YOUR OWN PIECE OF PARADISE
Private islands are the quintessential escape and also the ultimate status symbol – but how do you get your hands on one?
Contrary to the image, buying a private island isn’t just for the glitterati and titans of industry –
although, along with jets and yachts, they surely
rank among the world’s most exclusive trappings
of wealth. From Scotland to the Bahamas and all
points in between, private islands offer luxury and
glamour, along with the privacy.
They’re associated with ultra-luxury as well as
carrying a whiff of aristocracy, and even though
islands can be bought in various parts of the world
for less than US$100,000, it is the sun-drenched
archipelagos of the Caribbean, Central America and
the South Pacific that truly capture the imagination,
where islands can run in the millions of dollars.
Private island ownership has a long history
among the elite: legendary Oscar-winning actor
Marlon Brando blazed a trail in 1966 when he
bought an island in Tahiti for US$270,000. Actors Johnny Depp
and Nicolas Cage famously bought islands in the Bahamas.
Leonardo DiCaprio owns 42-hectare Blackadore Caye island off
the coast of Belize, which he allegedly still plans to develop into a
eco-friendly resort. George Clooney owns a £10 million (HK$92.6
million) island on England’s River Thames, complete with
historic castle, and Steven Spielberg uses his island in Portugal’s
Madeira archipelago for escapes with the family.
It’s not just movie stars that have got in on the island game
either: former Oracle CEO Larry Ellison and Virgin boss Richard
Branson have planted flags in Hawaii and British Virgin Islands,
respectively, and the family of Caroline of Monaco’s daughter-inlaw
Beatrice Borromeo owns five off the coast of Italy.
Buying a private island isn’t technically much different than
buying any other real estate asset. The same considerations
apply: is it being purchased for personal use, rental or
development? If it’s for personal use, what are the users’
interests – diving, watersports, farming? Will there be visitors?
If it’s for development, who will be visiting?
For everyone, accessibility is an issue. How easy is it to get to,
and how developed is the infrastructure? Adding roads, water,
power and communications can add a great deal to the purchase
price. And there’s a fine line between privacy and isolation
island that’s difficult to get to is a
drain on time, energy and money.
Finally, financing can be
difficult in some jurisdictions for
international buyers. Appraisals
can be complex and laws change
from location to location. Buyers
need to determine if the land is
freehold, what the tax structures
are and – increasingly crucial –
essential, with reputable agencies including Knight Frank,