Why buying a boat is a bad idea

One of the arising questions today concerning boats is whether the purchase of boats is a good or bad idea. It is important to note that buying a boat can be a source of great investment depending on the purpose of buying. There are many boats that are used for business purposes today and are earning some income for the owners however that doesn’t mean it’s not a bad idea either. There is a need to consider the good and bad side of any investment one intends to make with his or her financial resources and the question of buying a boat is one of them.

Boats are designed differently and also the interior and the exterior as well depending on the cost of purchase or specification provided for the boat builders. Buying a boat cannot and will never equate with buying or investing a real estate due to different in value. The ownership of a boat will bring about pleasure and make adventure more enjoyable however those who doesn’t have one can also enjoy these benefits if they wish to have it. Most of the wealthiest and richest men in the world today have one or two boats costing millions of dollars built and designed according to their specification. The following points explain the reasons why buying a boat is a bad idea and not really consider as a good source of investment.

1. Value

The value of having and buying a oat remain static overtime with little or no increase in its leading to non-profitability in such investment unless it’s intended for business purpose. Despite the business purpose if having one, the cost of resale after purchase is always less than the initial cost of purchase due to no increase in value. This is one of the reasons why buying a boat is considered a bad idea as investments like real estates or stocks appreciate in value and much profit is reaped from the resale of such assets.

2. Cost of buying

The cost of buying a boat is very expensive. While this is as a result of scarcity in demand, it is also due to the specification made for the boat builders. It is a material and object that must be completed carefully with no error. Also attached to the cost of purchasing a boat is the ticket price, taxes, and the transportation cost of moving such boat to the desired space since the boats that have wheels and can’t be driven on the road. Most of these prices and costs might not be revealed at the point of purchase but after the deal has been secured with initial payment.

 3. Cost of maintenance

The cost of keeping the boat in a working order is very high and the need for proper service and maintenance. Doing this will require the services of boats professional and not a road side mechanic with zero knowledge on how the boat are made to function. The cost of servicing and maintaining your boat will cost you thousands of dollars and not hundreds. Another reason to make buying a boat a bad idea.

4. Insurance cost

The cost of insuring anything on water is very expensive due to the various forms of water accidents which may not be predictable at times. It’s important to note that pirate insurance is very expensive therefore making the idea of buying a boat a bad one.