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Usually, you don’t think about a boat as a natural investment for your family. Sure, you consider buying a car or buying a house, so is a boat really that different? Some argue it is, seeing as a boat is not essential. You need a car to get around, and you need a house to…well…live!
Let’s say you have the money for a boat, and it’s something you’ve genuinely considered for some time. Should you go ahead and make the purchase? Before you make any rash decisions, it does help to understand some key considerations:
What do you gain from having a boat?
Strangely, you gain quite a lot. From a family standpoint, you now have something fun to adventure on. Summer days can be spent out on the water, enjoying your boat together! Also, from a financial standpoint, it can be a pretty decent investment. If you wanted, you could rent your boat out for other people to use. This can bring in a nice bit of extra money when you’re not using it yourself.
Therefore, there’s emotional value in a boat, along with some financial gain. So, it’s not simply a case of splashing the cash for the sake of it!
How much does a boat cost?
Boats vary in price depending on what style of boat you’re looking for. Generally, it’s safe to say that the bigger boats are the more expensive ones. This follows the trend of houses where more space equals more value. We can’t give an exact price range as it really is very different. But, you can expect to pay tens of thousands of dollars on a boat, possibly, even more, depending on the size.
Right away, that’s a big concern for many families. Then, factor in the additional costs of owning a boat. A few key things include the cost of storing your boat, paying for insurance, taxing your boat, mooring fees, maintenance, registration – the list goes on and on. To make matters more concerning, all of these costs are ongoing and have to be paid year after year.
There’s actually a really good article that explains how much it costs to own a boat by breaking down all the costs per year. It’s well worth giving that a read if you want a more complex analysis of everything you have to pay for. As a summary of the article, it basically says that a $20,000 boat will end up costing $4,300 per year.
So, should you buy a boat?
Realistically, it becomes a debate as to whether or not it’s worth paying the costs of owning a boat. Can you afford these annual payments for something you might not use all the time? If you can find ways of making money from your boat – like renting it out – you may offset a few of the ongoing costs and actually make money.
Clearly, the decision is yours to make. If you’ve saved up for years and your whole family is keen to buy a boat, then go for it. But, it might be worth considering some more essential investments before you being a nautical adventure.