more $ for upkeep. After ten years of owning a fifty-year-old airplane I easily spent the money to buy it twice or more - not counting fuel.

Alaskaflyer,


Agree... still have my plane but not quite 50 years old... yet. Probably spent triple in costs to maintain and own it since buying it 25 years ago. Not including fuel. And could sell it for more than I paid for it.


I've miserably failed the "if it flies, floats or fxxxs", and still have all of them.