Does property investing have to be a house? Could it be a boat?

Discussion in 'Innovative Property Investment Techniques' started by Paterson00, 18th May, 2016.

Join Australia's most dynamic and respected property investment community
  1. Paterson00

    Paterson00 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    218
    Location:
    Perth WA
    Hi all,

    I know firstly that property investing is largely carried out for capital gains so a boat would not give me this advantage as the depreciate like a rock but if I looked at it as a holiday let type business as in people could rent the boat as a holiday home and I could get to use it for maybe a month of the year, could I pick up the same benefits?

    This would simply be using the rent to offset costs but it would mean that mooring fee's, renovations etc could all be claimed as a tax deduction or at least a portion of it.

    This idea came to me from a boating podcast I listen to where one lady in the UK ran a small but succesful business this way. She was saying that replacement linen etc would all be tax deductible if the boat was rented out. In her example the boats she rented out were mostly used as floating apartments in marina's and the boat was not used to travel, simply it stayed in the marina and was used as alternantive accomodation.

    I love boating so would happily rent out a boat if it meant that I could pick up the usual benefits of property ownership.

    Thoughts and mocking welcome, give me your best shots.

    Happy Wednesday people.
     
    Jess Peletier likes this.
  2. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,792
    Location:
    Perth, WA
    Lots of talk about deductions, but where's the part where you actually make the money?
     
    Waldo, Hanison, sanj and 2 others like this.
  3. Ace in the Hole

    Ace in the Hole Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,872
    Location:
    Sydney
    Investing and business are different beasts.
    e.g. I run a business to fund my investments.
    I'd reckon any boat owner would admit that boats are the furthest thing from an investment as you can get.
     
    Hanison, Paterson00 and larrylarry like this.
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,599
    Location:
    Gold Coast (Australia Wide)
    As a geologist............... thats the first time I have heard the work rock and depreciate used in the same sentence;)

    ta
    rolf
     
    Paterson00 and EN710 like this.
  5. Paterson00

    Paterson00 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    218
    Location:
    Perth WA
    In reality i doubt i would but if i have a boat sitting in a pen not being used then i have the expense anyway so why not offset some of that cost by renting it out. If I've got to pay out say $10k in expenses to hold it but get $5k in rent would this not be negative gearing?
     
  6. Paterson00

    Paterson00 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    218
    Location:
    Perth WA
    Ok iron ore then
     
  7. Paterson00

    Paterson00 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    218
    Location:
    Perth WA
    B.O.A.T... Bring Out Another Thousand. .. it's true too
     
    Bayview likes this.
  8. JDP1

    JDP1 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    4,244
    Location:
    Brisbane
    I think buying a cabin on a cruise ship is one of the best investments known to mankind :p:D
     
    cheekykoon likes this.
  9. Agent99

    Agent99 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    205
    Location:
    Adelaide
    There are some nice houseboats for hire, some 12 berth all ensuite for around $7k a week, $3500 weekend however initial purchase cost is quite high. ie new around $650k Plus, second hand a few years old around $450-600k Plus in good condition.
    20m x 8m wide with spa on top deck, have to market strongly and very high traffic on furnishings.
    Not sure I would want to stay just in a marina but would be good for those who dont wish to park one against a tree on the bank of a river :eek:
     
    Paterson00 likes this.
  10. chylld

    chylld Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    1,701
    Location:
    Sydney
    Cars?

    2015 Porsche 911 GT3 RS, cost $400k new

    Current asking price?
    [​IMG]
     
    BCR, MTR and Paterson00 like this.
  11. Paterson00

    Paterson00 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    218
    Location:
    Perth WA
    Some lovely boats in France where you can cruise the french canals. Far cheaper too.

    Boating cruise holidays on the river and canal in France
     
  12. Paterson00

    Paterson00 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    218
    Location:
    Perth WA
    Titanic was a great investment if you were insured.
     
    Agent99 and JDP1 like this.
  13. hobo

    hobo Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    682
    Location:
    FNQ
    .... and not onboard.....
     
    Big Will likes this.
  14. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    6,675
    Location:
    Mt Druuiitt
    There's probably money in stealing boats and rebirthing them.
     
    Agent99 likes this.
  15. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World

    you should meet my husband you would hit it off, his dream is to live on a boat, I look at a boat and I get sea sick
     
  16. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World
    can you buy me this:)
     
    Paterson00 likes this.
  17. Hanison

    Hanison Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    249
    Location:
    Brisbane
    In the words of the late Felix Dennis.

    " If it Floats, Flies or Fornicates, always rent it "
     
    Bayview, Paterson00, Agent99 and 2 others like this.
  18. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    5,813
    Location:
    Paradise, Brisbane
    No. Being experts on Negative Gearing here, we all know that we purchase an investment with the intention of it gaining value.
     
    Bayview and Paterson00 like this.
  19. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    6,675
    Location:
    Mt Druuiitt
    Forget the Porsche or the boat (bankruptcy on a trailer).

    Get the last commodore to roll off the oz production line (est. cost 165K), you'll be in bogan heaven! (with Brockie):

    Holden’s $165,000 Commodore with supercharged Corvette power

    Guarantee to appreciate just like that 7 litre one they made about 10 years ago lol. Who cares about money anyway.

    Imagine driving around Mt Druitt in that thing. You'll need a stick to hit the women off as you cruise along Jersey Rd to Maccas....vroom vroom.
     
    Paterson00 and mini2 like this.
  20. Paterson00

    Paterson00 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    218
    Location:
    Perth WA
    Happy to meet that guy. I'm planning a retirement based around travel. I'd like a large amount of that to be by boat. Tell your husband to look up the French canals as a place live for a while. Sounds like we'd get on.

    There is a way of offsetting the cost of a boat ownership through renting it out as a charter. I've only just discovered this so I've not looked into it just yet too much but it seems that the only way to make any claims is if the boat runs as a profit making entity rather than a loss. No negative gearing here but who cares. Offsetting some costs is great news enough.
     
    MTR likes this.