Social Memberships, Golf Equity and HOA Dues - OH MY!
Palm Beach County Florida is full of gated communities and high in social clubs such as Mirasol, Admirals Cove, Abacoa and Frenchman's Reserve. Many of these communities feature different types of membership for homeowners with in that club. One of these types of membership is called equity golf membership. Member owned equity clubs of the most exclusive as well as the most expensive with memberships ranging anywhere from $5000-$250,000.
Equity is defined as ownership and the right to share in future profits or appreciation in value. An equity member owns a portion of the golf club along with all the other members. This gives the member rights to use the club facilities along with the rights to have a portion of the equity interest return when that individual leaves the club or relocates.
Non-equity clubs generally have an initiation fee, which is not returnable when the member leaves the club. Some exclusive clubs can separate out the fee into a portion of represents the refundable equity interest and a portion that represents a contribution to capital that is not refundable. Once an individual becomes a club member, he or she must pay annual dues based on the number of members and the cost of operating the club. Clubs with fewer members tend to be more expensive.
Some advantages to these equity memberships mean there will be more availability of playing tee times. Public golf courses may require that you reserve a tee time in advance but equity clubs don't require a reservation, and the fewer number of players make desirable starting times more available. [Source]
The condition of equity golf courses is generally better than that of public courses as there is more money available for maintenance. Facilities and food may also be of higher quality than on a public course.
Many gated communities around Palm Beach County such as those in Jupiter Florida and Palm Beach Gardens require joining the club. You pay a membership equity fee once and there is typically a social membership and the golf membership that is another feat. Some country clubs require that you also join a social membership. These types of memberships are large financial commitments so you want to review all of the requirements in a particular country club before deciding if that's the right move for you and your family.
Feel free to give me a call if you have questions on particular communities throughout Palm Beach Gardens and Jupiter. I would be happy to answer any questions on golf equity memberships and social memberships on each one.