- • What is a Rackominioum?
- Rackominiums are individually owned dry-stack boat storage racks. They are the easiest way to handle motor cruisers or sport boats that are less than 40' in length and weigh less than 28,000 pounds. They can be open air racks, open racks with covered roofs, completely enclosed and climate controlled or as in the case of Turtle Cove: three-sided buildings.
Special crane systems, lifts and fork lifts are used to safely haul & store or lift and launch your boat as often as you wish to use it. Whether it is once every couple of weeks to several times a day, these facilities provide you the same access to the water as a wet slip, but provide equal or better protection than if you had your very own boat lift. Boats stored in high and dry rackominiums benefit from much greater security, are safer from severe weather and lower maintenance costs. Paint will keep longer, drive shafts, props and out-drives require much less maintenance.
The concept is much the same as a condominium except that it is a home for your boat and based upon the land that the rack sits on and the structure itself (like a condo).
- • What is a dockominium?
- Dockominiums are individually owned wet slips for sailboats and cruisers. The concept is much the same as a condominium except that it is a home for your boat and based upon a deeded title to the basin bottom. These slips or boat lifts are located in artistically landscaped, lighted and gated marinas, each with a complete amenity package.
- • What forms of ownership are available?
- FEE SIMPLE: Ownership of both the dry storage units and deep-water dockage is in fee simple title with a 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.
- • 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.
- • Are there any property taxes and insurance?
- Yes, each slip owner receives a property tax bill. The Association pays the property tax
for common areas. Each vessel must maintain its own insurance. The Association pays for insurance in common areas..
- • How are the monthly maintenance fees established?
- The operating budget is equally divided between the number of slips at the marina. The
fees are guaranteed until 2010 and are anticipated to decrease as the expansion is built
and more slips are added to share the costs.
- • Why should I consider purchasing a slip or rack instead of leasing?
- Why consider purchasing a dockominum or rackominium now? Although ownership of permanent yacht slips, berths and moorings may appear to you like a relatively new concept, knowledgeable boat owners and real estate investors seek and purchase prime dockage for their vessels and income opportunities.
The number of new dockominiums available for purchase continues to decrease as demand continues to grow. They have soared in popularity more recently because of a number of factors.
-Boating continues to expand as more owners are entering the market. Larger and more costly vessels are being constructed every day, thus placing pressure on an already oversubscribed and limited rental marketplace.
-Small, formerly independent marinas are being purchased by large international companies and developed for their maximum utility. High priced resorts and condominiums are ousting the recreational boater.
-In addition, there are stringent environmental, regulatory and land use restrictions reducing the available supply of marinas at large. As the number of high quality, deep water wet slips decreases, their value continues to grow. Recent moratoriums on new marina construction and dock permitting has influenced some dockominium owners and investors to purchase additional available slips simply for the investment value that they represent.
Yes, you can still choose to lease, but why would you want to?
- • What are the estimated annual costs of ownership?
- If purchased without financing, a unit owner's annual cost of ownership would be the tax deductible real estate taxes of the property's fair market value. There will also be a monthly Association assessment for common area maintenance, property insurance, security and related expenses. Association's set their own fees and can be found in a wide range up to $3000 per month for mega yachts. At Turtle Cove, the estimated monthly association fee is under $200 per month, plus real estate taxes.
If financed, a unit owner will also be responsible for the principal and interest payments associated with the financing. As noted above, the interest component of the payment would be tax deductible if the loan is structured as either a qualifying home equity or second home mortgage loan. The principal part of the monthly payment would increase the equity of the dockominium unit. The association fee would remain the same whether owning or leasing. Once again, we ask that you consult with your tax advisor in connection with your particular tax situation.
- • What slip lengths are available and what are the costs?
- There are dockominums (wet slips) available for a yacht or vessel up to about 50 feet. Dry stack rackominiums can be purchased for vessels up to 40 feet at the most affordable prices in the State.
Dry Racks offer far superior benefits. They provide greater security and protection and will contribute to a longer life, lower cosmetic, bottom and drive train maintenance, increase resale values and may someday potentially lower insurance rates for boats stored in such facilities.
Depending on the geographic location and type of marina development, dockominiums can range widely in price from as low as one thousand dollars ($1000) per linear foot to as much or more than fifty thousand dollars ($50,000) per linear foot for luxury indoor climate controlled wet slips.
Rackominiums (dry racks) also range in price but not quite as drastically as dockominiums.
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