[imagesource: Lou Beach]

We’re all mind-blown when we hear about the figures that the really affluent fork out when they buy luxury superyachts, like Jeff Bezos who reportedly spent $500 million on his superyacht – which is one of the most expensive out there.

But we don’t stop to think about the hidden costs of running and maintaining the fancy yachts, and whilst the world’s richest can still afford them, they’re not to be scoffed at.

According to CNN, well over a billion dollars has been spent on superyachts so far this year.

But those with deep pockets are having to dig deeper, since owners are likely to spend at least 10% of the purchase price on the yearly cost of maintaining and operating their yacht, according to a report by UK-based broker Towergate Insurance:

This means Azzam, (pictured below) one of the largest superyachts ever built and rumored to have cost around $605 million, might set its owner back over $60 million in maintenance and operating costs each year:

Image: Andy Ginns/Alamy Stock Photo

All this money is going towards costs such as fuel, dockage, boat insurance, and maintenance:

Julia Skoptsova, founder of brokerage firm Smart Yachts, estimates that the cost of insuring a 50-metre yacht is around €60 000 (just over R1 million), while fuel costs could run up to €232 000 (almost R4 million) for the year depending on how far you travel.

The fuel bill for a large yacht traveling from the Caribbean to France might be around $70 000, says Connor.

While these are costs that yacht owners should easily be aware of, there are other hidden costs that could add up for them in unexpected ways.

There are also onboard supplies to consider, like water toys, furniture, art, medical supplies, and gym equipment:

“It’s almost the same as buying an absolutely new and empty house,” explains Skoptsova. “And when you’re preparing it for living conditions, you might be surprised with the cost.”

Not to mention the most weighty cost being the salaries and necessities for the crew – without which, the boat wouldn’t run:

A superyacht owner is likely to spend around $860 850 (close to R12 million) a year on salaries for workers onboard a 150-foot yacht, according to Luxury Yacht Group’s online cost calculator.

No wonder quite a few young South African are taking extensive gap years by heading to Fort Lauderdale or Monaco Marina to walk the docks in search of a seafarer’s life.

Crew costs account for about 42% to 48% of the annual expenses for most yachts, with salaries, food insurance, and uniform all incorporated, as well as training courses on everything from wine knowledge to fishing, says Rupert Connor from Luxury Yacht Group estimates:

“The people who get the most out of yachting are the ones who find a good team that can deliver value,” he explains. “But often that value is not at the lowest cost.”

“I’d say 99% of all problems on a yacht start with a crew member. The jury’s out on the final 1%.

“Without a good captain, no boat will run well. It doesn’t matter who the person sitting behind the desk claiming to be the manager is, you have to have a good captain.”

Of course, captains cost a fair penny, too. With a vessel measuring 150 feet, a captain can earn up to $192 000 (R2,6 million) a year, while a deckhand might be on a salary of $34 500 (R470 000).

We won’t get into the actual figures for everything else, but other expenses include the price of annual inspections, boat-to-shore communication technology, border crossing costs, mooring costs, docking fees, and more.

Clearly, as Connor says, owning a yacht is incomprehensible to most of us, but that doesn’t stop the wealthy from taking the plunge.

Besides, yacht owners can get some money back if they’re willing to share by chartering them out, and others have been reported to say that yacht expenses are mild in comparison to owning a jet.

Eish, well, now life has become just that little bit more absurd.

[source:cnn]