Which % of saving would you spend for your cat

[riki]

Giving the fact of around 4000$ net income from different rentals, which percentage of all savings you would invest, as maximum, for boat purchase?
To keep it simple let's say that the used boat would be in good conditions and no major works to be done on it. Or nothing that can't be done personally.
Please explain your choice.
Thanx

[LoudMusic]

50% on the boat
25% on the refit
25% on the cruise

die broke.

[rabbi]

way less than 50%. Play it safe and have enough cash for mishaps or plan B.

[Attikos]

When I bought my new old boat, which was in far better than average condition for its model and age, I reserved 10% of the sum of the purchase price and known initial expenses to cover the undiscovered. I suspect virtually all aging boats have issues you're not going to find with lookovers, a survey and a sea trial. This one did. That amount was ample, though, so given the same circumstances I'd do it again.

That said, it depends. No two boats are equal. In the end you have to go on your own judgment about the condition and likely requirements of one. As in all else related to boating, there are no hard rules.

[valhalla360]

Depends a lot on how much savings you have and what lifestyle you live.

If your spending is $2000/month and you have $200k nest egg, spending a significant percentage is likely to happen but you have enough surplus monthly income that it's likely not a major concern.

If your spending is $8000/month and you have a $5million nest egg, I would come up with a different answer.

PS: Will the net rental income stay steady if you are a long distance land lord? How much will a management company cost you and do you even want the stress of knowing you can't just pop over to repair a leaky pipe or other minor issues rather than paying full retail rates?

[billknny]

<50%

First, using the word "invest" when you are buying a boat is a bad idea. You are not "investing", you are buying. Your boat is no more an "investment" than your automobile. If you think of it as an investment, you will be seriously disappointed with the rate of return, which I assure you will be significantly below 0%.

I assume your $4000 income is a monthly one, in which case it will just about cover the living and maintenance expenses if you live on the boat full time, cruise around, and keep a boat in excellent, sailable condition. There will be little or nothing left over to replenish savings, so do not draw that down.

[riki]

Appreciate the answers.....but maybe 50% is a bit too conservative?
The 4000$ mo income is net and till now never had issues, and in any case the "risk" is fractioned in 4 different rentals.
I have no debts, no mortgage no nothing and own my house so no rent to pay.
Lifestyle? I live in the mediterranean area, i like to eat well, drink well.....but got rid of all things and toys that was boiredto own, including my beloved Porsche. Just to say that indeed i have much less needs.....and what i need i already own it but i'm going simple.

[a64pilot]

I’m confused, your asking how much of your savings, but don’t say how much you have saved?

[riki]

Originally Posted by billknny

<50%

First, using the word "invest" when you are buying a boat is a bad idea. You are not "investing", you are buying. Your boat is no more an "investment" than your automobile. If you think of it as an investment, you will be seriously disappointed with the rate of return, which I assure you will be significantly below 0%.

I assume your $4000 income is a monthly one, in which case it will just about cover the living and maintenance expenses if you live on the boat full time, cruise around, and keep a boat in excellent, sailable condition. There will be little or nothing left over to replenish savings, so do not draw that down.

You are right, just an error, don't mean investing at all.

[riki]

Originally Posted by a64pilot

I’m confused, your asking how much of your savings, but don’t say how much you have saved?

I am asking the % you would spend in my situation, not a value, no need for that.

[a64pilot]

Yes there is, think logically. If you have 1,000,000 saved, well then maybe spend 50%, I wouldn’t but maybe you would.
If you have 100,000 saved, I wouldn’t spend any of it, cause that’s not enough cushion for me.
I assume you won’t be working anymore and the rental income is all there is? Cause that matters too.
Plus, I don’t know why being a Cat is relevant, unless they cost way more to maintain or something?

[riki]

Originally Posted by a64pilot

Yes there is, think logically. If you have 1,000,000 saved, well then maybe spend 50%, I wouldn’t but maybe you would.
If you have 100,000 saved, I wouldn’t spend any of it, cause that’s not enough cushion for me.
I assume you won’t be working anymore and the rental income is all there is? Cause that matters too.
Plus, I don’t know why being a Cat is relevant, unless they cost way more to maintain or something?

I get your point.
Nope, i am at light-years from 1M
But you nailed it, after some real estate investments my savings are around 100k, maybe something more....120k.....i always had a top limit price for the cat (i like cats, i have also one right now sitting on my feet ) of 70/80k just to have that cushion you mentioned. But i like to hear other's opinions, maybe i could spend somethingmore......maybe i'm wrong...
In my area maintainance is very cheap (and i would perform at least part of it) an mooring almost free thank to some friends.

[sailorboy1]

Originally Posted by riki

Giving the fact of around 4000$ net income from different rentals, which percentage of all savings you would invest, as maximum, for boat purchase?
To keep it simple let's say that the used boat would be in good conditions and no major works to be done on it. Or nothing that can't be done personally.
Please explain your choice.
Thanx

I'm confused as to the question. Ifit really is "I have $4000/mo income how much can I figure of that to make boat payment in order to cruise"

my answer is $500 or less

that leaves you with $3500 in general to cruise on and maintain you boat, which will mostly work out if you are willing to do without eating out and entertainment a few months/year

of course I have no basis for these number

[riki]

Originally Posted by sailorboy1

I'm confused as to the question. Ifit really is "I have $4000/mo income how much can I figure of that to make boat payment in order to cruise"

my answer is $500 or less

that leaves you with $3500 in general to cruise on and maintain you boat, which will mostly work out if you are willing to do without eating out and entertainment a few months/year

of course I have no basis for these number

No, 4000 it's my monthly income, not my savings

[sailorboy1]

Originally Posted by riki

No, 4000 it's my monthly income, not my savings

I assumed that and that's what I wrote on my reply. IMO you will spend almost all of that $4k/mo cruising if it is available. So far as your savings it is all about how much are willing to have for cushion.

What you are really asking is a cruising style and boat niceness level question.

Only you can decide that. There are people here ranging from Millionaires to those living on disability, each is going to have a widely different answer.