View Single Post
Old 12-12-2018, 09:09 AM   #23
Seevee
Guru
 
Seevee's Avatar
 
City: st pete
Vessel Model: 430 Mainship
Join Date: Sep 2016
Posts: 3,502
Quote:
Originally Posted by AdmiralS View Post
As a Millenial (hate the word millenial as its usually used in a negative tone) and having been boating since I was about 10, It has always been my passion.

The financial climate has changed dramatically since 2008. Having bought multiple boats in gradually larger sizes has been a trip. It has been horrible and great at the same time.

I would like to think we are well off financially. Have a high paying job in the financial services industry and can pretty much afford all of our toys in cash. Pretty responsible with savings and expenses and have a single digit debt to income ratio. Credit scores in the 800's.

I am constantly met with "no comparable credit history" when we are shopping for loans for our boats. While we can afford in cash, our money is working much harder for us in investments and other financial vehicles. We live in a Tiny House which we built and paid for outright. This gives us the freedom to travel and buy toys without a massive mortgage or rent payment.

This however makes things very difficult with the banks. They don't like that you haven't had a mortgage. Even though your combined available credit on credit cards could buy "the toy" on top of the cash in the bank.

OK, that's enough ranting for now. But point is, even for those ambitious millennials out there that want to break into boating, and have the means, it is very very difficult to do these days when even a simple center console costs bukku bucks. Ofcourse used boats are an option, but a lot of people these days are looking for shiny new turn key. The appeal of an older boat is probably less desirable given that it will require upgrades, work, etc.
AdmiralS,

You're doing things right, unlike the vast majority of Millenial that feel someone else owes them a living.

Don't get too hung up over banks, but if you want to improve your "lend ability", take out a home loan on your house, but use the money to get another house for rental, perhaps with a mortgage and let the banks dollars work for you. There a better ways with seller financing, but won't help your credit.

I'm a fan of not using banks for the most part, and ABSOLUTELY, do not waste money on consumer debt for anything.... cars, boats, etc., only a personal residence where there is some benefit.

Now, if you can make the item revenue producing, different story.

But with all your toys paid for, and the rental house paying your home expenses, you'll be MILES ahead in years to come. Just take a calculator and figure it out.

You're right about Millenials, they do have a bad reputation and from what I've seen I would not likely hire one. Most have earned that reputation.

Best to you.
__________________
Seevee
Seevee is offline