Report – Boat Ownership – The true cost revealed | By Brendon Grieve
Thank you for taking the time to download this report. I assume you are in the market for your first motor yacht purchase, or you are upgrading from a smaller vessel and want to arm yourself with the all the information available before you purchase.
Most boat owners that I know say, when they step onboard their boat their mind is instantly distracted from the stress of their work. They literally escape from the worries of the office, focus on the cruise, wind down and de-stress. Within moments they feel like they are on holiday. This is just one of the many benefits of owning a boat.
Establishing your budget is probably the most important single factor to consider before you make your purchase. One thing to remember, ‘the view is the same no matter what vessel you are sitting on’, whether it be a 12ft tinnie or a 100ft superyacht. Boat within your comfort zone. Purchase outside of what you can comfortably afford and your boating experience will be memorable, for the wrong reasons.
To get the most use from your motor yacht it needs to be ready for an impromptu cruise at all times. If it is not, then you are missing out on one of the true benefits of boat ownership. Preventative maintenance will ensure your motor yacht will always be available in an instant, be it for entertaining a client, a twilight cruise, scooting across to your favourite island for the weekend, a friends birthday, or just because it is a beautiful day…perfect for boating.
There are however a factors to consider before you take the plunge and make a purchase. If, at the end of this you find it all to overwhelming, maybe you should consider engaging a Buyers Agent for some one on one, independent advise.
Ask yourself these questions:
- How many days per year do you anticipate using a boat?
- Where are you planning to berth it?
- What is your budget?
- Who is going to use the boat with you?
- Who will show you how to operate the boat?
- Who is going to maintain your new boat?
One of the fundamental costs that some boat buyers forget to consider is the cost of ownership. These are the fixed annual costs plus the maintenance and wear and tear.
In oder to retain great resale, you need to buy the right product at the right price, but you also need to maintain your vessel in good working order.
As a general rule, the cost of maintenance and upkeep of a brand new boat will be less than that of a vessel out of warranty because the dealer will usually be picking up the tab for any system breakdowns in the first twelve to twenty four months.
Cost savings can be made if you are prepared to carry out some of the maintenance and repairs yourself, for example, the weekly clean can save you $15,000 per year. Repairing simple items onboard yourself will not only save you money, but will also give you the skills to fix issues normally left for technicians when back in port.
Rule of thumb: Cost of ownership for a motor yacht, not including fuel usage or depreciation, can be less than 8% of the purchase price if you are going to look after it yourself, to over 15% for a platinum – valet ‘walk on – walk off’ service.
Below is a list of items you will need to price to determine your rough costs:
(Note: Some items are relevant to vessel size and value. Click on words in bold for more information)
PRE PURCHASE COSTS
- Hull survey – allow $15/ft
- Mechanical survey – Will vary depending on number of engines
- Vessel Lift and hard stand – based on vessel length
- Hull clean – below the waterline
- Capital purchase price
- Registration transfer fees – based on length
- Stamp duty (Nil) – There are no stamp duty fees on the transfer of ownership within Australia
- New boat registration fees (If applicable)
- Berth lines
- Tender and outboard (If not already included)
ONGING ANNUAL COSTS
- Annual registration fees
- Insurance – use 1% of purchase price as a ball park figure
- Marina berth fees – Vary greatly between marinas and yacht clubs
- Yacht Club membership fees if applicable
- Lifting and hardstand
- Main engine service – Go for a fixed engine service fee where possible
- Generator service
- Polishing at least twice per year
- Weekly clean – carry this out yourself and you could save thousands per year
REPAIRS – WEAR AND TEAR
- Clear windscreens – Refers to flybridge clears and sport cruiser screens. Allow for replacement every three to five years
- Camper covers such as bimini tops and cockpit awnings
- Fresh water pressure pumps – Always carry a replacement. These can fail every couple of years
- Sanitation systems – Allow for replacement of impellers, duck bill valves etc
- Bilge pumps – One a year these can fail as with the float switches
- Batteries – These are good for about two years only
- Battery chargers – These work pretty hard. Allow for replacement every five to seven years
- Refrigeration – Icemakers, if mounted externally are good for about two to five years
- Gelcoat repairs
- Carpet cleaning or replacement
Fuel costs are minimal if you will be using the vessel locally. If you plan on major cruises along the coast then it could be significant. For estimates on fuel consumption, speak with your Buyers Agent. Of course, you don’t need to cruise far to gain enjoyment from your motor yacht. Many boat owners find solace in simply anchoring 200m from their marina.
Boating is about spending time with family and friends, entertaining clients, watching your kids scoot around in a little inflatable tender, catching a herring off the transom, slipping over the side to cool off, hunting and gathering for a meal, searching for whales, forever changing ocean views, watching the dolphins swim under the bow as you cruise along, beautiful sunsets and sunrises, exploring new frontiers or just chilling out and reading a book.
Relax…take the boat
+61 409 620 336
P.S. I’ve included below links to other information you may find helpful: