What is a Dockominium?
The concept is much like owning a condominium on land except that it's a home for your boat on the water or in a dry stack rack building.
What are the advantages of owning your own slip?
The purchase of a wet or dry dockominium provides owners with multiple benefits, including, but not limited to, building equity in a rapidly dwindling resource as demand continues to outstrip supply, having an investment in waterfront property whose value continues to increase over time, provide rental income when not in use, offer possible tax savings. It will also assure some control of expenses as rental rates climb even higher, and most importantly, secure for you and your family a permanent home for your boat and the lifestyle that it provides.
What forms of ownership are available?
Ownership of wet dockage or dry dockage is fee simple title with warranty deed framing ownership of the submerged land and air rights associated with the slip forever. Similar to owning a condominium, all aspects of common and limited common elements are detailed in the association documents provided prior to purchase.
What type of amenities are available with ownership?
Many dockominium facilities offer a club like atmosphere to you, your family and friends. They may include swimming pools, tennis courts, showers and restrooms, laundry facilities, picnic areas, assigned and guest parking, cafes, lounges, ship's store, complete fuel dock (both gas and diesel) pump-out stations at each slip as well as a complete maintenance program, staff facilities and services for your boat.
Yes. Taxes must be paid by each individual owner as with any other real estate that you might own.
Why consider purchasing a dockominium now?
Although ownership of permanent yacht slips, dry stack, berths and moorings may appear like a relatively new concept, knowledgeable yacht owners the world over continue to seek and purchase prime yacht dockage for their vessels. Dockominiums are available for purchase in many of the world's major oceans, lake river accessible communities. The number of new dockominiums available for purchase, especially in the coastal regions of the United States, continues to decrease as demand continues to grow. They have soared in popularity more recently because of a number of factors. For example, yachting continues to expand world wide as more owners are entering the market. Small, formerly independent marinas are being purchased by large developers and developed in to condominium projects. In addition, there are environmental, regulatory and land use restrictions reducing the availability supply of marinas at large. As the number of slips decreases, their value continues to grow.
Do dockominiums meet the requirements for 1031 tax-deferred exchanges?
Yes, depending on the type of exchange you are considering. If you wish to defer capital gain taxation indefinitely, please consult first with your tax and/or legal advisors.
What is a Wet Dockominium?
As rental costs continue to increase, boaters are looking for an acceptable alternative. Wet dockominiums become a home for your boat on the water. Ownership in slips is more than a place to park your boat! Rather than the old saying that BOAT means “break out another thousand”, your dock now becomes an asset. Not only do you own your slip, you have an equally proportional ownership in the management control of the common areas of the marina.
What is a Dry Dockominium?
Dry-stack boat storage is becoming the most rapidly appreciating real estate on the waterfront today. Boat owners are realizing that rack storage is the most cost effective and convenient method of storing boats up to 20,000 pounds and 38’ long. Dockominium ownership includes an equally proportional ownership in the common areas of the marina property. As an owner, not only do you realize equity increases in your rack space, you realize full depreciation in a seven year period and the possibility of interest deductions.
The storage of a boat on a rack system is the best place for your boat. The boat rests on adjustable skids that conform to the boats bottom, out of sun and weather and free from the stress of constant wave action. Storing boats in a rack building allows air to circulate which helps eliminate mildew and musty odors normally associated with boats.
One of the highest returns in real estate investments in the United States is marina services and dry stack boat storage. More and more Americans have an increasing amount of time and disposable income to spend on recreation and at the same time the numbers of marina facilities are shrinking, as developers convert high value waterfront property to condominiums.
New marinas are not being developed due to environmental concerns and government regulation. Recreational boats are increasing in length and width forcing the smaller boats off the waterfront to make room for the larger ones.
The solutions are to move these smaller boats into a multi-story dry stack storage facility. These storage facilities, conveniently located near the waterfront, use heavy marine forklifts to pick the boat from the water, transport it to the dry stack storage facility, and stack the boat in a racking system that often extends five stories high. Boats stored in these racking systems are kept high and dry, completely protected from rain, storm, sun and even hurricanes.
Storing a boat out of water can double the life of the boat and help with the resale value of the boat. Water and sun take a tremendous toll on a wet slip boat.