Boat finance

[Flex]

Thought Id ask for some advice on finance for a boat. Im in a good earning job paying zero rent so i have a fair bit of disposable income..but doing a few figures Its got me buggered how your average Joe paying a mortgage,2-3kids can afford to buy a $90k boat new like I see a few people doing+ being able to afford to go fishing every weekend.when you sit down and look hard at what catching a fish would cost you per week it starts to get scary. is $300 a week worth the effort? makes you realise how large of an money sink boating is....

But im not letting that stop me

So.. Im interested in what finance company some of you use to purchase your boats? lowest interest rate I've found so far is 9.85% anyone do any better?

[BM]

Personally I believe if you cant pay for something with cash then you cannot afford it. I would never borrow money to buy a boat or a car. Only exception to that rule is a house.

[ausandy]

flex, for every 10k you borrow. $50 a week to repay over 5 yrs. roughly.... andy

[Roughasguts]

Yup I agree with BM, a boat is a luxury and it will cost you heaps for very little in return. Shit I think the 3 fish I caught in mine woud of cost me nearly 6k each.

But the booze I have drunk and the fun we had was cheaper than taking the family to the pictures once a week.

So I would say buy a boat not a new one! and borrow only 1/3 of the money required over 5 years then if you have to sell it it's worth much more than you borrowed.

Cheers.

[Chimo]

Hi Flex

Rules are that you don't borrow to buy toys.

Borrow to buy a couple of houses, rent them, sell them, pay capital gains tax then buy your toy and another house.

Interest rates are too high to borrow for toys like boats while houses that you don't live in are totally different; if your accountant is any good talk to him / her* and if not; get a better one.

Cheers
Chimo

PS * See, just one more example of survival in the world we live and love in!

[Scott Ashe]

Hi

I look at it a little differently, I never thought I'd borrow to buy my boat, but I'm single 28 yr old pensioner, who lives at home doesn't drive a motor car, so my boat is my only expense.

So when I thought a new boat would be nice I borrowed about 2/3 of the price and it costs me about $50 a week over 4 years. I'm like you all though, don't catch enough to warrant the cost, but a man has to have a toy or too.

Cheers
Scott

[Roughasguts]

Sounds fair Scott, Mans got to have his toys, wife won't let me have another woman to play with! anyway there to exspensive. So of course exspensive toys it is. I just bought a new caravan (didn't borrow of course) cause I couldn't afford a weekender up the coast, and in case we got sick of the coast we could go inland. But I think we go down the coast to my other favourite spot Batemans bay.

But now I need a more powerfull 4WD to tow it, the Paj sucks so it never stops really, the aquisition of toys. (that's gonna have to wait a long time though)

Just don't get buried in debt, that will stop all your fun and ruin your life.

[Flex]

Millions of Australians borrow to buy motor cars every year, which give 0 return and Cars have 5 times depreciation than a boat. Only thing that significantly depreciates on a boat is the outboard+electronics
The hull if looked after and is of good quality loses very little over say a 5-10year period. unlike a car.

Even The house you live in depreciates its only the land that goes up in price.So I'd rather keep my rental property and borrow for a boat than sell it to buy one.. works out better in the long run I feel.

Anyhow I'd rather borrow a modest amount to buy a boat to do something I love while young enough to enjoy it, than invest for the next 20 years and be to old to enjoy a boat when i can afford to pay cash for one.

Buy I do agree on not going into too much debt to buy toys. My rule is 10% of income on toys per annum . which is reasonable amount i feel.

[Scott Ashe]

I forgot to mention in my earlier thread, that when I decided I would borrow for my new boat it didn't take too long to decide that it show be exactly that "Brand New", because my thinking was if I was paying it off, and I bought second hand and there was a problem, I would have to pay to fix it, in addition to my repayments.

With my rig i have factory warranty

My boat is an Allycraft Rhino 4.10m Dinghy + 25 Yamaha 4 stroke with Electric Start and Power Trim and Tilt.

Just my way of thinking.

Cheers
Scott

[SummerTrance]

Im a part of generation Y. We want things now and dont want to wait. Loans are the way to get things you want in this day and age. If you can afford the repayments, then go for it! I did, and never been happier!

I dont own a house, and other people I know that are my age that do, live very boring lives because they dont have any spare money to do anything, as everything they earn goes into their house repayments.

My missus and I made a decision a couple years ago. At the moment we'd prefer to have the nice car and boat, and live in a rented house. We'll look into property when the market calms down.

[Splash]

Flex - good post.

My thoughts -

Do u think you will be fit and able enough to climb in / out of boats, pull up heavy anchors, launch and retrieve boats, continually sink money into boat, swear and carry on when things go wrong on boats - WHEN YOU'RE 55-60 yo? If yes, then wait to that age. ........... :-)

If not, buy second hand NOW (borrow some and pay cash) and enjoy your life! :-)

Splash

[Flex]

Some interesting thoughts there guys

Never thought a simple question about finance would start a philosophical debate about life choices, but interesting none the less and is a reason I love these forums

I have no doubt I'd be fully capable at 60 as i am at 29. nothing like keeping healthy. But like Summertime said, we're on this planet to enjoy life and you only get 1 chance at it.

Housing is just insane atm, you'd be deadset crazy to buy a house to live in. Actually if you buy and live in your own house your deadset crazy to start with IMO. One of the silliest financial mistakes someone can make, your better off renting. invest some of the money you save from not having a mortgage in shares etc and live life a little easier with your slightly higher cash flow.but thats a whole other topic for discussion and a serious worm can opener..lol

Its funny, I mentioned buying a boat to a few friends of mine and I only need to borrow about $25k and use my own cash for the rest.. They all freaked out when I mentioned im buying a boat for $40,000...


But a week or 2 earlier I was looking at buying another 4x4 for trips up the cape etc..and they never battered an eyelid.

so instead of the second fourby I have decided to buy a bigger boat. Just a different means to an end for me really. But I find it amusing how peoples perceptions vary on what things are worth.

[robersl]

Sounds fair Scott, Mans got to have his toys, wife won't let me have another woman to play with! anyway there to exspensive. So of course exspensive toys it is. I just bought a new caravan (didn't borrow of course) cause I couldn't afford a weekender up the coast, and in case we got sick of the coast we could go inland. But I think we go down the coast to my other favourite spot Batemans bay.

But now I need a more powerfull 4WD to tow it, the Paj sucks so it never stops really, the aquisition of toys. (that's gonna have to wait a long time though)

Just don't get buried in debt, that will stop all your fun and ruin your life.

Mate wife's and girlfriends are dearer than boats

[Dodgy_Back]

If your only going to borrow 25 g ,go and do it.

And while you are borrowing the money rethink some of your investment strategies, re:buying a house

[Roughasguts]

Okay heres another plan then buy a house for 400k and add some extra for a new boat in the loan. You will probably find it cheaper than renting and you still get your boat. But pay the extra off on your mortgage, that way your boat won't acrue intrest over 30 years.

Mate think longer term, I got a mate that's mid 50's never got around to buying the house always the wrong time. Now he's basically screwed, no one going to lend him money, he can't save any, will never have a deposit and he spends more on rent than I pay on me mortgage for me 4 bedroom tripple garage home on the coast. (And I got plenty of toys, there just not brand new except the caravan.)

Anyway This guy plans to retire never ! as he still has to pay rent until he drops dead.
Actually I know a few guy's like that, never got around to it to scary to much commitment, and now regret not buying a house.

Trust me it's not that scary, and now might be a good time to buy, sure intrest rates are up but house prices going down.