Buy a slip??

[rondds]

Has anyone done this? I know it's a pretty hot topic down in Florida but I'm not so sure about it here in the northeast. Thoughts, comments, ideas? Please chime in.

THANKS in advance.

 

[comsnark]

Do they even sell slips where we boat?

Honestly, with the way that Marina's can change management. . I would be scared to "lock in". I suppose one big reason to do it would be so that you could install a lift. . .

 

[quality time]

My marina is a condo association and probably 90% are privately owned. Mine included.

 

[tobnpr]

Pricing for "dockominiums" had been just as outta control as housing in some areas here in FL. I never felt comfortable with the concept of trying to place a real value on what amounts to "space". Good luck these days trying to figure out just what they're worth. Unless it was an absolute steal I'd sit on the sidelines until property values settle out.

 

[Nehalennia]

If you buy your slip in NJ or other locations that freeze, aren't you hauling out only using it 6 mos of the year?.....or do you just leave it in?

Mo and I are considering buying a "Condo Garage" 5 minutes from our house for storing the boat. Same concept as your "Condo Slip" but we trailer so it will be ideal for us with heat, electricity and much closer to home.

 

[quality time]

If you buy your slip in NJ or other locations that freeze, aren't you hauling out only using it 6 mos of the year?.....or do you just leave it in?

For me, it works out perfectly. My slip is covered in one of the nicest marinas on the northern bay so there is a waiting list for in water winter storage. We also have a bubbler system. I rent my slip for the winter and actually come out a little ahead after my hauling and shrink wrap fees. My renter comes over from the Jersey shore every winter.

 

[steve mac]

Where my boat is (Cape Cod, MA) most of the slips are privately owned. During a boom in the 80s, slips were very difficult to find on Cape Cod. Many boaters simply could not find a slip to keep the boat in. So in the late 80s, many of the marinas started to offer "Slip Ownership". It is actually a 99 year lease....since you can't actually own a piece of water. The prices fluctuate wildly, usually follows the real estate market. Even if you own the slip....you can only keep your boat in the water from May 1 - Nov 1.

 

[Nehalennia]

For me, it works out perfectly. My slip is covered in one of the nicest marinas on the northern bay so there is a waiting list for in water winter storage. We also have a bubbler system. I rent my slip for the winter and actually come out a little ahead after my hauling and shrink wrap fees. My renter comes over from the Jersey shore every winter.

So do you require your renter to provide his own insurance?
What's your liability having him there?

 

[sbw1]

Depending on the area, condo slips can do ok or drop like a rock. Slips in West Michigan have depreciated in value or stayed about the same at best. Then you have the triple net fees on top of that. The best deals in our market are homes with water access that are connected to the Great Lakes system. Over time, the houses still appreciate nicely assuming you buy right and did not buy at the top of the bubble two years ago. You can build two very nice slips with all of the utilities for about $17,000. This will get you a 50' dock built on steel pilings with a 5-6' wide deck plus 6 grade A pilings to make a slip on each side of the dock. The property tax on your home will be about the same as a slip rental at one of our local marinas. In the right location, this is truly the most cost effective way to go. We keep the open slip for friends to use when they come for dinner, but would have no trouble renting it for $4,500 per season

 

[Morpheus]

In Florida, I would buy a piece of land where I could put a dock/lift before I would just buy a slip.

Sure with the slip you can get other things that the marina provides but with the land you could eventually put a house on it and from what I've seen it's cheaper to buy land with a place to put a dock/slip then it is to buy a slip.

 

[quality time]

So do you require your renter to provide his own insurance?
What's your liability having him there?

Definately, our marina requires all boats to send a copy to their office.

 

[Mr Salt]

I own my slip. The whole marina is a condo. Although less than 10% of the slips have been sold, only about 20% have been offered for sale. Although there are condo fees and property taxes they are significantly less than even seasonal rental fees. The condo association takes care of the marina so there is nothing for me to do. They bubble the water in the winter so freezing is not an issue.

I also have a land based condo there so the slip makes perfect sense and dramticly adds to the value of the land condo.

Mr Salt
2001 540 CPMY
Caterpillar C-12s
Cape May NJ

 

[Kameroo]

Lots of variables. We are in KY, and the cost of a slip is about 5x the going rent +/-. Depending on the area, slips can range $10,000-$40,000+. We used that as logic to buy, but have found that association fees, dregding and property taxes add another $1500/year to the cost. The upside is that we like our location and don't have to wonder where we'll be or what it will cost the next year.

 

[Morpheus]

10k-40k for a slip in florida would be a steal the last time I looked it was 80k and up

 

[quality time]

For us, it was well worth the investment. I've been at the same marina for 18 years and don't plan on going anywhere else. At $5000 or so a season for rental it just made more sense. True there are condo fees, taxes and the occasional assessment but the fees are being put back into the marina to make your investment that much more valuable. My slip has appreciated 30-40% since I bought it. Not to mention the security that you always have a slip and if you get out of boating for some reason you can rent it out and make money. I did that for a few years.

 

[comsnark]

<snip>
The property tax on your home will be about the same as a slip rental at one of our local marinas. In the right location, this is truly the most cost effective way to go. <snip>

This is a non-trivial factor for me.

I have property with a 60' long bulkhead where I keep the boat. I am thinking property taxes are about double slip fees. . .but I may be underestimating slip fees.

Especially since I actually have two boats on the bulkhead, as well as jet-skis. In the Winter, the SeaRay and jet ski's are stored on the property.

Further. . . by actually having a house I find that I am able to have a MUCH smaller boat, since I don't actually have to live on the boat overnight either anchored out or in a slip. After a day on the water, we just come back to the house and everyone can sleep in nice large, comfortable bed.

The downside, of course, is that I can't take the house for a week down into the Chesepeake.

 

[highslice]

Where we keep our boat, a 12' x 30' slip goes for $30K. Then you pay $750/year in association fees. Dry storage in the same development is $2,100 per year, all inclusive. It was a no brainer for us, 15 year pay back is a little long.

Plus all it takes is one idiot not following Corp of Engineers rules and the can pull the dock permit. Then your $30,000 investment is reduced to $0:smt021. The Corp does not allow you to rent your slip out to anyone else, only the registered owner can use it, so there is no chance to offset the expense.

 

[sbw1]

Sure with the slip you can get other things that the marina provides but with the land you could eventually put a house on it and from what I've seen it's cheaper to buy land with a place to put a dock/slip then it is to buy a slip.

Some of the other things that the marina provides are not good. We stay overnight at local marinas, have dinner with friends and hear about all the bickering that can go on. It reminds me of living in a very small town and having no privacy. We enjoy not having slip mates unless we are cruising.

 

[Kurt]

Plus all it takes is one idiot not following Corp of Engineers rules and the can pull the dock permit. Then your $30,000 investment is reduced to $0:smt021. The Corp does not allow you to rent your slip out to anyone else, only the registered owner can use it, so there is no chance to offset the expense.

This is so true of the Corps of Engineers at Table Rock Lake in Missouri. My uncles dock permit was suspended and they were fined a substantial amount. What had happened is another slip owner allowed his buddy to keep his boat in the slip all summer. When the Corps came to renew the permit "BAMMMM" they fined them and made them replace all the encapsulated foam as well. It apparently did not raise the dock high enough. So with the fines, replacing the foam which really did not need changing....(the margin was an inch) The cost was pretty high. On top of everything else, once they replaced the foam none of the lifts worked properly. So all the lifts had to be reset in the stalls.

One free slip rental for one guy turned into 15k loss for the owners. I think I will continue to rent.

 

[highslice]

This is so true of the Corps of Engineers at Table Rock Lake in Missouri. My uncles dock permit was suspended and they were fined a substantial amount. What had happened is another slip owner allowed his buddy to keep his boat in the slip all summer. When the Corps came to renew the permit "BAMMMM" they fined them and made them replace all the encapsulated foam as well. It apparently did not raise the dock high enough. So with the fines, replacing the foam which really did not need changing....(the margin was an inch) The cost was pretty high. On top of everything else, once they replaced the foam none of the lifts worked properly. So all the lifts had to be reset in the stalls.

One free slip rental for one guy turned into 15k loss for the owners. I think I will continue to rent.

Yup, sounds right. We have three docks, 20 slips each, almost lose thier permits for letting other people use their slips. Only a lot of begging to the new head of the district saved them. But if you buy a slip, one idiot breaking the rules puts your investment at risk.

One of the dock associations in our development decided to build concreted steps and a walk-way to thier dock. Someone from the Corp showed up every week to look at the progress, never a word spoken. When the dock permit came up for renewal, the corp said nope, gotta remove the concrete first. :smt021