Sailing in recession ?

[bobnlesley]

Originally Posted by Island Time O25

...Unless one is a hardcore 24/7 liveaboard/cruiser a boat is a hobby. Not an investment nor a business, just a hobby.

I have to disagree, you should especially hold to a 'write it off' or at the very least 'don't count on it' valuation if your plan's to become a full-term cruiser. Over fifteen years I have lost count of the number of liveaboard/cruisers that we've met living on tired boats, anchored in quiet/cheap corners of the world who are no longer physically capable or more often mentally interested in continuing with the adventure.
Sadly their 'grand plan' was based on the eventual sale of their boat for at least what they paid for it funding in part or whole, the purchase of somewhere to retire to ashore; I'm not sure if that plan ever worked, but it certainly doesn't in the 21st Century:
Your boat's value will steadily dwindle and that value reduction is often exacerbated by having purchased it at home in the affluent/well populated/real world at the upwind end of one of the world's 'cruising routes' then looking to sell in the boondocks at the downwind end. Even without considering currency fluctuations and such, any like-for-like boat is worth and will cost substantially more to buy in the US/Canada/Northern Europe?Australia than you'll get for it in Trinidad, Mexico, the Pacific islands, South east Asia, or the eastern Mediterranean.

[Chalifour]

Sailing and economy simply don’t go together! If you sell you ship to buy another one in a depressed currency you are likely to loose money on your current ship but you will make up on the next boat by way of an equally depressed purchase price. The principle will also applied in an inflated market. You sell high but you equally buy at a higher price, right!
If you’re in the market to purchase your first boat or sell your last ship then you may be hit In a way almost impossible to forecast.
So if you’re worried about the Euro than stay in your country and hope that the USD doesn’t get hit. But then again with the current domestic and international term oil conveyed by your current man, you’re flipping a coin!
Meanwhile remember, sailing is the best antidote to anxiety!
Cheers!

[picklesandjesse]

Originally Posted by mikedefieslife

Are you talking about sailing/travelling or investing?

Buying a boat is no more an investment than buying a bicycle. It's bought for you to enjoy/consume.

No way consume. Too much epoxy for me. The Kauri wood maybe. There was someone once that ate an engine.... very slowly, think that was about 40 years ago.

Just checked, he ate a Cessna 150, took him 4 years. He was French so not crazy !!!

[Simi 60]

Originally Posted by daletournier

.

Then again a boat is never a asset financially, it's always a liability, if you can afford a paper hit then it doesn't matter.

Never say never

It can be if you buy cheap and then actually use it and compare its overall cost to what comparable comfort level waterfront property would cost you will most likely end up miles in front on a boat

[Simi 60]

Originally Posted by chakil

Ass hats are everywhere

Concentration of ass hats to water is very high in some areas.
In other areas you don't see them for weeks at a time.

[captlloyd]

Originally Posted by danielamartindm

The American economy is booming right now, though you won't hear news of it in the drive-by media. If you think that the Left will prevail in undermining America, then you'll likely be waiting for asset prices (like yachts) to crash before buying.

You are absolutely right, booming for everyone except the poor and middle class.

[elandra65]

There is a reason why so few accountants own boats!

I doubt whether the usd will be the dominant currency for long in anycase

Andrew

[AKA-None]

Originally Posted by boatman61

Recession.. Boom.. makes no difference with boats one should only spend what one can afford to lose without pain and tears.

Exactly. Are you sailing or trying to invest. For me it was all about sailing and how much could I afford to lose if I ended up not enjoying it.

So far it’s still about sailing.

[Simi 60]

Originally Posted by captlloyd

You are absolutely right, booming for everyone except the poor and middle class.

Is there still a middle class?
They are all but wiped out aren't they?

[Kenomac]

Originally Posted by bobnlesley

No ideas or opinions to offer whatsoever. A major reason for our buying a boat and sailing away was to stop having to spend my days thinking or caring about sh1t like that and I'm prepared to bet that I'm not the only one. Oh and it worked

I stopped watching the news four years ago and couldn’t be happier. Beginning this May, I’m 9 months per year on the boat, and the year after that 10 months. i agree with you 100%

[CapnBazza]

Originally Posted by chakil

And if things go wrong in Europe as it is now, euro will depreciate, same for china even its the case for US. Usd is the king unless they go for QE which is not forseen for near future. In the scenario would you go and buy a boat at 1,13eurusd?
If you will you better wait for Macron gap which is at 1,07 and brexit no deal 1,05 and a frexit for 1,03 and another qe from ECB for 0,95 and end of Eu for 0,88.
If I am going to buy a boat I wont make a deal before 1,05.
Just my two cents.

You’re worried about Europe and Trump is your President? You should go sailing, you need it.

[daletournier]

Originally Posted by AKA-None

Exactly. Are you sailing or trying to invest. For me it was all about sailing and how much could I afford to lose if I ended up not enjoying it.

So far it’s still about sailing.

I'm sailing, have been for a decade and I'm investing, I'm not sure how you separate the two? money's needed to cruise therefore the head in the sand mentality some mention here seems naive to me.
Separating the boat from finances seems illogical to me as well, I know I have quite a whack tied up in my boat, certainly wouldn't say I can afford to lose it? don't really get it when people say that.
I cruise as an alternative to the rat race BUT one benefit it gives me is the time to peer in at that rat race and manoeuvre correctly (I hope) to take advantage of the environment.

[Blaine]

The best advice I've been given is to buy quality, and I've seen how well that works. In a recession/depression, everything will take a hit, but vessels (and most everything else) that are well built with a quality reputation will hold their value far better than those that were bargains even in the best of times. (That and of course storing some gold in your keel...)

[Paul L]

Originally Posted by daletournier

I'm sailing, have been for a decade and I'm investing, I'm not sure how you separate the two? money's needed to cruise therefore the head in the sand mentality some mention here seems naive to me.
Separating the boat from finances seems illogical to me as well, I know I have quite a whack tied up in my boat, certainly wouldn't say I can afford to lose it? don't really get it when people say that.
I cruise as an alternative to the rat race BUT one benefit it gives me is the time to peer in at that rat race and manoeuvre correctly (I hope) to take advantage of the environment.

Dale
Certainly taking a wholistic approach to your finances makes the most sense. But I'm pretty sure you don't consider your boat as a financial investment likely to offer a positive return. I'm happy if I can sell a boat for close to what I paid for it. This means I'd loose the transaction costs and the significant costs to keep the boat in top shape over the ownership years.

[daletournier]

Originally Posted by Paul L

Dale
Certainly taking a wholistic approach to your finances makes the most sense. But I'm pretty sure you don't consider your boat as a financial investment likely to offer a positive return. I'm happy if I can sell a boat for close to what I paid for it. This means I'd loose the transaction costs and the significant costs to keep the boat in top shape over the ownership years.

Hi Paul,absolutely i agree. Very rarely does a boat offer a positive financial return although I do try to limit loss by purchasing right. The point Im trying to make is a boat is part of our financial world.

An eg is my own boat, I could've purchased elsewhere at the time other than my home Australia, I was overseas yet choose to fly back. The exchange rate made it more viable purchasing at home in my own currency and then sail away. I was able to purchase at a large discount compared to if I flew and purchased the same boat in the US.

This year Ill be in Carribean waters and are considering selling in order to take advantage of the US market and aud to USD exchange rate. Emotionally have no interest in doing so but rationally I believe theres opportunity in doing so......undecided yet.

Also regardless of profit or minimal loss sometimes freeing up the money to take advantage of other financial opportunities is a good move. Even taking a loss to profit elsewhere then return to cruising is a sensible move for some.

My point is you can sail away and ignore all the noise the rat race creates but the reality is its an illusion that your not connected, optimism or/and avoidance isnt a strategy or at least not a successful one, reality has away of biting one in the ass if ignored.

I also realise wealth isnt measured only in financial numbers, balance matters......thats the hard bit.