financing purchase of marina berths

[thefirstbruce]

Does anyone know lenders' criteria for purchasing marina berths? And whether they will lend against the equity one might have in a berth?

Would be interested in anyone's opinion/experience about berths as a short term (1-3 year) investment.

 

[ocean view]

marina

bruce

to my knowledge no major lender will lend against a berth. Due to mainly a 50 year lease out on them.

But I could be wrong. I am looking at buying a few myself shortly so I will keep you informed on what I find out.

But if anyone knows of any info on lending against A berth it would be a great help..

Cheers

OV

 

[geoffw]

The problem with birth is that there is no single authority responsible for controlling the number available.

In other words, it's a berth control problem

 

[thefirstbruce]

thanks OV. SE Qld has a shortage. It's a classic supply and demand opportunity.

I am exploring the prospects of more product being produced, but I think environmental protection is a big barrier, especially on Moreton Bay. Things look good for a continuing shortage within 45 mins of Brisbane cbd.

I have an opportunity to buy 2x 15 metre berths on the Bay. They're asking $60,000 each. I believe about 4 years ago, similar berths were selling for around $25-30k, so am just sniffing around at this point.

Berths at Kawana and Mooloolaba on the Sunshine Coast are north of $150k, while RQ at Manly on the Bay are traded tightly and rarely.

Current leases where I'm looking run at $400 a month, outgoings are power and water.
I am having to dig deeply to find out what future maintenance/improvement costs the marina may impose on owners.

 

[thefirstbruce]

Thought I'd share this email received today from the GOld Coast City Marina. I have progressively watched prices rise there. This marina is special too cos it is one of the only ones in SE Qld that is freehold.
_______________________________________________________

Attention potential Moor & Store "Freehold" berth buyer,

I have had your email address to contact if we had any additional berths come on the market.

I have just spoken to a client of mine who wishes to sell his 12m Moor & Store marina Berth (C23 + 18m² garage) with me today for $205,000.00 inc GST

If you have any interest please don’t hesitate to call me on 07 55731 311 or my mobile 0408 758887.

FYI - There is an additional 14m berth that is for sale at Harcourt’s Helensvale for $265,000.00 which really makes this berth a great buy so be quick or you’ll be paying $300k for one!

 

[thefirstbruce]

P.S. re borrowing to buy, NAB told me they'd consider a commercial loan. though they have no way to let you use it as revalued equity to buy something else, as they have no data to revalue it with.

 

[AUSPROP.]

if anybody has a 12m pen available anywhere in Perth that they wish to sell can they please contact me?

 

[APerry]

I spoke to a contact at Bank West today, and mentioned this to him out of interest. He thinks they might do it at 50% LVR. When there is a leasehold in place, a lot of it comes down to what the legal advisers have to say.

I'm pretty sure NAB won't do it if its a leasehold, unless the leasehold is very long. They funded some holiday units in Mornington, Vic at 50% LVR last year, but only because they were on a 100 year lease with another 100 year option.

Regards
Alistair

 

[Dazz]

Can't help with the financing side of the question, but I do know my BIL rents a 12m berth in East Freo for around $ 85 per week. Fresh water and electricity are standard at every berth in the complex.

Waiting list to buy one apparently is about 5 to 6 years. he's been on it for 2 years already and is slowly biding his time.

Negotiating a price when one becomes available is a bit of a joke. You either pay the asking price, or it automatically goes to the 2nd in line, and you get shoved to the back of the queue again....for another 6 years.

To tell you the truth, having met a few of these cats, financing is probably never an issue with these type of berths, as the people are able to comfortably slap 100% cash down on the table and buy it outright. If their boats are anything to go by ??


BTW, I was recently told what BOAT stands for when you own one....Bring Out Another Thousand.

 

[Mike F]

I remember reading that one sold in Holdfast Shores at Glenelg in SA for over $1 million.
I think they sold originally for about a tenth of this about 7 or 8 years ago

Cheers
Mike

 

[thefirstbruce]

Just for the record, I am adding further info here in relation to the above mentioned berth.

Dear Bruce,

The following costs/charges apply to moor and store marina berths but are approximations only. Accurate figures can be gathered by way of the current disclosure statement.

• Management fee 10% of lease amount
• Power 0.14c per KW (standard energex fees)
• Rates $650 per 6 months
• body corporate $38/ week (this fee covers general area maintenance, landscaping, security and a sinking fund)

The demand for rental berths here on the Gold Coast is ever increasing and nearly all rental berths have tenants occupying at present. I have attached a copy of the GCCM fee schedule for the Moor & Store marina berths for you to peruse.

Comparative marinas:
There are no marinas that offer a bird and garage package on a freehold title such as moor & store. The GCCM holds quite a large appeal to many Brisbane and Gold Coast clients due to its geographical location. Being close to the M1 highway coupled with direct bridge free river access to the Broadwater makes the GCCM quite an attractive location to berth a boat.

I hope the above information is useful to you. If you have any additional queries, please give me a call in mobile phone 0408758887 to discuss further.




Mooring fees for a 12 metre berth are $7455pa



So working out yield,



Gross Income 7455 (moor and store fee for 12 mths)



Expenses
mgt fee 745
rates 1230
BC 1976

Net Income 3504

Net Yield on $200,000 = 1.75%



Obviously, moor and store fees will have upwards pressure over the next 5 years. But as others have alluded above, berths are the playthings of the wealthy, and as more well heeled move to the Gold Coast region, there will be significant pressure on the berths. (The tech unsavvy marina agent never does a BCC when he does a mass mail out, and the CC list makes interesting reading)...


The main reason I didn't jump into a berth last year was because of the lack of opportunity to use it as leverage. However, if one was looking for a negative gearing opportunity with strong CG potential, then berths might be considered. I wish now that'd I taken one last year for $120k.

 

[landlubber]

who owns them boats ...and never uses 'em ?

Sorry to hi-jack this thread ..but has anyone ever wondered just who owns ALL those "half million dollar" boats and why they always seem to be in the marina? Put another way ..have you EVER driven past a marina and said "hey look, the marina is empty, all the boats are out?"

Again .....sorry !

LL

 

[thefirstbruce]

LL, I know a lot of wealthy ppl who use their swimming pool 6x a year.
I know a lot of well heeled boaties who use their 34 footer the same.
The only ppl I know who use their boats every week catch prawns, weather permitting.

 

[see_change]

The only ppl I know who use their boats every week catch prawns, weather permitting.

The group who do use their boats on a regular basis are those who race.
If you're into racing, the thought of a thirty knot southerly hitting the fleet makes it really fun ( seriously ) .

See Change

 

[handyandy]

Sorry to hi-jack this thread ..but has anyone ever wondered just who owns ALL those "half million dollar" boats and why they always seem to be in the marina? Put another way ..have you EVER driven past a marina and said "hey look, the marina is empty, all the boats are out?"

Again .....sorry !

LL

Ah look, here they all are

http://www.cityofsydney.nsw.gov.au/nye/2004/ImageGallery/i/2004_photocomp/z/twenty.jpg.html

Used for one time in the year, on Sydney harbour.

 

[landlubber]

thefirstbruce,
hmmmm...I think maybe I need more friends like yours maybe !!!

LL

 

[thefirstbruce]

thefirstbruce,
hmmmm...I think maybe I need more friends like yours maybe !!!

LL

LL, they aren't necessarily friends....some are clients, some are acquaintances....I am not into boats myself....I can think of so many better uses for money.... so many 40 somethings I know with boats only go out and hurt their backs on the weekend.......what ever happened to ageing gracefully....