Originally Posted by Mike OReilly
Is there any actual data to support this Jim/Robert? I'm not doubting you, but personal perspectives usually suffer from self-selecting bias. If this really is the case, then it begs the question: why? What's going on? I suspect the answer relates to the economic squeeze the middle class has faced since the mid-1970s, but maybe there's something else at play (like the shift to different kinds of play).
Mike, I have a theory that our situation might explain this.
Twenty years ago, couples with our kind of income
would have considered buying
a beach house or holiday home of some sort. But now, holdiay houses have become prohibitively expensive, partly due to the shift in distribution of income
but mostly (in Australia) because of self funded retirees buying
up the available properties and flocking to the nice bits of Oz.
So, I suspect we might be the start of a new wave of people buying boats as a kind of cheap
holiday house. And before anyone points out the obvious flaw in THAT logic (Boat = cheap
?) I have crunched the numbers and its a no brainer for us. Even IF we were to buy a holiday house and have it appreciate in value on par with recent trend in Australia
, the cost of servicing the debt would negate all capital gain, and far outweigh the cost of keeping an older boat
on a pen near home. As much as I grumble about the costs involved (factor in $8K per year to keep the boat
, floating, serviceable and insured, in a pen, in a yacht club), it's nothing to the cost and risks of buying a mediocre holiday house in South Australia
for around $300K and servicing the associated costs.