As a result, almost all the premium is confined to those residences fronting onto a golf course. This contrasts with the impact of parks, which in the April issue of Parks and Recreation was reported to extend out to 500–600 feet (about three blocks), and for larger parks the influence tended to extend to approximately 1,200 feet.
Hence, there is relatively little benefit to be gained from living proximate to a course unless there is a view of it. As a result, almost all the premium is confined to those residences fronting onto a golf course.
Real estate developers knew that they were in the business of building, not operating, golf courses, so they sold or gave away their interest (and liability) in the clubs. Often developers sold shortly after closing all the homes in a community and moving onto another location and another new course.
Real estate developers built course after course as golf's popularity soared in the 1990s-2000s. It was a successful tactic that added thousands of courses across the U.S., many notably longer and more challenging and that consumed more total acreage than courses had traditionally.
Profitable golf courses are generally selling for six to eight times EBITDA, while courses that aren't profitable tend to sell at 0.8 to 1.4 times revenue.
Golf course properties typically have great resale value, selling at two to three times that of an average home – which is a magnet for investors.
As with most property types, golf courses can be valued via the income approach, sales approach, or cost approach. Each method has its limitations. Given the specialized nature of golf course properties, the application of the comparable sales approach is preferred.
Research as far back as the 1990s has suggested that the presence of a golf course increased nearby home values by 7.6%. More recent studies indicate that the value decreases significantly as the distance between the home and the golf course increases.
There are so many wonderful advantages to living on a golf course or in a golf course community – from the high property values and quality school districts that usually are nearby, to the other community amenities and golf at your fingertips, living on a golf course is living the dream.
"Anyone on the golf course or nearby is at risk. Finally, pesticides applied to the turf may run off into surface waters or leach down to groundwater, which can then expose people to contaminated drinking water. These people may live far from the place where pesticides were used."
A study done by the National Recreation and Parks Association found that properties that view a golf course, even if they are not a part of that golf community, have 15-30% higher property values.
The cost to achieve the condition players expect — or will tolerate — ranges from about $500,000 a year for a daily-fee course to $1,000,000 a year for a private club, estimates Bob Randquist, chief operating officer of the Golf Course Superintendent's Association of America.
The most obvious drawback to living on a golf course is the constant activity behind your home if you live directly on a fairway or green. There are busy parts of every neighborhood, but few involve golf carts and a steady stream of people as early as 5 a.m. on every possible day the weather allows it.
Here are some of the top benefits of living in a golf course community.Age-Restrictions. There are often age restrictions within golf course communities. ... Pools & Other Amenities. ... Planned Events. ... Properties Look Great. ... Neighbors Are Farther Away. ... Tee Time Availability. ... Amazing Views. ... New Friends.More items...•
Premium prices Another study put the premium for living near a host of the Open Championships at 140% more than the average, while a third suggests being near a golf course – out of all the sporting venues – adds the most value to a home; double the national average.