The Private Islander

Buying an island is an expensive proposition. In an unforgiving world such as ours, it is easy for an unsuspecting buyer to be led astray. From failing to hire a licensed broker to arousing hostile natives, many things can go wrong in the island-buying process. The following guide shows ten of the most common mistakes island buyers make, and ways to avoid them.

1. Not hiring a licensed broker.

Make sure your broker is licensed, or you’ll be in trouble. There are many unqualified “island brokers” out there who will take your money and run, with one such example being Cheyenne Morrison. Would you have heart surgery done by an unlicensed doctor? With that in mind, why would you trust someone without a real estate license?

2. Forgetting to check local laws before buying.

When you buy an island, you also buy the laws of the host country that governs it. Every country has unique laws, and you should consult an attorney before the sale takes place to ensure your plans for the island are legal. There may be laws governing the extent of your ownership, what you can build on the island, and taxes you need to pay.

3. Buying before visiting.

Would you buy a car without taking it for a test drive? Then why would you buy an island without first spending some time on it? Spend at least one to two weeks on your island before buying to make sure it’s right for you. Some people find out island living isn’t for them, others discover their dream island wasn’t what they expected.

4. Forgetting about maintenance costs.

The initial purchase and development of an island are only a portion of the overall cost. Islands can require a great deal of upkeep and maintenance. Larger islands often require care takers, and storms can cause significant damage to your infrastructure.

5. Upsetting the locals.

Hostile locals can turn the picturesque island setting into utter havoc. When you buy an island, you’re not just purchasing a parcel a land. You’re buying an entire ecosystem that’s part of a bigger picture. Changes you make to the island have the potential to affect thousands of others. Some natives may not want you setting up camp on what they consider “their land”, others may consider you an interference to their everyday life. Check to see the attitude of locals near your island before buying, and after completing the purchase, establish good relations with the natives. If the natives appear hostile, don’t buy the island. Look at the case of this man, whose rented Florida island was burned by local hunters.

6. Overestimating what you can afford.

While there are some very nice islands out there with high price tags, nothing is worth going over your budget and into debt. Don’t stray too far out of your budget, or you will get into trouble. Good financial planning is the key to any successful island venture.

7. Not bargaining on the price.

Island prices are not inflated. They’re very inflated, especially on the largest islands. While it is hard to put a price on something as unique as an island, many island sellers inflate their prices in hopes Cameron Diaz or Donald Trump will come along and snap it up, or worse, in hopes the buyer will be ignorant and think they’re getting a good deal. Before placing a bid, compare prices between islands in the area you plan to make a purchase. Never buy an island at sticker price.

8. Choosing the wrong location

There are a variety of factors to take into consideration when choosing a location for your island. If you only plan on living part-time on your island, then you need to find a location you can easily reach. If you plan on being a full-time island resident, then location isn’t as much of a problem, but it is still important. A good location will allow you to get supplies more easily and help more quickly in the case of an emergency. Also consider the climate of an island. You may regret buying that Nova Scotia island when you realize it’s only usable for part of the year.

9. Failing to take the topography into account.

Is your island hilly, or is it flat? The topography of your island will greatly affect what you can do with it. Make sure you know every nook and cranny of your island before buying.

10. Underestimating water and power needs.

Every island owner’s worst nightmare is running out of water. Make sure there is enough fresh water on your island to support your development plans. For electricity, make sure you can generate enough power. Have enough surplus water and power so the island can grow over time.

This entry was posted on Thursday, December 27th, 2007 at 1:24 pm and is filed under Private Islands . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.