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Old 04-03-2015, 14:25   #166
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Re: The Answer to How much it Costs to Cruise

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I made $80K profit when I sold my first house and $220K profit when I sold my second house. Profit or loss depends on where and when you buy the house and quite a bit of luck.

But, you need a place to live and if you're working somewhere out of commuting distance from the water, it's going to be a house, trailer or apartment. A house is generally a better investment.
I guess you and I will NEVER agree on much, but that's ok.

We sold our home for $170.000.00 after living in it for 12 years (144 months). The selling price when we bought was about $130,000.00. So we made $40,000.00, right?

WRONG! Maybe that's how you get your figures.

Here is how I figure it - We paid $850.00/mo. for mortgage = 144X$850.00= $122,400.00.

Also, $400.00 month for property taxes (not in escrow). 144X$400.00=$57,600.00.

Home Owners Association fees @ $350.00/yr X 12= $4200.00.

So, out of pocket cost for 12 years was $184,200.00. We netted $40,000.00 from the sale. How is that a profit? You are blind, my friend. Unless you pay cash, and have no property taxes.

Forget all the bucks you spent to furnish a home that is pretty much worth nothing in the end (if you sell out totally like we did). We paid a company to do an estate sale, and they did a great job. But, the check from them was a fraction of what everything cost us to begin with. We had yard sales, donated to charities for quite a bit of stuff too. The rest, I hauled to a dumpster. The last thing before we left, was to sell our car to some friends. Went back to the dock, and left. Nothing in storage at all.

Like A64pilot says..... I'm the guy that knows I make X, and wonder where the Hell it all goes to.

Once you live and cruise on your boat, you'll know where EVERY dollars goes. I could go on, but why bother. I've finally figured it all out. You guys just need to figure things out in your own mind. See you out there, hopefully!

Ralph
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Old 04-03-2015, 14:35   #167
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Re: The Answer to How much it Costs to Cruise

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I guess you and I will NEVER agree on much, but that's ok.

We sold our home for $170.000.00 after living in it for 12 years (144 months). The selling price when we bought was about $130,000.00. So we made $40,000.00, right?

WRONG! Maybe that's how you get your figures.

Here is how I figure it - We paid $850.00/mo. for mortgage = 144X$850.00= $122,400.00.

Also, $400.00 month for property taxes (not in escrow). 144X$400.00=$57,600.00.

Home Owners Association fees @ $350.00/yr X 12= $4200.00.

So, out of pocket cost for 12 years was $184,200.00. We netted $40,000.00 from the sale. How is that a profit? You are blind, my friend. Unless you pay cash, and have no property taxes.

Forget all the bucks you spent to furnish a home that is pretty much worth nothing in the end (if you sell out totally like we did). We paid a company to do an estate sale, and they did a great job. But, the check from them was a fraction of what everything cost us to begin with. We had yard sales, donated to charities for quite a bit of stuff too. The rest, I hauled to a dumpster. The last thing before we left, was to sell our car to some friends. Went back to the dock, and left. Nothing in storage at all.

Like A64pilot says..... I'm the guy that knows I make X, and wonder where the Hell it all goes to.

Once you live and cruise on your boat, you'll know where EVERY dollars goes. I could go on, but why bother. I've finally figured it all out. You guys just need to figure things out in your own mind. See you out there, hopefully!

Ralph
You are leaving out the fact that you had a place to live for all those years. And you had the benefits of the HOA. And you had a tax deduction for the mortgage interest. If you had rented that home all those years you would have had the same expenses plus the owner's profit and at the end you would have gained nothing.

You can doctor figures to suit your purpose if you want but if you want to live someplace, owning that place makes financial sense for almost everybody.
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Old 04-03-2015, 15:09   #168
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Re: The Answer to How much it Costs to Cruise

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Will the Tax man look at it that way with the Obamacare 3% real estate sales Tax....

Answer....
Trolling?

Maybe you should look up the current tax requirement of owning a home. Some of us have owned homes for over 30 years and have seen lots of things changed regarding taxes and home gains. That's the way things are.
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Old 04-03-2015, 15:14   #169
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Re: The Answer to How much it Costs to Cruise

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You are leaving out the fact that you had a place to live for all those years. And you had the benefits of the HOA. And you had a tax deduction for the mortgage interest.

You can doctor figures to suit your purpose if you want but if you want to live someplace, owning that place makes financial sense for almost everybody.
I'm not doctoring anything, Ron. Your numbers are. It's dollars out of my pocket, and what I get in return. That is pretty simple, no?

My boat is paid for. I have a place to live, no? I don't need a tax deduction these days. Life is simple. How can you argue what I have posted?

Funny how the full time cruisers have figured this out, and those wanting/ needing to enjoy *stuff* don't get it and are afraid to give up what they perceive as "living the good life'.

I certainly don't want to convince you to live your life my way. Like you, I'm not all that young these days, and we should both be pretty smart by now. Just please, don't try to convince others looking for a new (and maybe better) lifestyle, that YOUR way is better. For me, after all these years, I have discovered what "freedom" is.

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Old 04-03-2015, 15:19   #170
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Re: The Answer to How much it Costs to Cruise

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Trolling?

Maybe you should look up the current tax requirement of owning a home. Some of us have owned homes for over 30 years and have seen lots of things changed regarding taxes and home gains. That's the way things are.
Own 4 of them...how do you think I retired at 38 and went cruising with a family of 4...on food stamps?

You made a reference to Profit Gain...I commented that according to the IRS they called it a gain for the Obmacare tax...and now I'm a troll? Ha ha ha....Amigo...you need to get out cruising and chill. And no...that's not always the way things were...the new 3% tax on real estate sales is NEW thanks to Obama.
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Old 04-03-2015, 15:33   #171
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Re: The Answer to How much it Costs to Cruise

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You are leaving out the fact that you had a place to live for all those years. And you had the benefits of the HOA. And you had a tax deduction for the mortgage interest. If you had rented that home all those years you would have had the same expenses plus the owner's profit and at the end you would have gained nothing.

You can doctor figures to suit your purpose if you want but if you want to live someplace, owning that place makes financial sense for almost everybody.
That isn't always true. It depends on the market you're in and on the time horizon that you choose to keep the property.

I live in a place with insanely high property prices. I will probably only live here for a few more years, so I would have to bear all the buying and selling costs.

I did a bit of math. I pay $2100 per month on a place worth $600,000. If I put 10% down, then I would be losing the investment value of the down payment, plus I would be paying $1700/month in interest, plus taxes, plus strata, plus maintenance.

The way I see it, it's pretty much a wash. It might be worth it if I was going to be here long enough to be confident that the house price was going to go up and to amortize the buying and selling costs.

The reason my landlord is ok with this arrangement is that he put more than 10% down and he bought it a few years ago when it wasn't as expensive. So he still sees a small positive cash flow and is growing some equity.
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Old 04-03-2015, 15:42   #172
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Re: The Answer to How much it Costs to Cruise

Gosh, reading all of these different ideas on how much it costs to live on land, I'm starting to understand why it's so hard to come up with a figure for the cost of living on a boat!
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Old 04-03-2015, 15:43   #173
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Re: The Answer to How much it Costs to Cruise

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I'm not doctoring anything, Ron. Your numbers are. It's dollars out of my pocket, and what I get in return. That is pretty simple, no?

My boat is paid for. I have a place to live, no? I don't need a tax deduction these days. Life is simple. How can you argue what I have posted?

Funny how the full time cruisers have figured this out, and those wanting/ needing to enjoy *stuff* don't get it and are afraid to give up what they perceive as "living the good life'.

I certainly don't want to convince you to live your life my way. Like you, I'm not all that young these days, and we should both be pretty smart by now. Just please, don't try to convince others looking for a new (and maybe better) lifestyle, that YOUR way is better. For me, after all these years, I have discovered what "freedom" is.

Ralph
If you are convinced that owning a home is a poor investment, there's nothing I can do to change your mind. And living on a boat does not compare to living in a home on land financially so there's no point in bringing that up.

Spin it however you want to, I'm done with you.
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Old 04-03-2015, 15:46   #174
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Re: The Answer to How much it Costs to Cruise

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Own 4 of them...how do you think I retired at 38 and went cruising with a family of 4...on food stamps?

You made a reference to Profit Gain...I commented that according to the IRS they called it a gain for the Obmacare tax...and now I'm a troll? Ha ha ha....Amigo...you need to get out cruising and chill. And no...that's not always the way things were...the new 3% tax on real estate sales is NEW thanks to Obama.

How does a tax on investment property gains have anything to do with this discussion, which has meandered, but when talking about house Vs. Boat, the discussion has been about the place where you live, not an investment property. Please, Rich, consider that potential customers read these threads. I really like your product but now am concerned I will have to listen to your political opinions in order to buy a water maker, and if I voice disagreement, your promised superior customer service might not be available to me. Yikes!


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Old 04-03-2015, 16:01   #175
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Re: The Answer to How much it Costs to Cruise

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Will the Tax man look at it that way with the Obamacare 3% real estate sales Tax....

Answer....
Not to worry. The tax is only imposed on any profit above $500K on the sale of the house, AND, you must have an AGI above $200K if single or $250K if married. Don't think many on this forum need to be concerned. BTW, the tax is 3.8%.
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Old 04-03-2015, 16:02   #176
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Re: The Answer to How much it Costs to Cruise

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If you are convinced that owning a home is a poor investment, there's nothing I can do to change your mind. And living on a boat does not compare to living in a home on land financially so there's no point in bringing that up.

Spin it however you want to, I'm done with you.
Since you don't wish to put up hard figures to support your view, that's quite fine with me.

You really like that emoticon, huh?

Back to cruising costs. Mine is $12-1500.00 month (after 2 1/2 years). YMMV

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Old 04-03-2015, 16:31   #177
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Re: The Answer to How much it Costs to Cruise

In Oz, there's no capital gain tax on the family home when you sell. A buddy of mine has bought and sold his family homes every 3 years for the last 30 years. His now retiring and downsizing into a small house in a nowhere suburb.

He owns a 50 foot sailboat and his last sale left him with $1.5 million spare. Not too bad considering his first house cost him $50k. Admittedly he's paid plenty in repairs and developments on the houses; he reckons $300k. Still not too bad a retirement nest egg. He will transfer that money into an annuity earning 10% on which his tax is $0. When he dies, the kids get the $1.5 million but in the meantime He has $150k a year to live on and this is over and above his company superannuation package. He's 60 so only has 20 odd years of sailng left.
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