$150,000 golf-course lots selling for $1
Luxury homes in golf communities are losing their luster as fewer people play the game. The marriage between real estate and golf may not have been a good one.
Where can you find a deal on property these days? Try a luxury golf community.
According to The Wall Street Journal, the decline in the popularity of golf, coupled with the real-estate downtown, has significantly cut demand for homes in golf-course communities. That has meant price cuts for homes, lots and even country-club fees.
"There's a train wreck in the industry now," John Reed, developer of the Colleton River Plantation, Belfair Plantation and Berkeley Hall communities in South Carolina, told the Journal.
"We overbuilt and the market stopped."
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In the 1990s, 60% of the golf courses built were part of a real-estate development, according to David Hueber, former president of the National Golf Foundation.
He wrote a paper titled "'Code Blue' for U.S. Golf Course Real Estate Development" in 2010, based on his doctoral research. He concluded that the marriage between real estate and golf has not been good and that the traditional golf-course community was not sustainable. He wrote:
The influential role that real-estate developers played in this regard is of particular note, because too many golf courses were built, too much was spent on developing them and, as a result, many of these golf courses are not financially viable enterprises. Also, these golf courses were often too difficult, too expensive and took too long to play, which eventually translated into having a large number of golf courses that did not meet the needs of the golf industry’s ultimate consumers -- average golfers.
If, however, you like golf courses and golf-course communities, you may be able to get a deal.
Here are some of the deals cited by the Journal:
- A free lot at the Colleton River Plantation, plus the seller paid the $15,000 club initiation fee and the first year of membership fees, an additional $17,000. Lots at South Carolina communities that once sold for $150,000 are now available for $1 from sellers who want to get out from under $12,000 to $17,000 annual club dues.
- A lakefront home in Delray Beach, Fla., at the Mizner Country Club, which sold for $1.6 million in 2007, is available for $795,000.
- At Horseshoe Bay Resort near Austin, Texas, you can get a lot for $39,000 that previously sold for $300,000.
- In the Pronghorn community in Bend, Ore., lots that once sold for $500,000 have gone for as little as $10,000.
Golf is an ahletic event.Like swimming,it stimulates some muscles.
And like swimming you detrmine the pace,and do not have to watch a clock.
Taxes - Inflated because of the course
Master HOA Fee's
Food/Beverage Fee's for the Club
Club Fee's - Often Mandatory
Membership Fee's for Initiation $20K and up
I call it the Developer Mafia in Florida - As you destroy the middle class your customers vanish and there aren't enough 1% to fill that gap now or the future!
Another misleading article...Another piece of bad journalism...
The examples shown are about very rare & extreme deals.
There may be a decline in prices & demand ,
but the "news" about the death of the golf community are ...premature...
When golf declines in popularity it is serious blow to the fitness of the American elderly.Unlike any other sport except dog walking,golf provides a wonderful and relaxing walk for men and women.It is also great for social activities.around the globe. It was invented by isolated shepherds who needed an excuse to see someoneCompetitive around the globe it attracts a special group of athletes.
Might I suggest it also stimulates an interest in botany,zoology and other sciences including physics.Ask a golfer about a new club,and you will find someone who has seen videos of serious physicists employed by golf manufacturers.
Golf also helps the memory like playing bridge. Golfers can remember shots from ten years ago. Jack Nicklaus recalls shots he made in 1970,and he is not boasting. Now he may no know the birthdays of his grandchildren or where he put his keys,but shots he has locked up.
About Teresa Mears
Teresa Mears is a veteran journalist who has been interested in houses since her father took her to tax auctions to carry the cash at age 10. A former editor of The Miami Herald's Home & Design section, she lives in South Florida where, in addition to writing about real estate, she publishes Miami on the Cheap to help her neighbors adjust to the loss of 60% of their property value.