Financing Older vs Newer Boat - Eventual Depreciation

[Joli]

You can write off the interest on a boat just as you do a second home.

In the midwest the housing market has collapsed with no end is in sight. I think today it is probably a better investment to live aboard and rent in the winter then it is too own a home. It is very easy to spend $2k per month to own a modest home and then when you factor in the loss 2-7% per year on homes here it really makes sense. In our area we can rent a fully furnished condo for $550/month with all utilities included and live aboard in the summer. Slip fees for a 45 footer will be around $3k and winter storage is aboult half that if the boat is stored outside.

If you buy an older boat in good condition depreciation will not be a factor (it has already depreciated), maintanence can be large depending on how the boat has been upgraded and maintaned. If you look around you will find many good buys out there though.

We figure our annual maintanance cost to be 1-2% of new repalcement cost. If you buy a 50 footer that sells new for $550k then figure $5 to $11k per year to maintain. Understand, the spending may not be linear, you could have 4 years at $2k and one year at $27k. Of course many itmes requiring big bucks can be put off if they are not structural or safety related. The $500/foot deck repainting does not need to be done if yo do not have the money. We bought an older boat 7 years ago and have spent 3.5% for 3 of those years upgrading propulsion, genertion, rigging, intrumentation, and cosmetics. We are now enjoying spending less then .5% on maintenance and figure we will spend that percent for the next 5 years.

I would also have a tough time spending $800k in Maryland buying a 2400 sq ft home and would look at living aboard.

Good luck.

[dcstrng]

You’ve correctly termed it an adventure – and, in that light, I’d echo what someone else already said; “which boat do you want…” I might refine that a tad; however, as I’d recommend you ask which boat do your want to escape in… Having spent a modest amount of time and frustration on both ends of that spectrum, I’ll postulate that good dock-side liveaboard vessels aren’t necessarily the same one you’ll want to take off in (and you’ll maintain a boat whose nightly task is providing mid-city air-conditioned comfort than one used primarily for following the trades…), but, ultimate circumstances may dictate that either it’s the one you’ll have to use, or not go at all… in my case, it turned out to be the later…

If given a choice, a boat should be purchased as a boat first (with all the seamanship, seaworthy considerations that countenances…) and as a house, a distant second… Who was it that said that houses were simply poorly designed boats, hopelessly aground… having spent a bit of time in the liveaboard community (when it wasn’t quite so expensive and restrictive as it is these days), my observation is that many liveaboard vessels take on many of the trappings of that house… and under anything less than ideal circumstances, the owner never makes the voyage they dreamed of… I’d get the one you want to sail in and that fits your situation, as if you were leaving in six months…

My $.02

[jzk]

I saw a 2000 Beneteau 50 listed for $149k

[frankdeegan]

Great News folks.....we have bought our 2nd boat yesterday moody 35, were also going to buy an half acre of land somewhere in the Aegean sea or Greece, we are thinking of building a winter home their (log cabin) you can build one of these for about 5k (Euro) which would be totally self sufficient i.e. 12 volt power inside. we have to be able to moor to boat their also. We won't sell our house "yet" give it a year or so to see if this will suit the Admiral. As some of you will know from other posts from me, were going to try an (Diddly Idilly Irish traditional music charter business) we'll get the musician's and get them the gigs around the Med.
Any thoughts on this project.......
Frank