The quest for freedom can take its toll on the unprepared buyer. Expert Farhad Vladi talks to Ban Barkawi about the fine art of buying a private island

Even though reality dictates that the likes of Johnny Depp and Nicholas Cage are among the high-profile owners of private islands, who doesn’t dream of infinite stretches of secluded shore? After all, calling an island ‘home’ is the perfect recipe for relaxation and peace of mind, right? Wrong. What most potential buyers do not know about purchasing an island is that there are far more complexities than just the cost. Other factors call for scrutiny before commitment. Farhad Vladi, Founder and Managing Director of Vladi Private Islands, offers a few words of wisdom to the potential buyer.

Fantasy Island
When an entire piece of land surrounded by water and nothing more becomes your own, Vladi says, it is inevitable to feel a great sense of freedom. However, freedom does not necessarily mean a castaway lifestyle or a frugal existence. Today, islands have become far more habitable than they were in the past, thanks to advances in technology. Some islands have great potential if they have not been developed already, easily equipped with purified water, ready-built homes and electricity. According to Vladi, owners will often work hard on their island, resulting in an emotional attachment that is hard to break early on. While this makes even the smallest islands highly valuable, reality soon bites.
“People often believe that islands are unaffordable and that an island is a true paradise. Both are untrue,” Vladi says. Purchasers may get so caught up with owning a private island that they often forget they will only use it for a few months a year, at a time which fits around their schedule and makes the most of the frequently tempestuous climate.
Other than the time and weather, the challenge of living hand in hand with nature can prove too much for the highflying city dweller. “One must learn to live in harmony with nature, not against it,” Vladi says. “As king or queen of your island, you must be prepared to do without many of the luxuries of civilisation.”

Hot Spots
Before rushing to the exotic islands seen in brochures and television shows, it is imperative to understand the types of islands on the market, not to mention their availability. With growing demand, prices of ‘quality islands’ have skyrocketed. Vladi defines these as habitable, in close proximity to the mainland, and within reach of medical assistance. Some examples include islands off the western coast of Europe, North America, New Zealand and Australia. Others, known as ‘adventure islands’, tend to be more exotic and prone to natural disaster. Whatever piece of land is chosen, the largest stumbling block, according to Vladi, is legislation. In some cases, foreigners do not have the legal right to purchase freehold properties, and this limits their market choice. However for Middle Easterners, properties on the east coast of Africa (like the Seychelles) are still very appealing.

Buying Character
With 35 years of experience and 2000 deals made during his illustrious career, Vladi has great insight into an island buyer’s personality. “Most island owners buy for emotional rather than economic reasons,” he says. “And most individuals buy islands for their personal retreat and vacation.”
With the pressure of city life and office work, isolated islands seem temptingly attractive. However, Vladi warns that not every stressed out individual can pull off living in splendid isolation. While his clients hail from a variety of backgrounds, the common link between them is that they are all “strong individualists” who seek to personalise their islands.
They are able to withstand nature and its unpredictability, to improvise when needed and to appreciate absolute withdrawal from the world around them. Unprepared buyers often find that they are unable to accommodate the demands of nature. For this reason Vladi Private Islands presents interested buyers with a world of information prior to any decision making. After all, those sandy beaches and turquoise seas aren’t what most buyers get, even if it is what they initially want when they step into Vladi’s offices in Hamburg, Germany.

Homeward Bound
Like any other property on the market there are two types of purchasers: the end-user and the investor. However, islands are not necessarily better investments than other properties. “It depends on what you buy. You should know that islands do not create a yield as commercial properties would,” says Vladi.
Vladi points out that those who purchase with the intention of making a return look to inexpensive adventure islands with hopes of earning more on the resale. However, those who rent out their islands should not expect to make any returns, no more than their costs. While this may make adventure islands sound ideal for any investor that is simply not the case. Firstly, the credit crunch has brought down the value of adventure islands, simply because they are remote and somewhat unattainable; forcing owners to bring down prices closer to their actual values. On the other hand, prices for quality islands have not dropped, according to Vladi, because they continue to be in demand.
Only about 120 exist on the market at any given point in time. The reason for this is that owners become attached, making it difficult for them to resell. “Even after spending many years on their islands, many people say they still feel overwhelmed by the beauty and power of nature,” says Vladi. In short, owners are in it for the home, not the money.

Cheque Please
Having surveyed all the options, if a potential buyer sets his heart on the deal, there is still decisions to be made on the method of purchase. “Do not buy an island at all if you have not rented an island in the same area for at least one week with family and friends,” Vladi
advises. “You must make sure that you like those pre-requisites.” If you find that you are an island person, be sure to make the deal with a trustworthy agency that can present you with a fair representation of the market. Prices range from $100,000 to $5 million, with an average price of $300,000. For $1 million, expect everything you need for one household including a boat, solar equipment, house and amenities, Vladi says. Once the decision has been made to live, invest, rent or develop a resort, the next steps can be taken. Select the
appropriate region, make a visit, carry out the purchase with the agency and make plans for its management. At the end of the day, the choice is yours, and as Vladi says, it is a matter of taste.