The lifestyle of living on a houseboat is an advantage that draws people. Some say it provides an escape from everyday life and allows them to enjoy the water. Stepping on a boat and actually living and sleeping there is a different life than living in a home close to the water. It does require adjusting to the movement of the water underneath you and the fact you do not have a yard with trees, flowers and grass. For some people this would be a disadvantage. For others, sitting on a boat watching and feeling the water beats sitting on a porch or deck and watching the yard.
A houseboat is, by definition, mobile; if you decide you want to live somewhere else you can move your home. Houseboats have propulsion systems as opposed to floating homes, which are attached in water and cannot be moved. Most owners of houseboats rent the slip where they are docked so they are not tied down to one dock. The ability to relocate your home without packing and unpacking is an advantage that has value.
One disadvantage of a boathouse is the expense. Purchase a houseboat and lender's charge a higher interest rate than they would if you were to purchase a home on land. Insurance may be more expensive, too. Before you can obtain a policy, an insurance company may charge $750 for a survey to determine whether they will insure you and at what cost. A 30-year-old houseboat worth $50,000 runs $600 to $800 for insurance per year on average. Another cost is the rental fee for a slip to dock your boat. It averages $12 per foot of boat per month. Add the cost of having the sewer pumped every week, which averages $550 per year, and living on a houseboat becomes expensive. Finally, boats require maintenance and the rule is 10 percent of the value of the boat as an annual expense.
A houseboat as an investment is both an advantage and a disadvantage. It all depends upon market conditions and supply and demand. Keeping your investment in good shape is expensive, but supply is usually limited, so prices remain high. A rental market exists for houseboats. An owner has the option of treating his houseboat as rental or investment property.
