Want To Buy: Owner Financed Catamaran? - And some advice

[Zven]

I don't know the OP, but in general I would expect someone who earns $250.000 to have a house and cars and habits to match, to spend approximately $251.000 of that money, and to be stressed about paying bills. It is the same at every income level, pretty much...

[ausaviator]

Originally Posted by valhalla360

If he's making $250k/yr and can't save $100k/yr, he needs to take a basic budgeting class. This should be easy. If he was putting away $200k/yr out of $250k/yr I would be impressed.

So still waiting on the funny part?

I think the previous poster has summed it up nicely!

I'm going to guess that you either don't have kids or had them a long time ago and have lost track of how much day care, after school care and schools cost, particularly private schools, home loans and other essentials. My in-laws live on around $28k and can save money as they are out country. I live in the city on a hell of a lot more than that and it is almost impossible to save with a rent or mortgage.

You have to assume the $250k is gross, otherwise the OP would have saved more by now.

It's funny... because it will never happen.

Ever seen this headline before?

"Couple saves $150k in one year and buys a catamaran and sails around the world."

Lol, no, and you never will! That's why it's funny.

[fxykty]

Originally Posted by boatman61

I know he will still owe the money.. thats my point.

I just remember some folks I knew in the Med who sold up in the UK and invested 90% into a boat.. 6mths in during a storm two planks broke loose at the bow.. the boat went down in a couple of minutes..

They lost everything including their sociable parrot and the dog.. last I heard they were trying to get a new start back in the UK living in a small rented studio.. not easy at 60 and 58yrs of age.

Dreams can turn to nightmares all to easy.. a fact dreamers dont get.

Ummm, insurance?

[Simi 60]

Originally Posted by ausaviator

I think the previous poster has summed it up nicely!

I'm going to guess that you either don't have kids or had them a long time ago and have lost track of how much day care, after school care and schools cost, particularly private schools, home loans and other essentials. My in-laws live on around $28k and can save money as they are out country. I live in the city on a hell of a lot more than that and it is almost impossible to save with a rent or mortgage.

You have to assume the $250k is gross, otherwise the OP would have saved more by now.

It's funny... because it will never happen.

Ever seen this headline before?

"Couple saves $150k in one year and buys a catamaran and sails around the world."

Lol, no, and you never will! That's why it's funny.

That's yours and the ops take obviously and I observe the same with others I know on relatively high wages who cry poor and can't save.
Funnily enough one that I know is a guy who is a financial advisor who tries to get us to see him.


Other side of the coin is I know just over 40s who earn about what the op does but they live like they earn half of it and smash debt and buy income with the rest.
They have kids, have paid off a modest home drive a good but not new car and are living comfortably.
I wonder how they manage?
I'm guessing their list of essentials are "actual" essentials vs others wants.

[valhalla360]

Originally Posted by Simi 60

That's yours and the ops take obviously and I observe the same with others I know on relatively high wages who cry poor and can't save.
Funnily enough one that I know is a guy who is a financial advisor who tries to get us to see him.

Other side of the coin is I know just over 40s who earn about what the op does but they live like they earn half of it and smash debt and buy income with the rest.
They have kids, have paid off a modest home drive a good but not new car and are living comfortably.
I wonder how they manage?
I'm guessing their list of essentials are "actual" essentials vs others wants.

Yeah, we don't make anywhere close to $250k (not even half that) but we wanted to save up $100k for something few years back and did it in 2yrs without really sacrificing much at all.

All the blather about daycare and private schools goes out the window if they are moving the family onto a boat...so cut the expenses NOW and start saving money to make the dream happen.

What's the old saying about insanity...doing the same thing over and over but expecting a different result.

If the OP gave us a halfway honest view of his situation, there is no reason he shouldn't be able to put away enough to pay cash for a decent used boat within a year. He may or may not be willing to do what it takes but it's very much a reasonable goal while still living a very nice lifestyle. In the end it will cost him more and make the dream less likely to happen if he goes into debt to make it happen.

[multihuler]

Originally Posted by bergmd

Hello,
My wife and I have decided to take our kids out of school and home school. With everything that's going on we think it is the best decision. We are planning on buying a live-aboard catamaran in the next few months to travel with them. Saving up for a boat wasn't on our radar until recently and do not want to tap into our 401k. We have a combined income of over $250k and both work remotely.

The boat we are looking for is between 38-53 ft and under $300k. We have not approached a bank yet about financing because much of our income is written off by my business. We are starting to save and have about $50k to put down.

I'd love to hear some feedback from anyone regarding our plans. I am 40 and my wife is 36. Our kids are 7 and 10.

Thanks In Advance,
Troy

I am restoring a Maine cat 41, they run $350k used,. I can lease her for a year @ $24k, plus insurance. Of course i could offer an option to buy.
Due to her being a major redo her value will be around $200 when finished, i have a new boat and looking for a use for the Maine cat

[Tillsbury]

Originally Posted by valhalla360

If he's making $250k/yr and can't save $100k/yr, he needs to take a basic budgeting class. This should be easy. If he was putting away $200k/yr out of $250k/yr I would be impressed.

So still waiting on the funny part?

The original post says that most of the 250k is “written off by the business”. To me, that sounds like the 250k is turnover, not net profit. So these calculations are irrelevant.

[Santiago]

Originally Posted by Tillsbury

The original post says that most of the 250k is “written off by the business”. To me, that sounds like the 250k is turnover, not net profit. So these calculations are irrelevant.

My advice - Rent a 2 bed hotel room with kitchenete and live with your wife and kids for 1 month prior to taking the boat plunge. Assuming all survive you will be in better shape to assess ability to sustain peace and tranquility on the high seas ...

[valhalla360]

Originally Posted by Tillsbury

The original post says that most of the 250k is “written off by the business”. To me, that sounds like the 250k is turnover, not net profit. So these calculations are irrelevant.

Just read the first post again. It clearly says $250k income. Nothing about writing anything off....so very much relevant.

[Tillsbury]

Originally Posted by valhalla360

Just read the first post again. It clearly says $250k income. Nothing about writing anything off....so very much relevant.

Read it again.

But generally, borrowing to buy a boat is a very very bad idea. You don’t borrow to purchase a depreciating asset.

[sailpower]

Originally Posted by Tillsbury

Read it again.

But generally, borrowing to buy a boat is a very very bad idea. You don’t borrow to purchase a depreciating asset.

That is going to be very bad news for the multi billion dollar marine lending and vehicle lending industries.

[Cadence]

Originally Posted by Tillsbury

Read it again.

But generally, borrowing to buy a boat is a very very bad idea. You don’t borrow to purchase a depreciating asset.

I was looking for it to read it again, I know it is there. It might sound good writing the kitchen sink off but it will bite you in the butt if looking to borrow money. I was wondering what you can write off with two business' which are done online?

[bergmd]

It's interesting everyone is focusing on the write offs. I'm not an accountant by any means, so again, I appreciate any and all advice. Everyone on here, by my definition(owning a catamaran), is more successful at business/saving than I am.

I have always ran my businesses to meet my life style and not much more than that. Working only about 15-20 hours a week. The "write offs" went towards travel and other subjective expenses.

The difference now is that I've been contract by a company to provide mission critical work in conjunction with leasing my patent. We have not been making the full $250k for very long(5 months) so that is why the lack of savings.

I know borrowing money to purchase a depreciating asset is a bad idea. The alternative is waiting until retirement? By that time our kids will out of school and who knows what kind of health I will be in. This is a window of opportunity to dramatically change from our current life style of sitting in front of a computer every day. Wisconsin is hard on ones health.

[bergmd]

Originally Posted by Santiago

My advice - Rent a 2 bed hotel room with kitchenete and live with your wife and kids for 1 month prior to taking the boat plunge. Assuming all survive you will be in better shape to assess ability to sustain peace and tranquility on the high seas ...

I have purchased a Sprinter Van and plan to live out of it the entire summer.

[Cadence]

Originally Posted by bergmd

It's interesting everyone is focusing on the write offs. I'm not an accountant by any means, so again, I appreciate any and all advice. Everyone on here, by my definition(owning a catamaran), is more successful at business/saving than I am.

I have always ran my businesses to meet my life style and not much more than that. Working only about 15-20 hours a week. The "write offs" went towards travel and other subjective expenses.

The difference now is that I've been contract by a company to provide mission critical work in conjunction with leasing my patent. We have not been making the full $250k for very long(5 months) so that is why the lack of savings.

I know borrowing money to purchase a depreciating asset is a bad idea. The alternative is waiting until retirement? By that time our kids will out of school and who knows what kind of health I will be in. This is a window of opportunity to dramatically change from our current life style of sitting in front of a computer every day. Wisconsin is hard on ones health.

I believe the focus on the write-offs is because you mentioned financing. Your on the books gross income is what matters for a loan. Bank or by a seller, if the seller has any brains. Not to be mean hearted but it sounds as though you may need to take a serious look at your income prior to embarking of a seaward journey.