Driving Growth: Golf Property & Resort Destinations
Buy a Golf Property? We are often asked if golf courses add value to residential property in resort projects. And very simply, the answer is yes… and no! Find out when a golf course adds benefit to your property purchase and when to steer clear!
Supports Short Term Lettings
There are around about 60 million golfers in the world and many of them love nothing better than a golf holiday or at least an excuse for a round or two when on holiday. A golf course can help increase the appeal of a destination providing a way to attract potential holiday makers. Typically, when a destination or development is home to a golf course, it will also have other supporting facilities thus increasing its appeal even further and broadening the audience who are interested in visiting. The volume of golf courses in the area also needs to be considered, as golfers typically prefer to play more than one course when vacationing.
Beautiful Vistas For Your Golf Property
Golf courses are extremely visually appealing to look over. They are impressive and relaxing. Whilst they also provide a view that is unlikely to be constructed on at a future date. This provides property owners with protection from eyesores being developed in their ‘back garden’. It is also a very cost-efficient way of having parkland whose maintenance is paid for by its operation as a golf course.
Golf property is perceived as exclusive and desirable. As golf is historically a sport of the upper middle and upper class, think bankers and lawyers making deals over a round of 18. The inclusion of a golf course can elevate the reputation and perception of a development project. Adding value based on desirability. People tend to associate golf with luxury living to a certain degree. This means your property will be perceived to be luxury. Typically, golf property will sell for and maintain higher prices than comparable properties in the locality.
Expensive to Maintain
Golf courses are expensive to build and maintain. This can impact your golf property. If it is not self-sustaining; as a business, in its own right, the cost can end up being passed onto customers by way of stealth management fees. Or directly by some more candid developers. Whether a golf course adds value to your property is wholly dependent upon whether you have any liability for the costs of operation or maintenance. Be careful of stealth charges hidden in general property maintenance fees. You must check what cost burden you will have from the golf course. If you are levied with any maintenance costs or contributions, then the value that it adds in rental income and resale value can easily be outweighed.
Bad Condition Golf Courses
When money runs tight a golf course can quickly fall into bad condition. Keeping a golf course in pristine condition is a labour-intensive affair. As a property owner, you need to be sure that the operator will keep the course to a certain minimum condition. The biggest risk is golf courses in climates that don’t naturally sustain them. In very cold or very hot climates special measures have to be undertaken to keep the course alive. This is am important consideration when buying a golf property.
A golf course undoubtedly adds value to a property whether that be through increased rental desirability. Factors, such as green open space or prestige which results in the property to be valued more highly that comparable properties without golf courses. It is whether that value is impacted by maintenance costs or poor maintenance which will determine whether the added value can be collected by the golf property owner.
Making sure that you; as an owner, are confident that the golf course will be well run and maintained and that you will not have liability for operational or maintenance costs is essential in determining whether your golf course property is a good investment. As long as you do your research, a golf property can be one of the best investments that you could ever make.
MEPM Property offer a number of property selections on golf courses. Take a look at Ancient Sands Golf Resort in the Red Sea resort of El Gouna. Or property at Somabay on the Red Sea Riviera. For those of you that prefer a mountain to a beach location, why not think about Andermatt.
We also offer a number of Golf Real Estate Discovery Experiences. The perfect way to combine a golf vacation with the opportunity to explore the real estate available in your chosen destination.
Take a look at the Golf Experiences on offer with MEPM