"It breaks our heart, but we have now been advised we should break her up on the beach ...
"It was just an idiot moment," he said of the yacht's grounding.
Mr Phillips had been trying to help his wife who was in a dinghy but got stuck in the shallow water. He said the vessel was their home with all their personal belongings inside.
The experienced sailor had set out from Australia in 2001 to sail around the world, but after a tour around New Zealand he decided to make himself at home.
"We have been living on the boat for the past five or six years. It was the most comfortable place that we'd filled with our personal belongings ... it was our baby, our home."
The couple had third party insurance and their contents were not covered, meaning they'd have to start again from scratch.
He said the yacht's grounding had made him realise now might be the time to make a new home on dry ground.