How to Buy a Cruise Ship?

If you've got the urge to throw away some money to buy a cruise ship, you should have a banker on speed dial or pretty deep pockets. It's not often that you find a classified ad like "cruise ships for sale". However, it does happen from time to time.

Cruise ships range in price from USD 2 to 350 million and come in all shapes, sizes, and designs. It's rare to find a big cruise ship priced at less than a few million, although it's certainly not impossible. If you are seriously intending to buy a cruise ship, then you know how you will finance the purchase. Just find your price range.

How much does it cost to buy a cruise ship?

Do you wish to have your own cruise ship built? Naturally, the vessel's size will have an effect on the money. At the following links, you can compare building costs of cruise ships and also the world's top 50 mega-liners by size and capacity. The current world's largest passenger ship (228,081-ton Symphony Of The Seas) costs the shipowner Royal Caribbean USD 1,35 billion. An average-sized newbuild liner costs USD 700-800 million.

There are shipbrokers who might be able to help you purchase a ship built in the 1980s or 1990s, which was popular in the time, but the cruise line that owned it moved on to better vessels. Such a classic ship might set you back as little as USD 10-20 million. Of course, like any used vessel, it is going to need a huge investment to get it into shape to carry passengers, and bring it up to current maritime safety standards and upgrade it with the latest amenities. For example, in 2013 the refit of Carnival Destiny (now Carnival Sunshine) cost the shipowner Carnival Corporation about USD 155 million. When built new in 1996 the ship cost about USD 400 million.

Simply put, purchasing a cruise ship is an expensive proposition. But don't be upset – perhaps you'll be more than happy renting a cabin for a week as a cruise passenger.

Cruise Ships for Sale

There are various reasons why an individual owner or cruise line may put a cruise ship up for sale. The reasons may include the ship being outdated or the owner not being able to maintain it. Here are a few pointers to help you if in the market for cruise ships.

Determine the type of cruise ship that will best meet your needs:

• Five-star cruise ships; Three-star ships; Floating hotel ships;
• Ocean liners; River cruise boats;
• Luxury catamarans; Casino ships;
• 1,500-passenger ships; 100-passenger ships.

Do you need a 40-meter luxury catamaran, a 140-meter luxury cruise ship, or maybe a 240-meter classic cruise liner? Determine the size that will best suit your purposes.

Where to Find Cruise Ships for Sale?

Here is a list of places on the Internet that regularly advertise cruise ships for sale:

• Appolo Duck Commercial Listings (commercial.apolloduck.com)
• Homestead.com
• MegaYachtsOnline.com
• ShipTraders.com
• WorkBoatsInternational.com

Cruise ship construction is handled predominantly by European and Asian shipbuilding companies. The leading shipyards are owned by Fincantieri (Italy), Meyer Werft (Germany, Finland), STX France, and MHI (Mitsubishi Heavy Industries, Japan).

Refitting may be required as part of the transfer of the cruise ship. Each cruise line features its own livery (insignia, symbols, uniforms) which may be displayed throughout the vessel. Probably, you will be required to remove any branded materials or trademarked symbols and come up with your own original name and design.

Depending upon your dream, the ship you buy may be repurposed to meet your ideas. For example, many liners were repurposed as cruise ships when cruising became popular. There were also cruise ships that were repurposed as floating hotels. Floating casinos are very popular, as well. And since cruise ships often change hands multiple times, repurposing a vessel for its new role is very common.

The private cruise ship MS The World is a floating residential community owned by citizens of 19 countries. Navigating around the globe, it stays several days in each port, and its owners actually live on the ship. The itinerary is set by the residents.

The next photo shows in detail the Superyacht Streets of Monaco. The 152-m long ship is lined with scaled-down versions of Monte Carlo's' most famous buildings. The Grand Prix course version on the yacht doubles as a go-kart course. The ship has swimming pools, cafes, spa, full-size sports court (doubles as a helipad for private helicopters), library, interior parking for smaller boats, mini-submarine. Staterooms (16x VIP Suites) are sized 3800 ft2 (350 m2) each. There are also cabins for the 70 crew and staff members. The Superyacht cost about USD 1 billion.

Homes at Sea

For anyone who has struggled with the idea of spending savings purchasing a home or using it to travel the world, condo voyages present the perfect solution. These floating communities are becoming increasingly popular modes of fulfilling cruise fantasies with no need to leave the comforts of home.

Permanent homes at sea offer all comforts of a studio or multi-bedroom apartment on land, plus unparalleled sea views. The idea is growing more and more popular.

In August 2015, Crystal Cruises announced that its three new cruise ships will have up to 48 residences for sale each, ranging in size from 600 sq.feet to the whopping 4,000. The prices have been quoted as being in the multi-millions, and the cruise ships compared to New York's uber-luxe Baccarat hotel.

The oldest and largest residential ship on the water is named The World. It first set sail in 2002 and features 165 private residences. The World, which calls itself a "residential yacht", is the most famous ocean residence. Ship's studio apartments are selling for more than USD 1 million, while the top suites are priced at USD 13 million. Added costs can be quite steep. Residents pay annual fees to cover staff wages and maintenance, which can be another 10% of the purchase price. May be life at sea is an opportunity only for cashed-up retirees, not for struggling first-home buyers.

However, residents of such a "community-at-sea" collectively own the cruise ship, and can thus choose their itinerary along with the captain. Last year, The World stopped at 104 ports in 30 countries and covered around 41,000 nautical miles. Its itinerary included three in-depth expeditions: Namibia & Mid-Atlantic, which goes from Cape Town to the Canaries; Greenland Expedition, which explores the Faroe islands; and Antarctica Expedition, which passes through Panama Canal. Residents have visited native tribes in Papua New Guinea, gone scuba diving in St. Barths, kayaked among icebergs and tracked polar bears in the Russian Arctic. In 2012, The World became the biggest passenger ship to make it through Northwest Passage, a sea route through the Arctic.

Each unit on The World features a kitchen (there is even a grocery shop onboard, as well as a wealth of port calls in which to stock up), living and dining areas, multiple verandas depending on the apartment size and en-suite bathrooms for every bedroom. The luxury ship features a 7,000-sq. foot spa and gym, two pools, a jogging track, a tennis court, and golf facilities, as well as four restaurants, a grill, a deli, five bars, a tea room and private chefs for hire. Just like a true floating village, the vessel also has a movie theater, art gallery, library, chapel, medical center, florist and a constant stream of activities, such as classes in cooking, arts & crafts and dance, lectures and plays, and nightly entertainment. The concierge is able to organize access to exclusive events and all reservations around the world. The average age of the residents aboard The World is 64, with a solid 35% under 50. Most residents use the condos as second homes, and stay on board for a few months at a time, renting out their sea homes for the rest of the year.

Due to set sail in late 2016 or early 2017 is The Marquette, a 200-unit residential ship that will navigate inland waters in the United States. Planned features include theatres, hot tubs, a grocery store, and an 18-hole chip-and-putt golf course. The Marquette is already pre-sold, with prices ranging from the more affordable USD 327,000 up to 1,2 million.

Also making her maiden voyage soon is MS Utopia - the USD 1.5-billion liner is near twice the size of MS The World. The vessel has a total of 200 residential/condo units and 16 smaller cabins for tutors and nannies. The cruise apartments are on sale between USD 4-30 million. The annual maintenance fee for "ship residents" is ~4.5% of the list price. The American businessman Bill Powers shared his plans to buy a 3-bedroom suite on Utopia Residences:

“This satisfies my wanderlust desire without the inconvenience of packing, unpacking, going through customs, avoiding the wear and tear of travel.”

Living in a condo cruise ship helps to avoid common travel hassles like packing, unpacking, customs, lost luggage, etc. It also means traveling with an international set of neighbors. Resident families on The World come from 19 different countries, while the crew of 260 - from 40. Residents enjoy up to 5-day stops at each port and have the chance to join or leave the vessel at any point because itineraries are set two years in advance.

The sole alternative to such kind of lifestyle is purchasing a yacht, which makes buying a condo aboard a cruise vessel look like a steal.

Cruise ship retirement - cheaper than assisted living on land

Most cruises run from 3 days to 3 weeks, and prices average about USD 150 per day based on double occupancy, depending on the location and size of the room, on the length of the voyage and on the cruise line itself. The average price of independent living facilities is USD 2,000 per month and nearly USD 3,000 per month for assisted living facilities, so on average cruising is more expensive than traditional retirement options... but on average. It may be less than the higher-end facilities that charge USD 6,000 per month or more, and shorter sailings can even be found for USD 100 per day, bringing them close to the price of assisted living facilities.

It’s important to note that not all senior housing types are created equal. Life aboard a cruise ship might compare to expensive dull nursing homes showed in popular media, but the reality is different, and actually luxury senior housing and retirement communities provide many of the same perks that cruise ships do: customized senior nutrition, entertainment, chances to socialize, to name a few. And they are not as expensive as you might think.

Nursing homes and memory care, providing skilled 24-hour nursing, are the pricier options. However, for seniors who don’t need constant care, independent living and retirement communities are far less expensive - they generally cost less than a cruise: sometimes as little as USD 1,500 a month.

As to whether living out your golden years aboard a cruise ship is a viable alternative to spending them in the retirement homes, a Northwestern University geriatrician says such a plan is a cost-effective alternative to assisted living. Dr.Lee Lindquist, an instructor at Northwestern's Feinberg School of Medicine, has compared the costs of moving to an assisted-living facility, nursing home and cruise ship (over a 20-year life expectancy), including the expenses of treating acute illnesses, Medicare reimbursement, etc. She determined that the net cost of cruise ship retirement was only about USD 2,000 more than the alternatives (USD 230,000 versus USD 228,000) and offered a higher quality of service. According to Lindquist, the plan would work best for retirees who need minimal care.

"Seniors who enjoy travel, have good or excellent cognitive function but require some assistance with activities of daily living are the ideal candidates for cruise-ship care. Just as with assisted living, if residents became acutely ill or got to the point that they needed a higher level of care, they would have to leave."

Can cruise ship retirement be more cost-effective than the land-based one? Perhaps not if you are paying USD 164,000 per year for a premium berth. For example, prices on a 91-night world cruise aboard a Cruise and Maritime Voyages' ship start at GBP 4,387 per person. For that much, you’ll get meals, accommodation, entertainment and the chance to call at exotic locations on several continents around the world.

Average rents in Britain are GBP 761 per month (or GBP 1,160 in London). When you add council tax, water, electricity and gas bills, as well as groceries, it’s not hard to see why some retirees opt for a life afloat.

Which is cheaper: renting in London or cruise ship retirement?

• Round-the-world cruise (13 weeks, 91 nights) - GBP 4,390
• Renting in London - GBP 5,040
• Average rent in London - GBP 3,480 (13 weeks x GBP 268 a week)
• Council tax - GBP 235 (based on GBP 940 per year rate in the City of London)
• Water bill - GBP 92.50 (13-week Thames Water average)
• Energy bills - GBP 159 (According to “small house/flat” estimate of UKpower.co.uk)
• Transport - GBP 417 (Based on the cost of a weekly travelcard - GBP 32)
• Food - GBP 650 (Based on GBP 50 per week typical household spending, according to ONS).

According to Telegraph Travel's cruise expert Jane Archer, it was not so unusual for men, women, and couples who love cruising to take up residence on a cruise ship. Princess Cruises once told her there were over 100 passengers living on their vessels. Douglas Ward (Berlitz) adds:

"It's a safe, comfortable environment, the crew become your new friends, and medical facilities, should you need them, are close by. And, unlike a retirement home or village, a cruise ship moves to different locations for a fresh view every day or so. So, why not, particularly if you have no immediate family ties?"

For those of you planning to make a cruise ship their home, longer voyages are probably the better option because the same route is not repeated every 7 days as it is on shorter sailings. One might choose one port and board cruises from there and time between sailings would be spent in a hotel. The majority of lines don't offer single rates and single seniors will have to pay 200% of the listed price. However, there are also cruise lines that have single cabins on their cruise ships and offer no single supplement cruises.

The "cruise ship retirement" trend

Within the last couple of years, the notion of cruise ship retirement has started to gain some traction. Though there are currently no "retirement cruise ships," as we said above, it is still possible to book back to back cruises to create a floating cruise ship retirement for slightly more than it costs to reside in the average assisted living communities. Most of you would choose the cruise ships any day, won't you?

Choosing cruise vessels over the soil is not a new concept.

• As far back as 1963, a lady lived full-time in a tiny cabin on Cunard's RMS Queen Elizabeth 2.
• Rosemarie Roberts lodged for nearly 12 years on Royal Viking Line's ships.
• Irma Morgan spent 50 weeks of 2004 and all 2005 on Crystal Harmony (now Asuka 2).
• Clair MacBeth lived on a Cunard ship for 14 years.
• Lorraine Artz spends around 10 months per year on Royal Princess.
• As of January 2000, Bea Muller (89) was a permanent resident on RMS Queen Elizabeth 2 until the ship was retired in November 2008. Muller died in 2013.

The story of 89-year-old Bea Muller of Florida is still floating around the Internet. It's said that her husband died on RMS Queen Elizabeth 2 during "world cruise 2001". Faced with moving back home to live in a retirement home alone, Ms.Muller decided to sell everything she owned, and book herself onto the cruise ship one year at a time. Thanks to her frequent discounts, her overall costs amounted to around USD 5,000 per month (since then, cruise prices have increased; also, Ms.Muller's accommodations were windowless and small: a 10x10 foot cabin featuring only a bed, radio, and TV, with a bathroom smaller than an average closet.) However, Ms.Muller was happy with her life at sea:

"I've got full-time maid service, great dining rooms, doctors, medical center (where she volunteers), a spa, beauty salon, computer center, entertainment, cultural activities and, best of all, dancing and bridge."

86-year-old Lee Wachtstatter is another uncommon cruise passenger. Over a decade ago, after the death of her husband, she also decided to sell her Florida home and relocate to a cruise ship. In an interview with USA Today, she explains that her husband Mason introduced her to cruising and taught her to love it. During their 50-year marriage, they took 89 cruises.

The day before her husband died of cancer in 1997, he told Lee, 'Don't stop cruising.’ And she certainly took this request to heart as three years were spent onboard a Holland America ship and then she’s been a resident on 1,070-passenger Crystal Serenity for seven years - longer than most of the 655 crew members, who gave her the nickname “Mama Lee”.

Wachtstatter estimated that her “stress-free, fairy-tale” lifestyle cost her about USD 164,000 (GBP 108,000) per year, which covered the cost of her single cabin, meals in premium dining venues, gratuities and various activities including needlepoint classes and ballroom dancing with cruise hosts.

While few have spent quite as long at sea, Lee Wachtstatter is not the only full-time resident of the line. Crystal Cruises told USA Today that at least three other ladies live permanently on its ships.

Several lines offer world voyages that can last three months or longer. For example, Cunard's Queen Elizabeth 2 offers a world cruise lasting 108 days and 3 of these back to back span for almost one year. The least expensive accommodation aboard is an inside room for USD 16,845 (based on double occupancy and early booking). This works out to USD 155 per day to sail the world, including meals, amenities, and housekeeping, not to mention being able to tell all your friends that you have retired on QE2. Unlike many other lines, Cunard offers single rooms, starting at USD 24,180 for an inside on the 108-day cruise.

However, fares are for the cruise only and don't include taxes, airfare to the point of departure, gratuities or port excursions. Cruises of nearly any length up to 3 months can be easily found by shopping around the Internet or through a cruise travel agent. Princess Cruises offers a 102-day world voyage for USD 19,990 (inside room). Other lines include Holland America, Norwegian, and Radisson, offering discounts to travelers 55 and above, which may reduce prices for cruise ship retirement, making it a more affordable option.

Can you really retire on a cruise ship?

In 2017, a UK-based company (Bolsover Cruise Club) created a cruise ship retirement package making it possible to spend one's golden years on a year-round around the world cruise. The package cost only GBP 140 per month more than land-based retirement would cost.

Based on the UK's average wage of GBP 26,500, in theory, one would have been required to save an average of GBP 711 per month (if starting work at the age of 22) to afford the cost of “normal” retirement. Bolsover’s retirement cruise travel (the whole year-round cruising) costs GBP 34,439 PP, which would require you to save GBP 850 per month – an increase of only GBP 139 per month.

What does the new package include? Besides all fare-included amenities and onboard activities, this type of travel offers for just GBP 4,439 more per year to swap the UK's never-ending rain with tropical sunshine. Based on a 12-month cruise itinerary, retirees could expect to visit New Zealand, Australia, Pacific Ocean islands, USA, Southeast Asia, the Caribbean, canaries. These exotic travel destinations would be visited while aboard some of the world’s finest cruise liners with 24/7 entertainment, spas, gourmet dining.

Cons of cruise ship retirement

• Cost is only one of many elements to your choice of where to reside after retirement. Those of the golden agers who decide to make permanent homes aboard cruise ships always sacrifice proximity to their families who are no longer just a car ride away. Those devoted to children and grandchildren might find that too high a price to pay, no matter what the analysts say about relative financial costs. However, if your relatives are close to the coastline where your ship docks frequently, the arrangement could work well.
• Those who lack progeny but are involved in communities or are part of strong friendships may not wish to opt for the vagabond life, as it would mean abandoning all that gives them joy. Cruise ship retirement means one acquaintance after another and no permanent ongoing connections. Fellow travelers disembark to return to regular lives at the termination of 1- or 2-week holidays, which means that friendships struck up with them land very quickly in the "We'll keep in touch" bin. As for the staff, while serial vacationers can strike up deeply friendly relationships with some of the employees, these rapports are actually limited by their nature: no matter how close these associations appear to be, the employees are required to be respectful to paying passengers, so honesty, which is one of friendship-critical elements can never be part of the deal.
• Life onboard a cruise ship does not only mean leaving your relatives and friends, but it also means leaving your doctor. Cruise ships provide medical care, but not geriatric specialists. If you rely on specialists for ongoing health care, have in mind that you won’t receive that level of expertise aboard a cruise ship. Most seniors who consider cruise ship retirement can do so only as long as they stay healthy. Assisted living services are not available at sea. As you will not get specialized medical care, you will not get care for ADLs (Activities of Daily Life), either, and the idea of replacing your nursing home or assisted the living community with a cruise ship is not really a viable option.
• The only affordable cruise accommodations for many are the tiny inside rooms, which may be too tiny and too inside for some passengers. Living without a window for months could make some claustrophobic, even though there are plenty of open spaces on a ship.
• Activities onboard may not be tailored toward seniors. A significant percentage of cruise passengers are always seniors, but that doesn’t mean that cruise directors specialize in activities for seniors. Most of the action will be designed for adults of all ages, and if you want fun and innovative activities targeted at yourself, a senior retirement community is more likely to provide what you want.
• The logistics of permanent living on a cruise ship seem more than impractical. First of all, you cannot bring much more than a suitcase worth of possessions onboard. Forget about packing your favorite painting or sitting chair. That issue aside, it is not as if one could just move onto a boat and live happily ever after. Cruise passengers must disembark when the voyage ends, and make arrangements while the vessel is at the port. Keeping these arrangements month after month is more than burdensome.
• There is no tax deduction for living on a cruise ship. Some CCRCs permit to deduct a portion of the entry and monthly fees as medical expenses, even if you are not using the “care” portion of your retirement facility yet. But if you sell your home and move onto a cruise vessel, you won’t be able to enjoy the benefits of interest deductions from your mortgage (in case it’s not paid off) and you will not garner additional tax deductions.

Pros of cruise ship retirement

Everyday life onboard a cruise ship is similar to living in a retirement community or nice hotel, except that outdoor scenery keeps changing.

• Meals are provided. You can have room service, which means having breakfast in bed every single day of the week. And you’ll never have to wash dishes or make yourself meals like you would in ordinary retirement villages.
• Sheets and towels are changed on a daily basis, and you don't have to ask for them. Cruise ships also provide free toothpaste, soap, and shampoo.
• The staff takes care of the maintenance. Does the light bulb need changing? Is TV broken? Need to have your mattress replaced? They'll fix everything and even apologize for the inconvenience.
• They will treat you like a client, not a patient. Gratuities will only be USD 10 per day. An extra USD 5 worth of tips will have the staff scrambling to help you.
• No worries about transportation. Retirement communities provide easy transportation into town for appointments and shopping, and most also offer trips to the surrounding area. But it doesn’t get easier than having everything you need just a stroll away. And the best of all is no food shopping.
• Nearly limitless activities and entertainment - from shows to spa treatments, swimming, and dancing, cruise ships offer numerous onboard activities, plus shore excursions, tours and themed events.
• Travel the world. Do you want to see Asia, Australia, New Zealand, South America, Tahiti, the Panama Canal, or name where you want to go? Port calls provide an opportunity to visit the land and sightsee. The Internet allows for staying in touch with family back home.
• New, diverse people are coming onboard. Living on one cruise ship lets guests feel at home and get to know the crew. Living in a senior community has lots of benefits, including being surrounded by retirees of your own age. But immersing in a community of people of all ages, from babies and toddlers to teens, adults, and seniors may keep you young at heart.
• There is always a doctor on board. And if you are in good health and do not require any specialized care, living on a cruise ship could be an exciting way to kick off retirement. However, as we already pointed out, you should be ready for the possibility of relocating to an assisted living community or CCRC in the future if the circumstances change. The funny side of this, however, is, as follows: If you fall in a nursing home and break your hip, you are on Medicare; but if you fall and break a hip on a cruise ship they'll upgrade you to a suite for the rest of your life.

What to consider about cruise ship retirement?

1. Are you physically up for it? Remember that cruise ships are not designed to take care of travelers with extensive health care needs. In case you need a lot of day-to-day care or regular trips to the doctor, then a cruise ship does not make sense.
2. Can you really afford it, even if you end up needing nursing home care or assisted living later? Before you do any calculations to figure out how many years onboard a cruise vessel selling your home will buy, have in mind that there may come a day when you’ll have to spend the money you have left on nursing home care or assisted living. Even if the cruise ship staff love you, they won’t step into the roles that senior care professionals play when that day comes.
3. Will you get health care covered by your insurance while on travel? If you are going to be in and out of various ports, can you consistently reach physicians and hospitals that are covered by your insurance plan? And in case you need care on the ship itself, will the doctor be covered by your insurance plan?
4. Can you stay healthy on the cruise ship? Cruise ship food is not exactly the healthiest, although most liners have a fitness center for exercising.
5. If you stay on the same cruise ship, you will be visiting the same ports of call over and over again. At a certain point, the equation's “travel” part won’t be novel anymore. A resident ship like The World will all the time take you to new places, but it costs much more. However, a traditional ship will have consistent routes taking you repeatedly to the same spots.
6. Are you OK with a rotating community of acquaintances? Retiring on a cruise ship means meeting a lot of new people all the time, but not making long-term connections. Senior loneliness can cause negative consequences and loneliness does not only occur when you are spending all the time solitary. Are you confident that you can be happy without a consistent community surrounding you?
7. Where will you stay during maintenance? Cruise ships do not endlessly sail throughout the year and at some point, they have to stop, unload every single passenger and devote a period of time to dry dock. What will you do then?
8. Are you willing to give up most of the things you possess? Cruise ship staterooms are not known for spaciousness and are already furnished so you cannot bring your favorite recliner and there is not much room for your stuff.

Retirement on cruise ships is not an official industry - yet. However, its time is coming as more and more adventurers seek new options for retirement. Even without designated cruise ships, retirees can design their own retirement at sea. It may cost more than an average assisted living but spending days lounging on the deck, ordering stateroom service, having attentive staff at hand and being treated like a client instead of a patient, sounds hard to beat. For snowbirds who shutter their winter homes and travel to warmer climates for 6 months per year, living on a cruise ship may be an alternative to Florida. And for those who own a home and have their mortgage paid-off, it may be cost-effective to rent their home and use the income to pay for living on a ship.

Lots of seniors like the idea of cruise ship retirement and can make it work on their own. As the idea grows and more people choose to cruise instead of land-based options, retirement community developers will start to offer retirement cruise ships with purchased accommodations or affordable leased and more services for seniors. The success of resident ships like The World is already prompting such discussions and cruise ship retirement could become the next great retirement trend. In any case, with more and more cruise ship retirement options to come on the scene in the near future, you can always reconsider it later.