Boat Ownership - Ca$h Deal - or - Loaned $$$

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A couple of new points as one looks at mortgage interest, and for purposes of this interest paid on a boat to be used as a second home is mortgage interest.

1. There are now limitations on the amount of debt that can be considered. That current amount is $750,000. That is the total of all mortgage debt (amounts prior to 2017 may be up to $1 million).

2. Some take out home equity loans on their homes to buy boats. That interest would not be deductible. Only Home Acquisition Debt is deductible and any new financing isn't unless used in some way on the home. Now a loan on the boat would be deductible, subject to the other limits. Home Equity Loans just no longer work.
 
In the case of Seabiscuit, bought outright at good price, and have spent about the same to bring her up to scratch. In my experience, boats depreciate too quickly to consider a mortgage on a larger, more expensive one.
 
My dad taught me at an early age that you only finance your home (and then pay it off ASAP) and medical bills if you can’t pay it off. I’ve done exactly that all my life and now that I’m unemployed it’s more important than ever. It’s nice being debt free, you’ll sleep better at night.
 
One boat out of over 30 was financed. I had just started medical practice, and purchased a home. Went from a very low income to a high income. House and boat paid off in 3 years. (But then you could buy a new 35 sail foot boat including sails etc for $20,000 and a 2,700 sq ft house for $35,000.)
 
I would wonder how many boat builders would be building something else if CASH ONLY buyers were knocking at their hatches.
 
jreekree said:
My union dues worked right up until the time the company threw our contract out and the bankruptcy court took it all away.

Found out the in the good ole US of A a contract ain’t worth the paper it’s written on.

The good new is we have a great boat and are enjoying life. It was a 70% loan.
Click to expand...

That's rough as well, and glad you came out of it in style.

My earlier comment was more to say I appreciate being protected by a union so management can't fire me, then hire someone else at a reduced level of pay as happened to another poster.

The union I belong to has 54,000 members and the company is doing well. But, as you suggest, one never knows...
 
Jack (Steve). She actually said everything is an illusion.
 
Sailor of Fortune said:
Wasn't it Helen Keller that said security is mostly an illusion?..or something to that effect?
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With enormous, unending due respect to Helen.

There are many different personal levels of security and reasons for feeling secure. IMHO, personal "security" stems primarily from inside of oneself to "secure" one's own feeling of security. If anyone ever understood and practiced that last statement - it was Helen Keller!

Some owners of products feel secure owning those items with a loan [financial note] attached. Some don't. Some need to have money loaned to be able to have products for use. Some don't. Some feel most secure having no note attached. Some could care less if a note exists on product and work their money in different ways. Some don't.

As I mentioned... IMHO, personal "security" stems primarily from inside of oneself to "secure" one's own feeling of security.
 
I need a class

Seevee said:
I'll call you stupid.... but really don't mean it..... :). Need some humor occasionally.


Nothing totally wrong with consumer debt, but I could argue strongly against it for a number of reasons. First, being it's high risk, and most of us don't like risk even though we could take our dollars and get better returns elsewhere.


I could argue there's a reason to keep money in cash and that's for opportunity to make a quick deal and that's where a LOT of money is made.


Sure debt is a tool, but only when it offers you the risk you want and some benefit of a profit. Toys do not produce profit.



And there's a way around capital gains and other taxes.
Click to expand...

I need to find a way around capital gains taxes and yet maintain my high rates odd return. I am all ears.

Gordon
 
Isn't there a polling option on this site? That way we could see at a glance how many finance or pay cash
 
grahamdouglass said:
Isn't there a polling option on this site? That way we could see at a glance how many finance or pay cash
Click to expand...
Why? It`s a personal finance choice. Reasons are as varied as examples above. You may have cash to spend. You may borrow to conserve cash to maintain existing investments. You may not have the cash but have the income to service a loan,so you borrow. An Aunt may be dying and leaving you a fortune, so you buy on credit knowing you can repay soon.

A poll only helps if you want to follow the majority, but their situation may differ from yours, and you may not know it does or why it does.
But if we need another poll, it`s been a while, yes, let`s have one.
 
BruceK said:
A poll only helps if you want to follow the majority, but their situation may differ from yours, and you may not know it does or why it does.
But if we need another poll, it`s been a while, yes, let`s have one.
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Wifey B: OP intended a poll but screwed it up somehow, which is easy to do until you master polls. :)
 
Polls: Usually the poll questions are written in such a way as to prove the intended results. SMILE (Don't ask me how I know) INNOCENT LOOK

Witness the media's attempt to elect Hillary.
Never, never, never believe the polls.
 
Art said:
With enormous, unending due respect to Helen.

There are many different personal levels of security and reasons for feeling secure. IMHO, personal "security" stems primarily from inside of oneself to "secure" one's own feeling of security. If anyone ever understood and practiced that last statement - it was Helen Keller!

Some owners of products feel secure owning those items with a loan [financial note] attached. Some don't. Some need to have money loaned to be able to have products for use. Some don't. Some feel most secure having no note attached. Some could care less if a note exists on product and work their money in different ways. Some don't.

As I mentioned... IMHO, personal "security" stems primarily from inside of oneself to "secure" one's own feeling of security.
Click to expand...


Wikipedia says this... :)



Paranoia is an instinct or thought process believed to be heavily influenced by anxiety or fear, often to the point of delusion and irrationality.



Apply this to many TF discussions.... :D


Not pointing any fingers, but external checks are important to make sure one hasn't convinced oneself of "self derived security".... like those that sleep with ABYC pubs under their pillow.... :rofl:
 
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grahamdouglass said:
Isn't there a polling option on this site? That way we could see at a glance how many finance or pay cash
Click to expand...

Hi - I'm the OP. Tried to make this a poll - but somehow things got messed up??!!

Although have done a few polls over the years... when I filled out to have this thread be a poll and submitted it the poll option disappeared and the post stayed. Guess I'd asked enough in the op to keep many posts coming.

If someone wanted to turn this into a poll - or - to start a new similar content thread/poll - Have At It!! :thumb:

Art :dance: :speed boat:
 
Art said:
Hi - I'm the OP. Tried to make this a poll - but somehow things got messed up??!!

Although have done a few polls over the years... when I filled out to have this thread be a poll and submitted it the poll option disappeared and the post stayed. Guess I'd asked enough in the op to keep many posts coming.

If someone wanted to turn this into a poll - or - to start a new similar content thread/poll - Have At It!! :thumb:

Art :dance: :speed boat:
Click to expand...

Wifey B: Your thread. You could do a poll still. We don't know what choices you intended to put in your poll. :)
 
BandB said:
Wifey B: Your thread. You could do a poll still. We don't know what choices you intended to put in your poll. :)
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Thanks for mentioning WB. I'm pretty much done here! :D

Been enough posts I believe to get the gist of the topic sussed out. :thumb:

:speed boat::speed boat:
 
Aill in the timing

Say what? I just read 7 pages of posts - I'm chiming in too.


I'm planning on retiring early. That's not happening if I have any debt (I'll just keep working). So to make my dreams come true - it took years of planning, investing and saving. I'm debt free, I own my boat.... not long now. I'm trying not to get too excited, so I don't stroke out and die before then.:nonono:
 
Todd2 said:
Say what? I just read 7 pages of posts - I'm chiming in too.


I'm planning on retiring early. That's not happening if I have any debt (I'll just keep working). So to make my dreams come true - it took years of planning, investing and saving. I'm debt free, I own my boat.... not long now. I'm trying not to get too excited, so I don't stroke out and die before then.:nonono:
Click to expand...

Although we have been happy to use credit to buy what we want today vs waiting and saving, retirement is a different story.

My opinion is that a prudent person should plan on no debt through their retirement years. The time for buying things like boats IMO is while you are working and have the income from that work to spend on fitting out and paying for your boat.

It’s not that hard. Pick a retirement date, and structure any debt so that it is paid off prior to that date.
 
Retired in 2015, financed my current boat (purchased Feb 2018) with 20 yr loan. Bank contacted me last month, offered to refinance it down to 3.65% with only a small fee and without rewriting the loan period!

Unlike many on this forum, I am single; my standard deduction is smaller therefore, and I will be able to write off interest for a lot longer. And yes, I am making more on my money than the interest rate :)
 
When your total debt is equal to 2% of your net worth, like Spinner, do you really have any debt? If you use Credit Cards and pay 30 days later, is that debt?
 
tiltrider1 said:
When your total debt is equal to 2% of your net worth, like Spinner, do you really have any debt? If you use Credit Cards and pay 30 days later, is that debt?
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DANG! I don't think I have enough to retire on now.:facepalm:

Todd2
 
So am I. And my "roomie" would hurt me, if I ever caught up with Spinner, fer sure. :flowers: LOL

Todd
 
Laon or cash

No one answer is correct. I agree it is better to use bank money at a low interest rate rather than take hard cash that can be better invested elsewhere.

Plus saving to get boat keeps you from having a boat. Look at it this way: Borrow money for boat. Use it 10 years sell boat and you've only tied up a small portion of your assets and gotten some back.
 
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