What percentage of your net worth does your boat represent?

[Teknav]

Hey Ken! Don't say it too loud about relocating without dropping a few coins in politicians' coffers; they might figure out something after all and tax your move. Michigan is trying to tax snow bird retirees who moved their retirement money to FL! Mauritz

[Liam Wald]

Originally Posted by zeehag

this is hilarious. is very easy to say when you own and reside in a house of some sort, which is also a money hole. rodlmao.

Not really.
Both of the homes that I own are worth 150% more than I paid for them and I have only spent 10% of their value to maintain them. That puts them in the plus column.
My boat is worth 75% of what I paid for it plus most additional expenses except for slip fees and haulouts. That puts it in the negative column... but then who cares.
While the homes are an investment. The boat is entertainment, lifestyle, adventure and overall happiness.
I have owned boats for 35 years. My first boat represented 99% of my net worth.
This one, my fifth boat, represents 20% of my net worth. It is, incidentally, probably valued at 1200% more than my first boat.
I simply cringe at the thought of just exactly how much 35 years of slip rent, haulouts, insurance, and marine stores have cost me.
Of the 5 boats that I have owned, two have sold for the same price I paid for them and two have sold for approximately 25% less than I paid for them. My guess is that I would have lost that much money to inflation or maybe just blown it on rich food and expensive liquor anyway so, like I said, who cares?

[bobconnie]

Gee, Except for some property in Alaska, and our place down here on the Bayou, we don't have anything worth as much as our boat ! And Im not talking about money, but the pleasure we receive from the freedom of cruiseing! The Alaska property is just a money producer, nothing anyone would want to live on ! And the Bayou property is just a place to dock our boat when we are not at sea! When we bought both of these pieces of property, we spent about 30 grand total. the boat, well lets just say we spent a little more that LOL so I can't really figure out what percentage we are at!! But then I only went to High School never got any more education! Except for some school of hard knocks! To us, as long as we can cruise and afford to eat and buy a little fuel, we are happy ! When we need a little more money, we work ! Some of ya know what that is !! Right?? I guess that what makes ya a cruiser to us, we live and work to cruise ! It's worked for us for the last 30+ Years. We don't have big retirement plans, or big bank accounts, but we sure have a lot of great memorys! How much are those worth ?? Just a couple of old cruisers 2 cents

[salticrak]

The only ''asset'' I will own of any worth is my catamaran that is near completion.

I am struggling to get over the last hurdle of getting enough funds together for registration/launching and a bit of minor wiring and cosmetic paintwork to be completed.

I should be on the water in by the end of winter.

Bob and Connie your post is music to my ears as this seems to be my path for the future.There is no way I am going to be able to afford a bit of property,and hell with so much in the way of taxes/rates being ripped out of your pocket to keep a property today i am glad not to be able to afford some land.

Luckily I have purchased a full set of sails.have made the rigging, bought the motor.Have a few solar panels.

I do hope my catamran does become an asset in life experiences for me.

[MarkSF]

I like the fact that one person has MORE than 100% in his/her boat.

[Dockhead]

Originally Posted by Paul Elliott

I think these sayings are useful, as they remind us that the initial purchase price is only the beginning. I don't mind it, but it is something a boat owner should be realistic about.

There is a power boat on a trailer that I drive past every day. The sign says "FREE!". I told my wife that we couldn't afford a free boat.

Indeed.

These sayings are actually really, really true. People who have never owned a boat are really amazed at how much money you have to spend how often. They are voracious money pits, all out of proportion to any houses (sorry Zee), and unlike houses, they have no underlying real estate which might appreciate and wipe out the cost of upkeep. "Might" -- actually, nearly always, depending on the city and neighborhood, and depending on the decade, excluding the awful 2000's.

But the nice thing is that there is nothing half so pleasant to spend your money on, other than possibly a young mistress. It gives tremendous pleasure; actually makes you want to earn more money just so you can throw it at the boat.

And of course the cost is variable, depending on how much of the work you do yourself, the complexity of the boat, etc., etc. So most people who really want to cruise can manage it one way or another, financially.

It's a bit like marriage (or having a child). Being married (or having a child) is a time, energy, and emotions pit -- sucks it all out of you, leaving no time, energy, or emotions for much of anything else (unless she shares it with you, or at least, encourages you in it). But like spending all your money on a boat, it's worth it, if there's love involved.

[jgbrown]

Originally Posted by JK n Smitty

With your free boat example, wouldn't you say the same thing about a free F150?

No.
For example the cheapest quote I got to dispose of a 25' boat with an outboard was 3k. A scrap yard will take a truck for free.

[Group9]

A boat is freedom. I don't know how you put a price on that.

[jgbrown]

Originally Posted by jgbrown

No.
For example the cheapest quote I got to dispose of a 25' boat with an outboard was 3k. A scrap yard will take a truck for free.

If you part out a truck, most of it is likely useable. Part out a boat... not so much.

I love boats, but a truck doesn't sink because of a leaky floor.
Nor require so much maintenance.

[JK n Smitty]

Originally Posted by jgbrown

No.
For example the cheapest quote I got to dispose of a 25' boat with an outboard was 3k. A scrap yard will take a truck for free.

That sounds kinda inflated to me. If it's a sailboat, the keel alone would make most take it for scrape. If it's a power boat, there typically isn't much fiberglass. A 20 yard dumpster is only $400 with one week rental. And the metal recovered would have value for recycling.

Also, we have a couple of scrape yards and a marine salvage yard that will take boats for free. But you have to get it there. Much like a scrap yard would tell you with the truck.

Most of the time when I hear people complaining about getting rid of a boat, it's usually because they want to do nothing and just have someone else deal with their problem. Or they want someone to pay them for something that has no value.

[Teknav]

...and once you earned your pilot license with seaplane rating...the amount of thrill that you'll get, is priceless too! Mauritz

[SaltyMonkey]

I'd like to know who has retirement income in this mix/\

[Sailing Cowboy]

Usually the people who said the "hole in the water line" to me were standing on the dock watching me repair something on the boat and they never owned a boat themselves or they were jaded and crusty with the one they had. Funny thing was, when i sailed away, they were no where to be found. Huh. Oh well.

[JK n Smitty]

Originally Posted by Dockhead

They are voracious money pits, all out of proportion to any houses (sorry Zee), and unlike houses, they have no underlying real estate which might appreciate and wipe out the cost of upkeep. "Might" -- actually, nearly always, depending on the city and neighborhood, and depending on the decade, excluding the awful 2000's.

It's the same math. If you don't put around 5-10% of the value of a house into upkeep and improvements, it generally won't maintain its value. Add up what you've spent on your house but make sure you've included the cost of everything, mowing your lawn, trimming the hedges, planting flowers, mulching, racking the leaves, replacing the roof, water heater, updating the kitchen and bathroom(s). And divide that by the number of years you've owned your house. Some things you do yourself to save money and you might be able to reduce the total cost closer to 5% that way. But it's the same math as on the boat.

And the appreciation of the underlining land is generally an illusion. Once adjusted for inflation, there is little gain. And many of us in our 30s and 40s are actually seeing a decrease in value



If you put 5-10% of the boats value into maintenance and upgrades each year, you won't see nearly the depreciation. The problem is that most don't want to invest this kind of money into something that is seen as a "hobby" but then want to complain when that delayed maintenance/upgrades hits them in the wallet. It was really their own doing but most can't face that. Live aboards have a different mentality about this and view it as maintaining their home.

[Autumns Wind]

I hear all the time, "the best two days of a boat owners life is the day he buys it and the day he sells it! Hhmmm, my first sailboat, I paid $1300 for a junk 29ft seafare yacht, after 2 yrs of good use and lots of hrs of work, I sold it for $4200. A hole in water ya IF YOU HAVE TO HIRE SOME ONE TO FIX YOUR BOAT EVERY TIME SOMETHING GOES WRONG. Now my house we lost 52,000 three yrs ago when the market crashed. To own a boat is total freedom, you dont think so. The next time you complain about your neighbors try to mover your house... I have no debt, no land taxes to pay, and if I dont like my neighbors, I can move my house. Now thats priceless.