Share in Golf Club

Smcgie

Has anyone ever bought one? If so what experience and what gain did you make on your share?

I'm wonder what the dividends would be also (if any).

There is an opportunity of buyin a stare in a top class and designed course.

The share opened 2 years ago at 6500
Today they are worth 17000
But the club wants to extend its shareholders from 650 to 800 and are going to offer the new buyin at 10000

Any thoughts?

Idu

Who puts the value on the share and how?

Smcgie

That I don't know. I would like to know the debt if any of the club. I imagine the share price is based on the overall value of the clubhouse land etc.. The clubhouse is still under construction and to me its seems like there in need off €

ixus

Japanese golf boom lands in the bunker, beside the economy

Clubs that cost pounds 450,000 to join are going bankrupt by the day, writes Richard Lloyd Parry in Tokyo

Richard Lloyd Parry

Sunday, 3 May 1998

Golf club membership is something that is/has gone hand in hand with economic booms and busts. There are a number of golf clubs that are closing down (Luttrellstown is due to close) and you also have the likes of the K-club offering daily specials. I know people who purchased membership/shares in Carton for significant amounts whereas now they could be purchased for much much less.

The only potential value in purchasing shares was/is for the land to be sold on or the prestige of joining a certain club. There's a certain club in Dublin, who's name escapes me, where the shareholders had voted to sell the land for development but then the developers recently pulled out due to economic crisis.

It would seem like the club you mentioned are short funding.

Smcgie

Thanks Ixus... Interesting read. Anyone else have experience of golf club shares?

soddy1979

If the share was worth 17000 they wouldn't be being sold for 10000.
Golf clubs are having a tough time of it lately. I forked out 6K joining fee to join my club two years ago. They now offer a deal where you don't pay a joining fee (only the annual subs) , but you don't get a vote. I think I'd sacrifice my vote to get my 6K back.....

MrMatisse

I also would want to know where the value of 17k has come from.

A lot of golf courses have been built in Ireland,and the economy is a mess i dont see why the price would have gone up by almost a factor of three at all really from two years ago.

I wouldnt view this as an investment also, more of a luxury purchase.

tibuan

That's a huge thing to get yourself ready. I've been dreaming to have one someday.

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