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[quote name='dporto' timestamp='1337605676' post='4950006']
Ok, so now we've got a "10%" and a "5%"... Anyone else? Any members of private clubs who could figure out what their membership cost is as a percentage of their Net income?
[/quote]

My experience is that income doesn't really scale like that.

From my perspective, your spending breaks down into nondiscretionary (mortgage, day-to-day, long term savings / investments, etc.) and discretionary (vacations, memberships, cars, boats, golf clubs, whatever) piles. My experience has been that the nondiscretionary side of the ledger grows much more slowly than your income rises (at least, that's always been my goal), which gradually boosts your available discretionary spending. The net result is, in my opinion, the more money you make, the more you can spend - even as a % - on discretionary items.

If you make $50,000 a year, can you really afford to spend $5,000 on a golf club membership? Doubtful. If you make $1,000,000 a year, can you really afford to spend $100,000 on a golf club membership? No problem (if it's a priority for you). So there's actually a curve, which is probably different region-by-region (i.e. if you live in NYC, and make $1M, spending $100K on golf might be out of your league), making it a pretty tough question to answer.

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[quote name='dporto' timestamp='1337179191' post='4924688']
First off, no offence taken by any of the replies - this is the purpose of a "forum" no? Ok, it seems we're getting a little closer to what I was looking for... Call whatever is left over after the mortgage and other fixed expenses whatever you like (discretionary, net, etc...). Gross income is really meaning less for the sake of this discussion. The reason I'm after a percentage is because it takes out the variables of location (cost of living in one area as opposed to another) and should translate regardless of the area. So in "DLiver's" example he's basically saying 10% of Gross income "should be doable" ... While I disagree with the number (seems a little high...), at least he tried... Once again, this shouldn't be that difficult - there IS a number out there, we just have to figure out what it is :yahoo:
[/quote]
I've been to high end and average clubs in TX, MI, AZ, NJ, NV, FL and CA, as a BOD member and visiting guest. All of them vary by location, season, membership costs, and club operational costs.

Would you clarify what is gained by taking [b]location [/b]out of the discussion, and chasing a percentage of gross? It’s because of [b]location ([/b][b]seasonal play[b])[/b][/b], level of exclusivity, club amenities, quality of course, and the expectation of private club lifestyle, that discretionary income is the measuring stick to join a private club. Gross income or percentage thereof has no bearing on membership qualification, ability to afford and or pay. Taking it one step further, NO business entity grants credit or a loan based upon gross. Why? Because they can only collect off net income. Affordability is never measured off gross income because tax rates and net varies per person. Have a good day.

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The bond you need to secure your membership may be 60k+ but there is no way any course can have a 60k annual fee. Pine Valley, which I have had the pleasure of playing once with a neighbor of mine only cost 8k a year with a 40k one time cost. Merion east is less than a mile from my house and costs only 14k yearly. I'm sure Agusta doesn't even charge 60k yearly. Not being a wise guy just telling what I know.

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[b] [url="http://www.golfwrx.com/forums/user/14656-pepperturbo/"][color="#353535"]Pepperturbo[/color][/url] - "Would you clarify what is gained by taking location out of the discussion, and chasing a percentage of gross?" [/b]... I think if you go back and read my posts you'll see that I was NEVER "chasing" a "percentage of gross" (income)... Just as an excercise, since you "have been to" and imply that you belong to so many clubs, why don't you just humor me and figure out what percentage of your NET or DISCRETIONARY or WHATEVER whatever you want to call it, costs you. What is gained by taking location out of the equation is that income ususally reflects cost of living in any given geographic area ie: more expensive area to live = higher salaries...

[url="http://www.golfwrx.com/forums/user/4622-cpsox/"][color="#353535"]CPSOX[/color][/url] - Well, you put a number on it... $1000.00/month... Ok, what percentage of you DISCRETIONARY income is that? It's that simple ! BTW, there is no right or wrong answer here - I'm just looking to find out what an AVID golfer is willing to spend on his/her hobby as a percentage of their DISCRETIONARY income.

[url="http://www.golfwrx.com/forums/user/119065-raynorfan1/"][color="#353535"]raynorfan1[/color][/url] - You make some fair points. While your example works in theory (when people are fiscaly responsible) in my experience is that when the income goes up so does the spending (hence our current economic situation). In fact, the spending often outstrips the income... So yes, scaling is a bit of an issue but I don't think it's a deal breaker. Obviously, there are way too many variables to come up with a precise number - I'm just looking for a ballpark figure...

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I think you're going to have a tough time asking people to virtually tell you how much money they make.

You want an answer to your question, which would require a HUGE sample size since there are so many variables involved. There are avid golfers who wouldn't dream of spending more than $2000 a year to play and there are some who don't blink at $25k+ a year.

It's not a function of discretionary income, it's a function of your surplus. Few give up other spending to join a club, you need to be ok with $x amount less in savings every month. I guess my brain doesn't work like yours, I can't rationalize the clubs I'm a member of and what they cost by a % of an arbitrary number.

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There are a bunch of courses in my area with 6 digit initiation fees. I'm not sure about their monthly or yearly dues though.

[size="2"]East Hampton G.C., East Hampton [/size][size="2"]($260,000 initiation fee)[/size]
[size="2"]Sebonack G.C., Southampton ($550,000)[/size]
[size="2"]Friar's Head, Baiting Hollow ($250,000[/size]
[size="2"]The Bridge, Bridgehampton ($550,000)[/size]
[size="2"]Trump National G.C., Bedminster ($200,000)[/size]
[size="2"]Hamilton Farm G.C., Gladstone ($300,000)[/size]
[size="2"]Liberty National G.C., Jersey City ($500,000)[/size]
[size="2"]Bayonne G.C., Bayonne ($150,000)[/size]
[size="2"]Hudson National G.C., Croton-on-Hudson [/size][size="2"]($210,000)[/size]
[size="2"]Trump National G.C., Briarcliff Manor ($200,000)[/size]

[size="2"]These numbers are a little dated. I know that Hudson National is now pushing 300,000K. I'm also sure that some of the Westchester County private clubs like WCC, Winged Foot, Quaker Ridge and countless others are in that range too along with clubs out on the island[/size]

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[quote name='dporto' timestamp='1337685379' post='4956848']
[b] [url="http://www.golfwrx.com/forums/user/14656-pepperturbo/"][color="#353535"]Pepperturbo[/color][/url] - "Would you clarify what is gained by taking location out of the discussion, and chasing a percentage of gross?" [/b]... I think if you go back and read my posts you'll see that I was NEVER "chasing" a "percentage of gross" (income)... Just as an excercise, since you "have been to" and imply that you belong to so many clubs, why don't you just humor me and figure out what percentage of your NET or DISCRETIONARY or WHATEVER whatever you want to call it, costs you. What is gained by taking location out of the equation is that income ususally reflects cost of living in any given geographic area ie: more expensive area to live = higher salaries...

[url="http://www.golfwrx.com/forums/user/4622-cpsox/"][color="#353535"]CPSOX[/color][/url] - Well, you put a number on it... $1000.00/month... Ok, what percentage of you DISCRETIONARY income is that? It's that simple ! BTW, there is no right or wrong answer here - I'm just looking to find out what an AVID golfer is willing to spend on his/her hobby as a percentage of their DISCRETIONARY income.

[url="http://www.golfwrx.com/forums/user/119065-raynorfan1/"][color="#353535"]raynorfan1[/color][/url] - You make some fair points. While your example works in theory (when people are fiscaly responsible) in my experience is that when the income goes up so does the spending (hence our current economic situation). In fact, the spending often outstrips the income... So yes, scaling is a bit of an issue but I don't think it's a deal breaker. Obviously, there are way too many variables to come up with a precise number - I'm just looking for a ballpark figure...
[/quote]

Humor you... :lol: I learned a long time ago, some people like wasting the time of others. Judgment and spending habits vary per person, regardless of income, or location for that matter... Good luck with your fuzzy math. :)

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[quote name='raynorfan1' timestamp='1335813806' post='4816782']
[quote name='Conman48' timestamp='1335737394' post='4811314']
I see tons of pricey and impressive bags here everyday and it led me to wonder how many people on here are part of a high price membership? I am at a 60k course here in fr worth and no one I know at the club has been on the site. So let's hear it!
[/quote]

There seems to be a fair amount of confusion - even among the golf experts here - about how fees are structured.

To the poster above claiming $75K per year for a Trump course - I don't believe it for a second. $75K initiation? Absolutely. $225K initiation payable over three years (i.e. $75K per year times three)? Sure. $75K a year for DUES? No. That would be 5x the dues of Trump National Los Angeles. Liberty National is $25K per year (with a $250K initiation). Do you seriously think The Donald can command a 3x premium over Liberty National?

And then the people who wonder how golfers can be members of so many nice clubs. It's called National Membership. If you're an elite club (and I'll define that as any club that hosted a major before 1980), there's a pool of golfers who live thousands of miles away who will pay some small-ish amount of money for the right to come and play a few times a year. It's a win-win. You pay an initiation of something in the $10K range, and annual dues in the $1,000 range and you can play up to X times per year. These are a great revenue source for the receiving clubs.
[/quote]
From what I heard trump colts neck has dropped there initiation fee to 16k

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[quote name='Pepperturbo' timestamp='1337630177' post='4952468']
[quote name='dporto' timestamp='1337179191' post='4924688']
First off, no offence taken by any of the replies - this is the purpose of a "forum" no? Ok, it seems we're getting a little closer to what I was looking for... Call whatever is left over after the mortgage and other fixed expenses whatever you like (discretionary, net, etc...). Gross income is really meaning less for the sake of this discussion. The reason I'm after a percentage is because it takes out the variables of location (cost of living in one area as opposed to another) and should translate regardless of the area. So in "DLiver's" example he's basically saying 10% of Gross income "should be doable" ... While I disagree with the number (seems a little high...), at least he tried... Once again, this shouldn't be that difficult - there IS a number out there, we just have to figure out what it is :yahoo:
[/quote]
I've been to high end and average clubs in TX, MI, AZ, NJ, NV, FL and CA, as a BOD member and visiting guest. All of them vary by location, season, membership costs, and club operational costs.

Would you clarify what is gained by taking [b]location [/b]out of the discussion, and chasing a percentage of gross? It’s because of [b]location ([/b][b]seasonal play[b])[/b][/b], level of exclusivity, club amenities, quality of course, and the expectation of private club lifestyle, that discretionary income is the measuring stick to join a private club. Gross income or percentage thereof has no bearing on membership qualification, ability to afford and or pay. Taking it one step further, NO business entity grants credit or a loan based upon gross. Why? Because they can only collect off net income. Affordability is never measured off gross income because tax rates and net varies per person. Have a good day.
[/quote]


Almost all consumer loans are made based upon a percentage of gross income, not net. I'm not sure what that has to do with joining a country club, however.

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[quote name='lsutigerz2001' timestamp='1337738157' post='4961826']
I caddy at a club that is nicer then most courses any people on this board will ever play. Membership is by invitation only and I don't even want to know what the initiation fee is. I gladly play it for free every Monday. That said, the country club my family belongs to is a little over 2k a year.
[/quote]

Being that you're in Wichita, are you referring to a club in Hutchinson? You'd be shocked how affordable that club is. Probably the single best value in the US and maybe the world.

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I've heard stories about a club near me that is upwards of 6 figures to join, by invitation only. I actually heard through the grapevine that someone I had played golf with from time to time was on the waiting list for years, when it got to his interview they found out he had got divorced and was shown the door. I actually played there last year in the Oregon Amateur, the course is old, only 6,400 yards and was lit up last year in the stroke play qualifying. Not even that great of a course but it's been there since 1896.

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[quote name='CowtownTexas' timestamp='1337738544' post='4961886']
[quote name='lsutigerz2001' timestamp='1337738157' post='4961826']
I caddy at a club that is nicer then most courses any people on this board will ever play. Membership is by invitation only and I don't even want to know what the initiation fee is. I gladly play it for free every Monday. That said, the country club my family belongs to is a little over 2k a year.
[/quote]

Being that you're in Wichita, are you referring to a club in Hutchinson? You'd be shocked how affordable that club is. Probably the single best value in the US and maybe the world.
[/quote]


No way Stan George lets caddies play on Monday :)

I'm guessing he caddies at Flint Hills Nat.

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I worked at a nice club in the NC mountains and initiation was $50,000 with $1,000 monthly dues. There were also 4 or 5 other clubs within 10 miles that had initiation fees of $50,000 - $150,000 and similar or higher monthly dues. Most of our members ( I would say 90%) lived in Alabama, Georgia, and Florida for half of the year and belonged to an equally nice course there. Most had homes in the $350,000 - $1,000,000 range in NC and wherever else they lived. Some belonged to multiple courses in NC and wherever else they lived. For some people its not about the high initiation of ONE club, its many. And, they have no problem paying it.

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[quote name='CowtownTexas' timestamp='1337738454' post='4961866']
[quote name='Pepperturbo' timestamp='1337630177' post='4952468']
[quote name='dporto' timestamp='1337179191' post='4924688']
First off, no offence taken by any of the replies - this is the purpose of a "forum" no? Ok, it seems we're getting a little closer to what I was looking for... Call whatever is left over after the mortgage and other fixed expenses whatever you like (discretionary, net, etc...). Gross income is really meaning less for the sake of this discussion. The reason I'm after a percentage is because it takes out the variables of location (cost of living in one area as opposed to another) and should translate regardless of the area. So in "DLiver's" example he's basically saying 10% of Gross income "should be doable" ... While I disagree with the number (seems a little high...), at least he tried... Once again, this shouldn't be that difficult - there IS a number out there, we just have to figure out what it is :yahoo:
[/quote]
I've been to high end and average clubs in TX, MI, AZ, NJ, NV, FL and CA, as a BOD member and visiting guest. All of them vary by location, season, membership costs, and club operational costs.

Would you clarify what is gained by taking [b]location [/b]out of the discussion, and chasing a percentage of gross? It's because of [b]location ([/b][b]seasonal play[b])[/b][/b], level of exclusivity, club amenities, quality of course, and the expectation of private club lifestyle, that discretionary income is the measuring stick to join a private club. Gross income or percentage thereof has no bearing on membership qualification, ability to afford and or pay. Taking it one step further, NO business entity grants credit or a loan based upon gross. Why? Because they can only collect off net income. Affordability is never measured off gross income because tax rates and net varies per person. Have a good day.
[/quote]


Almost all consumer loans are made based upon a percentage of gross income, not net. I'm not sure what that has to do with joining a country club, however.
[/quote]

What lending institutions are you dealing with. For the sake of your statement I just got off the phone with my banker. She said consumer loans, whether originated at a bank or finance company, are based upon credit rating & credit reporting data; which shows all our loans, payment history and current credit, add the application you filled out. All the lending officer does is add up what's listed on your report, using formulas, throw in % for taxes, food and utilities, etc., and BAM... She sees what a person's approximate take home pay is.

After receiving your application for membership, the next thing any responsible club does is runs a credit report. That was the case at my last two clubs... they even asked to contact my CPA or banker, leaving the option to me. That's also the case at each of the clubs I am now considering. If a club didn't check out financial worthiness of potential members, they would be exposing themselves to potential losses.

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[quote name='Pepperturbo' timestamp='1337800343' post='4965822']
What lending institutions are you dealing with. For the sake of your statement I just got off the phone with my banker. She said consumer loans, whether originated at a bank or finance company, are based upon credit rating & credit reporting data; which shows all our loans, payment history and current credit, add the application you filled out. All the lending officer does is add up what's listed on your report, using formulas, throw in % for taxes, food and utilities, etc., and BAM... She sees what a person's approximate take home pay is.

After receiving your application for membership, the next thing any responsible club does is runs a credit report. That was the case at my last two clubs... they even asked to contact my CPA or banker, leaving the option to me. That's also the case at each of the clubs I am now considering. If a club didn't check out financial worthiness of potential members, they would be exposing themselves to potential losses.
[/quote]

Cowtown is 100% right about how consumer loans are made. I'll spare you the details on how my position at a bank would know....and it's not a personal banker or consumer lender.

I'd also ask where you've been a member and where you're considering. The whole credit check thing is bizzare, at least to the 3 top 100 clubs that have accepted me into their membership. Perhaps they irresponsibly operate under the "show up, pay your bill" model that has successfully worked for them for decades. That's what sponsors are for, a club worth its salt will depend on members to introduce others for membership that are currently able to afford and maintain their membership. If you have 2-10 other members stand up and vouch for you, that speaks much louder than a lousy credit report.

Obviously, it may be different at a club that will accept anyone with a checkbook who shows up at the front door.

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[b]"I think you're going to have a tough time asking people to virtually tell you how much money they make. "[/b]

Hmmm, did I do that? "Virtually" ? Really? I'm pretty sure that most of the people that have responded to this thread aren't using their real names here...:rolleyes: One thing I am sure of is that there aren't any mathematicians here ;)

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[quote name='CPSOX' timestamp='1337802278' post='4965966']
[quote name='Pepperturbo' timestamp='1337800343' post='4965822']
What lending institutions are you dealing with. For the sake of your statement I just got off the phone with my banker. She said consumer loans, whether originated at a bank or finance company, are based upon credit rating & credit reporting data; which shows all our loans, payment history and current credit, add the application you filled out. All the lending officer does is add up what's listed on your report, using formulas, throw in % for taxes, food and utilities, etc., and BAM... She sees what a person's approximate take home pay is.

After receiving your application for membership, the next thing any responsible club does is runs a credit report. That was the case at my last two clubs... they even asked to contact my CPA or banker, leaving the option to me. That's also the case at each of the clubs I am now considering. If a club didn't check out financial worthiness of potential members, they would be exposing themselves to potential losses.
[/quote]

Cowtown is 100% right about how consumer loans are made. I'll spare you the details on how my position at a bank would know....and it's not a personal banker or consumer lender.

I'd also ask where you've been a member and where you're considering. The whole credit check thing is bizzare, at least to the 3 top 100 clubs that have accepted me into their membership. Perhaps they irresponsibly operate under the "show up, pay your bill" model that has successfully worked for them for decades. That's what sponsors are for, a club worth its salt will depend on members to introduce others for membership that are currently able to afford and maintain their membership. If you have 2-10 other members stand up and vouch for you, that speaks much louder than a lousy credit report.

Obviously, it may be different at a club that will accept anyone with a checkbook who shows up at the front door.
[/quote]

Don't mind Pepper, he's just speculating based on what he read on the Internet about certain clubs -- while he saves up to buy a [u]real[/u] Porsche...

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In my experience - several clubs in the DC area and San Francisco - ask for average annual income...it is self-certifying. However - they all run credit checks. I am not aware of any of the higher end clubs asking for financial statements or 3rd party verification.

Why? B/c for most - they put you on "social status"/probation when being considered - so they get to see how you actually act and operate. You also have to pay 50-100% of the initiation up front. Additionally, you've had several members who have vouched for you. Bottom line: if they don't like you (much less have you be late on a bill) - you're out. And you may have lost your initiation, as well as the respect of those that supported you.

That's often enough to keep people straight.


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[quote name='ChipDriver' timestamp='1337956421' post='4976188']
In my experience - several clubs in the DC area and San Francisco - ask for average annual income...it is self-certifying. However - they all run credit checks. I am not aware of any of the higher end clubs asking for financial statements or 3rd party verification.

Why? B/c for most - they put you on "social status"/probation when being considered - so they get to see how you actually act and operate. You also have to pay 50-100% of the initiation up front. Additionally, you've had several members who have vouched for you. Bottom line: if they don't like you (much less have you be late on a bill) - you're out. And you may have lost your initiation, as well as the respect of those that supported you.

That's often enough to keep people straight.

[/quote]

Interesting. Since this credit check thing came up, I have asked a few of my buddies if they had ever had a credit check or inquiry about income when they joined a club. Now this is by no means valid research but it does cover more than a dozen clubs in the US, virtually all of which would be recognized by avid golfers. None had come across such a thing. (I have never come across this either BTW.) Given the nature of upscale clubs, the scratch usually needed to get in, and the membership invitation and confirmation process, I just can't see this being standard operating procedure for high-end clubs.

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[quote name='CowtownTexas' timestamp='1337743626' post='4962484']
The most exclusive country club in Dallas has a pretty below average golf course. However, people wait generations to join.

It's not always about golf.
[/quote]

I guess you're talking about Dallas CC? You're right, course is pretty average at best and I hardly ever play it but it is close to where I live and the gym ain't too bad. For golf, I'll take the 25-minute drive out to Dallas National GC. When I joined DNGC, it was 150K for a Founding Membership, which is full equity plus half of any price appreciation on selling my membership. Much better deal long-term than most other high-end clubs.


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[quote name='MizzyMan' timestamp='1337986639' post='4978676']
[quote name='CowtownTexas' timestamp='1337743626' post='4962484']
The most exclusive country club in Dallas has a pretty below average golf course. However, people wait generations to join.

It's not always about golf.
[/quote]

I guess you're talking about Dallas CC? You're right, course is pretty average at best and I hardly ever play it but it is close to where I live and the gym ain't too bad. For golf, I'll take the 25-minute drive out to Dallas National GC. When I joined DNGC, it was 150K for a Founding Membership, which is full equity plus half of any price appreciation on selling my membership. Much better deal long-term than most other high-end clubs.
[/quote]


I would have to say bar none the most exclusive is Preston Trails. I would take that over DCC anyday but National is probably the coolest to be a member if only I was closer!

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Ouch you guys are getting hosed.

 

Best club in Cape Town (in my opinion) is $6K up front and $2.5K a year. No green fees, no waiting, unlimited range balls, great practice facilities and an on-site winery. :)

 

Was recently voted the best golf resort in the world outside the US, so I reckon the price/quality ratio is pretty fair! Ratings were: Course Design & Access, Golf Staff & Services, Rooms, Service, Food/Dining, Location, Overall Design, and Activities/Facilities.

 

top-20-foreign-golf-resorts.jpg

 

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[quote name='Conman48' timestamp='1338013704' post='4980316']
[quote name='MizzyMan' timestamp='1337986639' post='4978676']
[quote name='CowtownTexas' timestamp='1337743626' post='4962484']
The most exclusive country club in Dallas has a pretty below average golf course. However, people wait generations to join.

It's not always about golf.
[/quote]

I guess you're talking about Dallas CC? You're right, course is pretty average at best and I hardly ever play it but it is close to where I live and the gym ain't too bad. For golf, I'll take the 25-minute drive out to Dallas National GC. When I joined DNGC, it was 150K for a Founding Membership, which is full equity plus half of any price appreciation on selling my membership. Much better deal long-term than most other high-end clubs.
[/quote]


I would have to say bar none the most exclusive is Preston Trails. I would take that over DCC anyday but National is probably the coolest to be a member if only I was closer!
[/quote]
Well, no. Preston Trail is pretty easy to get into, my brother did as soon as he wanted to. You got the dough and know someone there, you're basically in unless you're a complete ******. People have been on the Dallas CC list for decades and never get in. Some very famous, very rich folks. Just that certain people don't want them in. THAT'S what makes a club exclusive to me, one that won't let certain billionaires in cuz they rub some people the wrong way. Brookhollow and Dallas CC are the most exclusive in Dallas, based on cost and difficulty to get in. A lot of who you know stuff. Dallas Nat'l and Preston Trail are exclusive based on cost only.

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Ouch you guys are getting hosed.

 

Best club in Cape Town (in my opinion) is $6K up front and $2.5K a year. No green fees, no waiting, unlimited range balls, great practice facilities and an on-site winery. :)

 

Was recently voted the best golf resort in the world outside the US, so I reckon the price/quality ratio is pretty fair! Ratings were: Course Design & Access, Golf Staff & Services, Rooms, Service, Food/Dining, Location, Overall Design, and Activities/Facilities.

 

top-20-foreign-golf-resorts.jpg

 

Well it's all about supply and demand. These are all resorts, they have built-in revenues from resort guests. A private club doesn't have a hotel and resort company to fund the golf course, not to mention maintenance, staff, etc. The members put up the money to build, maintain, staff, etc, either directly or indirectly. And you don't have to put up with hotel guests that don't have a clue how to play or about etiquette.

 

And on top of that, if you join a club where you have full equity like mine, you get all your money back and then some (hopefully). It just costs the monthly dues.

 

 

 

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