5 Financial Benefits of Living in a Houseboat Instead of a Traditional Home
Written by
Dawn Allcot
Edited by
Ashley Barnett
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With high mortgage interest rates and home prices, many people are seeking alternate living arrangements.
For some, this means “house-hacking,” or renting out a part of your home while you live in another part, building or buying “tiny houses,” or even living on a houseboat. Just like regular houses, houseboats vary widely in price. According to Boats.com, the cheapest houseboat could cost under $8,000, but you could also pay millions. The website quotes the average price of a four-bed, two-bath houseboat at roughly $150,000, which is less than half of the median price of a four-bedroom home.
According to Redfin data, the median home price in the U.S. as of September 2023 was $412,000, although this figure varies widely by state and even neighborhood.
However, there are other advantages to living in a houseboat, besides costs.
May Cost Less Than Renting in a Major City
Statistics show a houseboat generally costs less than a house. But it may also be cheaper than renting an apartment. Colette Gabriel and Kevin Wright own a two-bedroom, 450-square-foot houseboat docked in Chicago. They told TheEscapeHome.com that their boat costs less than what it would cost to rent an apartment in the waterfront neighborhood where their boat is docked.
You Buy Less Stuff
If you’re looking to save money living on a houseboat, chances are you don’t own a giant yacht. And that means you’ll need to kick any hoarding habits to live comfortably on the water. “It forces you not to buy a bunch of stuff,” Gabriel and Wright told TheEscapeHome.com.
You Might Pay Less for Utilities
Likewise, a smaller home on the water means lower living costs. Kate Fincham lives on a 625-square-foot houseboat in Toronto. She told CNBC.com that her living expenses (not counting food) total just $1,450. That includes a $362 loan payment on the $250,000 houseboat. Her electricity is just $76 per month, and her insurance is $223 per month. Home insurance can cost as much as $3,000 in some states in the U.S. so boat insurance may be cheaper.
You May Not Have to Pay Property Taxes
Since a boat is not attached to land, you won’t have to pay property taxes on your vessel. But, depending on where you dock your houseboat, you may need to pay property taxes for the dock, slip, or marina. “If you own a slip, you would need to pay property taxes on the slip as it is real property,” Brandon Eshaghoff, founder and CEO of The American Houseboat, told Realtor.com.
But if you rent the slip from the marina, the marina is responsible for the taxes and you would just pay rent and other applicable fees. In either case, taxes or fees will cost less than taxes on acres of property.
No Landscaping Costs
As with owning a house, you’ll want to set aside money for maintenance and repairs. But there’s one maintenance expense you don’t have to worry about on your houseboat: landscaping.
Life on the water may not be for everyone, but it can be a way to afford a desirable location without the high cost of owning a home on land today.
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