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Much needed kick up the *rse needed?


NB DW

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I'm conscious that the written word doesn't always come across as intended and is open to interpretation by the reader.  And so I thought it worth at least saying that none of the below is intended to come over as cloaked brag etc about the choices I've got.  Instead it's to gain the opinion on here which I'm sure will be reflective of varying different age groups, life experiences etc...

 

I've relatively new to boating, my last boat being an Aintree 25ft, which I sold a few weeks ago.

 

I'm in my mid thirties, single, no dependents and have a very decent income and I'm on the housing ladder.  I've a relatively small amount of personal unsecured debt - £12K - and very modest outgoings, largely because I don't choose to buy/subscribe/lease expensive non-essentials which drain money, boats aside obviously!

 

I used the Beetle extensively, living aboard 6-7 days a week, for a three month period at once stage.  I had the luxury of going back to my home which was only 15 minutes away from the mooring to wash clothes etc.  And with having the house I didn't have to worry about fitting everything on to the boat.  But by and large the boat was used for weekends and weeks away.

 

The idea behind selling it was to buy something much larger and liveaboard full time.  I'd then taken on a lodger rather than let the house out, at first anyhow, which would still allow me the benefits mentioned above plus retaining a resedential address. 

 

Now that I've got the money in the bank from the sale, plus my savings, I'm beginning to talk myself out of it.

 

I've found a cracking boat and had an offer accepted.  However, it means borrowing a little more money on top of my current personal loan.  Taking emotion out of things, the 'right' thing to do surely would be to clear my debt instead and chuck a wedge in my stocks and shares ISA.  Instead, I'm wanting to do the opposite!  It's not that it's not affordable but maybe not sensible or rational.

 

The flip side is, life's too short.  My mum was diagnosed with Alzheimer's in her mid 50s, plenty including my grandparents, worked and saved their whole lives only to barely make retirement.  And with what's going on in the world at the moment I'm sure many will probably be thinking the same.

 

I'll still own a home (well so long as I pay the mortgage!) and if it ever came to it and I had no other option, I could always sell the boat on.

 

So what do you reckon?  Hit the button on the deposit tomorrow or risk losing the boat?  Or bank the cash, clear the debt and be sensible....

 

 

 

 

Edited by NB DW
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When you get old, you will probably (like me) regret some things that you did and be quite pleased with some other things that you did  but could have done better.

You will though most likely regret much more things you didn't do.

So go ahead and splash the cash to do what you want.

My father skrimped and saved all his working life and when he retired was too infirm to enjoy the fruits of his savings.

I got them!!! 

Cheers Dad!

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My income's tied to a fixed location and likely always will be.  That said, having a boat would also allow me to move easily for a new job.  I've been flexible with locations in the past and it really helped me climb the ladder.

 

I'm in the north west so moorings for a 50ft in a nice marina are around £2,500.  I'm awaiting a spot to come up at the end of garden farm moorings I've had before which work out quite a bit cheaper still, and there's hook up etc too.

 

Initially with me taking on a lodger there'll be no need to use a agency or agent etc.  I'll advertise the room privately and sell it on the basis I'm a live-out landlord which will be attractive to most would-be lodgers who are often forced to live in a house of multiple occupancy.  The mortgage provider has no problem with a lodger and I can up my home insurance accordingly too.

 

I'd be a little financially better off letting the house out - I have consent to let - but wouldn't have a resedential address, I'd be taxed 40% on the profit whereas having a lodger attracts no income tax up to £10,000 a year, and at least I can keep a good eye on the place as I can come and go when I like.

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5 minutes ago, NB DW said:

My income's tied to a fixed location and likely always will be.  That said, having a boat would also allow me to move easily for a new job.  I've been flexible with locations in the past and it really helped me climb the ladder.

 

I'm in the north west so moorings for a 50ft in a nice marina are around £2,500.  I'm awaiting a spot to come up at the end of garden farm moorings I've had before which work out quite a bit cheaper still, and there's hook up etc too.

 

Initially with me taking on a lodger there'll be no need to use a agency or agent etc.  I'll advertise the room privately and sell it on the basis I'm a live-out landlord which will be attractive to most would-be lodgers who are often forced to live in a house of multiple occupancy.  The mortgage provider has no problem with a lodger and I can up my home insurance accordingly too.

 

I'd be a little financially better off letting the house out - I have consent to let - but wouldn't have a resedential address, I'd be taxed 40% on the profit whereas having a lodger attracts no income tax up to £10,000 a year, and at least I can keep a good eye on the place as I can come and go when I like.

Yeah go for it.  Sounds like you have the bug and just want a bigger boat.  At least you have the house to fall back on if things don't work out and so long as you keep it in good order - and don't have an arsehat for a lodger - it will continue to accrue value.

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Sounds like you’ve done the financial research and you feel secure. 

 

Do it and enjoy. 
 

“better to regret something you’ve done than something you haven’t “ Butthole Surfers ?

Edited by Goliath
And if you see your mom this weekend be sure to tell her Satan
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The house is a small, new-ish build, so should be easy to keep on top of.  Without wanting to sound like an idiot, lodgers have far fewer rights than tentants and eviction if far easier should I pick the wrong person.  That's another reason I'm probably going to go down the lodger route too.  Plus it's nice to know I can walk into the property at any time to check on things.

 

I do feel secure in doing it but most would think I'm mad for emptying my bank account, taking on more debt, to buy a £50K boat given the state of the world at the moment.

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Do it. Just do it.

As you said yourself "life is too short" and if my 72 years have taught me anything it is that it is better to learn from your mistakes than it is to wonder "what if?"

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Thanks everyone.

 

Sometimes I can't help but feel that when we say "life's too short" it's a way of justifying a decision we know isn't sound.  Almost like it trumps all sense and logic.  But at least I can back it with saying I could always sell the boat if things didn't work out I suppose.

 

Family and friends reckon I should go for it too.  Money has no value beyond the happniness it brings.

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1 minute ago, hovrin said:

Do it. Just do it.

As you said yourself "life is too short" and if my 72 years have taught me anything it is that it is better to learn from your mistakes than it is to wonder "what if?"

As the man says... ultimately you don't regret the things you have done, moreso the stuff you didn't do.  If you are paying 50k for a 50ft boat it's also probably in good nick.   The main argument that people use against buying a boat is always the depreciation factor, but it helps if you start out with something in good condition.

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You've already proved that you can live on a boat and know what is involved so go for it!  So many people who come on here asking about buying a boat to live on have absolutely no experience of boating so you are way ahead! 

 

haggis

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5 minutes ago, The Gravy Boater said:

As the man says... ultimately you don't regret the things you have done, moreso the stuff you didn't do.  If you are paying 50k for a 50ft boat it's also probably in good nick.   The main argument that people use against buying a boat is always the depreciation factor, but it helps if you start out with something in good condition.

It's a little under 50ft but from a well respected builder with a very decent specification and shell, built in 2007.  It could do with a little cosmetic attention but we'll see what the survey throws up.

 

I'm paying a sizeable chunk less than the asking price too.

4 minutes ago, haggis said:

You've already proved that you can live on a boat and know what is involved so go for it!  So many people who come on here asking about buying a boat to live on have absolutely no experience of boating so you are way ahead! 

 

haggis

Thanks.  That's true.  But I was a bit of a softie, nipping home and doing the washing etc.  That said, being aboard a 25ft boat that didn't even have a 6ft 10 beam too, was largely enjoyable if not a bit limited.  So I reckon if I've done that and liked it then a 50ft with far more space and amenties should be even better.

Edited by NB DW
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1 minute ago, NB DW said:

It's a little under 50ft but from a well respected builder with a very decent specification and shell, built in 2007.  It could do with a little cosmetic attention but we'll see what the survey throws up.

 

I'm paying a sizeable chunk less than the asking price too.

Well you are in the privilaged position of still having a home while looking for a boat.  Do you know much about the seller and previous owner(s) / use of the boat?

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Just now, The Gravy Boater said:

Well you are in the privilaged position of still having a home while looking for a boat.  Do you know much about the seller and previous owner(s) / use of the boat?

Absolutely and that's why I was mindful about this coming across as some sort of boast.  The house is nice but modest and managable, and in a decent location, so I'm very fortunate.

 

It's had 3 owners from new.  The current third owner has owned it around 18 months - it was bought as a liveaboard - evidently something's not worked out perhaps as he's moved back to land.  The boat is for sale at the same broker they bought it from and for the same price, I think, as they paid.  I've put a number of bids in only to get knocked back, until today.

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Not sure now is the best time for a stock market type ISA or anything else linked to the financial services industry. Invest all yer money in a bote. 70foot if you are a midlander/southerner, 57 foot if you like the North.. But, do NOT mess about doing things in a half baked way, move 100% onto the boat, sell any stuff that won't fit onto the boat and rent the house out using a reputable agent. Severe all emotional links with the house, it is just a source of income (and investment).

 

..................Dave

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1 minute ago, restlessnomad said:

how much are you borrowing in terms of your yearly income?

Including what I already owe and what I need to borrow - £20K against £56K gross income.  It's a personal loan spread over 8 years but I'd be making overpayments.

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Just now, NB DW said:

Including what I already owe and what I need to borrow - £20K against £56K gross income.  It's a personal loan spread over 8 years but I'd be making overpayments.

then you can easily do it. Personal loan rates are cheap now a days right?

I particularly like your idea of lodger, do not let the whole property. May be airbnb the other room once a while (weekends) so that you still got control of your house.

 

 

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2 minutes ago, dmr said:

Not sure now is the best time for a stock market type ISA or anything else linked to the financial services industry. Invest all yer money in a bote. 70foot if you are a midlander/southerner, 57 foot if you like the North.. But, do NOT mess about doing things in a half baked way, move 100% onto the boat, sell any stuff that won't fit onto the boat and rent the house out using a reputable agent. Severe all emotional links with the house, it is just a source of income (and investment).

 

..................Dave

It's hard to say.  The worst is yet to come, potentially.  But I've been quite lucky and put a chunk in around April across varying index trackers and came out with £1200 more.  The shares in these funds have since been sold and it's readily available cash now.

 

I think you might have a point with the house though, part of me does want to do it 'properly' so to speak.  It's just if I end up with a nightmare non-paying tenant it'll be far harder to manage than it would be with a lodger who turned out to be an idiot.

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27 minutes ago, NB DW said:

The house is a small, new-ish build, so should be easy to keep on top of.  Without wanting to sound like an idiot, lodgers have far fewer rights than tentants and eviction if far easier should I pick the wrong person.  That's another reason I'm probably going to go down the lodger route too.  Plus it's nice to know I can walk into the property at any time to check on things.

 

I do feel secure in doing it but most would think I'm mad for emptying my bank account, taking on more debt, to buy a £50K boat given the state of the world at the moment.

I think (but do check) that to have "lodgers" you as house owner have to live on the premises, other wise they are "Tenants" with all that entails.

 

Bod.

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2 minutes ago, restlessnomad said:

then you can easily do it. Personal loan rates are cheap now a days right?

I particularly like your idea of lodger, do not let the whole property. May be airbnb the other room once a while (weekends) so that you still got control of your house.

 

 

3.4% I think with NatWest who I've got the current loan with, and they'll top it up with the extra I need.

 

I think I might start with the lodger route initially and see how it goes.  One of the selling points I'll be using is that I won't be there, so in essence they're getting a whole property, utilities, council tax etc included, for £400 a month.  The rooms aren't huge but the property's in a nice location and absolutely immaculate. 

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