Financial Question

[aclosereachaway]

I will be purchasing a boat in the next year or two to live on, and eventually use to cruise extensively throughout the South Pacific. I have some ideas of boats that I like, but my real question is about how much to spend and how to make the transaction.

I''m curious what most of you would do if you had a 30,000 dollar down payment. Would you find a boat in that range and pay cash, or buy something that is better taken care of, better quality, or even a little bigger. I want a boat in the 34 to 39 foot range if that helps.

With that said what would you all do in the same situation, generally speaking?

Fair winds,

Will

[sailortjk1]

To purchase a 34 to 39 footer in that price range will probably require some fixing up. A lot of people preffer to go this route. Find a good old boat and take the time to make improvements to her.

This requires not only both time and energy but also additional funds in many cases. You will probably require addtional materials/supplies; epoxy and resin, bottom paint, sails, etc., not to mention that you will probably want to update the electronics, the list goes on and on.

I am a big fan of the yachtworld.com web page. You can search for exactly what it is your looking for; price range, length, even which part of the world you are looking to make your purchase. I found it to be a very valuable tool.

I went the other route. Used about the same ammount of funds for a down payment and financed our purchase. We found a boat that was 2 years old and ready for the water. All we had to do was clean the hull and paint the bottom.

Good luck to you.

[catamount]

With either route, financing a "newer" boat, or buying with cash an "older" boat and fixing it up, you will have additional and on-going expenses beyond your initial $30K down. You might look at your annual budget and see how much you can afford to spend on an on-going basis. Some costs, like moorage, will be similar regardless of which route you take.

I guess the real question is whether you come out ahead fixing up an older boat versus the cost of interest and principle, etc., buying a newer boat. The answer probably really depends on you -- how capable you feel in doing most of the fixing up work yourself versus hiring it done, and how much value you place on doing that work yourself -- by which I mean do you enjoy doing the work, do you think it important to do your own work so that you know your boat inside and out, etc... Or would you be better off working at your chosen profession making money to pay for a newer boat instead of spending your time working on an older boat?

You might also want to consider your philosophical stance regarding taking on debt versus paying as you go. My own view is that incurring debt is not necessarily a bad thing, but why do it if you don''t have to?

Regards,

Tim

[aclosereachaway]

I also and a huge fan of yachtworld.com, sometimes I feel like I live there. As you say a boat in that price range will probably need a fair amount of work, so financing does seem like a better solution to me.

I don''t mind in the least working on the boat, and getting to know the systems and how she''s built. BUT...I do not want to rebuild the boat. A boat like a well equiped, well maintained Tartan 37 seems to be in an attractive price range that will not leave me in debt for too long.

Do you all agree that a boat in the price range of 55-75 thousand would not be at all unreasonable in order to be out of debt fairly quickly? And leave me with plenty of room to slowly upgrade with all the essentials of extended cruising?

I am in no HUGE rush to head out, I want to be free and clear of debt before leaving. I feel that the above mentioned boat(or similar, its just an example) would give me the oppurtunity to pay off my debt in a reasonable amount of time.

Thanks again,

Will

[WHOOSH]

Will, given the initial budget you mention, perhaps it would be worth your time to do a bit of research on what it will take to equip your boat for your Pacific run. Once a given boat is seaworthy and suitably equipped for coastal or near-island cruising, there remain some pretty hefty purchases to make before heading offshore...and these costs are not often considered with formulating the boat-acquisition budget.

E.g. assuming the steering gear is sound (new cables? bushings?) and the rig is fresh (how old will those swage fittings be?), etc., build a budget that might include raft, hand-operated water maker, SSB radio, 406 Epirb, a full chart/guide package, a serviceable dink, some heavy weather sails and a fairly complete service package for your engine, pumps and other boat systems, and you can assemble quite a costly set of purchases. No, you don''t need all these things...but OTOH everything I listed is carried by a large majority of yachts that dip into SoPac cruising waters, so perhaps it''s being both a bit conservative and a bit enlightened to plan the same, at least for now.

Good luck on your search.

Jack

[scottmillington]

I am a great fan of Tartan 37 having owned one for 4 years. Most are now 25 years old or older. Most would be very good coastal cruisers and are great values. To do offshore work however I think you will spend alot to beef up the rig and buy the sails needed to go offshore. Don''t forget yearly maintanence and costs when figuring your budget, especially if your mooring the boat somewhere. 5-to 10 k per year for these cost would be ballpark.

[aclosereachaway]

Jack,

I am definately aware of the equipment involved and required for such an endeavor, and am not taking that lightly. However my wages at the time of purchase will allow me to comfortably afford them over a time period of several years. I am, however, new when it comes to loans and would simply like advice from those more experienced as to what kind of loan is reasonable, therefore helping to suggest a price range for me too look in.

Thanks,

Will