Picture sun-kissed beaches, hammocks strung between palm trees, blissful quiet and total privacy. A fantasy of the chosen few on this planet? Well, not anymore. With a few million bucks in the bank and a host of private islands to choose from, this flight of fantasy could soon turn into a sweet reality. The days when islands were the exclusive status symbols of the rich and famous are long gone. Today, if you can afford a reasonably priced cottage, you?ve got what it takes to afford an island.
According to Farhad Vladi of Vladi Private Islands, an agency with its headquarters in Germany, specialising in selling and renting out islands, the demand for private islands is on the rise. And prices are increasing approximately 10 to 20% per year. Vladi attributes the upswing in part to buyers who regard owning their own island as an escape from the stresses of modern-day living. ?Increasing environmental problems, inflated property prices, frustration in the workplace and overpopulation have made owning an island even more desirable,? he says. A private island is one of the best investments money can buy. ?Buying the right island at the right time and place can be one of the most profitable investments you could ever make,? says Navin Raheja, managing director, Raheja Developers.
There are thousands of islands for sale all over the world, from the Caribbean to Central America, costing anywhere from US$2,00,000 to US$2.5-million. And while prices are going up, many islands still have a price tag under a million dollars. Following are the steps to getting your own piece of paradise.
Research: Start by browsing ?for-sale? islands on the Internet to get an idea of where you want to buy. Islands are a niche form of real estate, so you need to deal with people who are aware of any special restrictions or laws pertaining to their purchase. A case in point would be certain Caribbean islands, where non-residents of the British Virgin Islands and Anguilla require such licenses and will also be subjected to a background check and police reference.
Cost: With private islands, you need to think about how much it will cost to make the island liveable. Some private islands are already fully developed, while some others require huge amounts of money for development. It is always advisable not to spend your entire fortune on buying your island because it becomes impossible to create an exact budget for developing an island.
Basic Infrastructure: Water and electricity should be your main concerns if you?re island shopping. If there?s no fresh water source on an island, a desalination system makes salt water drinkable. Generators and solar panels can supply electricity to run your home.
Take it for a spin: An excellent way to determine what type of property is best for you is to rent an island for a while. Renting an island gives you the chance to ?test drive? island ownership, and learn exactly what you?re looking for (or want to avoid) in an eventual island purchase.
And how accessible is this dream for the growing band of rich Indians? ?It is certainly possible to buy an island, even for an Indian. However, there is no significant demand from Indian individuals in this particular market segment and there are one-off instances of islands being acquired for commercial development purposes, such as Ozone Developers? acquisition of an island off Goa,? says Anuj Puri, chairman & country head, Jones Lang Lasalle Meghraj.
There are two modes of going about buying an island ? the freehold and the leasehold routes. In the freehold route, the buyer owns the island in the same manner as he would own a home. In the leasehold route, the buyer purchases the rights over an island for a certain period of time, much as it would apply in any other property.
Checklist for Island Buyers
Title Only an unencumbered freehold title is acceptable
Medical Medical services must be within a 90-minute radius of the island
Fauna Can you live with indigenous animals on the chosen island?
Flora Get familiar with trees and plants, pros and cons
Host Country Social environment, acceptance of foreign investment
Access Is the island accessible? Harbour, anchorage, landing etc
Infrastructure Water, sewage, electricity, telephone, internet
Building Permit Availability of permit, size of house, type of development
Climate Get familiar with the weather and climate conditions
Island Surroundings Neighbourhood, amenities, services and also crime level
Island Value (investment) Island market: locally-driven and/or by foreigners
Island Seller Notes on dealing with owner directly, licensed agents or third party
Source: http://www.vladi-private-islands.de