Buy now, or buy later?

[onavegador]

Buy later. So you do not have the cost for a berth and no maintenance. But have look at the market it may change more to a buyers market when the economy goes down again.

[picklesandjesse]

Buy now, who can predict the future ?? Lots can and will happen. Life is short and getting shorter for us all.

[Madwand]

Your profile says you live in Florida. Consider that for the next five to seven years you will have the threat of the boat being destroyed buy a hurricane for five months of each year that it's it's in a marina in Florida. For every season you are in a hurricane zone you will be two to three days notice from having to move that boat to a safe place.

[Hamish_ct]

Boats are a depreciating asset. In addition, everyone thinks that the technology will be so much more advanced in the future. The reality is the boats themselves haven't really changed much, only the electronics, sails and other replaceable effects have and will.

My opinion, start looking but also take your theoretical loan payment and throw it into savings for 4 yrs. Or so. Build up your cash reserve. You have time to be really picky so start kicking tires, when you see what you want you'll pull the trigger, with less debt. Good luck on your search.

[valhalla360]

Originally Posted by MNGator

Great replies, thanks! My heart wants to buy now, but if I do that, it will be my cruising boat. If I buy now, yes it will be financed, as would a house, both on ten year notes. I work out of the house, so as long as I have good internet, and access to a major airport, I can live anywhere. However, I do believe that the boat would be more expensive overall.

Not only would I have the loan to pay off (at higher interest rate than home mortgage), but would have marina fees as well. Maintenance on a boat is probably higher than a house and insurance, property taxes and tax implications point to land.

My plan would be pay cash if I wait, the advantage would be getting a boat that is new today. I am also thinking with the increasing popularity of cats, there will be a lot of used boats on the market in ten years. The advantage of buying now is I get to live on a boat! I would also be able to get some sailing in, but not nearly enough. I'm going to look into marina fees and estimate annual maintenance so I will have a better feel on the finances of each option. Will post a spreadsheet for comment.

If the plan is to buy and finance a house, I would be surprised if there is any savings on the house option. At best you will be trading some minor appreciation on the house for several years where you don't get to go weekend cruising.

Again, break out the spreadsheet and add up the costs. I'm betting it's pretty close to a wash when you add property taxes and maintenance on the house.

PS: As far as hurricanes, they can take out boats and homes. Keep either insured and have a plan. Then there's really no difference.

PPS: Homes are depreciating assets also unless you dump a lot of money into them to do upgrades. A house with a 1950's kitchen will be worth a lot less than a 1990's kitchen because buyers will expect to redo it. The land can appreciate but it's not much when all is said and done (buying in a hot market being the exception but hot markets can deflate just as easily)

[Octopussy]

Have you owned or sailed boats in the 40-45 foot range before? dealt with navigating, maintenance, sailing a boat of that size?

If so, then wait.

If not, then you need to buy something sooner, and live aboard and sail local waters.... or purchase an interim boat in the 35-40 ft range, and own it for a few years.

Why do I say this?

1. If you don't have the navigation skills, and boat-handling skills, walking onto a 40-45 ft catamaran as your first boat is a recipe for disaster.

2. You don't just buy a boat and sail away. We rebuilt our entire boat; we took a bare hull and installed new plumbing, electric, heads, galley, all new electronics, new standing/running rigging.... list goes on. I mention this to highlight the fact that we do boat maintenance every day. We're out cruising now, and we always are fixing and maintaining stuff. We only KNOW how to do it because we spent three years rebuilding the boat and learning HOW to FIX $H^T. And you can't learn it all from *just* reading books.

3. INSURANCE. Getting insurance to ply the oceans of the world doesn't *just* happen. You typically need to show a history of boat ownership, and sailing credentials. SO, it might be hard for you to purchase a boat in 10 years and just sail away. Especially in the 40-45 ft range (based on your answer to my first question)... if you need/want it to be insured. *Just something to consider*


Hope it helps!

Cheers,
O

-------------------
Follow the adventure at Live Free or Die Sailing...The not-so secret missions of S/V Octopussy

[Madwand]

Originally Posted by valhalla360

PS: As far as hurricanes, they can take out boats and homes. Keep either insured and have a plan. Then there's really no difference.

There's a big difference between a house on the ground and a boat in the water, that's just ridiculous. BoatUS doesn't charge me twice my house insurance to insure my $20,000 boat because there's no difference.

[geoleo]

Originally Posted by skipmac

Your profile says Winter Park FL. If you plan to keep the boat in FL then you will save on taxes. No property tax on boats. Other tax implications? Well if you declare the boat as your primary residence I believe you can still deduct the interest from your income tax like a land based home. Also if your work at home (I do also) you can factor that in on a boat as well as a house. Just be careful either way on this as the IRS is pretty persnickety about home office (land or boat) deductions. My accountant gets credit for this but using a different method of writeoff.

Marina costs will hugely depend on where in FL. The further south on the east coast the more expensive. JAX a lot cheaper and pretty good airport access although not my favorite metro area. Tampa/St Pete also not bad if you want the FL west coast. Panhandle even better options. Central FL, Titusville, Indian River, St Johns River the cheapest marina costs.

Looking at your situation there are some good arguments for buying a boat now. Do consider insurance however. If you stay in FL all year you will have to pay a premium for being here over hurricane season.

Skip
GNV Gator

Excellent well balanced advice!

[valhalla360]

Originally Posted by Madwand

There's a big difference between a house on the ground and a boat in the water, that's just ridiculous. BoatUS doesn't charge me twice my house insurance to insure my $20,000 boat because there's no difference.

Assuming the OP isn't foolish, he will have arranged for haul out in the even of a hurricane and worst case his insurance should cover it.

By having a house and a boat, you are a much bigger risk on the boat as they know you will secure the boat first and then maybe do something about the boat. Then again, the boat insurance was higher than our home insurance in Michigan where there isn't a lot of hurricane risk.

I stand by my point that it's a wash in the end. Either option is at risk during a hurricane.

[Madwand]

Originally Posted by valhalla360

Assuming the OP isn't foolish, he will have arranged for haul out in the even of a hurricane and worst case his insurance should cover it.

Assuming there's haulout facilities near him. There's none near me, boats got to be tied sideways in a bayou. Even if there is, there's a $1,000 expense.

Have you ever arranged for a haulout for a hurricane? It ain't like getting your oil changed in your car. Then the boat's got to be stripped of everything above deck, hauled out or not.

Oh, well, if insurance covers it, who cares then?

[valhalla360]

Originally Posted by Madwand

Assuming there's haulout facilities near him. There's none near me, boats got to be tied sideways in a bayou. Even if there is, there's a $1,000 expense.

Have you ever arranged for a haulout for a hurricane? It ain't like getting your oil changed in your car. Then the boat's got to be stripped of everything above deck, hauled out or not.

Oh, well, if insurance covers it, who cares then?

Yeah, I've stripped the boat for a storm. It's less work than boarding up a house. In Florida, they offer haul out contracts for hurricanes, 99% of florida within a days travel, you should be able to find a haul out...it's called pre-planning and again without a house to worry about you can more easily take action earlier.

Any yes, in the end...if insurance covers it, it's not the end of the world.

[Madwand]

He said he wouldn't be living on it.

[valhalla360]

Originally Posted by Madwand

He said he wouldn't be living on it.

Here's the original question:

The question I have is would it be better to buy the boat now and use it as a liveaboard at a marina until I am ready to cast off or wait until I am closer to being able to leave to buy the boat?

Sure sounds like he would be living aboard if he buy a boat.

[Madwand]

Oh, I thought he said, meaning he wouldn't be living on it, but you're right.

Originally Posted by MNGator

I wouldn't use it for much more than weekend sailing in the meantime, wouldn't have the time take it on any extended voyages.

[SV Bacchus]

The Wynns, blog Gone with the Wynns, bought at Leopard 43 in SE Fl with zero sailing experience. Took appropriate courses, sailed with a captain for a week and had no trouble finding insurance at a reasonable rate. Then they found they could add hurricane insurance for $200 a year and not have the hassle of fleeing north or south of the hurricane belt.

Shop prudently, it can be done.

Hamish_ct posted above:

My opinion, start looking but also take your theoretical loan payment and throw it into savings for 4 yrs. Or so. Build up your cash reserve. You have time to be really picky so start kicking tires, when you see what you want you'll pull the trigger, with less debt. Good luck on your search.

That seems like a great compromise! In the meantime take lessons and start sailing with a club or volunteering to help crew for races. Build up your skills and go sailing on the weekends on somebody else's dime.