New 65k, second hand low 30’s (maybe lower if you’re lucky).
Second hand down from 50k few years ago ie great time to buy one

Can you still buy new memberships, or do you mean 65k was the price when memberships were first sold by the club?

New 65k, second hand low 30’s (maybe lower if you’re lucky).
Second hand down from 50k few years ago ie great time to buy one

Can you still buy new memberships, or do you mean 65k was the price when memberships were first sold by the club?

 

No it’s the secondary market.

$25k was the first price charge for (I think) 250 memberships. That was back in the mid 90’s so was a lot of cash then but with long waiting lists at many of the top courses in Sydney at the time many people jumped at it.

Oatlands is worth a look for the right money and I think they have some deals on to try and get the younger ones in.

$25k was the first price charge for (I think) 250 memberships. That was back in the mid 90’s so was a lot of cash then but with long waiting lists at many of the top courses in Sydney at the time many people jumped at it.

$25k was and still is a large sum but think back to 1994….the internet wasnt mainstream nor were e-mails….they were 5+ years away….scary…the price of the shares for Terrey Hills are just that, a share in an entity that has the right to use the course.

From my limited knowledge of the deal it is in the form of a debenture and besides supply and demand affecting their worth, other potential issues include not having complete control of the actual golf course and its assets at the end of the day.

As people become time poor, sell their Northern beaches holiday pads and/or feel that they need to bail to re-coup something the individual shares over time have climbed to $65k and are now back to early $20k’s. The problem is though that as more and more members want out and “cash in” it is quite conceivable that the price will actually drop further. If this is the case at some stage you’d expect the club to stand in and artificially prop them up. Why anyone would pay upwards of $65k for a golf membership in Sydney is beyond me. These are not investments, they do not appreciate.

Yeah for those with the $$$$ it is getting to the level that it is attractive to join-$20k or even less definitely, but to look at it as a money making exercise or something you can cash in later-forget it!

Imagine being $40k down on a golf membership.

How many thousand people in Australia buy a 80k car only to sell it for 40k in 3 years time.

You are pretty well spot on with your assessment Nikey, although Malvern also makes a good point.
On top of that plenty of people have paid the $30k plus to join the Lakes which of course they will never see again.
It’s a different model but not without its positives.
For the guy who first started this thread it would be an ideal time to buy in, he almost certainly would not lose from it

You are pretty well spot on with your assessment Nikey, although Malvern also makes a good point.
On top of that plenty of people have paid the $30k plus to join the Lakes which of course they will never see again.
It’s a different model but not without its positives.
For the guy who first started this thread it would be an ideal time to buy in, he almost certainly would not lose from it

I think you, malvern and I are agree in what we’re saying although we’re saying it differrently.

In most cases its a great time to buy anything that still offers everything it originally did for a third of its price. My point is that in the case of a golf club its not an investment. Why someone could buy a share or share’s thinking that in the future they’re going to sell them for a profit is in my mind madness.Sure pay what you think is fair value based on you using it and enjoying it for what it is.

Just look at Twin Creeks…...............

Again, mainly I agree with you Nikey.
Only point of exception is that virtually every person (if not all) who bought and sold a Terrey Hills membership between 1995 and 2008 would have made a profit. Not so much since 2008, but with time it’s possible, perhaps likely, the cycle will reverse.
Personally, I didn’t look at it as a profit making exercise.
When I joined I knew that I may not see any of the joining fee again, but also potentially may make a profit if I ever decided to sell it…unlike every other high end course in Sydney. At the same time I had instant access to the course with no waiting time and none of the bullshit that goes with getting referees etc.
The other courses I have enough connections with to join are Royal Sydney, Avondale and Elanora. These three have roughly the same upfront fee of $13k which I’m going to kiss goodbye.
I’ll probably join Elanora one day but not for a few years. If the sale price at TH comes back up I’ll put it on the market, hopefully break even or make a profit then move over having played 10 years or so for only the cost of the annual subs…not a bad system if it all goes to plan.

Again, mainly I agree with you Nikey.
Only point of exception is that virtually every person (if not all) who bought and sold a Terrey Hills membership between 1995 and 2008 would have made a profit. Not so much since 2008, but with time it’s possible, perhaps likely, the cycle will reverse.
Personally, I didn’t look at it as a profit making exercise.
When I joined I knew that I may not see any of the joining fee again, but also potentially may make a profit if I ever decided to sell it…unlike every other high end course in Sydney. At the same time I had instant access to the course with no waiting time and none of the bullshit that goes with getting referees etc.
The other courses I have enough connections with to join are Royal Sydney, Avondale and Elanora. These three have roughly the same upfront fee of $13k which I’m going to kiss goodbye.
I’ll probably join Elanora one day but not for a few years. If the sale price at TH comes back up I’ll put it on the market, hopefully break even or make a profit then move over having played 10 years or so for only the cost of the annual subs…not a bad system if it all goes to plan.

I’m not looking to disagree and seriously I’m glad your happy with how things are going. The course there is great and you must have bought in at a good price-all good for you but the opportunity cost of putting $40-$60 on the table over the last few years and hoping to break even after 10 years paying subs only is a weak investment in my eyes.

In theory and yes I’m talking theory for $60k on the table you can have say a Lakes membership (using the most expensive standard joining fee in Sydney and based on getting through the process etc) and have $30k spare to invest in real wealth creating options. using your example after 10 years, yes I’m paying yearly subs and yes sunk $30k for the privilege of being a member but I have another $30k working its guts out for me over 10 years. Not including leverage potential and the tax benefits along the way, I’m seeing that $30k turning to $100k after 10 years…best of both worlds…..no brainer really

Good points Nikey but most haven’t paid 65k (mainly in the 25-50 range) and for most up there that is a drop in the ocean up anyway.
I play at the Lakes regularly with one of my mates and it’s pretty busy. Every tee time booked, starter organising you, often paired up at the last minute with a single or two that you don’t know.
Up at Terrey I just turn up, pop my head into the pro shop and tee off, usually with only a few others on the entire course…no brainer really.
You’re turning 30k into 100k over the next 10 years?
How?? Property? Shares? A savings account?
These days your are just as likely to have 30k in ten years time….may as well buy a golf membership with it

Theguru,

At 20-25k I think the TH deal is pretty compelling.

Like you, in a low to going lower rate world, the amount of capital protected options available to generate a return are limited, so if I get my debenture money back in 5 years that will be a great result (for a keen golfer).

What sort of yearly subs are you looking at for TH, if I take a visitor up for a game on a Sunday, how much is the green fee?

Nikey, we need to talk if you can turn 30k into 100k, would I be making little pills?

Probably more like low 30’s Malv, but each one for sale is at a different price. Personally, I think it s a pretty good deal and likely to go up over the next 5-10 years. However, nothing is certain these days and it may continue to go down and just when it bottoms out nobody knows.
Interestingly, I’ve got the paperwork for Manly and its not that cheap either: 13k plus a few admin fees. So much so that I’m thinking about buying another TH membership for my wife, selling that in a few years time and then both of us join either there or Elanora.
Subs $3300, visitor $90-$110 depending on time of week or with discount vouchers. Sunday is $90 I think.

have you tried stone cutters ridge or lynwood. I think they will be about 30mins from your place on the M2/M7.

Theguru,

At 20-25k I think the TH deal is pretty compelling.

Like you, in a low to going lower rate world, the amount of capital protected options available to generate a return are limited, so if I get my debenture money back in 5 years that will be a great result (for a keen golfer).

What sort of yearly subs are you looking at for TH, if I take a visitor up for a game on a Sunday, how much is the green fee?

Nikey, we need to talk if you can turn 30k into 100k, would I be making little pills?

MWRLFC Premiers 2013

Little pills will turn $30k into $100k in about 4 weeks if you were that way inclined which I’m not.

Shares, options, CFD’s & derivatives mainly (and I said that it would need to work its guts out for you to hit $100k) i.e) You would need to be active in making it happen.