Golf is a popular pastime for many people, but can a golf property abroad make a good investment for golfers and non-golfers alike?
It is easy to see why a keen golfer may be attracted to such a resort when looking for property abroad, but it is widely recognised that a large number of people who own properties within golf resorts do not in fact play golf.
The reason that non-golfers are attracted to golf resorts is that these resorts tend to offer a set-up that transcends the golf course, which itself is really only one aspect of the lifestyle.
Golf resorts often offer a range of on-site services and amenities, such as on-site property management and rental management, which include services such as housekeeping, gardening and repairs.
Security will almost certainly be included, which can be a key factor for those overseas property investors that are likely to leave their properties empty for long periods of time.
Golf resorts can also be slightly less exposed to market trends than standalone properties and offer a resort lifestyle away from the stresses and strains of city living.
If overseas property investors are considering a golf resort however, there are a few things to keep in mind.
Courses that are attached to hotels or resorts can sometimes be treated simply as a marketing tool to draw clients in to book accommodation. They can be poorly managed, and without a firm eye on the bottom line, many are run as money-losing operations.
Those looking to invest in a property located within a golf resort should ask themselves what their expectations are from the investment.
First, assess if the course is in good or bad condition. you want to be living near a course that you yourself would be happy to use.
Next, establish whether the management simply packs as many players through as possible with no consideration for playing experience: this helps to establish whether the focus is on providing a high-quality golfing experience or not. Depending on their objectives, this may or may not be a concern for investors.
Investors should also look at on-site amenities when buying. Obviously for personal use, owners will want to know if there are activities to keep them occupied when in residence. From an investment perspective, however, golf courses and other amenities can increase the value of an investment.
The higher the quality of the on-site amenities, the greater the likelihood of being able to rent your property – and at a higher price, too. You could, of course, buy a property with the same amenities but of much lower quality, and you will earn a correspondingly lower rental return as a result. The potential for capital appreciation is affected by the same considerations.
As with all property purchases abroad, investors should always seek professional advice before proceeding, you don’t want to get a bogie!