You can write off the interest on a boat just as you do a second home.
In the midwest the housing market has collapsed with no end is in sight. I think today it is probably a better investment to live aboard and rent in the winter then it is too own a home. It is very easy to spend $2k per month to own a modest home and then when you factor in the loss 2-7% per year on homes here it really makes sense. In our area we can rent a fully furnished condo for $550/month with all utilities included and live aboard in the summer. Slip fees
for a 45 footer will be around $3k and winter storage
is aboult half that if the boat is stored outside.
If you buy an older boat in good condition depreciation will not be a factor (it has already depreciated), maintanence can be large depending on how the boat has been upgraded and maintaned. If you look around you will find many good buys out there though.
We figure our annual maintanance cost to be 1-2% of new repalcement cost. If you buy a 50 footer that sells new for $550k then figure $5 to $11k per year to maintain. Understand, the spending may not be linear, you could have 4 years at $2k and one year at $27k. Of course many itmes requiring big bucks can be put off if they are not structural or safety
related. The $500/foot deck
repainting does not need to be done if yo do not have the money
. We bought an older boat 7 years ago and have spent 3.5% for 3 of those years upgrading propulsion
, genertion, rigging
, intrumentation, and cosmetics. We are now enjoying spending less then .5% on maintenance
and figure we will spend that percent for the next 5 years.
I would also have a tough time spending $800k in Maryland buying
a 2400 sq ft home and would look at living aboard