Brought to you by the every dollar app start budgeting for free today. Today's question comes from Joseph in Ohio buckle update Here we go. I'm looking at financing a boat to use like a house I know and understand your normal rules for buying a house ideally 20% or more down less than 25% of take-on-pay 15-year fix And I know and understand the normal thoughts on buying a boat as a toy Depreciating asset cash only value no more than 50% of yearly income combined with all other depreciating assets I really know your stuff Dave What I'm wondering is how out of line or not I would be if I combined those two into a houseboat if I adjusted the formulas and compensated for the Screpancies properly the compensating factors. I'm thinking about are buying something used with most of the depreciation already absorbed and financing with a higher down payment over a much shorter timeline The boat will have some depreciation as opposed to a house But if I compensate with extra savings my thoughts are that this could work out similarly as I know you would ask I'm currently 100% debt-free and have a fully funded emergency fund Okay, a lot to unpack there emotionally and financially But Joseph is saying should I buy a house boat and can I do it with debt because I'm treating it like I'm getting a mortgage on home Joseph a boat is a trailer that floats He goes down in value you could buy a fully depreciated mobile home and make the same argument But it would still be a dumb 10-year plan.
I love boats son in Ohio. That'll be cold in the winter Really freaking cold living on the lake. Oh, I can't imagine. I like the lake, too But I'm not living on the lake in the winter not in a boat.
Oh God, you freeze your butt off Um, and it's going down in value and here's the thing 10 years from today Where do you end up if you'll if you'll stretch these things out past Friday in your analysis the answer start to become pretty apparent When you buy mobile home, you stretch it out 10 years. You take a $70,000 double wide. What's it worth in 10 years? No, 20.
What's it worth 10 years after that zip, right? And so you buy car what's it worth in 10 years going down in value you buy boat? What's it where we buy an RV you could do the same thing? I'm happy by the same question about an RV.
We always wanted to retire and travel the world in an RV That's great pay cash for the freakin RV It's a toy and don't call it your house and justify a huge payment on it because you know what a two-year-old RV is Appreciated heavily hello, so I mean they drop they go down and value so fast That's what when a bago is actually a Native American Indian language for really appreciating It's actually what it means. I'm gonna look that one up. I got a fact check you on that one Means down in value. That's what it means In the ancient in the ancient tribes.
I didn't know you were well versed in the tribal languages Dave You see never see some of the things I get myself into trying to figure out how to say that in a way that I didn't get sued But anyway, uh good luck with that So no, it should be similar to an online saying I want to live in an RV I'm gonna take out a more listen I don't care if you get your boat only but pay cash for it and don't try to say it's the same thing as a house and Please don't try to say the same thing as a house in a car combined You really got boat fever bad. He went to a party on a house boat last week and I figured out With his calculator how this is a good idea. No, it's not honey It's going down in value and you're gonna end up in a mess and then you're gonna have to buy a house later on down the road And you'll be broke well, and you'll have a you know rusty. Oh, I mean, you know, old houseboat Thank you Almost bought one time cuz I really had it bad for us I could see you guys just having one, you know the lake to party on yeah, but I've got a house now But that but I mean back then before we had that we were gonna get a houseboat and I looked at this old nasty I mean, you can't say mildew like old house boat I mean, it's old houseboat mildew isn't I imagine the major special level of science cuz you got a boat and that takes a maintenance No, no, no, no Joseph.
No, I wouldn't do that. You don't find any millionaires to go You know, I mean my first million is a lived on boat didn't come up never comes up