Young first time buyer - Boat&Financing Options

baltiace · #1 (**permalink**) 11-10-2008

Well, I made up my mind to take the crazy plunge to "try out" the live aboard life style and pursue my sailing dreams (weekend while working full time). I found a live aboard 40' slip available in the Baltimore inner harbor area and put a deposit down to hold the spot for a year. Now all I need is a sailboat boat...the start of the hard part. I've been looking for a while and feel a boat in the 30' to 37' size range would suit me. I would prefer to purchase something sea worthy over a Catalina or Hunter but budget is really tight without financing.

Boats I like:
Hallberg-Rassy 33'..maybe 30'
Freedom 30'
Hans Christian 33' (one can dream, right)

Boats I'll probably have to settle for with straight cash:
30' Catalina or similar well equiped...bay sailer
35' Morgan

I'm not interested in buying a boat that needs alot of upfront work.

Some of my specifics:
1) Estimate to have ~15k+ cash in May '09 when I want to make the purchase. Could hold off longer but I'm in a $1350/month rental lease that ends in May.
2) Gross salary high $70s to high $80k depending on bonuses. I'm a sales engineer with the same company over 5 years (I'm 27yrs old).
3) Credit score about 700.
4) Debits 16k '06 truck (stupid purchase) / 2k student loans.
5) Assets 15k 401k (used to be 25k ouch!) / truck probably what's owed. ESOP around 120k but I don't think its used to factor net worth since its only available upon termination or retirement.

Got turned down on a $45k pre-approval from my credit union, haven't tried anyone else yet. I believe its was due to my low net worth and the fact my current rent goes against liabilities. Also most of the boats I'm interested in are over 20 years old...which seems to be a problem.

I would appreciate any advise on financing options that I should try given the recent bad market climate....boat choices. Anyone else have a similar desire and finding financing difficult to come by?

hazmat17 · #2 (**permalink**) 11-10-2008

Why spend the money on a blue water boat if you are working M-F?

Assuming it is just you, you could go a little smaller and purchase a coastal crusier for cash. Then save the monthly payment you are avoiding towards something larger.

For example, there is a Freedom 28 listed in Swampscot, MA for $19,900, but it needs a little work (the cushions stink something awful (mildew?)).

Plenty of Catalina 25 to 28s or even some older 30s for <$20K.

Delirious · #3 (**permalink**) 11-10-2008

Figure 20% down on the boat and $6,000 to $10,000 as a cushion that may be needed to sink in fast (or to keep from sinking fast) bayond all your other short-term living expenses. Plus you have to insure/slip/register up front and that's $2,500 to $3,000 depending on how many months out the slip is for (6 mo or 12 mo).

I forsee banks/lenders dropping the "no money down" philosophy and insisting on the 20% chunk up front.

You should be able to find a Catalina 30 for $35,000 or a Han Christian 33 from about 1890 for the same price. Seriously, I don't think the oldest Hans Christians have yet fallen to what a NEW C30 goes for.

Freedom 30 may be a good choice. I know of a very nice F32 that may be on the market come spring on the Eastern Shore.

sailingdog · #4 (**permalink**) 11-10-2008

A bluewater boat will cost more and be less well suited to living aboard, since they generally have smaller interiors due to their design. If you're going to be working a day job and living aboard, why spend the money on a bluewater boat???

baltiace · #5 (**permalink**) 11-10-2008

Quote:

Originally Posted by sailingdog

A bluewater boat will cost more and be less well suited to living aboard, since they generally have smaller interiors due to their design. If you're going to be working a day job and living aboard, why spend the money on a bluewater boat???

I'm planning on a 5-7 year work plan to save enough money to do a 2-3 year budget cruise. Right now, I can only get away from work 2 weeks max so I'm limited to the Cheasepeake sailing area.

I do see the sense in picking up a late 1970s 30' for a live aboard for around $15k and sale it in 5 years towards for something more suited for cruising. Its logical that in 5 years I'll have a better idea what type of boat I really want. I do kind of think the market is down right now on boat prices...some good deals out there.

I've seen some 1978-1979 30' Catalinas listed for $15k (any model specifics issues I should be look out for?). Regardless on boat would like to get a reverse cycle A/C unit for summer time (cost?)....have a preference towards nice teak interiors as well.

sailingdog · #6 (**permalink**) 11-10-2008

Baltiace-

You're probably not going to find a nice teak interior on a boat in your current price range. Go with a nice production boat right now... live aboard it, sail it, get a feel for what you like/dislike...get the cruising boat about six months before you're actually going to leave...so you can outfit it...get used to sailing it...and go.