It’s the ultimate status symbol, but the reality of owning your own private island can be a little different than what most ordinary Australians expect.
Those looking to buy their own piece of paradise may be surprised to find a number of bargain islands on the market, with sales reaching just $385,000 for Worthington Island, in Queensland, according to agent and specialist Richard Vanhoff, who has been making these purchases for 18 years facilitates. .
He recently sold Pool Island in the Whitsundays for $1 million, a figure lower than the average house price in Sydney, which currently stands at more than $1.3 million.
Pool Island in the Whitsundays recently sold for $1 million. The island has its own airstrip and two homes
Temple Island, off the coast of Mackay in Queensland, is for sale for $1.7 million
Sweers Island is currently on offer after asking $3.95 million
While some islands may be cheaper than expected, there are a number of other costs that island owners must pay so those in the market generally have some money in their pockets to spend.
“If you buy an island for a million, it will probably end up with someone who makes three to four million dollars a year,” Vanhoff said.
Sweers Island is currently listed after asking $3.95 million, while Temple Island is for sale for $1.7 million with a house already built on the land.
THE HIDDEN COSTS OF OWNING AN ISLAND
For those seriously considering buying an island, the unexpected costs start with inspections.
“If the island is accessible by air, we meet (a buyer) at Cairns Airport, or Rockhampton or Mackay, and if they have an airstrip on the island, we go there by small plane or helicopter. ..the next best thing is of course a boat,” he said.
“It’s certainly to the buyer’s detriment, otherwise I’ll probably go bankrupt for everyone I take out there.”
Richard Vanhoff with his wife Narelle. The couple has facilitated purchases on private islands for seventeen years
Temple Island is for sale for $1.7 million, with a house (pictured) already built on the land
While some islands may be cheaper than expected, there are a number of other costs that island owners must pay so those in the market generally have some money in their pockets to spend (pictured, inside the house on Temple Island)
In addition, there are a number of other costs that the island owner must pay, depending on the type of island you buy.
On privately owned islands, where the buyer actually purchases an island, municipal costs are incurred, even though owners do not get access to municipal services such as waste collection.
However, most islands are sold on a leasehold basis, which allows the owner to own the land for 25 to 75 years, and this comes with rental costs that run into the thousands.
‘Even if you buy the land, you still have to pay rent every year. It’s not much, but most island owners mitigate those costs by renting out the property,” Vanhoff said.
Then there are the general maintenance costs for homes built on the island, which can add up when you consider the wear and tear that buildings near the ocean are exposed to.
HOW DO YOU BUY AN ISLAND?
While some island sales may take as little as ten days to complete, most sales take longer to organize.
This is due to the fact that most islands cannot be purchased outright, but rather can be purchased through a leasehold agreement that allows the owner to own the land for up to 99 years.
If you’ve ever wondered how active the market is for private islands, Mr. Vanhoff revealed that he gets about ten calls every day from potential new customers considering buying their own island, but not all of them are serious
For those seriously considering buying an island, the unexpected costs start with inspections
“That means we have to deal with the state government and the minister responsible process because anything we transfer to another owner has to be approved by the minister of the Ministry of Resources,” Mr Vanhoff said.
‘That could take three to seven weeks, depending on the availability of the relevant minister and his staff.’
If you’ve ever wondered how active the private island market is, Mr. Vanhoff revealed that he gets about ten calls every day from potential new customers considering buying their own island, but not all of them are serious people.
“However, most of those calls are quite light and they’re just people who like to think they can buy an island and you get the odd $30 million in the lotto, which usually triggers a few extra calls because someone told them that they ‘I’m going to win,’ he said.