Exploring the open seas and feeling that cool breeze through your hair is an extraordinary feeling that you have to feel for yourself. The great mix of relaxation, adventure, and the adrenaline rush you get when you’re sailing is worth the cost for numerous people.
So, are you thinking of saving up money for that dream boat you’ve had your eye on? Then it’s time to think about marine financing and how you can come up with the money needed for your boat. Read on to learn more about the easy ways to finance the boat of your dreams.
Flipping Used Boats
Some people like flipping used boats and selling them back once they’ve refurbished and repaired them. This is known as marine or boating arbitrage, where you keep buying used or damaged ones that are cheap, fixing them up nicely to sell later for a much higher price.
This will require a lot of patience, knowledge of the market, and determination. It might be easy but these types of investments will take some time. However, you will get the money you need for your expensive and high-quality dreamboat after earning some money from selling the small, used ones. It’s a smart way to finance your dream boat, but remember that it will take time and effort to do so.
Keep in mind that you will need to spend some money to repair and refurbish it. You will need to research and locate the right retailers that have the parts you need, and you need to spend some money on repainting and possibly replacing some parts. You might find spots that have weak or decayed wood, metal parts that are rusted, and weak/frail sail ropes. So, make sure you are ready to upgrade, replace, and refurbish everything to get a great price when you put it up for sale. You can learn more about the different equipment you will require for all the improvements.
Apply For a Loan
You could apply for a loan to purchase your new boat and live the life you’ve always dreamed of. You just need to figure out and determine your loan amount, decide on the term length and agree on an initial deposit with your lender. The boat financiers and marine professionals of SeaDream believe that you shouldn’t get a loan structure that works great for the bank. So, make sure you find a reliable lender that has the financial flexibility to negotiate excellent terms that you can be comfortable with.
When it comes to the loan agreement and the interest rate, the terms will vary depending on the age and price of the boat. Also, the agreement for buying a new boat will not be the same as the agreement for buying a used one. Some loan providers can make exceptions to how you pay and what your down payment will be.
Some can allow brokerage deals, an existing boat exchange, or even exchanging parts, too. Either way, securing a loan will need some research, but it can help you greatly when you want to buy the boat of your dreams. You just have to make sure that you checked a boat classified site when purchasing one so your loan won’t go to waste.
Make It Your Primary Living Arrangement
Some people can try making their boat their primary living arrangement to be able to afford it. Making it your home sounds unorthodox and maybe a big decision, but it can help you significantly if you apply for a program that can turn your boat into your home.
This program is called the live-aboard moorage program and can save you a lot of money. Getting approved can take a while though, and the people in charge of this program will do some background checks to make sure that you’re eligible for approval. Keep in mind that this method only works if your boat is big enough.
Some regions require it to be 32 feet or more in length to be considered for the live-aboard moorage program. This will be similar to a mortgage plan for a house with monthly payments, but for your boat instead.
Offer Cleaning and Waxing Services To Other Boat Owners
You could start offering cleaning and waxing services to other boat owners to make some money. Not only will you earn some cash for your future investment, but you will also learn more about how you can maintain your one when you finally get it. It will help you get used to cleaning everything and maintaining it regularly.
Also, you will learn the importance of preparing it before a sailing trip. Some owners don’t have enough time to commit to constantly scrub, wax, and polish their boat. So, this is your opportunity to make some money on the side while getting used to the commitments and maintenance steps of owning a boat.
Use Your Home’s Equity
Using your home’s equity can be an option for financing your boat. But it depends if you already have equity in your home or not. This is known as the home-equity line of credit (HELOC), where you pay off your boat in specific monthly payments. Also, it’s a great choice because interest rates will remain low.
Some homeowners might have houses that are worth more than what is owed on them. So, that extra value can be taken advantage of to pay for your boat costly and possibly the expenses. But ask and make sure that you have equity in your home before you start the application process.
Owning a boat can be a great decision if you’re into that type of lifestyle. It would be great if your family shares your enthusiasm for boating and would welcome the change of pace. But keep in mind that it can get quite costly to purchase one. Not to mention that you will have other expenses to deal with once you own it.
However, if you’re willing to commit and work hard on financing and maintaining your boat, you can enjoy every moment sailing the open seas without a care in the world.