Cost/Benefit Analysis - Do you really need it?: RV

I have to admit, of all the toys and extras we've talked about, this is probably the one that I could see happening but let's take a closer look.

An RV or trailer towed behind your car can be very appealing. No more high hotel costs, go wherever you want, no worries about reservations...such a feeling of freedom and affordability for a vacation.

Sure, it's gonna be a tight fit (unless you get one of those multi-hundred thousand dollar ultimate behemoths) but you can expand your living area to the space outside your door. Have a campfire, roast some marshmallows, make some smores.

Now let's get some reality into this picture, starting with the no more high hotel costs. That may be true but you're still going to pay to park in a campground or RV park. Sure, this can be cheap and is almost always cheaper than a hotel, but you can still pay more than you'd expect.

Googling around we get a variety of prices per night...$51 at Mt. Shasta, $83 in Yellowstone, $150+ Florida Keys, even just parking overnight in the parking lot in Avila Beach in California will set you back about $90. Yes, you can go boondocking (parking overnight for free) but you better make sure it's a legal spot and no one will bother you about it. And, yes, cheaper campsites are not too hard to find but the more popular the destination, the higher it generally will be.

Then there's the ownership costs. We see ads on Sacramento TV all the time for used RV's for sale...not even really big ones...regularly going for over 100 grand, on sale!

Checking the used classifieds, good condition used travel trailers in the 20 foot range seem to go from $15-25k, not to mention you need a good strong vehicle to tow it.

If you're traveling in a wheelchair, you will have an even harder time finding one that will accomodate you.

Next, you'll need to register, insure, and maintain your RV or trailer. Add that all up and you're talking thousands per year before you even set out on your trip.

How do you get a camping experience instead? Well you can rent a cabin for anywhere from $100-$400 per night in many nice, remote areas. Sometimes, you can find a basic cabin for even less in some national and state parks where you can still have that rustic camping experience.

Yes, towing that trailer behind our van and setting off to remote destinations on our own terms sounds very inticing...but also very expensive. Whenever I get the temptation, I run the numbers and think there are better more affordable alternatives.

Still, it might be for you but make sure you run those numbers to see if you can really afford it first.

Darryl Musick
Copyright 2022 - All Rights Reserved

Cost/Benefit Analysis - Do you really need it?: Boat

We're thinking about the toys and accessories that people buy to enhance their vacation lives and asking the question "is it worth it?" To answer that, we're doing an analysis to determine if you'd be happier and if the extra money spent would make it worthwile.

This week, it's a boat. I admit, in my younger days, this was something I really wanted. Skimming over the water, a warm day on the river, dropping a line, jumping in the cool water...then I did the math.

So let's take a look. First of all, for us anyway, we'd need a boat we could take a wheelchair on. This would probably mean a pontoon boat which seems the easiest for wheelchair accomodation.

Viewing several listings, a decent used 20 foot pontoon boat will set you back around $10,000...at least.

Operating it, you'll need to fuel it, maintain it, tow it (another $3-4,000 for a trailer) or rent marina space, license it, and probably insure it.

Let's add it up...

Purchase price - $10,000
Trailer - $3,500
Fuel - Typically $25 per day , $250 for ten days a year
Maintenance - $750/year
License/registration - $50/year
Insurance - $200/year
Total $14,750

This does not include the gas price for your car to tow it.

What about renting? A quick glance at local (Northern California) boat rental opportunities show that the average cost to rent a similar boat would be about $400 for 4 hours, $650 for a day...plus gas.

So, is it worth it to own a boat? Depends on how much you'd use it and if you can afford the cost. Otherwise, especially if you rarely go out on the water, you may want to just rent one when the urge for boating hits.

Darryl Musick
Copyright 2022 - All Rights Reserved 

Cost/Benefit Analysis - Do you really need it?:Vacation Home

We're thinking about the toys and accessories that people buy to enhance their vacation lives and asking the question "is it worth it?" To answer that, we're doing an analysis to determine if you'd be happier and if the extra money spent would make it worthwile.

 This time, we're focusing on that vacation home...the cabin in the woods, the beachfront condo, the place on the river...your second home away from home.

To be clear, we're talking about another house besides the one you're living in now. That means a second set of bills, a mortgage (probably), and maintenance.

I'll use a cabin in the woods as our example. Let's pick a cheap place other than our state of California for our hypothetical cabin. If you look hard, you can find a basic cabin for under $300 thousand in, say, Idaho or Montana like this 1 bedroom, 1 bathroom on 5 acres near the border of both states in Benewah County.

It's a vacation home so we don't need a palace, right?

So what to we need to pay for...

Mortgage (principal and interest with 10% down) at 3% - $1180 per month ($14,160 per year)
Property Tax - $1850 per year (.630% Idaho State tax)
Insurance - $2500 (more for a high fire risk area)
Maintenance - $1500 per year
Total $20,010

So, right off the bat, you're spending over $20 thousand dollars a year on this low-priced vacation home...Over $1500 per month before you even buy a tank of gas to start driving to it.

Let's not forget, you have to furnish it, pay utilities, and...especially if you have special needs...may have to adapt it, like getting the bathroom redone for a roll-in shower (at least $10k) or install a ramp.

You should also keep in mind that this will be your prime vacation destination for years to come...since you spent all that money, other destinations will probably take a back seat. 

Sure, you could offset some of that money if you're able to rent it out when you're not using it but you also need to think about that expense. Do you need to hire a local agent to manage it? Spend money for damages your guests cause? Local permits needed to run a business?

On the plus sign, real estate can go up in price making it a good investment. That's not a guarantee, but it can easily happen.

Now, think of it another way. To rent a cabin will probably cost you $200 a night, maybe $1,000 per week (like this riverfront place nearby). If you go 4 weeks a year, it'll cost you $4,000...maybe up to $6,000 if you get a nicer cabin...compared to over $20,000 a year being an owner.

There's the cost, is there a benefit for you to own or is it better to just rent when you want to? The decision is yours.

Darryl Musick
Copyrigh 2022 - All Rights Reserved