Want To Buy: Owner Financed Catamaran? - And some advice

[Therapi]

Seabbatical Long Term Bareboat Yacht Charter - BVI Bareboat Charters

[Bulawayo]

........and therein lies the dilemma. Many of us have the dream but the reality can be so different. Sailing and anchoring for the night is so different to long term live aboard. How many families have spent 24/7 with each other without interaction with third parties? That just does not happen in more conventional land based circumstances. In my situation it made us a stronger family, but I have seen many couples separate for this reason. Unfortunately, there is only one way to determine this. Of course, if you sail in the islands only, or in the Med then this may not arise.
By sticking to the islands etc initially, it can bring about the necessary understandings and learnings that glue a family together as a unit, provide total familarity with the boat, and enable everyone to understand what to expect for long off-shore passages.

Originally Posted by bergmd

Thank you everyone for the advice! I've lived on a boat before but the real question is how the wife and kids will adapt. I want to make sure it's everyone dream, not just mine. I've tried to be very candid with them about the day to day life (as little as I know).

[Zven]

Originally Posted by bergmd

If we wait another year we can have $200-300k. Not sure if it's worth saving or financing. I'm afraid that waiting will lead to us spending the money on a vacation home or something..

I would like to question this particular part.

All of the information and advice so far seems to indicate that the best course of action will be to spend the next year wisely: Saving money of course, while also taking classes, checking out various boats, reading a lot, talking to people with experience, studying maps, perhaps testing the dream by way of chartering, etc etc. In other words: get ready.

If the OP is afraid they will not be able to keep focus and save and prepare for one year.... then how are they going to manage the next, far more demanding part? Living aboard full time comes with all sorts of challenges... A boat needs constant attention and maintenance, internet and other infrastructure is unreliable, home schooling responsibilities will come on top, etc. That is before they even set sail and go places.

[sailpower]

You are asking an owner to trust that you will pay.

You want the owner to finance because if you started saving you might spend the money on something else?

What lender/owner would want to deal with that level of instability?

It sounds like you make enough money and you have additional collateral to qualify for a bank loan which would most likely have a lower rate than a FISBO loan.

Something doesn't add up. I'm assuming that it is what you make is not reflected on your 1040? If that is the case than an owner, like a banker, would just have to take your word for it. Not very likely.

The concept that you would be helping an owner by driving his boat off in to the sunset leaving him holding an IOU is unrealistic.

Sorry.

Sounds like you need to rethink this approach.

[TrentePieds]

bergmd:

Quote: "I've tried to be very candid with [my family]..."

You will understand, then, why we have been very candid with you!

All the best.

TP

[Cadence]

Originally Posted by TrentePieds

bergmd:

Quote: "I've tried to be very candid with [my family]..."

You will understand, then, why we have been very candid with you!

All the best.

TP

TP,

A great comment.

[boatman61]

Then there's that other rule..
Don't spend more than you can afford to lose painlessly.
Nothing worse than grafting to pay for something you do not have anymore..
Blub, blub, blub....
Thats the sound of a sinking boat and your tears...

[hydelotter]

Hi
I have cruised on and off for 30 years. My son grew up on several of the boats I have owned.
I currently have a 43 foot catamaran for sale.
send me an email address so I can contact you.
Regards Hyde

[valhalla360]

Originally Posted by boatman61

Then there's that other rule..
Don't spend more than you can afford to lose painlessly.
Nothing worse than grafting to pay for something you do not have anymore..
Blub, blub, blub....
Thats the sound of a sinking boat and your tears...

It really doesn't matter if he gets a loan or pays cash. With a loan, you still owe the money if the boat goes down.

If he's really making $200k/yr, no bankruptcy court is going to let him get out of it unless there is a lot of other debt we haven't been told about.

[danielamartindm]

You're correct that you are too young to be touching your 401k's. With your present incomes, you should certainly be able to service a boat loan, and write off the interest on it. Even though you may be showing little net income on your income tax returns, you might still negotiate a loan if you can document with a P&L to a lender that your tax returns, while legal and consonant with tax law, do not accurately reflect your monthly disposable income for servicing the loan for which you are applying. Having a general idea of the model, year, and cost of the cat you are looking to buy would put you way ahead of the curve at this point too. I applaud you for decision to home school your children; they'll benefit greatly, and be spared the leftist indoctrination that is integrally woven into a public education in America today. Good luck, and fair winds.

[boatman61]

Originally Posted by valhalla360

It really doesn't matter if he gets a loan or pays cash. With a loan, you still owe the money if the boat goes down.

If he's really making $200k/yr, no bankruptcy court is going to let him get out of it unless there is a lot of other debt we haven't been told about.

I know he will still owe the money.. thats my point.
I just remember some folks I knew in the Med who sold up in the UK and invested 90% into a boat.. 6mths in during a storm two planks broke loose at the bow.. the boat went down in a couple of minutes..
They lost everything including their sociable parrot and the dog.. last I heard they were trying to get a new start back in the UK living in a small rented studio.. not easy at 60 and 58yrs of age.
Dreams can turn to nightmares all to easy.. a fact dreamers dont get.

[ausaviator]

Assuming that the $250k is post tax, I would strip down the budget and sock away $100-150k, so you have a cash $150-200k and then start looking at used boats in the 38-42' range. That should be doable inside of a year.

That's the funniest thing I've read all year.

[valhalla360]

Originally Posted by ausaviator

That's the funniest thing I've read all year.

What's funny about it?
- OP told us his income was over $250k.
- OP indicated he only had $50k in savings to play with so presumably the current budget is spending the vast majority.
- You can find boats in the $150-200k range on the used market.

Heck even if it's pre-tax, he should have a net income pushing around $200k and should still be able to set aside $100k if he is actually serious about the plan.

[ausaviator]

Originally Posted by valhalla360

What's funny about it?
- OP told us his income was over $250k.
- OP indicated he only had $50k in savings to play with so presumably the current budget is spending the vast majority.
- You can find boats in the $150-200k range on the used market.

Heck even if it's pre-tax, he should have a net income pushing around $200k and should still be able to set aside $100k if he is actually serious about the plan.

For starters, I've never heard anyone quote their post tax income before, but hey, it's possible.

Set aside $100k in a year? Do you have two young kids and live in a big city or know what it costs to do so?

If the OP could save $100k in a year with a salary of $250k, he would be a rich man as he would be travelling the world telling people how to do the same in motivational type lectures!!!

[valhalla360]

Originally Posted by ausaviator

For starters, I've never heard anyone quote their post tax income before, but hey, it's possible.
Go read the first post. The OP provided the income there. So not only possible, already done before you asked the question.

Set aside $100k in a year? Do you have two young kids and live in a big city or know what it costs to do so?
The OP indicated they already work remotely and will presumably switch to home schooling when the move onto the boat. No reason to live in an expensive area and kids don't cost that much. The average family does it on $50k/yr, so leaving $100-150k to maintain a lifestyle should be easy while socking away $100k.

If the OP could save $100k in a year with a salary of $250k, he would be a rich man as he would be travelling the world telling people how to do the same in motivational type lectures!!!

If he's making $250k/yr and can't save $100k/yr, he needs to take a basic budgeting class. This should be easy. If he was putting away $200k/yr out of $250k/yr I would be impressed.

So still waiting on the funny part?