Jump to content

Selling a home to live on a boat - does it really stack up?


thenortherner

Featured Posts

Hi,

I'm currently considering selling my home and using the equity to buy a narrowboat outright to live on full time.  I rented and stayed on a boat for a week to try it out in November and really enjoyed it, so there's no worries there.  I know this is only a small snapshot of time and there's the novelty factor but deliberately chose the coldest, bleakest time to try it out.

I'm in my early 30s, in decent employment, no debts other than a mortgage and I don't have any children.  There's a good few reasons for wanting to make a change.  I live on a new build estate - whilst it serves its purpose in terms of being safe, secure and low maintenance, it's generally quite a dull, soulless place.  This is why boating appeals.  There appears to be a really decent sense of community.  My home's very small and minimalist - I'm not one for clutter - so I can't see there being too much of a problem with transitioning in terms of space.  

I'd like to permanently moor in Cheshire and already live very close to:

Midway Boats/Barbridge,

Audlem Overwater Marina

Swanley Bridge

Nantwich Venetian Marina

I know some don't offer residential moorings but I've read a fair bit about blind eyes turned etc..

Lastly, and I understand completely why it shouldn't be the prime reason for wanting a change, is it'd allow me to become and live 100% debt and mortgage free.  If I were to sell my property, once all the fees and charges are paid, I'd be left with around £50-55K to buy a boat outright.  By the looks of it, I could get something around 55ft in decent condition that'd be suitable to live aboard on.

I've been trying to weigh up the pro's and cons financially of doing this and have looked both short terms and long-term/10 years from now.  The running cost of the boat appear to be realistic from the research done.

In summary, it appears not to make financial sense to do this based on the below figures.

I'd calculated over 10 years because if I made overpayments in line with the amount shown during this time I'd own my home 10 years from now.

The below suggests that whilst I'd potentially save £58K over 10 years through living on a boat, it'd only be worth perhaps 38K in 10 years time, so I'd only have liquid/fixed assets worth £96K in 10 years assuming zero growth or return on the money I saved through doing this.

Whereas with the house, if it were to be worth £150K in 10 years - it's currently valued around £140K - then I'd have assets worth £55K more than going down the boat route.  And after 10 years, I'd own the house and then have an extra £750 a month as there'd be no mortgage/overpayment calculator.

What comes to mind re. the point above is that whilst I'd own the house I'd be asset rich and cash poor.  So what's the point?  I could maybe understand if the house could be sold to later downsize and then use what's leftover but it's not really possible to get a house too much smaller!  On the other hand, with the £750 a month saved, it'd take almost 6 years to save the £55K I'd have done by living on the boat - then I'd have the best of both worlds.

Apologies for the level of detail.  I've just tried to work things out in honest and realistic terms.  I'd be really keen on your thoughts and feedback on anything on the above, and what you'd do in my shoes and why...

Thanks,

 

f0sob4.jpg

 

Link to comment
Share on other sites

Jeesus

I didn't read it all suffice to say my life is not a financial spreadsheet. I have lived the life for 28 years would I do the same again? absolutely. Will you end up with more money before you die if you keep a house and the dreaded mortgage going? yes you absolutely will its not a sound financial move. Are there any pockets in shrouds? nope. Buy one a life with a mortgage is no life at all you only think it is.

Being free from a debt totally is the most important thing after health, YOU and you alone are in charge when you have no debt. Oh and you don't need a residential mooring but that's another story.

 

Cheers

Link to comment
Share on other sites

7 minutes ago, thenortherner said:

Whereas with the house, if it were to be worth £150K in 10 years - it's currently valued around £140K

I have no comment about the main thrust of your post, you must do what works best for you. However I feel that your figure above is highly pessimistic. If your house is currently valued at £140k then in 10 years it’s more likely to be worth somewhere around £185k - £210k or even more  

http://www.cityam.com/271066/heres-much-property-prices-rise-next-10-years

http://uk.businessinsider.com/uk-house-prices-will-they-rise-or-fall-in-2019-2017-9

https://www.express.co.uk/life-style/property/847628/House-prices-UK-increase-average-cost-2027

Link to comment
Share on other sites

Thanks, I think :-)

Appreciate there's a lot of detail there, but when it comes to a life changing decision and big sums of money I'd rather show some diligence.

In all honesty the mortgage isn't dreaded - it's less than £400 a month.  It's not so much a life with a mortgage, it's 10 years based on my workings, or 24 years if I don't overpay.  At best I'll be in my early 40s and at worst late 50s either way.

I'd agree that the feeling and value of being debt free is essentially invaluable though!

Just now, WotEver said:

I have no comment about the main thrust of your post, you must do what works best for you. However I feel that your figure above is highly pessimistic. If your house is currently valued at £140k then in 10 years it’s more likely to be worth somewhere around £185k - £210k or even more  

http://www.cityam.com/271066/heres-much-property-prices-rise-next-10-years

http://uk.businessinsider.com/uk-house-prices-will-they-rise-or-fall-in-2019-2017-9

https://www.express.co.uk/life-style/property/847628/House-prices-UK-increase-average-cost-2027

Thanks.

I think it's anyone's guess.  My line of thinking is that if things continue as they are then very few will be able to afford a first home.  I just can't believe it'd be sustainable to continue this way.

Link to comment
Share on other sites

I didn't read it all either but from what I did read I can give my honest opinion. I've learnt things pretty much never pan out how you planned.  There's no telling how things will be in the timescales you are planning for. If you can realistically afford to do it, and you think it is where you will be happiest, get it done. If it doesn't work out... next. 

Link to comment
Share on other sites

6 minutes ago, Rumsky said:

I didn't read it all either but from what I did read I can give my honest opinion. I've learnt things pretty much never pan out how you planned.  There's no telling how things will be in the timescales you are planning for. If you can realistically afford to do it, and you think it is where you will be happiest, get it done. If it doesn't work out... next. 

Well put!! Life is way too short to try and plan it out, just get on with it. I have had several friends who planned and saved and paid mortgage diligently over the last many years then died having done nowt but pay bills.

  • Greenie 1
Link to comment
Share on other sites

16 minutes ago, WotEver said:

I have no comment about the main thrust of your post, you must do what works best for you. However I feel that your figure above is highly pessimistic. If your house is currently valued at £140k then in 10 years it’s more likely to be worth somewhere around £185k - £210k or even more  

http://www.cityam.com/271066/heres-much-property-prices-rise-next-10-years

http://uk.businessinsider.com/uk-house-prices-will-they-rise-or-fall-in-2019-2017-9

https://www.express.co.uk/life-style/property/847628/House-prices-UK-increase-average-cost-2027

Ignoring the property hype, with the way the world economy is heading, I think you'd be lucky to retain the current value of the property, let alone see an increase in the next 10 years..

Just my opinion.

Link to comment
Share on other sites

27 minutes ago, thenortherner said:

There appears to be a really decent sense of community.

Yes there is - and no there isn't.  I'd suggest that you have correctly determined that you have a need to be a member of a community, but whilst there is a boating community it is not that strong as boaters have vary diverse modes of boat operation, with many hibernating during winter.  I'd investigate other organisations first to find a primary community and then consider having the boating scene as a secondary but useful grouping. Do you already have such an interest or activity?

Link to comment
Share on other sites

Just now, zigspider said:

Ignoring the property hype, with the way the world economy is heading, I think you'd be lucky to retain the current value of the property, let alone see an increase in the next 10 years..

Just my opinion.

It's just such an unknown but I cannot believe property price increase is sustainable and something has to give.

Post Brexit I reckon there'll be a hit, or at least it'll stagnate for a good while, which is why I'm thinking of doing it this year.

 

Just now, system 4-50 said:

Yes there is - and no there isn't.  I'd suggest that you have correctly determined that you have a need to be a member of a community, but whilst there is a boating community it is not that strong as boaters have vary diverse modes of boat operation, with many hibernating during winter.  I'd investigate other organisations first to find a primary community and then consider having the boating scene as a secondary but useful grouping. Do you already have such an interest or activity?

Perhaps I'd over-emphasised the community bit.  The house to my left is vacant and has been for 6+ months.  I only ever hear my other neighbour come and go and we rarely speak.

A 'hello' and a few minutes chat would be nice enough and 100x more than I get now!

Link to comment
Share on other sites

The thing that leapt out at me in your post was your comment about your new build housing estate being a soulless place then later you mention taking a mooring in Overwater Marina!

Marinas in general and Overwater in particular strike me as every bit as soulless as yer average new build housing estate. Did you stay on your hire boat for a week in a marina? Fair enough if you did but I predict you'll get an itchy rudder pretty quick and give up the marina mooring once you actually live on board. 

  • Greenie 1
  • Happy 1
Link to comment
Share on other sites

On 03/02/2018 at 23:17, zigspider said:

Ignoring the property hype, with the way the world economy is heading, I think you'd be lucky to retain the current value of the property, let alone see an increase in the next 10 years..

Just my opinion.

 

Ah yes, this 'house price crash' skool of thought has been common currency for at least the last 20 years. 

I know of a bloke who thought this way and cockily sold his four bedroom town house in Notting Hill in 1998 for £500k, confidently expecting to buy something similar back in six months after the crash for half, i.e. about £250k.

Prices never fell in value and his ex-house is now worth about £3m, and he still lives a rented flat while he waits for the day property prices return to fair value. Yeah right. 

If you forsee the govt ever reversing the rapid rise in population in the UK then yes demand for accommodation will fall and house prices too. But a lot of people think UK population and therefore demand will continue to accelerate, and consequently house prices too. 

Tin hat on now...

Edited by Mike the Boilerman
Improve clarity
  • Greenie 1
  • Happy 1
Link to comment
Share on other sites

Just now, Mike the Boilerman said:

The thing that leapt out at me in your post was your comment about your new build housing estate being a soulless place then later you mention taking a mooring in Overwater Marina!

Marinas in general and Overwater in particular strike me as every bit as soulless as yer average new build housing estate. Did you stay on your hire boat for a week in a marina? Fair enough if you did but I predict you'll get an itchy rudder pretty quick and give up the marina mooring once you actually live on board. 

I think the marinas look really attractive.  Especially the Venetian one in Nantwich.

I'm also trying to think practical in so much as I need a place to park my car etc.  I'd like to stay offline too but this doesn't give me an electrical hook up, security or a place to park etc.  Is there something other than a marina you might think would work given this?  Any suggestions welcome.  Especially if they're in the areas I've mentioned.

I stayed in the same spot for 4 days and cruised for a few days.

Link to comment
Share on other sites

On 03/02/2018 at 23:36, thenortherner said:

Is there something other than a marina you might think would work given this?

A house? :giggles:

I'm just recounting my own experience. Living on a boat doesn't properly spring into life until you get out of the marina ghettoes.

Living in a marina is not a lot different from living on a housing estate, broadly speaking and with a few notable exceptions.

  • Happy 1
Link to comment
Share on other sites

Boat bought / fitted to our spec May 2005 £126 k , total spent on boat too much to list but includes a rebuilt engine 6 k   . House bought 2012 £139k money spent on house Total 6k. Boat now worth ( valuation quote ) 90k .... House valued  last week at 210k ....  .Bunny 

Link to comment
Share on other sites

Just now, Mike the Boilerman said:

A house? :giggles:

I'm just recounting my own experience. Living on a boat doesn't properly spring into life until you get out of the marina ghettoes.

I don't disagree but I guess having a job etc imposes restrictions and the practicality of constant moving doesn't fit with this.

If there's a half-way house between a marina and constantly having to move which fits please let me know.  I just thought a marina might be the only option due to needing a place to park and some security I guess.

Link to comment
Share on other sites

I'm with mtb on this one.

We have just spent a week in a very good, friendly, rural marina and I have enjoyed it (especially the electricity!).

My children have just bought a house in a rough but trendy part of Bristol. I would rather have the house.

Sell your house and buy another one in an area with a bit of life and community, houses are a good investment..

But now I'm back out on the cut CC'ing and the boat wins.

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

 

Link to comment
Share on other sites

On 03/02/2018 at 23:47, thenortherner said:

If there's a half-way house between a marina and constantly having to move which fits please let me know.

 

An on-line mooring is an excellent half-way house. CRT are the main provider. There are on-line farm moorings all over the place too. Sometimes there is car parking, sometimes not. Less security. Occasionally main electricity. Totally different experience from marinas.

  • Happy 1
Link to comment
Share on other sites

23 minutes ago, Mike the Boilerman said:

 

Ah yes, this 'house price crash' skool of thought has been common currency for at least the last 20 years. 

I know of a bloke who thought this way and cockily sold his four bedroom town house in Notting Hill in 1998 for £500k, confidently expecting to buy something similar back in six months after the crash for half, i.e. about £250k.

Prices never fell in value and his ex-house is now worth about £3m, and he still lives a rented flat while he waits for the day property prices return to fair value. Yeah right. 

If you forsee the govt ever reversing the rapid rise in population in the UK then yes demand for accommodation will fall and house prices too. But a lot of people think demand willcontinue to rise, and therefore prices will too. 

Tin hat on now...

Everybody knows that the housing market is driven by first time buyers and these can only raise a mortgage of about 4 times the average salary of a 25 year old (25k at best), so a couple could only ever afford a house up to about £200. Once first time buyer houses cost more than about £200k the whole thing falls apart. In fact this has failed to happen for about 15 years now :D

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

Link to comment
Share on other sites

39 minutes ago, Mike the Boilerman said:

A house? :giggles:

I'm just recounting my own experience. Living on a boat doesn't properly spring into life until you get out of the marina ghettoes.

Living in a marina is not a lot different from living on a housing estate, broadly speaking and with a few notable exceptions.

A sweeping statement Mike, all marinas are not the same; ours us a warm, cosy friendly place with 86 live aboard boats and no it's not just a parking lot and yes we all get out cruising. 

Phil 

Link to comment
Share on other sites

On 04/02/2018 at 00:03, dmr said:

Once first time buyer houses cost more than about £200k the whole thing falls apart. In fact this has failed to happen for about 15 years now :D

 

This market distortion is caused by all those baby-boomers either downsizing or dying and unfairly gifting their children six-figure deposits. The bar stewards.

Link to comment
Share on other sites

you are disposing of an asset to buy a depreciating  chattel that has attached costs.

we lived on one income and saved the other after we bought our boat to live , on worked overtime bought the cheapest ex repo house we could and worked up.

house prices may fluctuate cyclically but in the long run asset prices increase . Chattels devalue to zero

  • Love 1
Link to comment
Share on other sites

Instead of over paying on your mortgage why not use that money to buy a boat then rent out your property to cover the mortgage and live on your boat.

Marina living isn't for everyone, we don't live on our boat but when we stay on it we find being in the marina is an environment we wouldn't want to live in. Neighbours are pleasant but having them just a few feet away is a bit too close so we nearly always go out cruising.

  • Greenie 1
Link to comment
Share on other sites

9 hours ago, Mike the Boilerman said:

The thing that leapt out at me in your post was your comment about your new build housing estate being a soulless place then later you mention taking a mooring in Overwater Marina!

Marinas in general and Overwater in particular strike me as every bit as soulless as yer average new build housing estate. Did you stay on your hire boat for a week in a marina? Fair enough if you did but I predict you'll get an itchy rudder pretty quick and give up the marina mooring once you actually live on board. 

I tend to agree with para 1, but OP has shown little interest in boating as such [I may be wrong]. Living as a cc while working is a diffcult lifestyle, and makes it diffcult to build a structured social life, in winter it is going to be dark and icy, in summer, who knows it might even be too hot! Living out on the cut, moving all the time, emptying casettes, finding water points, sounds pretty desperate.

Edited by LadyG
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.