For those with a new boat

[teamerickson]

Maybe homes in Texas didn't appreciate as much as the rest of the conutry because nobody wants to live in Texas?

[Bozboat]

Maybe homes in Texas didn't appreciate as much as the rest of the conutry because nobody wants to live in Texas?

Texas is one of the fastest–growing states in the nation. Since 2000, the state’s population has increased by 12.7 percent, nearly twice that of the nation (6.4 percent).¹

http://www.window.state.tx.us/specialrpt/tif/population.html

[jkendallmsce]

Maybe homes in Texas didn't appreciate as much as the rest of the conutry because nobody wants to live in Texas?

I am ONLY joking...but one oif the happiest days of my life was seeing WELCOME TO TEXAS in the rear view mirror getting smaller and smaller.

Sure Texas is a great place except for Texas Aggies, red/fire ants, water moccasins, an occasional hurricane, drought, hail storm, sand storm, humidity sooo thick you can't breath, paying $1000/mth for your electric bill, stumps in their lakes....but boy do I hate those Aggies!!

A great day was when TAMU got beat by OU at TAMU's home 77-0....

[Asmodeus2112]

I also grew up in WI and have returned there over the last two summers. Homes on the lakes I was on were still holding most of their value and while there probably is more activity, there seemed to be more than enough wealth from Chicago to keep the demand above supply. I wish is was different, because I would like to consider a lake home there.

My bigger point was that if you consider how many lakes there are, and many have fairly expensive real estate and there is a pretty reasonable population that can afford it, seeing some 50-80k boats sold is not so crazy. I surely admit that Lake Austin is an exception, but those are the people that are buying new boats, I see a ton of them. Put it this way, what percentage of homes int he country are lakefront? I don't know, but I bet it's a small number close to the same percentage as the people that have the money.

[Asmodeus2112]

Maybe homes in Texas didn't appreciate as much as the rest of the conutry because nobody wants to live in Texas?

I'm not fond of living here, although Austin isn't too bad. Still, you can hardly say that nobody wants to live in Texas. As far as I can tell a whole bunch of people for WI think they would like to live in TX....

[Asmodeus2112]

You should get out more often....How many of those lake front homes are second/weekend homes and how many do you see FOR SALE on them, bank owned, etc. Cause those houses dropped in price pretty much the same percentage as the $200,000-400,000 house did...so if you 2M dream house dropped say 50% like a lot of homes did across the country, your house is now worth $1M. So you have lost $1M in equity...makes ya wanna go out and but a new BU doesn't it?? and pay in cash that you don't have?? In many cases the higher end homes dropped a greater % than those say in the $2-4K range.

I saw one in Danville CA that sold in 2006-7 for $4.75M (before the crash) bank owned, sold for $975,000 last year. That is an 80% drop!!....I did not look at it, so I don't know the whole picture, but an 80% drop in value is a hefty hit. And it aint just in CA, my sister lives on Lake Tapps in WA, same there, home prices easily dropped 50%, many depending on when they were purchased and or refied have dropped well over 50%.

One of my rentals, guy bought a house in Elk Grove, CA...had to have been one of those no look/peek loans...bought it for $950,000, looking on Zillow it appreciated to 1.12M, he walked away and the bank sold it for $500,000!! How'd you like to be in your dream home and be upside down for $500,000?? in only 2-3 years taboot. Heck I would walk away, cause that house will NEVER be worth $1M in my lifetime, and I've got another 30-40 years on this planet. knock on wood

The grass aint always greener on the other side of the fence/lake/whatever.

What lakes have you seen this type of depreciation? I'd like to Zillow and see the sky falling. Maybe some of my rich Texas friends can scoop some of those deals up. Hell, 50% to 80% drop in lake house values?!? Wooohoooo!

[jkendallmsce]

What lakes have you seen this type of depreciation? I'd like to Zillow and see the sky falling. Maybe some of my rich Texas friends can scoop some of those deals up. Hell, 50% to 80% drop in lake house values?!? Wooohoooo!

I gave ya 2 examples/locations...no one in their right mind would expect that to be the case for the entire country...Check Lake Tapps, WA for one...you can zillow it all ya want...and another is Lake Tulloch, CA.... and I bet Lake Wylie, SC is another....maybe I should have prefaced it with "places people want to live, not have to"! ANd the 80% was just a confirmed example that I know of!!

I am sure there are some mudholes left in Texas...I bet if I put some time into it, I could find some lakes around either Houston or Dallas that are 1/2 of what they were back in 2007-2008.

You surely must be an Aggie!! I have a great pic for ya...shows a pickup with water up to the back window in Lake Austin...and is has the TAMU sticker in the back window! I guess I can't paste the pic...too bad very funny though!!

Edited September 21, 2012 by jkendallmsce

[SurfgateBob]

4% on a 15 year boat loan? For less than a 135k loan? (ballpark for a pigged out top-of-the line something or other) I am skeptical, but if you're saying this from actually seeing that rate for a boat loan then I am surprised.

Go on bankofamerica.com... you'll see for loans above 50k and less than 75k you'll get 4.29 for 180 months. My wife called and were quoted 4.09 (iirc) after they do some standard pre-qual stuff.

[SurfgateBob]

Maybe homes in Texas didn't appreciate as much as the rest of the conutry because nobody wants to live in Texas?

DISLIKE!!!!!!!!!!!! I miss Texas.

[SurfgateBob]

4% on a 15 year boat loan? For less than a 135k loan? (ballpark for a pigged out top-of-the line something or other) I am skeptical, but if you're saying this from actually seeing that rate for a boat loan then I am surprised.

Here's what's on BOA today... was 4.29 the other day. $50,000 - $74,999 180

4.39

[Asmodeus2112]

I gave ya 2 examples/locations...no one in their right mind would expect that to be the case for the entire country...Check Lake Tapps, WA for one...you can zillow it all ya want...and another is Lake Tulloch, CA.... and I bet Lake Wylie, SC is another....maybe I should have prefaced it with "places people want to live, not have to"! ANd the 80% was just a confirmed example that I know of!!

I am sure there are some mudholes left in Texas...I bet if I put some time into it, I could find some lakes around either Houston or Dallas that are 1/2 of what they were back in 2007-2008.

You surely must be an Aggie!! I have a great pic for ya...shows a pickup with water up to the back window in Lake Austin...and is has the TAMU sticker in the back window! I guess I can't paste the pic...too bad very funny though!!

Whooowee! Me an Aggie, ain't that rich. No sireee. Not that I couldn't be an Aggie, but that thar ain't the best guess. First clue would be me livin' in Austin, if ya fancy jumpin to conclusions so much then there's a better choice than me bein an Aggie. Second, I already done told you I was a yankee! Shoot. But even that ain't all there be to knowin' all there be to be knowin' 'bout it...

Now back to them there properties. 2 of them 2 in CA don't look like places one finds a lake house, but what do I know about CA? Shoot, nuthin I say. Third, well yep, that sure is a lake house area and a purty one to boot! Some of them houses only be listin' for 600k give er take, now that looks interestin'! Woowee, I'm tellin' ya!

[Asmodeus2112]

Goodness gracious oh lordy! I almost forgot the picture! This here picture is near legend round these parts, I'm tellin' ya. Look at that Aggie, he's still lookin' for his keys!

Edited September 21, 2012 by Asmodeus2112

[Michigan boarder]

She said she needed a break.

A little time to think.

But then she moved to Cleveland,

With some guy named Leland,

That she met at the bank.

[Asmodeus2112]

She said she needed a break.

A little time to think.

But then she moved to Cleveland,

With some guy named Leland,

That she met at the bank.

Come back to Texas

It's just not the same

Since you went away

Before you lose your accent

And forget all about

The Lonestar State

There's a seat for you at the rodeo

And i've got every slow dance saved

Besides the Mexican food sucks

North of here anyway.

Edited September 21, 2012 by Asmodeus2112

[longbeard]

So I think our plan is to get a place on the water. Our boat is really nice for its age. A little more maintenance than a new one, but really happy with it. So our family plan is to put down a chunk and buy us a something either on the water or at least closer to the water. Now if any of you guys have a surfgate equipped boat and are in my neck of the woods, I would love to try it out....

[Asmodeus2112]

So I think our plan is to get a place on the water. Our boat is really nice for its age. A little more maintenance than a new one, but really happy with it. So our family plan is to put down a chunk and buy us a something either on the water or at least closer to the water. Now if any of you guys have a surfgate equipped boat and are in my neck of the woods, I would love to try it out....

Sweet, I wish you the best with finding a place on the water, it's the best. I hope I can maneuver our family into the same position before too long.

[teamerickson]

I think defending the honor of Texas by insulting a man's wife is bad form!

-99

[wakesetter8796]

Yeah,

This has gotten quite off topic.....

[longbeard]

I was trying to bring it back around a little. I like some of the earlier discussions going on.

[Murphy8166]

I get so F'n tired of people coming on here and telling people that if you have to do a 15 year note - that you can't afford a boat. You kow who you are and you do it every chance you get.

In 2000 I bought 1997 Sunsetter for 21k and paid it off in 5 years. In 2011 I sold it for arounf 12k and bough a 2011 Malibu VLX. We put almost 20% down and paid TTL out of pocket. My payments are well below 500 per month.

Now I'd be a freaking idiot if I took 15 years to pay off that boat and that is why we typically put about 6 extra payments toward the principal annually. Boating, Wakeboarding and Wakesurfing are lifestyle for us and we have made sacrifices in other areas to do so. We don't take lavish vacations, we drive vehicles for many years after they are paid off etc...

Yeah, I'm going to pay a lot in interest when compared to a traditional 48 or 60 month finance option for the hobby I love, but no where close to where I'd be if I paid the minimum and did it for 15 years. And if someday, I lose my job - I have enough money in my cash reserves to go pretty damm far without an income and without having to fire sale my boat.

[Nitrousbird]

I get so F'n tired of people coming on here and telling people that if you have to do a 15 year note - that you can't afford a boat. You kow who you are and you do it every chance you get.

In 2000 I bought 1997 Sunsetter for 21k and paid it off in 5 years. In 2011 I sold it for arounf 12k and bough a 2011 Malibu VLX. We put almost 20% down and paid TTL out of pocket. My payments are well below 500 per month.

Now I'd be a freaking idiot if I took 15 years to pay off that boat and that is why we typically put about 6 extra payments toward the principal annually. Boating, Wakeboarding and Wakesurfing are lifestyle for us and we have made sacrifices in other areas to do so. We don't take lavish vacations, we drive vehicles for many years after they are paid off etc...

Yeah, I'm going to pay a lot in interest when compared to a traditional 48 or 60 month finance option for the hobby I love, but no where close to where I'd be if I paid the minimum and did it for 15 years. And if someday, I lose my job - I have enough money in my cash reserves to go pretty damm far without an income and without having to fire sale my boat.

What is untrue about saying someone that HAS to do a 15 year loan to afford a boat can't afford it? In your case, you can afford a 10 year loan (as +6 payments/year = 10 year loan). Obviously you are doing 15 as a risk protection. 10 is still long for a boat loan IMO, but not as crazy as 15 years paying on a loan you will be upside down on for the first 12 years of the loan.

Look how many people were doing balloon mortgages, interest only mortgages, etc. in order to finance a home a few years ago. Look how many neighborhoods were devisated because people thought they could afford things they couldn't. How many people out there think they can afford a boat with a 15 year loan only to get it repoed a year or two later?

Of course there are situations where a 15 might make financial sense, just like there are situations where a balloon or interest only mortgage can as well. But if any of those loans are NEEDED in order to be able to have it at all, then you CAN'T afford it. If these loans are being used for smart financial reasons, then there isn't an issue. History has proved that more times than not they are being used improperly.

[malibuparadise]

Simple, if in doubt, all ya gotta do is call Suze Orman, right?

lol....

[Asmodeus2112]

I use a HELOC to finance my boat, that way I can lose both my boat and house! Although unlike using a HELOC to finance a kitchen redo there is a small chance that a boat could be sold prior to repo...

[Murphy8166]

It will be quicker than 10 - we plan on evaluating at the end of each year and putting more towards it.

I'm just pretty conservative with cash outflows

[jkendallmsce]

Whooowee! Me an Aggie, ain't that rich. No sireee. Not that I couldn't be an Aggie, but that thar ain't the best guess. First clue would be me livin' in Austin, if ya fancy jumpin to conclusions so much then there's a better choice than me bein an Aggie. Second, I already done told you I was a yankee! Shoot. But even that ain't all there be to knowin' all there be to be knowin' 'bout it...

Now back to them there properties. 2 of them 2 in CA don't look like places one finds a lake house, but what do I know about CA? Shoot, nuthin I say. Third, well yep, that sure is a lake house area and a purty one to boot! Some of them houses only be listin' for 600k give er take, now that looks interestin'! Woowee, I'm tellin' ya!

Heck, I could tell you weren't an Aggie right from the get go...You can spell and complete a sentence....most aggies can't.....

And if you look at Lake Tulloch, there are at least 3 houses in the immed area that were bank owned/repos, that have sold in the last year...one is a SPanish style house that they were asking over $3M, and it sold late 2010 for 1.2M I think, I would have to get on zillow to take a peek. ANd Lake Tapps South of Seattle, my sister lives there, and I know ov several that were on the lake that sold for well under 1/2.

You are narrowing the seach down to only TX., which I'd only move there after CA implodes from their ever growin deficeit...or once they start building their idiotic bullet train to nowhere!! But hopefully the good folks of CA will come the their senses.....ya like that'll ever happen!!!

Edited September 23, 2012 by jkendallmsce