Appreciate it, I would've never known the service existed, thank you all.That is an excellent idea. A great way to dip your toe in with no long term commit or huge up front investment.
Yes understood on the burden of just getting coverage and I need to a few years to work on that. But how do most yatch owners finance $2million dollar plus vessels? During low interest rates, they could just borrow against their assets, which made sense.I would say don't do it. In every case, I would say don't buy a boat unless you can afford to pay cash for it. Also, you need to really drill down on what is available, and how much it will cost for insurance that covers Hurricanes on PR.
In my personal experience, everyone that I know that bought a 2 million dollar boat could easily afford to pay cash for it. They might not have due to some tax reason, or something, but it wasn't because they didn't have the cash. I had one friend with a boat that was valued right around 2 million, used (it was 3.5 new), and his insurance was $50K a year!Yes understood on the burden of just getting coverage and I need to a few years to work on that. But how do most yatch owners finance $2million dollar plus vessels? During low interest rates, they could just borrow against their assets, which made sense.
Doesn't it make theoretically more sense to get a loan, if you can write off the interest expense?
It will be achievable to have a monthly income to cover something like this, but to pay in one lump that could mean savings of 20 years? Is that really necessary if it was treated as the primary residency? That is another struggle to deal with.
As stated above. Wire transfer the CASH.But how do most yacht owners finance $2million dollar plus vessels?
A purchase of <$300,000 primary residence, sure. And that is how you are thinking about this purchase.Doesn't it make theoretically more sense to get a loan, if you can write off the interest expense?
This is why it is necessary to have pre-purchase inspections. To know what is obvious to a trained eye that will be immediate problems to address.It will be achievable to have a monthly income to cover something like this, but to pay in one lump that could mean savings of 20 years? Is that really necessary if it was treated as the primary residency? That is another struggle to deal with.
We are talking about a boat that can do 22 kts if you can afford the 125 gallons per hour. Granted, you can slow down to 9kts and it’s probably a 1 gallon per nautical mile boat. I am assuming that you will still be in the MAN’s allowable operating window. Big diesels like these have minimum temperature and RPM requirements which some times doesn’t allow for economical running.
Yep.This issue of fuel burn in my mind blows away any other concerns that have been raised. You would need a dedicated bank account just for fuel. If you compare to say a trawler, this thing could easily burn 40 times more fuel or worse...
Interest on home loans is relatively low to start (say 6% now) , so with your tax write-off if you're in a high bracket, you can get that effective interest rate down to 3-4%, which is below even T-bill returns. So it can make sense to take out a home mortgage even if you have the means to buy with cash.Yes understood on the burden of just getting coverage and I need to a few years to work on that. But how do most yatch owners finance $2million dollar plus vessels? During low interest rates, they could just borrow against their assets, which made sense.
Doesn't it make theoretically more sense to get a loan, if you can write off the interest expense?
It will be achievable to have a monthly income to cover something like this, but to pay in one lump that could mean savings of 20 years? Is that really necessary if it was treated as the primary residency? That is another struggle to deal with.