Every day, another person becomes a millionaire. Because of that, crazy real estate trends are popping up here and there. For example, the ultra-rich are buying high-value real estate properties in Singapore, Hong Kong, South Korea, and many parts of Europe. People are actually buying castles, too.
It’s not surprising that the next stage is buying an island. Why an island? It’s private, it’s usually a huge piece of property, and you can tell people you own an island. You can even apply to make an island a country if you have enough money.
People seem to forget that once upon a time, very rich people in the 18th and 19th century bought large plots of land before the government started taking lands for themselves. These pieces of land were passed down from generation to generation.
Most of these properties were bought or sold for a dollar, more or less, in those periods. Considering inflation, these properties haven’t increased to the point of insanity yet. That is why people who have money are buying and selling islands like it’s candy.
At present, many tropical islands cost as much as a small mansion. The owner would just need to spend more on construction and environmental protection. Take Mark Zuckerberg who basically bought a “landlocked island” in Hawaii. While it is still part of a huge island, the price of the property on sale was a steal for the owner of Facebook.
In the United States, some people sell islands on lakes or some pieces of land off the coast. There aren’t many of those in the West coast, but the East coast has some cozy island properties that are not tropical but will do for the island shopper.
In different countries, you have to follow the laws and sometimes co-own a property with a citizen. There are property management companies that allow foreigners to do this by co-owning the property with the company. Basically, they just pay a fee for the chance to own the island, but they don’t need to follow the 60-40, 70-30, or whatever sharing laws are applicable to that island.
In some ways, yes. Islands for sale are scarce, which means that the property value will increase significantly in the coming decades. Not only that, island properties are prime real estate for commercial use as resorts or rentals. The money you put in will come back to you if you have the right business mindset.
At present, due to the value and demand, it is the right time to buy an island. Since 2008, the prices of beachfront properties and islands have risen up to 200%. An island that used to cost $100,000, now costs $1 million. In the next ten years, that island will be worth $10 million. As a buyer, you should decide whether it is a good fit for you using this data.