The Lot Game
Issue Date: 2004 Premier Properties Guide, Posted on: 10/26/2004
by Scott Kauffman
Issue Date: 2004 Premier Properties Guide, Posted on: 10/26/2004
by Scott Kauffman
- Even as the U.S. economy sputters and spurts, golf course real estate has remained a white-hot investment and shows little sign of cooling
- Indeed, at a time when many people are increasingly down on the dow, a growing number of Americans are going to golf as a safe and smart place to invest in one's future. And wisely so, if a recent report by the Golg Research Group bears out. It finds that, during the recent recession when the real estate market has been American economy's saving grace, golf course real estate has done extrodinarily well for both builders and buyers.
- Golf course real estate has outperformed the overall real estate market by 20 percent over the past five years, and the average price of a fairway home is now 2.5 times higher than the national average of all homes.
- "Of course the overall real estate market has done marvelously," Hegarty adds, "but golf course real estate has done even more marvelously."
- That's one reason golf course communities are so treasured. Besides the many first rate, resort style ameneties being offered these days, and the security and value that goes with living in a gated enclave, the vast acreage of open space is probably the primary selling point at many golf course developments - reflected by the fact that more than 50 percent of golf course homeowners don't even play golf.
- "That's the reason golf course homes go up in value," says John Reed, a longtime golf course developer in Hilton Head and Bluffton, S.C., whose Reed, Rowe and Zinn team is currently involved with the Berkeley Hall and Hampton Hall developments. "When you put a nice golf course in a community, it's a stamp that says (the developer) contributed 200 acres to green space and open space, and has invested to this space. Even if you're not golfer, you'll enjoy this value. It's an investment that diversities their portfolio and gives them a lifestyle option."
- The Concession is Daves' initial foray into golf development business, and he's extremely optimistic about the demand for lots and memberships at this private club. Says Daves: "When investors knew Jack wanted to buy a home, it made it easy for others because he's made a lot of people a lot of money over the years"
- "And we Americans love our games, and golf is the perfect game. Men and wemon can play it, and it's the only sport where you can play with professionals. Then of course there's the natural beauty. People love green grass and trees. It's got so much going for it."
- "In the near term, every indication is there is more depth and breadth to this buyer's market than anyone anticipated," says Randy Lyon of the Ginn Co., who has been previously involved with such acclaimed projects as Isleworth and Lake Nona in the Orlando Area, "nothing to me indicates this is a bubble"
- Geoffredo says with a smile "I can't argue with success"
