Many people own private islands around the world, including celebrities and billionaires, such as Richard Branson, Johnny Depp, Larry Ellison and many more. Some own them as permanent residences, business opportunities or vacation getaways. When you buy a private island, you have the impression of owning a corner of paradise in complete privacy; a dream come true. However, besides the financial commitment, there are many factors people need to consider before purchasing a private island. They should assess whether it is worth owning a private island and consider the hassle associated with such a big step. Here are some tips on what buying a private island entails, the logistics involved in such a transaction, and the pros and cons of getting involved in the process.
How much does it cost to own a private island and where to find it?
When you decide to become the owner of a private island, you must first think about the cost of purchasing this land. Many people wonder about the price to pay to acquire a private island. There is no short answer to such a question. For example, the number will depend on the size and location of the land and the development already on it. Some islands are priced as low as $65,000, while others can go as high as $160 million. In addition, inhabited islands with running water, electricity, accommodation and other facilities will cost a few million dollars. Thus, people who want to benefit from all these options will have to be millionaires at the very least.
People also wonder where to find private islands. The answer to this is not so complex. Indeed, private islands can be found all over the world. They can refer to the professional agency Private Islands Inc, which specializes exclusively in the sale and rental of private islands throughout the world, particularly in the Caribbean, Asia, Africa, Central America, South America, Europe, the South Pacific, the United States and Canada. The list includes approximately 40 countries, territories and states.
Here are the benefits of owning a private island
Many believe that owning a private island is the ultimate dream, and they are right to think so. This is because there are a lot of benefits to taking this step.
Exclusivity
When you have something rare, you get a desirable asset. Indeed, value and status are determined by rarity. Although many private islands can be found to buy, the numbers remain in the hundreds. Thus, owning a private island will allow you to join a very exclusive club.
Rental value
When rented, mainland properties do not generate as much income as private islands. This is due to the greatest financial outlay at the purchase stage. However, another reason for this higher rental value is the exclusivity factor of the private island, which means its owner may charge tenants a premium.
Privacy
Most people looking to buy a private island care a lot about the privacy it provides. After all, the “private” is inside the “private island”. Whether one wants to live in calm and serenity or throw lively and noisy parties, they will have the opportunity to do so without worrying about neighbors or other people disrupting their life choices.
Here are the cons of owning a private island
As there are many advantages to owning a private island, there are also many disadvantages to this property. People who want to take this step should carefully consider those factors that could cause them problems in the future.
Costs
In general, owning a private island will essentially cost several million dollars. This is especially true if one wants to buy an island with accommodation, running water, working electricity, and several living conditions. People can still make a much smaller investment by buying an undeveloped island. However, their costs will skyrocket when they want to set up the required infrastructure, which could bring their total cost down to the eight-figure mark.
Logistic problems
Before buying a private island, one must ensure that there are no logistical problems. For example, a supermarket must be available if there is a shortage of bread or milk. A hospital should be there in case of an emergency. Many private islands do not have these locations, making them impractical in the event of incidents.
Constructing practical impossibilities
When people buy a private island, they think of building their own houses or mansions there. However, they must take into account that materials will have to be shipped or transported by air, autonomous water supply systems will have to be organized, labor will have to be hired, and systems for Internet connection, sewage , and solar panels will have to be installed. In addition, many building rules and regulations will have to be complied with. All of this creates construction difficulties that people who intend to buy a private island should be aware of.
