Go Back   iRV2 Forums > iRV2.com COMMUNITY FORUMS > iRV2.com General Discussion
Click Here to Login
Join iRV2 Today

Mission Statement: Supporting thoughtful exchange of knowledge, values and experience among RV enthusiasts.
Reply
  This discussion is proudly sponsored by:
Please support our sponsors and let them know you heard about their products on iRV2
 
Thread Tools Search this Thread Display Modes
 
Old 09-03-2015, 08:43 AM   #1
Senior Member
 
reubenray's Avatar
 
Newmar Owners Club
Join Date: Feb 2012
Location: Lake Osprey RV Resort, Elberta, AL
Posts: 2,735
Financing New Home or New Motorhome??

When our house sells we are planning on getting a new coachhouse built plus buying a new motorhome with part of this money. We will finance one of them. They will be about the same cost. I was thinking it would be better to pay cash for the motorhome and get a loan for building the coachhouse.

But I would like to get as many opinions as possible with reasons of doing one or the other.

Any and all opinions are welcome and appreciated!!
__________________

__________________
Raymond, Dee Dee and Sophie (Yorkie)
2013 Tiffin Allegro (Sold) - 2017 Ventana LE 4037 -
2016 Chevrolet Equinox - V6 - AWD
reubenray is offline   Reply With Quote
Join the #1 RV Forum Today - It's Totally Free!

iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? Do you need advice on what products to buy? Or maybe you can give others some advice? No matter where you fit in you'll find that iRV2 is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more!

Old 09-03-2015, 10:56 AM   #2
Senior Member


 
Monaco Owners Club
Join Date: May 2014
Location: Satsop WA
Posts: 1,206
Me thinks you have the right idea already!
__________________

__________________
2007 Alpine Limited SE
TMan59 is offline   Reply With Quote
Old 09-03-2015, 11:02 AM   #3
Senior Member
 
Melmoses's Avatar
 
Tiffin Owners Club
Join Date: Aug 2010
Location: Montgomery, AL
Posts: 1,196
Agree!
__________________
Mel (Melanie) and Harry
2009 Tiffin Phaeton 40QTH
2014 Jeep Wrangler Sport
Melmoses is offline   Reply With Quote
Old 09-03-2015, 12:53 PM   #4
Senior Member
 
Patti Brown's Avatar
 
Newmar Owners Club
Coastal Campers
Carolina Campers
Join Date: May 2015
Posts: 506
Quote:
Originally Posted by TMan59 View Post
Me thinks you have the right idea already!
X2. IMO the only things that should be financed are appreciating assets, not depreciating ones. (Yes, I realize some real property goes the wrong direction, but I am speaking generally.)
__________________
2014 Newmar Bay Star 3308
Patti Brown is offline   Reply With Quote
Old 09-03-2015, 01:20 PM   #5
Community Moderator
 
JMonroe's Avatar


 
Newmar Owners Club
Spartan Chassis
Join Date: Oct 2009
Location: Deer Creek RV and Golf Resort, Davenport FL
Posts: 6,853
If those were my choices, I think its a no brainer.

It will be easier to finance the building, likely at a bit lower rate, and it's easier to transfer property with a lean against it (differs by state on a vehicle as to just how much of a pain it might be).
__________________
Jay & Peggy Monroe with Dolly
Can't take it with you - don't plan on leaving any behind
2016 Newmar London Aire 4553, Spartan chassis
2017 GMC Acadia toad
JMonroe is offline   Reply With Quote
Old 09-03-2015, 01:34 PM   #6
Senior Member
 
Selah's Avatar
 
Join Date: Oct 2012
Location: Indiana
Posts: 2,319
I don't know what your investment strategy is and would advise you talk with an advisor. But here is my opinion. Mortgage rates are down to 3.89 so definitely finance. As far as the MH goes I would do (and did) finance only enough to stay ahead of depreciation. The markets are doing very well so why take money out of a higher earning investment to keep from paying a lower interest loan.
If things change you can always pay it off or worse case scenario sell it for a small or even zero gain. You would still be money ahead.
__________________
Paul, Kathy, and Tux the Mini Schnauzer
2014 Tiffin Phaeton 42 LH, 2013 Honda CRV
"When the time comes to look back, make sure you'll like what you see"
Selah is offline   Reply With Quote
Old 09-03-2015, 01:48 PM   #7
doc
Senior Member
 
doc's Avatar
 
Appalachian Campers
Join Date: Sep 2002
Location: Dixie !! (north Georgia) USA
Posts: 2,953
Never a good idea to finance (long term) an item that depreciates as fast as an RV does. There are companies that will do it, but interest rates will be huge
__________________
doc is offline   Reply With Quote
Old 09-03-2015, 02:57 PM   #8
Community Moderator
 
JMonroe's Avatar


 
Newmar Owners Club
Spartan Chassis
Join Date: Oct 2009
Location: Deer Creek RV and Golf Resort, Davenport FL
Posts: 6,853
Quote:
Originally Posted by doc View Post
Never a good idea to finance (long term) an item that depreciates as fast as an RV does. There are companies that will do it, but interest rates will be huge
Not necessarily true, but you should, as has been suggested, talk to a financial advisor. There are so many variables.

I agree, you should at minimum put enough down so as the loan is amortized you'll always be in a positive equity position. On the subject of interest rates, a friend just secured a 20 year loan on their new coach at 3.49%. If your investments are averaging two or three times that you've got to consider the wisdom of removing so much $ out of your investment accounts.
__________________
Jay & Peggy Monroe with Dolly
Can't take it with you - don't plan on leaving any behind
2016 Newmar London Aire 4553, Spartan chassis
2017 GMC Acadia toad
JMonroe is offline   Reply With Quote
Old 09-03-2015, 04:17 PM   #9
Senior Member
 
Join Date: Feb 2009
Location: Ca
Posts: 1,050
I think I would finance the depreciating MH. I assume the building will gain value. Some RV's are just lemons from the get-go. Why own it until you are sure you want to keep it?
__________________
timetogo is offline   Reply With Quote
Old 09-03-2015, 04:23 PM   #10
Senior Member
 
reubenray's Avatar
 
Newmar Owners Club
Join Date: Feb 2012
Location: Lake Osprey RV Resort, Elberta, AL
Posts: 2,735
I don't plan on doing anything with my retirement funds. The money for either of these will come from the house sale only. Even though I (along with a lot of people) took a hit the last few weeks I am still getting more return than the interest rates are.
__________________
Raymond, Dee Dee and Sophie (Yorkie)
2013 Tiffin Allegro (Sold) - 2017 Ventana LE 4037 -
2016 Chevrolet Equinox - V6 - AWD
reubenray is offline   Reply With Quote
Old 09-03-2015, 04:36 PM   #11
Senior Member
 
JBDISCOVERY's Avatar
 
Join Date: Mar 2011
Posts: 453
One of the considerations in financing is what effect that may have on your tax situation. Depending on your plans, you might consider an "Interest Only Loan" for the new home. This gives a tax deduction and reduces the cash outlay which can be used for earning a return, or applying to the purchase of the new coach. A 30 year loan which amortizes the principal for someone who may not outlive the loan may not make great sense. Reducing the outlay for the coach may be a prudent decision.
Regards,
JimB
__________________
JBDISCOVERY is offline   Reply With Quote
Old 09-03-2015, 06:27 PM   #12
Member
 
CoyoteFlatz's Avatar
 
Join Date: Oct 2014
Posts: 99
I totally agree with financing the Real Estate. That being said, I'm really interested in the coach house you plan to build...With or without living quarters? For one question.

Cheers,
Don
__________________
'08 Newmar Ventana 3960
Spartan Mountain Master
2004 GMC Canyon Towed
CoyoteFlatz is offline   Reply With Quote
Old 09-03-2015, 06:27 PM   #13
Senior Member
 
Rusty years's Avatar
 
Join Date: Dec 2012
Posts: 529
Why pay cash when you can make payments with devaluing dollars for as long as possible. You can always make some double payments. I'd rather keep as much liquid as possible. As far as a house, if possible, buy it with a reverse mortgage - requires 50% down and no payments and keep your cash. One person has to be, I think, 65. The idea of purchasing a big ticket item for cash is old school.
__________________
Follow us at: http://joelandesta.blogspot.com/
2006 HR Endeavor 40'...2002 Corvette
2011 Forest River 20' Cargo Trailer
Rusty years is offline   Reply With Quote
Old 09-03-2015, 09:15 PM   #14
Senior Member
 
reubenray's Avatar
 
Newmar Owners Club
Join Date: Feb 2012
Location: Lake Osprey RV Resort, Elberta, AL
Posts: 2,735
Quote:
Originally Posted by CoyoteFlatz View Post
I totally agree with financing the Real Estate. That being said, I'm really interested in the coach house you plan to build...With or without living quarters? For one question.

Cheers,
Don
It will be our principal residence and it will have a living room, kitchen, laundry, one bedroom and one bath plus a storage area. We will be downsizing from 1800 sf to less than 700 sf and love it. When company comes they can sleep in the motorhome. It is only us two plus Sophie.

We also want to build a pergola area with an outdoor kitchen.
__________________

__________________
Raymond, Dee Dee and Sophie (Yorkie)
2013 Tiffin Allegro (Sold) - 2017 Ventana LE 4037 -
2016 Chevrolet Equinox - V6 - AWD
reubenray is offline   Reply With Quote
Reply

Tags
motorhome



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Best State to Register RV if its your full time Home SissyBoyBob Full-Timers 73 12-04-2015 09:58 PM
Buying our first motorhome chasecoffey Class A Motorhome Discussions 43 05-31-2015 05:48 AM
Tax Court case on business use of motorhome CWHTRAINS Just Conversation 7 08-11-2014 04:03 PM
3-min in Car Buff & RVer's Dream Home Lake Weir Preserve Vendor Spotlight (Deals, Announcements & More) 0 03-03-2014 06:54 AM

» Virginia Campgrounds

Reviews provided by


Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -6. The time now is 05:24 PM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.