Investing in a Golf Estate – What you need to know
If you’re looking to market a property, it’s important to pay attention to changing consumer preferences. With the COVID-19 pandemic, many people are searching for ways to get exercise and enjoy the outdoors in a safe and socially distanced manner, and golf courses can be an excellent way to do that. Plus, with the pandemic enabling millions of people to work remotely (in some cases, permanently), homes in golf communities have risen in popularity. More people are leaving city life behind. More people are able to work remotely than ever before. And as an outdoor sport, that is highly conducive to social distancing, golf courses are seeing a big uptick in demand.
Even for nongolfers, a golf community often has some very desirable amenities. Clubhouses often feature social gathering spaces and restaurants, and the communities themselves often have very attractive outdoor spaces and walking trails.
One important thing to keep in mind is that your property’s value will be somewhat dependent on the condition of the golf course itself. In other words, living near a golf course that is generally in disrepair isn’t likely to make an investment property more attractive and could even lower your property value. On the other hand, a pristine, attractive golf course that’s in demand could be a huge value-add when it comes to rental income.
And you really don’t want to own a golf-community home if the course itself ends up closing. When a golf course closes, home prices in the related community can fall by about 25%. So, one extremely important thing to remember is quality matters. It might cost more to invest in a community that has a top-quality, popular golf course, but it can be well worth the peace of mind.
It’s also worth mentioning that studies have shown that homes in golf course communities tend to hold their value better than other homes. So, not only could a golf-community home be an attractive investment property, but it could potentially limit your downside risk in the event the market cools off.
