Owning a private island is a fantasy for most people. If you’re in a position to make a private island your home away from home, congratulations! If you’re not quite there yet, then it’s a fun thought experiment to see if you might want to spend your millions on a remote piece of property in the future.
As with any real estate transaction, you’ll want to do your due diligence before you sign on the dotted line. This article can help you think through what you want to get out of owning an island, potential costs and labor, and how to navigate this type of major investment so that you and your loved ones can enjoy it for years to come.
Reflect on Your Goals
It’s important to think through your preferences when it comes to the location, size, climate, and terrain of an island. Do you like to relax on a tropical white sand beach or be surrounded by untouched forests in a cooler climate? Is the island for private use only? Do you plan to develop it for visitors, renters, or maybe even as a luxury resort down the line?
You can find islands that are fully developed and ready for move-in, as well as ones that are more or less untouched and in need of basic amenities. Be very clear about what you are willing to put into a private island and what you want to get out of it.
Weigh the Cost
The overall cost of a private island varies based on a number of factors. Location, size, popularity, existing development, how secluded it is, and annual property taxes are all important elements. Beyond the initial purchase, don’t forget about the ongoing costs for upkeep. These may include seasonal work, general maintenance, and emergency repairs.
An advisor in private wealth management can offer support if you need help walking through the best way to analyze and approach this type of major purchase. They can also advise you on what kind of risk you are taking on, how your investment might perform over the short and long term, how to make the most of this and other substantial investments, and what steps to take to protect and preserve your wealth.
Plan for Infrastructure and Amenities
Some private islands are fully developed and easily accessible, while others are more remote and hard to reach. If the island you’re eyeing happens to be the latter, you may be signing up to spearhead the construction of buildings, roads, fresh running water, electricity, waste facilities, and other necessary infrastructure.
You’ll also need to consider medical facilities and map out where you and your guests will go if there is an emergency. It’s also smart to think forward to how you’ll get everyday items like groceries, household supplies, and deliveries. You may need to plan in advance to ensure that you bring everything to the island with you for each trip or risk a multi-hour expedition if someone forgets to buy milk.
Think through Travel and Transportation
How will you get to your private island? By boat or plane? Will you have to charter transportation, or do you have your own? How will you get around once you are on land if there aren’t any roads? Make sure to include the cost of private travel and transportation as part of your overall investment if you are looking for somewhere off the beaten path.
The opportunity to own a private island and make it your own doesn’t come around every day. Gather the information you need to make an informed decision so that you can enjoy every moment of your oasis with no regrets.
Published by: Martin De Juan
