50k to buy boat as investment?

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tim_ber

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I am lucky enough to have 50k to spend. I want to use it so I can get it or more back.

Never lost money on a boat before.

Is it a good idea to spend it on a boat (sailing), or what else could I do with it?

No you can't have it.

Just thought it might be a buyer's market for a bargain at the moment that I could use enjoy look after and sell on later.

Yes or no and if yes what boat. Never had so much to spend on a boat before. Would want bilge keeper though. Otherwise, no criteria except a seaworthy cruiser that will hold its price. I am not a racer.
Cheers.
 
I don't think "boat" and "investment" should be used in the same sentence.

Buy a boat because without one your life would be incomplete, by all means. But not as an investment. ;)
 
I would never buy a boat as an investment. They are difficult to sell and a liability whilst owned. Only buy a boat to enjoy or use commercially.

Property used to be an investment .... and if you have the nouse stocks, shares, bonds etc .....
 
No, don't even think about it.

Except in rare and unusual circumstances, boats (a) are depreciating assets and (b) cost time and money to maintain, insure, moor or store, etc.

Sometimes (a) is masked by loads of (b), usually uncosted. By which I mean it isn't unusual for someone to sell a boat for more than they paid for it (although it is far from the norm). This looks like an exception to (a). In nearly every case it isn't - it's that the owner has spent time and money restoring the boat so it's a better boat than he bought, but the cost (either in money or unpaid labour or both) exceeds any increase in value.

This isn't an argument for not buying a boat, just for not buying a boat as an investment.
 
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You are right, it is a buyer's market for some bargains at present - but that doesnt mean their value will increase at a later date. In fact, it usually means nobody else wants them for whatever reason, so their value will only continue downwards.

We sold both our previous boats for more than we paid, and could do the same with current pride and joy, but that's because I have spent several thousand on all of them along the way !!
 
It is possible, but I would suggest spending 50K on just one boat is far too much of a risk. Money can be made on smaller much less expensive boats such as small RIBs and engines, but it's hard work.
 
If you buy the right boat you might get more that you paid but you will have to maintain it and park it so, it will be a loss making investment. On the other hand you could buy some shares in UK supermarkets and get more in dividends than you would get more than a deposit account and have the possibility of capital growth as profits seem to keep pace with with inflation. Nothing is guaranteed with investments, because if for example interest rates were to rise share prices would have to fall ti increase the yields, at the same time interest rates rise to control inflation... Personally I think that stock market investment is the only way to protect against the effects of inflation. Some people would argue that property is the best longterm investment, there is a level of truth in this for London property but it is less clear that this is the case the further you go north.
 
I think if you really want a boat as an investment you will probably need to spend 5 MEUR or more (possibly much more) and charter it out through a high-end agency. Expect never to be able to use it, or alternatively that every week you use it will cost you the same amount as the charter fee (i.e. you have to pay to use your own boat).
 
You will not make money from owning a boat-best you can hope for is to get back your capital investment.
As for it being a buyers market I feel that it is only insomuch as the market has been full of boats whose owners have placed an unrealistic value on their boat in the belief like yourself that the boats value has risen since purchase.
Also its worth remembering that whilst you have £50,000 liquid cash(some years ago I found myself in similar circumstances) most dont which means you can have problems selling in the current market.
 
I have recently bought another boat for, what would appear to be, 25% of the (average) current advertised prices for the same popular model.

It was a probate sale and I just happened to be in the right place at the right time and it was a very speedy purchase.

However, I bought her because I liked her, the bonus of the price was incidental.

I have no illusions about her being an 'investment'; just an indulgence at the moment and something to play with for a while.

I am confident that my apparent 75% profit may soon be eroded up by adding up the costs of adding bits and pieces, berthing, insurance and general maintenance.

My point is that, even with this amount of fat to play with, the potential margin is questionable.
 
A boat can be an investment but it is an intangible investment in one's sanity, health and personal enjoyment. In one sense it is the best possible investment that can be made. I have a portfolio of fund equity investments which are oh-so-boring but are showing signs of providing me with a reasonable living once I no longer reside behind my desk. Put simply a boat is never a sensible financial investment but it is an investment of another sort.

Be sure never to know the price of everything but the value of nothing.....


And then one day you find
Ten years have got behind you
No one told you when to run
You missed the starting gun

rob
 
tim_ber said:
I am lucky enough to have 50k to spend. I want to use it so I can get it or more back.

Never lost money on a boat before.

Is it a good idea to spend it on a boat (sailing), or what else could I do with it?

No you can't have it.

Just thought it might be a buyer's market for a bargain at the moment that I could use enjoy look after and sell on later.

Yes or no and if yes what boat. Never had so much to spend on a boat before. Would want bilge keeper though. Otherwise, no criteria except a seaworthy cruiser that will hold its price. I am not a racer.
Cheers.
Click to expand...

How about a houseboat, parked somewhere desirable?
 
TradewindSailor said:
Only buy a boat to enjoy or use commercially.

etc .....
Click to expand...

Oil tanker - maybe but NOT to charter been their done that and approx costs are £5-6k per year plus wear and tear in spite of charter income of approx £15k. Chartering imposes its own higher running costs eg insure is £2600.

How to end up with a small fortune in yachting is to start out with a big fortune!!
 
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