Dockominium???

We are in the Newport, RI area. Up here slips are expensive and the yearly fees are high. It doesn't seem to make sense except for the piece of mind of having a slip every year The math doesn't seem to work.

We bought a dock in Hilton Head. The fees are reasonable. The idea was to bring the boat south and use it as a place in the winter. We did that the first year. Subsequently, we sold the boat and were out of boating for a few years. It has been rented most of that time. The ROI has been very good (much better than the market). I keep my rates below the marina rates. There is a website that works fine for renting it.

We are back into boating with our Sea Ray and may winter down there next year.
 
We are in the Newport, RI area. Up here slips are expensive and the yearly fees are high. It doesn't seem to make sense except for the piece of mind of having a slip every year The math doesn't seem to work.

We bought a dock in Hilton Head. The fees are reasonable. The idea was to bring the boat south and use it as a place in the winter. We did that the first year. Subsequently, we sold the boat and were out of boating for a few years. It has been rented most of that time. The ROI has been very good (much better than the market). I keep my rates below the marina rates. There is a website that works fine for renting it.

We are back into boating with our Sea Ray and may winter down there next year.[/quote]
 
I am not sure I undertand why the financial aspect would not make sense. Let me give you all my scenerio.

Right now I pay a total of about $12k a year for dock, winter storage, shrink wrap and winterization. I could knock down a couple thousand dollars by going to a cheaper place but for the most part prices are pretty close in my area and the price will reflect location and/or ammenities. If I do not do the work on the boat myself I have to pay the yard - no other choice.
The dockaminium I am looking at has an asking price of $25k and its $800 a year for winter storage. I am at liberty to contract any outside labor for any work. I know there is a small assesment on the horizon for an environmental catch basin. I am still waiting to see what other fees are involved.
Now, location is good for both. The docks are fixed at the dockominium and I rent and prefer a floater. The grounds and faicilities are nicer at the dockominium. However the dockaminium is exposed to daily passanger ferry wakes that are disruptive at best and certainly a concern. Not a deal breaker unless there is not a financial benefit.

Even taking a conservative number, say $8k a year for rental.
Say $2400 for winterization and storage plus a fee or dues and $25k financed over 5 years for purchase.

5 years - $40k rental
5 years - $40k (includes interest) plus fee or dues? to own
So break even in 6 or 7 years? How could you not break even at some point?? Eventually the purchase cost drops out of the equation and ownership becomes an asset. Your dues or fees plus contracting labor outside and discounted storage will always be cheaper than renting and paying a marina. What am i missing?
 
It sounds like you worked the numbers and it worked out for you. I'd say it makes sense.
I was paying $2150 for a summer slip in a working boatyard with no amenities. It was a realtive bargain. Winter storage which had to include everything involved in winterization, covering, bottom painting, haul, and re-launch was about another $3900.
The owner of the boatyard was pretty good about letting me do other maintenance or small repairs, which is unusual for around here, but anything else had to go through him. Anything that required an outside contractor had to be one of the people he uses. They were all good people, but charged extra becuase they had to kick back to the boatyard for coming in there.
I bought a piece of property last year for $60,000. The taxes are $700. The water and electric bills will be about $300 for the year. It cost me $270 for shrinkwrap, $270 for a crane to pick the boat up and block it up on the property, and another $270 to put it back in the water.
I figure the cost of all the supplies for winterization, bottom painting, and zincs to be about $400. I do the labor, which I wasn't allowed to do in the boatyard.
Figure in other incidentals and I'm looking at about $2500 a year to dock, winter store, and maintain the boat. That's a savings of about $3500 a year.
Not a bad rate of return on a pretty secure investment. Much better than I could get anyplace else.
If the property increases in value during the time that I own it, the return increases. Chances are good that it will increase because they aren't making any more waterfront property around here, and many marinas/boatyards have already sold off to residential developers over the years, with more likely to do so in the coming years.
If the boat needs any repairs that I can't handle, I can use anyone I want to do them. That increases the savings.
I had been looking for a piece of property on this particular canal for a few years and jumped on this one as soon as I got word of it. In all likelyhood, if I wanted to sell, someone would jump on it just like I did.
Had I not come across it, I was ready to by a dockominium in a local place.
The initial purchase price was lower for the dockominium, but the annual expenses were just slightly higher. They also let you bring in people from the outside for repairs or maintenance, but they have to be approved. Not a big deal, and probably a good thing so you make sure that competent insured trustworthy people are walking around in the marina. Overall, the numbers still worked out to be much better in there as an owner than anyplace else around here as a tenant.
It probaly varies from one region to the next, it sounds like price and availability of dock space and storage is very different in different areas of the country, but if you sharpened your pencil and the numbers worked out, then go for it.
 
JVM225 - thanks for your insight. Sounds like you got a great deal, you would never find any waterfront property like that here and certainly not for that price.

I think I just need to confirm the numbers and I liked an earlier idea about leasing for a year first if possible.
 
Russ Calasant said:
I am not sure I undertand why the financial aspect would not make sense. Let me give you all my scenerio.

Right now I pay a total of about $12k a year for dock, winter storage, shrink wrap and winterization. I could knock down a couple thousand dollars by going to a cheaper place but for the most part prices are pretty close in my area and the price will reflect location and/or ammenities. If I do not do the work on the boat myself I have to pay the yard - no other choice.
The dockaminium I am looking at has an asking price of $25k and its $800 a year for winter storage. I am at liberty to contract any outside labor for any work. I know there is a small assesment on the horizon for an environmental catch basin. I am still waiting to see what other fees are involved.
Now, location is good for both. The docks are fixed at the dockominium and I rent and prefer a floater. The grounds and faicilities are nicer at the dockominium. However the dockaminium is exposed to daily passanger ferry wakes that are disruptive at best and certainly a concern. Not a deal breaker unless there is not a financial benefit.

Even taking a conservative number, say $8k a year for rental.
Say $2400 for winterization and storage plus a fee or dues and $25k financed over 5 years for purchase.

5 years - $40k rental
5 years - $40k (includes interest) plus fee or dues? to own
So break even in 6 or 7 years? How could you not break even at some point?? Eventually the purchase cost drops out of the equation and ownership becomes an asset. Your dues or fees plus contracting labor outside and discounted storage will always be cheaper than renting and paying a marina. What am i missing?
Click to expand...

Lessee...

$12,000 per year for dockage and storage....holy cow...

I pay $18,000/year for my waterfront home (2800 sf) incl. property taxes, 55' of deep water Gulf access waterfront, and have the convenience of having my boat floating in my backyard. And, of course, it's all tax deductible...

I cannot in any way- see the sense of someone that boats close to where they reside to do anything other than purchasing a waterfront home. It just doesn't make financial sense.

Of course, if you need to live an hour from the water for work, school, etc. it's a different story. But for the guys that live fifteen minutes from their marina... WHY??
 
tobnpr said:
Lessee...

$12,000 per year for dockage and storage....holy cow...

that was a conservative number, I added my bills last year and it was more!

I pay $18,000/year for my waterfront home (2800 sf) incl. property taxes, 55' of deep water Gulf access waterfront, and have the convenience of having my boat floating in my backyard. And, of course, it's all tax deductible...

Including mortgage payment?

I cannot in any way- see the sense of someone that boats close to where they reside to do anything other than purchasing a waterfront home. It just doesn't make financial sense.

Sure it does, if the waterfront property is relative. Otherwise everyone would own it. We have relatively little waterfront in NE.

Of course, if you need to live an hour from the water for work, school, etc. it's a different story. But for the guys that live fifteen minutes from their marina... WHY??
Click to expand...

HA! :smt043:smt043 Have you always lived in Florida?

It is certainly different in other parts of the country. I live in a large home with 85' of frontage on a cove that leads (limited clearance by train bridge) to Long Island Sound (our primary boating grounds) and my taxes are close to $10K a year. I do keep a boat here but a smaller one. Most comparable homes for purchase that have direct access and a deep water dock would likely be $Millions to purchase. Just the property alone would exceed a million and I would not want to see the tax bill. Too rich for my blood! It cost $75k just to permit and build a dock at my house for a center console.

My wife and I are both "stuck" on the CT shoreline by business, so moving is not an option. And we consider ourselves fortunate! :smt038 or :smt021 :huh:
 
Last edited:
tobnpr said:
Lessee...

$12,000 per year for dockage and storage....holy cow...

I pay $18,000/year for my waterfront home (2800 sf) incl. property taxes, 55' of deep water Gulf access waterfront, and have the convenience of having my boat floating in my backyard. And, of course, it's all tax deductible...

I cannot in any way- see the sense of someone that boats close to where they reside to do anything other than purchasing a waterfront home. It just doesn't make financial sense.

Of course, if you need to live an hour from the water for work, school, etc. it's a different story. But for the guys that live fifteen minutes from their marina... WHY??
Click to expand...

So you can get away from the house for a while, if you know what I mean - priceless!
 
One issue that has come up in discussions with friends is the concept of "marina comraderie" that doesn't exist in the waterfront home. I'd be interested to hear what you guys think about that.

Most marinas have a rule that you cannot post a FOR SALE sign on your boat, even if they don't house a brokerage (check the fine print of your contract). OR, they let you post a sign but you have to fork over 10% if you make a sale. At first glance, it seems sort of MAFIA but it's their property and you have to play by their rules.

Personally, I'd much prefer to have my boat docked neatly behind my house. Unless your situation specifically calls for it, renting makes little sense but we all do it. As long as I've owned a boat, I've been paying rent. 12 years and tens of thousands of dollars later, I have nothing to show for it but fond memories!
 
Last edited:
We spend a few nights a year in neighboring marinas just so we don't have to go home late at night following a dinner party. Usually there is some local gossip which reminds us why the piece and quiet of a private slip is better than having a disagreeable neighbor 5' away from you who enjoys listening to music that is not your style. We get all the fellowship we want in a month of cruising on Lake Michigan and enjoy the solitude when we are home. Property taxes are limited in Michigan so our taxes are less than slip fees. The guy who buys our house next will get rebased for taxes and it won't be pretty.
 
sbw1 said:
We spend a few nights a year in neighboring marinas just so we don't have to go home late at night following a dinner party. Usually there is some local gossip which reminds us why the piece and quiet of a private slip is better than having a disagreeable neighbor 5' away from you who enjoys listening to music that is not your style. We get all the fellowship we want in a month of cruising on Lake Michigan and enjoy the solitude when we are home. Property taxes are limited in Michigan so our taxes are less than slip fees. The guy who buys our house next will get rebased for taxes and it won't be pretty.
Click to expand...


Thats also a good point, there are folks that we didnt get along with also. Our solitude is usually when we leave the dock and drop a hook somewhere. But a lot of those friends were not made at one marina and we re-visit during rafting functions or meets at transient marinas and the occasional winter function (boat shows). Still a good point.
Taxes got us too when we bought our house 7 years ago and I cant even get a large boat in here but I do love the water. We have actually taken the CC to the marina as transport or launch - just like the rich folk :lol:
 
Back to ownership of a house/condo on water. I have a house on Mobile Bay about 3 miles from Ft Morgan and the pass into the Gulf. I live 4 hours away and don't mind that time frame for having my boats on lifts. The southern weather means winterization is usually not an issue. And owning the property means that eventually it will be paid for and or can be sold for at least break even or hopefully make money. Due to the current economy, there are several nice 2 BR condos in a complex next door that come with a boat slip for $210K to $280. That means that these could be bought for about $2000 a month including taxes and maybe even the property fees. This is not far off from some of you are paying for a slip alone and with this money, you get a condo too!

Top Listings
Click to View Details
MLS Number: 159134List Price: $285,000Bedrooms: 2Baths: 2Half Baths: 0Unit #: 2213Complex Name or Community: Navy Cove HarborApx Living Area: 1060Area: Fort MorganSave Listing View Details View Photos A (Active)
Additional Listings
Click to View Details
MLS Number: 159223List Price: $218,900Bedrooms: 2Baths: 2Half Baths: 0Unit #: 1202Complex Name or Community: Navy Cove HarborApx Living Area: 1270Area: Gulf Shores-S ICW
icon_idx.gif
Save Listing View Details View Photos U (Under Contract)
Click to View Details
MLS Number: 157691List Price: $210,000Bedrooms: 2Baths: 2Half Baths: 0Unit #: 2107Complex Name or Community: Navy Cove HarborApx Living Area: 1060Area: Gulf Shores-S ICW
icon_idx.gif
Save Listing View Details View Photos A (Active)
Click to View Details
MLS Number: 143697List Price: $359,000Bedrooms: 3Baths: 2Half Baths: 0Unit #: 1401Complex Name or Community: Navy Cove HarborApx Living Area: 1236Area: Fort Morgan
icon_idx.gif
Save Listing View Details View Photos A (Active)
 
Last edited:
Russ Calasant said:
JVM225 - thanks for your insight. Sounds like you got a great deal, you would never find any waterfront property like that here and certainly not for that price.

I think I just need to confirm the numbers and I liked an earlier idea about leasing for a year first if possible.
Click to expand...

It's a very unique situation for here too. Thats why they go fast when they come up.
Generally the canals are located behind the houses in residential areas. This is one of just a couple of spots in the area where the canal is across the street from the house. Over the years, some of the houses sold off the piece across the street for one reason or another. They aren't buildable lots, thats why they don't command a crazy price, but they're great for docking a boat.
Mine is 50' long by 20' wide. The 50' is along the canal. The canal is not wide enough to allow backing in against the bulkhead, but perfect for tieing up along side. You can even tie up a smaller boat alongside yours if you really want.
Plenty of room on the property for a shed to store stuff in, and a nice picnic table to hang out at.
 
Last edited:
You must log in or register to reply here.

Forum statistics

Threads
113,253
Messages
1,429,373
Members
61,133
Latest member
Willbeckett
Back
Top