Should I buy a golf course or lease one to run?

Both routes put you in charge of running the course, but they carry different risks. Owning means you hold the land and the buildings. Leasing means you run the business on land that belongs to someone else, such as a private owner or a municipality. This page sets out the questions that tend to decide between them. It does not tell you which is right for you.

The capital each route needs

Ask a lender how much of a commitment buying the land would call for. A lease can lower the cash you need at the start, but you may still need money for equipment, the clubhouse and working capital through the slow months. Ask a lender early how it views each structure, and read the golf financing guide.

Who pays for capital repairs

Irrigation, drainage, bridges, cart paths and buildings wear out. As owner, you pay. As tenant, the lease decides who does, and some leases push major repairs onto the operator. Read those clauses closely with your lawyer. Ask the landowner for a list of work done in recent years and work still planned.

Term, renewal and what happens at the end

Ask your lawyer or lender how a short lease would affect what you invest in the course. Ask how long the term is, whether you can renew and on what basis rent is reset. Ask what happens to improvements you pay for, and whether the landowner can end the lease early or sell the land. Those answers shape what you can borrow against.

What a lender will look at

Ask what security a lender would want. With land, that may be the property. With a lease, it may be the lease itself, so ask how much term a lender would need to remain. Your accountant can help you compare the costs of each route, and your lawyer can explain the lease and any consent the landowner must give.