Where can you find real estate that’s just 40 minutes from San Francisco, 20 minutes from Napa and costs under $67,000? You can find it in Vallejo, which according to recent reports is currently one of the hottest real estate markets in California.
Imagine yourself buying investment property in the Bay Area for less than one year’s salary. Now that Nima Gabbay, the owner of the Glen Cove Marina, has converted his boat slips into dockominiums, that dream has become a reality.
Of course,now that I’ve caught your attention, you are probably wondering, “What is a dockominium?”
Basically, a dockominium is the purchase of an individual boat slip for private ownership. In most cases, the new owner buys the rights to the slip but leases the water rights from the government. The Glen Cove dockominiums are unique because they come with a fee simple title, they are not subject to a ground lease. Your rights never expire and the market values won’t decline based on the expiration date of some government lease.
Demand Grows but Supply Decreases
According to Gabbay, “the total number of boat slips available for rent in the Bay Area has decreased while the California boating population increases every year, creating greater demand which will continue over time.”
For boat owners, not only does owning a dockominium at Glen Cove Marina guarantee them a slip but they can also rent out their slip for passive income.
“We may be the first in California to offer covered slips for sale, and certainly the only one in the Bay Area,” claimed Gabbay. “An Owners Association will pay for the marina’s upkeep and management, and future dredging. In addition, as part of your fees, management will handle your rentals, making this a prime investment opportunity.”
In the case of the Glen Cove Marina dockominiums, there are no restrictions on the sale or transfer of the slips and the 1031 Exchange tax advantages are similar to a condominium.
Live Aboard and Save $$$
For some, the biggest financial advantage could be the “Live Aboard” option. It’s no secret that Bay Area real estate costs are some of the highest in the nation. However, the dockominiums only cost between $22K - $67K and could provide an economical alternative for those living near San Francisco and Napa Valley.
Per the marina permit, only 10% of the slip owners are allowed to live aboard their vessels full-time; this is a one of a kind opportunity.
Take Advantage of Special Financing
According to Rob Landsness and Carey Miller, realtors working with the Glen Cove Marina, Fremont Bank is working with buyers to provide financing and will be waiving many of the fees associated with their application process. This includes “no closing costs”, making it even easier own one of the new dockominiums.
Glen Cove has already begun taking reservations and launch parties start this week. According to the owner, they already have reservations for 10% of the available slips, so if interested, you will need to jump on this opportunity fast. According to Landsness and Miller, the best way to learn more about the dockominiums is to call their office or visit the Glen Cove Marina’s website.