Is A Private Island Worth The Investment?
Many people own private islands around the world, including celebrities and billionaires, such as Richard Branson, Johnny Depp, Larry Ellison, and many others. Some own these as permanent residences, business opportunities, or vacation getaways. When one buys a private island, they will feel like they own a piece of paradise with complete privacy; a dream come true. However, apart from the financial commitment, people must consider many factors before purchasing a private island. They should weigh whether it’s worth it to become a private island owner and consider the hassles associated with such a huge step. Here are some tips about what a private island purchase entails, the logistics involved in such a transaction, and the pros and cons of getting involved in this process.
How Much Does It Cost To Own A Private Island And Where To Find It?
When deciding to own a private island, one must think first and foremost about the cost of purchasing this land. Many people wonder about the price they’d have to pay to acquire a private island. There is no short answer to such a question. For instance, the number will depend on the size and location of the piece of land and on the development that is already there. Some islands are priced as low as USD 65,000, while others can reach the USD 160 million mark. Moreover, inhabited islands with running water, electricity, accommodation and other facilities will cost a couple of millions of dollars. Thus, people who want to benefit from all these options will have to be millionaires at the very least.
People also wonder where they can find private islands. The answer to this is not so complex. This is because one can find private islands anywhere in the world. They can refer to the professional agency Private Islands Inc, which specializes exclusively in selling and renting private islands worldwide, including in the Caribbean, Asia, Africa, Central America, South America, Europe, South Pacific, the United States, and Canada. The list goes on to include around 40 countries, territories, and states.
Here Are The Pros Of Owning A Private Island
Many believe that owning a private island is the ultimate dream, and they are correct to think so. This is because there are many pros to taking this step.
When one owns something rare, they will be getting a desirable asset. This is because value and status are driven by scarcity. Although one can find many private islands to purchase, the numbers remain in the high hundreds. Thus, owning a private island will allow one to join a very exclusive club.
When rented, mainland properties do not generate an income as high as private islands. This is due to the greater financial outlay at the purchasing stage. However, another reason for this higher rental value is the exclusivity factor of the private island, which means that its owner can charge a premium to the renters.
Most people looking to purchase a private island care a lot about the privacy it offers. After all, the “private” is inside “private island.” Whether one wants to live in calmness and serenity or host lively and loud parties, they will have the option to do it without worrying about neighbors or other people disrupting their lifestyle choices.
Here Are The Cons Of Owning A Private Island
As there are a lot of pros to owning a private island, there also exist many cons to this ownership. People who want to take this step must look carefully at these factors which might cause them problems in the future.
In general, owning a private island will basically cost a bunch of millions of dollars. This is particularly true if one wants to purchase 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 implement the required infrastructure, which may bring their total cost back up to the eight-figures mark.
Before purchasing a private island, one must ensure there are no logistical issues. For example, a supermarket must be available if one runs out of bread or milk. A hospital should be there in case of emergencies. Many private islands do not have these places, making them impractical when incidents occur.
When people buy a private island, they think about building their own homes or mansions on it. However, they have to take into consideration the fact that the materials will need to be shipped in or flown, self-sufficient water systems will have to be organized, a workforce will need to be hired, and systems for the internet connection, sewage, and solar panels will have to be put in place. Additionally, one will have to comply with many building rules and regulations. All of that creates building impracticalities that people who intend to buy a private island must be aware of.