Whether it’s a palm-fringed atoll in the turquoise Caribbean or a chilly northern rock, to many people, a private island is like a fantasy come true. But buying one isn’t as easy as putting a deposit down on a condo or even a high-end home. Private islands can be extremely pricey, and they require a lot of upkeep.
Some buyers have a specific purpose in mind, whether they are looking for a place to vacation or run a business. Others are looking to buy a property with a particular historic or natural appeal, while still others simply want the status symbol of owning an island. Depending on the location, an island can have a view that is impossible to find with mainland waterfront properties and may also have higher rental income potential.
Most private islands are located in tropical areas, but they can be found throughout the world. Some of the most popular islands for sale are in the Caribbean, which have experienced significant demand over the past few years. But there are also many private islands for sale in other regions, including Asia, Africa and South America.
As a result, prices for island real estate can vary considerably from region to region. In general, a tropical island will cost more than an island in a cooler climate, but it is possible to find affordable islands for sale in almost any country of the world. Typically, the most expensive islands for sale are in the Caribbean and South Pacific, but there are several other private islands for sale at more reasonable prices.
The three main groups of people who are interested in purchasing an island include developers looking for a flagship property to develop into a resort, buyers who are specifically seeking an island and those who already own waterfront property and are upgrading to an island because of the added privacy and space it provides. The average private island has a price tag of about $5 million. USA islands are usually at the lower end of this range, with the majority of affordable islands for sale being located in the New England states and in the Pacific Northwest, including Alaska.
For those who have the means, a private island can be an excellent investment. But the reality is that not everyone has a million dollars lying around, and finding takers when it comes time to sell can be tricky.
For those who are considering making the leap, Greenwood recommends researching the local market in depth and retaining a reputable buyer’s agent or publication that specializes in private islands. He says that the best way to do this is to talk to locals on nearby islands, and ask for recommendations for trustworthy buyer’s agents and real estate agencies. Also, it’s essential to learn about the laws of a country in which you are looking at purchasing an island. For example, a piece of rock that breaks off from the shore and floats into international waters can be purchased by anyone who claims it, but the land closer to the shore is governed by the rules of the nation whose coastline it is.