Pros And Cons Of Living On The Water
People all over the world live on boats – from fishing trawlers, narrow-boats to yachts so
if you’ve ever toyed with the idea of being lulled to sleep by lapping water, greeted good
morning by a cawing gull, and fishing from your bedroom window, a houseboat or floating
home may just be a dream come true.
What’s the Difference?
Though most floating homes are called
houseboats, there is a difference between
the two. A houseboat is capable of leaving
the dock under power. It must have
seaworthy hulls, engines and navigational
equipment. A floating home, on the other
hand, isn’t considered a water vessel, but
a structure built on a floating apparatus.
Advantages of Living on the Water
There are lots of advantages to living on a
houseboat. In some parts of the world a
houseboat isn’t considered real property,
so you won’t be paying property taxes.
In others it may be considered personal
property, and you’ll be levied a small
personal property tax annually however
this is comparatively cheaper than any
city residence.
You also won’t need a gardener or a snow
shovel when you live on the water. Plus,
you are guaranteed a water view and
nobody can build anything that will block
that view.
Disadvantages of Houseboat Life
You may escape the dreaded annual
property tax bill by living on a houseboat,
but you’ll pay other associated fees, and
some o f them, depending on where you
live, can be significant.
Mooring fees – what you’ll pay for the
privilege to dock your floating home –
come in two flavours. The first is the
basic monthly rental fee and the second
is the homeowner’s association fee. The
mooring fee is payment for the actual slip
and generally includes utility costs, such
as garbage collection, electricity and
water. Depending on where you live, the
“landlord” may pay taxes and insurance
for the moorage and to maintain the
common areas.
If the community is managed by a
homeowners association, you will most
likely pay more at first and then less of a
mooring fee on a monthly basis. This is
because you’ll generally purchase the slip
and won’t be paying rent for it. Though
you’ll pay more in the beginning for this
setup, if your state taxes your floating
home as real property, your annual tax
bill will be lower because you’ll only pay
taxes on the actual home. The slip isn’t
assessed as real property.
Of course, all of this depends on where
you moor your houseboat. Even within
one city, each facility may have its own set
of fees.
Finally, homeowners insurance is more
expensive for a houseboat than a landbased home.
The Purchase Process
Financing a houseboat may be
challenging, banks aren’t very keen to
offer finance for what they deem a luxury.
So be prepared to pay cash