Here is another unusual aspect of the cash for a boat issue. We never anticipated this problem.
We are quite well off. Our fixed income
from Social Security
and Pensions more than pays all our expenses. We paid off our boat before we left to cruise
. We've had no loans or debt of any kind for years. We pay our credit card bills in full each month. We don't need to withdraw any money from our substantial IRAs and other investments.
And, we are having trouble with getting a home loan because we've been cash consumers for the last 16-years. We have no credit history as far as current lending goes.
We've had the same two credit cards for over 35-years with never a late or missed payment. We've had the same checking account for more than 40-years. We've bought and sold six homes, two boats, and a dozen cars and motorcycles in the last 50-years. But none of that counts because WE DECIDED TO BE CASH CONSUMERS when we decided to go cruising in 2000.
The fact that our investments exceed our anticipated expenses by an order of magnitude means nothing because we haven't borrowed any money from anyone since 2000.
Take out a loan for the boat, keep your credit history
(loan payments) current
so that when you do want to borrow money you will have the history to support your request for credit.
Our mortgage broker has suggested we buy a car and take out a loan for it. We need to borrow money, go into debt, and decrease our net worth to prove to the the banks/lenders we know how to be credit consumers.
No Debt with a high net worth is only good if you plan to pay cash for everything in the future.
Seems ODD to me!