Consider These Points When Deciding to Purchase a Home on a Golf Course
In years past, golf has not been the most accessible sport. Widely regarded as “the gentlemen’s game,” it was enjoyed by men of the upper class as a way of passing time and businessmen angling for a deal with high-powered clients.
Today, golf is accessible to almost anyone. With the introduction of residential communities featuring a golf course, the gentlemen’s game has become something anybody could enjoy on a lazy afternoon, carrying their Sunday golf bag.
This easy access to golf courses may have more benefits than simply fresh air, nature, and exercise being down the road from your home.
So, how do golf courses impact the value of a residential property?
The Draw of a Golf Course Community
In a post-COVID-19 world, it’s no secret that many are reevaluating their priorities. Working from home, health and fitness, work-life balance, and spending time with people who matter to them have come to be more important factors in many people’s lives.
With that in mind, it’s not difficult to understand how having a golf course nearby can be a net positive. Some of the greatest benefits include:
- Having a luxury form of exercise at your fingertips
- Not having to go far to play a round of golf with friends
- Plenty of opportunities to improve your game
- A clubhouse restaurant and bar down the road
- A reprieve from crowded, clustered properties
- Increased nature and wildlife in the area
Golf Courses Increase the Value of Nearby Properties
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.
Based on these findings, we can comfortably assume that the presence of a golf course in a residential community increases property value and adds to the luxury of a home or neighborhood.
It’s worth noting that properties with a great view of the golf course earn a price premium compared to homes without views's prices in the ballpark of 5-12%.
That’s a significant difference, but rest assured: A house without a view in a golf course community is still of a noticeably higher value than one outside of the community altogether.
The Impact of a Golf Course Closing Down
Of course, there is a potential downside to the trend of golf course communities. Golf courses are a wonderful feature for a residential neighborhood, but it’s essential that they are maintained properly.
It can cost up to a million dollars to maintain a golf course. When a golf course is unable to financially support itself and closes down, it can have a devastating effect on the residential community.
What once was a beautiful, green expanse teeming with flora, fauna, and enthusiastic sportsmen and women becomes a barren, brown, and wild open field that’s more of an eyesore than an attraction.
In these cases, potential buyers may view the abandoned golf course as a risk, a danger, or simply an unattractive feature in the neighborhood, driving down the value of properties nearby.
Shut-down golf courses can be repurposed to provide benefits to residents, but this can be a long and expensive process in itself.
Is it Worth Purchasing a Home on a Golf Course?
Whether or not you partake in a bit of golf, there’s no denying that the presence of a thriving golf course in a residential area has a positive impact on the value of residential properties.
While this can be a huge bonus for homeowners in golf course communities wishing to sell their properties, the risks that come with a golf course closing down need to be seriously considered too.
It’s important to note that the members of the community also play a role in the upkeep of the golf course. Residential committees need to place emphasis on garnering interest from members of the community, whether they’re interested in becoming golfing members or simply improving the aesthetics of their neighborhood and the value of their own properties and residential area.
Jordan Fuller is a retired golfer and a businessman. He loves playing golf, as well as writing about it on his golf publication site, https://www.golfinfluence.com.