Marina Slip Purchase

MJM · 10-04-2006, 07:33 AM

Hey gang,

I am considering purchasing a slip at a marina as an investment. I'd rent it out each season, and plan to sell it 5-10 years from now.

Anyone have any experience / thoughts on this? Things like:
- How is maintenance handled?
- Do real estate agents broker these sales?
- Will getting a mortgage be difficult?
- How is value (sale price) established?
- Property taxes?

Any thoughts, advice, things to be sure to consider, etc. would be very much appreciated.

Paugus Bay Resident · 10-04-2006, 09:14 AM

From my experience, getting a loan on a boat slip is not the easiest thing to do (there is a limited pool of lendors). Last time I checked Meredith Village and Laconia Savings were offering them. Usually 25% down with a 10 to 15 year term. Rates are around 2 to 3 points higher than a conventional mortgage.

Maintenance is usually handled by the club (through your association fees and special assesments).

Some slips are listed in MLS, but a good number of sales are private. Usually most clubs have slips for sale posted in their club house, office, etc.

They are taxed as real estate, same rate.

Like all real estate, price is determined by the market (based on size, location, club amenities, etc.). You might want to check this thread http://www.winnipesaukee.com/forums/...ead.php?t=3773
Like all real estate, location (along with amenities) plays a big part.

As rentals, it is often dificult to make the numbers work from a cash flow perspective, so appreciation is key. Since you can't depreciate land (IRS), you can usually depreciate part of the purchase as a land improvement, part on the club buildings, etc. That part of it isn't cut and dry. You really need to work the numbers to see if it makes sense.

Hope this helps.

jrc · 10-04-2006, 10:51 AM

I just contarcted to buy a slip, for my own use. Here's my findings:

- How is maintenance handled?
All buyable slips are condos. The condo association will handle most maintenance through yearly (monthly?) condo fees. Some major repairs and improvements may causse them to collect a special assessment above and beyond the regular fees. I've seen regular fees range from about $800 to $1500 a year.

- Do real estate agents broker these sales?
Yes, many are listed on MLS, check under land. Many are private sales check the classified here, at the marina web sites and the paper bulletin boards at the marinas.

- Will getting a mortgage be difficult?
I used private financing so I have no opinion.

- How is value (sale price) established?
Like all real-estate by what the market will bear. Some important points are location, slip size, marina amenities, finances, and rules (esp. pets)

- Property taxes?
The towns tax these just like everything else, on their market value.

Any thoughts, advice, things to be sure to consider, etc. would be very much appreciated

Make sure you can fit a boat in the slip. Go to the marinas and see the intangibles. The market is in transition now, be careful.

Paugus Bay Resident · 10-04-2006, 11:04 AM

John,

Not to hijack the thread, but where did you end up?

Karl

jrc · 10-04-2006, 04:46 PM

Karl, check your PM

I don't want to identify my spot to everyone. Who knows how many toes I've stepped on over the years here and who they belong to.

10-04-2006, 07:33 AM	#1
MJM Senior Member Join Date: Jul 2005 Posts: 262 Thanks: 0 Thanked 23 Times in 11 Posts	Marina Slip Purchase Hey gang, I am considering purchasing a slip at a marina as an investment. I'd rent it out each season, and plan to sell it 5-10 years from now. Anyone have any experience / thoughts on this? Things like: - How is maintenance handled? - Do real estate agents broker these sales? - Will getting a mortgage be difficult? - How is value (sale price) established? - Property taxes? Any thoughts, advice, things to be sure to consider, etc. would be very much appreciated.

10-04-2006, 09:14 AM	#2
Paugus Bay Resident Senior Member Join Date: Sep 2003 Location: Gilmanton, NH Posts: 754 Thanks: 136 Thanked 92 Times in 51 Posts	From my experience, getting a loan on a boat slip is not the easiest thing to do (there is a limited pool of lendors). Last time I checked Meredith Village and Laconia Savings were offering them. Usually 25% down with a 10 to 15 year term. Rates are around 2 to 3 points higher than a conventional mortgage. Maintenance is usually handled by the club (through your association fees and special assesments). Some slips are listed in MLS, but a good number of sales are private. Usually most clubs have slips for sale posted in their club house, office, etc. They are taxed as real estate, same rate. Like all real estate, price is determined by the market (based on size, location, club amenities, etc.). You might want to check this thread http://www.winnipesaukee.com/forums/...ead.php?t=3773 Like all real estate, location (along with amenities) plays a big part. As rentals, it is often dificult to make the numbers work from a cash flow perspective, so appreciation is key. Since you can't depreciate land (IRS), you can usually depreciate part of the purchase as a land improvement, part on the club buildings, etc. That part of it isn't cut and dry. You really need to work the numbers to see if it makes sense. Hope this helps. Last edited by Paugus Bay Resident; 10-04-2006 at 11:02 AM.

10-04-2006, 10:51 AM	#3
jrc Senior Member Join Date: Apr 2004 Location: NH Posts: 2,689 Thanks: 33 Thanked 439 Times in 249 Posts	I just contarcted to buy a slip, for my own use. Here's my findings: - How is maintenance handled? All buyable slips are condos. The condo association will handle most maintenance through yearly (monthly?) condo fees. Some major repairs and improvements may causse them to collect a special assessment above and beyond the regular fees. I've seen regular fees range from about $800 to $1500 a year. - Do real estate agents broker these sales? Yes, many are listed on MLS, check under land. Many are private sales check the classified here, at the marina web sites and the paper bulletin boards at the marinas. - Will getting a mortgage be difficult? I used private financing so I have no opinion. - How is value (sale price) established? Like all real-estate by what the market will bear. Some important points are location, slip size, marina amenities, finances, and rules (esp. pets) - Property taxes? The towns tax these just like everything else, on their market value. Any thoughts, advice, things to be sure to consider, etc. would be very much appreciated Make sure you can fit a boat in the slip. Go to the marinas and see the intangibles. The market is in transition now, be careful.

10-04-2006, 11:04 AM	#4
Paugus Bay Resident Senior Member Join Date: Sep 2003 Location: Gilmanton, NH Posts: 754 Thanks: 136 Thanked 92 Times in 51 Posts	John, Not to hijack the thread, but where did you end up? Karl

10-04-2006, 04:46 PM	#5
jrc Senior Member Join Date: Apr 2004 Location: NH Posts: 2,689 Thanks: 33 Thanked 439 Times in 249 Posts	Karl, check your PM I don't want to identify my spot to everyone. Who knows how many toes I've stepped on over the years here and who they belong to.