HOW MUCH DOES IT COST TO RUN A SUPER YACHT?

how much does it cost to run a yachts [Music] how much does it cost to run a yacht probably the most asked question that I get on my whole youtube channel and one of the most difficult questions to answer it's so full of variables and there are so many caveats attached many people say that 10% of the value of the yacht is a good rule of thumb for the running costs and to be honest they're not far off but in this video we'll take a look at the big-ticket items of running a yachts will say hundred to one hundred and twenty four lien lengths kept in the Western Med and used in the way that most yacht owners do use their yachts in this area the biggest single expense on the yacht of this size is without a doubt the crew and if you really want to enjoy your yacht to the fall you'll make sure you get the best crew members that you possibly can a typical 100-foot yacht such as the one shown in this image will probably run with a crew of five so I contacted the charming and talented Marci Williams the northrop & johnson crew services manager to get a feel for how much crew members are paid these days the average wage for a good qualified captain of a yacht this size is nine thousand eight hundred and four dollars per month although you may pay considerably more for a captain that you feel will add value to your time on board or somewhat less for a captain who has less experience and wants to move up in his career another essential crew member for e out of this size is a first mate preferably one with engineering qualifications if the captain does not have them he will make sure that the yacht is well maintained take a particular interest in the machinery on board and will probably also take a big role in keeping the exterior of the yachts clean especially when the deckhand is otherwise occupied the average wage for a first mate with engineering experience is five thousand two hundred dollars per month the interiors of these luxury yachts are expected to be kept in the immaculate condition and when the owner and his guests are on board the level of hospitality has to be higher than 7 star standard this is the considerable responsibility that falls on the shoulders of the chief steward a OTT of this size if she also has some ability as a chef it's a huge advantage and should be well recommenced since she may be cooking for the crew as well as the guests although I should add that it's not unusual for an owner to employ a separate chef for the months that is on board for this sizeable and responsible position the average pay is four thousand three hundred and fifty-five dollars per month these three crew members will most likely be on a year-long contract working incredibly hard when the yacht is in use but with the possibility of extended vacations when the yachts not being used during the cruising season let's say middle of May to the middle of September more or less it's quite likely that the owner will take on another two crewmembers usually a younger lad but increasingly often girls to this role is one of keeping the exterior of the yacht clean running guests to and from the yacht in a tender fetching and carrying helping with mooring really anything the captain asks them to do that helps with the smooth running of the yacht an entry-level position for many yawning to get into the yachting industry the average wage for a deckhand are the 100 to 120 foot yachts is two thousand nine hundred and fifty seven dollars per month again I should add that this varies tremendously according to experience and other factors once again usually but not always a position for a younger lady this job entails keeping the interior of the yachts immaculately clean serving drinks and food the guests assisting with shopping putting fenders in and out and helping with mooring lines it's hard work and then another entry-level position for which the average wage is three thousand six hundred and seventy one dollars so if you can say that the captain's rage the first late of the Chiefs two's wage and you multiplied them by 12 you arrive at two hundred and thirty two thousand three hundred and eight dollars per year increase salaries a deckhand and a steward s combined would cost you six thousand six hundred and twenty eight dollars per month and you employ them for four months so the total yearly wage bill for your hundred one hundred and twenty foot yacht would be two hundred and fifty eight thousand eight hundred and twenty dollars now these figures very enormous Lee according to so many different factors I'm really not trying to give some sort of a standardized wage structure the industry here but rather pass on to you the results of an extensive poll that was made within the yachting industry to show you what the average wages are and they are a substantial part of the overall running costs of the vessel another substantial costs during the year of a yacht is the berth I spoke to my dear friend Ricardo Chania made yacht services who's my go-to guy to find berths for clients so that I could get my dear berth costs for a hundred foot yacht Porto merits you an imperial is a popular location since it's so close to Monaco Sardinia Portofino and all those great places I recently got a quote for a 103 for a zoomit and the monthly berth costs from the first of May to the 1st of October are three thousand six hundred and ninety euro per month including VOT but excluding electricity and water this is total of eighteen thousand four hundred and fifty euro from the first of October to the first of May the cost is two thousand one hundred and twenty five euro per month so the yearly berth costs may be around thirty three thousand three hundred and twenty five euro it's fair to say that you'll be cruising for quite a few weeks in the year though so sometimes you'll be a tanker which is for free and other times you can expect to say the same amounts for 119 I'd be Fae in August that you would pay for the entire month in Imperium if you can get in a fair estimate for birth costs though would be about $35,000 per year for the insurance of the yacht I spoke to Julian who bear at only yacht a leading yacht insurance company that I've used in the past I should add that none of these contacts have paid me for this video they're just people who I respect and I enjoy working with now insurance is a very exact science so it was very good of him to give me a rough idea of a price for a fictitious yacht he said that are privately used yachts with the value of about 10 million dollars built in 2016 would cost about forty two thousand five hundred euro per year to insure this would cover whole machinery pni crew medical it's a pretty comprehensive policy as a rule of thumb insurance can be between 0.5 percent and 0.7 percent of the value of the yacht so to keep this all in dollar figures let's say 50 thousand dollars you may think that servicing the engines and the generators of a hundred foot yacht are big-ticket items - I spoke to to captain friends of yachts of this size and actually the expense is not so bad at all they both serviced their engines once a year with prices varying from five to seven thousand euros and the generators are serviced every 100 hours also five thousand euros in their cases they do both of these services once a year I should also add that one of those two captain's chastised me because he said to me look David if you're doing a video about the running costs of a yacht actually the engines and the generator service costs are not so great at all there are far bigger ticket items than that and of course is right there are many many other items to consider crew uniforms cleaning supplies and equipments but also pumps water maker filters all need to be replaced repaired or serviced from time to time and that can be really quite expensive the yacht has to be lifted once a year and have the bottom of it painted that's a really expensive winter work period - replacing the zinc's periodic big services such as when you have to take the propeller shafts out line them up put them back in again it all adds to the expense of the yacht so really if you're looking at buying up the question is not so much whether you can afford maybe the 10 million dollars purchase price but more whether you can afford the yearly running costs as a friend of mine once said it's not the price of the elephant it's the cost of the hey if you add together crew wages fuel costs and berth costs insurance and service costs it's fair to say that you should budget around five hundred thousand dollars a year running costs of a hundred foot yacht now it's true that's not ten percent than the value of a 10 million dollar yacht but on the other hand you can also buy a very nice hundred foot yacht for five million dollars now you may wonder why it is that I as a yacht broker I'm so fearlessly transparent about how expensive it is to run a yacht the truth that successful yacht owners the guys that buy yachts after yacht after yacht and enjoy the experience have a mindset that I really admire deeply now these are people who've spent their entire lives being very cautious very prudent very intelligent with every bit of money that they've ever earned usually reinvesting it to create more wealth then they buy a yachts and their whole mindset has to change don't get me wrong these are still very cautious people and they're very wise in the way they spend money on they art but they realized that they've worked very hard all of them up lives they've usually made great sacrifices and the time has come to take a portion of that wealth that they've created and put it to use investing it in a way that won't give them a financial reward but it will give them a quality of life to them and to their families that nothing else can compare with and at the end of the day why is it that you work hard if not to give yourself a better quality of life and more happiness spending time I got is an experience that nothing else can compare with no hotel no villa no Castle in Scotland I know if your owners who are billionaires and speaking to their families they say that the only time that that person can fully relax is when it's on his yacht so is it really expensive to run a yachts personally I think you'd be crazy not to if you can afford it and if you believe that your wealth is there to improve the quality of your life and the quality of the lives of your family actually wrote a blog about this very subject a few years ago and at the time is very very popular so I've copied it and I've transferred it to the yachts for sale channel website with a link to it in the description below I think you'll enjoy reading it next week's video will be a mid-year review of the yachts that I personally have for sale it's been a productive year so far with some yachts sold and others joining the fleet so make sure that you don't miss out on that another great material that's coming up by subscribing to my channel you [Music]

Channel: Yachts For Sale

Views: 593,663

Rating: 4.861258 out of 5

Keywords: How much does it cost to run a yacht, super yacht running costs, yachts for sale, superyachts for sale, david seal, yacht broker, northrop and johnson, billionaire toys, luxury lifestyle, luxury yachts, yacht for sale, how to buy a yacht

Id: xSTMagPdNkA

Length: 12min 1sec (721 seconds)

Published: Wed Aug 15 2018