What Size Yacht Can You Afford?
The word "yacht" often conjures up images of glamorous life at sea in a well-maintained ship with dozens of crew members. I don't want to disturb you, so to speak, but just because you have a lot of money doesn't mean you're sailing with a wealthy ship owner. For example, Tiger Woods bought the 155-foot luxury yacht Privacy for $20 million, which is cheap by superyacht standards.
The average annual cost of owning an Elite floating system is 10% of the purchase price.
How long can it take?
The term "yacht" is clearly defined as a financial advisor, and depending on who you ask, you'll be given a name for the size of your yacht. You can get a variety of answers.
By definition, you can own a 20-foot yacht, join a yacht club, and spend your weekends exchanging sea stories with other sailors. If you are thinking of investing in a boat, the first question you should ask yourself is what size boat can you afford.
Accounts and Ratings
Getting a boat loan can be difficult if you don't meet certain criteria. For example, if your debt ratio is above 40%, the loan officer is unlikely to get a positive response.
We plan to invest at least 10% in the boat and pay 5% per year for 10 years. This $100,000 bass boat (30 to 35 feet long) will get you about $1,000 per month after a $10,000 payment.
If you're buying a boat, you can spend $1,000 to $1,500 (or more) on a life jacket and other gear. So the question is who will do it.
Can we take a boat?
Can you steer a big ship? Otherwise, you will need to get a captain's license or hire someone to drive it. Additionally, boat insurance can cost up to $600, and mooring rentals can cost $2,000 per year.
Do the reverse to calculate how much you can spend. You must be able to use 55-60% of your income for needs other than boating. The rest is what primarily interests you.
The cheapest way is a cruise.
Buying a luxury yacht can be difficult, but if you don't want a small cruise ship, you can rent one. Like a rental car, there is no boat, but it is like renting a boat for a period of time.
It can be a short or long sailing vacation. Expensive vessels can be made more affordable by sharing the cost among several people. As the lessee, you pay for almost all expenses including fuel, insurance, port fees and more.
There are also share agreements. In this case, you pay a monthly boat fee and have access to any boat in the fleet. It costs fuel and some money, but it's a lot more reasonable than buying a boat yourself.
Some clubs offer dues in the thousands or hundreds of dollars per month.
conclusion
Owning a luxurious yacht is very expensive. However, middle- and high-income earners can keep their costs relatively low by renting or chartering a boat, sharing it with a friend, or joining a boat and yacht club. .
The cost of hobbies that require heavy equipment is often higher than you think, so you need an emergency fund for these unexpected expenses.
