Potential Pitfalls in Purchasing your Golf Course Condo
Buying a golf course condo is a serious investment, so careful consideration should be given before going ahead with your purchase, and you should be aware of some of the potential problems that can c...
Buying a golf course condo is a serious investment, so careful consideration should be given before going ahead with your purchase, and you should be aware of some of the potential problems that can come with that perfect golf course home.
Seen as luxury accommodation, you can expect golf course condos to be up to three times the price of similar properties in less ideal locations. However, you should still make sure that the price you are paying is a reasonable one. A good indication of value is to look at the course fees for the golf course the property is located on. There should be a correlation between the cost of playing on that course, or membership fees, and the cost of the condo. Compare various courses and properties to ensure that the price you pay is not overly exaggerated. You will find cheaper properties on out-of-town golf courses, which will correspond to lower golf course fees. However you should note that if you are buying for investment purposes these properties will appreciate at a slower rate than those on courses closer to downtown areas.
A combination of rising real estate value and falling profits in the golfing industry has meant the closure of a number of golf courses in recent years. When investing in a golf course condo, you need to look for signs of financial stability and a long term commitment from the golf course owner. If the owner sells up or goes bankrupt the value of your property will plummet and you will have no guarantee that the land will continue to be used as a golf course. Instead of the lush green fairway you dreamed of, your view may quickly turn into a cramped housing development.
There are number of factors to check when before you sign for your property. What are the maintenance fees for the condo, and is there any guarantee that these will not increase dramatically after you have bought your home? Check what percentage of condos in your block are rented out. A high percentage might be seen as an increased risk to your mortgage lender. If you are purchasing pre-construction have a detailed look at the plans. Once the course becomes overbuilt the value of your property will decrease as the course becomes less popular with golfers. Although a golf home can be a dream come true, it is wise to be aware of the risks and potential problems you may encounter and be sure to ask all the right questions before you make that considerable investment.
See also:new home buying tips guide
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Dan Maynard is an Internet marketer and web content publisher.