Boat slip value? - SailNet Community
 
LinkBack Thread Tools
post #1 of 8 Old 07-13-2012 Thread Starter
Junior Member
 
Join Date: Feb 2012
Posts: 17
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
 
Boat slip value?

I'm interested in purchasing a boat slip in clearwater (tampa) florida. The slip is located in a gated condo association. There are from 300 to 600 unit total and only 60 slips.

I saw a slip with a lift sold for 15,000 a couple months ago.

I am looking at a slip with out a lift. She wants 15,000 obo. I offered her 9000.

She told me she changed her mind about selling. Then the next day asked if I would raise my offer.

With out a lift it makes it super hard to find a renter for the slip. Only people who live there can rent. I want it to put either a sail boat or a big old cheap cruiser, in a couple years.

I think its like $80 a month with fees and taxes.

I think the bridge hight is only 47 ft and maybe the max daft is 4.5.

What do you guys think?
andrew1289 is offline  
Quote Quick Reply Share with Facebook
Sponsored Links
Advertisement
 
post #2 of 8 Old 07-13-2012
Senior Member
 
night0wl's Avatar
 
Join Date: Mar 2006
Location: Fort Lauderdale
Posts: 1,459
Thanks: 0
Thanked 21 Times in 21 Posts
Rep Power: 10
 
Re: Boat slip value?

A slip (or condo, or house, or whatever piece of real estate) is worth what it can rent for. Try to find out what the gross rent multipler is in the area...in a healthy market, its usually 80 - 100 times monthly gross income:

$80/mo gross income x 80 grm = $6400. Thats the value of the slip if you believe in GRM. You can also use capitalization rate and other rental tips.

10-Year Investment in Real Estate Calculator

*IF* $80 a month is all you can get for the slip for rental on the open market, then to me its worth no more than $6500

S/V Jendai
Beneteau 343
night0wl is offline  
Quote Quick Reply Share with Facebook
post #3 of 8 Old 07-13-2012 Thread Starter
Junior Member
 
Join Date: Feb 2012
Posts: 17
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
 
Re: Boat slip value?

Wow, thats a very interesting point of view.
andrew1289 is offline  
Quote Quick Reply Share with Facebook
post #4 of 8 Old 07-13-2012 Thread Starter
Junior Member
 
Join Date: Feb 2012
Posts: 17
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
 
Re: Boat slip value?

When I said $80 a month with taxes and fee's I mean that is my cost as the owner per month. That includes taxes, and fees the the boat association. That included water and electric as well.

I see some with a lift rent for $125 a month. But I figured, being as its hard to find a renter for a slip with out a lift. Finding someone to cover my costs $80 a month would be nice.
andrew1289 is offline  
Quote Quick Reply Share with Facebook
post #5 of 8 Old 07-14-2012
Owl
 
-OvO-'s Avatar
 
Join Date: Dec 2011
Posts: 219
Thanks: 0
Thanked 2 Times in 2 Posts
Rep Power: 4
 
Don't forget the cost of money. That's the difference between your 80 and their 120.
-OvO- is offline  
Quote Quick Reply Share with Facebook
post #6 of 8 Old 07-14-2012 Thread Starter
Junior Member
 
Join Date: Feb 2012
Posts: 17
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
 
Re: Boat slip value?

OvO would you care to elaborate?

I'm not sure I understand.
andrew1289 is offline  
Quote Quick Reply Share with Facebook
post #7 of 8 Old 07-15-2012
Senior Member
 
night0wl's Avatar
 
Join Date: Mar 2006
Location: Fort Lauderdale
Posts: 1,459
Thanks: 0
Thanked 21 Times in 21 Posts
Rep Power: 10
 
Re: Boat slip value?

I think my spreadsheet accounts for the cost of money. Basically, if you were to buy this slip for $6500, well that money could have been working for you in the stock market or some other investment. That means you buying that slip should (when sold) exceed that rate of return...so its important for your cap rate to exceed what you could get in terms of risk free rate of return.

S/V Jendai
Beneteau 343
night0wl is offline  
Quote Quick Reply Share with Facebook
post #8 of 8 Old 07-15-2012
Senior Member
 
Join Date: Feb 2010
Location: Narragansett Bay
Posts: 11,156
Thanks: 46
Thanked 232 Times in 217 Posts
Rep Power: 7
   
Re: Boat slip value?

Mathematically, it is a comparison of the net present value of cash. You take paying rent every month, into perpetuity, and compare it against paying an upfront purchase price and a smaller amount each month or year for maintenance, insurance or whatever else. You discount the cash back to today's dollars, and the upfront cash that breaks-even is theoretically the value. Its get squishy when you have to pick a discount rate, which is arguably very low in the near term (raising the breakeven), but should normalize over the long term.

But there is another intangible. Owner occupied homes, for example, typically sell for more than the above math would suggest. Why? Because there is an emotional attachment to them, people need a place to live and the convenience of a particular home to their work or being in a desire school district have incremental value. The math can also be impacted by a disconnect in the supply and demand of renting vs. owning. If more people want to own, the cost to buy will be higher than the break-even to renting and vice versa. A boat slip would be impacted by similar intangibles.

Clear as mud?


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

Jeanneau 54DS

In the harsh marine environment, something is always in need of repair. Margaritas fix everything.
Minnewaska is offline  
Quote Quick Reply Share with Facebook
Reply

Quick Reply
Message:
Options

By choosing to post the reply above you agree to the rules you agreed to when joining Sailnet.
Click Here to view those rules.

Register Now



In order to be able to post messages on the SailNet Community forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
Please note: After entering 3 characters a list of Usernames already in use will appear and the list will disappear once a valid Username is entered.


User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in









Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page



Similar Threads
Thread Thread Starter Forum Replies Last Post
Boat slip squatter Seastrider General Discussion (sailing related) 86 03-27-2011 12:53 AM
Boat slip in Seattle Rustyf Boat Review and Purchase Forum 4 05-27-2009 10:56 AM
Got 13 foot slip, need boat LookingForCruiser Boat Review and Purchase Forum 14 04-04-2008 02:26 PM
Got slip - need boat! railsunderinca Boat Review and Purchase Forum 9 12-04-2006 01:45 PM
boat slip 4 sale debi_adkins General Discussion (sailing related) 0 03-31-2004 03:38 AM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome