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You can buy property with direct
water access in Westchester County for a little more than $30,000.
But the land isn't on the water.
"It's under the water,"
Steve Plotkin, the dockmaster at Half Moon Bay Marina in Croton-on-Hudson,
said.
The marina is selling dockominiums,
or permanent rights to a plot of land about eight feet below the surface
of the Hudson River. The purchase provides a permanent home for a boat
as well as the potential tax advantages for the buyer.
"It's no different from
buying a condominium," explained Stuart Vogel of Scarsdale, an accountant
who purchased one of the 173 slips at the marina for his 23-foot powerboat.
Vogel considers it a good investment.
"Dock space on the Hudson is at a premium," he explained.
By providing complete ownership
of the boat slip, a dockominium ensures a place for the owner's boat regardless
of market shortages or rising slip rental charges. The concept isn't new:
in other parts of the country, especially Florida and California, the
sale of boat slips is common. However, it is only catching on in the Northeast.
Whether or not the practice
is legal apparently depends on the location of the dockominiums. Last
year, the Wisconsin State Supreme Court ruled the sale of boat slips by
a marina there was invalid. The court ruled the sales violated state law,
which provides that lakes and rivers belong to all Wisconsin citizens.
In the Wisconsin case, the marina was selling its riparian or waterfront
rights.
In Croton, the developers are
actually selling underwater land, explained village manager Richard F.
Herbek. "The property is on the tax rolls," he said.
Steel Style Development Corp.,
the developer of Half Moon Bay Marina, owns the property for sale. Before
it could start selling dockominiums, the company had to get approval from
the village to subdivide the underwater property — just like it would
have been required to do with any other parcel of land. Herbek said the
Planning Board approved the plan.
Dockominium owners receive
a deed and title policy, and slips are maintained and cared for by the
Boat Owners Condominium Association at Half Moon Bay Marina.
Half Moon Bay Marina is one
of the deepest marinas on the Hudson River. It's located beside a condominium
complex, where the last phase of construction is under way. The developer,
Spectrum Skanska, is constructing terrace and townhomes ranging from 900
to more than 2,300 square feet. The properties range from the mid $200,000s
to as much as $900,000.
Plotkin expects the chance
to own boat slips to both hasten sales and increase the value of the condos.
"Many of the people who are buying slips live there," he said.
About half of the available slips have been sold.
The dockominium slips range
in size from 25 to 80 feet, with the majority of slips between 30 and
40 feet. The sales price is $1,210 per foot, or from $30,250 to $96,800.
Vogel said buying a slip compares
favorably with renting a slip, which would cost him about $2,500 a year.
"I think I'll come out ahead in the long run," he said.
Vogel expects the value of
the slip to appreciate. In addition, he has the option to rent out the
space if he moves or sells his boat and gain some tax deductions.
Dockominium buyers can deduct
the property taxes they're charged on the value of the land — about
$100 a year. However, they may also be able to deduct the interest they
pay on any mortgages they obtain to finance their purchase.
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