Think I might sell the boat

[Almako]

I'm sure this has crossed all our minds at some stage during the ownership of a boat. Maybe perhaps just to buy another one, be it bigger or smaller. I'm considering it because I have this annoying urge to go into business as a builder and the sale of the boat would bring in a nice amount of cash to get me started. I can't help wonder though if this is all a bad idea as I'll end up later having to borrow more money to buy another boat and I own this one outright. Very frustrating, but hey it's a first world problem right.

Almako
Cruisecraft 625

[bluefin59]

I have been in the same place lately but I have owned the bluefin for 11 yrs now and done a massive amount of fishing out of it. I thought about selling as the last 18 months I have been way busy with work and other things that have slowed my use of the boat to not so often and nearly sold it but I kept it as it is my favourite rec activity . So in saying that it's not going to rot in a hurry and I own it and hopefully things change and my enthusiasm for fishing will return soon so I can get back into it headfirst . Seeing you have a big cruise craft something like that may have tempted me more to sell as it would be a good whack of money to put into something else . Doesn't help does it , lots of luck coming to a conclusion that suits your life at present .. Matt

[Prowl n Wolf]

Mate, a couple of years ago I was in the same situation except for starting a business I wanted to buy a house up at Agnes.
To do that I had sell my Haines signature 632f which was bloody hard. I had a plan that I would down size for a few years and eventually buy bigger later.
I ended up with a Haines 520 prowler that I can't see myself parting with and my shack at Agnes.
Maybe you could downsize so you still have a release and look at going bigger when you can.
All the best with making the decision.

[stevebris]

You will always lose out when selling a boat. Borrow the cash as a business loan and you will get a better interest rate. I would expect you have a bisiness plan you could take to a bank?
If a bank isn't willing to loan you on that business plan then I would caution you at using your own money!

[koastal]

You will always lose out when selling a boat. Borrow the cash as a business loan and you will get a better interest rate. I would expect you have a bisiness plan you could take to a bank?
If a bank isn't willing to loan you on that business plan then I would caution you at using your own money!

Which banks lends on the basis of a business plan ?

They usually prefer stuff they can sell when, when you fall over.

[koastal]

I think its a good idea, selling the boat to help fund your plan. No interest and you wont have time to use it anyways and there is always another boat.

Can be a tough gig being a builder though are you planning on renos or new builds ?

[Almako]

Hey Koastal, the plan is to build spec homes.
Steve Bris, some good points there.
I think having cash would help in many ways including increasing my 30 day accounts with suppliers.
The discussion I had with the bank was more around buying land and building a specie rather than a business loan, I not sure if a business loan will cover those types of purchases? Ultimately I don't need to sell the boat but it would bring the plan forward a couple of years.
Thanks guys for your responses so far!!!!

[koastal]

Hey Koastal, the plan is to build spec homes.
Steve Bris, some good points there.
I think having cash would help in many ways including increasing my 30 day accounts with suppliers.
The discussion I had with the bank was more around buying land and building a specie rather than a business loan, I not sure if a business loan will cover those types of purchases? Ultimately I don't need to sell the boat but it would bring the plan forward a couple of years.
Thanks guys for your responses so far!!!!

Spec building can be fraught with danger Almiko . Are terms on the land you are looking at avaliable?
Holding costs are the biggest risk but can be reduced with good terms and a smart (low build cost - broad appeal) design
Are you a registered buider Almiko. If so maybe a contract build or two, will be less risky for starters.

[Almako]

Hey Koastal, I'm not long out of an adult carpentry apprenticeship so no I need two more years of Supervisor experience. However I have a nominee and am going down the path of a company licence.
Selling the boat just gives me cash flow, believe or not the misses says keep the boat and go fishing often you'll be happier. Can you believe it
I'll make my decision after this years 1770 hook up.

[koastal]

Hey Koastal, I'm not long out of an adult carpentry apprenticeship so no I need two more years of Supervisor experience. However I have a nominee and am going down the path of a company licence.
Selling the boat just gives me cash flow, believe or not the misses says keep the boat and go fishing often you'll be happier. Can you believe it
I'll make my decision after this years 1770 hook up.

Good missus !

Send a private message if you are looking for supervisor work

[gofishin]

I think its a good idea, selling the boat to help fund your plan. No interest and you wont have time to use it anyways and there is always another boat....

Although I understand the concept of not over complicating things at the start of any business venture, I disagree, for several reasons. First two are here:

1.) You will always lose out when selling a boat. (one way or the other)
2.) Borrow the cash as a business loan and you will get a better interest rate...

3rd, when you borrow as a business loan, you can also claim interest and loan service costs etc as deductions. If needed, borrow against the boat.

... I can't help wonder though if this is all a bad idea as I'll end up later having to borrow more money to buy another boat and I own this one outright....

Then you will have a loan with a higher interest rate, and that you can't claim deductions on.

If the shite really hits the fan in a big way, sell the boat to get yourself out of the shite. If only in a small way, and you have to go back to being an employee, you might get away with some short term pain, but can still keep the boat.

... believe or not the misses says keep the boat and go fishing often you'll be happier. Can you believe it ...

Marry that woman, if you haven't already

...
Cruisecraft 625

Lastly, it's a Cruise Craft, can't sell one of those It's like an 'anti Jeep' thing... "you sold a Cruise Craft...!"

Real lastly; do your homework well, then do it again, talk to your accountant and bank manager, and whoever etc (I am neither), and don't take anything on here as gospel
Cheers & good luck.
Brendon



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[SWANY22]

Yea mate go see the bank. Get a good account to right up a plan take to the bank and see how u go. I did the same but I wanted to burrow 1 million to start a construction company far enough I had to put my house on the line but they gave me the money. My house was valued at $380000. They the banks like to see if u got work. cople of letters from people who u are gonna work for stating they are gonna give u work and that should put u on the right track. One thing I've learnt don't sell something u love as it only makes u grumpy and down. I've been goin 6 years now best thing I've evea done gee been to 1770 3 times in the last 6 weeks 😃😃 oh and westpac were the best bank to deal with really went out of there way to make it happen. Cheers Swanny