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Old 08-03-2012, 16:11   #1
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Would You Do It ?

So there's been a change in my situation. My original plan was to purchase and payoff a liveaboard using a set $2400/month housing allowance I will receive. Turns out if I choose to purchase something, whether it be a house, trailer, or boat my allwoance turns into an equation. My allowance (x) is arrived at by deviding purchase price (y) by 120..... So if I bought a $120,000 boat I would receive $1000/month for payments. Financed over ten years, or 120 months, this allowance would cover my monthly payment (+ interest). Assuming I'll make 2 1/2 years (30) payments before I have to sell the boat. I'll put 30 grand into it (-interest). Meaning I can sell the boat at up to a $30,000 loss and still break even. X can equal up to $2400, however since I don't think I would qualify for a $300,000 boat loan so I'm setting a tentative limit of $150,000 untill I learn otherwise.

Here's the parameters of the vessel I'm looking for. Location, St. Thomas. Large enough for my wife and I to liveaboard (40'+), Easy enough to sale short handed (two relatively inexperienced people, cruising not racing). Well equipped enough to sale between USVI, BVI, and Puerto Rico, and should not require any repairs other than routine maintenance for three years.

So, would you do it? Do you you think it can be done without taking a loss? Do you think you could turn a profit? How much of a boat/what boat would you buy???
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Old 08-03-2012, 16:16   #2
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Re: Would You Do It?

No one should ever plan on making a profit on a boat. It does happen, but people surviving sky diving without a parachute happens too and that is more likely.
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Old 08-03-2012, 16:27   #3
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Re: Would You Do It?

don't buy a boat unless ...................... you want to own and use a boat!

PS - both my wife and I were in the Navy and our housing allowance did not cover our housing costs. So I don't really have any concern if you can not make a profit off living in the VI on my dime.
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Old 08-03-2012, 16:34   #4
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Re: Would You Do It?



Beer, check. Popcorn, check. okey dokey.
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Old 08-03-2012, 18:25   #5
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Re: Would You Do It?

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Originally Posted by Don Lucas View Post
So I don't really have any concern if you can not make a profit off living in the VI on my dime.
Well you are a kind and considerate soul.

I do want to own, and use a boat, I've wanted as long as I can remember, and this is going to be my best opportunity yet to realize a little bit of that dream. It will also be a wonderful chance for my wife and I to experience it together to know if its what we really want to plan for our future.

I'm not trying to make a profit off your dime. I'm assigned to the USVI, where they receive a DAILY cruise ship passenger influx of over 10,000 people, its not going to be an easy job. Besides, I'd be saving you money by living on a boat for $1000 a month rather than renting an apartment for over twice that- which is the alternate and what I'm authorized, its my entitlement. I work hard for my money, just like you do or did. I'm not trying to scam anyone here and I'm sorry if that's the impression that I gave. I'm just excited about the opportunity, however without much personal experience I wanted the thoughts of those who are more experienced. Like I said, I'm not trying to make money, and I'm not trying to turn a boat into an investment. I'm just thinking about the potential of living a dream for a little bit without coming out on the other side in debt.
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Old 08-03-2012, 18:42   #6
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Re: Would You Do It?

I dont think anyone got the impression you were trying to scam anyone. Where you get your money is nobody's business but yours. You DID ask what we would do.

I'm trying to save you a whole bunch of heartache by getting you to take the notion of profit out of the equation because for every example of someone making a profit on a boat, I can show you 4,000 people who lost money when they sold their boat. It would suck for it to come time to sell the boat and for you to have to write a check- which is the most likely scenario for a financed boat.

If you can buy a boat that you don't need to make a profit on, buy it and I wish you joy of it. If you can afford the maintenance and depreciation by all means do it, just go into it with your eyes open.

If you want to live a bit of the dream without coming out in debt buy a boat you can pay cash for and use your stipend, allowance or whatever for the ongoing expenses a boat requires.
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Old 08-03-2012, 18:45   #7
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Re: Would You Do It?

I bought two boats while I was in the service and lived aboard. Made money on both boats over and above the housing allowance. It was a time of high inflation though wouldn't count on just the sale of the boat to make a return. Since you'd be throwing away the housing allowance, buying a boat could make sense.

Do not buy a new boat. The depreciation as soon as you take title is a killer not counting all the things you'd add commisioning a new boat. Might look into boats coming off charter though you have to be careful with these as they have been sailed by idiots with no concern for the equipment. Either buy a boat with old sails and electronics and upgrade or get a boat with the latest and greatest. If used hard sails wear out and electronics have a time in the limelight of seconds, it seems.

Good luck with your search.
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Old 08-03-2012, 18:56   #8
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Re: Would You Do It?

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I do want to own, and use a boat, .............

Besides, I'd be saving you money by living on a boat ............
Then get a boat! Why ask for thoughts or permission?

But if you are here trying to rationalize whether you should get a boat then ............ don't! NOTHING is rational about a boat!
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Old 08-03-2012, 22:07   #9
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Re: Would You Do It?

Alright I guess I need to re-frame. What boats hold their value best, do some brands tend to be more like a toyota while another model loses value like a Kia? Does a depreciation rate of 10 thousand a year on a $120,000 dollar boat sound low, average, or high? Is there a style of boat in the Caribbean that is more sought after, that tends to have a shorter turnaround period? Roverhi, thanks for the idea of not buying new and looking into charter fleet? I know you lose a lot in value coming off the show room floor, but at what age do things typically start to level out?
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Old 08-03-2012, 22:22   #10
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Re: Would You Do It?

Best advice I have is to get familiar with yachtworld.com and look at the going rates of different models and different years of the same models. Look at how the price changes in different geographic locations. Their search functions make this easy.

Big factors for boats will also be things like currency exchange rates, which God only knows who can predict accurately on such a short time line.

Look at the models that you'd want to live on and start with those. You'll quickly see the patterns.
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Old 08-03-2012, 23:43   #11
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Re: Would You Do It?

Quote:
Originally Posted by Caribbean Bound View Post
So there's been a change in my situation. My original plan was to purchase and payoff a liveaboard using a set $2400/month housing allowance I will receive. ...
That sounds like an extremely generous allowance. That's about twice my budget while living in a high-cost-of-housing area. But then I'm (mostly) frugal and not subsidized. Wondering ... what government entity or enterprise provides such a generous housing allowance?
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Old 09-03-2012, 04:21   #12
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Re: Would You Do It?

What Target9000 said! The boats that hold their value the best tend to be older (depreciation has already occured) boats that have been well cared for and well maintained. Condition trumps name brand. Sure, some makes might be a bit more valuable but they are generally not going to be in your price range.

Get on YW, and see what you like. Find several boats that will work. Since this isn't going to be a long term boat for you, you would be smart to buy the deal, not the name brand. Get the boat in the best condition for the best price. Keep the boat in top condition, skip adding all the electronic bells and whistles (most new owners want to change them out anyway), keep the boat in immaculate condition and you are more likely to have a successful sale when the time comes.
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Old 09-03-2012, 06:55   #13
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Re: Would You Do It?

Along with the depreciation please remember that the general rule for the maintenance costs of a boat will be in the region of 10% of its purchase cost.....not value...per year! That has worked as a guideline on mine.

Do it anyway, rather than regret that you had the chance and did not do it!!
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Old 09-03-2012, 07:43   #14
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Re: Would You Do It?

Call Moorings and get a boat that just came off charter. I bet there are some charter boats that saw lighter-than-usual usage since the 2008 crash. Get a nice Beneteau 50. Two people can handle them. I solo sail a lot, with the help of a good windlass and a Doyle stack pack.

You could get any boat on the east coast of the U.S. and certainly elsewhere in the Carribean. There are members here that are professional delivery captains.

Get a good survey done, no matter what you are buying. And don't use the broker's surveyor.

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Old 09-03-2012, 07:56   #15
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Re: Would You Do It?

Pedigreed, well maintained blue water cruisers hold their value. A solid, well equipped, beautiful 40' cruiser will probably always be a hundred grand or more.
There are many examples of them and I don't type well enough to name them all even if I could remember them all.
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