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Old 04-18-2012, 01:02 PM   #11
Marin
Scraping Paint
 
City: -
Join Date: Oct 2007
Posts: 13,745
We are considering putting $100,000-plus into our boat to bring it up to new condition. Totally rework the hull, new engines, generator, new exterior wood where necessary, etc., etc. etc. But if we do this, the boat will be worth no more than a fiberglass 1973 Grand Banks 36 in excellent condition. Which these days is to say a bit more than $100,000 maybe. The only reason we will do this if we do is exactly what rwidman said: we want to do it for us.

To think a recreational boat of the type most of have is any sort of investment is a big mistake. We paid cash for our boat and we don't expect to get a dime out of it when our boating days are over. It's no different in this respect than buying a pair of skis or a bicycle. It's a toy and toys are not investments.

Some people say "I can sell my boat today for more than it cost new," and that's true in the number of dollars but it's not true in value. In 1998 we paid more than twice what our boat cost new in 1973. That's not because the boat increased in value in the ensuing 25 years but because the dollar decreased in value over those 25 years. At the time we bought our boat, a new GB36, which was in essence the same boat as ours albeit with many refinements, cost in the neighborhood of $300,000 equipped. There are certainly exceptions but in most cases a recreational boat is a very poor investment in terms of its value over time.

With regards to insurance you can get a new survey and hope the surveyor increases the value of the boat so you can up your coverage. But unless you've got something like a vintage Gar Wood or Hacker runabout or express cruiser, he's not going to up the value outside the envelope all boats of similar age, make, model, style etc. are in, no matter how much money, time, and effort you've put into the boat.
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