There is a full written explanation below the "Comparison
||Tied together to Title to Property
|Cost of Initiation
||Can be anywhere between approximately
$35,000 - $250,000
|Upon Resignation, what happens to $$'s paid
in for Initiations?
||Will vary based on Club Policy. In most cases, a significant
% of the prevailing rate will be returned. This is different from
the typical 'Northern' Policy.
||Tied together to Title to Property and passes automatically
to the new owner at closing.
|Number of Members
per 18 holes
|Can vary between 225 - 400
The lower the number ... $$$
|Given - Every front door is a full member ... but not
all play golf. #'s will vary between about
560 - 844 front doors / 18 holes.
||Will vary from about $5000 - $10,000+ / year + Sales
Tax! The lower the # of memberships, the higher the dues.
||Divided by the number of front doors. Typically, dues
will run from about $1600 - $2500 a year.
|Food & Beverage Minimums
||Rarely, but when they do exist, they will approximate
|Rarely, but when they do exist, they will approximate
|Why F & B Minimums ?
|| Because, so often club owners are
'seasonal' and the club needs average monthly cash flows to maintain
high levels of quality service.
|Advantages - Disadvantages
||Ease of tee times versus Cost
||Affordability versus possible difficult tee times in
||Rarely transferable. If you do rent, chances are the
Tenant is building and has already joined.
||Almost always transferable at a cost of about $100
transfer fee paid by the Tenant.
This is a detailed explanation of golf memberships
in the Naples area. But by the time you are finished, you will have a
good knowledge of how it works.
The Naples area has more golf courses per capita than any other area in
the US. I am going to take liberty here and add Bonita to the Naples area.
It would seem that almost all major communities, and even some small ones,
have at least one golf course. It can be expensive but it can also be
very affordable. Affordable versus Expensive both have their pluses and
minuses. But there is something for everyone.
There are four types of golf courses: (1) Public,
(2) Bundled, (3) Equity and
(4) Your Favorite. Bundled is a form of equity
but for sake of definition, I will keep them separate.
Public is just what it means. Everyone understands the term. The course
is open to everyone. Players pay a greens fee and cart fee, which are
normally put together as one fee. Greens fees change with the time of
year, with higher rates in Season ... those months being January - April.
Summary: Membership bundled together with Title to the property,
requiring no initiation fee and annual dues of Between $1600 - $2500 per
year. Every front door in the community is a full member. Average number
of front doors will be around 800 in each community. Some more ... and
Looking at the $-numbers, Bundled is much less expensive than Equity golf.
Bundled is a form of equity. If you live in a bundled golf community,
your full membership privileges are 'bundled' together with Title to the
property and automatically pass to the new owner at closing without any
initiation fee. Every 'front door' is a full member with equal rights
to that 8 AM tee time. Typically, there are about 800 front doors in each
bundled golf community. (By Comparison, an Equity course would limit the
size of the full membership up to maximum of about 375.) Golfers would
pay only a cart fee to play golf. However, not everyone plays golf. A
bundled club would include a major golf course, club house, pro shop,
restaurant, fitness center, club pool, etc. Each 'front door' or owner
will pay annual dues which cover the annual Operations and Maintenance
of the club facility. Typically, annual dues will fall into a price range
of between $1600 - $2600 a year and most do not have food or beverage
minimums. And even if there was a minimum, it might be in the range of
$1000 a year, which is not a difficult price level. The annual dues are
over and above the condo maintenance fees or home owner association fees.
Bundled communities make for easy rental income as tenants can assume
the full rights and privileges as if they were the owners / members by
paying a Transfer fee of about $100 for the time period they are in residence.
The positive side of bundled golf is that it is affordable. Nothing comes
without a cost. You may not pay an initiation fee but the cost of that
initiation is buried in the price of the residence. It is still very affordable.
Some communities have residences that sell in the range of the low $100's.
The down side to bundled golf is that with so many front doors, getting
a tee time can prove to be somewhat difficult during Season. Tee times
are assigned by computer system.
Summary: Membership is by individual application requiring a sizable
initiation fee, most or all of which will be returned to you upon resignation.
Memberships are capped out at from 225 - about 375 per 18 holes with the
lower number of members / club requiring greater initiation fees as would
be expected. Annual dues may be in excess of $5000 as annual O&M is
divided between fewer members (than bundled). Getting tee times is not
the problem that can be encountered with a Bundled community.
From the starting gate, Equity is a different situation fropm Bundled
golf. But it is handled very differently from the cost of an equity membership
in the north. Up north, you pay a sizeable initiation fee to join a club
and you 'kissitgoodby'. There is rarely a refund when you resign that
northern membership. Major clubs in the Naples area will also have a sizeable
initiation fee. However, as people frequently move from one community
to another in the Naples area, Equity initiation fees are refundable.
The timeframe in which you are refunded can vary from 'immediately' to
a ratio of 4:1 ... meaning for every four new members, one outgoing member
is refunded. As membership caps are maxed out, this ratio lowers. Depending
on the maturity of the club ... maturity meaning, is the Developer still
in control of the club or has it been turned over to the membership ...
the resigning member may get back a (a) percentage of what was paid for
initiation, (b) a 100% refund of what was paid or (c) a percentage of
the prevailing rate, not to be less than a or b, depending on the rules
and regulations. While a Bundled club might have 800 'front doors' as
full members, an Equity club will typically have up to about 350 - 375
full members. As there are fewer members, it is far easier to 'walk-on
and get a tee time. In some cases, the number of full Equity members will
be much lower than 375, as in 225, but the costs will be much higher.
(Someone has to pay the expenses !) Initiation fees might range from $40,000
to as high as $250,000 ! As there are fewer Equity members than in a Bundled
club, annual dues will likewise be higher. Annual Dues may run from about
$5000 upwards. A percentage of the Equity clubs will have more than one
golf course with a limit on the number of members per 18 holes. The majority
of the clubs will require residence in that specific community. There
are exceptions to this requirement.
Is the one you are playing 'today'!!!
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