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Jcody2121 03-14-2010 11:06 AM

Older boat or newer boat - pros and cons
 
My top 2 choices for a blue water boat to do a 1 year sabbatical cruise in the caribbean are a Hylas 46 or 49 and a Halberg Rassey 45 or 49. I know both are great boats. We own our house (no mortgage) and my first thought was to buy one of these boats with a 15-20% down payment and then let the rent from our house pay "most" of the payment on the boat. We would use our savings to sail for a year and if we enjoy ourselves and want to do more, simply live on the boat continue to rent the house and save for another 6 mos to 1 year trip. This seems like a pretty good plan to me.

Or should I sell the house and simply live on the boat. The downside to this is, we no longer have a house to return to and WE pay for the boat instead of the person renting our house.

Any feed back is welcome.

Jcody2121 03-14-2010 11:09 AM

Another option I forgot to mention is to buy a cheaper boat maybe half the cost - around 100k spend another 30-50k to get her ready, with this option the boat cost are a lot less, we could still rent the home and/or pay the boat off quicker. A down side is, a loan is harder to get on an older boat (we do have stellar credit though). Also typically more repairs on an older boat.

Architeuthis 03-14-2010 11:53 AM

I'm sure either way would work. Are you keeping the boat after the year? Will you be able to use it? (When I work I can't sail).

A year is not very long. I thought it was but now that I've done that I see that it isn't. If you sail most weekends and can get the boat set up as you like before taking the year off that would be different. Money can only buy so much time.

If I was in that position now I think I would not buy a boat. I would charter. You can spend less money chartering boats for a year, sail in more locations, sail different boats and then when it is done no more expenses and back to real life.

Brezzin 03-14-2010 01:51 PM

I've bought old and I've bought new. If I were in your shoes I would buy the used boat and upgrade/replace as required. Two reasons. 1)Stuff breaks with equal reliability on new boats as well as old 2) boats are a depreciating asset. You will never get close to what you paid for a new boat on the resale market.

sailingdog 03-14-2010 03:04 PM

It depends on how long you plan to sail the boat. If you're just wanting a boat for a one-year sabbatical cruise, and don't plan on keeping her beyond that, it really doesn't make much sense to buy a new boat. The depreciation hit alone could buy a fairly decent size older boat outright.

If you're open to the idea of living aboard and thinking of going cruising long term at some point, selling the house and buying the boat outright, not financing it, might make more sense.

If you're not sure about what your long-term plans are, rent the house and buy an older boat that you can buy outright... then you have no continuing payments on the boat and can use the income from renting the house to finance your sabbatical and any maintenance on the boat.

Quote:

Originally Posted by Jcody2121 (Post 580578)
My top 2 choices for a blue water boat to do a 1 year sabbatical cruise in the caribbean are a Hylas 46 or 49 and a Halberg Rassey 45 or 49. I know both are great boats. We own our house (no mortgage) and my first thought was to buy one of these boats with a 15-20% down payment and then let the rent from our house pay "most" of the payment on the boat. We would use our savings to sail for a year and if we enjoy ourselves and want to do more, simply live on the boat continue to rent the house and save for another 6 mos to 1 year trip. This seems like a pretty good plan to me.

Or should I sell the house and simply live on the boat. The downside to this is, we no longer have a house to return to and WE pay for the boat instead of the person renting our house.

Any feed back is welcome.


Jcody2121 03-14-2010 04:39 PM

Thanks for the comments but here is a little more explanation. When I say "new" I am not really talking about new. I think of it like this... I can buy a 10-15 year old boat and spend at the top end of my range - 275-300k or I can buy an older boat and spend 150 -200k adding 30k - 50k to get it ready. As far as more than 1 year sailing. Our plan is to instead. Buy the boat and move on her shortly there after and rent the house. Since we own the house we could continue to work for 1 year and rent the house. This would allow us to continue to save a lot of money per month. I estimate in 1 year we would have about 35 - 40k to go sailing for one year. Continue to rent the house while we sail pays most of the monthly payment on the boat loan and we use the 35-40k to sial for a year coming home after the year or when money runs thin. We simply pull the boat in and find jobs again and decide if we want to continue. I suspect we will since we both met each other 15 years ago while sailing and this has been our dream for a while. Maybe after 1 year we have much more experience and we save for another year that takes us over to the Pacific. Anyway I think you get the idea now. We are not rich and we are not retired. We are in our 40s, have no debt and want to start cruising. This seems to be a reasonable plan. There are other ways, I just thought I would post this plan to see what people thought and to see if anyone may have done something similar. Seems to me it could be a good way to go.

Jcody2121 03-14-2010 04:48 PM

One more thing. A few of you said to find a boat you can buy outright but here is the down side to that. First, unless we sell the house it would take several more years to save enough for a boat and we would still be dependent on the rental income from the house to go cruising. In addition, a boat is pretty much NOT an investment we realize that. So why not instead let someone else pay for most if not all of your boat, coming from rental income. Since we are in our 40s we are in some prime earning years and we could come home and work hard for a year to reload the cruising kitty. I think what might make our situation different is that so many people that do this are retired and want to escape to the cruising life for retirement. The reason we do not want to wait is because my wife's family has a history of ALS, a terrible disease that has taken her dad at age 62, her brother at age 44 and now her older brother recently diagnosed at 52. All of these people had plans for retirement. You simply never know what life has in store for you, so we simply want to go now, while we are in good health. That is probably the biggest driver for us to go in the next 2 years.

eryka 03-14-2010 05:40 PM

Oh, that's a tough history! We had a cancer scare 4 years ago - there's nothing like seeing your family doctor in the emergency room and having him say "the prognosis is not good" to snap your priorities into focus. Best wishes on your plans.

There's a thread on here somewhere called "escaping the paradigm with $300,000" Sorry I can't find a link, I have pretty limited bandwidth here in Paradise. We bought an older boat for cash, smaller than what you're considering, ours is 33 ft, lived aboard while working and outfitting the boat with exactly what we wanted. Have been cruising since Oct 09 - no turning back. No interest in living on land again.

eryka 03-14-2010 05:54 PM

Sorry, line dropped. Because we learned after cruising for 6 months that we have no interest in living on land again, we'll be selling a couple of investment properties as soon as the market allows. Consider that when you're deciding whether to sell your house - are you emotionally attached to it? What's the market like in your area? Can you live aboard the boat at a marina if/when you end up back at work? You said you own the house free & clear - can your money make you more money elsewhere, or is the rental market where you live a big money maker?

sailingdog 03-14-2010 07:31 PM

I'd point out that for the budget you've gotó$150-200k, you could buy a new Gemini 105Mc catamaran and fit it out as you like. It'd have at least as much space as a 45' monohull, and be far more comfortable at anchor. They also have very good resale value...

As a multihull guy, I had to suggest this. :)

Quote:

Originally Posted by Jcody2121 (Post 580717)
Thanks for the comments but here is a little more explanation. When I say "new" I am not really talking about new. I think of it like this... I can buy a 10-15 year old boat and spend at the top end of my range - 275-300k or I can buy an older boat and spend 150 -200k adding 30k - 50k to get it ready. As far as more than 1 year sailing. Our plan is to instead. Buy the boat and move on her shortly there after and rent the house. Since we own the house we could continue to work for 1 year and rent the house. This would allow us to continue to save a lot of money per month. I estimate in 1 year we would have about 35 - 40k to go sailing for one year. Continue to rent the house while we sail pays most of the monthly payment on the boat loan and we use the 35-40k to sial for a year coming home after the year or when money runs thin. We simply pull the boat in and find jobs again and decide if we want to continue. I suspect we will since we both met each other 15 years ago while sailing and this has been our dream for a while. Maybe after 1 year we have much more experience and we save for another year that takes us over to the Pacific. Anyway I think you get the idea now. We are not rich and we are not retired. We are in our 40s, have no debt and want to start cruising. This seems to be a reasonable plan. There are other ways, I just thought I would post this plan to see what people thought and to see if anyone may have done something similar. Seems to me it could be a good way to go.



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