Thoughts on Used Catamarans and US Dollar Update

Been thinking more seriously about narrowing down the list of cats that I might want to purchase sometime in the future. Outremer certainly comes to mind. There is a good article comparing two of the Outremer 42’s. One uses diesel and the other uses diesel electric propulsion. Check it out here. There is some promising information surrounding electric propulsion. Although there are still ups and downs, I have to remember that my boat will be power hungry. This is another reason to go with an electric cat.

Another cat I would love to own although I am guessing it will be out of my price range is a Gunboat. Just to see what is new I went to there website. There are a couple links to some interesting Gunboat blogs and additional news found here. They have announced the new Gunboat 66 although not much info on it yet.

I would love to own a cat 50 feet or more but I suspect I will at some point have to do a reality check and drop that goal. A 41 foot Maine Cat might be a better option for me. It would be substantially less money and still be a good performing and functional cat which are two of my top priorities. This would free up much more money for upgrades and ongoing maintenance.

Here is an update on the US dollar to EURO that I have been watching. Things are starting to show improvement for the US Dollar. To recap, I started on 2-14-2008. In my sample I made the assumption that someone might buy a Catamaran at 500k EURO and converted that into US Dollars using http://www.xe.com/ as a translator and kept track over time. Below is the data I have gathered so far. As you can see as of April things are beginning to trend downward.

Justification for a Dream

How do you justify making your dream a reality? There is a wealth of information out there that I am collecting surrounding sailing. Today I received an email from the Captains’ and Admiral’s Café Yahoo group which appears to be a fairly active group. The email mentioned some of the pros and cons of living aboard their boat. Although she says they enjoy it, there is some boredom and frustration that comes with this lifestyle. Additionally she mentioned that whatever you think cruising will cost, you have to double it. She also mentioned a saying “Cruisers look out for one another” that is not always accurate according to her experience. Well, I hope to learn from her experience and others in hopes to prevent or at least have the appropriate expectations.

She mentioned that there are some frustrations with customs and immigration officials and the issue of not being able to get what they needed. I am sure living life on land has similar frustrations. They are just different and on land I suspect that there are more frustrations. I guess boredom can get old, but I am so busy, I would welcome a little boredom. I also think that by learning from this experience that one might be able to do things and equip your catamaran with things that will prevent or at least reduce the amount of boredom.

Perhaps if you knew ahead of time that you would likely run into customs issues, that it wouldn’t be so bad. If you knew it would take a while and you were mentally prepared it wouldn’t be so bad. If you are in a hurry, then customs could be frustrating. If you don’t have the necessary items to clear customs it could be a challenge. If you researched ahead of time what you would need to get through customs, perhaps the experience wouldn’t be so bad.

A natural thing that happens with me is when I hear some negatives that will impact my dream; I begin to formulate theories as to why these things won’t be an issue for me. Being better prepared is a valid theory. Buying a newer boat would perhaps be less frustrating. Installing a satellite dish, game console, and lots of books might prevent boredom. I have to be careful here though. After all this wouldn’t be the 1st time I have theorized and been wrong. This is not the 1st time I have been blinded by love. In this case it is the love for a dream. It is easy to make excuses for a negative, because you don’t want to admit that there are negatives. It will take some time before reality sets in and love ceases to be blinding.

One of the reasons I have chosen a Sailboat over a power boat is that in theory this should be a less expensive option, but is it really less expensive long term? How much fuel can you save sailing vs the cost of owning a power boat? How much does it cost to replace the sails? Does it make up for the fuel savings? I am still concerned about ongoing costs and maintenance needed to keep a Catamaran. I know that when it comes time to take out a Sail boat VS a large Yacht, I will be much more excited to take out the Sailboat because there is almost no fuel costs to take out the sailboat. If you take out a power boat, you know that every mile will cost you. On the other hand, could put a price per mile on a sailboat after including maintenance? Although I am 99% sure what I want to do, when it comes down to it, I have to be 100% sure that a catamaran sailboat is the way to go for me. As you can see I still have some convincing to do and reader comments like the one above do cause one to pause just a bit.

I am confident I will be purchasing used. The price needs to be right. I have some ideas of what I will be looking for. I have to justify jumping into this dream of owning a cruising catamaran. Since boats don’t generally appreciate in value (Here is an interesting post on resale value of Catamarans) I need to make sure I can turn around and sell it if needed for a fair price. I need to make sure that if things don’t work out that I can still get out of the relationship unscathed. I want to keep it simple, however my needs are complicated. The more luxuries I have the more items that will eventually need repair or replacement. Will it cost more to live on a boat or on land? Which is more fun? Which is less frustrating taking all into account?

In the end I might just have to try it to answer some of these questions. After all, the best way to learn is to learn it the hard way. I am notorious for learning the hard way. This is most likely why I do so much research. Unfortunately one can never research enough so it seems. At some point you make a decision and hope that your research paid off. If I could buy a cat now, I would probably do it, but the fact remains, that I have a lot of time to research. I find my self doing a ton of reading. Every little bit helps to educate me and helps me to cope with my strong desire to achieve this dream.

The cat pictured above is a Kynsa 440. I just came across this cat today and thought I should share it.

Language Translation for a French Catamaran Site

I came across a catamaran web site that was only available in what appears to be the French Language. It is the NG Yacht Design company. I searched for translation software so that I could read the specifications on the HIVA’OA 45. As a result I found a website that is worth sharing. It is the http://babelfish.altavista.com/ This site will allow you to enter a web page URL and it will translate the entire web page to the language you prefer to view it in. Although it is not a perfect translation it does the trick. For example, this “113.8 m² GV 72.6 Solent 41.2 m² Code 0 83.5 Spi 139.8” was translated into this “113.8 m² Steam Generators 72.6 Solent 41.2 m²”. Not sure where the “Steam Generator” came from. I theorized that the Solent is similar to a Jib. Someone correct me if I am wrong. The translation site is easy to use. You simply enter the url and the from and to language and click go. Pretty cool. By the way, the HIVA’OA 45 ranks in the top two on Cat Stats Performance Ranking. This is assuming I translated the specifications properly.

I have had visitors to my site from Brisbane, Melbourne, Brazil, Argentina, South Africa, New Zealand, France, Europe, Germany, Switzerland and of course The US and Canada and the list keeps growing. Surprisingly none from Mexico. Most of these locations are well known for sailing and manufacturing of sailing catamarans. There is a high probability that the catamaran I end up desiring will not be anywhere near my home county in the US. More likely I will find it in the UK, Australia or Africa.

Speaking of buying a Catamaran in another country. Here is an update on my comparison of the US $ to the Euro. Imagine buying a catamaran for 500,0000 Euro. As of February 14^th, 2008 you would have had to pay $731,903.10 US. If you bought the same cat priced at 500k Euro today, March 26^th, 2008, it would cost you $792,225.51. That is a difference of $60,322.41 US. At that rate Catamarans purchased in the UK from the US are going up in price $1,471.28 per day. The good news is, there is a hint that things are going to level off soon, however only time will tell. The US economy is looking bad. Is there a country with a booming economy? Maybe I should sail there and take up residence.

CountryWide Sub Prime Mortgage Foreclosure

Although this may seem off topic, this is a step that needs to be completed in order to achieve my dream. I hope the information below will help others.

I emailed KCRA Call3 to see if they could assist me in working with CountryWide Home Loans so that I can avoid foreclosure on my property. I have an adjustable rate mortgage on a rental property that I had planned on selling a year ago. Trouble is I am upside down now due to the terrible housing market. KCRA was helpful and gave me the some information that is listed below, but before you follow their advice I may be able to provide some more up to date information. Don’t get me wrong, I appreciate KCRA’s response, but the end result was to do something different.

After calling in and being disconnected 3 or 4 times and transferred, I was then asked to call a different # that then asked me to dial a different #. I was finally advised that I needed to speak with someone in the Hardship modification department. The # is 1-866-921-4765. I spoke with a gentleman named Donny who was helpful. He asked me a series of questions to update my file so that he could resubmit my request for a modification. I hope I didn’t screw myself though. The answers to the questions will show that we now make more money. I am not sure telling Donny we make more money now will actually help us. We will see what they come up with. Donny advised us to wait 2 weeks and then check in to see what the result is. So we will do that. I will update the blog when I receive new information.

We were denied twice in 2007 for a modification and were told that we make enough money and can afford afford the $3,700+ per month payment, along with our main house payment of just over 3000. They calculated that we should have 150.00 left over every month. Just makes you want to strangle someone. I was advised to stop making my payment to see if they will try to work with us. So I did that. It's been two months now without making the $3,700.00 payment.

This property is a rental property and is not saving us any money in taxes. Bottom line is the house is a loosing proposition. It doesn't make financial sense at this point to keep throwing money out the window. I have to do what is right for my family and our sanity. If our credit is ruined for 7 years, at least we will have money in the bank. We are now able to put 10% of our salaries into 401k. For the 1st time in 2.5 years our net worth is going up rather then down. We have a 30 year fixed in our main home now so we are paying down our mortgage. We will survive with a roof over our heads until our credit improves.

This is the information that KCRA gave us, but I believe this to be old info. KCRA also suggested if all else fails to call the California Association for Mortgage Brokers Help Line at (866) 999-5508. I have not done this yet.

KCRA where the news comes first.

"COUNTRYWIDE LOAN WORKOUT NUMBER"

• Countrywide has a special number consumers can call to connect with their loss mitigation department. 800-262-4218
• Callers must AFFIRMATIVELY demand to be connected to the "SPECIAL WORKOUT PROGRAM"
• They may be connected to other departments but must be persistent and insist on connection to the "Special Workout Program".

When you call the # above you will be asked to enter your Loan #. Then you will need to press 0 three or 4 times to finally speak with a representative. You will be asked to verify last 4 of your social and then you will be asked to enter your zip code. Once connected to a live person you will again be asked for the information you already provided above. Most likely you will end up speaking to someone in India that has an American name and a thick accent.

Here are a couple other #’s that I found out about however they were not what I needed.

Refinance 1-800-635-5215
Hope Department 1-888-219-7773 – They didn’t give me much hope here.

The Wait is Killing Me

Home and work life volume is picking up. Hard to find time to play and relax. I can only imagine what life on the ocean would be like. Although I am sure there are stresses, they can’t be as bad as my life at the moment. Not that I can’t handle it, but it isn’t easy to balance it all and remain sane. How will my dream come true under these circumstances though? Is there a way? I am growing impatient.

Our 11 year old daughter is in division 1 competitive soccer, so this takes up a lot of time. It is so rewarding for her though and that makes us happy. When will I find time to sail and take lessons? We have a three and a half year old to raise as well. I have seen some families sail with their kids. If we move to a house on the water will the schools be as good? This is not an opportune time to pursue a dream for me, yet the desire is so strong I can’t deny it. Writing this blog, reading and researching catamarans seems to help me cope.

I think every day about how I can live my dream and still support my family and have money left over when we retire. I won’t be foolish and put all my money in a boat that will not appreciate in value. I think about finding a way to capitalize on the housing market. I think about selling photo’s or videos from sailing adventures. I think about running some charters, mostly day or weekend stuff for now. I keep looking for ways to supplement my income to help justify the expenditure. I have read about the huge tax advantages of putting your boat in a charter; however I don’t know how much I would benefit yet.

Ideally I want to owe little to none on our property, and finance the cat. Our incomes are going up so we should be able to live comfortably with that plan. Finances are improving; however we are still stuck until we get through this terrible housing market. When the conditions are right I plan to buy some land on water, most likely the least expensive lot around. Then the question is, do we buy the Cat and live in it, or do we live on land in a large RV, or buy a trailer home or prefab home. It just needs to be functional for me, for now. Time will tell. It is eating at me though. Very similar to when I purchased my 1^st truck and then our Camper. The wait seems to last forever and the wait for this Cat will be even longer... much longer.

Hybrid Diesel Electric Propulsion

If you haven’t heard yet, several cruising catamaran sailboat manufacturers are selling or are researching alternative propulsion techniques that minimize the use of gas and diesel. For example, the Lagoon 420 features a hybrid diesel-electric system. The African Cats FastCat 455 Green Motion is similar.

Wouldn’t it be nice to travel without using fuel? Lagoon claims you can run on batteries at full speed (10kW per motor) for about 1 hour. If you add solar and wind generated power I am sure you could go farther without running the generator. How often do you need to travel for one hour or more in general? If you are in the doldrums you may need to motor more then an hour, but at least you will be doing it more efficiently.

With the combination of Solar, Wind and Water driven power generation it may be possible to go from A to B without using a single ounce of fuel. With today’s gas prices this makes so much sense. Who wants to hear or smell and noisy diesel running. There is no motor to start. You just turn a key and go. I wonder if you can run the microwave without starting the generator?

The Lagoon 420 Hybrid system uses two electric motors, a generator and a bank of batteries. Under sail, the propellers are driven by the speed of the boat and recharge the batteries. Add Solar and wind generation, and you may never need to start the generator unless you need to run your AC or washing machine. Very little maintenance is required compared to most cats which come with two engines and a generator.

What if the generator failed? You would have to rely on sun, wind and the water to power to charge the batteries. What if the Electrical system failed and you had no power to the motors? If one motor fails you still have the other. Lagoon stores energy in 2 separate banks of 6 batteries each which can be isolated, dedicated entirely to driving the electric motors. (Safety measure: in case of battery failure, one single bank can supply power to one or both motors). I am still not entirely convinced that there is enough redundancy so that you always have propulsion, however I suppose similar problems can potentially happen on any propulsion system. The question is which is more reliable.

How much does this system cost you long term in comparison to the traditional twin diesel’s and a generator? Lagoon claims the only maintenance on the electric motors is to replace the motor bearings at 20,000 hours or more. Batteries don’t last for ever and will need to be replaced. Diesel engines don’t last for ever either, but which will cost you more long term? With todays fuel prices these hybrid technologies should pay for themselves. Lagoon says they are working on the possibility of using Lithium Ion batteries which looks promising : 1/3 the weight, 1/3 the size, and an expected life of 8 to 15 years, with a capacity loss of 20%. The Cat is slowed less then 1 MPH by the spinning propellers, however once the batteries reach a full charge they will free spin. The African cat offers retractable propellers which will improve sailing performance while not charging batteries.

Is the power plant in you cat aging? Is it time to replace old engines? Perhaps you should consider switching to Electric motors. In that case you might want to contact OSSA POWERLITE. You can check out two of their projects, the Moorings (Robertson & Caine) - 43' eLeopard . View video footage at of the boat here. They are also working on a Alwoplast - 47' Crowther Catamaran.

I will seriously consider diesel electric and hybrid technologies in my 1^st Cat.

Currency Exchange Rate

Has anyone noticed the US Dollar is falling. I thought it would be interesting to keep track of how much things change over time. I started tracking on 2/14/08. I imagined buying a Catamaran for 500,000 EUR. After all most of the Cats are in other countries, so why not compare the US dollar to the EUR.

If you bought a Cat for 500k EUR on 2/14/08 it would cost you $731,903.10 US. If you decided you wanted to sell the Cat today for what you purchased it at ($731,903.10 US) it would only take EUR. This is a difference of 18,163.96 EUR after only 15 days. If you waited and bought the boat today in US, you would have to pay $27,548.27 US more today then if you bought the cat 15 days ago.

This sure makes you think twice about buying a Catamaran over seas now rather then waiting. I am hopeful that by the time I am ready to buy that the US Dollar is beginning to improve. On the other hand if I buy now it will cost less today then if you buy tomorrow. I guess there is more then one way to look at it, but with a large purchase like this, it is important to do your math. Make the wrong choice and you end up with a purchase that will depreciate in value very quickly. Make the right choice, and it may not depreciate as quickly. This is important to me since I suspect I will at some point be upgrading to a new boat.

I used the Universal Currency Converter to gather the information above.

New Thoughts on a Cat Purchase

I have been reading the Multihulls World Magazine. It is the 2008 buyers guide version. It has opened up my mind to other options to consider when purchasing a Cat. There is more then one brand out there that allows you to have it shipped in pieces for assembly here. This would require a significantly smaller investment initially and allow me to customize it to my specifications. This might be a good option for me. More research is needed, but it does give me food for thought.

The article was on a cat called Spirited 380. Essentially it is a build it yourself Cat Kit. I could see going this route if you have a tight budget. You could theoretically assemble the cat to a point that would allow it to sail safely and work on the rest as time and money allows. This does peak my interest.

ok. I am off to Jury Duty. Fun!