Finance a Boat Since I’m Living in It?
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- เผยแพร่เมื่อ 24 ก.ย. 2024
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From a financial standpoint, the proper comparison is with what you’d pay in rent, not a mortgage. That said, Dave is correct that living year round on a boat in a place where winter exists is not probably tenable.
It depends on what rent would be and how much he could save. As long as you realize that it's going to go down in value, make your own decision.
Buy the boat, if you rent that's 100 percent depreciation. If you weren't gonna live on it I would say no, but in your case I would say buy it. Dave is just a rain cloud.
We use our boat for our vacation all summer long as marina is right on way home from work, im there by 2pm.
that's nice, I have a public launch 5 mins from my house (and work) I feel like it's my obligation to get a boat
Simple answer land apreciates over time. Boats do not
Land appreciates because stupid real estate companies and foreign investors buy up land and houses. They should be barred from doing so.
Correct! Anything with t!t$ or tires does not
@@AlinaEvil-Triplet Well maybe at 60 years of use they do!! :)
@@niceguydmm No way you were using your gal's assets for a full 60 years. Unless you are 80, assuming you were with your gal at the age of consent at 18, no.
@@niceguydmm LoL, you ever see a 65 yo woman become a super model? me either...
The two happiest days for boat owners: the day they buy a boat, and the day they sell the boat (after realizing how high-maintenance boats are.)
Not true in my case; still enjoying my Catalina 22 immensely. Bought used for $8000, I've been all over the Caribbean, Mexico and Central America. Now docked in Galveston TX for $400/month plus utilities; you can't even rent a storage unit for that price.
@@tdgdbs1 Hurricane season could be catastrophic, yes?
Not true I would cry if I sold my boat and my wife would kill me, we stay on it all summer in Lake St Clair 32 foot. And have a 13 foot runabout, both will be paid off by February.
I shed a tear when I sold mine but it was too small for us and I felt it.
@@captainkrunch6372 But it's a toy for you, not your home.
Living on a boat is a bad idea but rent is okay. Got it.....
Only houses with a foundation or ones that are permanently placed tend to increase in value. Boats, Mobile homes, Double wide trailers all tend to depreciate.
"B00Bs and tires, that is the saying, gonna cost ya
Yea but as long as he’s investing the difference. Family homes aren’t a asset anyway after you include all expenses
@@Dividendsmattertoo Not even gonna comment on this ignorance.....
@@DividendsmattertooA well built and taken care of home doesn't incur that much expense once it is paid for... What do you mean it's not an asset? It very much is so.
@@AlinaEvil-Tripletthey be might be an asset but their not a good investment. Their only good to create family memories. But after you include expenses such as property taxes interest repairs closing costs over 10 years your lucky to break even
My marina is 427 a month boat payment 225 a month fot summer but its our vacation summertime home still have house too
And an RV is a boat that leaks from the top down.
If it flies, floats or f. Rent it. Do not buy depreciating assets.
What does the last "f" stand for?
@@wewhoareabouttodiesaluteyo9303 LoL, you know! If it has t!t$ or tires, gonna cost ya
@@AlinaEvil-Triplet Oh...he meant fucks. Got it now.
@@wewhoareabouttodiesaluteyo9303 He meant females! Big ole' money pits
@@AlinaEvil-Triplet It does not make sense.
Female is not a verb.
A boat is a toy, whether you live on it or not. You buy toys with cash. You don't finance toys.
Family had a boat that my dad kept on tip top shape. Eventually the hull rotted. Boats of that year had wood mixed on the fiberglass and would eventually rot. When that happened it became a total loss. That would never happen on a house/apt. Also your neighbors house will never crash into yours. Ive seen boat crashes right on the docks. Boats are a money pit. My fathers started intaking sea water into the engine and the repairs were through the roof. After seeing that i was turned off to ever buying a boat.
"Family had a boat that my dad kept IN tip top shape. Also, your NEIGHBOR'S house will never crash into yours. I'VE seen boat crashes while docked. My FATHER'S started intaking sea water into the engine and the repairs were through the roof. After seeing that, I was turned off ON ever buying a boat."
@@wewhoareabouttodiesaluteyo9303 jealous of all ur free time
@@GamerBeer Don't be jealous. Learn from it. I do not have to work because I have several streams of income.
As long as you calculate all the expected cost on maybe a unexpected cost and you are willing to deal with any hassles. This is a great plan. Dave just can't imagine someone not living like he does. He's completely out of touch with the common man today.
How is buying the boat different to renting? If you rented instead you would spend money you’ll never get back. If you buy a boat and sell later you’ll still get some money back even if it depreciated. It would be yours at least
I don't see a problem with it, especially since you don't have to rent any land to go with it. A lot of folks in Florida are starting to do this.
I agree. With renting you are literally flushing money down the toilet. Even with a boat depreciating, it will still give you some of the money back when you go to sell it. So it's not a complete loss like renting is. Those boat payments are probably a lot less than what most are paying for a studio apartment in rent.
Boats are a total money pit. If you're renting an apartment or house and something needs major repairs, the landlord pays for it, not you. Boats need a lot more maintenance and repairs than apartments and houses.
@@nicodimus2222 👍
@@vickieclark5931 exactly. It would also involve having more freedom with no landlord
houses depreciate just as boats do, the difference is when you buy a detached house (or even to some extent condos) you are getting REAL ESTATE (i.e. a piece of the land). There is nothing wrong with living in a boat just as there is nothing wrong with living in an apartment, however if you live in a place that you are not owning the land and you are spending too much of your income on that then you are harming your future. If you find you can live cheaply and comfortably in a boat then go ahead an live in one, if you borrow then use the same rules as for a car (or the 20/3/8 rule from the MoneyGuy: 20% down, 3 year period and payment no more than 8% of income).
And of course, you never really "own" the land.
You can travel the world and live on a cruise ship for 30k a year I heard. This includes food and amenities too.
The problem is finding work unless you work remote.
Yeah that's for retirees!
What a nightmare. Being around 1,000 people that came to party and make noise for a week. No thanks...
@@ProCoach2373
World cruise not spring/summer Caribbean cruise with kids and college students.
Houses depreciate as fast as anything. Don’t people get this? Buy your house, keep it for ten years….see what you can sell it for…then subtract all the maintenance and such…it ain’t a growing investment for sure.
Not usually true. Sure it's not gaining as much value as it is on paper but it's still slowly growing.
And don't forget all the rent payments you don't need to pay with a paid off house.
Somebody binged Miami Vice last week. Good luck getting that highlander rockstar.
A house boat is still a toy
“Bad idea Honey” he’d shouldn’t patronise people!
His name is on the building not yours
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He's going to do it anyway.
Money is a tool to do what you want. If that's what he really wants, he should go for it. He just needs to know it's a life decision, not a financial decision.
If hes got no debt and he wants a house boat i dont see why not. I was always taught if you like something and buy it it doesn't matter if it goes down in value... Unless you want to sell it for the future... What Dave doesn't say it doesn't matter if it loses value or not because you would have to sell it to make that money back. So if he wants a house boat and keep it and not sell it it doesn't matter.
YEP. Not everything is about deprecation.
But don't finance it. Pay cash if you want a toy.
Very true. When I decide to buy another home, I'm not buying it for my net worth. I'm buying it to live in. That's the only reason that I buy a home. Especially for some of us that are older, the next home maybe the last one. So we won't care how much it's worth when we die.
@@jimroscovius It's more than a toy if you are actually living in it. Plus, he will end up more than likely paying rent somewhere else that will probably cost the same or more than what a boat payment is. So it's not like he is saving money by renting an apartment.
Replace “buy” with “finance” and reread your statement.
I had "Live Aboard" fever back when I was in my 30's and doing lots of sailing around the Chesapeake Bay and vacations on large boats in the Caribbean. But after lots of research and just maturing (lol) I decided the cons outweighed the pros. Boats ARE REALLY HIGH MAINTENANCE for starters. Annual hull cleaning to get the barnacles off, polish and oil any woodwork, Mechanical stuff, the motor etc etc. And just the daily lifestyle is annoying - especially in a cold climate walking out the icy pier with your groceries or laundry. Having to use a laundromat, having to dump your sewage in certified locations - and depending on the size and quality of the boat it does always have a slightly stinky smell from the loo. Also not mentioned is where will you anchor or moor the boat - cost and rules and risk of bad neighbors or marina problems....and then there's the weather in general......Dave is so right on all points. DON'T DO IT unless you already own waterfront property and/or can afford a yacht and crew, lol. If the fever is too hard to ignore, rent a boat for 6 months before deciding to buy.
I guess this is why I’m retired debt free 15 years early among other things.
I took a 7 day coastal navigation course in 1999 at Ft Lauderdale and just chartered/rented. Also borrowed or crewed with people on their boats at no cost in U.S. and several countries including Oklahoma where I live.
@@blackworldtraveler3711cool. Are you helping others?
@@kbanghart
What does that have to do with sailing without the the debt and expense of ownership?
@@blackworldtraveler3711
My comment was a bit of bait. I read SO many comments on his videos from ppl with success stories. Even better than success.. sometimes ppl post who claim to be millionaires. Great! But Dave R also talks about helping others, once you've been thru the baby steps and are experiencing success. Of course, I'm sure many of his followers don't really care, they just want what they can get and F everyone else. So I was just curious about that. Obviously it's your right to do with your money what you want. It's just nice to hear it mean something to other people sometimes. I'm tired of the advice to "pull yourself up by your bootstraps". Yeah, advice is great, but have you (people in general) actually helped someone tangibly?
Finances sound Like they are set. Buy it and enjoy while you can. While your floating save, invest, and have a great time
Replace “buy” with “finance.”
Does Dave think everything goes to $0 in value? Even a home goes to $0 in value if you don’t take care of it. Only land is valuable. Go ahead and try to sell a busted up home and see if that nets you $500k. That’s so dumb! My 08’ V8 Mustang still has a black book value of $13,300 15 YEARS LATER!
I guess Joseph doesn't think that he will marry in the next ten years. Because if he does, bye bye boat.
The lake freezes 4 months out of the year. Where do you park the boat in the winter in Ohio?
Probably on land.
How much value of the rent hes paying does he get back? Ya the ptty cash for the used boat is better than the zero from the apartment.
Well POPEYE the sailor man became a millionaire living on a BOAT!!! LOL
Eating Olive Oil and Spinach
Living on a boat is NOT cheap. There are 10 times more things that can go wrong, and they are 10 times more expensive than house repairs.
It’s fine. People do it all the time in Oklahoma.
Not sailing around the world or anything.
A boat is a place in the water where you pour money.
Old boat saying
It's really not a stupid question. This guy seems to have his finances in order and if he plans on living in a boat and making it his home, he will have pretty low monthly expenses. Houses don't always appreciate that much. The only way you actually make money on your home is if you pay cash for it. All the payments with interest on them over 7-10 years or more keeps you from ever actually making money on your home. So you are lucky if you break even on your home when you sell it unless you paid for the whole thing up front when you bought it. So pushing people to buy these homes is not the best financial move.
Said no one ever.
@@AlinaEvil-Triplet 👍
I like them but a boat is a boat note a house, even if you live on it.
Who care's what it is worth in 10 years. He is living in it.
Yes get a mortgage. It will be his house. Some people enjoy living on a boat.
It's the same as a RV if you're living in it.
10 years is not guaranteed negative Dave.
Tell this to Noah
Buy boats used and never finance. They depreciate like crazy.
Mine haven’t 🖕
Doesn't sound like he's 100% on board. Probably just wanted to float the idea by Dave.
His reasoning probably didn't sink in though.
@@XennialGuy 😂😂😂
Who knows, maybe its on sale
@@kevokev978 Hopefully because it's a hull of a plan if he can navigate it and no longer deal with the tie-down of paying rent.
Ya and paying rent probably doesnt float his boat, buts better than walking the plank out to an 8% mortgage. Perhaps fairer winds will help guide him towards a more bouyant living arrangement in these choppy waters
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i made 20k profit on my boat after 10 years of use🤷🏼♀️
The important thing is that you enjoyed the boat.
@blackworldtraveler3711 also the profit was nice
.ha
Buy the boat and try it out, who the fucking fuck cares about depreciation, he saves rent oh well, payment is just another form of rent
Bust Out Another Thousand
Or HD, Hundred Dollars!
Jeep, Just empty every pocket
It always surprises me when Dave answers in line with the principles he teaches and folks chime in “but, what about…”
No. Principles are foundational rules one lives their life by. You apply the situation to the principle and decide.
Mobile homes today are a lot better and do not depreciate as long as you are setting it up on land that stays with it. They are now manufactured homes. Most of these are better built due to being built in a climate controlled warehouse.
But they always go down in value. We had a mobile home for our first home. We bought it brand new and even picked the floor plan, furniture, everything. They wanted $21,000 for it, but got it negotiated down to $17,000. Sold it three years later for $16,000. The only reason we didn't take a huge hit is because we bought it low in the first place. Used the money as a down payment on our first real home.
Yeah, I know people that actually made money from their manufactured homes. They are definitely built much better and have certain standards that they have to follow that makes them not go down like they used to. That's why they cost more these days. They are worth more than they used to be.
@@jimroscovius Those really old mobile homes did go down in value, but nowadays with them being built better plus many are buying them, it helps them hold their value better. I have a regular home and it's went up some over the past 22 years, but since I didn't pay cash for it and had payments, I really won't be making any money off of my home. So unless you pay cash for a home, the interest over the years will eat it up so you don't make any money.
A lot depends on location. I bought a manufactured double-wide in 1997 for $69,000. I sold it in 2019 for $142,500. Today comparable models on the same street are selling for about $240,000.
@@vickieclark5931 They made money on the LAND, not the crappy glued together RV
I’m going to use a mortgage to buy a Rolls-Royce and then that will be my house.
Sounds like a good idea to me. Buy used, insulate, rent a slip and you are good to go.
Tough question, he could probably save a lot doing this. Good luck! 😊
Lol, do you know what B.O.A.T stands for? Bust Out Another Thousand... So no, this guy will not save on a boat like this. Unless he is extremely lucky and buys a boat that never needs any repairs or very few, then maybe he is good.
He can. See it all the time.
I know several people/families who lived in RV's while in the military who were able to become wealthy, partly due to living in RV's while moving from station-to-station.
Their monthly housing allowance covered RV fees with half (or more) left over to save/invest.
Lol I wonder what SV seeker's net worth is... Over the course of 13-15 years this guy built a 70 foot boat made of steel in his backyard in Oklahoma... He made a TH-cam channel out of it and documented the entire thing. He is now in a bay area near the inlet to the Mississippi river. lol. He might be a millionaire and the only one who became one like that.
"If it flies, floats, or fornicates..."
I can only imagine all those folks freezing their butts on the Dam river in Amsterdam every winter… 😂🤣
This is preposterous reason… Having said that.. Ohio ain’t Netherlands… And I know because I have family living close to that border in Belgium!! Been visiting them since high school… In Europe house boasts are no brainer b/c there’s a huge infrastructure that cheapen things down like the mandatory yearly maintenance. In Ohio?!? Not so much… So, yeah, ultimately Dave is right…
I live in Ohio. Dave is right.
I'm sure the majority of those who borrow money to buy a brand new boat (not used) have financial regrets of doing that. You can find great deals on used boats, not on new ones unless you're rich and have money to burn.
Buy the house boat. Don’t listen to him on this one. He would rather you rent than live on a boat you own. Makes no sense.
You don’t own it if you finance it. If he were buying the boat in cash, the answer would be different.
@@benjaminhough8804his money isn't going to waste he is getting something out of his payments. When you rent you never see that money again
It's still debt on a deprecating object, it's still bad math. If he's paying in full cash it might be a little different value proposition.
@@DamianBadalamenti It’s not the best financial decision, but if you pay it off in 3-5 years and you enjoy living on the water, it sure beats the hell out of renting.
@@DamianBadalamenti ok. . . He will be paying rent either way he needs a place to live wether it is a boat or an apartment. The money will be spent regardless might as well get something out of it
Dave is right as looking at the long term is always better than the short term choices.
Dave gives financial advice, not life advice. I have a friend who has accumulated a lot of money by depriving himself of its value. A millionaire that I gave a $20k motorcycle, because he wouldn’t buy it for himself.
Do what you want. Not every choice is about becoming wealthy.
Not sure: but I think the IRS views a boat you live on full time just like a house for mortgage interest purposes
Well instead of buying ahouse, i agree its bad because it goes fown not up, butrather than renting, at least you have SOME value, even if it is going down, opposed to an apartment that has 0 value
Dave=GOAT
❤
I literally never heard anyone call a houseboat a floating trailer or mobile home. Good lord talk about glass half empty.
That is all they are, look at used Yachts. they go for HALF of new. Same with 1M RVs, They do not hold value. Also, when the economy dips, they are sold at a massive discount.
@@AlinaEvil-Triplet yeah I understand that but what if the guy just wants to live on a boat? That's his decision, maybe he likes it. Dave was like, it's gonna get cold on the boat. Some people like the cold lol. People are different, heck I have a friend who's a multimillionaire and he lives in a 2 room appartment because that's how he wants to live.
@@1ButtonDash The point is/was. He should pay CASH, not borrow money on it.
Dave Bumbo nose’s nothing
You're off the hook on "Winnebago," though, Dave. There is no such people, no such language. It's the name other people gave to the Ho-Chunk. So not really a thing. :)
This advice comes from a man who says no matter how much debt you have, go ahead and have as many children as possible.
They're a source of motivation. People change their lives to leave a legacy for their family.
@@1timothydillon Exactly
@@1timothydillon They are also a source of expense to limited budgets.
Many people and families have more children than they can reasonably afford to care for.
You can find many of them at local food banks.
@@1timothydillon Legacy? A legacy of being poor
@@steelcastle5616
Yeah I was volunteering at our local food bank this weekend getting things ready for Thanksgiving crowd.
Must admit from what I see people and families having kids aren’t financially smart about it.
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Convert it into a houseboat and you are set. The bad part is the plumbing because you have to septic tank it.
Rent a slip.
This is more of a social question than financial. Financially it's doable, but socially it's not. Choosing to live on a small boat when you are young seems like social death. Unless you're a fisherman or something. If you're a multi-millionaire and it's a toy then fine.
Why bad social, we have many friends at our marina that we see everyday. 😮
You must be the anti social type and never been around boating community.
It’s like any other neighborhood.