Sunday, January 3, 2010

Is an RV a Good Investment?

This probably could be very controversial but I wondered if an RV is a good investment? I know it depreciates and homes appreciate, but what do the NUMBERS say?

I had to start with "Is an RV a good investment" and add "compared to what I'm doing now".

So, THIS LINK is a google docs spreadsheet.

I make some ASSUMPTIONS (please be gentle oh blogosphere). I started with the idea that I am doing something now - say rent @ $1,400 per month. I then decided my choice was to buy a house or buy an RV and I compared the three. I assumed a savings rate, a mortgage rate, pad expense (for the RV), real estate taxes. I ignored the idea of an RV loan, although it is not out of the question, AND you even get a mortgage deduction with an RV loan. The one thing you don't get is property tax which may make beating the standard deduction difficult.

What was suprising... is RENT is the absolute WORST path no matter what - not even close. But surprisingly, house and RV were not that far apart in 'end point final assets', but for ENTIRELY different reasons.

I left out some details like fuel costs for heating and cooling  or rv insurance or home insurance as they needed to be purchased on both options. Anyway, just meant this to be FUN and thought provoking.


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