I'm exhausted.
Since starting a new job nine days ago, I've worked eight of 'em. It was totally my decision, and I loved doing it. Not only was it helping our finances get back in order after a looooong time of un/underemployment, but I've got a sense of purpose, of value. Not that I wasn't valuable to people, mind you. My loving family has always thought of me as valuable, but it's nice to feel it while producing positive results for your employer. I've even developed a mantra that I've been repeating for a while now: "Every day I prove my worth to earn our berth", which is my way of focusing on our goal of getting our vessel within the next two years. I know this isn't really about becoming a liveaboard, but it's one of our major steps along the path. And right now, the next part involves lots and lots of time getting our money straight.
While we wait for our nest egg to get started, we've been trying to decide whether we should purchase a boat outright or save up for a down payment and take out a loan. The option of a loan, from what I have followed on the subject, is difficult because of two specific factors:
1) Banks don't want to lend money on older boats, even if the boats are quality-built. They're (justifiably) skittish over boats more than 20 years old.
2) Banks don't want to lend money to people who don't have a home address. It's like there's nothing that ties them to any particular place if the mood hits them or something...
Mind you, there are banks out there who DO work with liveaboards, but those are limited in number and there's usually a large down payment (20% would be minimum, 25% and higher is recommended) and higher interest rates to eat up monthly income. What it comes down to is whether we want to have a "rent" for a while longer or settle for an older boat? I'm leaning towards purchasing a boat outright, however that would have us doing a nice amount of repair/maintenance that we may be underqualified (read: definitely underqualified) to perform.
At least I'd be enthusiastic about the attempts to repair the thing. Just what we need, an enthusiastic repairman who knows virtually nothing on the subject. In all seriousness, I know I'll be learning how to maintain and repair all the systems on the boat that I possibly can. It's not just convenient; it could potentially save our behinds.
Despite these difficulties, we're more dedicated to the dream than ever. We have two pictures of a "dream yacht" posted in our house, one on our bathroom mirror and one on our refrigerator, to inspire us every time we look at it. I feel like it's working, as I'm using it to keep me focused on what I need to do in order to achieve this dream. It may sound silly to some, but a good friend once told me that positive breeds positive, and negative breeds negative. I'd rather look at a boat than a bunch of other papers while I'm waiting for our dream to come true. It's just that the waiting really is the hardest part.
Darn you Tom Petty for being right!
Saturday, September 19, 2015
Thursday, August 13, 2015
Beginning the process, step 1: Living the Dream... through Research!:
So we went to a boat auction.
Several months back I signed up for several notifications of local auctions, but as it turns out the internet is full of misleading information. As an example, I was recently made aware of an online auction of a cargo ship, approximately 210 feet in length. Although roomy, I'm wagering that the slip fees would be a bit beyond our current income. There have been better notifications, but that one was one of my favorites.
But we did receive notification of a live auction close to home, so on an early Saturday morning we woke up and headed out to Long Beach. We eventually ended up in a parking lot a bit of a distance away from the auction site, forcing us to make our way by walking along a path that taunted us with beautiful boats that would make our liveaboard dreams come true. Forty-plus foot yachts (yeah, that's the word I'd use to describe most of these bad boys) beckoning with signs that posted the information of the boat brokers hired to get these money pits sold...
It made me think.
It made me question the viability of our dream, the fact that these people whose annual income would double the income I've managed to bring in within a decade are attempting to sell these majestic vessels. I could've literally passed out from the beauty of some of these "potential" homes. It was almost too much to bear. I began thinking about the reduced space, the lack of growing space (I got my green thumb due to my maternal grandfather's love of gardening - my son and I are currently working on a portable herb garden), the potential for homelessness... It all weighs on my conscience, on my thoughts regarding this lifestyle. I continually weigh the pros and cons, making a real concerted effort to NOT influence my decision with idle daydreams of scuba diving amongst the coral reefs of the world, of swimming with whale sharks around Baja California, of the amazing experiences I can bestow upon Kiddo...
We finally arrived, and Kelly went in to register for the bidding (we had a little bit of cash, but were not intending on spending it. If a boat that fit our parameters was found, however...) and I perused the lots. Everything from fishing tackle to lifeboats to a HDTV was sitting out looking for future homes. I glanced through and saw nothing that we could live without, and began to scan the available boats from a distance.
Many of the vessels were in a state of disrepair, as we expected. There was a mix of sail and power boats, fairly close to 50/50. None of them had the two private cabin requirement that we knew we needed, so we knew early on that this was more of a chance to network rather than look for a floating domicile. In fact, we learned from conversations that one of the boats up for auction was purchased for $10 and then registered here, giving us ideas for the future... as long as the boats aren't totally thrashed. Like the pre-1970 (I feel comfortable judging THAT much) wooden boat that literally had holes in the deck and scared the bejeezus out of us. Because of some back issues, I decided to opt out of the inspection "away team" and left it to Kelly and Kiddo. They proceeded to venture onboard several of the boats, with Kiddo being the only member on at least two of the boats.
Watching him jump on and walk around as if he was on land was amazing to behold. He walked around a couple boats like he was born to it, not losing his balance in the slightest despite the occasional choppiness. I honestly don't know if it's genetic (I always felt at home on board a boat and have never felt the slightest bit seasick) or if it's something that children are prone to do, but my boy was walking around like a pro, as seriously as you could imagine an inspector with at least ten years of experience would conduct himself. He was inspecting the interiors of boats that Momma and Daddy were not venturing on, giving us information on it ("It was real dirty") that we were able to utilize in our bidding decisions.When it was time for us to turn in our bidding number and roll, there were no complaints from him with regards to having to leave without purchasing a boat. He is normally an awesome boy, but he outdid himself this day.
I realized that if I was going to give Kiddo an environment conductive to a well-rounded education, onboard a boat would be right up there. He has a passion for nature in all its forms (he's as fascinated about outer space as he is with underwater) and the options for summer vacations for us can be pretty wide-ranging with boat ownership, giving us more of an opportunity to connect with our planet and each other that most people only dream about.
We are so getting a boat.
Several months back I signed up for several notifications of local auctions, but as it turns out the internet is full of misleading information. As an example, I was recently made aware of an online auction of a cargo ship, approximately 210 feet in length. Although roomy, I'm wagering that the slip fees would be a bit beyond our current income. There have been better notifications, but that one was one of my favorites.
But we did receive notification of a live auction close to home, so on an early Saturday morning we woke up and headed out to Long Beach. We eventually ended up in a parking lot a bit of a distance away from the auction site, forcing us to make our way by walking along a path that taunted us with beautiful boats that would make our liveaboard dreams come true. Forty-plus foot yachts (yeah, that's the word I'd use to describe most of these bad boys) beckoning with signs that posted the information of the boat brokers hired to get these money pits sold...
It made me think.
It made me question the viability of our dream, the fact that these people whose annual income would double the income I've managed to bring in within a decade are attempting to sell these majestic vessels. I could've literally passed out from the beauty of some of these "potential" homes. It was almost too much to bear. I began thinking about the reduced space, the lack of growing space (I got my green thumb due to my maternal grandfather's love of gardening - my son and I are currently working on a portable herb garden), the potential for homelessness... It all weighs on my conscience, on my thoughts regarding this lifestyle. I continually weigh the pros and cons, making a real concerted effort to NOT influence my decision with idle daydreams of scuba diving amongst the coral reefs of the world, of swimming with whale sharks around Baja California, of the amazing experiences I can bestow upon Kiddo...
We finally arrived, and Kelly went in to register for the bidding (we had a little bit of cash, but were not intending on spending it. If a boat that fit our parameters was found, however...) and I perused the lots. Everything from fishing tackle to lifeboats to a HDTV was sitting out looking for future homes. I glanced through and saw nothing that we could live without, and began to scan the available boats from a distance.
Many of the vessels were in a state of disrepair, as we expected. There was a mix of sail and power boats, fairly close to 50/50. None of them had the two private cabin requirement that we knew we needed, so we knew early on that this was more of a chance to network rather than look for a floating domicile. In fact, we learned from conversations that one of the boats up for auction was purchased for $10 and then registered here, giving us ideas for the future... as long as the boats aren't totally thrashed. Like the pre-1970 (I feel comfortable judging THAT much) wooden boat that literally had holes in the deck and scared the bejeezus out of us. Because of some back issues, I decided to opt out of the inspection "away team" and left it to Kelly and Kiddo. They proceeded to venture onboard several of the boats, with Kiddo being the only member on at least two of the boats.
Watching him jump on and walk around as if he was on land was amazing to behold. He walked around a couple boats like he was born to it, not losing his balance in the slightest despite the occasional choppiness. I honestly don't know if it's genetic (I always felt at home on board a boat and have never felt the slightest bit seasick) or if it's something that children are prone to do, but my boy was walking around like a pro, as seriously as you could imagine an inspector with at least ten years of experience would conduct himself. He was inspecting the interiors of boats that Momma and Daddy were not venturing on, giving us information on it ("It was real dirty") that we were able to utilize in our bidding decisions.When it was time for us to turn in our bidding number and roll, there were no complaints from him with regards to having to leave without purchasing a boat. He is normally an awesome boy, but he outdid himself this day.
I realized that if I was going to give Kiddo an environment conductive to a well-rounded education, onboard a boat would be right up there. He has a passion for nature in all its forms (he's as fascinated about outer space as he is with underwater) and the options for summer vacations for us can be pretty wide-ranging with boat ownership, giving us more of an opportunity to connect with our planet and each other that most people only dream about.
We are so getting a boat.
Tuesday, February 3, 2015
Space... the finite frontier!
As we look at different vessels for our first purchase, we are constantly reminded about the battle for space aboard these floating mobile homes. Having spent my teenage years in a mobile home I understand the limitations we'll be undergoing when we finally move to the ocean.
Our son has NO idea of what it'll REALLY be like!
It's kind of funny that we've been complaining about the lack of counter space in our apartments over the years and now we'll be going into a galley that may be even smaller. Not even enough room for our cooking gadgets like our stand mixer or roasting pan. We'll deal with it, like we've dealt with other constraints over the available room (or lack thereof). We'll make sure we have our own bedrooms with doors to give ourselves a semblance of privacy. We'll be making sure we have ample deck space for us to lounge around outside when the weather permits, further ensuring against cabin fever.
But our Kiddo loves to keep moving, and I worry sometimes that he won't have enough space.
We're blessed in that our son loves the ocean. He's totally onboard (forgive me the pun) with this decision, as if any kid his age wouldn't be. He'll be able to swim in the ocean at practically the drop of a hat. We explained the problems of living onboard a boat, the space constraints he'll be expected to deal with. Until we have a sampling of what we'll be experiencing, until he can actually live aboard a boat on a temporary basis (i.e. watching someone's boat, renting a boat to practice being a liveaboard, etc.) he really doesn't have an idea of what we're talking about.
He is really great at being pragmatic, though. For a six-year old, he is INCREDIBLY pragmatic. I've shown him videos of trawlers for sale that people have posted to YouTube, explained to him that we'll have a little space for some of his games, toys, and books but not a huge amount of space for storing them with us (we will have a storage unit that we'll utilize as a library/toy exchange periodically) and he is accepting of that... so far. We've been encouraging his desire to become an astronaut at every opportunity, eventually culminating in a future purchase of some binoculars for stargazing onboard a boat. And, yes, I have been reading up on the other liveaboard astronomers and have been learning a LOT. And a pair of binoculars are much easier to store than a telescope. Having interests that intimately involve nature is one of my primary reasons for desiring this lifestyle. Between games, toys, and exploring the world - and universe - around us, I think he'll be fine.
That's not to say there won't be a learning curve. I believe the biggest hurdle we'll encounter will be birthday/Christmas gifts from family and friends. One rule that we (and most other successful liveaboards) will live by is "If you bring something onto the boat, you must remove something else to ensure space". We'll be creating Amazon Wish Lists for family to utilize when those holidays roll around and remind them that gift cards for The Cheesecake Factory are always a good idea, as are amusement park tickets and movie passes. Experiential gifts, rather than material, will be the best options to conserve our limited room.
That being said, I will be practicing what I preach by removing from our house something of equivalent size when I upgrade my bass guitar. And for everything else I bring into our land-bound home. If I'm going to be the Captain, I had better lead by example.
Our son has NO idea of what it'll REALLY be like!
It's kind of funny that we've been complaining about the lack of counter space in our apartments over the years and now we'll be going into a galley that may be even smaller. Not even enough room for our cooking gadgets like our stand mixer or roasting pan. We'll deal with it, like we've dealt with other constraints over the available room (or lack thereof). We'll make sure we have our own bedrooms with doors to give ourselves a semblance of privacy. We'll be making sure we have ample deck space for us to lounge around outside when the weather permits, further ensuring against cabin fever.
But our Kiddo loves to keep moving, and I worry sometimes that he won't have enough space.
We're blessed in that our son loves the ocean. He's totally onboard (forgive me the pun) with this decision, as if any kid his age wouldn't be. He'll be able to swim in the ocean at practically the drop of a hat. We explained the problems of living onboard a boat, the space constraints he'll be expected to deal with. Until we have a sampling of what we'll be experiencing, until he can actually live aboard a boat on a temporary basis (i.e. watching someone's boat, renting a boat to practice being a liveaboard, etc.) he really doesn't have an idea of what we're talking about.
He is really great at being pragmatic, though. For a six-year old, he is INCREDIBLY pragmatic. I've shown him videos of trawlers for sale that people have posted to YouTube, explained to him that we'll have a little space for some of his games, toys, and books but not a huge amount of space for storing them with us (we will have a storage unit that we'll utilize as a library/toy exchange periodically) and he is accepting of that... so far. We've been encouraging his desire to become an astronaut at every opportunity, eventually culminating in a future purchase of some binoculars for stargazing onboard a boat. And, yes, I have been reading up on the other liveaboard astronomers and have been learning a LOT. And a pair of binoculars are much easier to store than a telescope. Having interests that intimately involve nature is one of my primary reasons for desiring this lifestyle. Between games, toys, and exploring the world - and universe - around us, I think he'll be fine.
That's not to say there won't be a learning curve. I believe the biggest hurdle we'll encounter will be birthday/Christmas gifts from family and friends. One rule that we (and most other successful liveaboards) will live by is "If you bring something onto the boat, you must remove something else to ensure space". We'll be creating Amazon Wish Lists for family to utilize when those holidays roll around and remind them that gift cards for The Cheesecake Factory are always a good idea, as are amusement park tickets and movie passes. Experiential gifts, rather than material, will be the best options to conserve our limited room.
That being said, I will be practicing what I preach by removing from our house something of equivalent size when I upgrade my bass guitar. And for everything else I bring into our land-bound home. If I'm going to be the Captain, I had better lead by example.
Wednesday, January 7, 2015
What the hell is an Aluminum Falcon?
As mentioned in the last entry, we narrowed our search to a specific type of power boat. Trawlers, specifically recreational trawlers, are perfect for our needs with great fuel economy with (usually) diesel engines, plenty of space, room outside for parties or fishing, and a plethora of advantages for a family like ours. Most importantly, there are a lot of them under $50,000. Several under $35,000. Many of those are later 70's models, but every so often there are some like a 1973 Ta Chiao Trawler that appear for $30,000 or so.
If we miss out on one of these trawlers, I'm not worried. In his book The Essentials of Living Aboard A Boat, Mark Nicholas discusses the idea that boats, like homes for those who are real-estate inclined, grow on trees. Many of our friends and family are unaware that we have studied real estate, including taking classes in real estate investment. When I was studying for my real estate license I heard the phrase "Homes grow on trees", meaning that if you miss on one deal, there will be another coming along because situations change, life makes changes to your life before you're ready. Boats, being a "luxury" item (to those who aren't liveaboards), are more volatile a commodity than land since in all but the most extreme circumstances boats will depreciate in value rather than appreciate. This means that there is usually a glut of boats on the market at any particular time. In going back every week or so and checking my saved searches on YachtWorld.com and BoatTrader.com, I see that to be the truth, and eventually the prices drop until they're sold or the owner decides to keep the thing. Either way, there's always new merchandise added to keep the volume fairly consistent and prices that remain competitive so we're not worried about missing out on a "boat of our dreams". Another of that model and year will be along eventually.
That being said, it's always interesting to look at the ads that are out there in case an offer "too good to be true" falls into our laps. Craigslist is a great resource for information, good and ill. These are either owners attempting to sell on their own without a broker (speaking as someone who has trained in real estate I firmly believe that with a good broker you get more than if you go it alone and will usually sell quicker) or from brokers making sure their listings are marketed as thoroughly as possible. It scares us that people get suckered in by ads like these without doing their due diligence. Most recently, Kelly saw a boat for sale where the owner had the cojones to claim that the purchaser would get their money back when and if they decided to sell. If I was purchasing, I'd make him sign a contract holding him financially responsible for that.
Although this particular seller was really just using language designed to get $12k of the $13k+ he spent on the boat back, the value of these boats will continue to drop as the boats age. Lenders want to loan for the purchase of newer boats. Insurers know the longer the boat is in operation, the more likely it'll sink. These aren't floating homes in terms of resale value, more like automobiles that start dropping in price as soon as they're off the lot. You could add electronics, remodel the interiors, and there will always be a ceiling of diminishing returns. Yeah, there may be some boats out there that are diamonds in the rough, like a classic muscle car found in a junkyard. I know my knowledge of boats at the present is rudimentary so I refuse to get suckered in on any of these deals. Not to say that I wouldn't discount it in the future, after we've lived aboard and could find a profit...
Our real profit from this purchase will be in the experiences. The trips we take, the look of enchantment on Kiddo's face as we go out to see the Gray Whale migration, the sunsets we'll watch over dinner (as opposed to the glow of our television), the fireworks on the 4th of July from the ocean's perspective... I could do an entire blog entry on this alone! There will be plenty of difficulties associated with it, but we'll look at those later.
Let me dream about those sunsets now...
If we miss out on one of these trawlers, I'm not worried. In his book The Essentials of Living Aboard A Boat, Mark Nicholas discusses the idea that boats, like homes for those who are real-estate inclined, grow on trees. Many of our friends and family are unaware that we have studied real estate, including taking classes in real estate investment. When I was studying for my real estate license I heard the phrase "Homes grow on trees", meaning that if you miss on one deal, there will be another coming along because situations change, life makes changes to your life before you're ready. Boats, being a "luxury" item (to those who aren't liveaboards), are more volatile a commodity than land since in all but the most extreme circumstances boats will depreciate in value rather than appreciate. This means that there is usually a glut of boats on the market at any particular time. In going back every week or so and checking my saved searches on YachtWorld.com and BoatTrader.com, I see that to be the truth, and eventually the prices drop until they're sold or the owner decides to keep the thing. Either way, there's always new merchandise added to keep the volume fairly consistent and prices that remain competitive so we're not worried about missing out on a "boat of our dreams". Another of that model and year will be along eventually.
That being said, it's always interesting to look at the ads that are out there in case an offer "too good to be true" falls into our laps. Craigslist is a great resource for information, good and ill. These are either owners attempting to sell on their own without a broker (speaking as someone who has trained in real estate I firmly believe that with a good broker you get more than if you go it alone and will usually sell quicker) or from brokers making sure their listings are marketed as thoroughly as possible. It scares us that people get suckered in by ads like these without doing their due diligence. Most recently, Kelly saw a boat for sale where the owner had the cojones to claim that the purchaser would get their money back when and if they decided to sell. If I was purchasing, I'd make him sign a contract holding him financially responsible for that.
Although this particular seller was really just using language designed to get $12k of the $13k+ he spent on the boat back, the value of these boats will continue to drop as the boats age. Lenders want to loan for the purchase of newer boats. Insurers know the longer the boat is in operation, the more likely it'll sink. These aren't floating homes in terms of resale value, more like automobiles that start dropping in price as soon as they're off the lot. You could add electronics, remodel the interiors, and there will always be a ceiling of diminishing returns. Yeah, there may be some boats out there that are diamonds in the rough, like a classic muscle car found in a junkyard. I know my knowledge of boats at the present is rudimentary so I refuse to get suckered in on any of these deals. Not to say that I wouldn't discount it in the future, after we've lived aboard and could find a profit...
Our real profit from this purchase will be in the experiences. The trips we take, the look of enchantment on Kiddo's face as we go out to see the Gray Whale migration, the sunsets we'll watch over dinner (as opposed to the glow of our television), the fireworks on the 4th of July from the ocean's perspective... I could do an entire blog entry on this alone! There will be plenty of difficulties associated with it, but we'll look at those later.
Let me dream about those sunsets now...
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