Decision Time to Live Aboard or Not

[redhead]

We are just a few steps further down this road (or sealane, if you will) than you are and here's our status.

We found the right boat but it's 3000 miles away and in another country - don't do this.

We've decided to rent out our house rather than sell - this simplifies many things and makes the transition a little softer. I know you are presently renting but my point is make this process easy on yourself and your stress levels and doubts will stay manageable.

Set a date and stick to it. Friends, customers, family - everyone will find a way to delay the move. I've found that change scares other people more than it scares me so we are telling everyone it's a "sabatical" - our friends are much more accepting now.

The point is, if it's on your mind as something you'd like to do, it's something you SHOULD do. It doesn't have to be forever. But regrets really stink.

Much good luck to you!

[letsgetsailing3]

I always feel like Suzie Orman in these discussions, but without more information, I have to say no. You haven't thought it through enough, or at least haven't provided anything close to the amount of information that you'd need for any reasonable advice.

Do a spreadsheet, calculate what you have in savings, and what you'll have AFTER this adventure.

I don't mind people living a "simple life". I do, however, mind people living a simple life because they didn't think through their major financial decisions BEFORE they made them. I'm a big fan of not putting all your eggs into one basket, and launching with them off to sea.

Boats are money pits. I repeat, money pits. So if you can do this, and have enough in your financial basket to have what you need to live on even if it fails, then go for it. If not, don't . But don't kid yourself about what you need to live the lifestyle you want either way.

Most of the people here approve all the requests. I don't. If you want my blessing, you have to show me the plan and the money.

[Dockhead]

Well, I'll give you a slightly different perspective, for your consideration.

Written from on board my yacht moored in the Hamble River, feeling a bit like a boat bum after living aboard for three weeks.

If you want to own real estate in the UK, you will want to buy it right now. Prices are already taking off, and this will only gain speed -- that's because Quantitative Easing put trillions into the world economy, printed money which will cause inflation, especially asset inflation, which means especially house price inflation, as soon as the "velocity of money" picks up a little, and it seems already to be picking up. So now with record low interest rates and prior to the coming huge wave of asset price inflation will later be seen as a historic opportunity, in my opinion. Just beware short interest rate fixes, which could bankrupt you when (not if) interest rates spike up. Pay whatever is necessary to fix the rate for as long as possible, and consider that to be the term of the loan (can you pay it off after the interest rate fix expires?).

OK, but that's only if you want to or need to own property. You already have rental property in London (good move!!!) and maybe that's all the residential real estate you need. Maybe you are happy to just rent? The rental market is very efficient in the UK with very low rents compared to asset values (generally around 2%). If you don't need another house as an investment, if you've got one good asset already, and if you don't mind living in rental property (most Germans do -- it's a cultural thing as much as anything), then this could be a perfectly reasonable solution for you.

Or if living aboard is the only comfortable path to yacht ownership, you could give that a shot. I am here to tell you that it is not very comfortable. If you actually take your yacht to sea, then you are forever rigging the cabin for sailing -- it's hard to create really home-like conditions like that. But if you don't take the yacht to sea, what is really the point to having it?

Mooring is another consideration. It's quite hard (and probably illegal most places) to live aboard on a mooring. You have to get back and forth to shore, and you need to contract shore services somehow (which is more expense). You have to generate power and you have to get water from time to time (thank God around here you don't have to pump out your sewage at least). But a marina berth on the South Coast will cost you as much as a modest flat. So I think, on the South Coast at least, you might come out even keeping your yacht on a mooring and living in a rented flat, compared to renting a marina berth, and this will be much more comfortable than living aboard in a marina berth, not to speak of living aboard on a mooring.

Good luck at whatever you decide, and let us know how it turns out!

[conachair]

Only one way to find out...




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[skippy]

i am gonna run my husband over to get to the boat!!! we are both getting rid of businesses and have taken 4 years to get rid of houses, land, cars etc stuff. NO MORE!!! Give me the boat! House??? NO WAY!!!! Had plenty of those!

[s/v Breakaway]

Tina,
Assuming you feel you can afford buying a boat and living aboard, go for it. I think in our old age we will regret things that we didn't do more than things that we did. Store your precious keepsakes, try it for a few years and if you don't like it, move back ashore.

[Sailing Kiwis]

So we went and looked at a yacht. Stupid thing to do I know because it was close to perfect for our needs! If only the money had come through would have bought it.

Decided it's definitely what we want to do so we're going to sell the house to speed up the process. (Anyone want a house by the snow in New Zealand? ) now just more waiting for us....

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[tinacatling]

Originally Posted by redhead

We are just a few steps further down this road (or sealane, if you will) than you are and here's our status.

We found the right boat but it's 3000 miles away and in another country - don't do this.

We've decided to rent out our house rather than sell - this simplifies many things and makes the transition a little softer. I know you are presently renting but my point is make this process easy on yourself and your stress levels and doubts will stay manageable.

Set a date and stick to it. Friends, customers, family - everyone will find a way to delay the move. I've found that change scares other people more than it scares me so we are telling everyone it's a "sabatical" - our friends are much more accepting now.

The point is, if it's on your mind as something you'd like to do, it's something you SHOULD do. It doesn't have to be forever. But regrets really stink.

Much good luck to you!

Thank you so much for that advice and wise thoughts
we are going to do it
Havent told anyone yet and yes we are preparing for a lot of people to tell us NOT to do it

[ElGatoGordo]

Some people's worst case scenario is so far beyond reason as to be paranoid. Afford it? Some would say if you can't return to your current lifestyle with ease you can't. I say that's silly. I had a heart attack at 36 and lost everything. I wish I would have spent my savings on a few years cruising instead...I'd have been in the exact same position and had a LOT better time! :-) 9 years later we're back on top of things, so if I had blown the wad on fun instead we'd STILL be right where we are. The world will not stop turning if your finances are not fat when you're done (IF you're EVER done!)

Now that our kids are in college it's just a matter of time....can we afford it? Hell no. But I'm also of the opinion that I would rather not be sitting there at 80, with plenty of money and unable to go...wishing I had.

My guess is the same one who would say "Not enough info...if you can't return to your current life you can't afford it" also says you need $2000 or $5000 per month to go. And every electronic gadget. And a 40 footer. and ASA classes. etc, etc, etc. Just sayin

[tinacatling]

thank you Gordo - we are now working on our escape plan
WE made the decison to GO with thanks to everyone on the forum
I agree with you there is NEVER a perfect time to do anything

Tina

[satdiver]

To put a slight spin on this I've almost always livedaboard. My parents raised us aboard and after I joined the Navy I livedboard most of the years I was in.

I did the reverse and invested in real estate as a liveaboard. I continue to do this now but mostly only commercial storage. I also own an apartment in NYC which I got sucked into with my ex wife which I rent out and easily manage remotely and a few other properties in NC which I lease to the USCG for putting up NCO's and younger officers on TDY I get less than market value but they always pay their bills breaking me even.

I like doing this because it gives me leverage if or when I ever need it with a lender. Also as a commercial diver it is my version of a 401k. I personally discourage people from selling a house to invest in a boat. Financially it seems somewhat reckless IMHO. Unless you are selling the house to 1031 in some rental property while using savings and a small loan to get a boat.

But I don't know your financial situation so I cannot speak to that but I do know from my own experience and I'd say I have a little more financial freedom than many of my neighbours that gave up everything. I personally liveaboard because I love sailing and I'm a minimalist by personality.

But I also realize one day if I'm lucky I will be in my 80's and I saw my parents struggle in old age because they literally had no plan for when that day came where they could no longer live on the boat. I think a lot of people young and even older take a myopic view when looking at the cruising life.

I'm pretty sure the purchase price of the boat I live on now was going to fund the hospice the owner was in. I was told this boat was his last asset by his daughter several years after I bought her.

[Sailing Kiwis]

For us, selling the house and investing those funds saves us 6k a year in expense and earns 4k or more in interest. That's 10k a year difference. No property managers to worry a bout and no maintaince to pay for. Seems a win to me. If we decide to stop cruising money plus interest is still sitting there waiting for us....

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[Reefmagnet]

Originally Posted by Sailing Kiwis

For us, selling the house and investing those funds saves us 6k a year in expense and earns 4k or more in interest. That's 10k a year difference. No property managers to worry a bout and no maintaince to pay for. Seems a win to me. If we decide to stop cruising money plus interest is still sitting there waiting for us....

Sent from my GT-I9300 using Cruisers Sailing Forum mobile app

I'm hearing you. The price of upkeep for a house is getting scary. Everyone wants their pound of flesh.

We're in the process of getting ready to move aboard. Cancelled my business's yellow pages add for next year and given the cat to our daughter. Originally we planned to sell the family home and buy a cheaper investment property / shares; buy a reasonably decent boat and sail off into the sunset on an open ended cruise. But, as fate would have it, we have ended up with a fit for purpose beater boat for a fraction of what we were looking at paying so we've decided on a revised plan to keep the current house and rent it out for a year or two. If we decide to continue on after this we'll sell up entirely and either pimp out our clunker or upgrade. Kind of hedging our bets, but it gives us an OFM (Oh F**k Me) option.

[John Casey]

Tina, similar to what Satdiver said, consider an alternative to binary sell/buy a house and look at a broader financial picture.

There are many ways to handle your money and many opinions on the best way for you. Of course while you should listen to (some of) them with care, none of the opinions really matter other than yours, provided you are comfortable with financial planning and have some resources to work with. As you are considering this kind of life, I assume this to be the case.

Having cash tied up in static assets is not necessarily a bad thing provided it is earning for you...in the long run. Steady stable tenants, blue chips with DRIPs, etc should be the focus, and not what all the talking heads shout about during their financial sound bite. While some people can make good money "playing" real estate and the markets, you don't want the worry while you are trying to enjoy/learn your new live aboard lifestyle.

As far as the actual decision to live aboard goes, my advice is to try it now, so as to not be disappointed you didn't later.

My wife and are have just started our own 5-year plan to get there as well.

Good luck to you.

[yardie]

We thought about renting out our flat. We decided it would be more prudent to sell and just put the money in index funds, ETFs. Our co-op just voted in about 2 million euros worth of renovations to the building exteriour. Our share will be 17,000EUR split over 3 years. They voted nay on replacing the failing heat pump. So that is going to be a nasty little surprise a few years down the line.

With all of this we feel we would be better off with our money in a high yield, medium risk investment account. With all the work that needs to be done any savings we were making in owning vs renting has evaporated.