Golf was a booming sport for years. It finally wasn’t just for the rich or the oddly geeky suburbanite. Tiger Woods, among others, made the sport accessible and fun for a huge host of new people. The boom in golf grew right along with the boom in developing real estate. So it was natural that homes built on, or next to, golf courses became popular to build and to buy. But those days appear to be over, in a big way. So maybe don’t buy a home anywhere a golf course, ok? Many of them are underwater. It’s a real estate hazard. But that’s because the once wide interest in golf is fading fast. But that means the prices on these homes are going down. And they will likely continue to do so….
WHY BUY A HOME THAT WILL INSTANTLY BE WORTH LESS? UNDERWATER FOR YEARS
Lots of people bought homes near golf courses. Because, why not? Golf courses look really nice. And if you want to play golf a lot, what could be more convenient? Well, now people who paid premium prices are financing homes that have lost a ton of value. And now they’re watching that value continue to decline. Fore! Three!….. Suddenly your home is in the rough, for years. Lots of golf courses are going out of business. So there goes that lovely view, along with a third of your home’s value, overnight. Making matters worse, there are still a lot of newly built homes next to golf courses that haven’t been sold yet. That makes the drain even faster.
CLUBS NOW GOUGING HOMEOWNER MEMBERS TO STAY AFLOAT, VICIOUS CIRCLE OVER THE DRAIN
In the year 2017, more than 200 golf courses closed shop. But there are still more than 1,200 private golf clubs that include home properties or have them right next door. The majority of those were built in the 80’s and 90’s. But these clubs are feeling the pinch as well. So they are raising their dues and fees, some astronomically. One brutal example is the Fountains of Palm Beach. Homes’ values there dropped 50%. But residents’ annual dues have jumped from $5,000 all the way up to $24,000. That’s enough to give you the yips in a really bad way. Just look at video of Charles Barkley playing golf to understand…