A recent survey conducted by the European Chamber of Commerce (EuroCham) in Singapore found that 50% of expatriates looking to renew their residential housing leases this year or last year have started facing rental increases of more than 40%. This should come as no surprise to anyone because Singapore has been consistently ranked as the most expensive city in the world for the 8th time in a decade by the Economist Intelligence Unit’s (EIU) 2022 Worldwide Cost of Living Index.
Singaporeans and foreigners alike have seen dramatic rises in the cost of living, with many looking at viable alternatives to help mitigate the financial burden. While some have chosen to downgrade their homes or move overseas, others take an unconventional approach by living on a boat.
“There is a growing demand for boat ownership in Singapore. Many people see it as a way to enjoy the beautiful coastline and waterways of the region, as well as a means of entertainment and recreation. Additionally, boat ownership can provide a sense of freedom and adventure that is hard to find elsewhere,” says Basco Boating’s co-founder and director, Dione Schick.
A boat brokerage platform based in Singapore, Basco (Boat Advisory Services Company) is one of Asia-Pacific’s most reliable and effective boating outfits. It operates three divisions: Online boat sales, a technical services marketplace and an independent buyer’s advisory service with the Basco Boat Buyers Academy.
A boat owner herself, Schick founded the company in 2016, together with her husband William, to help people achieve their dreams of building a life at sea. In an interview with Options, Schick shares her insights into how boat ownership could be a viable alternative to the city-state’s rising living costs.
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What is the potential for the boating landscape in Singapore?
Boating is an activity that has been gaining popularity in recent years, not just as a recreational pastime but also as a means of transportation in the region.
With its strategic location and tropical climate, Singapore is well-positioned to capitalise on the growing interest in boating.
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Singapore has already established itself as a hub for the boating industry in Southeast Asia, with a thriving ecosystem of marinas, boatyards, and yacht clubs.
The potential for the boating landscape in Singapore and the rest of Asia Pacific is significant. With rising affluence and a growing middle class in the region, more people can afford boats and yachts, which can be seen as a status symbol. Additionally, ecotourism is growing, and boating offers a unique way to explore the natural beauty of the region’s coastlines and waterways.
While owning a boat can be expensive, it is not just for rich people. There are a variety of boat sizes and models available at different price points, making it accessible to a wider range of people. Furthermore, boat-sharing and rental programs are becoming more popular, allowing people to experience the joys of boating without the full cost of ownership.
What could discourage a person from owning a boat?
Living on a boat can be a unique and exciting alternative to owning a traditional home in Singapore, but it comes with some challenges. One major limitation is that limited marina spaces accept liveaboards in Singapore, making it difficult to find a suitable location to moor the boat. Some strict rules and regulations must be complied with, such as obtaining the necessary licences and adhering to safety standards.
There is a lack of skilled workers in the boating industry and better infrastructure and facilities for boaters. Nevertheless, with the right investments and support, the potential for the boating landscape in Singapore and the rest of Asia Pacific is immense and could bring significant economic benefits to the region.
Despite these challenges, living on a boat can offer a sense of freedom and adventure that is hard to find in a traditional home. Living on the water can provide access to scenic waterways and coastal areas and offer a unique perspective on the surrounding environment. While boats may require more maintenance and upkeep than traditional homes, they offer a rewarding and fulfilling lifestyle. Whether living on a boat is viable depends on individual preferences and circumstances.
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How did you get into the business?
My husband did his marine technician apprenticeship at a boat dealership in New Zealand. Three years later, we purchased the workshop where he worked. Subsequently, we bought over the entire marine sales centre and dealership. In just a few years, we built it into an award-winning dealership for sales and service.
All the while, I was working at a chartered accountancy practice and doing night classes to get qualified in accountancy. I became a fully qualified chartered accountant with my own taxation and business coaching practice in a small town in New Zealand, all in the 1990s!
How do you facilitate the acquisition or sale of a boat?
We have a range of services for people at all stages, from buying a boat to buying one. If you are a first-time boater, we address the issues of trust and confusion in the traditional boat brokerage. We can work as your buyer’s broker or buyer’s adviser to help you understand the full costs and risks of owning and maintaining a boat. There are seven ways to be involved in the boating lifestyle, and owning a boat is just one of the ways, so it’s important to make the best decision for yourself and your family.
For boat sellers, we help address the issues of what it is worth, how long it will take to sell, and how much it costs to sell. We use a consultancy approach to understand a boat seller’s goals and objectives if their boat has been on the market for a while, to understand why it hasn’t sold, and we apply our nine-step BoatSellPro boat sales system to achieve a 33% faster boat sale and at half the cost.
What would be required for a person to own a boat in Singapore?
To own a boat here, a person must obtain the necessary permits and licenses, register the boat with the Maritime and Port Authority of Singapore (MPA), and comply with safety regulations and guidelines. Depending on the size and type of boat, the owner may need to undergo training and certification to operate it safely, and the boat’s captain needs to hold a PPCDL licence (the Powered Pleasure Craft Driving Licence).
In terms of maintenance, owning a boat requires regular cleaning, upkeep, occasional repairs and servicing. While the owner doesn’t need to perform all the maintenance tasks themselves, having some basic boat maintenance and repair knowledge can be helpful. Ultimately, owning a boat in Singapore requires a level of responsibility and commitment to ensure the safety and well-being of the boat and its passengers, who are likely to be your family and friends, which is very important.
Can you share the rough costs associated with owning and maintaining a boat?
The costs associated with owning and maintaining a boat in Singapore vary greatly depending on the boat’s size, type, age and how frequently it is used. Some costs to consider include boat purchase price or monthly loan payments, registration fees and taxes, insurance premiums, marina or storage fees, routine maintenance and repairs, fuel and other operating expenses.
Marina fees are one of the easier expenses to highlight since you usually pay on a per foot basis. But an 80 ft boat in a marina might cost $5,000 a month to berth, whereas a 20 ft sailboat on a swing mooring might only cost $500 a month. So, it is important to budget for these expenses and to consider the ongoing costs of boat ownership when deciding whether to purchase a boat.
Generally, boat ownership can be more expensive than other hobbies or leisure activities, but the experience and enjoyment of being on the water can make it a worthwhile investment for some people.
What would you say are some of your challenges?
As a digital boat brokerage and leading boating platform in Asia, one of the main challenges is to create a seamless digital experience for our clients. We have to ensure that our website is user-friendly, informative, and engaging for our clients, who are often looking for their dream boat or trying to make an informed decision about buying one.
Additionally, with the tens of thousands of people interested in the boating lifestyle in Asia, we need to provide our services to a diverse range of clients, regardless of their level of interest or stage in the buying process. This means catering to those simply dreaming or deciding about a boat and those ready to purchase.
To meet the demands of these “content seekers,” we have to create valuable content at scale, such as our two-day Boat Buyer Expo, online boat ownership courses, webinars, blog posts, videos and social media content, that provides relevant and helpful information about boating and the boating lifestyle.
