I am being told that Liveaboard Boats loans are now impossible

[ianjoub]

Originally Posted by Capt Phil

This entire scam is going to come to a shuddering halt at some point and those who hold gold or tradeable hard assets like food, ammo and firearms will be the only ones able to sustain life. Tragic but true and it will hit world wide, unfortunately.

:lol:

My wife and I own real estate, physical silver in a safe, not with a bank, 6 months worth of food stores, and roughly 10k rounds of ammo in various calibers, and the tools needed to use them

Sage advice.

[ianjoub]

Originally Posted by TacomaSailor

I think I got the answer here I needed - we must develop a shore side residential presence in order to qualify for a loan. WHO KNEW?

Warning: self serving plug....

I can sell you a mobile home on its own land with a well and septic (no water and sewer fees) for $25k .... many to choose from, here on the nature coast of FL. Also to note, St. Pete/ Tampa is apparently a great place to sail out of

[Greenhand]

Originally Posted by TacomaSailor

Those of you who are suggesting we pay cash - do you have any idea what the tax brackets are above $150,00?

28% from $148,851 to $226,850 ($21,840 tax)
33% from $226,851 to $405,100 ($58,823 tax)

We only pay a 15% rate now and I sure do not want to pay MORE than DOUBLE our current tax rate (33% compared to 15%) just so we can own a bigger boat. Our current boat is perfectly acceptable if buying the new boat means we pay an additional $65,000 or so tax.

Wait, what? What does income tax have to do with how you finance your boat?

[johnmcntsh]

Re: I am being told that Liveaboard Boats loans are now impossible
Quote:
Originally Posted by Capt Phil View Post
This entire scam is going to come to a shuddering halt at some point and those who hold gold or tradeable hard assets like food, ammo and firearms will be the only ones able to sustain life. Tragic but true and it will hit world wide, unfortunately.
:lol:

My wife and I own real estate, physical silver in a safe, not with a bank, 6 months worth of food stores, and roughly 10k rounds of ammo in various calibers, and the tools needed to use them

Sage advice.



What a bunch of of nonsense!!!

[ianjoub]

Originally Posted by Greenhand

Wait, what? What does income tax have to do with how you finance your boat?

If you pull cash out of retirement funds, they are taxable income....

[ianjoub]

Originally Posted by johnmcntsh

What a bunch of of nonsense!!!

Yes, keep your head stuck in the sand. I don't feel the need to enlighten/save anyone anymore.

[Palarran]

Originally Posted by TacomaSailor

Those of you who are suggesting we pay cash - do you have any idea what the tax brackets are above $150,00?

28% from $148,851 to $226,850 ($21,840 tax)
33% from $226,851 to $405,100 ($58,823 tax)

We only pay a 15% rate now and I sure do not want to pay MORE than DOUBLE our current tax rate (33% compared to 15%) just so we can own a bigger boat. Our current boat is perfectly acceptable if buying the new boat means we pay an additional $65,000 or so tax.

Yes, most of us probably know what tax brackets are. That has no bearing on paying for an asset with cash or borrowing for it though. What I think you are trying to illustrate is that your income is from capital gains, which currently are at 15%, verses regular income at whatever higher rate applies.

If you have stock you don't want to sell in order to buy the boat you usually can assign it to the bank as collateral. But they will apply a really big discount to the stock because as we have seen, the market could make it worthless in the future. I think it is best for movable assets like boats to make owners pay in cash.

[Mark1977]

Tac.... from this and your other threads, I don't think the banks want to loan you any money.

[Kenomac]

Paying cash in your situation is the only way. Banks are not allowed by the rules to make collateral loans on assets which can basically sail away, and leave the country... For obvious reasons.

[Sailor Bob 350]

I was told by one boat loan broker that lending for liveaboard requires that the lender process it as a home loan, not a boat loan, including HUD disclosures, etc. Most boat lenders don't have the expertise or interest in doing that. So they decline.

One broker told me that there is one boat lender that does do it, but I'll be damned if I can remember which one. But I'm sure if you ask around you will find them.

[Pau Hana]

Originally Posted by ianjoub

If it is all true when one signs the mortgage, then there is no fraud. One may then divest himself of all that crap after the fact.

Correct. We insure hundreds of liveaboards that moved onboard after their loan closed, and there has not been 1 incident of drama regarding the bank calling the note.

[Pau Hana]

Also, many credit unions lend on the borrower more so than the use of the collateral.

[TacomaSailor]

Originally Posted by Pau Hana

Also, many credit unions lend on the borrower more so than the use of the collateral.

We talked to my wife's credit union.

33 year history with them
they have financed a house, boat, two cars for us

They said there is no way they would ever consider financing a live aboard boat. They confirmed what others have told me - no marine loans unless there is a shore side residence with a 6-month history behind it.

Our nice boat that we live on now is looking better and better!

[weavis]

Originally Posted by TacomaSailor

We talked to my wife's credit union.

33 year history with them
they have financed a house, boat, two cars for us

They said there is no way they would ever consider financing a live aboard boat. They confirmed what others have told me - no marine loans unless there is a shore side residence with a 6-month history behind it.

Our nice boat that we live on now is looking better and better!

I am not understanding why you keep mentioning 'history, good credit rating, good debt servicing' when that is merely an additional item to be looking at AFTER evaluating the security for the loan.

If you wanted to borrow $200K from me, I would hold the papers on a property with an established return that I am reasonably sure of by market value. I would make sure that you had equity in it so my loan to you would immediately reap return of the loan if you defaulted. I would not lend money to someone who had the ability to sail out of territorial waters in the very item I had paid for! Given that the sole means of communication and address held for the borrower would be "my boat", I would be negligent to myself and anyone who invested with me.

You stated that you would open a bank account and place the full amount of the borrowed money into it to secure the loan. I am assuming that would be cash, and not a promisory note. If its a note, forget it..... and if you have cash then invest in yourself and not borrow from anyone.

I understand that we all want the best return on what monies we have. However, at some stage, we have to realise that everyone else does too, and as you are the supplicator in this scenario...... your history, your reliability and your abilities are not worth spit compared to a rock iron certainty of a return against a viable asset.

Last year I nearly borrowed for a boat. A lovely boat. It would be secured against a property. After sleepless nights, I did not go through with it. I reasoned that if I wanted to be a liveaboard then I should accept that a boat is a depreciating asset, and that my land home was not. If something went wrong, then I would lose both.

So now right or wrong, I pay cash only or would borrow a very small amount that I could cover immediately in the event of a cluster frap. The reality is that a lot of boat repossessions go on all the time.

This is not any reflection or advice to you as regards your financial acumen or situation. You must do what you feel is best. I hate banks with a passion simply because it is a no win situation. Its their game, their refereree and their punishments.
buggers.

[Ex-Calif]

TS - Take a longer view. Sell the boat you have now. Put proceeds in bank. Move into apartment for 6 months.

Apply for signature loan from 33 year credit union. Add to proceeds above. Withdraw balance from investments and pay the 15% on that...

Or, like you said, a 40 foot boat is a pretty nice place to live...