Living afloat - CHEAPLY.

[bottle]

SNIP>>>>>>>>>>>>>>>>>>>Havnt read the posts concerned but I do hope we arnt all goin into panic mode after the weekends fiasco?

I did read them and the shouting had reached 7 on the scale, no panic mode just correct moderating.

 

There was a problem though, I nearly joined in.

[Nine of Hearts]

In order to participate in the waterways world you must have this, you mustn't do that, You should have this mindset????

 

My experience of the waterways must be extremely singular in that I've not yet met any jack-booted nazis. One would think they abounded given the criteria that are seemingly required to be a "good boater".

 

(Someone else made me post this, I am only obeying orders).

[Maverick]

My girlfriend and myself have actually been considering selling our 30 footer and buying a larger boat with the intention of living onboard. At the moment we both have a flat each that we rent although she virtually lives with me.

 

In any desperate sittuation involving finances folk will always look at the available options and do what is best for themselves. Its called survival and if we are talking about folk choosing living on the water as a cheap solution to their housing crisis then yes we all do what we have to do and it has nothing to do with love of the waterways or the environment in this instance.

 

Many of us have been aware in the past of this cheaper alternative but is telling others through this forum to go for it and its great really a good idea?

 

To all those that do livaboard at present ask yourselves one question. Are livaboards welcome on the waterways or just tolerated as there arnt that many and if they keep their heads down they go mostly un-noticed.

 

How un-noticed will you all be if you keep telling everyone what a wonderful cheap alternative it is and you are joined by thousands more?

 

Something will need to be done about the sittuation. Be careful you arnt all shooting yourselves in the foot.

 

I say this for selfish reasons because if we make the descision its the life for us I would like to think the opportunity is still there for us to do it and hasnt been taken away by the powers that be.

[NB Alnwick]

We enjoy living on our boat and spend as much time aboard as we can but it is by no means a cheap alternative to living in a house. Those who think that a boat provides an inexpensive lifestyle are just kidding themselves.

[carlt]

We enjoy living on our boat and spend as much time aboard as we can but it is by no means a cheap alternative to living in a house. Those who think that a boat provides an inexpensive lifestyle are just kidding themselves.

True, to a certain extent, but I could take the equity out of the house I'm sat in now, buy a boat and have the same living expenses, minus the mortgage. It's not a big mortgage but it would cover all the other expenses of living on the boat, quite easily.

 

I don't think the difference is between living on a boat against living in a house, but living with or without a mortgage.

[chris w]

True, to a certain extent, but I could take the equity out of the house I'm sat in now, buy a boat and have the same living expenses, minus the mortgage. It's not a big mortgage but it would cover all the other expenses of living on the boat, quite easily.

 

I don't think the difference is between living on a boat against living in a house, but living with or without a mortgage.

 

But then you're living off your capital and that may not last the 20, 30 or even 40 years that it might have to. You won't be able to live off the interest on any savings unless you have substantial savings (> £500K - even that will only give you £25K a year). Further, a house is an appreciating asset long term. A boat is definitely not.

 

Chris

[carlt]

But then you're living off your capital and that may not last the 20, 30 or even 40 years that it might have to. You won't be able to live off the interest on any savings unless you have substantial savings (> £500K - even that will only give you £25K a year). Further, a house is an appreciating asset long term. A boat is definitely not.

 

Chris

I was talking about releasing the equity and renting the house out, not selling it.

I've never really understood the point in selling a house, as long as the rent pays for the mortgage you can take out the equity and still keep the house.

 

Edited to say: Unless the mortgage is paid off but, even then, I'd just remortgage.

Edited December 5, 2007 by carlt

[NB Alnwick]

I don't think the difference is between living on a boat against living in a house, but living with or without a mortgage.

 

A mortgage can be a huge commitment but it is often the cheapest way of financing a project. This is one of the real benefits of owning a house - if you need a cheap loan you can usually get one. We were successful in getting an incredibly cheap mortgage on our house and to be sure it really beats the rates offered by credit card and store card companies . . .

[chris w]

I was talking about releasing the equity and renting the house out, not selling it.

I've never really understood the point in selling a house, as long as the rent pays for the mortgage you can take out the equity and still keep the house.

 

Edited to say: Unless the mortgage is paid off but, even then, I'd just remortgage.

 

But your original premise was. "I don't think the difference is between living on a boat against living in a house, but living with or without a mortgage".

 

So now I'm confused if you're thinking of remortgaging???

 

Chris

[carlt]

But your original premise was. "I don't think the difference is between living on a boat against living in a house, but living with or without a mortgage".

 

So now I'm confused if you're thinking of remortgaging???

 

Chris

Sorry I was unclear. I should have said "without the expense of a mortgage". I'd never be without my mortgage, I love it, especially when someone else is paying it.

 

When the tenants have finished paying for it, I get a free house.

Edited December 5, 2007 by carlt

[NB Alnwick]

When the tenants have finished paying for it, I get a free house.

 

Wow - we never had you down as a capitalist!

 

But then, you are really doing this for philanthropic reasons - helping your poor tenants to get a decent roof over their heads . . .

[Ratsonline]

Something else to consider:

Mortgage on house all paid up? Enjoy the cut? Houses of similar size to mine in my area are let out at around £875 per calendar month, Let your property live on your boat until you get too old to cope with it. Do your sums. Also to consider, when you do get "a bit past it" what about living in your home and letting out your boat!

Don't do this myself, I enjoy the comfort of home, and the freedom to visit my boat just to potter around or go off on a cruise whenever I wish to.

 

Edited to correct typo. One day I will be typo free!!!

 

This is what my partner and I are going to do next year, we are currently sorting out the boat and once that is done will sort the house out for renting. We are not doing this as a cheap option but as a means to have an easier way of life.

[Dave45]

A mortgage can be a huge commitment but it is often the cheapest way of financing a project. This is one of the real benefits of owning a house - if you need a cheap loan you can usually get one. We were successful in getting an incredibly cheap mortgage on our house and to be sure it really beats the rates offered by credit card and store card companies . . .

dear oh dear

[NB Alnwick]

dear oh dear

 

What did you intend to mean by that remark?

[andywatson]

m/albums/y152/supermalc/Boating2007/boston07oct2.jpg[/img]

Edited December 5, 2007 by andywatson

[carlt]

Wow - we never had you down as a capitalist!

 

But then, you are really doing this for philanthropic reasons - helping your poor tenants to get a decent roof over their heads . . .

No, I neglected to have any trust in any pension fund or savings account.

 

My only investment in my future is investment in myself.

 

It is mistrust of capitalism, but obligation to live in a capitalist framework that has made me independent, not a capitalist.

 

Edited to say. I have always been a fair (often too fair) landlord, though and I've never had to force anyone to be a tenant.

 

This is, of course, immaterial as I am no longer a liveaboard, nor intend to be again.

Edited December 5, 2007 by carlt

[chris w]

dear oh dear

 

I agree with you Dave.

 

It's like the sad commercials for loans on the TV where some dumb-ass says. "That's a lot less than we are paying now each month............ and we've got enough left over for a holiday!!!!" aargghh

 

The reason that their debt payments just dropped is that the loan company now have them suckered in for the next 30 years!! It's the debtors low IQ that got them in debt in the first place and they now can't understand why they will be in hock for life.

 

Chris

[BlueStringPudding]

Slightly but this is my favourite website (sad, but true) And it's through the excellent advice on this website that I've been able to finance the buying of our boat and avoid a few pitfalls, and boost my credit rating...

 

Money Saving Expert

[andywatson]

Probably the best answer to questions on the cost of living aboard is that it costs the same as living in a small house.

I'd even go so far as to say that (per square foot), the capital, depreciation and operating costs of houses are cheaper.

This is just a gut feeling based on how often and for how much I pay bills on the boat and house. I'm sure plenty of examples that support or contradict this can be offered but on average it won't be far adrift.

Certainly the time I spend working on the boat is much more than what I expend on the house and garden.

 

To summarise: Don't buy a boat for cheap accomodation but do so if you if you will enjoy it with both it's demands and rewards.

 

PS Just read the post above by Stonehenge and agree fully.

Edited December 5, 2007 by andywatson

[NB Alnwick]

I agree with you Dave.

 

It's like the sad commercials for loans on the TV where some dumb-ass says. "That's a lot less than we are paying now each month............ and we've got enough left over for a holiday!!!!" aargghh

 

The reason that their debt payments just dropped is that the loan company now have them suckered in for the next 30 years!! It's the debtors low IQ that got them in debt in the first place and they now can't understand why they will be in hock for life.

 

Chris

 

This may be true but those who are not in overall debt - i.e. where liquid funds exceed any sums owed as a result of a mortgage can use this form of borrowing to good advantage.

 

Buying a boat as a means of moving out of a house for sole purpose of paying off a mortgage may not be sensible if funds are severely limited and those who embark on such schemes may well find that they soon need to borrow at higher rates of interest just to keep the boat afloat.

[chris w]

This may be true but those who are not in overall debt - i.e. where liquid funds exceed any sums owed as a result of a mortgage can use this form of borrowing to good advantage.

 

Buying a boat as a means of moving out of a house for sole purpose of paying off a mortgage may not be sensible if funds are severely limited and those who embark on such schemes may well find that they soon need to borrow at higher rates of interest just to keep the boat afloat.

 

If you have liquid funds, why would you want to take out a high interest long term loan? If you invest your liquid funds you forego the interest on that capital. If you take out a loan you will be paying far more, percentage wise, than the money you would have earned on the capital.

 

Chris

[NB Alnwick]

If you have liquid funds, why would you want to take out a high interest long term loan? If you invest your liquid funds you forego the interest on that capital. If you take out a loan you will be paying far more, percentage wise, than the money you would have earned on the capital.

 

Not always. Mortgages with fixed rates of under 5% were being offered by major banks in 2005 and some of the same banks currently offer more than 6% (admittedly before tax) on savings and there are currently several opportunities to invest at more than 6%.

[Nine of Hearts]

If you have liquid funds, why would you want to take out a high interest long term loan?

 

More to the point, if you have liquid funds, why don't you do the proper thing and spend them on liquid? Preferably with froth on top.

 

Seriously, there are comparisons on here with a small house. But a small house where? That was the killer for me. I appreciate that my boat won't (geddit!), but how much would a small terrace in a war zone gain in value anyway? I've traded in on higher running costs (including the lack of appreciation) for a better quality of existence. And I'm not sure I'm going back on land now anyway. When I've done being a wage slave and completed my obligations as a parent (to a large extent) I intend to swap the barge for a sea-going saily thing and sod off into the blue. Will I grow gills like Mr Costner? Only one way to find out...

[bottle]

Slightly

 

will only give you £25K a year

 

I have never earnt that, let alone take it home.

[BlueStringPudding]

Mmmm... liquid funds.