Tips for Investing in a Houseboat

[Tracy Sheldon]

A houseboat is a unique means of transportation. It is both home and recreational vehicle. If you’re considering buying a houseboat, there are a couple of things you need to keep in mind--it is not only a pleasure craft, but a dwelling, as well. Following are a few tips for investing in a houseboat.

Do Your Research

Before you head on down to the dealer, there are a few things you need to do in order to be fully prepared to be a houseboat owner. You will need to know exactly where you’re going to dock your new home/boat, because not every marina is houseboat-friendly. If you have a favorite lake in mind, you will want to make sure that dockage is available before you invest in a houseboat. Some marinas aren’t equipped for long stays. Others require you to carry more than the usual amount of boat insurance in case of fire or some other sort of accident. A few marinas may make you move your houseboat if extremely bad weather approaches. You will need to know whether or not the houseboat you’re looking at is too large for the harbor or marina. Knowing ahead of time what the rules and limits are will allow you to make the right choices and avoid problems later on.

Plan Ahead

As part of your research, you’ll want to know what services are available--not only at your chosen marina, but at other points where you may be traveling. It won’t be any fun if you leave for an extended trip only to find out you can’t buy fuel or replenish your food supply conveniently. You’ll also want to make sure the water level in the lake or river will be deep enough to keep your boat from grounding. It is also important to know whether or not there’ll be any overhead obstructions, such as bridges, that will prevent you from enjoying all the lake or river has to offer. As with any purchase of this type, planning ahead only makes sense. Because this will not only be your means of transportation, but your home as well, you’ll want to be aware ahead of time what the limitations are regarding travel and living conditions.

Off-Season Storage

Another consideration will be where and how you’re going to store your boat during the off season, if there is one. In southern climes this may not be an issue, but in the northern states there is a definite limit to the boating season, including the time you’ll be able to actually live on the boat. Some marinas may close down earlier than you’d like, so you’ll have to make preparations for storing the boat before that time comes.

Arrange Financing

Once all your plans are made, and you’re sure of when, where, and for how long you’re going to be living on your new houseboat, it’s time to find the money to make the dream a reality. You will need to arrange financing through a bank or credit union. If you already do business with a bank, they should be your first stop when seeking a loan. Since you already have an established relationship with them, hopefully a good one, they will be the most likely candidate to lend you the money for a new houseboat.

Keep Your Credit Score Up

It is extremely important to make sure your credit score is as high as possible so you’ll be able to get a good interest rate. If your score could stand to be improved, it may be a good idea to put off applying for a loan until you raise it a bit. A good way to do that is to make sure you pay all your bills on time, and maintain a small balance on your credit cards.