How Much Does a Yacht Cost? | Ultimate Breakdown GuideOctober 14, 2019
Yachts and superyachts are symbols of success. They appeal to wealthy individuals but are also extremely useful business assets. In this article, we’ll explore how much does a yacht cost. Also, we’ll answer how much does a superyacht cost and how much does a mega yacht cost. Then we’ll identify additional yacht costs such as fees and taxes. Next, we’ll give example breakdowns of the price of yacht and the price of a superyacht. Finally, we’ll explain how Assets America® can help fund your transaction, and then answer frequently asked questions regarding the cost of yacht. Note that we’ll devote a separate article to yacht operation and maintenance costs. This article focuses on how much does it cost to buy a yacht.
How Much Does a Yacht Cost?
To know the context for how much does a yacht cost, we define some important terms.
- Yacht: A sailing or powered watercraft between 39 and 78 feet in length, accommodating up to 6 guests.
- Superyacht: A luxury yacht ranging in size from 78 to 200 feet in length, accommodating 6 to 12 guests.
- Megayacht: A luxury yacht greater than 200 feet long holding more than a dozen guests.
- Cabin Cruiser: A luxury powered boat between 23 and 38 feet in length.
- Day Sailing Yacht: Small yachts, often with a retractable keel, daggerboard, or centerboard and no cabin.
- Weekender Yacht: Medium-sized yachts, typically up to 31-feet long. Usually, they have lifting keels or twin keels allowing shallow-water operation for two-to-three-day journeys. Normally, weekender yachts have a simple cabin sleeping two to four passengers along with a small galley.
- Cruising Yacht: The most common private yacht, with good handling, onboard comfort, sufficient interior space, and capable performance. Typically, they have a teardrop-planform hull with a deep single-fin keel.
- Luxury Sailing Yacht: Larger yachts powered by wind and engines, with many luxury features. Typically, yacht makers construct these boats with fiberglass hulls and plenty of automation, lighting, navigation aids, hot water, and more.
- Racing Yachts: Yachts optimized for fast sailing, with heavy and deep bulb keels, tall masts, and large sails.
Average Cost of Yacht
New yachts over 100-feet long have an average price of a yacht equal to $1 million per 3.3 feet in length. In other words, a 100-foot yacht will, on average, cost more than $30 million. Older yachts below 85 feet are less expensive. For example, an 84-foot yacht originally built in 2002 and renovated in 2015 sold for $1.45 million.
The average price of a yacht that is preowned, entry-level, and in the 30 to 35 foot range, is about $100,000.
How Much Does a Superyacht Cost?
Superyacht prices are high but variable. For example, the world’s most expensive superyacht (the History Supreme) has a price of $4.5 billion. And at only 100 feet, it is too small to qualify as a megayacht, even though it certainly has a mega-price! On the other hand, a world-famous golfer purchased a 155-foot superyacht for $20 million, a sweet deal. The average price of a superyacht is $275 million.
How Much Does a Megayacht Cost?
The most expensive megayacht, measuring in at 536 feet, cost $1.5 billion. A 1990, 344-foot megayacht can be yours for $210 million. So, the prices of megayachts can vary greatly. In other words, there is no clear answer to how much does a mega yacht cost.
Video: Million Pound Mega Yachts for Sale – Documentary 2019
Additional Costs of a Yacht
A few states don’t have sales tax: Delaware, Montana, New Hampshire, Oregon — and to some extent Alaska. If you buy a yacht in any other state, you’ll owe state sales tax. On a $1 billion yacht purchase, a state like Texas with 6.25% sales tax will collect $62.5 million. You can buy a yacht in a state without sales tax and use it in another state. However, you will eventually have to pay a use tax. Florida caps yacht sales tax at $18,000, but California has no cap.
Municipalities that charge local sales tax could add a percentage point or two to your tax bill.
Most states also assess property taxes on yachts. Marinas may assess a tax on boat slips. Some states will refund fuel taxes on yachts since they don’t use roads.
Yachts with bathroom, eating, and sleeping facilities qualify as second homes. You can deduct the interest on the yacht’s mortgage, but national tax law caps the deduction at $750,000.
A yacht purchased for business purposes is a capital asset that you can depreciate. This would apply to a charter, rental, or fishing yacht that you use to generate income. If you buy a used business yacht for $1 million or less, it might qualify as Section 179 property. If so, you can deduct the full price in the year of purchase.
There are some minor fees you may have to pay when you acquire a boat. For example, you may have to register your yacht with the International Registry, which has fees of $550 to $1,500. Also, you may pay an annual tonnage tax, a ship radio station license fee, and certificate of insurance. Other fees include those for :
- An annual Maritime Security and Compliance fee
- Private Yacht Limited Charter Compliance Certificate
- Minimum Safe Manning Certificate
- Continuous Synopsis Record (CSR) Document
- Annual Yacht Service
- Intended Registration and Vessel Under Construction Registration
When you want to know how much does a yacht cost, you need to know the cost factors. A yacht’s price directly ties to its construction costs, which include:
- Design: The design requires expertise in marine and mechanical engineering. For example, the designers must undertake many stability and hydrodynamic studies. Also, the design must be esthetically pleasing.
- Construction: It can take many months to construct a large yacht. You must factor in materials, equipment, and labor. Luxury-yacht buyers may want expensive and/or rare materials. One yacht, the infamous History Supreme, contains dinosaur fossils and meteorite stone! But less outlandish materials, such as fine woods and precious metals, still contribute to high construction costs.
- Engine: The number and power of yacht engines can greatly impact cost. Naturally, all things being equal, a sailing yacht should cost less than a comparable motor yacht. It requires huge power to propel a large megayacht, and an elaborate engine room to operate those engines.
- Interiors: Large yachts have many rooms, including galleys, heads, bedrooms, meeting rooms and more. In addition, electronics are important cost items.
How Assets America® Can Help
Whether you need to borrow $20 million or $1 billion to acquire your yacht, Assets America® can help. We can arrange short-term and long-term financing for the purchase or refit of yachts, superyachts and megayachts. We provide financing much faster than banks do, and we can arrange financing even if your bank declines. Call us today for a confidential consultation.
FAQs — How Much Does a Yacht Cost?
How much does a 50-foot yacht cost?
A 50-foot yacht is a good candidate for weekend duty. A 2014 convertible sportfish costs just under $2 million. An example price of yacht (51-foot 2013 Azium Magellano 50) is $670,760. A 52-foot 2017 Carver C52 Command Bridge sells for $1,149,000.
What is the cost to build a yacht?
Mid-level yachts cost about $25 to $35 per pound to build. Higher-level-yachts have average construction costs pf $45 to $65 per pound. The top vessels built with exotic materials and hi-tech systems can cost $80/pound to build.
How much does a 60-foot yacht cost?
A 60-foot yacht is about the largest size that an owner operates. A new Hatteras M60 can easily cost around $3 million. However, you can get a 2007 60-foot Sunreef 62 for $735,000.
How much does a 100-foot yacht cost?
Superyachts in this range contain many amenities. You can buy a new 100-foot AB 100 for just over $8.8 million. But let’s face it, you can spend hundreds of millions on big yachts. Your only limits are your imagination and most importantly, of course, your wallet!