Net worth....Boat Budget

[Capitaine R]

We Financed part of our 32NT due to a few reasons.

We were not really ready to but a boat, we were just looking but found a deal we didn't want to pass up.

We knew it needed TLC and buying early we would have time to fix her up the way we want her. We do all of are own work.

We are lucky enough to have a larger yard than most and the ability to have the boat on the hard right next to house were we can work on it when ever we have free time. We live in a country setting. So no storage fees

We are also lucky enough to have our retirement house on a canal where we will keep her on a lift when she is ready, so no slip fees. I have already purchased a 25000 lbs lift from craigslist, stored in my garage until needed. We will need to have the dock re-figured to allow both boat lifts to be installed.

And like several others have said Financing works out better than taking funds out of investments at this time.

Different strokes for different folks.
I say do what you think is right for your circumstances.

 

[Slider70]

You can see in my profile that I started with a small boat and worked my way up. The only ones that I financed were my commercial trollers. That was mainly for the high price of those commercial licenses.

I absolutely loved and enjoyed each of my vessels. The size of the boat defined the geography of my adventures cruising with my wife, and eventually kids as they came along. I lost my oldest son to cancer in his late twenties. My other son, he is 48 yrs old now, reminded me just last month how much he enjoyed out family adventures in our wood Christ Craft. He says he couldn't think of a better up bringing.

I bought boats I thought I could afford at the time. It turned out I could. Did most of the maintenance myself with attention to maintaining the vessel in a safe condition rather than buying and installing all the toys I might have liked on the vessels.

I may have 'cheated' a bit in my boating by going to commercial vessels where I got to earn a living while boating? It put me into larger boats sooner than I would otherwise have done. Both my boys fished with me when they were in their teens. I loved it but they may have enjoyed the pleasure cruising more, though they did earn a good living, learn how to work, getting a great start in life from it.

Every situation is different. I don't think there are rules to guide one. But enjoy life while you can. It is short and crap can happen that is out of your control. This can drastically change opportunities but not remove the fun and adventure you enjoyed with your family. Every day that goes by is gone so enjoy each as best you can.

 

[Dani-lu]

Banks use percentages, people shouldn’t. A bank is a business and can claim Chapter 11 and get a do over. People live life and there is no 2nd chance. I hear many folks on boating websites say you never borrow money for a depreciating asset. I have wealthy friends that would never ever use their own money on a depreciating asset.

You have to look at your financial situation and make smart decisions based on not only your net worth, but income. Don’t put yourself into huge debt to buy a boat, but if boating will create lifelong memories for you and your loved ones, buy a friggin boat!!

For the record, I have owned 4 boats since I was 28. All with boat loans. 5% of my net worth would have bought me a wooden row boat with a hole in the bottom. I made sure the loans never went upside down (owe more than the value of your loan), made all payments on time, wrote off all interest as second home (rather give a few sheckles to the bank for years of happiness on the water than the government for living here).

I am now semi-retired and decided I wanted no debt for “peace of mind”, more than financial reasons, so I own my boat outright.

You never know, I may decide to buy another newer , bigger boat and instead of using my “working” money , I will let another bank help me buy another boat.

 

[kthoennes]

We adopted a couple young boys in my 50's, wife's 40's, so maybe we appreciate how fast time flies better than younger parents. And we didn't go nuts, only financed about half the boat's value, for four years. And sure, we didn't need a 40 footer to get the boys on the water and make memories. Other families at the marina do it for far less, on smaller boats. But seeing my son at the helm smiling, or listening to the sound of the boys and their friends laughing and diving off the swim step, or having breakfast with my wife on the aft deck at sunrise is worth every penny of that relatively low, temporary boat payment.

 

[Dani-lu]

We adopted a couple young boys in my 50's, wife's 40's, so maybe we appreciate how fast time flies better than younger parents. And we didn't go nuts, only financed about half the boat's value, for four years. And sure, we didn't need a 40 footer to get the boys on the water and make memories. Other families at the marina do it for far less, on smaller boats. But seeing my son at the helm smiling, or listening to the sound of the boys and their friends laughing and diving off the swim step, or having breakfast with my wife on the aft deck at sunrise is worth every penny of that relatively low, temporary boat payment.

A husband and wife that get it!! Good for you!!!!!

 

[jeffnick]

Do you guys expect to have more money in your pocket when you come out of a movie or restaurant? How about after you buy a good bottle of scotch? Where is the passion for boating?
You want a boat with no risk. To me, a risk is an opportunity to learn something, so basically you want a boat, but you don't want to pay for enjoyment and don't want to learn anything. I ask you, "What is your motivation for wanting a boat? Do you feel a boat is an obligation that must be fulfilled at minimum cost and risk?

 

[Dani-lu]

TrawlerForum needs a Like button!

Do you guys expect to have more money in your pocket when you come out of a movie or restaurant? How about after you buy a good bottle of scotch? Where is the passion for boating?
You want a boat with no risk. To me, a risk is an opportunity to learn something, so basically you want a boat, but you don't want to pay for enjoyment and don't want to learn anything. I ask you, "What is your motivation for wanting a boat? Do you feel a boat is an obligation that must be fulfilled at minimum cost and risk?

We need a Like button!

 

[alormaria]

It's still true; "If you have to ask, you can't afford it".

 

[Larry M]

I don’t care how much money you have or what you budget is:

 

[Bryant]

Cost

Interesting concept, but in my opinion completely false and misleading.

The figure that I hear bounced around is to figure in around 10% of the boats value per year for maintenance. That is even misleading.

When budgeting for a boat add up the costs before you buy. If you finance the boat then thats the payment. Add to that slip fees and insurance.

On top of that guess high on the maintenance. For a 50’ boat figure on several thousand dollars a year. Yes it may come out to be less and you’ll be happy but it will probably average several thousand a year.

The fastest way to find yourself in a pickle is to buy a boat that you might be able to afford to buy, but cannot afford to maintain.

The bank, and the boatyard, and the marina, and the insurance company do not care about net worth. They care about cash money.

One could have a very high net worth and not have the liquidity to own a boat.

Conversely one could have a low net worth, and a high income and be able to easily afford a boat.

Very good analysis.
An $80,000 trawler required $30,000 worth of work. $1000/year on annual maintenance. Add another $1000/year for "stuff" that breaks or needs attention. $2500/year on insurance. $3000/year for slip. We just weekend and do 4 or 5 days periodically; $1000/year for fuel and pump outs. $500/year for transient slips to visit other areas. Then there is the Air Conditioning system that needs to be replaced or the generator or an engine rebuild or whatever. Be very careful basing your decisions on what kind of boat you can afford solely on monthly payments. The "incidentals" will kill you if you max out your budget on boat payment alone.

 

[Mako]

Some good number there, Bryant.

I’ve owned boats from 20’ to 65’ and have found the three biggest expenses are mortgage, insurance and marina.

Fuel and maintenance were manageable and reasonable even for the big one. Insurance is mostly based on value not size.

So the best way to control expenses would be to own in cash and tie to a floating mooring. That’s my conclusion at least.

 

[Bryant]

cost

Some good number there, Bryant.

I’ve owned boats from 20’ to 65’ and have found the three biggest expenses are mortgage, insurance and marina.

Fuel and maintenance were manageable and reasonable even for the big one. Insurance is mostly based on value not size.

So the best way to control expenses would be to own in cash and tie to a floating mooring. That’s my conclusion at least.

I

I agree. The best consideration about owning a boat is what you can afford to pay for in cash, then pay for the monthly and yearly expenses out of your expendable monthly income. Buy the boat you can afford, all expenses considered.

 

[syjos]

Do you guys expect to have more money in your pocket when you come out of a movie or restaurant? How about after you buy a good bottle of scotch? Where is the passion for boating?
You want a boat with no risk. To me, a risk is an opportunity to learn something, so basically you want a boat, but you don't want to pay for enjoyment and don't want to learn anything. I ask you, "What is your motivation for wanting a boat? Do you feel a boat is an obligation that must be fulfilled at minimum cost and risk?

I agree 100%

 

[Bryant]

Boat cost

Do you guys expect to have more money in your pocket when you come out of a movie or restaurant? How about after you buy a good bottle of scotch? Where is the passion for boating?
You want a boat with no risk. To me, a risk is an opportunity to learn something, so basically you want a boat, but you don't want to pay for enjoyment and don't want to learn anything. I ask you, "What is your motivation for wanting a boat? Do you feel a boat is an obligation that must be fulfilled at minimum cost and risk?

In my opinion, this is a totally inappropriate comment. This is a forum for open conversation. People of varying degrees of experience join and ask questions hoping to gain knowledge from people with more experience. No question is stupid. If you don’t have any positive guidance or advice to offer, then just keep quiet. If you want to argue or insult, go to Facebook.
This isn’t the place for that.

 

[syjos]

In my opinion, this is a totally inappropriate comment. This is a forum for open conversation. People of varying degrees of experience join and ask questions hoping to gain knowledge from people with more experience. No question is stupid. If you don’t have any positive guidance or advice to offer, then just keep quiet. If you want to argue or insult, go to Facebook.
This isn’t the place for that.

We must be reading two different threads. I did not see the word "stupid" in jeffnick post nor did I feel that he was being argumentative nor insulting.

On the other hand you told him to be quiet (shut up) and go to facebook, which to me is more inappropriate.

He is sharing his opinion on a subject that has been discussed to death with many viewpoints.

I agree with his viewpoint.

 

[Bryant]

Boat cost

We must be reading two different threads. I did not see the word "stupid" in jeffnick post nor did I feel that he was being argumentative nor insulting.

On the other hand you told him to be quiet (shut up) and go to facebook, which to me is more inappropriate.

He is sharing his opinion on a subject that has been discussed to death with many viewpoints.

I agree with his viewpoint.

Didn’t say he used the word stupid. I said that no question is stupid and deserves a straight answer. I said insulting people who have a legitimate question is inappropriate. I also didn’t tell him to shut up. I told him that if he wanted to insult or argue that he should go to Facebook.

Want to disagree with me, fine. Don’t misquote me. If you agree with his condescending, insulting and argumentative reply to a guy with a legitimate question then you are a bird of the same feather. Notice I didn’t use another word that would be more descriptive.
Happy Thanksgiving.

 

[Simi 60]

I'm just here for the popcorn

 

[markpierce]

Many will say I'm insane spending more on my boat than my dirt home. My choice, and you have your choice

 

[Chrisjs]

Mark: Many will say it's insane to own any boat!!! Happy TG to all rich and poor boatowners!

 

[psneeld]

I saw Jeffnick's comments as "open ended" or as some might say "rhetorical"...neither intended as mean or condescending.

This comment, I don't t exactly see....it's almost contradictory.

"In my opinion, this is a totally inappropriate comment. This is a forum for open conversation"....

 

[RT Firefly]

Greetings,
Just my opinion but this thread is fast becoming silly. The decision to purchase or not purchase a boat is completely personal. There are many "what ifs", maybes, might be's, based on's, how about's, can I/we...Way too many variables to give a definitive answer and way too many reasons why one can or can't or will or won't or should or shouldn't or, or, or.


I've re-read all the posts and EVERYONE has their OWN reasons for doing what they're doing, or not. There is simply NO right answer.


Apologies.

 

[Codger2]

I saw Jeffnick's comments as "open ended" or as some might say "rhetorical"...neither intended as mean or condescending.

This comment, I don't t exactly see....it's almost contradictory.

"In my opinion, this is a totally inappropriate comment. This is a forum for open conversation"....

You beat me to it, PS.......But thanks for the English lesson.

 

[syjos]

Didn’t say he used the word stupid. I said that no question is stupid and deserves a straight answer. I said insulting people who have a legitimate question is inappropriate. I also didn’t tell him to shut up. I told him that if he wanted to insult or argue that he should go to Facebook.

Want to disagree with me, fine. Don’t misquote me. If you agree with his condescending, insulting and argumentative reply to a guy with a legitimate question then you are a bird of the same feather. Notice I didn’t use another word that would be more descriptive.
Happy Thanksgiving.

The word stupid appears in your post. Jeffnick uses no such words.

In your post you told jeffnick "just keep quiet" which is basically telling him to shut up.

You are trying to censor what you don't agree with by labeling it inappropriate.

And then using some bird reference to try to insult me. Does'nt work, I'm not as sensitive as you are.

 

[FlyWright]

In my opinion, this is a totally inappropriate comment. This is a forum for open conversation. People of varying degrees of experience join and ask questions hoping to gain knowledge from people with more experience. No question is stupid. If you don’t have any positive guidance or advice to offer, then just keep quiet. If you want to argue or insult, go to Facebook.
This isn’t the place for that.

We must be reading two different threads. I did not see the word "stupid" in jeffnick post nor did I feel that he was being argumentative nor insulting.

On the other hand you told him to be quiet (shut up) and go to facebook, which to me is more inappropriate.

He is sharing his opinion on a subject that has been discussed to death with many viewpoints.

I agree with his viewpoint.

Jeff, Like syjos, I didn't read your post as anything other than conversational. I agree that there is a cost to all things boating and those of us doing it the best we can understand that.

Those looking to enter the game often need some reference point to start from when analyzing their options and their costs. Jeff has found a great solution for himself and I have found one solution for me. Those 2 solutions will not work for many others who have their own formula variables.

I think the key takeaway is that we have to go into it with our eyes and minds (and sometimes wallets) wide open. Your mileage WILL vary from mine.

 

[BandB]

I saw Jeffnick's comments as "open ended" or as some might say "rhetorical"...neither intended as mean or condescending.

This comment, I don't t exactly see....it's almost contradictory.

"In my opinion, this is a totally inappropriate comment. This is a forum for open conversation"....

Not "almost." It is.

 

[BandB]

Jeff, Like syjos, I didn't read your post as anything other than conversational. I agree that there is a cost to all things boating and those of us doing it the best we can understand that.

Those looking to enter the game often need some reference point to start from when analyzing their options and their costs. Jeff has found a great solution for himself and I have found one solution for me. Those 2 solutions will not work for many others who have their own formula variables.

I think the key takeaway is that we have to go into it with our eyes and minds (and sometimes wallets) wide open. Your mileage WILL vary from mine.

Wifey B: Same advice I'd give as life advice. Do what works for you. It's really that simple.