| Q1 |
What are the important points to consider when purchasing a club membership in Hong Kong and China? |
| A1 |
Before purchasing a club membership, you should clarify your reasons for joining a club. In Hong Kong and China, private golf clubs are just one of a variety of private clubs. Some private clubs offer restaurants, tennis courts, athletic gyms and card playing rooms but no golf course. It is almost impossible to find one club that meets all of your needs so decide what your minimum requirements are before visiting a club.
Some points to consider:
(1) What is my main purpose in joining a club? (golf, tennis, swimming, dining, entertainment, leisure?)
(2) Who will use the club? (just myself, my spouse and children, with guests)
(3) Is the location convenient?(how far away? readily available transportation? need to pass through customs and immigration?)
(4) Are the club fees within my budget? |
| Q2 |
How do I find out more information about private clubs and private golf clubs? |
| A2 |
Since there are no summary of detailed information regarding various clubs, it is very difficult to obtain enough information to make club comparisons. If you already know which club you want to join you can ask someone who is already a member about that club. In that case, be sure to compare against other similar clubs. Our company has a large collection of detailed information relative to various clubs.
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| Q3 |
When selecting a private golf club for actual use (not as an investment) , what do I have to consider? |
| A3 |
First of all, make sure you can visit the club, play a round of golf and return home all in the same day. Most golf clubs are located in China. It is important to be able to go back and forth easily since you will use the club more if you do not have to stay overnight. Find out what mode of transportation will get you to the club and how often it runs. |
| Q4 |
Which is better, an established club or a brand new club? |
| A4 |
With an established club, you can actually check out the club house, golf course and other facilities. In addition, you can review the club's business records and financial reports if available. Since many clubs do not distribute such reports, you can obtain information on past club dues and check reputations regarding club maintenance and management from current members and people who have played at that club before. The membership fee in the secondary market is based on the club's reputation and membership supply and demand. A new club has a luxurious club house along with numerous facilities that are not usually available in an established club. Also, prices are often set attractively low in the early phase of membership solicitation. However, there may be a delay in the completion of construction and the actual facilities may differ from those described in the advertisement pamphlets. Sometimes members are dissatisfied with the management of the club and the fee structure after the club opens. Thus, there are certain risks associated with brand new clubs.
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| Q5 |
How do I purchase a club membership? |
| A5 |
(1) Purchase a new membership directly from the club. This may apply to established clubs as well as new clubs. In this case, the price is set by the club.
(2) Purchase a transfer membership in the secondary market using a specialized broker. This may apply to new clubs as well as established clubs. The price depends on the reputation of the club and the supply and demand for the membership. The price fluctuates accordingly.
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| Q6 |
Can I sell my membership and how do I sell it? |
| A6 |
You can sell your membership if the club allows the transfer of membership. However, some memberships are for life and cannot be sold. You can hire a specialized broker to sell your membership. Plan ahead and start the process early. With some club memberships, it can take a long time to find a buyer and complete the membership transfer process. |
| Q7 |
How do I select a broker?
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| A7 |
Keep in mind the following points as you select only one broker because if you use more than one, the market report shows duplicate buyers and/or sellers, and this will work to your disadvantage.
(1) Determine if the broker is an incorporated company with an office that actually exists.
(2) Ask how the broker handles the monetary transaction. Is it safe and trustworthy?
(3) Find out if the broker is a long established company with a large list of completed transactions.
(4) Make sure the broker is a specialist in club membership transactions. The broker should be knowledgeable and should give clear and easy to understand explanations.
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| Q8
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What different fees are involved in the sale and purchase of memberships?
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| A8 |
In Hong Kong, the quoted price of a club membership usually includes the price of the club membership itself plus a transfer fee. As with other transactions involving large sums of money, a lawyer may be included in the process. When you inquire about the membership price, you should determine what form of transaction you will have, how will the money be paid and who will be involved in the transfer process. The total cost of a membership transaction is broken down as follows:
(1) Membership Price(the price of the club membership itself)
(2) Transfer fee(Paid to the club for processing the membership transfer. Fee set by the club.)
(3) Commission to the broker(if you use one)
(4) Legal fees(if lawyers are involved in the process)
Total:(The total cost of selling or purchasing membership)
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| Q9 |
Isn't it a lot of trouble to go all the way to mainland China to play golf? |
| A9 |
It is certainly true that transportation in China can be difficult. However, many clubs make it easy for those members living in Hong Kong. For example, most of the clubs in the Shinsen district have their own buses for picking up members in Hong Kong. Also, clubs in the Zhuhai or Guanzhou districts provide shuttle buses from nearby ports for those members taking the ferry. For added convenience, members can keep a set of golf clubs at the club. A convenient means of transportation to the club is an important factor when purchasing a club membership. You need to be aware of the time it takes to get to the club as well as the schedule of busses and ferries. You wouldn't want to spend an extra night in China just because you missed the last ferry. |
| Q10 |
Are there club memberships that are not sellable? |
| A10 |
There are transferable and non-transferable memberships. A couple of clubs advertise lifetime memberships. Before purchasing, make sure you read and understand the membership rights stated in the club bylaws. Some clubs set strict conditions for membership transfer and some clubs have very expensive transfer fees. Compare with other clubs before you decide to buy.
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