wjh
Full Member
Posts: 51
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Post by wjh on Aug 1, 2019 13:55:05 GMT -5
Where I boat it is just not practical to buy lakefront property. Even very small cottages on tiny plots go for $1 million plus. Full sized houses for several million. Not to even mention the high taxes. Many people instead buy boats they can comfortably spend their weekends on and rent boat slips at the many marinas around the lake. I never insinuated that you should buy lake property instead of a boat - I simply stated my case as to how someone could come up with $250k to buy one of the higher-end boats that the OP mentioned buying. |
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Post by xixp on Aug 1, 2019 19:39:50 GMT -5
Hi,
25/ft would be a wet slip; rack storage in a barn or on a boat lift is around 35-40 dollars per feet.
Here we dont pay any af valorem but insurance has almost doubled in the last two years.
I have a SC 35 but i have a slip of my own with a lift in Down Town Miami looking at the bay so my expenses are pretty low im that regard. (I bought it very cheap a few years ago after the real state melt down so im doing pretty well).
BUT i pay around 2k/yr to secure an spot in a Barn as my hurricane plan. No way i would leave the boat exposed to the Biscayne Bay. In a Hurricane.
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Post by lg260ss on Aug 1, 2019 21:11:18 GMT -5
Where I boat it is just not practical to buy lakefront property. Even very small cottages on tiny plots go for $1 million plus. Full sized houses for several million. Not to even mention the high taxes. Many people instead buy boats they can comfortably spend their weekends on and rent boat slips at the many marinas around the lake. I never insinuated that you should buy lake property instead of a boat - I simply stated my case as to how someone could come up with $250k to buy one of the higher-end boats that the OP mentioned buying. I did not take your post as insinuating in any way. |
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Post by rlazar on Aug 2, 2019 12:43:19 GMT -5
First, I am not sure I agree with don't finance your toys. I am not saying you should put all the toys on the credit cards etc but leveraging loans, especially low interest rate ( and interest deductible ) loans can make sense. We make sure we can afford the payments and not be underwater if and when we have to sell the boat.
Here is how we did it when we bought our 2015 32X new.
We managed to save enough to put 40% down. We then financed the remaining 60% over 20 years with a low interest loan. The monthly payment was somewhat like expensive car. So instead of getting a new Chevy Tahoe, I decided to keep my existing Tahoe (already paid off) and make a boat payment instead.
So given your 250K example, if we had 250K in the bank, I would still only put 40% down and finance the rest over 20 years. This is because it does not make sense to me to put 100% on the boat which is a massively depreciating asset. The 60% could remain in equities other other investments that produce more than the 4% interest on the loan.
So let's say the boat out the door price with everything is 250K. You put 100K down and finance 150K over 20 years at 4%, which is approx $900/month ( less the interest you can deduct of the boat qualifies). So if you can afford the 900/month plus boat expenses then it's doable without having to save 250K. With the 40% down if you have to sell the boat, it will not cost you additional money to pay off the loan.
Lets face it, if you work out the numbers of the cost of boating over how many times you use the boat, it really never makes sense given the depreciation and all the other costs. However we look at it differently. We figure out our yearly costs and decide if we can afford that and do we mind paying that amount for the boating lifestyle. So far we are able to say yes to both of those questions.
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Post by gofast24 on Aug 3, 2019 11:03:33 GMT -5
Hi, 25/ft would be a wet slip; rack storage in a barn or on a boat lift is around 35-40 dollars per feet. Here we dont pay any af valorem but insurance has almost doubled in the last two years. I have a SC 35 but i have a slip of my own with a lift in Down Town Miami looking at the bay so my expenses are pretty low im that regard. (I bought it very cheap a few years ago after the real state melt down so im doing pretty well). BUT i pay around 2k/yr to secure an spot in a Barn as my hurricane plan. No way i would leave the boat exposed to the Biscayne Bay. In a Hurricane. interesting, you pay $2k/ year just to have a spot in a barn to put boat into if a hurricane is coming but don't use the option over the years? What if the hurricane hits the storage barn? Doesn't your boat insurance cover damage for hurricanes ? If not, what would it cost you additionally to insure against hurricane damage at your dock? Just curious  |
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