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How Much does a Bluewater Sailboat Cost? | Sailing Soulianis - Ep. 22 - YouTube
Channel: Sailing Soulianis
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- Now that we've owned our
boat for a little while.
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- And we have officially left the dock.
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(upbeat music)
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- We thought it might be a good time
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right before we set off down the river
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to take a step back and talk
to you guys about money.
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- Cash flow.
- Dollah-dollah bills, y'all.
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- Clams.
- Clams?
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- Everybody always wants to
know, how much does it cost?
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- And it's one of the most
important questions too
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because it's one of the
biggest barriers for entry.
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Once you decide that
you want to buy a boat,
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once you decide that
you want to go cruising,
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the next biggest question
is, do you have the money?
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- Today we're gonna talk to
you about a couple of things.
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We are going to answer the question,
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how much does it all cost?
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We just bought a boat.
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That's the big one.
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- We're gonna touch on
our saving and planning
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in the years that lead up
to actually buying the boat.
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(champagne squirting)
- Yeah (laughing).
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Lauren just paid off all her school loans.
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The types of expenses to
expect when purchasing a boat.
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- [Woman] $370 to document a boat.
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When you have a lien and
you have to record it
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it jumps up to like $570.
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- The upgrades that we
needed to do to the boat
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once we purchased it.
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- A new windlass.
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- 44 pound Rocna.
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We got a dinghy!
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Here is your throne.
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200 feet of chain.
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- Lastly, we're gonna talk about
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the tools that we developed,
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to help us answer some of the questions,
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like should we finance the boat
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and how much boat can we afford?
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And how much is it gonna cost
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to make this boat into
what we want it to be
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after we do buy it.
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It took us 10 years
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from the day we decided
we wanted to go sailing,
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to signing the dotted line
to purchase our sail boat.
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Was it 10 years, really?
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- Yeah it was, I mean
it's kind of a gray area
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but yeah, it's about a decade.
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Overall, our biggest thing was
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we didn't wanna just save
up some money, take off,
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and then when that money run out,
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be forced to come back to land.
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We actually already had done that once.
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It wasn't a boat situation,
but we quit our jobs
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and we took off traveling,
and then we ran out of money
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and we had to come back and get jobs.
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We did that in our early 20s
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and that wasn't something
we wanted to do again.
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This time we wanted to
make it sustainable.
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So we wanted to eliminate debt,
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we wanted to acquire some
passive income streams
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and.
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- We needed to save for the boat.
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- And we needed to save for the boat.
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- So while it took us 10 years
to do all of those things
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you can probably get
them done a lot faster
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if you don't come out of school
with massive amounts of debt
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and if you are comfortable with the idea
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that after a year, or two,
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you might need to stop
and get different jobs.
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We're treating this a
little bit differently,
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we're wanting to make it
a sustainable lifestyle
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and so we are working
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the entire time that we're traveling
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and we're hoping to cut
back on that a little bit
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but it's more of a lifestyle choice for us
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rather then a sabbatical.
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(upbeat music)
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So during all of our time
thinking about buying a boat
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in that 10 year period,
we also had to talk money.
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We had to figure out how
much money we could spend
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and it wasn't always clear because.
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- The type of boat that we wanted changed.
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- Drastically.
- Like drastically
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over the years that we were searching.
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- I'd like it, we'd have to
put some money into it though.
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- That boat's a piece of work.
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- We really didn't follow
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a very well thought-out plan,
which is why I wrote the post
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"How to Buy the Right Sailboat for You."
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(laughs) So that you could
learn from our mistakes.
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- So you're not idiots like us,
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spending years looking for a boat.
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- But when it came down to brass tacks,
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we decided we had a
all-in budget of $50,000.
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- And the $50,000 thing actually came
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just a little bit after
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we had like a $30,000
budget for a little while.
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- For a while we thought we
wanted to stick around $30,000
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and then we decided we could
go a little bit more to get
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what we felt like would be
a significantly better boat
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that was gonna require a lot less work.
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- Yeah.
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- So that really leads into, kind of
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the thinking behind our budget
was, we had $50,000 all-in.
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That meant we could buy a $50,000 boat
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and not spend a penny more,
or we could buy a cheaper boat
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and every dollar under $50,000
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was money that we could
put towards upgrades.
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- You might still be
wondering, why $50,000?
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We wanted to buy a boat that
was pretty much ready to go.
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We didn't want to be stuck in a boatyard
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for months or years, trying to
finish a half-completed boat.
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We looked at boats that
were less than $50,000
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and we felt like either,
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they were too small for the two of us,
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or they weren't in good enough condition.
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And so after looking at
hundreds of listings,
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probably thousands, it
just seemed like $50,000
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was the minimum amount
that we would need to spend
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to comfortably get what
we were looking for,
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which was something that
was pretty much ready to go
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and also the size that we wanted,
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somewhere between 35 and 40 feet.
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- And the reason for that is a few things.
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I'm six foot three, and
having standing head room
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in the place that I'm going
to live, is very important.
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Also, we work remotely, so
we need some office space
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and having some space for
toys was also very important.
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- [Lauren] What d'you got?
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- I got some kiteboard here.
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(upbeat music)
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How much does it all cost?
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Is that where we are at?
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- Well, yeah, we're gonna focus on
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how much it costs to
actually buy the boat.
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Of course there are costs
once you buy the boat,
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ownership costs, but we will
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only.
- Save that for another video.
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- Focus on what it costs to buy the boat.
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- When buying a boat,
there are a lot of expenses
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that are easily overlooked.
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We found that when buying our
boat, all of those expenses
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added up to about 10%
of the purchase price.
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- And that's because of all
these other little expenses
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that you really don't think about
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when you're just browsing online,
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looking at the listing price of the boat.
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The list price of our boat, was.
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- What was it, do you remember?
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- I'm pretty sure, it was 40 ss.
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- Do we need to look it up?
- Seven?
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There it is, 47.
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- Okay.
- 'Kay.
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- So our all-in budget, was $50,000.
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The boat was listed for $47,000.
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Bing!
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We're under budget already.
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- Yay.
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- We offered.
- 41,000
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- We agreed on a purchase
price of $43,500.
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- That.
- That was great (laughs).
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- That left us with $6,500
for upgrades and repairs,
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which we thought was fantastic.
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- But not so fast.
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- That was before we realized
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all of the other transactional costs
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associated with the purchase of our boat
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were going to add up to $4,029.
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- Wah-wah.
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- So what were all of those costs?
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- Survey, $740.
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- Our haulout to inspect
the bottom of the boat
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during the survey was $272.
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- Insurance was actually something
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that we needed to have at the closing
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because we decided to finance our boat.
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- $591.
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We bought a Boat US membership,
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so that we had unlimited towing.
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We felt like we didn't
want to leave the dock
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and go anywhere without that.
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Was $10.
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- $10 that was the best
money that we spent I think.
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- (laughs) Closing costs, were $125.
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- Registration was 73 but the
biggest one was sales tax.
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- That was $2,218.
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- Ouch.
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- And depending on which state you are in
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and how dubious you
feel like being that day
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there are many ways,
both legal and illegal
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to try and get out of paying the sales tax
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but we just decided not to
go through all of that hassle
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and pay up.
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- Because we're also
not by nature, crooks.
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So that did a good job of eating up
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most of the rest of our budget.
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- Leaving us with a total of
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$2,471 for upgrades and repairs.
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That's startin' to feel a little bit slim.
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(jazz music)
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- 99.9% of the time when you buy a boat
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there's gonna to be something
that you want to do to it
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after you buy it.
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And in our case,
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there was a bunch of upgrades
that we wanted to make.
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- But we prioritized a number of things
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that we wanted to do to the boat
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before heading down the river.
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- To be specific, we weren't
super-concerned about
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getting a solar array up, we
also weren't concerned about
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immediately upgrading our batteries.
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Those were things that
we decided to do later.
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But the things that we did do.
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- Are many.
- Yes.
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(jazz music)
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- Are we showing a list
on screen right now?
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- Sure, I don't know.
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We bought a radar reflector,
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we bought a handheld VHF,
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we bought two jerry cans for fuel,
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one for water.
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We got a free inflatable dinghy with oars.
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We upgraded all of our LED, all
of our cabin lights to LEDs.
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We bought Navionics for our iPhone.
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We purchased a new Rocna anchor.
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We purchased and installed a windlass.
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We added 200 feet of 5/16 high test chain.
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We got an anchor bridle, a swivel.
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And everything to finish out our.
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- Anchoring system.
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- Ground tackle anchoring system.
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We got our cell phone signal
booster and an antenna
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so that we can continue working.
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And we made covers for our compass,
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our handrails and our winches.
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And put in some soundproofing
for our engine compartment
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so that it wouldn't drive us crazy
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as we were motoring down
the river in a sailboat.
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That covers it.
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- Is that it?
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- That is all of our costs, to
date from purchasing the boat
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through leaving our home port
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and starting out on our adventure.
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I just realized I didn't
include the stuff we bought
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before we bought the boat
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which was the holding
tank, which was $700,
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which would put us $1,100 over budget.
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- Oh (laughs).
- Shh.
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There are probably a few thousand
dollars of other expenses
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in there for just living expenses.
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Probably a couple of hundred more in there
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for just consumables and
every day odds and ends
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like cleaning supplies, and.
- Kleenex.
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- Little bits here and there
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that didn't make it into this list.
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- Kleenex.
- Kleenex.
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Why Kleenex?
- I don't know.
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- And a few months between buying the boat
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and preparing her to head down the river,
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we spent a total of (tapping on wood)
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$2,924
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meaning we were only $423 over budget.
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For a grand total of $50,423 spent
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to purchase and outfit our boat
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for extended, long-term travel.
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(upbeat music)
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So how did we spend $50,000
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and only manage to go $423 over budget?
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That's a good question, you might ask.
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- How do you know that a boat is listed
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for a reasonable price?
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How do you know what to offer?
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Not all the time do you want
to offer the full price.
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I mean, just like houses,
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you often offer under
what the asking price is.
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And then how did we know
that the counter-offer
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was something that was acceptable?
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Those are all really good questions.
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And we didn't just stick with a feeling.
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You know, it wasn't like
oh, this feels right.
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But we crunched the numbers.
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- As part of the process
to purchase our boat
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we developed a few financial tools
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to help us make decisions
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and streamline the boat-buying process.
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The first tool we created
to help us determine
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what was the fair market value of the boat
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that we were looking at.
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It also served to help
us take an inventory
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of everything that was on the boat
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so that we could figure out
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what else we might need to add
to that boat after purchase.
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- 'Cause the boat itself
is only one part of it.
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especially if you're going to be cruising,
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all the extra stuff on
the boat is a big deal.
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- So this tool helped us estimate the cost
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of everything that we would
need to add to the boat
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after purchase, and is a major reason
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why we were able to stay
pretty close to our budget.
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The tool also helped us
analyze sold boats data
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we got from the listing broker.
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We were able to look at
all of the sales history
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for the past three years
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of every Tartan 37 sold through a broker,
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and analyze the average sales price,
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how long it sat on the market,
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the percent and dollar
amount of the discount,
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and ultimately, generate
a suggested offer price
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that we should make on the
boat that we were buying.
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- [Lauren] So that we knew
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we weren't gonna overpay on the boat.
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- The second tool we created,
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was a tool to help us decide
between buying the boat in cash
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or financing the boat,
and saving that cash
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and investing it in some other manner.
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Both of those tools we created
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were extremely important
in helping us make
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all of the decisions throughout
our boat-buying process.
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We're really excited
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to be able to share those
tools with our patrons.
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You'll have full access to
all current financial tools,
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as well as any future
updates that we make to them
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along the way.
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- But if you're not a patron
[722]
and you're still interested
in using these tools, you can.
[725]
- We're making them available for purchase
[726]
and they can be downloaded
directly from our website.
[729]
Put a link in the description below.
[731]
- Below.
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- Thanks so much for watching.
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If you like what we had to share today
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even through it was a little bit different
[736]
and at some times awkward.
[738]
(whispers) Mostly her.
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- Yeah, definitely.
[740]
- (laughs) Let us know.
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If there is somethin' that
we didn't cover here today
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that you'd like to see, tell
us in the compli, compliments?
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- Tell us in the compliments.
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- Tell us in the compliments, yo.
[748]
- Compliments only (laughs).
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Anyway, thank you for watching,
and we will see you soon.
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