How Much Does It Cost To Own A Yacht?
Yacht ownership is the pinnacle of luxury, offering complete freedom, exclusivity, and flexibility to explore the world’s most amazing destinations. There are so many benefits to luxury yacht ownership; it provides a level of privacy that is hard to match and bespoke travel opportunities in the comfort of your own floating home. However, it is important to understand the whole financial picture before purchasing a superyacht for sale and the associated costs of ownership.
Here is our comprehensive guide outlining the costs of owning a superyacht, from initial purchase to ongoing expenses:
The Initial Investment
The cost of acquiring a yacht varies widely based on several factors, including market influences. There are currently 881 on the global yacht order book, with 569 in build this year in 2024 expected for delivery. The price points depend upon the size - from 24 meters upwards - and the type of yacht you are looking at, the build of the yacht and whether a motor or sailing yacht; there is a huge sliding scale.
There are also differences between purchasing a new build and purchasing an existing yacht. On average, pre-owned yachts between 24-30 meters will set you back €3.2 million; the 30-40-meter range is around €5.6million and €12.4 million for 40-50meter yachts. For the larger yacht range, 50-70 meters can range between €20.7million and € 44.8 million, increasing to €95.6million for yachts larger than 70 meters.
It isn’t just the size range; there are many other factors to consider when setting a budget, such as the various amenities onboard. If you want to include an onboard swimming pool or Jacuzzi, a garage for toys, a large beach club, a dedicated spa area or gym, and cinema rooms, these extras will make a difference to the overall price tag.
There are different options to finance a yacht investment, including leveraging your trust fund.
The Operating Costs
Once purchased, many prospective owners underestimate the ongoing expenses associated with yacht ownership. The typical annual operating costs range from 10% to 25% of the yacht’s value, depending on several factors, including the annual usage.
Firstly, safety and compliance are paramount in running a yacht; there must always be designated safety equipment onboard. While this is an initial outlay, at first, this equipment must be maintained and updated throughout ownership. This is also true for taxes, insurance, and relevant certification. These costs are non-negotiable and essential for legal and safe operation.
The yacht will also need to be based somewhere; dockage varies significantly depending on the yacht's size and the marina’s location. Typically, a yacht will have a berth in just one marina while the yacht gets ready for the cruising season. During owner or guest usage, the yacht may still visit marinas, and usually, these will be popular destinations translating to premium rates throughout the high seasons. Alongside marina fees, fuel is a huge part of the budget for cruising and generators while on anchor and underway. Additionally, utilities such as electricity, water, and garbage disposal must be factored in.
To run the yacht, a professional crew will need to be onboard year-round. Again, it depends on the yacht’s size to how many crew are required. Some of the main costs associated with this are salaries, onboard living expenses and insurance. The salary ranges will depend on the experience and qualifications needed for each crew member. The crew will ensure the yacht is ready at all times and will be stocking up on provisions and supplies to run specific trips. A yacht budget will cater to the increased money needed to prepare for owner and guest trips with food, alcohol, supplies, specific requests, etc.
An additional operating cost to consider is the management of your vessel. To ensure your yacht is managed to the highest standard for quality and safety, our expert IYC yacht management team offers worry-free ownership. We offer numerous services for yacht ownership, so you can rest assured your yacht will run smoothly, as well as any additional charter management services you may require.
The Additional Costs
While a certain amount of budget is needed to run the yacht safely and professionally, there are also plenty of add-ons to enhance the yachting experience. The most significant outlay for this is the toys, the initial investment for the watersports toys on board, and the cost to run and maintain with fuel, spare parts, etc.
Depending upon the services requested onboard and for the yacht’s program, you may also need to invest in more crew specialized for particular job roles, such as personal trainers, masseuses, scuba dive instructors, beauticians, etc. Today, entertainment plays a big role in the onboard experience, from golfing simulators to large movie screens and fast-streamable Starlink internet. These additional extras will add more to the overall cost of ownership.
The Maintenance Costs
A yacht isn’t simply a one-off purchase with annual operating costs; additional investment is required to ensure its lifecycle. Regular maintenance, including servicing equipment, replacing parts, and providing ongoing cleaning supplies, is typically factored into the operational budget.
However, some years of the yacht’s life will also need refit periods, including upgrades and overhauls, to maintain its aesthetics and functionality.
The Offsetting Costs
One element to consider is whether you will want to charter your yacht. Some owners offset expenses by making their yacht available for charter when not for personal use. This can provide additional income to help manage ongoing costs. Chat with our expert charter consultants to learn more about the potential benefits this could bring.
Yacht ownership is a significant financial commitment beyond the initial purchase price. Understanding the full picture of costs involved can help you make an informed decision about your future yachting experience.
Our experienced sales team have extensive knowledge of all aspects of yacht ownership. Contact our team today to help guide you through the process, answer any questions, and find the perfect yacht from our portfolio to meet your needs and budget.