Boat slips

[Ross_t]

Not sure where to post this, but I'm toying with the idea of buying a boat slip. Looking for feedback on whether this is a good idea or not. Fees above the purchase price? Good area, not so good areas, etc. What's your experience? Bad investment?

Thanks

[NH_boater]

If you are think in terms of quality of boating experience or leaving it to the kids, it could be a good decision. It terms of purely a 'financial investment', I think it is probably a very poor one for most people.

You can rent a slip for a couple decades for the same financial outlay of a purchase. If you rented and invested the cash you would otherwise invest into a buying a slip into a S&P index fund or similar performer, my bet is you are way ahead of the guy who bought a slip.

Some might claim it was a great investment for them because of what their slip is worth today. They would need to compare what an equal investment in the right financial vehicle would also be worth today before they declare victory.

The answer lies in your intentions; experience and convenience or financial performance. Just my opinion.

[VitaBene]

Do a quick forum search. This topic has been discussed at length, with many good arguments pro and con.

[ishoot308]

Originally Posted by Ross_t

Not sure where to post this, but I'm toying with the idea of buying a boat slip. Looking for feedback on whether this is a good idea or not. Fees above the purchase price? Good area, not so good areas, etc. What's your experience? Bad investment?

Thanks

We looked at buying but just couldn't make the numbers work. Much like NH_Boater has stated, we came to the conclusion we would be better off investing the $50,000.00 - $70,000.00 and use the proceeds from the investment to put towards a yearly rental. Thus far, it has worked out well.

Good luck!

Dan

[pjard]

This is a cut n' paste from another thread....

In case anyone is interested, slip F-6 sold today at auction for $37,000.00 I keep thinking about buying a slip but even at $37K it's still better to rent. Here's my logic....cost of money for $37K is $1,500, Taxes to Gilford $1,200, Association Fees $1,500...total cost to own is $4,200. Rents at MVYC including winter storage are $2,800 to $4,000....cheaper to rent! Someone please find the flaw in my logic...really.

[codeman671]

Originally Posted by pjard

This is a cut n' paste from another thread....

In case anyone is interested, slip F-6 sold today at auction for $37,000.00 I keep thinking about buying a slip but even at $37K it's still better to rent. Here's my logic....cost of money for $37K is $1,500, Taxes to Gilford $1,200, Association Fees $1,500...total cost to own is $4,200. Rents at MVYC including winter storage are $2,800 to $4,000....cheaper to rent! Someone please find the flaw in my logic...really.

The only logic against your example would be that in 10-15 years if you decide to sell it you can actually get something back.
Monies paid in rentals are gone. It is my understanding that there are also clubs with fees far less than $1500.

$37k is pretty cheap for a slip.
I ran the numbers in the past on $50-60k slips and they were obviously further from making sense which is why I chose against buying.

[TiltonBB]

The taxes and the interest are deductible. The appreciation is also not figured into your calculations. I own a slip at MVYC, although I don't use it and rent it out now, I do not plan to sell it.

I bought it in 1996 and it is worth more than double what I paid for it.

In addition to theappreciation and tax deductions you will have the security of knowing where your boat will be every year and you will have some influence about how your yacht club is run.

[chasedawg]

Originally Posted by Ross_t

Not sure where to post this, but I'm toying with the idea of buying a boat slip. Looking for feedback on whether this is a good idea or not. Fees above the purchase price? Good area, not so good areas, etc. What's your experience? Bad investment?

Thanks

Great investment! But depends where you buy. We bought our slip and our taxes and fees are less than $500 per year. That's it. No rental fees. Yet our slip value as more than doubled.

[Ross_t]

A good investment to me would be 1) have some fun, get more use out of my boat, 2) in 10 years or so sell it without too much hassle and see some appreciation in value.
But I guess my question should have been: is slip ownership problematic with neighbor issues? Club issues? politics? reasonable club rules?

[codeman671]

Originally Posted by Ross_t

A good investment to me would be 1) have some fun, get more use out of my boat, 2) in 10 years or so sell it without too much hassle and see some appreciation in value.
But I guess my question should have been: is slip ownership problematic with neighbor issues? Club issues? politics? reasonable club rules?

What part of the lake are you looking to be on and any specific clubs?

I would not count on appreciation unless you are really stealing something.
Many people have lost their shirts on slips in the last 10 years.

[secondcurve]

Originally Posted by codeman671

What part of the lake are you looking to be on and any specific clubs?

I would not count on appreciation unless you are really stealing something.
Many people have lost their shirts on slips in the last 10 years.

Agreed. When interest rates rise slips have the potential to get hurt badly, as do most assets. That being said, at $37,000 with someone who is committed to the area and enjoys boating the numbers probably start to make sense.

[Ross_t]

Originally Posted by codeman671

What part of the lake are you looking to be on and any specific clubs?

I would not count on appreciation unless you are really stealing something.
Many people have lost their shirts on slips in the last 10 years.

Meredith would be best, but open to any area.

After some checking I see renting for a season might be the way to go. (unless a really good purchase deal surfaces.)

Thanks
Ross