BluWaterNC

Hey guys, let me start first by saying that I dont have much finance experince. I am 24 years old and want to start planning for my future so that in time I can afford the boats that I now dream of.

I think I have read on here that many people use their home equity to purchase their boats. Seeing as I am 24 and do not yet own a house this infinate banking stuff I have been readinga bout sounds interesting to me. I was just wondering if anyone has any experience with this?

I have ready over the info and for the most part it makes sense to me and sounds good on paper but how well does this strategy perform for you in real life? Thanks for any info.

Rob

** Also would you reccomend traditional investing over this option?

Von Bongo

Well, It can be a tax benifit if your boat doesn't qualify as a second home. If you have a lot of equity in your home and no money for a down payment then you can use your equity for 100% of the purchase price.

In todays market you will have a harder time getting a home equity loan than you did a few years ago. Not many 100% loans anymore and no 125% loans. Also many home equity lines have interest only as a payment so there is some flexibility in repayment of principal.

Personally if the boat qualifies as a second home there is no benifit using home equity.