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Where Does the Money Go?
Building a Custom Yacht Is Costly, but the Adventure Is Priceless. Illustrations by Gisella Macchiaroli.


A cruising yachtsman and investor in America’s Cup campaigns, J.P. Morgan knew a thing or two about the price of pleasure on the water. Despite his oft-quoted quip that people who ask how much a yacht costs can’t afford one, the fact remains that, for the most part, only owners who have experienced firsthand a custom yacht-building project have the slightest idea of how to answer the question, "Where does the money go?"

As yachts grow ever larger and costlier, it is instructive to look at the numbers involved and consider the question. In gathering information, we consulted brokers, builders, project managers and other knowledgeable sources in the marine industry, including suppliers and captains who had supervised new builds of large yachts. In this industry, which is governed by discretion and client confidentiality, especially where it relates to the subject of money, exact numbers are difficult to obtain. Nevertheless, the motor yacht that illustrates this article was based on a generic boat, around 160 feet, with a steel hull and aluminum superstructure—completely outfitted and ready to go to sea—with a budget of US$38 million. The cost breakdown is representative of what is known on the commercial side of the industry as ROM, or rough order of magnitude.

Remember, no matter the length, the cost of a yacht varies widely depending on the building materials and methods, the complexity of the systems, the level of interior detail, the quality of the components used in outfitting and the volume of the boat, which is a function of calculating the beam and depth of the hull and the beam and length of the superstructure into the equation.

So, where does the money go? Simple: into a thousand places you can’t see. This illustration .pdf walks you through the build. Once finished, the yacht will be far more than a house; it will be a self-contained mobile universe capable of voyaging to the farthest reaches of the earth.

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