Market Madness?

[Aardee]

I'm currently in the process of moving from sail to power (sea trial on a potential purchase on Monday) and have noticed a lot of boats in the 25'-35' range are back on the market less than a year after they were last sold. Do we think these folks are upgrading or is the start of people getting out of boating now foreign travel is back on the menu?

I'm also one of those feckless folks who would rather finance part of the purchase while money is comparatively cheap

 

[Sticky Fingers]

I'm currently in the process of moving from sail to power (sea trial on a potential purchase on Monday) ...

Need to start a 'sail to power' thread on the Mobo forum. I did one a couple of years ago. Very amusing.

 

[Momac]

My father who was only ever a farm worker on very modest income never in all his life bought any thing what so ever on Finance.

Nor did my parents. I do not think they understood the concept of debt.
However there is nothing wrong with some careful financing.
For example I have a car but havent owned a car since 2005 so have not had to pay up a large sum. Paying monthly makes good sense and does not necessarily mean paying more in total.

 

[julians]

Finance was a lot more expensive (and hard to come by) in our parents day, which makes a significant difference to whether it is sensible or not to use it to fund 'luxuries' like boats , which I suspect is why so many didnt use it.

Who knows whether money will remain so cheap.....

 

[ShaneAtSea]

Nor did my parents. I do not think they understood the concept of debt.
However there is nothing wrong with some careful financing.
For example I have a car but havent owned a car since 2005 so have not had to pay up a large sum. Paying monthly makes good sense and does not necessarily mean paying more in total.

Exactly...... financing a boat that i plan to sell within 2 years is essentially just leasing it.

However there is the risk with the volatility of the market and the immediate depreciation of a new boat.

I could lose some money but if i get 2 years of fun out of it then i'll just weigh up the pros and cons at once its sold

 

[Aardee]

Need to start a 'sail to power' thread on the Mobo forum. I did one a couple of years ago. Very amusing.

I will when it's home and on the mooring.

 

[ShaneAtSea]

I'm currently in the process of moving from sail to power

Are you sure you'll be ok going faster then 4 knots?

 

[Bigplumbs]

Mainly day trading, Bitcoin and government treasury bonds.......I dont put my money in banks.

Im not buying my boat till next year at the earliest anyway. Not until the UK & USA announce that the pandemic is officially over. I unfortunately missed the Fort Lauderdale boat show but im definitely going to Dusseldorf in January

Bitcoin...... Oh dear messing about with things that are not in any way real, One day (hopefully soon) the world will kick all that nonsense into touch and reward will only be possible by doing something productive and useful. Each to their own I suppose

 

[ShaneAtSea]

[/QUOTE]

Bitcoin...... Oh dear messing about with things that are not in any way real, One day (hopefully soon) the world will kick all that nonsense into touch and reward will only be possible by doing something productive and useful. Each to their own I suppose

Yeah sure. Its risky and its essentially gambling (i dont gamble) but i bought most of my Bitcoin in March 2020 for around $5,500 per coin and its current worth is $60,000 so if i sell now i'll make a decent profit. If it drops below $20,000 i'll buy some more

Im sure it will crash soon because the market can be manipulated but its my only investment thats high risk

Most of my other investments are low risk i.e bonds & property so as long as i never get over excited my money is working for me. You just need to know what youre doing.

Anything is better than banks.

 

[oldgit]

When you start worrying were the money is going to come from to pay for your boat, you either have the wrong boat in the wrong place or will probably not be boating very long ?
Suspect there are many long term contributors to this forum who have watched many keen ? boaters come and abruptly go over the years.
IMHO. there are those who like/enjoy owning a boat and the lifestyle it is supposed to suggest and those who would get out on the water in a raft if push came to shove.
The latter tend to have more modest craft.

 

[Aardee]

Bitcoin...... Oh dear messing about with things that are not in any way real, One day (hopefully soon) the world will kick all that nonsense into touch and reward will only be possible by doing something productive and useful. Each to their own I suppose

The 19th century just called - What time will you be back for dinner?

 

[Bigplumbs]

The 19th century just called - What time will you be back for dinner?

Well I am working on repairs to existing Hospitals and building new Hospitals at the moment something that was useful in the 19th Century and indeed today. Bitcoin....... All just pretend and electromagnetic 'pulses' on hard drives. If that is how you want to spend your time then fine.......... me I prefer to do summit useful no matter what the century.

 

[ari]

My father who was only ever a farm worker on very modest income never in all his life bought any thing what so ever on Finance. He built his own house with his bare hands, lived a very full and happy life and raised 3 children with values that I follow today.

The only thing I personally have bought on finance is our house. Would I consider anything else Never.

Should have built one with your bare hands! Finance for a house? That kind of feckless and irresponsible attitude to money can only end in tears.

 

[henryf]

A couple of points raised.

Smaller boats back on the market: Yes, a lot of people soon realise they need something bigger if they plan to stay on it over night.

Prices crashing when people realise boating isn’t all the marketing people hype it up to be: HaveI missed an episode? Has boating only just been invented? I thought it had been going on for a while now. The marketing boffins have been selling a dream for over 50 years now. Some boats are better at delivering than others and some people will never make boat skippers but we only need a very small handful of the population to practice the craft for it to succeed, fill berths, and buy boats. Boating isn’t a passing fad, in fact in an increasingly busy and regulated world boating offers an escape now more than ever before.

Also look at the other options. A Motorhome is going to cost you £100k plus. A decent hotel is £500 a night doubled or tripled depending on how many rooms you need for the sprogs. Things move on I’m afraid. Cars are no longer £12k brand new, the cheapest VW Golf is over £21k and anything decent is bumping £40k.
The world moves forwards, prices rise. There are economic ups and downs but the line still goes upwards over time. Our parents paid a couple of grand for houses that are worth 6 or 7 figures today.

There is a very big difference between a farm labourer earning a wage that leaves little scope beyond survival and someone earning a substantially higher than average wage that still provides huge scope for enjoyment once living costs have been removed.

 

[ShaneAtSea]

When you start worrying were the money is going to come from to pay for your boat, you either have the wrong boat in the wrong place or will probably not be boating very long ?
Suspect there are many long term contributors to this forum who have watched many keen ? boaters come and abruptly go over the years.
IMHO. there are those who like/enjoy owning a boat and the lifestyle it is supposed to suggest and those who would get out on the water in a raft if push came to shove.
The latter tend to have more modest craft.

I read that a good rule of thumb on how much to spend buying a boat is the same calculation as the annual cost of running a boat.......10%

So if your worth £1m then dont spend more than £100,000 on a boat.

If youre worth £10m then you can afford to spend £1m on a boat and so on

Not sure if that correct but its sounds pretty sensible to me

 

[ari]

I read that a good rule of thumb on how much to spend buying a boat is the same calculation as the annual cost of running a boat.......10%

So if your worth £1m then dont spend more than £100,000 on a boat.

If youre worth £10m then you can afford to spend £1m on a boat and so on

Not sure if that correct but its sounds pretty sensible to me

I don't wish to be rude, but it sounds like utter nonsense to me!

One bloke worth £10M with a huge stately home costing an absolute fortune to run and almost zero income should be spending 10 times as much as a guy with a recent flourishing and successful business earning him £250K/year who's so far amassed a total wealth of £1M? Makes no sense at all.

Mind you, nor does the '10% rule' - an old £1M knackered 150ft superyacht costs exactly the same to run as a new Princess 50?

They're catchy sayings, but nothing more.

 

[ari]

A couple of points raised.

Smaller boats back on the market: Yes, a lot of people soon realise they need something bigger if they plan to stay on it over night.

Prices crashing when people realise boating isn’t all the marketing people hype it up to be: HaveI missed an episode? Has boating only just been invented? I thought it had been going on for a while now. The marketing boffins have been selling a dream for over 50 years now. Some boats are better at delivering than others and some people will never make boat skippers but we only need a very small handful of the population to practice the craft for it to succeed, fill berths, and buy boats. Boating isn’t a passing fad, in fact in an increasingly busy and regulated world boating offers an escape now more than ever before.

Also look at the other options. A Motorhome is going to cost you £100k plus. A decent hotel is £500 a night doubled or tripled depending on how many rooms you need for the sprogs. Things move on I’m afraid. Cars are no longer £12k brand new, the cheapest VW Golf is over £21k and anything decent is bumping £40k.
The world moves forwards, prices rise. There are economic ups and downs but the line still goes upwards over time. Our parents paid a couple of grand for houses that are worth 6 or 7 figures today.

There is a very big difference between a farm labourer earning a wage that leaves little scope beyond survival and someone earning a substantially higher than average wage that still provides huge scope for enjoyment once living costs have been removed.

Agree 100% with this.

People also seem to very quickly forget the huge drop in used boat prices a decade ago. Prices now are back up to about where they were before that.

So maybe they're not currently 'high', maybe values have simply recovered back to normal.

 

[ShaneAtSea]

I don't wish to be rude, but it sounds like utter nonsense to me!

One bloke worth £10M with a huge stately home costing an absolute fortune to run and almost zero income should be spending 10 times as much as a guy with a recent flourishing and successful business earning him £250K/year who's so far amassed a total wealth of £1M? Makes no sense at all.

Mind you, nor does the '10% rule' - an old £1M knackered 150ft superyacht costs exactly the same to run as a new Princess 50?

They're catchy sayings, but nothing more.

You werent being rude but quite pedantic

I was generalising and your example of someone owning a stately home or a knackered 150ft superyacht is very specific.

Like is said, i read it somewhere and you obviously dont agree. Cool

 

[Bigplumbs]

Should have built one with your bare hands! Finance for a house? That kind of feckless and irresponsible attitude to money can only end in tears.

Not built our house but did build 2 reasonable sized extensions with my own hands. Quite pleased with the end result also. You done anything similar

 

[Bouba]

We are rapidly racing towards another global financial meltdown so it might be a good idea to keep your cash under you mattress for a while

Then you might get a great deal as everyone rushes to offload their boats

A global financial meltdown ?‍ All the more reason to keep a boat??