Benefits of golf estates
Golf estate property investments are similar to holiday home purchases, in that investors should consider the lifestyle elements the property offers as well as the bottom line.
The quality of lifestyle on offer will make a huge difference to the value of the property, says Pepper, and because golf course estate properties provide a good lifestyle and a community atmosphere, their values tend to outpace the general market.
“Property prices in golf course estates generally attract a premium to the surrounding area, and that premium can be as high as 100% for the top properties in the estate,” Pepper says.
For example, if the median house price in a particular area is $250,000, properties in a quality local golf course estate could range between $350,000 and $500,000.Lifestyle features can include swimming pools, gyms, recreation facilities and even restaurants, in addition to the golf course itself. These types of facilities boost the attractiveness of the properties and, therefore, boost their value.
The benefit for investors is the access they gain to all of these facilities without having to pay exorbitant maintenance fees. Pepper says that management and body corporate fees for golf estate properties are usually on par with standard apartment and unit investments.
“Most courses will have body corporate [expenses] to share the maintenance costs of roads and common areas,” he says.
“However, the golf course itself and the facilities will generally be separately maintained and managed from the residential areas.”