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Is riverside living the next property boom?


Alan de Enfield

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Is riverside living the next property boom? We count the cost of coming aboard as finance deals for houseboats surged 40% last year

  • Finance deals for live-aboard vessels have risen 40% in a year, says one lender
  • As of March, there were 35,130 people with boat licences for rivers and canals
  • Younger buyers considering boats as a cheaper alternative to buying a house 
  • We explore the financing options as well as the ongoing costs involved

 

 

Riverboat living appears to be going through something of a boom, after a leading marine finance lender reported a steep rise in demand for live-aboard vessels.

Finance deals for homes on boats have increased by nearly 40 per cent in the last year, according to Promarine Finance.

With house prices reaching another record high in May and the typical UK home now worth £262,000, it seems some people are seeing canal and river boats as an affordable alternative to the home-buying frenzy.

 

 

Many types of boats can be considered as live-aboard, including powerboats or cruising sailboats, houseboats, or barges and narrowboats.

The purchase price can vary from under £10,000 to over £1million, depending on the size of the boat; its condition; the number of cabins and whether the boat comes with a mooring.

As of March, there were 35,130 people with boat licences for rivers and canals -compared with 34,435 last year and 32,490 in 2012.    

'We've noticed a surge in demand for boat finance, particularly for live-aboard vessels,' said Stuart Austin, director of Promarine Finance.

'The 'race for space' fuelling the housing crisis is pushing buyers to consider alternative and more cost-effective living arrangements.'

The lender also noticed the appearance of a younger demographic, often needing to borrow a higher proportion of a boat's value in order to finance the purchase.

'We have seen a rapid increase in younger people moving to live on the canals on narrowboats and widebeam boats,' said Austin.

'Live-aboards such as canalboats are no longer considered an option for just the retiree, instead drawing people who are seeking alternative lifestyles with freedom from the traditional housing options.

'Younger buyers want to get on the 'property ladder' and boat ownership is a practical and affordable alternative to renting.' 

 

Can you get a mortgage on a houseboat?  

Unless you have cash, securing a loan to finance the purchase of a live-aboard vessel can be expensive.

Marine finance companies typically offer interest rates of between 8-15 per cent, which is significantly higher than the interest rates charged for a mortgage on bricks and mortar.

'There are a few companies that do offer financing but in no way are they competitive, and people bolt when they hear the interest rates,' said Nicholas Austin, sales manager at River Homes.

'Having rates around the same as mortgage loan rates would open up an amazing life on water to so many people.'

The required deposit is also higher than the minimum five per cent required for buying a property.

The minimum needed for a river or canal boat purchase is typically 25 per cent of the purchase price, although there are some lenders willing to allow 20 per cent.

 

 

And there is much more :

 

Are houseboats the next property boom? We count the cost of riverside living | This is Money

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11 hours ago, matty40s said:

The Austin brothers

I wondered about that too: one sells you the boat, the other helps you afford it. That's a good model for a thriving family business.

 

The only "rubbish reporting" which struck me was in the title. If you are in a boat you aren't beside the river, you're on it.

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1 hour ago, Naughty Cal said:

Yes :D

 

I am about to complete on my purchase of a Thames-side marina apartment (Abingdon). 

 

I don't understand how a houseboat or live-aboard can be described as "riverside" unless the boat is lifted out and set on the towpath.  Rubbish journalese taught in second rate colleges teaching the Use of English (like wot I did for S-level in 1963).

 

 

 

 

2 minutes ago, Jen-in-Wellies said:

Shouldn't the title be landside living? If you are on a boat, then being on the riverside is actually a bad thing.

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OWWW   !!!!

 

 

 

 

 

Edited by Murflynn
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