Florida Retirement Buzz

A large percentage of Florida retirees are faced with the important decision of whether to settle in a retirement golf community - Florida style.

If you are like a lot of perspective retirees, you may be considering the question, “Should I make the leap to Country Club Community or Not?”

If you are considering buying your retirement home in a country club/golf course community, first consider which of the following two categories you fall into:

1. You are an avid club type person, will play golf and tennis frequently, aquacise in the swimming pool, and eagerly participate in planning and attending the other recreational and social functions that a club membership offers.
2. You will not have a club membership, but will really enjoy financially subsidizing your neighbors that fall into category 1 above!

Communities built around golf courses generally have a Master Association and several (often many) subsidiary homeowner or condominium associations. Let’s assume that the annual dues for your individual cluster association in such a community are $8000. Usually, one will find that half or more of their annual fee will go to the Master Association as an assessment. Right away you see that you and your cluster association management have lost control over how that part of your money will be spent.

The Master Association will use the money that they get from the clusters to maintain the infrastructure related to the common areas. These expenses include administration, security, sidewalks, roads, taxes, salaries, etc. Obviously, many of these expenses are necessary for access to and maintaining security for the golf courses, and hence to the benefit of its members. Thus, they will be much higher in a community that has a golf course or two than one that does not. You, as a non-member of the club, are in effect subject to “taxation without representation” or benefits.

There are at least two obvious ways to avoid the above scenario. One is to buy a home that is not part of any homeowner’s association. However, most new developments are set up with a homeowners association and associated fees.

The other is to buy in a non-golf course community. About the only real advantage that a non-member gets in a Florida retirement golf community is more open and spacious surroundings. This has value for some people, particularly when so many homes in Florida, even new ones, are built on tiny lots. Also in some instances, golf course communities may come with a more prestigious address!

 This topic is covered in greater detail in the new, 2007 edition of The Florida Retirement Book.