Rich People Problems: Why I Regret Buying a Yacht
Owning a yacht is a dream for many. But while it might sound glamorous, not everybody is happy with their purchase of a yacht.
Stephen Akin, a registered investment advisor at Akin Investments, knows firsthand the thrills and frustrations of yacht ownership. As he put it, "It has been said that the two happiest days of a boater's life are the day he buys the boat and the day he sells it!"
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Here's the story of one man who bought a yacht and now regrets it.
From Power To Sail and Back Again
Akin's journey into yachting began when he purchased his first live-aboard powerboat in Galveston, Texas -- and then sold it about a year later. Although the love affair with his yacht ended quickly, that didn't turn him off sailing. Over the years, Akin owned a total of eight boats -- he moved on to simpler sail boats that are just wind-propelled.
The Unexpected Expenses
Akin brought up the issue of never knowing exactly how much things are actually going to cost when you enter into yacht ownership.
"As a registered investment advisor I can only say, whatever your budgeting plan is, double it!" he said.
He then explained that "boating is fun but there are lots of unexpected expenses. Everything from dismasting to engine rebuilds."
These are things that cost money -- and not just a little of it.
The Ongoing Maintenance Burden
Akin detailed the high costs of maintaining a yacht, using a 31-foot Beneteau as an example.
"Looking at today's used boat market, [it costs] somewhere around $70,000 to $125,000 to buy [a] boat," he said.
But that is just the beginning.
"Annual maintenance can be costly. Haul-out and the cost of bottom paint can range from $100 to $300 per gallon, with additional costs for labor, supplies and incidentals. The total cost can average $125 to $150 per linear foot."
The Larger the Yacht, the Bigger the Expenses
For those considering a larger yacht, Akin offered another warning: "If you purchase a large yacht then there is the cost of captain and crew."
Not only are you paying for the maintenance and other unexpected expenses, but it can be costly to keep an entire crew ready to set sail at any minute.
A Cooling Yacht Market
Despite the challenges, Akin acknowledged that yachts still hold a certain allure for the ultra-wealthy.
"In general the superyacht owners can enjoy a level of mobility and privacy that is unique to boating," he said. "As well as being a status symbol, with some planning they can be an effective venue for exclusive business meetings."
Akin also shared that "overall I think the boat market is a little softer now compared to the peak that we saw during COVID."
The Thrill and Heartbreak of Yacht Ownership
Akin's experience shows that yacht ownership can be both dreamy and also a major drain -- both financially and emotionally. Of course, we all wanna be in Saint-Tropez in the summer with Leo, but it's clear that's gonna cost a ton of money -- and then some!
If you're down to spend the cash and you're OK with regular maintenance and housing a crew, then yacht life might be for you. If not, renting a paddle board or canoe can also be an enjoyable -- and affordable -- way to spend time on the water.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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