Honestly about what expenses await the owner of the yacht after its acquisition
What is common between the ex-Chairman of Google Eric Schmidt, Prime Minister of the Arab Emiratein and Steven Spielberg? Besides the fact that they are damn rich, they are in the very small list of superyacht owners.
It is no secret that yachts are expensive. The price tag can reach tens or even hundreds of millions of dollars. A vivid example is the world’s largest private vessel Azzam. This 180 metre-long boat at a cost to its owner, the Khalifa bin Zayed al Nahyan (Khalifa bin Zayed Al Nahyan), to nearly $611 million.
However, the cost of acquisition of the vessel is not limited to: taxes, fuel, wages of crew, maintenance and so on and so forth — all of this combined translates sometimes into seven figures.
And even if we talk about the boat a much more modest size than Azzam — for example, such as 68-foot Triple Seven, on sale for €44.9 million — it is worth considering that in the end it will cost several million more.
So how much is actually worth a superyacht? Let’s see!
For starters, buying a yacht, the owner must pay VAT. Depending on the country in which the ship is registered, the rate will be 15% to 25% of its value.
The largest expense is the salary of the crew.
It is logical that the bigger the boat, the more command, and thus the costs of labour. For a 30-metre yacht typically requires at least five members of the crew.
The salary of the captain varies from $7 500 to $20 000 per month depending on the qualification and size of the vessel. The salary of the other members of the team such as mate, engineer, stewardess, sailor is much lower: from $3 000 to $8 000 per month. However, when you consider that at the same Azzam employs about 50 people, the sum is enormous.
On boats of a smaller size, for example, the 88 metre Maltese Falcon and the 78.2-meter Venus, work from 18 to 22 people. But on the 155-metre Al Said belonging to the Sultan of Oman, working as many as 154 crew members.
Also it should be understood that typically a team is an annual contract regardless of how many months this year, the owner will enjoy their purchase.
In addition to salaries, crew expenses include: medical insurance, liability insurance, training and purchase uniforms. As shared with reporters from the Sun Sentinel the captain of some 54-metre yacht with a staff of 14 people, only the shape of the crew spent $11 190.
Often, in order to work on Board requires the use of temporary workers. According to the same captain for the two months that they spent $14 255.
The next thing you will have to think about the owner of the yacht is a place for Parking. Its value depends on the size of the boat, the geographical location, the season and the need to anchor directly to the dock.
According to the magazine Business Insider, budget option for a 24-metre yacht costs about $1 200 a month. While David Forces (David Seal) of the brokerage company “Northrop and Johnson” gives the example that for Parking in a conveniently located Marina close to Monaco, Sardinia, Portofino and other popular places should be prepared from €2 125 in the period from may to October and from €3 690 — from October to may.
For boats more the size of the Parking cost may exceed $6 000 per month, but, of course, in this case the yacht will be moored in two steps from the trendy boutique and expensive restaurant in one of your favorite port cities.
While the boat is in the Marina increases the expense for Parking, but with the open sea by dramatically increasing the number in another column of expenses on fuel. According to analysts Forbes, for fuel for the 71-metre yacht may need about $400,000 a year. It should be remembered that filling requires not only the boat, but also tender, and such water toys like a Jet Ski.
However, this is not the limit — superyacht giants are much more voracious.
Roman Abramovich marked cheque of one million Euro for fuel for its 163-metre Eclipse. tucked it was only half a tank.
Go ahead — insurance. As a rule, its annual cost is 0.5–0.7% of the original price for the boat. For example, boat insurance 2016 construction cost $10 million will cost $50 000. The older and more expensive the ship, the amount will be more. According to estimates Towergate Insurance, insurance for a 71-metre yacht with an average of about $240 000.
Another huge expense is the maintenance and rarity.
Scheduled preventive maintenance and minor repairs go approximately 2% of the value of the boat after its first year of operation and an average of 7.5% if the yacht is more than 10 years.
For example, motors and generators require service every 100 hours, i.e. about once a year. Each of these services cost $5 000-7 000.
After about five years of service begin to quickly discharge the batteries periodically fail pumps, broken seals, protective coating and paint.
Returning to the story of the captain of the 54-metre yacht: the boat twice a year, stopping for maintenance and repair, and to spend more than $140 000 at a time — quite a common thing. And if you talk about global rarity, the size of the estimate is limited only by the imagination of the owner.
The former owner of the famous Indian Empress has invested in one of its full-scale modernization of €6.4 million.
Do not forget about other costs: the administrative expenses, additional decor, food, drinks, etc. that kind of stuff in preparation for Charter season, we have repeatedly referred to captain spent $56 000.
And that’s without taking into account the entertainment position of superyacht owners regularly organize spectacular parties at his “castle on the water”. This is especially important during any social events or boat shows. In the days of the Cannes film festival an American entrepreneur and co-founder of Microsoft Paul Allen every year traditionally organized a party at its 126-meter yacht Octopus, where the guests were actors such as Kate moss and Jake Gyllenhaal.
Additional costs in this case involve treats for guests, guest chefs, alcohol, DJ, light effects and so on.
In the end, the owner must be willing to annually spend about 10% of the initial cost of the yacht.
It is not surprising that a new generation of super-rich people increasingly prefer the personal possession of the Charter boat. Because if you take, for example, a new 50-foot yacht, it is a week rental in the summer season will cost €250 000. Plus about 25% of this amount will go to food, fuel, Parking and other expenses on Board.
The annual amount for the maintenance of a yacht is about €2 million — a cost of nearly six and a half weeks of Charter. So the owner of the boat should be carried on for at least two months of the year to have been justified, current expenses, not to mention its acquisition cost.
But, despite all of the above calculation, the world is now built hundreds of yachts and has regularly launched many new projects.
According Bloomberg.com for 2017 were sold 249 superyachts, and last year the figure exceeded 300 boats.
By the way, the largest percentage in the number of superyacht owners among all nationalities the Americans — they own 14%, followed on the list followed by Russian, and then Asians, while in 2011 their share was only 3%.
What pushes super-rich people, who used every penny to spend wisely and carefully, to be so wasteful and buy a superyacht?
Very aptly David Forces: “They remain cautious and prudent. Just realize that it’s time to send part of the wealth that they worked so hard all my life, not what will bring a profit, but that will give them and their families the quality of life with which nothing can compare. No hotels, villas and even castles in Scotland do not give as much freedom, enjoyment and relaxation as a holiday on a private yacht.”