If you are keen to get a club membership, do your homework first and understand the market. The Sunday Times highlights what to look out for.
As with any big-item purchase, pick a club that is within your means. Besides the membership price, factor in the monthly financial commitment needed to maintain the membership. This includes subscription fees, caddy or buggy fees, and food and beverage levies.
Tee-Up’s Fion Phua warns against taking out a loan to buy a golf membership.
2. TRANSFER FEE
Find out what the club’s transfer fee is, as it will affect the membership’s resale value. Assuming the membership is $20,000 and the transfer fee is $10,000, taking into account GST of $700, you would have to sell the membership for $30,700 to break even.
High transfer fees may deter buyers because they lower the returns, which would affect the investment value of the membership.
Ms Lee Lee Langdale of Singolf Services says the transfer fee at Warren is $10,000, and $20,000 at both Seletar Country Club and Orchid Country Club.
And don’t forget the broking agent’s fees, which range from $500 to a percentage of the membership fee depending on the club, she adds.
3. TOP-UP FEES
Ms Phua notes that golf clubs may require members to fork out a top-up fee when their leases get extended so as to do renovations.
For instance, Orchid Country Club members had to cough up a $2,000 top-fee when the lease was extended for seven years to 2030 from 2023.
The top-up fee was a hefty $31,000 per member at Sentosa.