by John Ruocco

     It is interesting that over the past few years, I have had several of my clients either buy second homes down South or simply pick up and move there. So, not surprisingly, one of the questions that has come up is how to finance the move: cash or mortgage? Do you sell your home up here and use the proceeds to buy a place down South or invest the proceeds and take out a mortgage? The answer depends on your own personal circumstances and your comfort level rather than number crunching, but here are a few things to consider.

The Bank Advantage

     First, let us consider the advantage of using a bank for this type of transaction. Sometimes when we apply for a bank loan or mortgage, we feel the bank is our adversary. Why are they asking so many questions? Why are they making me pay all these fees? Can't they understand that I have always paid my bills and I would pay this one too? Granted, it can be frustrating, but there is another way to look at it. The bank is really your partner.
     An example of this partnership from my own personal experience is when my daughter was recently trying to purchase a condominium. When I heard her offer was accepted, the first thing I told her was to get the financial documents from the condo association. The realtor involved assured her that these documents were forthcoming but,

By looking after their interests, the bank is actually looking after yours.

in the meantime, she should apply for the loan and get approved. After going through the arduous process of getting final approval, the bank finally got the condo docs three days before closing. The financials indicated that there was a high delinquency rate on the condo association fees. The bank immediately rejected the deal. If my daughter had purchased this place for cash, she may never have known that. In the end, she walked away from this property and bought another one in another town with a new, more knowledgeable realtor.

        In just the last week, I have received inquiries from four customers, each of whom is looking for a resale golf home or a condo in a golf community. And all specified a price range of $250,000 to $300,000. Either this is a major coincidence, or someone is goofing on me. I'm going to assume the former, but the coincidence got me thinking about what real estate in that price range is currently available in golf communities I have visited and can recommend.
        It turns out quite a lot. Mindful that some people prefer the low-maintenance lifestyle condo ownership provides, and others prefer the more spacious single-family-home approach, here are summaries of two golf homes for sale in some of our favorite golf communities -– one single-family home and one condominium in each.  Plenty of others are available at both lower and higher prices in each golf community.

BayCreekNicklausoversandBay Creek's Jack Nicklaus has a links like feel to it.

Bay Creek Resort, Cape Charles, VA

        This was the first community to be able to boast separate Jack Nicklaus and Arnold Palmer designed 18 hole layouts. They are both impressive and bump up against the Chesapeake Bay, although we prefer the more links-like Nicklaus layout. Bear Creek is located about 10 miles north of one of the engineering marvels of the world, the 20-mile span of the Chesapeake Bay Bridge & Tunnel. The community is also about a six-hour drive from Manhattan and a lot closer from Philly and Washington, D.C. Condos and single-family homes are squarely in the price range we are exploring here.  For example, a 3 BR, 2 BA, 1,800 square foot condo in The Fairways section -– so named because of its view of the Palmer course –- is being offered furnished and can slip right into the Bay Creek rental program to generate some income when you are not using it. The offering price is $274,900.  Nearby, in The Hollies section, a 1,750 square foot single-family home, with 3 BRs and 2 BAs, is listed for $259,900.  It is on a small lot, but does have a front yard and sunroom and back patio for views of the woods and Nicklaus course.  Bay Creek recently opened a beach club and fitness center to go with the great golf.

WGreenShamokin6The three nines on the Rees Jones Stoney Creek course have Native American tribe names. This is #6 on the Shamokin course.

Wintergreen Resort, Nellysford, VA

        If we were skiers, as well as golfers, we'd think seriously about having two homes – one on the coast and one in the mountains. And the choice of golf communities in the mountains would certainly include consideration of Wintergreen, where you can play golf at the top of the mountain –- the Ellis Maples Devil's Knob course -- and at the bottom -– the 27-hole Rees Jones Stoney Creek layout. Both are outstanding. We understand the skiing is pretty nice as well. But maybe the most outstanding feature at Wintergreen are the prices for the wide variety of real estate, with condos that start as low as the $60s. For our purposes, we'll take the 2 BR, 2 BA, 1,170 square foot unit on Blue Ridge Drive with long and beautiful mountain views and a short walk to the first tee of Devil's Knob, tennis and the spa. For those seeking a bit more space and an indigenous style of home, a nine-year old Lindal Cedar single-family house features 3 BR and 3 BA, exposed wood beams, pine ceilings, hardwood floors, fireplace, A-frame windows, cathedral ceilings and an open floor plan. Oh, yes, and it comes fully furnished, all for $289,500.