Golf property in Cork

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I'm considering investing in a new detached property on a high-profile golf course in Cork. Given its location, it's very hard to compare the property with others in the region, or even with other golf properties in Ireland. This makes it difficult to determine if it'sis a wise investment. The price seems inflated compared to other similar properties in the region, but the fact that it's on a golf course probably means you pay a premium price. I have been advised to buy at the higher end as these properties may appreciate better than the lower cost ones. Reason? Someone may eventually buy it as a "trophy" home. At the moment the houses are only available to live in 6 months out of the year- they can't be owner-occupied outside of this. We are hoping to get the house included in a rental scheme, where it can be rented out by the hotel, which forms part of the development, and those in the scheme receive a share of the rental income.

Has anyone any thoughts on property on golf courses and their growth potential?
 
Is this the new development in Kinsale? If so, then property in Kinsale has a premium above elsewhere in Cork as it is, so that needs to be factored. Are there any incentives for occupiers re use of hotel facilities or use of golf course/discounted fees?

Similar project (houses on golf course in Cork) would be Lee Valley Golf Club, Farran. There is also the new project on Fota Island that Flemings are building - but these are large detached house. Outside of Cork, there is the development on the grounds of Faithlegg House, Waterford.

I don't have any info on prices but personally, I would pay a premium for living/buying on the grounds of a golf course - peaceful surrounds (aside from golf ball flying through the window!) Do you want to elaborate on the % premium compared to other houses in the area?
 
The property is a detached, fully furnished and equipped 4 bed. Don't know the area very well but did a price comparison using myhome.ie and you're talking a 50% premium. You have free membership to the new 9-hole golf course (and not the existing 18-hole one). Nothing confirmed yet re hotel facilities.
 
50% seems a bit rich IMO but it really depends on the area. For example the new development in Fota wouldn't compare with prices for nearby Cobh or Carrigtwohill. It would be in a completely different league.

The fact that the house is going to be turnkey is also worth considering - time saving and it will mean that all houses in the development will be on the same playing field. Do they intend setting up a Management co to run the lettings, deal with the tenants and maintain the property and be on-site for turnover day? These all need to be factored. Consider the costs involved in engaging a Property Mgmgnt Co/Letting co to manage/maintain the property - especially for short lettings.

IMO use of the hotel facilities would be essential at a genuine premium of 50% and could really help with the letttings - at a minimum you would need for your tenants to be able to use the facilities for a small charge.

How many stars has the hotel? If it is a 4/5* hotel, it would also allow for a certain % premium and the quality/rating of the golf course/s is also relevant.
 
Management costs have still to be ironed out. The hotel is a luxurious 5 star hotel and spa and with an 18-hole championship golf course to "European Tour Standards". You've probably guessed where I'm talking about.

As a matter of interest, what would you be prepared to pay for such a property?
 
The planning for the Kinsale project is being reviewed so houses are not available there. I would guess that this is Foto.
 
Ya sounds like Fota Island.

Sheraton are opening there soon.
Quick answer to your original question,yes they are over priced.
Developer paid 40-50m for the whole lot so needs to get his money back somewhere.
If its not Fota you might tell us all!!

d
 
Sorry, as I'm only a recent subscriber I completely forgot about my posting. To satisfy your curiosity, yes it is Fota.

Diddles- can you explain the basis for your argument that they're overpriced?

Just wondering is it worth the gamble, given its prestige.
 
Hi Flame
What is the exact selling price for the detached?
Does it come under the holiday home scheme?

d
 
woods said:
Fashions change. What has prestige today may not have so tomorrow
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indeed, but i would have thought that golf has passed the "fashion" stage. Ireland has a good established reputation for its gold courses, and people are travelling from all over the world to play on Irish golf courses...
But, golf courses are growing like mushrooms on our dear planet Earth, so will Ireland still be able to attract players in the future or will players prefer going to some sunny location to play golf on also wonderfull courses?

while 50% premium is on the high side, it would be interesting to know what would be the yearly rental income for such a property?
Are management fees not huge?
 
 
woods said:
If the price that someone will be prepared to pay you for it is related to the number of people that play golf on that course
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We are talking about an investment property that will be rented, right?
so basically, the less players, the less rental interest the property gets, and therefore the resale value goes down (because of decreasing yield.) to a point at which the yield becomes attractive again for an investor.

As for capital increase in the future, your guess is as good as mine...

woods said:
I woud guess that it would more than likely be inversely related to it rather than the other way.
Click to expand...

so are you saying "the less players, the higher the property price is" ? (sorry i am not very good with negative logic)
 
I'm curious as to the 50% figure - compared to where? There isn't much property in/near Fota. I certainly would pay 50% premium on Cobh/Rushbrooke/Carrigtwohill prices. If you want to divulge the price we may be able to comment further.
 
Exact price has yet to be confirmed so I cca't reveal this.

Yes it's been confirmed that the property comes under the rental scheme but the value of this and the cost of management hasn't been laid out yet.

I know this may help determine whether it's a good investment or not, but I'd also be relying on capital appreciation to make this a worthwhile investment
 
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