Page 1

Luxury yachts are among the most expensive asset

What are the running costs associated with owning a

Is it possible to do a test run before buying the yacht?

yacht?

Vadim Blaustein: Yes. In fact, it is advisable to take the

Vadim Blaustein: The expected operational costs after the

yacht out for a test run before purchasing it to make sure

purchase of a yacht is around 10% of a yacht's initial

that the yacht you are planning to buy meets your needs.

purchase price. The costs include fuel, insurance, dockage

It is important to consider though that taking a yacht out

fees, maintenance and repairs, and crew salaries.

for a test is usually done at your own expense, but it can be well worth it. It would also be useful to have a survey

purchases. Before you start cruising the world's most dazzling waters in your super yacht, there are many things

What do yacht owners need to know when purchasing

team to inspect the yacht, in case you are buying a used

you need to know and consider, and the initial capital is

insurance policies and coverage?

one, for any engineering or mechanical issues before you

just one part of the equation.

Vadim Blaustein: Insuring a yacht is a multi-faceted

agree to buy.

consideration. Therefore, purchasing insurance policies Vadim

Blaustein,

a

resident

of

Monaco

and

an

and coverage for your super yacht, such as hull and

What is the average fuel burn rate of a yacht?

yacht

protection and indemnity insurance must be given

Vadim Blausten: Sea conditions vary more widely than

purchase and financing transactions, as well as tax

adequate attention. Some buyers hire a surveyor to

road conditions, so fuel consumption is measured in

planning, tells in this interview what aspiring yacht owners

examine the yacht thoroughly prior to purchase, as it is

gallons per hour. The cost of fuelling a yacht will depend

need to know before purchasing the luxury yacht of their

also often considered by an insurance underwriter to

on many factors, including the duration of use and the

dreams.

understand the vessel's state. As there is no standard

tank capacity. The standard usage for a 71m yacht is 500

form of super yacht insurance coverage, the owner must

litres an hour. The best way to get an idea of the exact fuel

How do you finance buying a super yacht?

analyse the coverage of each policy offered by insurance

consumption of a yacht is to install a fuel flow meter.

Vadim Blaustein: There are several ways to finance the

companies and understand the exclusions and limitations

purchase of a super yacht. Banks and marine lenders

that can have a direct impact on the quality of the policy

How much does a yacht maintenance and repair cost?

generally

that you have.

Vadim Blaustein: Estimating marine repairs is extremely

experienced

lawyer

provide

dealing

financing,

with

either

numerous

via

a

leasing

difficult. In general, maintenance of new yachts is low for

transaction for a fixed period or via a marine mortgage, registered on a yacht in her flag registry. Another option

What do crews normally consist of?

the first three years. However, the costs will start

is the fractional ownership, which essentially gives the

Vadim Blaustein: The crew composition ultimately

increasing significantly after three years. Irrespective of

buyer the opportunity to enjoy the benefits of a yacht

depends on the needs of the yacht owner. However, in

type, major machinery will often require major repairs in

ownership for a fraction of the price.

general, it consists of a mid-grade captain, first officer,

years 5-7.

deckhands, chefs, stewards, and engineers. How much does it cost to rent a yacht?

What is a fractional ownership and how does it work? Vadim Blaustein: In a fractional ownership, the costs of

What are the options available in terms of mooring?

Vadim Blaustein: The cost of a yacht charter is dependent

purchasing and managing the yacht are divided among

Vadim Blaustein: The yacht owner's biggest continuous

on a number of factors, including the charter destination,

the owners. It allows you to purchase a share of a yacht

outlay will be mooring fees. Depending on the size of the

type of yacht, local taxes, and the base cost. Charters can

entitling you to a number of days of use per year. The type

yacht you plan to buy, as well as your lifestyle, you can

cost from EUR 10,000 per week on smaller sailing yachts

of fractional program you choose will determine the

either buy or rent a marina berth. There are many

and catamarans, while on the most luxurious super

number of owners, the number of days of use and the

companies offering various leasing options, such as

yachts, these costs can go up to EUR 150,000+ per week.

duration of ownership. The company that manages the

annual renewable contracts and seasonal mooring

There are also many options available in terms of the price

fractional program handles the management and keeps

rentals. In addition, there are also companies that can

structure. For instance, you can have an all-inclusive yacht

record of each owner's personal preference. However, the

help you sub-let your berth if you are planning to vacate

charter price structure where rates are based on the

extent to which the company will go in personalising the

it for some time.

number of guests and include all other costs, such as food and drink, water sports and fuel costs.

yacht each time an owner comes aboard varies per company.

What are the berthing possibilities and prices in Monaco and other nearby marinas?

Thank you very much for participating in this interview and

What are the advantages and disadvantages of fractional

Vadim Blaustein: There are two ports in Monaco: Port

for sharing with us a lot of valuable information. Your time

yacht ownership?

Hercule and Port Fontvieille. Port Hercule is the only

and willingness to share your insights are greatly

Vadim Blaustein: The main advantage of fractional

deep-water port in Monaco and has 700 berths, 110 of

appreciated.

ownership is that you own the yacht for a fraction of the

which accommodate yachts over 24m and its largest

cost and with less hassles of management responsibility.

berth can accommodate a yacht up to 130m in length.

It also cuts some of the ongoing costs, such as the

Berthing spots during prime-time events such as the

maintenance costs since they get split among the owners.

Monaco Grand Prix and the Monaco Yacht Show can cost

However, there are also some drawbacks, such as the fact

around EUR 100,000 or more for a five-day stay. You can

that your time aboard is pre-scheduled and you will not

also find some excellent marinas near Monaco, such as

More info about Vadim BlauStein and BlauStein Business

be able to personalise the yacht the way you would want

ports in Menton, Cap d'Ail, Beaulieu-sur-Mer, Cap Ferrat

Lawyers you can find on www.blaustein.pro

to.

and Villefranche.

Vadim Blaustein on What You Need to Know before Purchasing a Yacht  

Vadim Blaustein, a resident of Monaco and an experienced lawyer dealing with numerous yacht purchase and financing transactions, as well as...

Vadim Blaustein on What You Need to Know before Purchasing a Yacht  

Vadim Blaustein, a resident of Monaco and an experienced lawyer dealing with numerous yacht purchase and financing transactions, as well as...