Friends say I'm an idiot

[FlyWright]

Maybe if you talk him down to 50 cents...it might be a good deal.

 

[markpierce]

Since local and state taxes are now limited to $10,000 of taxable-income and without home or boat mortgage interest, I'm limited to the standard, unitemized tax deduction. ... My financial happiness entering retirement was to have no mortgage interest and my children completing college and becoming financially independent.

 

[OldDan1943]

Note: When I say up to $750,000 of mortgage total on the first and second home in 2018, I do mean combined.

The primary is paid for so I am still 'golden'. Thanks for the clarification.

 

[ranger58sb]

Since local and state taxes are now limited to $10,000 of taxable-income ...

???

Only $10K of your income is taxable?

Or your local/state income tax is capped at $10K?

Or...?

-Chris

 

[ranger58sb]

Why is interest on a(presumably) non income producing principal place of residence tax deductible? We had it once, never quite understood why, but was happy to take the deduction.Maybe it encouraged property ownership/investment.

I think that was exactly it: to encourage (even enable) home ownership.

Another impact is that it encouraged/expanded a market for mortgage instruments, sort of like growing banks. Don't know if that was intentional, at least on the government side. Might have been influenced by the bank lobbies.

-Chris

 

[jimisbell]

Don't know if that was intentional, at least on the government side. Might have been influenced by the bank lobbies.

-Chris

Nothing is "intentional" in government. Its always "unintended consequences." They dont think that far ahead.


I dont think the mortgage interest limitation extends to income/investment property.That would kill industry and send us into the greatest depression ever.

 

[dhays]

As others have mentioned, the interest deduction is capped at a total of $750,000 home mortgage for a single home or for two homes (yeah, I deduct my boat interest as a 2nd home). My combined initial mortgages are less than that cap. That is one reason why I’ve not been trying to accelerate my payment of those two loans since the government is essentially paying 25% of that interest for me.

 

[smitty477]

The primary is paid for so I am still 'golden'. Thanks for the clarification.

If the primary is paid for it is possible that the standard deduction will be more than your itemized list - then its back to the start.

 

[RickyD]

Ok time for me to dip into these shark infested waters. I bought a 32' sailboat in 1986 for $18,000. Put a couple thousand into it. 15 years later spent $14,000 on a refit. 5 years after that I sold her for $12,000. I can't tell you how many nights were spent aboard, or at anchor. Probably averaged a trip to Catalina Island every three months for the 20 years we owned her.


Bought a 47' trawler in 2007 (baaaaad timing) Paid $174,000. Put $28,000 into her. Sold her in 2010 for $139,000. Like I said, bad timing. One trip to Catalina. One trip to Ensenada MX. A bunch of weekends and overnights in Glorietta Bay. Learned a lot about diesel engines, nav gear, toilets, etc. Hard to say the words but I always felt I'd do it again.


So I did. Just bought Aquarius for $220,000 probably putting $40,000 into her this year. Then it should stabilize. When you first buy a boat you need to fix all the stuff the last owner put off because he was going to sell her or didn't use it, or her. You want it a certain way so you pour in time and money. Then hope it all slows down to a creep.


By the way, my cost numbers above did not include insurance, slip fees, bottom cleaning, fuel, nor a bunch of other little items. Just bigger improvements and repairs.


You know I have a $450 bolt on my port Cat 3208. Now I know a bunch of you are wondering what that might be. Well my port oil cooler began leaking after my first trip to Catalina. With some effort and time my mechanic and I were able to get the bottom bolt off. However, putting it back on after cooler replacement was extreme. Because of the placement of a second generator, my poor mechanic eventually had to go over the top of the engine resting on his head and neck, feet hitting the top of the engine room and he was barely able to get the bolt started. Me pulling him out of there was touch and go. Then he put a wrench on it, kerplunk, out she dropped. Then over the top again; then kerplunk; third time was a charm and at $100/hr I think really it must be a $600 bolt including getting it out.


I love boating.

 

[Shrew]

I wouldn't worry about percentage of boat value. That means nothing. You could spend way less or 5 times that in any given year.

((purchase price - sell Price) + Expenses) / Days used = Cost per day.

That's how we do the math.

Either you can live with the number or you can't. Best way to drive the "Cost per day" down is to USE THE BOAT.

 

[ancora]

"Use the boat" is right on the money (pun intentional.) It always amazes me why someone would buy a boat, put it in a slip, a never use it. There's a big difference between being a boater and a boat owner. We had a meetin' with the other boatin' groups in our yacht club, anglers, sail fleet, cruisers, predicted log, regardin' the lack of participation. It seems the non-participatin' members all use the same excuse: "we're gettin' the boat ready." Sound familiar to you?

 

[bourque]

San Diego living aboard

If you choose to live aboard in San Diego most marinas there are now charging around $300/month. I hope you have included that.

 

[DD788Snipe]

That is sound advice indeed. I'm not even sure if I want to go to Cartalina. Well maybe just for that incredible mooring. I'm thinking I'll get out of the bay to fish and look at whales . I just found out that sometimes you have to go out 80 miles to catch tuna while other times it's 5 miles. I'll wait for the closer hunts. I told same guy I was considering Chula Vista Marina and he yelled Noooooo!!!!! Too far from the mouth of the bay. I NEVER would have seen that. This boat thing seems riddled with mines!!

There's nothing wrong with Chula Vista Marina. Yes it takes a while to get to the mouth of the bay but the people are great. I had a 42' Californian there for 5 years and love the place. I still hang out with friends there. You'll love that Californian. My only issue was the wood maintenance. If it's not covered it's constant maintenance. Good luck and enjoy the adventure.

 

[dotgone]

A good idea before you buy is to have an engine oil analysis, make sure he did not just change the oil or it would be a waste of money. I have had 3 boats and it seems like it takes 2 years to know it well, understand the 5 major systems, Motors, water, potty, tankage, electronics, anchor/docking and rules of the road. Guess I am an idiot 3 times over but I love every minute of it. You can't take it with you..

 

[jeffnick]

Everything on your boat is broken...you just don't know it yet.
"I'd go out more often if I didn't burn so much fuel," said no one ever.
Enjoy your new boat.

 

[dirtdoc1]

If $34k is play around money and the survey looks good, what the heck? Go for it. The worst that can happen is it becomes more of a money pit than you want and sell it. Personally I think we are heading in to a recession so I’d wait until the price of boats plummets and then buy a newer one. By the way, what year is the boat and how many hours are on the engines?

Buying a boat has been the most expensive thing that I have ever done. Boats are incredibly expensive unless you do your own repairs, updates, etc.. Then they’re just expensive. That said, I have had the time of my life on my boat and don’t regret it at all.

The best of luck to you.

Cheers

 

[seabum]

Buy the boat!!!!

Ahoy,


When buying a boat it is very Important to keep two highly important factors in mind.
1- Never attempt to justify an irrational decision with a rational criteria. If you attempt to do so you will never grow a flower garden, eat a steak , enjoy a finer wine, and so on...
2- Buy the boat, pay the bill, set in the harbor and watch a beautiful California sunset and pity this idiots on the PCH looking at you enjoying life in the harbor.
I took at the largest student loan I could get my last semester of grad school (about 40 years ago) and I spent that loan money on a boat. Managed to finish school. lived in an apartment for many years, drove an old car, but I had a boat.
I have never regretted that decision.

 

[Davb1947]

Who can put a price on good, clean, healthy, challenging, fun? Especially the kind you can share with family and friends? The kind you can go into as deeply or casually as you wish? A lifelong pursuit or something you do, say you did it, and give it up, and you’re better and wiser for having done it? Enjoy yourself!

 

[DCatSea]

Nothin' wrong with that.

We became idiots following a long foreign service life, after retirement. We quickly found out that it's an entirely good thing. It's not that you will spend a bunch o' cash on your latest hobby, but that you will enjoy doing it.
In addition, you will learn an awful lot about diesel engines and all of the other bits o' boat loosely attached to them; your hearing will improve, (What's that noise?); you will quickly learn to appreciate good weather and sea state forecasting (Get the NOAA app). Reading charts and screens will become second nature, much to your friends' ongoing amazement; your wardrobe will change almost overnight (who needs socks and underwear anyway), and you will soon become salty (whether you like it or not).
Pusser's Rum and Plymouth Gin will become your bevvies of choice (while alongside of course), bearing in mind that pre-9:00AM cocktails will turn you into a pirate)


Purchase good fenders and enjoy the heck out of your new pride and joy; leave committed scoffers on the dock, but forgive those who are contrite and beg to be taken out.

 

[gadahl]

I bought an older trawler for a good price, then spent four years and a lot of money learning all the systems, replacing most of the old wiring, electrical, navigation, pumps, pumps, pumps, batteries, etc, etc, etc. We sold her in almost factory condition. During our time with the boat we had great cruising experiences throughout Puget Sound, the Salish Sea, and north to the Broughtons. These experiences were priceless.
My big "if I knew then what I know now" take-away is this: Spend more up front for a newer boat in better condition. Restoring an older boat is a never-ending cycle of "Break Out Another Thousand." Boat systems fail. Old boat systems fail at the most inconvenient times. When the windlass dies, the toilet backs up, or the starboard main overheats, you have to fix it now, not when convenient for your cash flow.
Still, owning your own boat and learning how to safely and competently navigate her is the best. I'm an idiot, too.
GAD

 

[BandB]

Wifey B: Whatever became of the idiot? I mean the one whose friends said he was an idiot. He disappeared over a week ago. Come back to the pack of idiots.

 

[captfrog]

Also a certified IDIOT!

I owned a 34 Californian Marshall/Wellcraft for many years. I chartered fishing a cruises in N. Lake Huron, homeported off Mackinac Island, MI. I had twin Perkins 200’s, which were sweet. In my charter business I alternately used the engines unless running an after hours ferry run, which obviously was more economical on diesel.
Suggestion: in addition to an in and out of water survey on the boat and systems, I highly recommend engine surveys and be present for ALL of them. Then spend the money to have the valves adjusted. The you have a base line to which to go forward with. They are solid boats but your surveys will alert you to any pitfalls. Most insurance companies won’t insure a boat older than 10 yrs. without a survey!
Suggestion: take a boating course through the U. S. Power Squadron (preferred) or Coast Guard Auxiliary. This will give you a better understanding of the “Rules of Boating!” The side benefits will be the valuable networking you’ll receive from experienced boaters.
There’s already been good advice given previously but I hope you will receive this in the best intentioned way. Good luck in your journey and please don’t be discouraged.

 

[Dstancil]

Didn’t see this comment as I did not want to repeat. Check with the marina and I am sure they have a list of “approved” vendors for various services. One of the first services you will need will be the cleaning of the bottom, probably monthly. This will cost you in the estimate of $50-$75 per month. Assuming you got a marine survey before you purchased, that survey should give you a target list of potential repairs.
Enjoy!

 

[88FuHwa]

But we are all happy idiots.
I have 120 HP Perkins diesel in our 35 foot Fu Hwa, probably similar to the boat you are buying. We use at most 1.5 gallons per hour at cruising speed, an ear-flapping 7 knots.
With respect to cost, you can't take with you anyway, so what else would you spend your discretionary income on? Women, song, drinks? Boating is a thrill!

 

[PhatDad]

That is sound advice indeed. I'm not even sure if I want to go to Cartalina. Well maybe just for that incredible mooring. I'm thinking I'll get out of the bay to fish and look at whales . I just found out that sometimes you have to go out 80 miles to catch tuna while other times it's 5 miles. I'll wait for the closer hunts. I told same guy I was considering Chula Vista Marina and he yelled Noooooo!!!!! Too far from the mouth of the bay. I NEVER would have seen that. This boat thing seems riddled with mines!!

Agree. Chula is not worth the couple bucks you save every month slipping there. They have also had a boat break in problems, I hear. Pick up a slip along Harbor drive.

 

[Jacques Burgalat]

Landlubberduck,

Buying a boat simply because you're "bored", and then wondering what it's going to cost you in gas, makes me think that your friends' assessments aren't all that far off.

Don't get me wrong, I'm not being judgmental. I bought a bigger "first" boat at an even later age without ever having rowed a dinghy before.

All I'm saying is beware of what you're getting into financially, and then multiply it by 10.

One thing I can assure you of is that if you keep up with it, you'll never be bored again.

Jacques

 

[Oldgeezer]

At our marina we have a group of power boaters who simply use their boat as a cottage, they never go anywhere, but are close to home and can party all weekend, and the cost/convenience is way better than a real cottage.

 

[Wayfarer]

Lots of newbies and first time posters in here. Welcome to the idiot's club!

 

[FoxtrotCharlie]

I'm so proud to be a member of this Idiots club - no better place to hang out

 

[Fighterpilot]

I have bought 5 boats and sold 4 over the last 15 years. Still trying to figure out what I want, I guess. The last boat I sold was the Californian 34LRC with the Cat 3208s. Engine parts were expensive and hard to get, ie, the risers for example. Likewise the TD502 both failed on me and with the local mechanic I used took months to get them repaired/replaced. But note your engines are Perkins so don't know about them. But if tx are TD502 pay attention to them.


My experience indicates you should plan on spending money, even if you can do a lot of the labor your self.



But the 34LRC was comfortable, easy to work on down in the bilges, and had it not been for the tx. issues would probably still own it--but when the 2nd tx started to fail I said enough is enough. Sold it.



Determined the next boat would have Cummins, and do 20 knots. Be stable at anchor, air conditioned, haul up to 20 people, fish 10 or so and sleep 6 or more. 40K budget. Finally found one. Trojan 10 meter express. But it took me 4 boats and a pile of money to figure it out. So hang in there. It is an adventure. Enjoy it along the way.