The Advantages Of Owning A Boat Slip
Purchasing a boat slip, wet or dry, has many advantages. The advantages of owning have long been understood in the traditional real estate market. With a growing population of boat owners and increased demand on the part of boat owners for slips, rental prices are rising and waiting lists for rental slips are growing increasingly longer. Now, savvy boat owners are enjoying the advantages of owning boat slips. Boat slip owners have not only secured a home for their boats, they have the possibility of the increased value of their slips.
What is a boat slip?
Boat slips are individual slips that can be sold and transferred by deed to individual boat owners and investors. Sometimes, included in the purchase price of the slip, is the ownership (in common with the other slip owners) of the marina common areas. These might include things such as a service center, marina store, fuel dock, office/retail space, etc., the marina parking, recreational amenities, club house, restaurant, gym, swimming pool, etc.
What type of amenities with slip are available ownership?
Many facilities offer a club like atmosphere. They may include swimming pools, tennis courts, gyms, showers and rest rooms, laundry facilities, picnic areas, assigned and guest parking, a restaurant , lounge, ship’s stores, car and/or bicycle rentals, complete fuel dock(s) (both gas and diesel), pump-out stations at each slip, as well as complete maintenance programs, staffs, facilities and services for your yacht.
Are there property taxes?
Yes. Taxes must be paid like any other real estate that you might own.
Is financing available for my boat slip purchase?
Yes. With the same tax deductions that a conventional mortgage offers. We have local financial institutions in place that can help you with financing. There are many advantages to owning a slip versus renting.
These benefits include the following:
1: More control of your boating water access, lifestyle and destiny.
2: Building equity of owning as opposed to leasing.
3: If the purchase is financed by a qualifying home equity loan or if the boat and slip can qualify as a second home, the interest is generally tax deductible. Additionally, the real estate taxes paid in connection with the slip are also tax deductible. Always consult with your tax advisor.
4: If structured properly, the after-tax cost to many boat owners will be less than the rental rate they would be paying for the same period. After the loan is paid off, the ongoing cost of owning the slip
is a small fraction of rental.
5: Ownership of a slip protects a boat owner from the consistent increases in rental rates. The slip becomes an asset instead of a cash drain.6: The boat slip can be sold or transferred, at any time, or passed by inheritance .7: If an owner is not using his slip, the slip may be rented for income.8: Increasing governmental regulation limiting the number of marinas which can be built, coupled with the consistent demand for boat slips, create the potential for an appreciation in your slip’s value.
