Has anyone used a Home Equity Line of Credit to purchase dive gear?

[dirdiversrule]

I am thinking of pulling money out of my home equity to buy Halcyon gear. Everyone knows that Halcyon's gear is the best on the market and never loses value. After all, GUE used it to do the longest World Record Dive in a cave ever!

I did my research on financing and am thinking about doing a HELOC. I talked to my mortgage guy and decided to do it since he gave me such sound advice. He showed me a graph of how much home values have gone up in the last 5 years so I felt okay about it. Since my home value has doubled since I have bought it, I have plenty of money to burn!

I plan to refinance in 6 months anyway since my 5 year ARM is coming due so I should be fine.

What do you guys think?

 

[BTravlin]

What area of the country do you live in? Home values in the US have dropped about 4% on average over the recent past due to the subprime mortgage mess. Experts say prices could drop as much as 15% in some areas before this problem bottoms out. At the very least I'd get a 2nd opinion before believing one mortgage guy. Greed and dishonesty among some unethical mortgage brokers went a long way to creating this mess. Make sure you're not talking to one of those brokers.

Also, when you refi, do you really want to be paying for that new dive gear for 15-30 years, long after you've moved on to the latest and greatest gear? Better, in my opinion, to save your money and pay cash.

 

[mike_s]

I would say paying cash would always be better.

The thought of a home equity loan (or line of credit) to purchase scuba gear seems crazy to me.

However, people buy scuba gear on credit cards all the time and that doesn't seem as crazy.

But if you look at all the aspects, credit card interest is high and not tax deductible. Equity loans have a lower interest rate and you can deduct interest paid off your taxes since it's against your home. So go figure, if you're going to get a loan to buy gear (conventional loan, credit card 'loan', or equity), this seems to be a more cost effective way of doing it (no including any closing costs). Never thought I'd be be saying that.....

 

[Doc Intrepid]

When you refi, THEN remove some of your equity and use it to purchase gear for cash.

But don't take out a loan (of any sort) to purchase new scuba gear - the gear depreciates in value rapidly. The loan will require you to pay (whatever the finance rate is) 6% to 8% on a home equity loan, or from 18% to 20% or more on a credit card, on the balance until you pay it off.

That cuts into your trip funds quickly!

(Also, look around. There are good deals to be found on used gear, both here and at TheDecoStop.com...)

Saving up your cash over time and buying used gear is generally a pretty good choice. Backplates, for example, don't wear out and if you need to replace the webbing its about .16 cents per foot or so.

Best,

Doc

 

[MBH]

I am thinking of pulling money out of my home equity to buy Halcyon gear. Everyone knows that Halcyon's gear is the best on the market and never loses value. After all, GUE used it to do the longest World Record Dive in a cave ever!

I did my research on financing and am thinking about doing a HELOC. I talked to my mortgage guy and decided to do it since he gave me such sound advice. He showed me a graph of how much home values have gone up in the last 5 years so I felt okay about it. Since my home value has doubled since I have bought it, I have plenty of money to burn!

I plan to refinance in 6 months anyway since my 5 year ARM is coming due so I should be fine.

What do you guys think?

Here's what I did- I called up Halcyon, told 'em how good I am, and that it would be in their best intrest for them to just sponsor me. Well...it worked. The UPS man shows up at my house about twice a week will all kinds of new free gear with the big blue H on it.

Here's the best part yet- somebody must have told GI3 about me because FedEx just stopped by and unloaded a new Gavin. I'm unpacking it now! Man those styrofoam peanuts are a bummer, there all over my living room floor.

 

[xiSkiGuy]

This guy is a troll. Please stop feeding him.

 

[300bar]

This guy is a troll. Please stop feeding him.

Must be or a serious thinking defect. :11:
Using your house as collateral for ones diving

 

[Jim Lapenta]

Yeah real dumb, I took a loan out against my 401K.

 

[Cave Diver]

Yeah real dumb, I took a loan out against my 401K.

Rebreather?

 

[mike_s]

Yeah real dumb, I took a loan out against my 401K.

the major problem with doing that is a lot of employer plans require you to repay the loan imediately if you ever leave the company for some reason. of course that depends on the employere and plan involved, but I've seen that requirement before at least with two places I worked.