When it comes to investments, the whole point is for it to appreciate in value. While there are certain necessities that will depreciate over time such as cars, you can make smart choices on your other investments.
Luxury items can be very lucrative purchases, but that’s not always the case. Boats are associated with wealth but are they good for yours? Are boats a good investment to make in general?
Follow along as we answer these questions before you decide to make a decision.
Are Boats a Good Investment?
Let’s get right to the point, no they’re not. In fact, they’re actually terrible investments to make. So much so that it’s said that the best day for boat owners is the day before they buy and the day they sell because boats are so much of a hassle.
Now that we’ve established the answer, let’s further explore why most people often regret buying a boat.
Are Boats Money Pits?
The number one reason people regret getting boats is that they are money pits. They’re extremely expensive and depending on the model, can cost you anywhere between twelve to one hundred thousand dollars on average.
The cost of boats doesn’t end once you buy them though, it’s ongoing. Like any mode of transportation, it’s going to need upkeep. Boats need registration, maintenance, and insurance and your location plays a part in what those prices end up being.
Typically, boating insurance costs 1.5 percent of the cost of the boat for a year. For more hurricane-prone areas like Florida, this will be more due to extra coverage known as a storm-deductible.
Gas is also required and will run you about three hundred dollars per outing. If you choose to use your boat regularly during the summer months, this amounts to thousands of dollars you’ll need to budget for.
Along with paperwork and gas, you’ll need to factor in storage for the winter months. If your house doesn’t have enough room to store your boat, paying for a place will be your alternative.
Depreciates Fast
Another reason why buying a boat is a bad idea is because it depreciates at a very fast pace. In fact, boats lose more value than cars do in their first year. They tend to break and have more issues than automobiles and owners end up taking big losses when it comes to selling.
Good Alternatives
While buying a boat may not be the best use of your money, there are ways to experience this luxury without the long-term commitment.
A less risky way to boat is to rent one when you want. Renting is a more cost-effective way to live out your boating dreams than owning. And although it won’t be yours, it’s still a nice luxury to be able to rent one for however long you desire.
Another alternative is treating yourself to a boating excursion like that of what Notos Sailing Chania provides. This way you won’t have to do any work, just sit back and enjoy the ride with your guests.
Boats Will Sink Your Wallet
The answer to the question of “are boats a good investment” is so obviously no for so many reasons, but luckily other options are available for those looking to take boat rides. It’s possible to take part in the activity without breaking the bank and if your finances aren’t in tip-top shape, or even if they are, it might be best to skip the purchase and make a wiser investment.
While boating may provide you with a next-level experience, buying a boat is an investment that is sure to make your money sink!
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