I’m new in the South Florida area and noticed that in certain communities there are mandatory club equity membership purchase requirements. Most of them seem to be in the $70k range with another $15k-$20knin yearly dues.
I know these were big at one point as the lure of having a private golf and country club as part of your community seemed appealing.
That being said, I’m seeing a lot of short sale and foreclosure properties in those areas.
I have no interest in living in one as I don’t play golf enough to join but was wondering if anyone else has experience in these properties and the diffulties there may be in selling them.
Do you think these communities are going to struggle in the future and if so, do they have an exit strategy such as making the course public or selling it to a private entity?
Very difficult to sell, takes specific buyer, usually those properties have very high DOM.
Hi there I have also been seeing a lot of foreclosure activity in these areas and I was wondering do the banks ever foreclose on these with that $60 to $70, 000 golf club membership hanging in the balance? Or what happens to that membership requirement if they do foreclose?
Yes, they are dying and very hard to sell.. A couple have nice condos and houses that are going for 25%-50% of comparable condos/houses that have no such requirements.