Buying before selling conundrum

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BlueSkyNick

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Seen a boat today which we are very keen to buy. I am not saying what or where, just that I know it wont hang round very long.

Since intending to sell our Moody 44 (highly spec'd and in good condition, ideal liveaboard for a couple, BTW!) we've been saying we wouldn't commit to another boat until she is sold. Now we are talking about breaching this rule.

One way is to get finance on the new boat, then pay it off immediately on selling the old one. She is already Part One registered.

Never done this before. Googling around it seems interest rates are based on LIBOR.

Any suggestions who I should phone first, tomorrow morning ?

PM me if you prefer.

Oh.... I should mention again that we have Moody 44 for sale in good condition !
 
I have been a fleet owner 4 times. Our last boat was sold long before we bought our new one. Our new one is in Florida and costing us in insurance and storage but we are still here in the UK. None of these situations is at all ideal!
 
I used Lombard years ago and they were very helpful.

Bear in mind you might take a long time to sell the Moody, so be prepared to service a marine loan for a considerable period.

As an alternative, you might look at re-mortgaging your house to raise the funds.
 
We still owned a Beneteau as we sailed our Westerly through the Needles heading for the Caribbean.

Your Moody will sell, so if the one you have found is a rare find its not completely crazy to consider short term finance. As long as you go in with your eyes open. Rates are low at the moment too.
 
MoodyNick said:
Seen a boat today which we are very keen to buy. I am not saying what or where, just that I know it wont hang round very long.

Since intending to sell our Moody 44 (highly spec'd and in good condition, ideal liveaboard for a couple, BTW!) we've been saying we wouldn't commit to another boat until she is sold. Now we are talking about breaching this rule.

One way is to get finance on the new boat, then pay it off immediately on selling the old one. She is already Part One registered.

Never done this before. Googling around it seems interest rates are based on LIBOR.

Any suggestions who I should phone first, tomorrow morning ?

PM me if you prefer.

Oh.... I should mention again that we have Moody 44 for sale in good condition !
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You will be sorreeee!
Sorry but you will!
At the mo you will be hanging out for the best price. As soon as you get the new one, its double bubble for mooring/storage etc, then sods law says it wont sell till next year, so costs rise, servicing a mortgage, the sh is hitting the fan with the economy! Soon it will be sell at any price!
Need I say more?
Stu
 
2 big boats is bad news unless your minted. your eventually let the 44 go for silly money to get shot off it, which is really not the ideal situation.

hang on in there.... always be in the driving seat.

buy an extra lottery ticket on wednesday and wait....
 
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I know of someone who bought a very fine boat about 8 years ago for about £55k, then as retiring bought another boat in 2008 (remeber 2008?) in the Med, for a similar sum. The original boat was on brokerage at £51k for 18 months and is now reduced to about £48k and of course a sale without the involvement of a broker might be for even less. Unles you are absolutely sure that your boat will sell quickly or can afford to have an asset of that order mouldering in a boatyard, don't do it.
 
Our friends put their boat up for sale and then looked for a new boat. They've had their new boat for a couple of months now and they've not had much interest in their old boat. :(
 
Shakes the head........ sorry Nick, this is not a good idea with the current global ****storm.
The confidence is not in the market.
I would say you might want to emulate the kind of deal Morgana has, but would go no further than that.
 
It all depends on how much you want something, and how much you're prepared to pay. When we bought our current home, 28 years ago, we couldn't sell our existing home. The bank kindly agreed to an open-ended bridging loan (which we could theoretically still be paying today). As luck would have it, our old home sold within about 6 months. OK, it costs in interest, but if you end up with something you want, and which you believe is relatively rare to find, it's all worth it.
 
FullCircle said:
Shakes the head........ sorry Nick, this is not a good idea with the current global ****storm.
The confidence is not in the market.
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I went sailing all of last week.

The value of my boat *didn't* drop by 10%....

(Not that I'd have cared much if it did, BYGTI)
 
Nick,

Don't do it, unless you are loaded with money. Been there... looking after 2 boats is 3 times the effort, stress and expense.

There WILL be another boat.
 
Thanks for all the feedback folks, you are reiterating what we have been thinking all along.

The 44 is ashore in full clean and tidy mode and storage cost is not an issue, but I am not loaded and the stress factor is not something I really want to deal with.
 
FullCircle said:
Perhaps you have no real idea #what# your boat is sellable for.
Note, I did not say worth.
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I know what it's insured for, and that it might sell for +/- 20% of that; I'll worry about selling price when I consider cost-to-change.

It's paid for, and on an affordable-for-the-next-10-years mooring; I'm happy*.

My portfolio (& pension), on the other hand, is rather more liquid and volatile...

* But could still do with 6-feet more of deck-lenght, as always.
 
I suggest you get in contact with Jonic. He specialises in Moodys, and managed to sell ours in just a few days in the spring (after we'd bought a new boat). He'll give you good advice on the price similar boats have sold for recently, and even if you do not want to take him on to sell your boat, he's willing to give really helpful advice.

Good luck - it might work out well for you - it did for us!

Ali
 
Very risky move unless you are willing to let your old boat go at a very attractive price to move it on.

I did the same last year and picked up the boat I had always wanted at a fantastic price, but I was realistic and sold my old boat for a great price to the buyer too. That way I avoid 2 X the running costs ....

I assume the boat you are thinking about buying is an absolute cracker at a steal away price to even consider this option .... if that's the case then be prepared to let your old boat go for a cheap price too. You can't have your cake and eat it ;)

Remember, much like housing, it's a buyers market out there. Hope you get a result and good luck
 
AliM said:
I suggest you get in contact with Jonic. He specialises in Moodys, and managed to sell ours in just a few days in the spring (after we'd bought a new boat). He'll give you good advice on the price similar boats have sold for recently, and even if you do not want to take him on to sell your boat, he's willing to give really helpful advice.

Good luck - it might work out well for you - it did for us!

Ali
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Thanks, we are already talking to him.
 
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