For some people, a private island is the ultimate dream. It conjures up images of travel by yacht, seclusion and true exclusivity. And in some cases, it may even be a reality. Private islands are available for purchase in a variety of locations around the world, and some are owned by celebrities and well-heeled businesspeople. Oracle owner Larry Ellison, for example, owns a 98 percent share of the Hawaiian island of Lanai, while Virgin’s Richard Branson has five islands on the British Virgin Islands.
But, despite the celebrity status and the price tags that go with them, there is more to owning an island than merely purchasing one. “As with any real estate, the location is critical,” says Chris Krolow, CEO of Private Islands, a Toronto-based firm that sells about 20 to 25 islands per year. “Getting there is another consideration,” he adds, noting that most island purchases do not come with structures or amenities like plumbing or power. “And once you get there, there are additional costs for things such as a dock or ferry.”
And, of course, it isn’t just the initial purchase that carries a hefty cost: building an island takes time and money. Depending on the size of the property, it could take years to turn it into the dream home or resort. And, once construction is done, there are still ongoing expenses to consider: insurance, maintenance and taxes.
“Then there are all the things you must do to maintain the island,” says Krolow. “This includes things like getting rid of invasive species, making sure there’s enough fresh water and maintaining the ecosystem,” he adds. “There are also ongoing costs of power, water and sewage.”
Of course, there’s the matter of the weather to consider: hurricanes and other tropical storms can wreak havoc on any island. And, even if you’ve got the money to pay for all of these extra costs, there is always the possibility that someone will want to claim sovereignty and form their own independent country on your little piece of paradise.
But, despite the risks and the hassles, the allure of an island for sale is enough to draw many wealthy buyers. For some, it’s the perfect spot to entertain friends and family; for others, it’s an opportunity to live a Robinson Crusoe fantasy. And, of course, there’s also the fact that owning an island can make a great vacation spot.