Is it worth buying a boat slip?

10
Jolie Greenholt asked a question: Is it worth buying a boat slip?
Asked By: Jolie Greenholt
Date created: Mon, May 10, 2021 9:09 PM
Date updated: Sat, Aug 13, 2022 2:29 AM

Content

Top best answers to the question «Is it worth buying a boat slip»

If you are settled in an area and plan to stay long enough to make your investment worthwhile, buying a boat slip could be a great choice… Buying your boat slip also protects you against rising costs if the demand for slips in your area increases.

9 other answers

Buying could allow you to build equity and your investment could increase in value. Buying your boat slip also protects you against rising costs if the demand for slips in your area increases. There is also the possibility of renting your slip if demand in your area is high and you want to set off for a while.

It's been a good investment for us, the value of the slip has appreciated quite a bit, even in todays economy. We normally rent out the slip for 4-5 months while our boat is gone during the summer and it more than covers our maintenance fees for the year. Probably depends a lot on the area, and the marina, whether it's a good move or not.

Marty Laven, owner of The Dockominium Group, a marine real-estate brokerage, says people should be wary of buying a slip at a marina that is not yet built. He says that anyone who buys pre-construction should make sure the developer has taken out a big enough performance bond to return down payments if the project fizzles.

It can be a bit harder to finance a boat slip purchase than a typical real estate purchase because not all banks are familiar with the concept, Hornaday said; 90 percent of the boat slip owners she has worked with purchased their boat slip with cash, largely because they intend to use it as a rental property, she said.

First, if your boat needs a slip but you’re not keen on shelling out marina prices, it might be worth looking for a private slip. Owners of waterfront property often have extra space that they may be willing to rent to you at a rate below what your local marina charges.

If your boat slip is worth a lot, this could represent a significant chunk of change. Indeed, for a $75,000 slip, you’d be spending almost $5,000 to have someone else sell it! For that amount of money, you could rent a 32’ slip at a decent marina for an entire year.

As stated above, boat slips are generally considered to be a luxury property. This means that pricing may have to change more dramatically to stay attractive to a smaller market of potential buyers or tenants, compared to a house or apartment. Certain features of boat slips, like whether or not liveaboards are allowed, don’t have an analog in the rest of the property market.

Don’t Let Your Boat Slip…”Slip” Away! Boat slips are a big deal. More people want more access to beautiful coastal waters. However, there is less and less available space for boat slips. So, they can now cost big bucks. It’s small wonder they can dramatically increase the value of land to which they are attached.

1) Buy a Boat You Can Afford. Before buying a boat, ask yourself whether you can pay cash upfront. Considering that most boats cost tens of thousands of dollars, most families cannot afford to pay cash upfront. This means you can’t afford a boat except you take a loan. But you don’t have to go broke to buy a boat.

Your Answer