Buying a Golf Property Overseas

Introduction

Such is the popularity of homes on golf courses that three-quarters of British buyers don’t even play the game, but like the facilities, security and ambience that usually come with a golf course.

There is no shortage of new golf developments springing up around the world from Spain to South Africa and Canada to the Caribbean to tempt Britain’s four million players. On the Costa del Sol, for example, more than 100 new courses are under construction with thousands of houses and flats surrounding their fairways.

One of the beauties of buying on a golf development is that you create an instant social network of like-minded friends and will never be short of a neighbour in search of a round.

Golf properties also offer excellent rental potential. Cheap flights now mean that even golfers on a tight budget can afford to travel the world in search of a game and most will base themselves at a good resort.

There is, however, a huge shortage of quality. The best are fantastic, but the worst are well below par. Buy on the right development and the value of your home should rise and you will have many happy years there. Choose a poor golf resort and not only will you be unhappy there, but you will also struggle to earn a decent rental income and its value will stutter. Househunters, therefore, need to do their research thoroughly before deciding where to buy.

Prices vary dramatically, too, from a £30,000 studio on an Ian Woosnam designed course in Bulgaria to a £5 million villa on Royal Westmoreland in Barbados where, coincidentally, Woosnam has a home.

Where to buy

As with everything it is a question of location, location, location. A good starting point is to look in an area you would enjoy spending time in regardless of whether it had a golf course. Even the keenest players will not want to spend all day playing golf – and nor will their families – so there must be other things to do. The South of France and the Algarve have great beaches, while Florida and Las Vegas have almost endless attractions. There must also be other good courses nearby, either for your own enjoyment or for your guests who will usually want to play at a variety of clubs.

The area must be easy to get to, either with good airports or good roads – save the longest drive for the course not the journey there. If you want somewhere you can hop across to for a long weekend, France, Spain and Portugal are a good bet. Thailand, South Africa and the Caribbean are for longer visits or letting to tourists.

Climate is crucial. Ireland, for example, is home to many of the world’s finest courses, but the weather is unpredictable. Just as rain and wind make play uncomfortable, so does extreme heat – lugging asset of clubs for four hours in August on the Mediterranean can be unbearable. Similarly, in areas where there is little rainfall it will be expensive to maintain a golf course to an acceptable standard without, and homeowners will have to foot this bill.

The costs

Building a golf course is a huge expense for a developer and this is reflected in the price of property. Expect to pay at least 20 per cent more for a house or flat on a golf resort.

As with all properties on resorts there will be charges for maintaining communal areas, as well as local council taxes and utility bills. On a golf development, you may also have to pay to play. The crucial questions you need to ask the developer before buying are: What are the annual costs of membership? What does the fee entitle me and my family to? How much will guests pay to play the course?

The answers can vary dramatically. Some resorts will demand an initial joining fee of several thousand pounds and an annual subscription, others will offer free membership to one owner but charge their husband or wife fees. Guests will usually have to pay to play but on a reduced green fee.

Speak to other homeowners and ask them if there are any hidden costs and whether the fees represent value for money.

Selecting the right development

Once you have chosen a region, play as many courses as you can and discard those that are too easy, too difficult, too hilly, too wet, too dry or too busy. Remember, if you buy a home you will be playing the course for many years to come. Then, draw up a shortlist and speak to other members and check online reviews for as many independent opinions as you can find and avoid those with a poor reputation.

It is equally important to find a home that you like built to a good standard by a reputable builder, after all, you will spend more time indoors than on the course.

The same rules apply if you are buying a property for rental income. You need to buy on a course that your guests will enjoy playing to ensure that not only do they come back year after year, but they also recommend it to golfing friends. Visitors will want more than just a good course and a comfortable house or apartment, but also plenty of other facilities nearby, such as bars, beaches and restaurants. Golfers are generally active people and are likely to play tennis, swim or sail as well.

Below, we look at some of the destinations that are popular with British buyers:

Spain

The variety of courses on Spain’s Costa del Sol has earned it the nickname the Costa del Golf and almost every new housing development comes complete with a course. Just inland from Marbella are excellent courses and the town itself has plenty of beaches, restaurants and nightclubs to satisfy your family and guests. Just north of the town is Valderrama, one of the best courses in Europe.

Probably the best known Spanish golf develepment is La Manga, which also offers a range of other sports – the England football team has often used it as a training base before big tournaments.

If you are looking for somewhere less crowded, golf is becoming increasingly popular on the Cost Cálida and inland around Barcelona and Valencia.

Portugal

The Algarve is also a golfer’s paradise and has stunning beaches and excellent nightlife. However, prices here are quite high, whereas to the northwest, on the Atlantic coast beyond Lisbon, there are excellent new developments, many with stunning golf courses, such as the links at Praia d’el Rey. The weather is slightly cooler, the sea a bit more rugged, but prices are generally lower. A new airport is planned for the region and EU money has built new motorways. The Portuguese are keen horse riders and many golf developments also have excellent equestrian facilities which owners can use.

France

There are superb courses just across the Channel at Hardelot and Le Touquet and golfers living in the South East of England can hop across on a ferry, play 36 holes and still get home before the pubs shut.

The French treat golf as a game for all the family and it is not uncommon to see parents with young children – even mothers with pushchairs – on the fairways. But France is also home to one of the world’s finest courses, Les Bordes, in the Loire Valley. The South of France obviously enjoys a milder climate and new courses are springing up on the Cote d’Azur and there also excellent courses around Bordeaux and Biarritz in the south west.

North America

Scotland may be the birthplace of the great game, but Americans have produced many of its superstars. There is no shortage of courses throughout the country, but Florida is the most popular destination for British homebuyers. The climate is ideal for year-round play, flights are cheap and regular and there are plenty of attractions for non-golfers. Orlando is a magnet for househunters, not only for the quantity and quality of golf resorts, but also for the dozens of theme parks nearby.

Las Vegas is growing in popularity and again, the casinos, shows and restaurants are an added benefit.

Canadians are also keen golfers and buyers in some resorts, such as Humber Valley in the Appalachian Mountains in Newfoundland, can play golf in the summer and ski nearby in winter. This is an ideal way to maximise rental income throughout the year.

The Caribbean

Golf courses are springing up across the Caribbean islands, but two resorts on Barbados – Royal Westmoreland and Sandy Lane – are among the best known. Villas and apartments are not cheap but the courses are stunning. Although the Ocean’s Edge resort on St Kitts does not have a golf course, it is just five minutes’ drive from Royal St Kitts Golf Club, which is a beautiful course.

South Africa

South Africa is one of the most popular destinations for British homebuyers, and developers there are building dozens of new courses. The hottest spots are around Cape Town and on the Garden Route, between Cape Town and Port Elizabeth. Fancourt in Ernie Els’ home town of George has three stunning courses. It is also next door to George Golf Club, which is a beauty. For better value, look around Durban where the climate is more tropical, the coastline stunning but property prices are lower. Direct flights from the UK are expected to start soon.

The rest of the world

Germany has more golf courses than any other European country except the UK, but has never been a popular destination for British housebuyers. However, the climate is good and the countryside, particularly in Bavaria, is beautiful.

Thailand is a long flight from the UK and jet lag can be exhausting, but the country boasts beautiful courses, particularly on the island of Phuket, which has many other attractions. In the rainy season, the humidity can be unbearable and players must make an early start to avoid the worst of the heat.

Bulgaria’s newest 18-hole golf course, being designed by Ian Woosnam, is currently under construction. Many believe soaring prices in Bulgaria have created a bubble that will shortly burst, but prices are still far lower than more mainstream European resorts.

The Azores is a group of nine islands off the Portuguese coast and São Miguel, the biggest, was recently named the world’s undiscovered golf destination. Developers are about to begin building apartments and villas on the island’s two incredible courses – Batalha and Furnas – and prices will be lower than on the mainland. The islands’ other attractions include whale watching, diving and walking.

Maximising rental returns

The key to successful letting is to follow demand not supply – seek out a location where there is a shortage of rental properties. The simplest way is to check availability of existing homes on websites, such holiday-rentals.co.uk which has a golf property section.

Buy on a course that already has a good reputation among golfers and is close to other good courses. When players go on a golf holiday they usually want to play more than one course.

Other facilities are important, too. Bars, restaurants and good sports facilities nearby will attract more visitors and a private pool can increase the rental value of a holiday home dramatically.

Target your rental market by advertising on websites and in magazines that golfers read – and in your local golf clubs at home. Include in your advert details of other local courses, facilities and attractions and make sure you leave detailed maps, phone numbers and useful local information in the property.

As with all rentals, furniture and fittings must of a good standard and adding small extras, such as a bottle of wine, a pint of milk and a loaf of bread will please your guests but cost you very little.

Guaranteed rental schemes

More than 40 years ago the French government introduced a scheme to encourage holiday home owners to let their properties to tourists. Owners were offered tax incentives and the scheme has taken off across the world. Under the arrangements buyers hand their properties over to a management company for a set period of time – often as much as 10 years – and they are let to holidaymakers in return for a guaranteed income. Owners are allocated several weeks a year for their own use. The rent is usually quite low – about 4.5% of the property’s value per year in France – but the income is regular and guaranteed and cuts out the hassle of managing bookings, changeovers and repairs from back home. In the pretty village of Roquebrune in the South of France, you can buy a villa on a golf course for €577,500 and lease it back to the developers for 11 years, earning a guaranteed yield of 3.9%.

And finally...

As with any property purchase, it is vital to ensure you have researched all aspects thoroughly and are in possession of all the relevant facts.

When deciding where to buy and calculating how much you can afford to spend, make sure you factor in purchase costs and fees, which can often amount to approximately 10 per cent of the purchase price – more in some countries, such as France.

Make sure that legal documents are checked by an English speaking solicitor who understands the law in the country you choose. In particular, inheritance laws vary throughout the world and you may need to change your will.

Also, take independent expert financial advice. Many foreign lenders grant mortgages to British buyers, but interest rates are often higher than our own, so you need to fully understand the costs of borrowing. Consider consulting a specialist foreign exchange company, too, as their rates are often cheaper than high street banks. Even a small difference in the rate translates to a lot of money on a £200,000 deal.

Check the tax position, especially if you are going to earn income from rentals. Some countries have agreements with our Inland Revenue that prevent owners paying tax twice – once in the country where the money is earned and again when it is brought back to the UK. Expert advice is vital.