If you really want to know the value, I would find a good surveyor and let them come up with a value, as that is one of the things they should be good at.
I know the market value. I needed a written valuation for the Agreed Value Insurance policy. I was curious as to how I could get to that value based on what I paid for the boat plus what I've spent since. Just curious, that's all. It makes no difference as to what I spend. I do whatever is needed to keep the boat in very good condition.
There were virtually no original systems remaining after my refit. The only exceptions were the hydraulic steering incl. copper lines, and the throttle/gear morse cables. For the former, new seals for the ram in the lazarette stopped fluid weeps and it still operates perfectly. Morse cables are good in the pilothouse, not quite as good on the flybridge, but perfectly useable and not stiff at all. The throttle ones run to an analogue-electrical converter in the ER - so I could change to electronic controls at the helms, but no real need.
I would like to thank contributors to the thread. A lot of pragmatism, and a few laughs/smiles. Fiddling around on a spreadsheet I have developed 2 ways of getting from purchase+refit+annual R&M to current market value.
But firstly, I see R&M as including the lumpy cost items that pop up most years. This includes a new windlass, a new hot water system, modifying solar system to increase capacity and reduce shading, relocating KVH dish as part of that, a new 1700Ah house bank. Post refit, these costs have averaged 11% of boat purchase price over 8 years. Insurance, fuel/oil and marina berth costs are running costs and additional to that.
So, method 1. Discount 55% of refit costs before splash. Year 2 a further -15% of them, and year 3 another -10%. As it is more than 30 yers old, assume purchase price is not itself depreciating any more, and that annual R&M is sufficient to retain that figure over time. So by the time year 4 comes around, market value is original purchase plus 20% of the big refit spend. Ends up a little high perhaps, but taking a further -5% in year 4 takes it to a number that is a too low.
Method 2. More like something an accountant would do. Write off 40% of the big refit spend at splash. Then use 12.5% depreciation on a declining balance basis. For this calc, the annual R&M spend is added into the closing written down value each year. This method only starts to match reality at least 5 years after the big refit spend. Given R&M is running at 11% and write down is 12.5% I'm now effectively decreasing value by 1.5% pa. As the boat is now 40 years old, but still in very good condition, this is probably somewhere in the ballpark.
Finally, market value is still 6 figures higher than my purchase price. Just. I decline to give actual numbers on the grounds that everyone will think "hell, I had no idea he was stupid enough to spend that much", and some of you would not be able to resist actually saying it, and then be in breach of the forum's "be nice" policy!
Oh, its been worth every dollar spent by the way! Enjoyment has actually been priceless!
