Expats Investing in Islands
Ever wanted to own your own island?
Here’s your chance. Greece is looking for ways to put some more money into its economy and has decided to sell or offer long-term leases on some of its 6000 islands. If you have a spare €15m you could purchase 1,235-acre Nafsika, in the Ionian Sea. If, however, you are feeling less flush you could spend less than €2m on one of the smaller islands Greece has chosen to sell.
Britons account for more than 60% of property sales in Greece, and the Greek government hopes that more foreign investors can be found in order to increase local jobs and generate more taxable income.
If the Greek economy has you worried, or a sunny island in the Med isn’t your cup of tea, consider an island somewhere else in the world.
How do you choose what kind of island to buy?
First consider what you’re looking for:
- Do you want a secluded getaway for you and your family?
- Do you want a retreat that you can enjoy part of the year but rent out for the rest of the year?
- Will it be a place to hold lavish parties?
- Or a peaceful haven of calm away from your usual busy life?
- Is it a retirement location?
- Or an escape from the system?
- Is this an investment property?
- Would you like to build an exclusive enclave of holiday homes on the island?
Also think about climate and year round amenities:
- Do you want to be fairly self-sufficient? Then you won’t have such a pressing need for good communication and transport links with the mainland.
- Do you want to be able to easily access daily life on a mainland—such as schools or work? You will need completely secure and reliable mainland links.
- If the idea of a hot weather island doesn’t appeal, think about the winters and mainland access before you choose a beautiful pine covered island with a log cabin in Canada.
- Do you have enough money to invest in an infrastructure on an uninhabited island? Or do you need an infrastructure in place?
Why should expats look at islands?
Good buys: Right now is a perfect time to consider something unusual like an island purchase. Many island owners have been selling their properties in the past two to three years, in an attempt to liquidate some assets in these financially difficult times. With a sudden increase in island properties on the market the prices have dropped dramatically, making many island locations a very realistic option. True, you wouldn’t be living right in the middle of your host culture, but you could have the best of both worlds—a true escape, with access to the mainland of your host culture.
If you’re looking for investment properties, where are the best buys?
- The best investments are always going to be the islands in the tropics within areas of established tourism infrastructure. These areas must also be considered safe, with good amenities such as hospitals and airports.
- Islands in Panama are excellent choices for creating private luxury get-aways as well as resorts and holiday villages—and the prices of these islands may not be as high as you expect, with some of the smaller islands priced at around $30, 000.
- If you have a bit more to invest you can choose an island in a high demand area such as the Bahamas. Many celebs visit this area and also own islands here so this is another attraction for many future investors.
- Good value island purchases are always found off the East Coast of the United States and Canada where urban dwellers will happily buy holiday homes or rent island properties over the weekend or throughout the summer.
When looking at your possibilities for an expat life, an island is an unusual but very possible idea for the expat to consider.