House Value vs Boat Value

In our early days of boating the only way we could afford to buy a boat was to take advantage of the ridiculous increase in house prices and to use the equity in our house and extend the mortgage, so at that point the relative value of each was very important to us. Years later, with boat and house paid for the comparison is largely irrelevant from a financial perspective and the value of our boat is more about how much we choose to spend on our pastime (within our particular limits) and what our income can support in terms of annual running costs. To this end boating is a big part of our lives and is planned to feature heavily in retirement so we are happy to spend, what to us, is a fair bit.

As I said in post #32 I am conscious of HLB’s oft expressed view that it is unwise to invest more in a boat than you can stand to lose. Don’t get me wrong, loss of the value of our boat would be a very, very bad thing but we would remain viable, if not particularly happy! ?
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Greg2 said:
Don’t get me wrong, loss of the value of our boat would be a very, very bad thing but we would remain viable, if not particularly happy! ?
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The same here.

For me the value of buying and running a boat has been in mental health and wellbeing way before these words became as fashionable as they have more recently become.
The boat and the need to fund it has helped motivate me to carry on working.
 
interesting thread...
leaving aside the fact that I've no idea how much my boat is worth (v.little I guess) and going for say a bit more than the 20k I bought, I'd say less than 8% of the house. and no I don't need a larger boat for sure!
 
I was 24 / 25 when I bought my first apartment and my current boat, within about 2 months of each other. It was 2012, what many reckon to be the bottom of the barrel price wise in Ireland at the time.

The boat cost me a few k MORE than my apartment. The difference being that in the space of 6 years, the apartment appreciated by 3x what I paid for it; the boat probably remains the same as what I paid for it.

Property wise, I have matured *ahem* and moved on from apartment living, but for me, I appreciate the boat as much as where I live. Sure, you NEED a roof over your head, but rarely do I grin from ear to ear every time I open the door of my house!

Just a different perspective, bit of food for thought...
 
MartynG said:
The same here.

For me the value of buying and running a boat has been in mental health and wellbeing way before these words became as fashionable as they have more recently become.
The boat and the need to fund it has helped motivate me to carry on working.
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Totally agree Martyn. Boating was my escape during a very stressful career and it was the glue that bound the family together well beyond the point where growing up kids usually want to do their own thing. The value we have got from it makes the financial cost pale into insignificance.
 
WEALTH TAX
It is strongly rumoured there is a wealth tax coming to help pay for the pandemic spending 1% per year for 5 years on anyone who has wealth of over £500000 which will include houses
Doesn’t sound good
 
Simi said:
WEALTH TAX
It is strongly rumoured there is a wealth tax coming to help pay for the pandemic spending 1% per year for 5 years on anyone who has wealth of over £500000 which will include houses
Doesn’t sound good
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Source?
 
There is one thing for sure people with no money will not be paying numerous taxes around the corner
 
Simi said:
WEALTH TAX
It is strongly rumoured there is a wealth tax coming to help pay for the pandemic spending 1% per year for 5 years on anyone who has wealth of over £500000 which will include houses
Doesn’t sound good
Click to expand...
Sounds right and morality right , and I am happy to pay .
 
petem said:
People with wealth <£500k
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Yeah, quite. As ever....

The truth is no one will be paying. This whole affair has been paid for by the fruit of the money tree. No need to worry about having to mortgage the boat.
 
seastoke said:
Sounds right and morality right , and I am happy to pay .
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Well I would beg to differ on the basis that such a tax is a crude mechanism that would not be equitable. If house values were included then that is an accident of location and there will be many who struggle to buy in expensive areas and as a consequence would not be well placed to pay. Similarly, there would be people who are not well off but who have owned a house for many years who would find themselves included.

Clearly there is a bill to be paid but we had no choice on what was ordered from the menu and chuck into the mix that those most able to pay would find ways not to then overall I think it would be ill- conceived. All IMHO of course ?
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MartynG said:
The same here.

For me the value of buying and running a boat has been in mental health and wellbeing way before these words became as fashionable as they have more recently become.
The boat and the need to fund it has helped motivate me to carry on working.
Click to expand...


+1
except when something else drops off or breaks .
 
julians said:
Strange thread, as jfm said in 2004 there's no relation between the two 'assets '.
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Agreed, to make sense the equation needs to relate boat value to Net Worth. We choose to live in a small country cottage in Devon as we don’t need a large house in the SE (anymore) - we spend 6 months each year on board the yacht. Our boat is 13% of net worth, quite a lot, but then it is our home for six months of the year.
 
seastoke said:
Sounds right and morality right , and I am happy to pay .
Click to expand...

Bully for you but I suspect a lot of people won't be

Some people might think that taxing wealth which has been accumulated from already taxed income isnt right or fair. And some people might think that penalising people who put money away for their old age in order not to be a drain on the Exchequer or the taxpayer isnt right or fair either
 
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