Would you buy in a golf course development?

[gooddog]

This is something like asking if stocks are good/bad investments. Some are good, some are bad. Every club has different financial footing,and it is easy to find out. Ask for the financials, talk to the GM, head pro, and membership director. The great thing about gated CC communities is the mentalities, lack of bums, and social connections that come with such communities. Be sure to ask to be a 'member for a day' to check out the club.

 

[NoiseBoy]

https://thegolfwire.com/2019-golf-industry-report/

There were 434 million rounds of golf played in 2018, a 4.8% year-over-year decline attributable in part to the third-wettest year on record nationally dating back to 1895 (National Oceanic and Atmospheric Association).

The total U.S. golf course supply declined by 1.2%, with the opening of 12.5 new 18-hole equivalent golf courses and 198.5 course closures. Closures have outweighed new openings nationwide since 2006, an ongoing correction of supply and demand within the market that followed an unsustainable 20-year building boom during which more than 4,000 courses opened, boosting the U.S. supply by 44%. The U.S. remains the best-supplied golf market in the world with 14,613 facilities and 16,693 courses – more than 75% of which are open to all players, the highest public-to-private ratio in history.

Note that closures have outpaced openings since 2006. There are lots of articles that explore the reasons for this and the most common culprit given is the sheer amount of time it takes to play 18 holes of golf. As others have advised; proceed with caution.

 

[FreeBear]

Interesting discussion, not even aware of all the ramifications of golf course living. Not a golfer, but filing away for future reference. Thanks all!

 

[Smitty700]

The Wall Street Journal had an article on this topic last week. The gist of article was that in some cases where golf courses have gone belly up, neighboring homeowners have stepped in to prevent a consequential decline in their home values.

In one example they showed in Shelman Bluff, GA, homeowners pooled money to purchase the neighboring bankrupt golf course, and some are now trimming bushes and mowing grass to cut maintenance expenses at the course.

It may be under a paywall, but here's a link to the article: https://www.wsj.com/articles/golf-h...shareToken=st1cdeb98f06eb4e0ea2acdec9eca6f077.

 

[ShokWaveRider]

Again, I think if one lives in an area where folk cannot afford to be members anymore or the company thinks that there are not enough clientele, then yes they are subject to decline. But if one lives in an affluent or semi affluent area then they will survive. As far as I am concerned this is another reason for not living in a real LCOL area, at least not on a golf course. Once again you get what you pay for. I highly doubt if Pebble Beach in California will go the way of the Dodo.

Or, there are too many golf courses in close proximity to each other to be sustained by the existing clientele. WGV 10 miles west of the coast is very worrisome because of this reason. People would rather play the PGA and Sawgrass courses than WGV if push comes to shove.

 

[ychuck46]

Would if ...

If I was an avid golfer I probably would. But since I have hated the idea of the "sport" for most of my 65 years, I doubt I will pick it up in time to want to purchase a house on such a course.

 

[zinger1457]

This is something like asking if stocks are good/bad investments. Some are good, some are bad. Every club has different financial footing,and it is easy to find out. Ask for the financials, talk to the GM, head pro, and membership director. The great thing about gated CC communities is the mentalities, lack of bums, and social connections that come with such communities. Be sure to ask to be a 'member for a day' to check out the club.

Agree there good and bad golf communities, it can be a bit of a gamble since many have gone from good to bad fairly quickly. The GM, head pro, and director are mainly salesman, not sure you'll be getting an unbiased opinion from them but they are worth getting to know. As much as I like to golf I would only join a golf club that offers annual memberships, more and more seem to be offering that option to attract more members. Plus, it can get boring playing the same golf course over and over again, don't want to be tied long term to just one.

 

[Safe Harbour]

Yes I would and Yes I did

First let me say we are golfers and we did buy on a golf community 10 years ago. But, I would do it if I was a tennis player, fitness freak, fine wine and dinning enthusiast, hiker, bridge player, scotch connoisseur, etc, etc. Absolutely yes! All of these things are available where we live. We moved in and we had an instant community. We have a group of about 20 couples that do everything together and we have a community of 250 couples that are almost all great people. Where else could you move and have that instant welcoming community.

Of course, make sure you have a club with a solid financial position, a very small percentage of clubs did close last year. If you don't like people in your back yard, do buy a home that's off the golf course.

I'd be more concerned about buying property on the Florida coast because of sea-level rise, or in Phoenix because of water scarcity. The odds of disaster in those cases far outweighs the risk of a well chosen golf course closing.

Just my thoughts.