Are you looking to know the costs of boat ownership? Well, you’re in luck; we’ve got all you need to know to quickly get your hands on a vessel. The first thing you’ll need to know is that the costs of boat ownership are skyrocketing. But never fear! With the number of buyers also increasing, a load of high-quality and affordable vessels will hit the used market.
But before you jump in….. You’ll need to know about some of the crucial costs you’ll have to pay when you buy. Boat ownership can be expensive, but we’re here to help you set your budget straight. You’ll need to consider a few different costs, including the purchase price, operating costs, and more. Maintenance and repairs, storage, insurance, and the list goes on. Before jumping and making a payment, you must research all these factors to ensure you can afford your boating dream.
The best thing is you can now list your boat on MatesBoat and start sharing your boat with other boaties or you can undertake charter services. Yes of course you need to do a few things first but it is a relatively straightforward process and we are here to help! See our case study of Duane and his rental return.
The Costs of Boat Ownership 2023!
Getting your first vessel can be as exciting as opening presents on Christmas morning! You’ll explore the local watering holes, sink a few beers with mates, or catch that ripper fish. But first, let’s look at some of your initial costs of boat ownership in Australia before you head out to the open ocean.
Purchase Price & Financing
This one is obvious. Your budget for the costs of boat ownership is bound to have the purchase price as the top cost. But as with anything, not one price fits all. The type of ship will heavily affect its cost. Consider its size and type, make and model, and any additional features it may have.
For example, a small fishing dingy will cost less than a super yacht. It’s essential to enter the marketplace and determine what you want and how much it will cost. Then it’s a good idea to go out and compare it with other options..
Looking into finance options for your new purchase may be a good idea. You can get secured or unsecured finance from lenders like Credit One and be on your way immediately. Secured loans require the boat itself to be put up as collateral. Because of this, they generally offer lower interest rates. Conversely, unsecured loans, with no collateral at all, may draw in higher interest rates.
Registration
The next step when purchasing your boat is getting it registered. It’s required by law to register to identify it appropriately while on the water. The cost of registration can vary from state to state. The size, intended use, and horsepower can also affect the registration cost. For example, in Victoria, your unregistered engine-powered vessel will attract a $46.10 fee if it is below 4 metres in length. While an unregistered ship over 4 metres will cost you $96.20.
It’s also important to note that Domestic Commercial Vessel registration can be cheaper than state registrations! Contact the Australian Maritime Safety Authority (AMSA).
Insurance
Another one of the most important costs of boat ownership is insurance. The cost of your boat insurance policy will vary greatly depending on your boat, history on the water, and insurance provider.
The most popular choice of boat insurance is a comprehensive insurance policy. When you’re covered by comprehensive boat insurance, you’ll be covered for accidental damage, personal effects, and emergency assistance. Remember that if you are planning to rent your boat out or tackle charters then you will need a policy to cover this. Recreational boating insurance does not cover any commercial activity. The good news is you can contact R&M Insurance and tell them MatesBoat sent you.
Maintenance
Now you have your dream vessel, you must take care of it. The maintenance costs section of your budget should include servicing, hull cleaning, safety equipment maintenance, and plumbing checks. You should consider electrical system checks, interior cleaning, and propeller inspections.
You can do some of the simpler tasks on this list yourself. But seeking professional assistance for more complex maintenance is crucial. You’ll need to contact your tradesperson and obtain quotes to budget accordingly.
Set up a regular maintenance schedule with Michael at Seaworthy Inspections. Regular boat maintenance can save you from break downs and will no doubt save you in the long run.
Cleaning
Your boat needs constant love and care. Cleaning your vessel ensures that it looks nice for your guests. Still, it also contributes to maintaining its resale price and longevity. If you want to save money, doing this could be a fun way to spend the weekend. But if you’d instead do more exploring and less cleaning, professional cleaners are necessary.
The pros will cost you. Depending on the size of your boat, professional cleaning could cost you up to $2,000.
Fuel
Fuel is vital and could be your highest long-term cost. As we know, fuel is an ever-fluctuating expense. One month you could be paying $1.90 per litre; the next, you could pay over $2.35 per litre. So look for the prices at your local service station and take advantage of them when prices drop.
You could consider buying some extra tanks or storage containers so you can have a stockpile of fuel for when times get tough.
Storage Costs
Another of the biggest costs of boat ownership is storage. You’ll need to think about where you’ll keep your boat when you aren’t using it to catch massive fish. If you have a trailer, you could take it home and store it in your garage. But dry land storage or marina berths could be worth looking into for more convenience.
Mooring Fees
Let’s talk mooring fees. Mooring fees are the fees you pay when you store your boat. The fee varies depending on your storage option. Dry storage and trailer storage will be the most cost-effective option. While mooring in the marina will attract a heftier price tag.
For example, in NSW, the minimum cost of mooring is $238 in a low-rate area. That’s for a vessel up to and including seven metres. The price rises significantly for larger ships and for storing your vessel in a higher rate area.
Check out St Kilda Marina storage fees for an indicative price for dry and wet moorings.
Safety Equipment
You’ll also need to buy some safety equipment to comply with regulations. Items like life jackets, fire extinguishers, VHF radios, and anchors are essential to ensure safety. Unfortunately, there’s no getting around this. They involve some hefty upfront costs but will provide you and your guests’ with comfort and peace of mind. To save you some money you can now say good bye to the old fashioned pyrotechnic flares! the future of Safety at Sea is with Electronic Visual Distress Signals or EVDS. Check out their MAST approvals and what it means to you.
Tow sports & Fishing Equipment
Finally, you bought a boat to have fun! So you’re going to need to invest in suitable toys. If you’re into water skiing, you’ll need a tow rope, skis, and a wakeboard. Or if fishing is more your style, grab yourself a couple of lines and bait so you can cast off and get catching.
Overall, quality and fun equipment will keep you returning and enjoying your purchase for years to come.
Contact Credit One About the Costs of Boat Ownership
Looking to buy a boat? Credit One is one of Our Mates and will be happy to assist you. They’ll explain loan terms and help you decide between secured or unsecured loans. Check out Credit One’s article to learn more about the costs of boat ownership and make an informed decision. Trust Credit One to turn your dream of owning a boat into reality.
