Sunday, January 9, 2011

Golf foreclosure


A few years ago I posted that anyone purchasing in a new golf community should think twice because you never know what's going to happen to a golf course, especially in an economic crash. The first victim was Mountain View golf course in Corona. All those homes that previously had a beautiful golf course view are now looking at acres of weeds. We all know what that did to the property values.

The latest course to fall was Dos Lagos in South Corona. I figured that this place would go belly up because of the fact they could not afford to even build a club house. B of A finally foreclosed on the golf course. So far they are keeping it a golf course. They have brought in a management team to run it for them. I suspect they will try to sell it, after all Banks are not in the biz of running golf courses. Especially once they find out how much money they will lose on this thing. The big question for the homeowners around it has to be what's going to happen to it. Golf courses cost a fortune to maintain. With a lot of competition for players, courses have been lowering their green fees for several years now. Making it harder and harder to stay in the "green". If the course cannot make any money, no one will buy it as a golf course. They might if they can bulldoze it and throw homes on it though.

So I will repeat my warning about golf course communities. Be careful, just because it's a golf course today, does not mean it will be a golf course next year!

2 comments:

angelo h said...

This is a great place to have fun specially playing golf.

real estate ph

Martin Burtin said...

Sounds like a perfect storm for golf course's to go kaboom too. Fewer players and they spend less per player in this economock recovery. Water prices rising. Regulations and gummint bureaucracy rising, causing cost of ownership and management to soar. Exit strategies such as turning the course into a housing development or mall, opposed by zoning, planning, HOAs, etc. I imagine golf course owners are considering abandoning their properties and moving out of state.