A boat doesn’t just provide a way to get from one shore to the next; it buys the freedom to roam the coastal areas, feel the breeze on the bow, and enjoy a night sky full of stars many miles from the nearest city. The closer you are to a body of water, the bigger the temptation to become a boat owner. But is it financially feasible for your family? If not, at what point can you comfortably afford the boat of your dreams? Here, you can get ballpark figures, but for the most precise estimate, book a call with a financial advisor before you start looking.
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TLDR — It’s A Very Expensive Hobby
If you’ve ever browsed online about boat marketplaces, you were surely surprised to see that a small 40-year-old fishing boat can carry a $62,000 price tag. However, that’s the nature of sailing. It is costly but worth every penny if you use it well. You can still get a small Jon boat or a used inflatable 11-footer for $1,000, but it won’t satisfy the urge. A used catamaran or a cruiser in decent shape, though, will run you about $40,000, but that’s only part of the total cost.
Here is a list of the estimated annual expenses for a $40,000 boat:
Insurance — approximately 1.5% of the total value — $600
Storage — from $600 to $3,600, depending on the location
Maintenance — roughly 10% of the purchase price or $4,000 in this case
Fuel — from $4,200 to $9,400, depending on the use and length of the season.
Taxes — may include sales tax, use tax, and personal property tax, depending on various factors
Miscellaneous Expenses — boat waxing, battery change, membership fees, etc., can add up to between $300 and $900+
How Much Should You Earn To Afford A $40,000 Boat Comfortably?
As you can see, the actual cost of boat ownership is significant. Despite the initial $40,000 cost, it will likely add a $10,000 yearly burden to your expenses. Owning a boat is a luxury, so your household income should probably be in the $300,000 range. However, this is rough estimate, as the real cost depends on a variety of factors.
Regardless, it won't be cheap. Moreover, it could significantly strain your finances. Speaking to a financial advisor before making such a big purchase is essential. They can provide a comprehensive analysis of your financial health and help you understand the opportunity cost of boat ownership. Additionally, being a boat owner has many tax implications that an advisor can help you with.
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