The big question!

[dignity]

I currently liveaboard and rent out my house, I've seen the boat of my dreams but the only way to finance it is to sell my property! The intention was to live aboard until too old and frail and then move back into the house. Should I sell and live for today? Or should I just keep on dreaming about my perfect boat. If I sell purchasing another house in twenty odd years will probably not be possible because of prices.

I need peoples opinion, it may help me to decide!

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[Stingo]

have you thought about getting a further advance on the house (or remortgage) and paying for the boat that way?

<hr width=100% size=1><A target="_blank" HREF=http://www.stingo.co.uk>http://www.stingo.co.uk</A> <font color=blue>- now showing at a computer near you</font color=blue>

 

[markc]

Keep the house....which will only go up in value over the years - the boat will go down. Use the house to borrow money against if possible.

IMHO of couse!
M

<hr width=100% size=1>http://www.geocities.com/jinto100/Jintopics.html

 

[dignity]

Prefer not to, getting into debt worries me, also I still would like a good standard of living, so I'd prefer no massive outgoings, I know that sounds fussy.

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[NorthernWave]

B###ocks to it sell the house buy another one in a hot country AND buy the boat.

Chris

<hr width=100% size=1>Logged Sea Miles wanted for masters. Send PM if your on south coast and want skipper or crew.

 

[DavidJ]

Whatever you do don't sell the house.
Have you concidered equity release. This will give you 25% of the house value (dependant on your age I think) and there are various schemes. The one I favour is where you effectively borrow 25% of your house value and never pay back until you die. The scheme promises that the capital and interest will never exceed the house value so you can't have your house repossed one day. We've just been through this with my mother in law (not to buy a livaboard!) Make sure that your equity release company is a member of SAIL (by coincidence)
Make sure that you really understand in detail the various options that are available.
best 'o luck
David

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[sailbadthesinner]

i would be inclined not to sell the house,unless you decide to sell it & buy a commercial property.

The advantages are that lcommercial leases are longer and rent reviews are often uppwards only or OMV. It really depends what point in the market you are at. Wise buying of a commercial property can also see unforeseen jumps in value, such as a big operator wants to amalgamate a number of shops into one. you as owner ofone in a scheme may see your value reflect the added value of the amalgamation.

Renting, either way is a more inflation proof income.

Ulitmately a boat IS a diminishing assett and as you say house prices can rise very dramatically.

Ultimately is the benefit of having the other boat going to compensate you for loss of house and the possible inability to move back into a house same size when you are old and frail. With any luck you will die weighing anchor or go GAGA so you don't care. but my advice would be not to trade in potentially valuable asset for diminishing one. cut your cloth to suit your needs and you never know, if the market does crash your house won't be worth anymore but that boat may just be within reach.

<hr width=100% size=1><font color=red>Ok brain let's just do this and I can get back to killing you with beer</font color=red>

 

[hlb]

Commercial leases may once have been longer. But are going shorter all the time. 3 years seems to becoming the norm. The house rental market is also becoming saturated.
This does notprovide any answers. Sopose it depends how old you are. Can you get meals on wheels, in a boat!!

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Haydn

 

[DavidJ]

Apparently, if you're over 60 you can claim your £200 heating allowance even if your livaboard in the south of Spain (and British!)


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[NorthernWave]

Sell the house and buy this dream boat in the BVI's and charter it out as a skippered charter and when you've made enough buy another house!!!

(Spot the younger member who couldn't get on the housing ladder so is buggering off out of the country!!)

Chris

<hr width=100% size=1>Logged Sea Miles wanted for masters. Send PM if your on south coast and want skipper or crew.

 

[tcm]

Sell the house, which will be the same in 5 years as it is today. We are approaching a bit of a slump, like in the thirties. Consider invading Poland and France too, but NOT Russia.

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[Benny1]

Hmmm...this is my first post and I already seem to be talking about my work.

Well, if I were you I'd keep the house for the reasons mentioned above. Over time it will go up in value. There may indeed be some fluctuations, but the problem most people have with property investment is that they take too short a view, tie themsleves into short timescales and then are foced to sell at the wrong moment. You don't seem to be in this position now, which is good.

As for commercial property, I would refrain from buying a small commercial investment (sub £1million) at present because the market is currently saturated with buyers who are coming out of the stock market in a panic and who are using self invested pension schemes, as opposed to a traditional pension, following the recent problems in the pensions market (caused by the woeful mismanagement of pension fund trustees, who are more concerned with covering their asses by minimising rick and hence returns). Thus, prices of these investments are artifically high at present.

A commercial property investment at the right price can be a very sound investment, as the leases tend to be longer (most new leases are today between 10 and 15 years) and you have a stonger covenant in the form of a hopefully substantial company. Additionally, the tenant (NOT the landlord) is usually responsible for all repairs and insurance.

As for the boat, I would wait and see what happens to boat prices, as there seems to be more economic volatility in these than in property prices so the dream may not be impossible after all.

Right, sorry to gon on a bit. Anyone want to talk to me about boats, as opposed to property?

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[banus]

Sell the house. buy your almost dream boat after you have bought a very small house but in a very nice place. You will still have a hole to bolt to if you get ill or something. Burn all your bridges by all means but keep a nice safe dinghy just in case. You can of course rent out your very small but in a nice place house until you need it.
Please let us know what decision you make.

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[tcm]

Re: Benny\'s First Post

Hi benny! Congrats on easily the most incredibly well-thought-out and carefully considered first post ever. No, I'm not taking the mickey.

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[Benny1]

Re: Benny\'s First Post

Thanks tcm.

Hopefully they won't all be that waffly and non boat related. I was (as I am now) having a quick break for 10 mins and ended up talking about work for most of it. Somewhat defeats the object, but there you go!

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[desG]

A lot must depend on your individual family/financial circumstances. Here are one or two thoughts:

If you were too old and frail to liveaboard it may be you will need to go into a home anyway and you will have to sell the house to pay the fees! On which would you rather have spent your money? On the other hand you may get tired of living aboard or cannot keep up with the maintenance etc and will want to return to land, so keeping a foothold in land-based property is the sensible thing to do. Maybe you can downsize and/or buy a property in a lower cost housing area of the country/world that can be rented in the meanwhile?

Don’t buy the first dreamboat you see – look around and try to match your desires to what is realistic.

If priority is to liveaboard, rather than lots of fast cruising, then if you buy a good quality older boat with modest engines you may not loose money as they tend to rise in price as the cost of new boats rise (which at the moment tends to be above base-line inflation).


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