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Old 06-28-2010, 08:32 PM   #16
secondcurve
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Quote:
Originally Posted by Lakesrider View Post
Oky Doky.
Maybe my first reply was a bit on the snide side. Not completely meant to be rude. So I apologize for that and being taken so.

I guess then we need to look at the original post. The person is interested in buying/financing a slip. He must have a reason for wanting to buy. Just as I did. If he does his research, as I did, he will make the decision to buy or not to buy. Buying does not always have to be about smart or not. It is about how he/she will use or not use the slip. If they are going to use it regularly it is a good investment to them. If they enjoy it...good investment. Have friends and family come to visit and enjoy the lake....good investment. If it is going to sit there with no use...bad investment. Thinking you are going to make a real estate bonanza when you go to sell....bad investment. Investment is not always about money. This is why I bought my slip. My investment is in how much I enjoy my marina, my boat, not having to trailer, etc. BTW He did not ask our opinion on whether or not we would buy. I bought my first slip years ago. The price went up when I sold the first one. Bad decision? Not for me unless you call making over $30K a bad decision. I bought my present slip 5 years ago, no intent to sell unless I can get my asking price. I have it and my boat in this sites classifieds before, so obviously I would sell if I did get my price. Right now I realize the market is not great. So I keep the slip. Big deal. It is all good for me. Maybe I am the greater fool. But there seem to be quite a few of us fools out there, because all of my slip mates own their slips. Hmmm...Does everyone there feel they made a bad investment? Maybe, but we all have fun with it. The poster of this thread needs ask himself the same questions I did. Is the marina a good one. Had any financial troubles? Is it a viable marina? What are the advantages and disadvantages of having your slip there? Amenities? People, noise, etc. Price to me is not an end all to owning. If you only plan to have your boat for a few years...rent. Mine is a 1986. I choose to own. I did not have to finance. Good decision for me.
I don't appreciate people suggesting that I am not sure of myself. So far I made two good choices for my slips that I use regularly and enjoy owning.
So to the original poster...If it is good for you listen to your heart, but use your brain.

Hopefully I explained myself, and you understand why I purchased, do not rent, and my apology will be accepted. I will try not to be so sarcastic in the future.

Lakesrider thanks for the clarification. If boating is your thing I can understand wanting to acquire a slip at what I believe are currently astronomical prices. However, Taking the emotions out of the equation here is a quick example of what a typical transaction looks like on Lake Winnipesaukee and why it doesn't make sense from an economic perspective: $100,000 purchase price, $20,000 down payment, 7% interest rate, 20-year amortization, $2,000 in annual property taxes and $700 in annual condo fees. Let's do the math: The monthly payment to own the slip is $617.00. Adding in the annual condo fees and property taxes the annual carrying cost for this typical slip is $10,104 and that doesn't even factor in the $20,000 down payment! The rental cost of a slip like this is running around $2,500 per year so each and every year I would have $7,604 of negative cash flow if I bought this slip. With this type of negative cash flow I am fairly certain boat slips on Winnipesaukee are going to depreciate for many years into the future. I could be wrong but I am fairly certain I am not.
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