While No Man Is An Island, It Is Actually Not Too Difficult to Own One

It is, perhaps, one of the most common fantasies of all: hand in two weeks notice, pack up the family and decamp to your own private island. But at what price is paradise? Believe it or not, buying an island does not necessarily have to mean dropping tens of millions of dollars on an unsullied hideaway in the South Pacific. According to Cheyenne Morrison, broker/owner, Coldwell Banker Morrison's Private Islands in Queensland, Australia, every year there are anywhere between 300 and 400 islands for sale worldwide, with price ranging from as little as $135,000 all the way up to about $35 million. And, in addition to being an emotional purchase, buying an island makes good economic sense; islands are in increasing demand despite a finite supply, a classic equation for appreciation.

The largest inventory of islands for sale can generally be found in Canada in British Columbia and Nova Scotia, as well as lake islands throughout Canada, in addition to Belize, Honduras, St. Vincent and the Grenadines, the Bahamas, Panama, French Polynesia and off the coast of Florida.

However, wanting an island and actually purchasing an island are two very different things. Morrison believes that the best island owner is self-motivated and capable of doing a lot of things for him- or herself. He notes, "You must be responsible for your own meals. You must love the ocean, whether it is stormy or threatening, and be able to handle boats, perhaps single handedly. Also, you may need to do some of your own upkeep, as facility maintenance accessibility of materials can become pricey and complicated."

Top Factors to Consider When Purchasing an Island

Morrison, who has an inventory of 145 islands around the world valued at more than USD $500 million, suggests bearing in mind the following when considering an island purchase.

Price: Spend at the high end of your resources, even if it is necessary to wait a bit. "Budget shopping" for an island typically will result in the purchase of a lower quality island, which could slow your investment returns.

Location: Location is clearly vital. Location doesn't only mean its physical location in the ocean, but also infrastructure and access to supplies. Determine the proximity of the nearest airport as well as nearby villages for staff, supplies and emergency medical care.

Water: It may seem elemental, but access to fresh, potable water is the most important part of living on an island. The general rule of thumb is that the smaller the island, the less water; conversely, larger islands have more water. However remember that large islands that are rocky often have trouble producing water. Look for a ground water table high enough to dig a well. If one already exists, have it inspected to make certain it is dependable.

Climate: There are essentially three climactic types: temperate, Mediterranean and Tropical. Mediterranean climates typically have high temperatures and low rainfall. Tropical islands are located between the tropics of Capricorn and Cancer. Temperate islands are those that are in areas with typically colder weather, such as northern Europe, Canada and the northern United States.

Carefully consider the type of climate you prefer, as each has its own pros and cons. Visit your potential island frequently to gauge the weather systems. Ask locals, particularly fisherman, about the typical seasons and weather patterns for the island as well as the surrounding area.

Accessibility: This is a key consideration as it directly correlates to how much traveling time you are willing to invest. It also depends on how much experience you have with boats and how comfortable you are with the ocean since the only way to get to an island, most of the time, is by boat.

Anchorage: It is crucial to have a good anchorage, because without this it may be almost impossible to land on the island. Or, you may arrive and be stranded. A good anchorage needs to 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 this is new to you, ask the captain who takes you to the island if he considers the anchorage good.

Topography: Determine your preference: flat or rocky cliffs and mountains. Most islands are not 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 idea of flat land on a continental island is approximately 10–12 percent of the island.

Infrastructure: If the island has been built up it will require an on-site caretaker. Note that maintenance on an island will be more expensive than normal since supplies and laborers must be brought in by boat. When examining existing structures make sure they have all required permits and consider taking along an architect or surveyor to assess the value and quality of the buildings.

The dock is critical to your transport to and from the island, so scrutinize its age, construction method and condition. Building and repairing docks can be one of the most expensive propositions of island ownership, so bring an expert with you to evaluate the structure.

Also be sure to hire a reputable caretaker. Since you most likely will not be on-site on your island 12 months of the year, you will require a caretaker of the highest order to protect your investment.

Utilities: Living off the mainland will require you to ensure that you have reliable communications infrastructure for safety and emergencies. If your island already has television reception or access to a cellular network, then communication is inexpensive and readily available. When you visit your island prior to purchase, bring with you a cellular phone, small radio and hand-held television set to see what signals you pick up.

Ownership: In many countries ownership extends only as far as the high tide mark, with the beaches below that belonging to the government. In other words, you can not develop below the high tide mark. Have your attorney check the island's documentation and find out who is living there and whether they have a legal right to be there. Squatters can pose a significant problem, so it is important to resolve any potential issues before your deal is complete.