Yacht Closing Costs and Ongoing Ownership Costs

• Survey and haul-out. Under the standard YBAA agreement the buyer pays the direct costs of the survey, including the haul-out and returning the yacht to her prior condition. Add separate engine and generator surveys and any oil analysis if you choose them.
• Sales or use tax. In Florida, 6% state tax plus county surtax on the first $5,000, capped at $18,000 per boat. Nonresident and other exemptions may apply. See my Florida yacht tax guide.
• Documentation or titling. For a U.S. Coast Guard documented yacht, the NVDC charges application fees for transfers and renewals. A recreational Certificate of Documentation is renewed every year ($26 per year) or, for recreational vessels, for up to five years at once ($130 for five years), per the NVDC's current fee schedule. State registration fees apply where required.
• Insurance. Your policy should be bound to start at closing. Premiums depend on the yacht, your experience, the cruising area and hurricane-season plans.
• Financing costs. If you finance, the lender will have its own requirements and fees, and typically wants the survey too.
• Professional fees. Some buyers use a maritime attorney or a documentation agent, particularly for ownership through an LLC or international buyers.

Broker commission is normally paid by the seller out of the sale proceeds, not by the buyer, under the listing agreement.

Here are the main categories I help owners budget for:

• Dockage. Annual, seasonal or transient. Rates depend on length, location and season, and Fort Lauderdale in winter and Sag Harbor in summer are both in demand.
• Insurance. Renewed annually, and it can change with claims history and the market.
• Routine maintenance. Engine and generator service at the manufacturer's intervals, bottom paint and running gear on haul-outs, detailing, canvas, and electronics updates.
• Fuel. Driven entirely by how far and how fast you run.
• Crew or captain. On larger yachts, crew is often the biggest single line. On a dayboat, it may be a captain you hire by the day.
• Management. Optional, but valuable when you want someone else coordinating crew, maintenance, compliance and bills.
• Repairs and refit reserve. Something will always need attention. Owners who set money aside each year sleep better.
• Documentation renewals and registration. Small, but don't let them lapse.

The first year of ownership usually costs more than the years that follow. Even a well-maintained yacht picks up a list of small items from the survey, and every new owner wants things set up their way: electronics preferences, safety gear, tender and toys, linens and galley kit, and perhaps a name change and new graphics.

I suggest owners think about their first-year budget in three buckets:

• One-time setup: survey follow-up items, safety equipment, personalization, and any deferred maintenance you agreed to take on in the price.
• Fixed annual costs: dockage, insurance, documentation and registration, management if you use it, and routine scheduled service.
• Variable costs: fuel, captain or crew days, provisioning, transient slips when you travel, and repairs as they come up.

Once the first season is behind you, you'll have real numbers for your own yacht and your own way of using her, which is far more useful than any rule of thumb. Keep the receipts and service records organized. They help with budgeting, and they're also worth real money when it's time to sell.

You'll often hear that a yacht costs about 10% of its purchase price per year to run. It's a long-standing industry rule of thumb, but it came from larger crewed yachts, and even yacht managers who use it warn that it's a rough guide rather than a budget. A well-kept newer yacht bought at a fair price can cost less. An older yacht bought cheaply can cost far more.

That's why I prefer to build a simple, line-by-line budget with you for the specific yacht you're considering, using real quotes for dockage, insurance and service where you plan to keep her.

• Buy the right size. Every extra foot adds to dockage, maintenance and often crew.
• Choose a yacht with complete service records. A thorough survey up front is cheaper than surprises later.
• Keep up with preventive maintenance. Skipping it rarely saves money.
• Ask about chartering only with proper advice. Charter income comes with Coast Guard, tax and insurance requirements of its own.