I would like your opinion on whether or not it makes sence to buy a slip. I live in Charleston S.C.and the slip would be on Charleston harbor. Their asking $80,000 for a 35'slip. What are the pros and cons.
- Status
At present I pay about 1800 dollars
per year for slip fees and winter haul out and storage and spring launch. Interest cost aside 80,000 dollars would pay for about forty years of slip fees. Since I am 67 years old and my kids don't want to own a slip I won't buy. Will you live in Charleston for a long time? If you choose to sell may you sell on the open market? If in the future you can sell on the open market do you have confidence that the marina will be well maintained? Is the type of ownership condominium or some other type of title? Check with your accountant and find out if the interest expense is tax deductable. If you can show that you live aboard for a period each year will that make a difference. Does you boats have cooking facilities and toilet facilities? That will qualify it as a second home. What manner of mortgage can you get and at what interest rate? These are all questions that you need answers to before you commit to a purchase.
per year for slip fees and winter haul out and storage and spring launch. Interest cost aside 80,000 dollars would pay for about forty years of slip fees. Since I am 67 years old and my kids don't want to own a slip I won't buy. Will you live in Charleston for a long time? If you choose to sell may you sell on the open market? If in the future you can sell on the open market do you have confidence that the marina will be well maintained? Is the type of ownership condominium or some other type of title? Check with your accountant and find out if the interest expense is tax deductable. If you can show that you live aboard for a period each year will that make a difference. Does you boats have cooking facilities and toilet facilities? That will qualify it as a second home. What manner of mortgage can you get and at what interest rate? These are all questions that you need answers to before you commit to a purchase.
It's like buying a condo
Condominium Associations can have problems so that's one thing you want to check out. Find out if the slip owners get along with the "management" or if there's in-house fighting and power struggles or people wanting to steer the association in different directions. If things are stable and there's general agreement on the direction the association should be going then that's a good thing. The next thing to be sure to look at is if there is adequate reserve capital to meet the scheduled dock replacements and that the estimates to do the replacements are sound. If they underestimate inflation, permiting, and future construction costs then they could be undercapitalized - not a good thing. Lessons learned: I bought one condo slip and right after I bought it they found out the capital reserve fund (dock replacement) was underfunded and jacked up the association fees significantly. Otherwise, if population growth and the desire for waterfront property outpaces creation of new waterfront then appreciation should be above inflation. With the forcasts for more and stronger hurricanes in the years ahead the assumption that waterfront will be in demand isn't necessarily a slam dunk.
Condominium Associations can have problems so that's one thing you want to check out. Find out if the slip owners get along with the "management" or if there's in-house fighting and power struggles or people wanting to steer the association in different directions. If things are stable and there's general agreement on the direction the association should be going then that's a good thing. The next thing to be sure to look at is if there is adequate reserve capital to meet the scheduled dock replacements and that the estimates to do the replacements are sound. If they underestimate inflation, permiting, and future construction costs then they could be undercapitalized - not a good thing. Lessons learned: I bought one condo slip and right after I bought it they found out the capital reserve fund (dock replacement) was underfunded and jacked up the association fees significantly. Otherwise, if population growth and the desire for waterfront property outpaces creation of new waterfront then appreciation should be above inflation. With the forcasts for more and stronger hurricanes in the years ahead the assumption that waterfront will be in demand isn't necessarily a slam dunk.
If you buy...
...make sure power and maintenance is included. Else it becomes an additional cost.
...make sure power and maintenance is included. Else it becomes an additional cost.
A stretch
I'm no tax accountant, but it strikes me as a stretch to deduct a small body of water when you're already deducting the boat itself under a second mortgage. A much larger problem is resale. The market has to be pretty thin for an $80,000 slip.
I'm no tax accountant, but it strikes me as a stretch to deduct a small body of water when you're already deducting the boat itself under a second mortgage. A much larger problem is resale. The market has to be pretty thin for an $80,000 slip.
ROSS makes a great deal of sense...
$80,000. as opposed to $1800./annually also ties one down to a single site. Its nice to be able to have versatility in boat lodging instead of being "tied down".
$80,000. as opposed to $1800./annually also ties one down to a single site. Its nice to be able to have versatility in boat lodging instead of being "tied down".
Slip fees in Charleston
The average cost per foot here in Charleston is $11.00. My 30 footer cost $345.00 per month with a one year contract. More if I go monthly. Thats $4140.00 per year.
The average cost per foot here in Charleston is $11.00. My 30 footer cost $345.00 per month with a one year contract. More if I go monthly. Thats $4140.00 per year.
What are you currently paying now?
Do a little research into the market as far as how are these slip properties appreciating and marketing. Find a financing avenue for this type of property and run a 10 year value analysis based on the data that you have gathered. you will have to make some assumptions like price of property 10 years from now, your current slip payments adjusted for increases over the next 10 yrs. The cost of financing over the next 10 years plus maintenance fees and the opportunity cost of your down payments. Total the figures and you will have an indication on wether it is good deal or not. It seems to me that with Marinas dissapearing in Metropolitan areas that you may have to secure at all cost your piece of property but that does not necessarily translate into hihger market prices as it is my feeling a lot of people will give up boating and go to RVs. I do not think you will loose your money though. There is alawys an alternative, buy yourselve a home in a deep water canal with access to the bay and maximize the return on your oinvestment.
Do a little research into the market as far as how are these slip properties appreciating and marketing. Find a financing avenue for this type of property and run a 10 year value analysis based on the data that you have gathered. you will have to make some assumptions like price of property 10 years from now, your current slip payments adjusted for increases over the next 10 yrs. The cost of financing over the next 10 years plus maintenance fees and the opportunity cost of your down payments. Total the figures and you will have an indication on wether it is good deal or not. It seems to me that with Marinas dissapearing in Metropolitan areas that you may have to secure at all cost your piece of property but that does not necessarily translate into hihger market prices as it is my feeling a lot of people will give up boating and go to RVs. I do not think you will loose your money though. There is alawys an alternative, buy yourselve a home in a deep water canal with access to the bay and maximize the return on your oinvestment.
ONLY IF CONDO IS ATTACHED
I have owned my boat slip since about 1992. It came with a condo attached for 75,000 dollars. Best investment I have made other than waterfront lots. I have rented the condo and lived in it twice. I think I would look for a deal than included a condo that could generate some rent. I currently get 895 per month for mine. Condo fee is 85 so 810 dollars cash flow and my boat is docked for free now for 14 years so far. Worth considering even though prices are higher now.
I have owned my boat slip since about 1992. It came with a condo attached for 75,000 dollars. Best investment I have made other than waterfront lots. I have rented the condo and lived in it twice. I think I would look for a deal than included a condo that could generate some rent. I currently get 895 per month for mine. Condo fee is 85 so 810 dollars cash flow and my boat is docked for free now for 14 years so far. Worth considering even though prices are higher now.
Go to a mortgage
calculator page on the net. I just did a thirty year 7 percent mortgage for 80k will require a monthly payment of about $560. If you can get a loan at that rate for that period on a right to use a space. I don't know if the slip is defined by the structure surrounding it or by its geographical location in the water. Should a storm distroy the marina how do you recover your slip?
calculator page on the net. I just did a thirty year 7 percent mortgage for 80k will require a monthly payment of about $560. If you can get a loan at that rate for that period on a right to use a space. I don't know if the slip is defined by the structure surrounding it or by its geographical location in the water. Should a storm distroy the marina how do you recover your slip?
Slip Purchase - Bad Investment?
Seems to me a bit risky given the number of hurricanes the southeast part of our country gets on an annual basis. Speaking as the real estate agent that I am, I would recommend investing the 80K in property that you can both use and rent, and higher rates than I imagine you could charge for a slip. At the end of the day you are going to do what is right for you, your family and your particular circumstances. David
Seems to me a bit risky given the number of hurricanes the southeast part of our country gets on an annual basis. Speaking as the real estate agent that I am, I would recommend investing the 80K in property that you can both use and rent, and higher rates than I imagine you could charge for a slip. At the end of the day you are going to do what is right for you, your family and your particular circumstances. David
Can Be A Good Investment
I own a 40 foot dockominium in CT. A great investment 4 years ago, under $20,000 The association is financially well off, and has a lot of money in the bank for repairs/replacements. Here in Florida, they are planning on selling 40 ft slips in my marina foe $120,000. Now that is a lot of money! Don't forget there are still monthly fees, insurance, etc,. and I do not believe you can mortgage a dockominium. There are many issues you need to consider, the 1st is of course the cost, then there is the ever diminishing supply of public marinas, the yearly operating costs, the reality of escalating or diminishing value, etc. Heck, I might move back to the Northeast, buy a place in Vermont, and drive to my dock in CT if prices continue to inflate in Florida If you need more info from an owner, send me an e-mail at burns4200@bellsouth.net If you need more
I own a 40 foot dockominium in CT. A great investment 4 years ago, under $20,000 The association is financially well off, and has a lot of money in the bank for repairs/replacements. Here in Florida, they are planning on selling 40 ft slips in my marina foe $120,000. Now that is a lot of money! Don't forget there are still monthly fees, insurance, etc,. and I do not believe you can mortgage a dockominium. There are many issues you need to consider, the 1st is of course the cost, then there is the ever diminishing supply of public marinas, the yearly operating costs, the reality of escalating or diminishing value, etc. Heck, I might move back to the Northeast, buy a place in Vermont, and drive to my dock in CT if prices continue to inflate in Florida If you need more info from an owner, send me an e-mail at burns4200@bellsouth.net If you need more
You haven't said why....
You haven't said why you won't join a Yacht club, which you easily could if you can afford an $80,000 slip. Here in greater Vancouver if you are moored in a yacht club, the savings can be significant over the years even including your "joining" fees.
You haven't said why you won't join a Yacht club, which you easily could if you can afford an $80,000 slip. Here in greater Vancouver if you are moored in a yacht club, the savings can be significant over the years even including your "joining" fees.
Yacth Club ?????
To rsn48. I don't know anything about yacth clubs. Whats the advatages/benifits.
To rsn48. I don't know anything about yacth clubs. Whats the advatages/benifits.
80,000 earning 5%.....
..... is $4000 per year. It may pay to keep the cash and spend the earnings on slip rental. Then consider shrinking availability rate increases lack of appreciation on a cash asset based on that, the answer is........... up to you Good luck Jeff
..... is $4000 per year. It may pay to keep the cash and spend the earnings on slip rental. Then consider shrinking availability rate increases lack of appreciation on a cash asset based on that, the answer is........... up to you Good luck Jeff
Yacht Club benefits
There are two different yacht clubs: 1) expensive ones; 2) Cheap ones. An expensive yacht club in Vancouver, BC would be the Royal Vancouver Yacht Club. A fancy club house with great amenities, $40,000 to join with annual dues, and a 26 year waiting list for boat mooring. It also owns some great "out stations" which are freebies for members to moor their boats. Then there are cheaper clubs to join and belong to; for example, a club that is only a couple of blocks from my home is called the Deep Cove Yacht club. Its $4,000 to join with modest annual dues. Mooring your boat there is about half the cost of mooring your boat at a local marina (non-club) so I would save about $1200 a year - so I would recoup the $4,000 in no time. It has about a two year waiting list for boat moorings. Also another important factor can be reciprocal mooring agreements with other clubs, where you can moor for free for a couple of days, or a nominal fee. In the link below, I have taken the reciprocal agreement from the Deep Cove Yacht site as an example for you.
There are two different yacht clubs: 1) expensive ones; 2) Cheap ones. An expensive yacht club in Vancouver, BC would be the Royal Vancouver Yacht Club. A fancy club house with great amenities, $40,000 to join with annual dues, and a 26 year waiting list for boat mooring. It also owns some great "out stations" which are freebies for members to moor their boats. Then there are cheaper clubs to join and belong to; for example, a club that is only a couple of blocks from my home is called the Deep Cove Yacht club. Its $4,000 to join with modest annual dues. Mooring your boat there is about half the cost of mooring your boat at a local marina (non-club) so I would save about $1200 a year - so I would recoup the $4,000 in no time. It has about a two year waiting list for boat moorings. Also another important factor can be reciprocal mooring agreements with other clubs, where you can moor for free for a couple of days, or a nominal fee. In the link below, I have taken the reciprocal agreement from the Deep Cove Yacht site as an example for you.
Thank You
I would like to thank everyone for taking the time to share there info with me. You have been a tremendous help. I will let you know what I decide.
I would like to thank everyone for taking the time to share there info with me. You have been a tremendous help. I will let you know what I decide.
I rent a slip in a dockominium
Jim, I rent a slip in Portofino Harbour here in Clear Lake Shores. It's a nice marina but there are no condominiums in the marina so it's just slips. Most of the slips are owned by one individual who bought them when the marina went bankrupt back in the late '80's. Every now and then one comes up for sale. I believe the price was $20,000 for 45' slip the last I checked. I'm in the financial services industry and I would strongly suggest that you invest the $80,000 and use some of the return to pay for a slip. The risks involved in owning a slip in Charleston outweigh any benefit in my opinion. One hurricane like Hugo and you could be in litigation for the rest of your life without a slip to put your new boat in. Yeah that's right if the slip/marina is gone so is your boat.
Tom s/v At Last
Jim, I rent a slip in Portofino Harbour here in Clear Lake Shores. It's a nice marina but there are no condominiums in the marina so it's just slips. Most of the slips are owned by one individual who bought them when the marina went bankrupt back in the late '80's. Every now and then one comes up for sale. I believe the price was $20,000 for 45' slip the last I checked. I'm in the financial services industry and I would strongly suggest that you invest the $80,000 and use some of the return to pay for a slip. The risks involved in owning a slip in Charleston outweigh any benefit in my opinion. One hurricane like Hugo and you could be in litigation for the rest of your life without a slip to put your new boat in. Yeah that's right if the slip/marina is gone so is your boat.
Tom s/v At Last- Status