Ever dreamed of escaping to your own private island, where the only sound is the waves hitting the shore? The good news is, owning an island isn’t as out of reach as it may seem. With the right planning and resources, purchasing a slice of paradise can be within your grasp. However, the process involves several important steps and considerations. Here’s what you need to know to turn that dream into reality and make an island truly yours.
If buying an island is truly a goal of yours, consider working with a financial advisor to put together a personalized plan.
How to Find an Island
First, you’ll need to find an island that meets your needs. Believe it or not, there are several websites dedicated solely to finding the perfect private island to purchase. You can find private islands for sale via Private Islands Inc. or Vladi Private Islands, or by contacting a realtor who specializes in big-ticket sales.
Additionally, some high-end real estate companies, like Sotheby’s International Realty or Christie’s International Real Estate, list private islands for sale. Global real estate locations range from the Bahamas to Turks and Caicos to Italy.
How to Buy an Island: Research
As with any big purchase, it’s wise to do your research before signing on the dotted line. Most private islands for sale are located in countries such as the Bahamas, Central American, South America and Asia. However, you might also find options in the United States or in Europe.
Go into your search with some requirements. You may want to consider price, weather, and the level of existing infrastructure. Think about if you’ll use your island solely for yourself or plan to commercialize the real estate eventually.
Generally speaking, purchasing an island for private use is a much more seamless process than purchasing one for business purposes. However, buying an island with infrastructure already in place can be much cheaper in the long run. Islands without any built-in infrastructure like electricity or existing buildings can drive up costs considerably over the long term.
How to Buy and Island: Pitfalls
The island-buying process can be fraught with peril. Buying one too far from the mainland limits access. That can make transporting supplies and using emergency services or medical care difficult.
Additionally, you’ll need to ensure that you can actually build on your private island once you own it. Many countries have different laws and regulations regarding building on a formerly uninhabited island. For example, some countries require that your island be a minimum size in order to build on it. Meanwhile others are governed by environmental law.
Last, consider your island’s climate. Whether a structure will have to withstand extreme heat, cold or weather events, like hurricanes, will affect your home’s design and cost. For example, building on a hurricane-prone island will definitely affect your bottom line when it comes to construction and insuring the structure once it’s completed.
How to Buy and Island: Checklist
You’ll also need to consider if you’re starting from scratch with your island or if it has existing infrastructure, like a power source. Most private islands get their power either from underwater cables that run to the island or, if not, from generators. Factor that into your budget, as well.
And what about paying for your island? Well, this is one instance in which financing a large purchase probably won’t be an option. When buying your own private island, cash is king. Expect to pay anywhere from $500,0000 to $70 million for your own private island. The price typically depends on the island’s size, location, level of development and demand.
Bottom Line
When purchasing a private island, there are several important considerations to keep in mind, from price to location to the level of development on the island, even its proximity to land. You’ll also need to consider whether the island’s governing body will allow development. But in general, purchasing an island may not be as out of reach, or expensive, as you might think.
Real Estate Tips
- Before you go buying a private island, you may consider whether or not it’s financially feasible. Also, when purchasing a private island, you’ll almost always need to pay in cash. A financial advisor can help guide you through the process. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Even if you aren’t buying a private island, the homebuying process can prove daunting. Do you know how much house you can afford? What kind of mortgage payment can you manage? Have you calculated your closing costs and down payment? Where do your housing costs fit into your total budget. If you haven’t answered these questions yet, SmartAsset’s homebuying guide can help.
- If you’re crunching the numbers and can’t afford to pay for a private island in cash, don’t give up hope. You can always rent one. As it turns out, private islands join chickens, paparazzi and friends among the surprising items you can rent these days.
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