Live Aboarding on a Boat
- Adam Garrett
- Apr 27, 2024
- 5 min read
Updated: Jun 25
While I've gone on cruises and slept in some of my dad's boats & other boats for short trips on the boat, I've never done live-aboarding, but the concept interested me a lot when I was a bachelor. Ultimately a home purchase and renting out rooms as a bachelor was a much better financial decision for me before my tenants left soon before I got married.
Live Aboarding can be Superior Financially vs a Trailer Park
For those who are low income or who already have 1 or more homes that are being rented and who want to reduce costs by renting those out, live-aboarding is a strong option, much better than something like many mobile home parks financially speaking in my opinion, since so many in populated areas have much higher costs to rent the lot under a mobile home than the cost of docking in nearby vicinity even with a large vessel, with the option to avoid docking fees even further by anchoring instead.
Prime Example Pictured Above: My Friends Dr. Jim & Mary Rudisill on Their Liveaboard at the Time
Here's an example of a friend of mine who used to live with his wife onboard a boat for a very low cost/month.
2 Main Liveaboard Strategies: Docked or Anchored
My friends above did some of both. He was first docked (as in the video for around $150/month including utilities) for a long time before shifting to a lower cost by anchoring without being attached directly to the marina while close to a marina that had free amenities like showers that they used their dingy to get to.
Laws Against Liveaboarding for Anchored (Moored) Watercraft & Those Not Fully Operational
Some localities have laws restricting people from liveaboarding in a moored (anchored) vessel within that city's limits. In addition, it's not uncommon for a locality to require that a vessel be "fully operational".
Newport News Example:
"Sec. 11-25. - Unlawful to maintain a domicile in a moored or anchored watercraft; exception.
(a)
Except as otherwise provided in this section, it shall be unlawful to maintain a domicile in or on watercraft moored or anchored in the tidal waters within the City of Newport News.
(b)
Watercraft moored or anchored within Leeward Marina may be used as a domicile so long as there exists a valid lease with the city to do so.
(c)
Watercraft moored or anchored within privately owned marinas are exempt from this section.
(Ord. No. 4422-92; Ord. No. 7106-14)
Sec. 11-27. - Watercraft required to be sound, seaworthy and operational.
(a)
It shall be unlawful to moor watercraft or raft to another watercraft moored to city owned piers, bulkheads, docks or other property unless said watercraft is sound, seaworthy and fully operational, unless such mooring or rafting is specifically allowed by ordinance or resolution.
(b)
All watercraft moored or rafted to another watercraft moored to city owned piers, bulkheads, docks, or other property must possess and display a valid state, federal or foreign boat registration.
(c)
Any person violating the provisions of this section shall be guilty of a Class 2 misdemeanor.
(Ord. No. 4422-92; Ord. No. 7106-14)"
Snow Bird Strategy for Liveaboarding Part of the Year
One way that "snow birds" can use this strategy is to have one home for the majority of the year, then travel to the south for the remainder of the year to ride out the winter. For instance, someone living in VA might depart in November to be in Florida or the US Virgin Islands until early March. In some cases, they could travel by boat there (i.e. sailing for a very low cost & a more experiential journey), and in other cases, they could keep a boat docked in a place like Florida.
Liveaboard Dock Examples in SE VA
To see some examples of local costs of live-aboarding when docked, see my live-aboarding column for Hampton Roads here.
Are Liveaboard Boats Inherently Excluded from the IRS Capital Gains Exclusion? No - They May be Eligible
While there are definitely cases where taxes will be very different for a liveaboard boat vs real estate, thankfully, the IRS rule applies even if for a houseboat.
Per the IRS website publication 523 as of 6/26/24:
"The tax code recognizes the importance of home ownership by allowing you to exclude gain when you sell your main home. To qualify for the maximum exclusion of gain ($250,000 or $500,000 if married filing jointly), you must meet the Eligibility Test...
Finally, the exclusion can apply to many different types of housing facilities. A single-family home, a condominium, a cooperative apartment, a mobile home, and a houseboat each may be a main home and therefore qualify for the exclusion."
Pump Out Stations in Virginia Map
A critical element of liveaboarding is waste disposal. Here are locations within Virginia for pump-out stations:
While you may need to travel to get one in many cases, there are options for free boats that you could live on, like these:
Free Sailboat Examples (Ideal for Lowest Cost)
If you're really trying to cut costs & hoping to do more than remaining in a dock, a sailboat is superior to a fuel engine power boat. It's best combined with solar panels and an electric motor. Here are some examples I found on places like Craigslist and Facebook:
More examples:
Free More Roomy Craft
42' 4 Bedroom 2 bath w/ running fuel-efficient diesel motor in Hampton
34' Sundancer 12 ft beam example
In the case of this one it says free in the title but then must sell, so who knows about whether it's actually free or not, but it'd be worth inquiring about.
Related:
About the Author: Adam Garrett - 3rd Generation REALTOR®
Adam is the 3rd generation in a line of award-winning real estate agents serving SE VA. He has served full time at Garrett Realty Partners since May 2014 when he joined the marketing department before transitioning to full-time sales to assist buyers and sellers in February 2015. He believes that an educated buyer or seller makes the best decisions, & is dedicated to helping with that both digitally & on-site physically for buyers & sellers. He's also available for referrals to real estate agents around the globe. In several capacities, his resources & direct offerings for assisting sellers & assisting buyers are either unmatched or are top 1% for the SE VA area, and in some cases, nationwide. Not stopping after closing, he also provides information for tenants, landlords, & homeowners.
Related for Buyers:
Related for Sellers:
Additional Related
Comments