slip ownership pros and cons

[Wayne Bostow]

Around where I live, Clear Lake/Galveston Texas, one can purchase slips for boat docking. My guess is that significant numbers of buyers are shocked to find maintenance fees comparable to slip rentals elsewhere in addition to real estate taxes and who knows what other traps.

Are these done elsewhere in the U.S. or around the world? It seems one "owns" "flooded" property. You become part of a condo-style "association".

On the plus side, it would seem that for say $10K one can be shielded from the vicissitudes of renting from a Special Purpose Acquisition Company if not from the local appraisal district.

I've been a viewer to Cruiser's Forum for some years and am surprised not to see discussions on this topic. Has anyone "owned" in this fashion? What are your thoughts and advice?

[Shrew]

We've rented slips in 'Dockominiums' from owners in several locations in New England. The facilities are nice. The two we were at both had a clubhouse with a full kitchen and the bathrooms and showers were large and clean.

We did the math on many occasions. In both occasions were were looking at financing the purchase. The mortgage, interest, taxes, and HOA fees always pushed the ROI out too far to seem worth it. Then again, we weren't looking at $10K slips.

[Kettlewell]

The bottom line for me is that you don't really own anything except for the rights to use a space between some pilings. Seems like a lot to pay for that privilege when I don't want to be tied to one place and would prefer to rent a mooring and then be able to move to a different harbor or region when I feel like it, or when the managers of the current spot change the rules or don't keep up with the maintenance.

[mvweebles]

San Francisco's Pier 39 marina has long term leases - about halfway through a 50 year lease. I have had the slip rented for quite a few years and make around $75/month above the holding costs. Slip cost for 40'x14' me $8k as I recall. Not an investment grade gig, but I'm assured a slip in an area where slips can have long waits.

I will not be returning to SF so balance of slip is for sale if anyone has interest. PM me. It's an upwind slip.

[Pendragon35]

We've owned a dock at Anchorage Marina in Baltimore, MD, for almost 10 years.
Advantages -
1. We are now more than breaking even on purchase price vs. rental
2. Our marina is a coop, so we have a vote
3. We could rent the slip if we wanted to move the boat
Disadvantages -
1. Fees. We currently have a $200/quarter maintenance fee over and above regular maintenance fees of a bout $2,400 per year. This is for rebuilding the docks.
2. The possibility of renting the slip goes up and down
3. The value of the slips in terms of potential sale price has gone down
4. While we could move, it would be difficult

[Jammer]

In the Twin Cities metro area, the best slips must be purchased, and cost close to $100,000. Prices are driven up by the fact that they are on the St. Croix River, where no more slips can ever be built without an act of Congress (literally).


Nationwide, these arrangements vary widely in how they are set up, depending on state law and other factors. It is important to understand what you're actually getting. A good attorney may help.

[Sailer_Med]

Here in Catalonia the slips are long term leases paid in advance owned by the adjutament de catalonia (da gubment). So you buy the right of use for many years but don't own the property.

They aren't making more slips here so we choose to "buy" in order to have a location for the boat exactly where we want it at a defined price. There's annual maintenance fees on top. We can rent it to some one else but demand fluctuates and dealing with boaters is a pain.