The philosophy/economics of owning a barge...
 
In these troubled times, I find myself pondering the meaning of money. It seems that so many aspects of our lives boil down to money... and where there’s money, there’s usually a boat lurking nearby. And that boat is usually consuming the money. So, contrary to the more ‘light-hearted’ manner adopted in the rest of this website, I thought I would take a harder look at our original motivations behind owning a barge and the financial realities that have occurred as a result of that decision.
 
I’m often asked by people if a barge is a good alternative to a house, but the real meaning of that question (at least until recently) was ‘is it as good an investment?’. Over the past decade, the frenzy to get on or up the housing ladder has seemingly created an obsession with ‘investment’... the need for a place to live has been almost secondary to the need to make the right investment. Decisions have been based on risk and reward, a fear of missing out, or a ‘natural’ (perhaps ‘unhealthy’) desire to generate wealth.
 
I begun to puzzle over the fact that when I started to explain the ‘real’ economics of owning a barge, and the fact that it is NOT going to generate a return like a house, people would lose interest very quickly. If there wasn’t an economic benefit, then they were not interested. Personally, I don’t really have a problem with this, but it did somewhat surprise me that people seemed so focussed on the ‘money’ side of their decisions. The ‘living’ side seemed almost secondary. Do we live to make money, or make money to live?  My feeling is that most barge people I’ve met make money to live, and our embracing life ‘full-on’. They are certainly not doing it to make money.
 
But anyway, it would be wrong to suggest that we did not consider the impact of the money we were spending when we bought Fenrir... in fact, we agonised over it. We did discuss whether her value would decrease or increase, and whether our money would be ‘safe’. But, from the moment the idea was born and throughout the whole purchase, we were not looking to create a block-busting financial investment. Indeed, I would never advise anyone to buy any kind of boat if their interest is primarily financial. As has often been said to us... a boat is a hole in the sea you pour your money into.
 
While the sums of money involved made our eyes water, I suppose we ended up investing a sum of money that we could ultimately recover from had it all gone horribly wrong. I do gulp somewhat when I see people pouring their life’s savings into a new life ‘afloat’. But there is no doubt we share something with those people... what we were buying was an adventure, a way of life... something to tell the grand-children. It was certainly NOT the most sensible thing to do, nor was it financially the BEST use of the money.  But, I do not consider that it was money wasted.
 
Buying in Holland reduced the upfront investment, but still, Fenrir cost a fair amount to buy and her being in Holland certainly added a few costs. But that was just the beginning. From the moment we put in an offer, and commenced on our journey... a steady trickle of costs kicked in:
 
    Purchase Costs & Legal Fees: £2,000
    Survey Related Costs: £750
    Our time in Holland / Repairs / Preparing for the crossing: £6,000
    Equipment for the crossing: £1,000
    North Sea Crossing: £1,250
    Temporary Mooring Fees (while we found a mooring): £3,000 (over two years)
    Dry-docking, painting and general exterior refurbishment: £5,500
    Refitting Wheelhouse & general interior refurbishment: £2,500
    Misc. Costs: £3,000
 
That’s an additional cost of over £23k on top of the purchase!
 
What I have learnt however, is that the cost of buying a barge is just the beginning. The true ‘economics’ of a barge are ongoing. Our annual costs for Fenrir are as follows:
 
Permanent Mooring: £6,000 (£500 per month)
Environment Agency Boat License: £950
Heating Diesel: £600
Electricity: £400
Insurance: £500
Maintenance: £500*
 
*Every four years, you should factor in having your barge surveyed, and this probably coincides with a dry dock and repaint.
 
The other factor to consider is the TIMING of these costs. From the numbers above, it is clear we spent an additional £10k in the five months following our purchase. So, there is a substantial outlay of cash to buy the barge, and then you must find more money to cover the purchase costs and the inevitable work that ensues. From that point forward, the yearly living costs, for reasons best known to the authorities, all seem to fall in January. This year, we faced the boat license, boat insurance, our annual mooring fees, as well as it being tax payment time for the HMRC. On the back of Christmas, and with our cars needing MOTs... January was an expensive month!
 
The odd unexpected cost has cropped up along the way, but with the barge now the way we want it, we’ve found that our annual costs have become quite predictable and reasonable. In fact, our cost of living is somewhat below what most of our peers seem to be struggling with. Of course, our mooring fees are not an investment for us, just a cost. But when you return to the barge, after a hard days work, with the sun setting over the water, geese and swans cruising overhead, with fish, herons, coots and ducks all going about their business... it all seems worth it. We are investing in ourselves, and in a life-style. I feel it has been money well spent.
 
31st March 2009