For centuries, the rich and famous have owned private islands, but while the picture of palm trees, white beaches and turquoise waters sounds alluring, there is an even greater allure.. PROFIT!
A private island is one of the best investments money can buy. Buying the right island in the right time and place can be one of the most profitable investments you could ever make. You have not only an affordable retreat for family and friends, but a strategic investment that increases exponentially in value over time.
In the 1950’s many of those haunted by the evils of war, or who had traveled through the South Pacific dreamed of escaping the world to their own private island. The strong increase in sales quickly drove prices up and in 1973 Donald McCormick the author of “How To Buy an Island” wrote…
“Many islands have risen in value over the past forty years by more than 500%”.
During the past 20 years demand for private islands has grown steadily, while the supply remains the same. Increasing demand and diminishing supply is a time-honored formula for a good investment.
Islands are a limited commodity, and offer an incredible investment as they appreciate rapidly. Demand is a so an important factor. Indeed, the supply-demand balance is perhaps much more significant than for other real estate as one cannot just create another island.
Right now, there are less than a thousand islands for sale around the world, some have houses, electricity and water, some have nothing but sand and a few palm trees. Prices range from as low as US$20-30,000 up to $56 million. Over the last 10 years the price of islands in some areas of the Caribbean has increased by up to 300%, that’s over 30% per year, a great investment in any terms.
The trick with purchasing an island as an investment is to buy in the right area at the right time. How? Well you must find an area with all the necessary requirements such as beauty, accessibility, stable government etc but where the market is just beginning.
It’s not too late, there still are places left where you can live out the dream of owning your own tropical island.
Michael Marquette of Marquette Turner points out: “The value of an island depends on various factors such as location, size, proximity to the mainland, accessibility, climate, topography, existing infrastructure, other developments, local communities, redevelopment potential, political stability of the mainland country and the legal and taxation implications of owning an island”.
Whether it be an island in the British West Indies, US Virgin Islands or Bahamas, for example, whilst buying your own island may seem a little unlikely, it’s worth remembering that you’ll only ever reach as high as the goals you set!
Also read: Islands of the Rich and Famous