Dry Slip Storage

marvin4239

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Joined
Feb 6, 2007
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C Dory Year
2007
C Dory Model
22 Cruiser
Hull Identification Number
CDO2263Ok607
Vessel Name
C-FLE II
I'm considering buying a dry slip storage in Surf City NC mostly as and investment and perhaps to use a couple times a year. Always having lived on the water and I've never given much thought to this but the facility I'm looking at is in and area I like to visit and it seems like a good investment. These slips are around $50,000 and similiar slips in the area are $100,000. What are some of the pros and cons of dry slip ownership?
 
My concern about a dry slip is that it is like buying a condo... the investment is very dependent on the management. Granted, many of these have shown appreciation, but what is the current market? For an easily trailerable boat, I'd have to think twice about paying large bucks for a dry slip. In areas where the ramp availability has gone away due to marinas selling out, I can see where this may be a solution... but are people putting a $20k boat into a $50-100k dry slip? With a boat that you can't trailer home at the end of the day, this may be one of the few options in some areas.

What are the maintenance fees? How is insurance handled? And do you get the current market price of the slip back if there is a catastrophic loss (such as a hurricane or fire), or just your initial investment... and how is that value determined? Hours of operation? What happens with your slip if your boat isn't in it? (Some marinas don't allow sub-letting) Who gets that income if you can sub-let? Split? How are taxes handled? Will there be a fund for capital expenditures to handle repairs/upkeep or will there be special assessments? When you decide to sell, can you do that independently or do you have to use their service/broker?

My personal opinion is that these are interesting investments for the party doing the original building/selling - they are selling "air" with some structure. For that amount of money, you could buy land and build a small boat garage. Of course, you don't have someone putting the boat in and out for you.

Lots of considerations.

Best wishes,
Jim B.
 
Thanks for the reply Jim. I'm having a friend in the real estate business look over the details for me. The big plus to me is the particular area has very few transiet slips and with the purchase of a dry slip you are guaranteed a temporary wet slip and it's a area I love to visit and grew up in. Yes it's very much like a Condo arrangement and the maintenance fee's last year were $1100. It's a fairly new facility and was built just before the real estate market took a nose dive. I'm figuring when and if things get back to normal the values of the slips will increase in that water front slips and property are rapidly running out. On the other hand you can buy a 2 bedroom oceanfront condo here for around $200,000. The Marina is only two blocks from the ocean and to me this is probably the prettiest beach fronts on the entire east coast. Chances are I would probably very rarely even put my boat in the dry slip but take advantge of the Yacht Club and wet slip will the slip hopefully appreciates. You can rent or lease the slip out through the association for $12 per foot per month.
 
I rarely give "investment" opinions. But this is one time I will say that in my opinion that the "dry storage" slip is not a good investment--especially if you will not use it. I base that on what I have seen happen in the Florida area. We lost most of our dry storage buildings in Ivan. Getting insurance for them has been difficult and expensive after the storm I realize that you have not have any storms like that in NC---yet. I hope that you never do. I suspect that you can buy some waterfront property--especially now--if you have the cash for not a lot more than that. I know that in our neck of the woods, water front property, espcially vacant lots, have taken a real dive.

I had friends who had both Dry storage, condos and slilp condos--where the whole works was destroyed. The "Yacht club"--was not really a yacht club in the traditional sense--it was just a place to dock. The owners had to either come up with a lot of money to rebuild, or walk away. Many walked away. Currently the slips are less than half full. The dry storage is nearly full. But what do you do with your boat if a storm comes? (The 18 foot center console I purchased at auction after Ivan survived a 30 foot fall from the top rack--and was a total loss to the insurance company.

I also don't think you are going to see accellorated real estate values come back for some time. The financing is not going to be there. Credit will be tight and there are huge losses in the stock market, and financial markets which will most likely continue for a minimum of 6 months to more than 4 years (according to Warren Buffett).

I agree that this is a really neat area of the country. We looked at property in that area about 25 years ago. I am sure it has grown immensely. But I suspect that if you were to be very serious and look carefully--just a little out of the "high rent district" that you could find some bargins in waterfront property in that area now. I guess what I am saying, is buy land, not a piece of a dry stack...
 
Thanks for your insight Bob. I was raised in this area and while I was there last week for a few days in my boat and I realized how much I missed the area especially Topsail Island. I'm going back in a few weeks in my vehicle and look a little more. From what I saw real estate prices haven't come down much if any in the area. It doesn't seem as if the poor market has had much of an effect on the prices their yet. I've always thought the dry stack places were kind of a rip off but really was looking for opinions of more knowlegable people than I.
 
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