New boat prices rising due to increased costs

[GUMPY]

8 minutes ago, haggis said:

I thought the draw was made on the first of the month . Like others, I have my fingers crossed for tomorrow 🙂 

 

Results are published on the 2nd working day after the 1st so this month on the 2nd. Can be as late as the 4th or 5th depending on weekends etc.

Million pound winners are contacted a day or so before.

No idea when the actual draw is.

[IanD]

4 hours ago, Dobba said:

This topic made me look at what the company that built my boat are now charging. I bought mine, a 60x12 widebeam, end of November 2021 (fixed the price to start the build) - delivered in March. I had about £20K of extras put on it (skylight, bow thruster, euro stern + other things). Came to £96K, no VAT. Sailaway lined + additions so I'm fitting the rest of it out myself. The same boat without all the extras is now £98K, so since last November it's gone up £20K. My boat was also was hit with the previous price rise of about £8K so in less than a year and a half, prices have increased for this same boat build of nearly £30K.

 

It's still cheaper than a house, it's much more of an adventure and the bills are far lower but that'a a crazy hike in the space of a year.

 

Probably not that much different to what I've seen -- I don't have an exact figure because the initial estimate (in early 2021) had a ~20% range because the spec wasn't decided at the time, but if I take the middle figure then the total price will have gone up by about 30% over 2 years by the time the boat is delivered next spring... 😞

 

Given that some materials have gone up by far more than that (100% or even more in some cases) and every supplier (hardware, fittings, electrics...) has also been raising prices this is understandable, a boatbuilder has to buy materials and components and pay their workers. So I agree that the increase is crazy (meaning huge and unexpected), but not unjustified -- if anyone is to blame it's Putin, with smaller contributions from Covid and Brexit...

 

But it's still an unpleasant surprise, even if you can afford it, and the end effect is likely to be a decrease in the number of new boats, and probably some boatbuilders will close. On the other hand once people have decided to get one they might just reduce the specification and cost (or use a cheaper boatbuilder) to keep the price down rather than give up on the idea entirely. Or buy a newish secondhand boat instead of a brand new one, which might then pull the prices of these up too since supply is fixed and demand will go up.

Edited August 31, 2022 by IanD

[cuthound]

4 hours ago, MtB said:

On the subject of being a millionaire, I liked Richard Branson's answer when asked by a school kid "How do you get to be a millionaire?"

 

His witty answer was "First become a billionaire, then start an airline"... very droll! 

 

 

 

 

Similar to the age old question "how do you make a small fortune our of motor racing?"

 

Answer "start with a large one".

[talltales]

8 hours ago, system 4-50 said:

I'm expecting to be a millionaire in 3 or 4 years time.  It should be enough to buy a small new boat - for my grandchild to play with in the bath.

I really needed that belly laugh

[ditchcrawler]

6 hours ago, Loddon said:

Premium bond day is Friday 2nd 🤔

If you were on the million pound train they would have contacted you by now🤭

I didn't need to know that.

[GUMPY]

10 minutes ago, ditchcrawler said:

I didn't need to know that.

I figured you could share in my disappointment. 

Still it could still be a few grand on Friday. 🤔

[Ex Brummie]

7 hours ago, ditchcrawler said:

Tomorrow for me, its Premium Bond day

I'd be quite happy with a few £10'sK. But seriously, when my long term bonds expired with NS&I, I transferred them into premium bonds and have doubled at least the interest I could have earned tying up my pot for 3 years. That's a lifetime at my age. I can still get to it when I want.

[ditchcrawler]

5 minutes ago, Loddon said:

I figured you could share in my disappointment. 

Still it could still be a few grand on Friday. 🤔

I will keep you posted

 

[LadyG]

On 30/08/2022 at 09:15, Arthur Marshall said:

New boats have only ever really been available to those I would regard as wealthy - this includes those who sell houses to buy a boat. The rest of us buy used boats and fettle them.

Considering the state of the system and its likely future decline, there are probably enough boats hanging about hardly used to keep anyone actually interested in cruising occupied, as well as those just looking for something they can dump somewhere near a town and live on. 

I suspect a lot of these hardly used boats are going to come on the market over the next year or two as the cost of living spirals and people decide spending several grand a year for not much is no fun as well as being uneconomic. That should drop the price a bit.

I wonder, the rising cost of energy is going to hit the land dweller more than the boat dweller, so more people might consider giving up rental property and moving on to a boat. Obviously individual circumstance will vary tremendously, but the second hand market may remain bouyant.

[Momac]

On 30/08/2022 at 09:21, Loddon said:

I remember what I believe to be the first £100k narrow boat bought by a friend of mine back in 93/94, it was sold a couple of years ago for £70k 🤔

 

93 = almost 30 years ago.

Inflation since then as below according to the Bank of England 

[Momac]

47 minutes ago, LadyG said:

I wonder, the rising cost of energy is going to hit the land dweller more than the boat dweller, so more people might consider giving up rental property and moving on to a boat. Obviously individual circumstance will vary tremendously, but the second hand market may remain bouyant.

There is something in that but I think most people who pay rent can't afford to buy a boat.

 

I think a lot of people will have to sell up their boats while others will feel pressured to buy as the value of cash evaporates with high inflation.

 

Edited August 31, 2022 by MartynG

[GUMPY]

33 minutes ago, MartynG said:

93 = almost 30 years ago.

Inflation since then as below according to the Bank of England 

So way short of 250k that expensive boats are rumoured to cost now

 

 

[Mad Harold]

1 hour ago, LadyG said:

I wonder, the rising cost of energy is going to hit the land dweller more than the boat dweller, so more people might consider giving up rental property and moving on to a boat. Obviously individual circumstance will vary tremendously, but the second hand market may remain bouyant.

Don't really agree.

A boat dweller will have to still buy gas, fuel, and wood/smokeless, and pay increased mooring fees.

Marinas will have to charge more for their services, as their costs are rising.

We all have to buy food, and I am sure you have seen how prices are rising.

I think there will still be the same differential between boat living and land living.

 

[Momac]

7 minutes ago, Loddon said:

So way short of 250k that expensive boats are rumoured to cost now

 

 

Yes 

Some things go up in price more than inflation and some things go up in price less than inflation.

I thought  £250k did   sound a lot for a new narrowboat but it seems not far off the mark

 

 

[George and Dragon]

42 minutes ago, MartynG said:

93 = almost 30 years ago.

Inflation since then as below according to the Bank of England 

 

Depends what you're buying...

 

Computers and electronics generally are much cheaper.

Take the Macintosh LC520 (also known as the Performa 520) as an example - it had a Motorola 68030 processor with an optional 68882 co-processor, 4MB RAM, a 640 x 480 pixel display and cost USD2000.

By 2021 an equivalent machine might be the M1 iMac with the ARM M1 processor, 8GB RAM, 4480 x2520 pixel display costing £1249.

Cars are another product whose real cost has reduced over the past 30 years. 

 

However, in 1993 I bought a 3 bed house in Doncaster for £23,000. How much would that be now? I'd be surprised to get much change out of £600,000.

[Momac]

12 minutes ago, George and Dragon said:

 

 

 

However, in 1993 I bought a 3 bed house in Doncaster for £23,000. How much would that be now? I'd be surprised to get much change out of £600,000.

Sounds like 3 bed house prices were very cheap in Doncaster in 1993 and are very expensive now.

 

[George and Dragon]

8 minutes ago, MartynG said:

Sounds like 3 bed house prices were very cheap in Doncaster in 1993 and are very expensive now.

 

The airport made a huge difference in about 2001 - prices effectively trebled in a few months. And nationally house price inflation has been very silly for a very long time.

[Momac]

3 minutes ago, George and Dragon said:

The airport made a huge difference in about 2001 - prices effectively trebled in a few months. And nationally house price inflation has been very silly for a very long time.

Would that be the airport that is about to close ?

[peterboat]

15 minutes ago, MartynG said:

Would that be the airport that is about to close ?

A rescue is being talked about Peel holdings own it, I wonder if it's the same owner of the Bridgewater?

58 minutes ago, George and Dragon said:

 

Depends what you're buying...

 

Computers and electronics generally are much cheaper.

Take the Macintosh LC520 (also known as the Performa 520) as an example - it had a Motorola 68030 processor with an optional 68882 co-processor, 4MB RAM, a 640 x 480 pixel display and cost USD2000.

By 2021 an equivalent machine might be the M1 iMac with the ARM M1 processor, 8GB RAM, 4480 x2520 pixel display costing £1249.

Cars are another product whose real cost has reduced over the past 30 years. 

 

However, in 1993 I bought a 3 bed house in Doncaster for £23,000. How much would that be now? I'd be surprised to get much change out of £600,000.

In some areas of Doncaster they are way cheaper than 600k!

[Momac]

4 minutes ago, peterboat said:

A rescue is being talked about Peel holdings own it, I wonder if it's the same owner of the Bridgewater?

 

https://aviationsourcenews.com/news/petition-against-doncaster-sheffield-airport-closure-hits-over-80000/

[talltales]

Bare with me on this question, it will become relevant to the topic a bit later... As someone who has spent six months a time at sea, for nearly ten years sharing a double bunk bed and small cabin with other crew mates, I am used to, shall we say less than spacious living. Cut to present day where I have been seeking a narrowboat originally no longer than a 45ft for a liveaboard that my budget (had it been 2020) of £37000 would have most likely garnered more worthwhile results. Here's the rub, I'm 6ft 6. I have found very few boats with that headroom bar Liverpool Boat builders. Today one came up with 6ft 6 headroom, but its 33ft. My question to you and more relevant to this thread... Should I purchase this for considerably less than my £37000 budget (its £30,000) Leave £7,000 in my savings account. Get myself all importantly established to a life on the canal to then sell in a year or so after finding a bigger boat? With the rising cost of boats, what are peoples thoughts on re-selling a 1993 33ft trad stern narrowboat in year or so? All being there are no major costs for me in that year, do you think I'd lose money or perhaps make a small profit? Answers on a postcard  

[IanD]

1 hour ago, Loddon said:

So way short of 250k that expensive boats are rumoured to cost now

 

 

Going by quoted prices you can still get a boat today similar to the one in 1993 for about the same £175k or so. Or should you choose you can pay considerably more for one with (expensive) equipment that didn't exist thirty years ago like big LFP batteries, inverters and so on...

 

For sure boats are *much* cheaper now compared to houses than they were then, but that's because house prices have gone up by a lot more than inflation where boat prices haven't. 

Edited August 31, 2022 by IanD

[GUMPY]

11 minutes ago, IanD said:

Going by quoted prices you can still get a boat today similar to the one in 1993 for about the same £175k or so.

The 93 boat had all the technical wizardry that was available then. Not a lot by todays standards  I will grant you that.

[LadyG]

20 minutes ago, talltales said:

Bare with me on this question, it will become relevant to the topic a bit later... As someone who has spent six months a time at sea, for nearly ten years sharing a double bunk bed and small cabin with other crew mates, I am used to, shall we say less than spacious living. Cut to present day where I have been seeking a narrowboat originally no longer than a 45ft for a liveaboard that my budget (had it been 2020) of £37000 would have most likely garnered more worthwhile results. Here's the rub, I'm 6ft 6. I have found very few boats with that headroom bar Liverpool Boat builders. Today one came up with 6ft 6 headroom, but its 33ft. My question to you and more relevant to this thread... Should I purchase this for considerably less than my £37000 budget (its £30,000) Leave £7,000 in my savings account. Get myself all importantly established to a life on the canal to then sell in a year or so after finding a bigger boat? With the rising cost of boats, what are peoples thoughts on re-selling a 1993 33ft trad stern narrowboat in year or so? All being there are no major costs for me in that year, do you think I'd lose money or perhaps make a small profit? Answers on a postcard  

A lot depends on the individual design and layout whether the space of any boat is made best use of for the owner. I think it might be a good idea to try the small boat, and sell it if you have accumulated another £30K in the meantime. The problem might be that you find a suitable boat ( which has already proved difficult ) the owner will not want to wait till you sell yours. 

I know your bank account looks healthy enough, but it would be nice to have a more comfortable home, not one that is one stage from bunking up with a crew member.

It's impossible to know what is going to happen in the future, things are too unstable in other countries, and our government cannot sustain the economy as it is.

 

Edited August 31, 2022 by LadyG

[IanD]

5 minutes ago, Loddon said:

The 93 boat had all the technical wizardry that was available then. Not a lot by todays standards  I will grant you that.

That was my point. Before the last couple of years of big price rises, I don't think the inflation-adjusted prices *of similar boats* has changed much over those 30 years -- the difference is you can now spend a lot more on equipment if you want to, and Putin/Covid/Brexit have put prices through the roof... 😞

Edited August 31, 2022 by IanD