Even with boat sales and charters booming, yachting remains an enigma for most people.
CNBC spoke with several yacht owners who agreed to answer all questions — with no topics off limits — about the yachting lifestyle and perhaps more importantly, how much it costs.
Nim and Fabiola Hirschhorn are in the U.S. Virgin Islands aboard Luna, their 45-foot, 2019 Lagoon 450S catamaran. The couple operates all-inclusive crewed charters in the Caribbean.
Sophie Darsy and Ryan Ellison are in the Azores on Polar Seal, a 2007 Beneteau Oceanis 40 outfitted for ocean sailing. Several years ago, the couple learned to sail, quit their corporate jobs and now chronicle their life at sea.
How much does a decent yacht cost?
N. Hirschhorn: It depends on a few basic parameters. Is the boat secondhand or new, what year was it built, is it a monohull or catamaran, is it an ex-charter yacht or has it always been privately owned … do you want to simply coastal cruise or do you want to cross oceans?
Luna was purchased new for $650,000; however, we know plenty of people who live on boats that were purchased for $30,000-$80,000.
On average, you can purchase a seaworthy mid-range 45-foot monohull that can sail around the world for $100,000 to $150,000 and a catamaran of the same size for around $250,000 to $500,000. Of course, there are boats at both ends of the spectrum and at every price point in between.
A ROUGH GUIDE TO ENTRY-LEVEL BOAT PURCHASES
|COST||SIZE||YEAR BUILT||WHAT TO KNOW|
|$5,000-$20,000||20-30 feet||1960s to 1980s||Will likely need maintenance that could easily cost as much as the boat|
|$30,000-$60,000||30-40 feet||1970s to 1980s||Unlikely boat will be ready for cruising; budget at least 25% of the boat’s value for post-purchase repairs and upgrades|
|$70,000-$110,000||40-50 feet||1990s to 2000s||An entry-level modern boat or an older larger boat; here cost is a balance of age, size and equipment|
Are there other costs to know about?
Darsy: The purchase price is only a portion of the budget you need to acquire a yacht. Once we took delivery of our boat, costs came faster than we knew!
In the first three years that we owned Polar Seal, we spent at least $40,000 to equip her for cruising and ocean sailing, including:
- A cockpit enclosure to keep the cockpit dry: $7,000
- New sails: $8,000
- A dinghy and an electric outboard [engine for the dinghy]: $5,000
- A water maker to make freshwater from seawater: $2,000
- Lithium batteries and parts to power appliances: $6,000
- A new autopilot: $2,000
- A life raft: $2,500
- Safety and communication equipment: $3,000
If you want to buy a boat, keep at least 30% of your budget for maintenance, repairs and upgrades.
We also have annual costs for boat insurance (between $1,000 and $4,000, depending on location) and travel and health-care insurance when we are out of Europe ($1,500) as well as plane tickets to visit our families (around $2,000 per year).
How much do you need to make — or save — to live on a yacht for a few years?
N. Hirschhorn: Think about what it costs to live on land — what kind of lifestyle do you live? Do you like to eat out at fancy restaurants and buy nice things? Chances are you will do the same when living on a boat, which means that your lifestyle will often cost the same. Will you anchor — which is free — or stay in marinas? Will you be on a sabbatical living off savings or do you work along the way? Are you a family or a couple?
We have friends who lived aboard a 1984 47-foot monohull for two years with three kids. The boat cost $90,000 and they lived off $50,000 a year cruising the Caribbean and anchoring the entire time.
Personally, we live on about $100,000 a year. I know couples living on $1,000 a month, and families living on $3,000-$6,000 a month. It’s not unusual in our community to hear that living on a boat and traveling the world costs less than living on land.
How much does location affect costs?
Darsy: In 2019, we spent the winter at a marina in Spain where we could benefit from an advantageous rate ($300 a month). But food was very inexpensive ($300 a month). We took advantage of our time at the dock to undertake some major boat projects and our maintenance budget went way up — $15,000 of upgrades over six months.
But we rented a car at virtually no cost thanks to a local deal, and our “fun activities” budget went almost down to zero, as we enjoyed inexpensive restaurants and bars with friends all over southern Spain.
In comparison, when we made a three-week detour to Bermuda, groceries and restaurants were very expensive. But, we spent those weeks on anchor and did not have to pay for a marina. We spent nothing on maintenance or repair. We spent the remaining weeks of that month at sea, and since we spent no money during those two weeks, we made our budget.
How has the pandemic affected yachting?
N. Hirschhorn: It is more complicated … some countries have their seaports closed for visiting yachts, and some ask for entry protocol that might include preapproval and quarantine for up to two weeks on board.
Some countries do not accept all nationalities and travelers from specific origins, which makes it difficult when we may have three to four nationalities on board. Other countries are welcoming only vaccinated travelers.
Darsy: The pandemic has made sailing between countries a little more difficult, but while our options were extremely limited in 2020, we have had much better luck in 2021.
Like the housing market, the boat market exploded in 2020 and 2021. It seems like everyone and their neighbor wants to buy a yacht … the prices have also increased in a way never seen before. Our boat has increased in value to the point that if we sold it today, we would not lose any of the capital we put in it.
Is having young children compatible with living full time on a yacht?
F. Hirschhorn: There is no reason why children of all ages can’t live on a yacht. There are many families living on boats on the water and they are usually very confident, intelligent and worldly kids who thrive in this lifestyle. In the Caribbean especially, there are hundreds of “kid boats” [boats with families living on them].
Is there Wi-Fi out at sea?
N. Hirschhorn: Yes, we have a few layers of service. We have cellular data service that can pick up a signal up to 20 nautical miles offshore. Since we usually sail between the Caribbean islands, we are usually always connected. We also have two other satellite-based systems with limited Wi-Fi, but coverage all over the globe.
Darsy: Nope! We only have Wi-Fi at port or on anchor, when we have a data plan for the country that we are currently sailing in. Out on the open sea, we have satellite internet that enables us to download weather forecasts and basic emails, but definitely not watch Netflix or listen to Spotify!