Is Now a Good Time to Buy a Gulf Coast Slip ?

[sailorcrat]

What effect, if any, has the gulf leak had on the prices of slips and beachfront real estate in affected areas?

I wouldn't mind picking up a befouled slip as long-term investment if there are deals to be had.

[Jim D]

where do you find slips for sale, as opposed to slips for lease? Once you own one, is it a condo style arrangement, where you pay a general maintenance fee, and someone has the job of being manager?

~

[sailorcrat]

Originally Posted by Jim D

where do you find slips for sale, as opposed to slips for lease? Once you own one, is it a condo style arrangement, where you pay a general maintenance fee, and someone has the job of being manager?

~

Never having owned a slip, my knowledge is limited. That said, I've read about lots of different arrangements, ranging from long-term leases to fee-simple title over the patch of water that the slip occupies. A lot seems to depend on local laws and whether the waterfront is administered by the Army corps of engineers.

Condo-type fees will depend on whether the slip is part of a marina or a free-standing development.

[djmarchand]

Since it would be a very rare slip where you owned the pilings, pier and dock on all four sides, almost all boat slips are owned condominium style. You own the space (generally above the water as the water and its seabed are owned by the state and you have an explicit or implied lease on it) for your slip.

You own the dock, pilings, parking area, club house, etc in common with all of the other slip owners. The common areas are managed by the associatation who you pay a fee to just like a condo. Generally that fee covers maintenance of the dock and other common facilities.

Sometimes you have to pay a special assesment to the association for replacement of your dock and pilings just like you may have to pay a special assesment for a roof replacement on your condo.

David

[DaveOnCudjoe]

Does the concept of profiting from anothers misfortune trouble anyone but me? This is a natural disaster, not the result of someone gambling and overextending themselves. Credit default swaps, mortguage backed securities, ponzi schemes, where does it all end? Attempts to maximise profits is what led to this disaster in the first place. It's sad to see the carpetbaggers and ambulance chasers moving in as if we don't have enough to worry about with the coming huricane season and this mess to clean up. Don't expect a warm welcome from those of us who call this area home. Dave

[sailorcrat]

Originally Posted by DaveOnCudjoe

Does the concept of profiting from anothers misfortune trouble anyone but me? This is a natural disaster, not the result of someone gambling and overextending themselves. Credit default swaps, mortguage backed securities, ponzi schemes, where does it all end? Attempts to maximise profits is what led to this disaster in the first place. It's sad to see the carpetbaggers and ambulance chasers moving in as if we don't have enough to worry about with the coming huricane season and this mess to clean up. Don't expect a warm welcome from those of us who call this area home. Dave

Carpet bagger? Ambulance chaser? Any more names you'd like to toss out?



I'm just looking for a good deal on a place to park my boat. Frugality is not a sin.

[S/V Illusion]

Originally Posted by sailorcrat

Carpet bagger? Ambulance chaser? Any more names you'd like to toss out?



I'm just looking for a good deal on a place to park my boat. Frugality is not a sin.

Despite the current hysteria, I think most people realize this is a short-term problem. The spill will eventually be stopped and cleaned up so why would you think there are any "deals" to be had? If you could be accused of anything, it would be taking advantage of some idiot who thinks the world is ending because of this.

A year from now, it will be a bad memory

[sailorcrat]

Originally Posted by S/V Illusion

Despite the current hysteria, I think most people realize this is a short-term problem. The spill will eventually be stopped and cleaned up so why would you think there are any "deals" to be had? If you could be accused of anything, it would be taking advantage of some idiot who thinks the world is ending because of this.

A year from now, it will be a bad memory

My experience has been in other asset classes, where panic selling over rumors is common.

This well failure isn't a rumor, and it's not going to end any time soon. Parts of the gulf are going to be miserable for a long time. You're right that the region will ultimately recover, but I do my best to look for attractive entry points.

If having an enormous swathe of beachfront swamped in oil doesn't drive down property values in the short term, I don't know what would. Forgive me if you don't think that would result in "deals."

[S/V Illusion]

Originally Posted by sailorcrat

My experience has been in other asset classes, where panic selling over rumors is common.

This well failure isn't a rumor, and it's not going to end any time soon. Parts of the gulf are going to be miserable for a long time. You're right that the region will ultimately recover, but I do my best to look for attractive entry points.

If having an enormous swathe of beachfront swamped in oil doesn't drive down property values in the short term, I don't know what would. Forgive me if you don't think that would result in "deals."

Sounds like to already made up your mind....
Well, with that logic, every speculator erred when they ran away rather than scoop up all the 9th Ward New Orleans real estate. The proof is in the result - let us know if you find a depression in that market.

[sailorcrat]

Originally Posted by S/V Illusion

Sounds like to already made up your mind....
Well, with that logic, every speculator erred when they ran away rather than scoop up all the 9th Ward New Orleans real estate. The proof is in the result - let us know if you find a depression in that market.

I haven't made up my mind because I don't know anything about real estate in the area. That's why I posted here. It looks like the post was a wasted effort and I'll need to talk to brokers directly to get myself up to speed.


Also, your 9th ward analogy isn't accurate. That part of NOLA wasn't a desirable place to live before the storm, and no one should be surprised that it isn't a booming center of development now that much of the debris has been cleared away.

[Christian Van H]

Originally Posted by DaveOnCudjoe

Does the concept of profiting from anothers misfortune trouble anyone but me? This is a natural disaster, not the result of someone gambling and overextending themselves.

Just to be clear; this is a very UN-NATURAL disaster. It took several man made F-ups to get us where we are today.

BTW, Florida real estate has already tanked unbelievably. There are huge savings to be had without praying on this incredible, criminal, screw-up.

[denverd0n]

Originally Posted by DaveOnCudjoe

Does the concept of profiting from anothers misfortune trouble anyone but me?

Profiting from others misfortune? No, what sailorcrat is hoping to do is profit from the irrational hysteria of others. Those with a level head will realize that this, too, shall pass. They won't be in a panic to sell, they won't suffer any long-term misfortune, and they won't be profited from.

On the other hand, when this sort of thing happens, there are always a few who go off half-cocked, foolishly over-react, and suddenly think that they have to SELL, SELL, SELL!!!

If sailorcrat is in a position to get a good deal because others are being foolish, more power to him.

Sailorcrat, I haven't seen any noticeable depression in prices as of yet. On the other hand, at least here in the Tampa Bay area, the prices are already so depressed that they may not go down that much more (if at all) as a result of this. There are lots of websites that list waterfront property all around the gulf. Many of these also list slips for sale. As mentioned, dock space is almost always sold as a condominium type of arrangement--often referred to as a "dockominium."

Another option is a waterfront condo or home with its own dock. Quite a few of these are available around here. Google is your friend.

Good luck to you.

[MarkJ]

Now is the perfect time to buy realestate on the oil soaked gulf, marina berths etc. And I'm not even from the USA.

If you would like to know how negative 'normal' folks are have a look at a couple of threads on here during the financial 'crisis'. Those doomsayers who sold the lot would have lost the lot. The purchasers during that time are the winners now and in the future.

I always say: Buy real estate when all the newspapers say: Don't buy!

There will always be someone who has to sell for other reasons, and they need the money. There will be far fewer buyers in the market. The seller may very well need your low offer to be able to accomplish his own aims. So don't worry about perceived profiteering.

If you have some money and have wanted a nice piece of land/marina berth in that area it may now just let you squeek into a better location, a real charmer of a spot which you will enjoy to the max, as well as being a sound investment for your future plans or your children.


Mark

[denverd0n]

Originally Posted by MarkJ

I always say: Buy real estate when all the newspapers say: Don't buy!

To paraphrase Warren Buffett, be calm when everyone else panics, panic when everyone else seems too calm.

(And if you are going to take investment advice from anyone, Buffett is the one whose advice you should take.)

[s/v Beth]

I have benifited from a number of Real Estate ups and downs...I have recently been looking at slips and waterfront on the east side- because it has been impacted so severly by the current recession. My feeling (and only worth the free advice you are getting) is that prices will reach a low ebb around this time next year IF the economy stays down.
BTW- I have no problems carefully investing the money I have saved. And I am just a regular joe- not a carpetbagger. I find it interesting that current residents think that others buying thier land is somehow wrong. If you feel that way, do not put it up for sale...