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You die-hard CASH guys are so funny. I am all for living within your means. I agree 100%.
But money is still cheap if you qualify. Why would you take money from investments with tax consequences and tie it up in something material. Its better to pay 5 to 6 % on a loan and leave the money invested making more the 5%.
You need money to make money. Having it tied up in depreciating material assets won't do that for you.
Want to share those investments that have had a consistent, more than a 7% (what low rate boat lonas are now) return over the past 3 years?
Stock market, real estate, bonds all either negative or far less than that.
Are you telling me that real estate hasn't been depreciating of late?
And that's been the trend for how long?
Quote:
Originally Posted by LI32
Want to share those investments that have had a consistent, more than a 7% (what low rate boat lonas are now) return over the past 3 years?
Stock market, real estate, bonds all either negative or far less than that.
__________________
That is crap.
Which idiot told you that CO2 only makes up 0.039% of the atmosphere?
I have 2 houses and a commercial rental property all free and clear
I bought the boat five years ago with taxes and trailer 170k it's an 01 G/W 330 put 35k down on a 5.5 intrest note I owe 110k right now it's for sale for 99k and phone doesn't ring much for it. I won't go any lower cause I will buy another boat so might as well keep this one. I figure it would sell somewhere around 90k so that puts me 20k upside down
After running sportfishing boats for 12 years professionally, I got out of that biz years back and swore I'd never own a boat although I love to fish offshore. For the last 6 years my wife has been trying to get me to buy a boat, but it never made sense to me... until a few months ago.
I stumbled into a bank repo on a 25' CC that was rigged to the 9's with anything I could want. Built in 2007, out the door it cost $110,000. The bank was asking $80,000, but I was able to negotiate a cash deal of $49,000 for it. I can use this boat for probably 2-3 years and easily get back what I paid for it since it's in pristine condition with low hours. This was a deal of timing, and I was able to leverage both with cash and the inticement of getting it off their books before December 31st. Buying a boat made perfect sense to me at that point.
I'm all for leveraging as I do it every day in my real estate business, but I would never buy a boat new or used unless I could easily do it with cash. It's a toy and I wouldn't enjoy using the boat half as much if I didn't truly OWN it. It's a pride of ownership thing I guess.
Financing a boat doesn't matter as long as you are responsible in paying it back. It frustrates me to see folks just walk away from their financial obligations (homes or boats) and not care about who ultimately foots the bill, especially when they still have the financial means to ride it out but choose not to.
As the owner of a small business, my business has no debt because banks are loathe to lend money to small businesses.
So, I get a loan where I can for other things ... like boats!
I bought my boats used for a reasonable price ... did get a loan ... then performed the renovation with cash. End result is I could fire sale the boats for what I owe in a crunch.
The best news is ... when I don't owe too much, I'm less likely to want to sell. It's the big debt burden that can make the toy not so much fun anymore.
I'm in the same situation however, my business is debt-free as a result so it was nice now that we are over the initial first year of financial strain
I owe 30 something k on my boat. bought in june of last year. Thats less than used gas older albies are listing for online so i'm pretty sure i'm in the positive
I'm 29 years old, I didn't inherit any money, and I don't have a 6 digit salary. I financed my Sea Hunt and it is worth every payment I make. I love to fish. I love to watch the sunset from Freemason Island in the Chandeleur Sound. I can make the payments easily so it's damn well worth it. I'm not upside down but honestly I wouldn't care if I was. It's more than a toy. It's a way of life!
__________________ 22' Sea Hunt Triton hunting the waters of the Gulf of Mexico from Cocodrie to Destin.
This thread is usless without thanking all the new boat buyers out there. It doesn't matter to me if they pay cash or not, just as long as there is soemone to take the hit for me. They make it possible for some of us to keep ownership on a even plane. I have never been upsidedown on a boat. It seems I'm always right at the point I could sell cheap and have 5 grand in my pockett.
__________________ AKA, The SKIMMER! No way am I reading all that crap!
I'm 29 years old, I didn't inherit any money, and I don't have a 6 digit salary. I financed my Sea Hunt and it is worth every payment I make. I love to fish. I love to watch the sunset from Freemason Island in the Chandeleur Sound. I can make the payments easily so it's damn well worth it. I'm not upside down but honestly I wouldn't care if I was. It's more than a toy. It's a way of life!
Right on brother it's a way of life for me and the wife
oceandansar..I agree with you on wanting another one after you sold this one and that in part is what got me on this whole thing. My fear is after I "gave" mine away I would not find a "deal" on the buy side. I have a buddy that is trying to sell his boat and keeps dropping the price to get some action but can't seem to find the right boat to buy or if he wants the exact boat he wants built the manufacturer isn't all that agressive on pricing.
I'm just going to bump up my payment schedule and have fun with it. I finally got into the marina of choice and my seasonal fees went down from 4200 to 2500 so it would almost be a pitty to get rid of it now.
Maybe I'll sell the other toys like the 20fter, kubota Cut and mini ex and dump that money onto this one.
i always pay cash for all boats and cars. and before you say thats a boast, im a customer home builder who does not have enough cash to buy a toy boat right now!!
anyone want my Contender??
__________________ 18.5' Winner CC
35' Contender twin 250's
"Sorry, not true.
Here is a quote I found: Deducting Mortgage Interest
Taxpayers can claim a deduction on interest paid on a loan secured by their first or second home." -Quote, Lit Up
Gentleman, we are talking about a home equity loan (Lit Up) not a mortgage. And home equity loan interest is ONLY tax deductable when used to pay for home improvement expenses. You can take out a home equity loan for whatever you want, but you ONLY get a tax break for use to improve your home. Can you fudge it, like many other tax breaks, well. . .that is up to you.
i could be wrong but if you make biweekly payments i heard that all you are doing is making one extra payment a year. it does not matter if you make it every 2 weeks or at the end of the year. search for biweekly payments on line and do some research first.
Quote:
This thread is usless without thanking all the new boat buyers out there. It doesn't matter to me if they pay cash or not, just as long as there is soemone to take the hit for me. They make it possible for some of us to keep ownership on a even plane. I have never been upsidedown on a boat. It seems I'm always right at the point I could sell cheap and have 5 grand in my pockett.
exactly. i would never ever buy anything brand new. you are throwing your money out the window and that to me is more upside down than anything else. it does not matter if you buy a $100K boat and put 5k down or 50k down,or if you have a 4 year loan or a 20 year loan. the fact is that the minute you drive or trailer it away you lose 10 - 20 % that is just stupid.
and i thank everyone of you new boat car bike owners - w/o you their would be no used toys for me
I paid cash for mine but see nothing wrong with financing a boat if your payment is within your budget. I'm talking that you don't even notice the money gone when making the payments. If you feel your working half the week or month to pay your payments then it more boat then you need. That does not apply as much to single people.
Love this...How many "financed" your houses....They sure as hell are depreciating assets these days....some realestate may be depreciating on the same rates as boats...things have changed and will never be the same.
I'm 29 years old, I didn't inherit any money, and I don't have a 6 digit salary. I financed my Sea Hunt and it is worth every payment I make. I love to fish. I love to watch the sunset from Freemason Island in the Chandeleur Sound. I can make the payments easily so it's damn well worth it. I'm not upside down but honestly I wouldn't care if I was. It's more than a toy. It's a way of life!
Interesting thread.
As many of you, I was taught to pay cash for toys, only loans on appreciating assets.
WELL, hope you all paid cash for your homes, because manyh people with a mortgage on a house are upside down. Kind of throws a wrench into the "I only mortage an appreciating asset, real estate". Homes have become a huge depreciating asset. Much more of an issue than boat loans. If you can be upside down on your house, why is that smarter than being upside down on a boat/car loan?
Due to good fortune and more good decisions than bad, I am owe nothing on my 2 homes, 1 acreage lot, 2 boats, 5 cars, etc.
I think the average person needs access to financing that they should be able to use if they and the lender believe they can make the payment.
A home is not a depreciating asset. If your home is now worth less than what you paid for it, that just means you made a poor choice and either bought it at the wrong time or paid too much for it!! Everyone who is saying their home is depreciating is basing it upon 2005-2006 real estate values, which were artificially inflated and over stated. Let's see, my house was sold in 2001 for $135,000 and then sold again in 2003 for $160,000 and then sold again in 2005 for $325,000 and I bought it in 2006 for $700,000 and now it's only worth $300,000.....DOH!!!!! Sound familiar to anyone reading this??
however, my business is debt-free as a result so it was nice now that we are over the initial first year of financial strain
