Dockominium???

Russ Calasant

Russ Calasant

Active Member
Dec 9, 2009
2,128
East Greenwich, RI
Boat Info
2001 480 DB
Engines
CAT 3196
There are personal pluses and minuses to dock ownership due to location, exposure and the obvious financial benefits. These are all specific to particular situations that individualy need to be evaluated.

I would like to get others thoughts and opinions of the general concept of renting vs owning a piece of wood hanging over the water. I am sure there are things I have not considered - what are your thoughts?

Thanks in advance
 
I want to own a condo along the water with 3 floors - all with balconies - with my boat directly out front. That's what I call a dockiminium. That's my future.
 
I think it's a good idea. I bought a 50' stretch of bulkhead along a canal this past year. I have about 20' between the curb line and the water. Plenty of room to store my boat, and keep a shed for storage.
I was getting ready to go for a dockominium if I hadn't come across this deal on a piece of private property.
It's a good idea financially because you will make money on it in the long run, probably at least as much as you'd make parking the money in a secure long term CD, and it will lower your annual costs for dockage.
Knowing that you will have a place to go each year is nice too.
 
While I agree with Hampton, a move to the water is a few years down the road for us.

We're actually leasing a "dockominium" slip to try it out before deciding to buy. The only thoughts I have so far is that it does seem to make sound financial sense. However, the associations I have looked at can be just as annoying as the regular condo and community associations. The big difference between the association and the standard marina type approach is that the law almost always seems to fall on the side of the association.

If you manage to elect a board that goes crazy and creates meaningless rules or by-laws, there is really nothing you can do about it. Where we are now, if you want to sell your boat, you can't have a for sale sign on it in the marina because of an agreement with an onsite broker. I have actually watched these people board boats and take signs down. I told the representative that they never have permission to board my boat except in an emergency and they pointed out the by-laws that allow them to board any vessel within the community for just about any purpose they deem necessary.

Apparently they have because I have found filthy footprints all over my boat on more than one occassion- Although I really find the concept appealing, this one may not be the place for us long term.
 
Mine is a private "yacht club",there are advantages such as 200-600 a year for taxes and association fees ,the higher price is if a fair amount of dredgeing will be needed in the spring'the low if none at all.we dont have a service or sales dept.or gas dock.We do have portable pumpouts ,nice clean showers a tent a party room, picknic tables ,gazebo overlooking the marina and saginaw bay,mast stepper,laundry room electric gated entrances,grills that are always full of propane,adjustable docks made of plastic thatr are two years old,lawn and pesticide services,and a great family atmosphere.We are also the first entrance off the saginaw bay in the saginaw river,so its a quick in and out on the weekends.
 
In my mind. . it depends on the financials and the location.

If the only access to a certain location is to buy in. . .that's what you do.

As for the financial. . .depends on the costs relative to slipping. The association fees and the ability to resell would be key factors. My dockuminium has a three bedroom house on it. :)

I have looked at the long term cost aspects. Considering taxes and the occassional roof. . . . .its not a slam dunk. As an investment. . it's quite a pill. Sometimes, it is the smartest investment on the planet. Other times. . .my 0.2% money market account beats the pants off of it. Of course. . I have occassionally thought the same of my mutual fund investments.
 
Pros:
investment
knowing that you have a slip each year
rental income if your plans change
savings - $x,xxx X 10 years = more than I paid for my slip

Cons:
assessments
 
Hmmm, very insightful. Thank you all for your input some very good points. My initial thought was that it is a slam dunk. However I could not help but think if it sounds to good to be true.....

Skeetobite brought up a very good point about the association, very important. Leasing, try before you buy, is a great way to approach it. That of course is if you can make an agreement that works for both parties. I assume that the slip owner wanted to sell but will rent until sold. If thats the case, how did you work that?
 
I know a few people that own their slip, they love it but... They want to move up in size but they can't because it won't fit in the slip they own. They tried putting it up for sale for what they paid for it, but no takers.
 
TurtleTone said:
I know a few people that own their slip, they love it but... They want to move up in size but they can't because it won't fit in the slip they own. They tried putting it up for sale for what they paid for it, but no takers.
Click to expand...

That's just a matter of moving up in a down market. It makes sense if you can get the bigger item (boat, house, condo, slip...) at a simiar discount (by percentage).
 
How about being "stuck" in one place......I love the freedom of being to able to keep my boat anywhere - last year I was actually at 4 different marinas during the season - I've even considered shipping the boat Fla, rack storing it and flying down regularly to explore the keys/bahamas - I probably wouldn't consider/do these things if I had layed out cash and/or had a mortgage on a slip along with assesments/taxes/fees - you can say rent it out but easier said then done in this economy - It's not for me but as they say whatever floats your boat!
 
Hampton said:
I want to own a condo along the water with 3 floors - all with balconies - with my boat directly out front. That's what I call a dockiminium. That's my future.
Click to expand...
With you on that one...:thumbsup: actually my goal is no condo, house or land based residence but the admiral isn't there yet.

Skeetobite said:
While I agree with Hampton, a move to the water is a few years down the road for us.

We're actually leasing a "dockominium" slip to try it out before deciding to buy. The only thoughts I have so far is that it does seem to make sound financial sense. However, the associations I have looked at can be just as annoying as the regular condo and community associations. The big difference between the association and the standard marina type approach is that the law almost always seems to fall on the side of the association.

If you manage to elect a board that goes crazy and creates meaningless rules or by-laws, there is really nothing you can do about it. Where we are now, if you want to sell your boat, you can't have a for sale sign on it in the marina because of an agreement with an onsite broker. I have actually watched these people board boats and take signs down. I told the representative that they never have permission to board my boat except in an emergency and they pointed out the by-laws that allow them to board any vessel within the community for just about any purpose they deem necessary.

Apparently they have because I have found filthy footprints all over my boat on more than one occassion- Although I really find the concept appealing, this one may not be the place for us long term.
Click to expand...

Ouch that is tough. I'm dealing with that same BS with my FL homeower's association. Being a New Englander this stuff is just outrageous to me. After spending last 4th at your facility Skeetobite, and meeting you, we were impressed with it and plan to return. But this stuff ensures we'll only be a transient there.

Thanks,
 
TurtleTone said:
I know a few people that own their slip, they love it but... They want to move up in size but they can't because it won't fit in the slip they own. They tried putting it up for sale for what they paid for it, but no takers.
Click to expand...

Exactly. Buying a slip is like buying any other piece of property. Or a time share.

It is not a given that a slip is a good investment. At least it is not a widely acknolwledged depreciating asset -> but it is not a given that a slip is an appreciating invextment.
 
At my marina people paid 55,000.00 in 1988. In 2000-2006 they resold for 22,000.00 to 27,000.00. Now when one comes up for sale they are 30-35 ish. One guy wants 55k and is holding out for it...for years. It was/is a "good investment for the guys who bought in 2002, not so much for the ones who did in 1988.
 
TurtleTone said:
I know a few people that own their slip, they love it but... They want to move up in size but they can't because it won't fit in the slip they own. They tried putting it up for sale for what they paid for it, but no takers.
Click to expand...

Sometimes you have to give a deal to get a deal.
Taking less than you paid for something in a down market so that you can get something bigger or better at a deep discount can make sense.
My house is worth a lot less than it was a few years ago, but if my wife agreed to move up I would gladly sell it at the discounted price in order to take advantage of the opportunity for big savings on a bigger house.
It works the same way with boats, etc..
There are people that think they should sell what they have for top dollar now so they can take advantage of a down market to get a deal on something bigger or better, but I think most of those people will wind up being stuck with what they presently have when the market rebounds and will have missed an opportuntiy because they were unrealistic or greedy.
 
Last edited:
Russ Calasant said:
Hmmm, very insightful. Thank you all for your input some very good points. My initial thought was that it is a slam dunk. However I could not help but think if it sounds to good to be true.....

Skeetobite brought up a very good point about the association, very important. Leasing, try before you buy, is a great way to approach it. That of course is if you can make an agreement that works for both parties. I assume that the slip owner wanted to sell but will rent until sold. If thats the case, how did you work that?
Click to expand...


Russ, we rent our slip in a condo.theres no buildings just slips w/ pool, tennis,playground. they are advertising sales/rentals more and more are coming available i guess due to the economy, however the going rate there is around $50,000 to buy i was told, or rent for $100 PER FOOT for the season , if you do the math it would take me many years to break even. If i want to leave i just dont rent again ive had the same slip for 3 yrs and the owner says he has no plans of selling the two slips he has are an investment. I dont see buying doesnt make sense:smt009
 
Slips in west michigan are not good investments. They do not go up in value and can be hard to sell. What with taxes and repairs they are a net loss. Buying a nice piece of lake front property with a good deep water dock is the way to go here. Great investment.
 
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