southace said..
I'm about to sell a yacht I spent $120 k for a bargain price of 50 k ........is that close to your 10% rule CISCO? Haha
No it is not. I have recently got rid of a yacht that I paid $35,000 for and spent another $20,000 storing it for 8 years, for a return of $300.
That hurt, you can be assured. The $35,000 was spent a long time ago but the ongoing storage fee was every month for what had become an almost irrepairable and worthless yacht. It was worth less than the sum of it's parts.
What you buy or sell a yacht for is not what the 10% rule is about. I will repeat the rule so that hopefully you will understand it.
The rule is:-
"Never let your yachts/boats/TOYs represent more than 10% of your nett worth."
As I understand it, for YOU, your yacht is not a TOY. It is your home and what you base your life around?? So for YOU a TOY would be another yacht that you go racing on or a sports car or an aircraft or a land yacht or a competition go kart.
I base my life around my family and that requires REAL ESTATE. The more real estate one owns means the more expensive yacht he can afford to own as a TOY.
Hard to make it any plainer than that. Do you now understand the 10% rule???
