Good $ after bad? What is the market today?

[BobM]

Dropped my mast to investigate a dimple in the deck. As a part of it I had a surveyor meter the deck. Overall he said she (S29.2A) is in very food condition for her age. Some delamination port of the mast but not wet in his opinion. Some high local readings near the chain plates, but similar to 10 years ago when I bought her. He advised sticking to structural repairs and said that the sailboat market was weak and unlikely to recover because Millenials don't sail much and thise that do are loaded and buy new or nearly new boats.

I bought my boat for $20k. YW seems to show that prices have dropped to $15K. He seemed to feel like sub $10k was more likely, which stinks for sure. But it has me debating if it is worth investing $1.5-2K in new rigging or skipping it (all but the backstay is original) as good money after bad. I am not sure how longer I will hang onto her. I'd hate to spend thousands and then end up donating her. Thoughts?

 

[Don S/V ILLusion]

Looking at a boat as an investment is always disconcerting. It's a toy. How much is the entertainment value worth?

 

[jssailem]

Don is so right...Boats are an investment in fun not finance. You can on extremely rare occasions get all your money in a boat back and have a year of fun boating.

But, you do one upgrade and think it will improve your boat value... think again.

Bob... Do you like the boat? Does it give you pleasure to be out on it? Can you continue to get that enjoyment if you put $2K into the rigging? If yes then consider it the service charge for having fun.

If not sell the boat and be like some who consider there are only two good days in the life of a boat owner.

 

[quadrille38]

If you enjoy it, it gives you renewal of spirit and you want to continue doing it, then it's worth it.

The only part of a boat that's an investment with a return is the part that gives you positive mental health and family memories.

 

[PAC3142]

Hmmm....
So, for $2k you keep sailing safely.

Your other option, assuming you want to keep sailing, is to donate/sell the boat (which takes time and $$) and spend a rediculous amount of time and $1k for a good survey to find another boat for (I'm assuming again) $20k-ish. I think you are ahead fixing and sailing the boat you know and understand, and selling later when you are ready, boasting about the repairs which show that you are a good owner.

I don't understand milenials (even though it would help in my job, and I could go on a rant about them, but I won't, here, now) but I do know that 30 feet is a good size for a retired couple downsizing, and S2s were built fairly well. So you may want to try listing the boat before donating.

 

[Jackdaw]

For the sure bottom is going to drop out of the 30-40 year old sailboat market, as price compression from 25-20 year old 'new' boats comes down. All boats built in the 'golden years' (1970-1985) will suffer from this. Newer boats less so as builders folded and survive scaled back production.

But it's a downward spiral for everyone.

 

[Ted]

I would think that the used boat market within reasonable proximity to Corpus Christy Texas may boom. Events like that can change a market, both used and new unless everyone decides that this is a good opportunity to permanently exit the sport of sailing.

BobM, if you plan on sailing your present boat for a few more years, make the repairs and enjoy it knowing it is safe. It's highly unlikely you'll recoup even a small percentage of what you put into it, but it should make it easier to sell in the future.

 

[Kings Gambit]

If you're going to sail the boat then you should keep it up; if you're going to sell it or give it away, nothing much will be saved in relative value by letting it go un-maintained, etc. So, try to unload one that needs work, or maintain it and enjoy the sailing?

 

[BobM]

I may not want to or be able to keep it. Assuming I am getting rid of the boat is it pretty unlikely I will see a return on the $2k? Obviously if I donate it I will not. There seems to be a mix of sentiments about whether any degree of wetness found during a survey is a show stopper. I know I sort of had to come to terms with the fact that perhaps any 40 year old boat was going to have some survey issues. This isn't about "the boat as an investment". More like...do I bother replacing rigging just because it is old or not if I think I could just be donating it.

 

[Don S/V ILLusion]

More like...do I bother replacing rigging just because it is old or not if I think I could just be donating it.

Clarity is your friend.
It seems you need to decide step 1 before step 2.

 

[jssailem]

Bob, It appears the purpose of the post has morphed from value of the repair in overall costs - to examine the financial issues of releasing the boat to a new owner.

Looking at the boat values/market/selling the disappointing facts are boats decline. Sometimes more than we want/hope/fear. How to deal with this is a personal challenge. There are some tax savings if you donate the boat to a charity. This assumes you are paying a lot of taxes. The donate method has some other advantages in that you get release from the day to day costs of waiting till a buyer materializes.

You can use brokers to help sell which may help to speed up the transactions with accociated costs in the sale.

You can try to sell it yourself. This may mean you get more cash out of the sale but it also means you are envolved in the releasing a boat to which you have a personal attraction.

There are no easy answers. It is a process that like removing a bandaid may best be accomplished by just ripping it off. The fears/challenges are often greater than the reality.

 

[Ned Ludd]

A boat is a lifestyle, an expensive one at that. My sister races cars for a hobby @ $1000 bucks a weekend, my brother travels at $10K a year for vacations, I spend my money on my boat. The return is the memories we all have.

 

[jssailem]

Bob, Here is a link to an owners love of his boat. He will never recover the boat bucks and time in dollars, but his boat is his way of spending his time. It is it's own reward.
https://forums.sailboatowners.com/i...nter-40-damage-from-hurricane-matthew.182553/

 

[Bob J.]

Bob,
When I bought my Sabre 28 the asking price was 13 or 14K. Based upon what I saw I knew the boat wasn't worth that & told the broker so. The boat had been on the market for a year, everyone walked away. It was suggested I make an offer because if the boat didn't sell the owner would donate it. I looked into what they would get for a tax donation, it was around $3,500.00. I had the hull & deck surveyed to be sure it was sound, made an offer & the rest was history.

My point is unless you're making alot of money & need the tax right off, going down the donation route will cost you. I understand we all get to the point we just want to get rid of our boats & if that's where you're at, you know what to do. BUT if you're not at that place, don't do it. Sometimes it's nice just to have a place to hang out & let the water wash your troubles away....

 

[Gunni]

What Misfits said. Bob, you in or out?

 

[sailnoproblem]

Boats are for enjoyment, they are adult toys. Never ever consider a boat a investment. I bought my old girl for a storage fee. Spent 2 years, bringing her back to life. The actual amount I have spent on her is unknown. I considered it a labor of love.
I agree with Misfits and Gunni, you in or out?

 

[Randy Rohrbeck]

If you do decide to donate and plan on getting a tax deduction it be aware that the IRS has tightened up the rules several years ago.
If you donate to an organization that doesn't put the boat into what the IRS calls productive use but sells the boat any time in the next 3 years (I believe that time is correct), you will only be able to claim the amount the organization received when they sold it. If they are selling at auction this could be substantially less than appraised value.
Even if you do donate it to an organization like the sea scouts which will use it for their programs if the appraised value is over $5,000 there are several additional forms the IRS wants with your return. Some of these need to be signed by the charity so it's best to get them completed at the time of donation not when you're ready to file your tax return.

 

[Chris Patterson]

I recommissioned a boat one time some years ago and kept up every receipt, every hardware store trip, everything! At the end of the game I added up all those receipts, and to say the very least it was very, very depressing. I sold the boat for much less than that amount of money, and I have never kept a receipt since then unless it was just a warranty issue..