Owning the land you stand on, gives a unique feeling, in a sense it is a hallmark of achievement. Ownership of a slice of mother earth is something men have worked and fought for throughout history.
The price of land varies because of properties such as location, rental income and potential.
Islands are a special type of real estate; they have many attributes which other types of properties do not have, this is reflected in both their price and supply and demand dynamics.
No man is an island, but owning an island might make you feel more of a man. Island investment and ownership is reserved to a select group of investors which have the right net worth, spirit of adventure, the creative wit to build and solve problems and an aptitude towards that calculated seclusion an island provides. Islands are an oasis of both tranquillity and beauty away from the high-speed urban jungle.
There are a few key considerations to take before investing in the purchase of a private island:
- Type of acquisition
- Additional costs to develop and customise the island
- Local laws
- Development costs
- Personal considerations
- Ability to deal with things on your own/.
- Time available
Purchasing Considerations when buying a private Island.
Private islands can be bought both as FreeHold or Leasehold. An island can also be bought by a family and shared accordingly, splitting the costs. Each model of island ownership depends on both the investor’s personal context and the island real estate market. The market for islands moves slower than that of more traditional property types, but there is a constant turnover of islands being bought and sold around the world.
Freehold ownership gives 100% ownership with all its pros and cons, short leaseholds can provide a taster of what island life feels like, this is an opportunity to try before you buy for those who are curious enough to try but not committed enough to buy.
In which part of the world does buying a private island make sense?
Time and Medical needs are the two paramount factors for investors to consider. A tropical island can be paradise but without the amenities, we are used to it is impossible to enjoy it for extended periods of time.
Upgrading it with all the creature comforts of western life a lot of work. In order to create such an environment a lot of effort needs to be invested either upfront or selecting developed islands. The investor must make the choice of customising the island as he or she wants or buying an island with the facilities already installed. Time or money, an island will consume much of one or the other; investors beware.
Owning an island is both a pleasure and a responsibility. Some owners, do not want to or cannot afford to delegate all the work needed and get pleasure from shaping the island according to their vision.
Private Island Prices
The island investor’s budget determines which islands are within reach. The sale of islands can take place either in private markets or public ones. Some island owners are private individuals who do not want to show their ownership or the facilities on particular islands, so they rely on non-public markets to sell or buy private islands.
The potential buyer needs to weigh how long should (or can) they wait for the right opportunities vs buying what is available. Given the turnover of islands is slower this decision is an important one. An island is not sold as easily as an apartment.
Development and Investment Potential for islands
Buying an island is the first step in a very long journey. An island in itself is beautiful but truly enjoying it means living on it for extended periods of time. Understanding its unique ecosystem, treasures and the experiences in can give. A house on the island with some basic amenities allows you to live on the island for extended periods of time; without this continuous presence, it is impossible to experience a private island to its fullest.
Going for the Robinson Crusoe experience could be an option, but the end result for those who experienced this in the past was not pleasant.
The remoteness of an island might lead one to think that this distance extends to the local laws and regulations. Development can take place as for the whims of the owner. However this is not the case, owning an island does not make you king of a sovereign nation, one needs to abide by the local laws in order to stay on the right side of the law.
An astute private island investor would check that his vision of the island can be implemented according to the that the local laws and regulations. Permits can be issued for that swimming pool, short term lets, draining a swamp, dredging parts of the beach, digging of wells, installing solar panels, installing satellite dishes, ham radios, and connecting the island to the mainland’s electricity grid.
Knowing that the investment plan of an island is possible according to the local regulations is only the first step. Private island owners need to estimate the costs to implement this plan and how feasible it is to build it with local construction crews. How easy it is to communicate with them, their work ethic and their adherence to deadlines.
These costs in time, money and patience should be part of the decision-making process about investing in a private island. Investors embarking on this journey, need to make sure they are not overextending themselves and putting themselves in a situation which is difficult to get out from.
How technology can improve island life:
Today’s technology has made island life, more feasible. Communication equipment has become, cheaper, stronger and more energy efficient. Internet connections have become more versatile, for example; electrical cables can now be used to connect to the internet with the right add-ons. Saltwater to freshwater converters can be used to create an adequate water supply. Security systems can monitor all of the island and can provide peace of mind for island residents both when they are on the island or away.
An island by its nature is not close to medical facilities or within the easy reach of ambulances. Certain medical conditions which either need medical supervision or easy access to medicines might require more careful planning by investors considering living on an island for an extended period of time. Solitude and living among the same group of people for an extended period of time can also pose a challenge, without the right amount of foresight.
Examples of Islands for sale on http://www.privateislandsonline.com/
A full guide on buying private island can be found here : http://www.privateislandsonline.com/island-buyers-guide
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