How To Buy A Private Island

 

The process of buying a private island is similar to that of buying a house, only the cost is much greater. When considering a house, you check for the general condition, the foundations, if it has rising dampness, and if there are termites present. Buying an island is similar, but there are far more things to consider, and in most cases, the buyer of an island has no experience on which to base his or her judgment apart from an emotional attachment. Considering the amount of money that you have to spend to buy a private island, it's critical that you are aware of the following issues.

 

Island Psychology: Although many people dream of their own little island paradise, few are actually capable of doing so. For every person who has achieved the dream of living on a tropical island, there are hundreds who tried and failed. Even the people who successfully managed to live on islands for many years often had to put up with things which many people would find unpalatable.

 

You have to put the fantasies aside and ask yourself some tough, practical questions. Can you live comfortably in isolation with no stores or restaurants within walking (or swimming) distance, and prepared to travel by boat just to get supplies? Are you able to handle boats, and love the sea - even when it’s at its worst? Are you prepared to be stuck on your island for days in a time if the weather turns bad? If you are buying an island in a foreign country you must also get used to “island-time” a concept that makes Mańana seem fast as lightning.

 

The best example of this is the wonderful book “Don't Stop the Carnival” by Herman Wouk.  It's the story of Norman Paperman, an American businessman who while on hoiliday makes the whimsical decision to buy a small tropical island resort.  In the novel the entertainment industry executive and his wife think they are escaping the hustle and bustle of city life for an island paradise, but give up in the end, unable and unwilling to cope with island-time and insular attitudes. Although it’s a work of fiction, the stories in the book are not exaggerated and although written 36 years ago are still the same type of problems all new islanders will confront. Now there is a new book out that easily compares to that but ends with success after all the dramas, and I recommend buying it to get an idea of what island life holds. Making Waves, By Libby Brown www.makingwavesbook.com/index.htm

 

Price: It’s stating the obvious to say that the bigger your budget the better and island you can afford, but some people have very unrealistic expectations of what they can afford. Examine the market, prices vary drastically in different countries, contact a professional island expert who can explain why. After examining which areas and countries you favour, set yourself a realistic budget based on fair market value. I advise clients that it’s better to spend as much possible to buy the island, even to the extent of waiting till they have funds for development. Saving money in the short term will generally get you a poorer quality island and once you have bought the island and developed there is no changing your mind. I feel that it’s better to have a more attractive island, than purchasing a poorer quality island just to save money.

 

A lot of people contact me and ask how much an island is $ per acre, or per square meter. While this is a common way of estimating the comparable value of real estate in developed countries and cities, it is absolutely the worst way to compare the potential value of islands. Why? Well I will give you an example, lets say we have two islands, one is 5,000 acres for $10 million, and one is 200 acres for the same price. On paper the 5,000 acre island looks like a bargain, but there are a host of things you must take into account such as beauty, accessibility, good quality beaches, etc. Also generally islands unless they are flat generally are continental islands of which only a portion is actually flat and capable of being developed. So if the 5,000 acre island has a bad anchorage, no beaches, poor water and is remote, and the 200 acre island has a runway, beautiful beach, good water and etc you can see how this is a very poor way to quantify value.

 

You should also be careful of “mark up”. This is a process that is quite common in many countries in the world, most notably the Philippines and Central America. An agreement is made between the seller and the agent whereby the owner sets his base price, and then the agent can add his “mark up” or over-price, the terms vary. Usually agents add 20% as a fair mark up with room for negotiation, but because any negotiated loss comes out of the agents end there is a temptation to massively over price to protect the agent’s commission. In some instances I personally know of islands being prices 100-300% above what the owners are getting by the broker. This price is often withheld from the owner’s who get a pittance.  Just ask your broker if there is an overprice and how much. If you really want to negotiate offer to guarantee the broker’s commission by engaging them as a “Buyer’s Agent”. That way they work for you, their commission is protected and they can negotiate the best market price for you.

 

Location: The location of an island is one of the most crucial factors in most people’s decision to purchase. It’s very important that you strongly consider this when purchasing. You're not just buying an island, you're buying its surroundings. There should be a village nearby where one can get supplies and an airport close at hand, for instance. In other words, what makes an island feasible is the infrastructure that is available to it. Some islands are close to villages which is good that you can obtain staff and supplies, but on the other hand it then lacks privacy. Again islands that are remote offer complete privacy, yet at the expense of accessibility. An island that is in the middle of the ocean usually has no view, and islands that are located in bays have both shelter and nice views. Also remote islands that are less sheltered are more prone to bad weather and rough seas.

 

However poor water supply isn’t as big a factor in the tropics, because a good rain water cistern can supply enough water over the dry season saved up from the monsoon season and the occasional shower. The tank can be topped up from the well, thus stopping the well from running dry and damaging the water table of the island. Check the annual rainfalls. The estimated amount of water needed annually for part-time island living is 30,000 to 100,000 gallons, which for full-time living will require about forty inches of annual rainfall. Technology has also come to the rescue and state-of-the-day desalination plants suitable for a normal house are now as cheap as $10,000.

 

Spectra Cape Horn Water Maker $10,000

 

Clean drinking water anywhere anytime! The CE Solar Water Machine makes up to 50 liters of drinking water per hour (1000 liter per day) straight from seawater, using only solar power.

 

Solar Water Purifier

 

The Solar Water Purifier is ideal for purifying many types of impure water. It is particularly useful for making seawater potable - tests show that our unit can purify seawater from 35,000 ppm (parts per million) of Totally Dissolved Solids (TDS) to 2 ppm. It has no moving parts, no electronics, no costly filters and uses no chemicals to purify water. Clean Water Output at a latitude of 20° from the equator from a 12x array may be around 50 to 60 litres per day at an ambient temperature between 35°C and 40°C. That would be absolutely ideal for an isolated island resort.

 

It should be noted the fresh water on an island creates what is called the “Lens Effect”. This means that a low sandy island just a few feet above sea level can have a water table which can be 3-4 times the height of the island because the fresh water forces the salt water out and creates a lens-shaped aquifer under the island. In addition to ground water you should make arrangements for rain water cisterns, and an many areas of the world people rely for all their drinking water on cisterns.

 

Another facto to consider is that if your island is close enough to a water source on the mainland or another larger island you can run a PVC several kilometers as long as the water between is not too deep.

 

www.watermakers.com

www.ecotech-dla.com   

www.nutriteam.com/distiller.htm

 

It should be noted that on many tropical islands fresh water creates what is called the “Lens Effect". This means that a low sandy island just a few feet above sea level can have a water table which can be 3-4 times the height of the island because the fresh water forces the salt water out and creates a lens-shaped aquifer under the island. Another factor to consider is that if your island is close enough to a water source on the mainland or another larger island, you can run a PVC several kilometers as long as the water between is not too deep.

 

Climate: Islands can be divided into three climactic types: Temperate, Mediterranean and Tropical. In general, tropical islands are located between the tropics of Capricorn and Cancer - this encompasses what is termed the tropics. Mediterranean islands can be deemed to be those that may fall in areas where there are high temperatures but low rainfall, this is typified by islands in the Mediterranean, the Canary islands, Bermuda, Bahamas etc. Temperate islands are basically those that are in an area where it is generally cold such as northern Europe, Canada and northern USA.

 

You should consider carefully what type of climate you prefer. Each has its pros and cons and while many people love the tropics, some find the heat and humidity oppressive. One person may find temperate islands to be his or her idea of hell, but some people love the change of seasons and the variety that produces. Obviously, Mediterranean climate produces the best balance of heat without the high rainfall and humidity of the tropics. Always be aware that the first day you visit an island may not be the typical weather that the island experiences on a day-to-day basis. The weather could be particularly uncommon in regards to the fact that it may be exceptionally beautiful, or exceptionally bad. You should ask local people, especially fishermen are very knowledgeable about the weather, the typical seasons and weather patterns for the island and surrounding area. Islands in the ocean are prone to flooding, storms, drought, seasonal tidal variations and strong currents. Islands located in lakes are the least prone to problems because they have no tides or large storms, but can be prone to seasonal variations in water level if the lakes are dammed. Islands that are located in rivers are obviously prone to flooding and droughts.

 

Talk to the local authorities and ask them for the highest and lowest recorded levels for the river. Good anecdotal evidence can be gathered by talking to local people as well. Islands are located in bays and estuaries with shallow bottoms are prone to tidal variations, and access to these islands may be very difficult at low tide. Offshore islands also experience the usual tidal patterns, and are the most prone to dangerous weather.

 

Development: My advice is that if possible it is better to buy a developed island, than a virgin island. There are many reasons for this, but basically it will be cheaper. If you have no experience of building on an island (99% of buyers) then you will definitely end up spending more than you budgeted for development. Secondly, it is always cheaper to buy what somebody else has built than to build yourself. Finally it is always easier to buy an island that has been developed by somebody else than to develop it yourself.

 

The style of development you plan for the island I very important when choosing what type of island to buy. For instance, if you only want a small holiday house then an island between 1-5 hectares (2.5 – 12 acres) should be sufficient. If you want a larger house and maybe some additional cottages for friends to visit and island 5-10 hectare (12 – 24 acres) is best. If you are planning a small scale resort then an island of at least 10-15 hectares (24 – 37 acres) should be the minimum. If you are planning a large scale resort then an island of 15-20 hectares (37 – to 48 acres) should be considered the minimum, and you will need a minimum of at least 6-10 hectares (14-24 acres) of flat land for building. The type of construction and how remote the island is will also affect the price that it costs to develop. In general you can expect to pay 30% more for development on an island than for a similar development on the mainland. The cost of building is higher because all materials and workers must be transported to the island.

 

Intended Use: There are as many possible uses for islands as there are islands. Islands land themselves to a multiplicity of uses, dependant on a great variety of factors, including the island itself, and the wishes of the potential purchaser.  In general, the two major uses are either for use as a resort, all for private residential development.  Here are some pertinent questions that you should consider carefully when considering the island for either purpose.

 

 

Accessibility: Accessibility is a prime factor in your choice of an island and directly depends on much discomfort and traveling time you are willing to put up with.  It also depends on how much experience you have with boats, and how comfortable you are with the ocean because the only way to get to an island is by boat. Travel time by boat is also affected by many factors such as what type of boat, its engine, and of course the seasonal weather conditions. You must take into account that no matter how sheltered and island you must still put up with rough seas. If you are the kind of person who wants less traveling you will find that the closer an island is to an established town the more expensive it generally is.

 

It has been stated that you shouldn’t consider and island more than 5km from the mainland. While that would be ideal there are just too many nice islands that are further than that, and once should take into account what transportation services are available. For instance in Fiji, the Seychelles, and many other places seaplanes and helicopters are widely available, and while that is an expensive option for full-time living, if you have an island as a retreat part of the year and only plan on coming and going once then this isn’t an issue.

 

It has also been stated that development on the mainland is a “prerequisite”. While it would be ideal and desirable to have a nice town with services within 5kms of your island, that is subjective and some people prefer no to have neighbors. It ultimately comes down to personal preference, and if you are the type of person who needs the paper every morning, and likes to go shopping and to restaurants and bars then you should seek an island that isn’t too far from those things. However, if you desire privacy, are familiar with boats and the sea, and are capable of living in an isolated position then those restrictions don’t apply to you.

 

However in general you must take into consideration that the journey by boat from the island to nearest town must be considered when the weather is bad, and the trip can become hazardous and far longer than in good weather.

Anchorage: Select an island with good anchorage, because without this, it may be almost impossible to land on the island. Or, even worse, you may be stuck on the island and not be able to get off. A good anchorage should be sheltered from the prevailing winds, have a sandy bottom for good holding, and have a deep water access to the beach, without rocks or coral. If you aren’t experienced with boats, ask the captain that takes you to the island if he considers the island to have a good anchorage. Nearly all islands have some form of anchorage, but the quality varies dramatically. A good island should have a good gently sloping sandy beach with good access through the coral, and shelter from the prevailing winds. However, a mooring buoy and a tender can solve this problem. The ideal island should have both shelter and good spot to land a boat. So it's important to see the island at high and low tides.

 

Topography: Islands vary from the perfectly flat Caribbean style island to the rocky cliffs and mountainous types. If you have a preference, it's important that you tell brokers you contact of the type of island you want. Most islands aren’t flat, and on what are called continental islands (the drowned tops of hills) there is only a small area of flat land. In general, the area of flat land on a continental island is approximately 10-12% of the island and this must be taken into consideration when planning your development.

 

Beaches:  In most islands the beach comprises only a portion of the island. It very rare to get islands with 360 degree sand. This means that where the beach is located is important. Firstly, the beach is generally on the opposite side of the prevailing winds, offering a sheltered anchorage. Most people prefer that island also have a western facing beach so that they can watch the sunset. But if this isn’t available, there may be hill or headland which offers a nice place to watch the sunset. While a western facing beach is ideal, sunsets only last for 30 minutes a day, and this should not be a deterrent when considering an island. The quality of the sand is another major consideration that most people dream of. Sand quality depends on two things, the degree of fineness and whiteness. The fineness of the sand is more important than color. Fine brown sand may be preferable to coarse white sand - it's not as nice to look at, but is nicer underfoot, and it's one of the joys of living on an island to walk barefoot along the beach at sunset and sunrise looking for shells. Another important factor you must consider is whether the beach is shallow or steeply dropping off and if it is rocky or sandy. Obviously the ideal beach is fine sand which drops off into deeper water ideal for swimming and snorkeling. If you have a preference that’s important you should inform your broker so they can take that into consideration.

 

Inhabitability: It has been stated that one should not consider an island inhabitable unless there is a hospital within a 90 minute radius, because you might get hit on the head by a coconut!

 

Seriously, of course having medical help in an emergency is vital, but there are millions of people in first would countries such as the USA, Australia, Canada etc who live more that 90 minutes from a hospital and exist without alarm. I should know I am one of them, and I live in one of Australia’s major tourism destinations.  Luckily these days there are a host of international services who provide medivac services by private jet and helicopter anywhere in the world, and this can be paid for as part of your normal medical insurance, or can be paid for privately.

 

www.internationalsos.com 

www.medexassist.com/individual.cfm

www.airambulancecard.com

www.aerocare.com

www.911abroad.com

 

Infrastructure: An island with buildings on it will usually need an on-site caretaker, who will water the plants and keep the houses clean. Building infrastructure on an island can also be more costly than on the mainland as all supplies and workmen must be transported by boat. Many islands are virgin islands - they are completely natural, untouched and without infrastructure whatsoever. In that case, there's nothing to consider apart from the potential of the island. But if the island has existing infrastructure such as a resort or residence, then a detailed survey of the quality of those infrastructures should be undertaken before purchase. If you are buying an island with existing infrastructure, make sure that the buildings have all necessary government permits, and possibly take along an architect or building surveyor to give an independent assessment of the value and quality of the buildings, and any damage or repairs that may be necessary.

 

Caretakers: A good caretaker is the single most important thing you can do to protect such a large investment. Since an island is isolated, it is hard to protect while you are not there, and whether it is a short visit away, or you only visit the island seasonally, a caretaker provides much need protection. Most high-end island owners employ full-time caretakers (there's even a newsletter called Caretaker Gazette), while others pay local fishermen to keep an eye on things. Islands in the highly trafficked Caribbean are more susceptible to crime than those in entirely out-of-the-way locations, especially if they have a trespasser-friendly airstrip.

 

Most high-end island owners employ full-time caretakers (there's even a newsletter called Caretaker Gazette), while others pay local fishermen to keep an eye on things. Islands in the highly trafficked Caribbean are more susceptible to crime than those in entirely-of-the-way locations, especially if they have a trespasser-friendly airstrip. If your island is in a tourist area tourist are always attracted to islands, and an unprotected house is an invitation to vandals and thieves.

 

Apart from securing the property against unwanted visitors and squatters, the caretaker can look after buildings and equipment making sure all in good order and condition, This is especially important in the tropics where the monsoon can cause severe damage to buildings in a very short period if maintenance is not keep up regularly. While you are there the caretaker can also act as gardener, handyman and obtain deliveries for you from town. Generally it’s wise to employ a couple as they can do multiple jobs, and it makes it easier to get them to stay settled.

 

The best place to either find a caretaker, or get a job as one is The Caretaker Gazette

 

www.housesit.org 

PO Box 4005-M

Bergheim, TX 78004 USA

Phone: (830) 336-3939

E-Mail: caretaker@caretaker.org

 

Utilities: A prime consideration when purchasing an island is communications. An island is separated from the mainland, and thus communication is highly important; both for safety, and emergency situations, as well as just ordinary day-to-day living. It's extremely rare for an individual island to have regular utilities such as town water, electricity, telephone lines or even television reception. In the majority of instances, you'll have to be self-sufficient as far as water and electricity go, so that should be factored into your development costs.

 

Communications: An island is separated from the mainland, and thus communication is highly important; both for safety, and emergency situations, as well as just ordinarily day-to-day living.  It's extremely rare for an individual island to have regular utilities such as town water, electricity, telephone lines or even television reception.

In the majority of instances you'll have to be self-sufficient as far as water and electricity go, and that must be factored into your development costs.

 

However, the island may have television reception, or access to cellular telephones signal.  Having access to a cellular network means that communication is cheap and readily available.  In some instances the cellular network can be used to access the Internet. It's a good idea when examining potential islands to take a cellphone, small radio, and hand-held TV set to see what signal is available. But even poor signal from a cellular network can be boosted by the use of an extension antenna. Telephone, Television, internet and radio are all relatively cheaply available nowadays using satellite technology.  So don't worry if services are available from the mainland.

 

Island Health:  A supposed island expert who should know better stated..

 

"When I see white-sand beaches, that's a red flag to me that there are too many sandflies."

 

Well I think that is the most ill-informed comment I have ever read about islands, and absolutely untrue. Firstly, the color of the sand has nothing to do with the presence of sand flies, and sand flies are not present everywhere in the tropics. They are present in some countries, and missing in others, and in many countries they only occur in certain areas. However sand flies are annoying and can pose health problems, so if  this is a factor check if the country or area you are looking at has them present.

 

It has been stated that you should be careful about tropical islands because of mosquitoes and tropical diseases. Yes those issues are true, this is scare mongering but it is a matter of degree. After all even the USA can be dangerous…

 

Go to www.worldtravelguide.net Select the USA and then click "health" and you will see that it states …

 

 

Further research will show you that sand flies are endemic in Florida, that in the north eastern US you are in danger of Lime Disease, and in the South West there is the possibility of Bubonic Plague in wild species! See what I mean? Of course I am not denying these are legitimate health concerns and should be taken into account when choosing an island, it is the degree of danger which must be taken into account.

 

I live in Port Douglas, on Australia’s Great Barrier Reef, and occasionally we have outbreaks of Dengue Fever. We have over a million tourists a year come to our area, and do they make hysterics about Dengue Fever? No of course not. Last year just 38 people became infected, which means even though I live here the chances are infinitesimal that I would get it. Bora Bora one of the most well respected tourist destinations on earth has just had a Dengue Fever outbreak. Did that mean people stopped going there? Of course not.

 

It is all a matter of pros and cons. Yes, if you live in the tropics there are mosquitoes, occasionally there is a chance you may get malaria, or Dengue Fever, but the chance of this happening can be reduced 95% by simple measures. Stopping sand fly bites is as simple as covering yourself with baby oil.

 

Mosquito bites can be prevented by using mosquito nets impregnated with pyrethrum, repellant, mosquito coils, and a variety of new technologies such as the Mosquito Magnet® and a host of other products.

 

www.rushhampton.com/mc_inf-R.pdf

www.hammacher.com/publish/72022.asp

www.mosquitosolutions.com

 

Ownership:  In many countries ownership of an island only extends as far as the high tide mark, with the beaches below that belonging to the government. In general, this means that you own the island, but cannot develop below the high tide mark and the beaches may therefore not be yours. When buying islands in foreign countries, you should engage an attorney to do a full check of the island's documentation. At the time of inspection, find out who is living in the island, and if they have a legal right to be there. Squatters can be a problem, and great care should be exercised that they are not present before the deal is concluded.

 

More Information About Private Islands:

 

How To Buy A Private Island: The Online Guide 

The Private Islands Blog   

The Islomaniacs Society 

Cheyenne’s Island Store 

The Islomaniac’s Store   

 

Please beware that there are very few private island experts in the world, and there are websites with people passing themselves off as island experts who have never lived full time on an island, sold an island, or even have any real estate qualifications at all.  The internet has made it easy to gather images of islands around the world, use Wikipedia or the internet to research reports and pass oneself off as an island expert, but such claims don’t stand up to investigation. How can you claim to offer expertise and advise about a country that you have never even been to? If you claim to be an island expert with a world-wide scope then you must have actual practical knowledge of the countries the islands are in. That means actually having been there, and set foot on the islands in question.

About the Author: Cheyenne Morrison "The Islomaniac" President of the Islomaniacs Society and former owner of Coldwell Banker Morrison's Private Islands, one of the world's leading private island firms. Featured in Forbes, Fortune, Newsweek, NY Times, The London Times, CNN, CNBC and BBC TV.

 

I have worked on, explored and lived on tropical island almost my entire adult life. I was an inveterate traveler for nearly 15 years and lived for long periods of time in tropical islands. I sailed the entire length of Australia’s Great Barrier Reef at an early age, and worked on island resorts it’s length and breadth. For instance I am writing this post from the remote Ha'apai Islands, in the Kingdom of Tonga in the South Pacific, while on a visit to attend the coronation of the King of Tonga.

 

 

I also met and lived with others who shared my passion for islands, and absorbed their accumulated knowledge. These islomaniacs as we are called are all listed in my blog, and read there stories for 'real' first hand advice. To see all my posts about other islomaniacs Click Here   

 

I ended up in the Philippines where I lived a year on my own magnificent tropical island, and explored the 1,707 islands of Palawan, dubbed the “Last Frontier” of the Philippines by Jacques Cousteau. I fulfilled a life-long dream by living for a year alone in a tiny nipa hut in the Philippines on the magnificent Pinagbuyatan island, pictured on the cover of the Lonely Planet Philippines.

 

You can read the story of this adventure in Get Lost Magazine, Australia. Full scans of that article can be seen at these links… Page 1   Page 2   Page 3