Zero Value

I suppose that for many people, living on a boat will not be the first alternative form of housing that would come to mind. After all, we know quite well that boats could be very expensive. In fact, only those who are quite well off can afford a boat these days. So why are we suggesting boats as a form of alternative housing?

Have you ever heard of house boats? These are flat bottomed boats which are designed to hold cottage-like structures. If you like the water and you want to save on real-estate costs, then you might want to consider purchasing a house boat and calling one your home. What do you need to know about boat houses? MSN provides more information:

A 30-year-old, 40-foot houseboat may sell for as little as $8,000 to $10,000, but the maintenance to make or keep the vessel seaworthy can be daunting and costly. In any case, Morton suggests avoiding boats that are more than 25 years old because they are hard to finance and insure.

Boat loans are similar to RV loans — at least a point higher than mortgage loans for homes, nearly always requiring 20% down and limited to terms of 10 or 15 years. If you buy a $50,000 houseboat and finance $40,000 of the price over 15 years, expect to pay about $370 per month, assuming a 7.5% interest rate. As long as the boat has a galley and a head, the interest is tax-deductible, just as with a mortgage.

While there are certainly plenty of houseboats in inlets and bays near the ocean, inland lakes are prime houseboat territory. Renting a slip in an agreeable area that permits people to live aboard year-round costs anywhere from $300 a month for a no-frills slip on a lake to as much as $1,500 a month in a marina with ocean access. Unmetered electricity, including an air-conditioner, can run as much as $50 per month. And if more than two people live aboard, generally there will be a $25 or $30 charge for each.

Water is usually included, but sewage pump-out will be extra. The Environmental Protection Agency estimates the annual cost of weekly pump-outs for a boat on which people live aboard to be $550.
Other costs include insurance and, if the boat is older than 10 years, an initial survey of its condition. Prices for the survey and the insurance are based on the value and size of the boat, but a ballpark estimate of insurance on a 30-year-old houseboat worth $50,000, docked on an inland lake is $600 to $800 per year, plus about $750 for the survey.

What do you think? Cheaper than maintaining a conventional house and lot?

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