Here are some reasons you might want to consider for renting as opposed to buying. (Just make sure that no matter which option you pick, you’ve got proper yacht insurance.)
- If you’re going to move or upgrade your yacht, renting could be the better bet because you’re not tied to that slip (pun intended) and any related annual maintenance fees.
- Depending on the purchase price and how you finance buying a yacht slip, it might be wiser to rent and invest your excess money another way that gives you a greater return.
- In some areas of the United States, boat slips are reasonably priced or even underpriced, whereas in other communities they are highly sought after and very costly. If it’s not worth paying top dollar for a yacht slip, you may as well keep renting.
You might want to buy instead of rent a yacht slip if:
- You know you’re going to stay in the local area, and the yacht slip would be a great home base for your vessel.
- You don’t want to keep paying rent if you can build equity.
- You don’t want to be at the mercy of someone else as a renter.
- If you buy a slip for a good price in an area that is in demand, you can easily rent the slip if you’re going off cruising for a few months at a time (bonus: the rent you collect may cover your annual maintenance fees).
- Your investment is a good one when the cost and maintenance fees are within your budget, and you have reasonable expectations that the slip will appreciate in value.
- If demand is rising for slips in your area, then owning yours protects you against limited supply; and it is, therefore, a good investment.
Some people will also consider renting or leasing a dry slip, nicknamed a “rackomininiumk,” or a wet slip, called a “dockominium.” Some of the latter allows you access to marina amenities such as eateries or leisure activities like golf or swimming. As with all real estate transactions, a market analysis is going to help you decide what your best investment strategy will be. Location, convenience, amenities, and supply and demand are all going to be market drivers. All of these factors should be considered in the total annual cost of your yacht with fuel, insurance, and crew if needed.
How well is your yacht or boat protected while docked? Call the marine insurance professionals at Global Marine Insurance to review your coverage and discuss policy options with the best insurance carriers in the business. We specialize in recreational and commercial boats, ranging from yachts and sailboats to passenger boats and commercial fleets.