Island: a risky dream

30.05.2011 00:03
Articles about real estate | Island: a risky dream Buy a dream as an island with palm trees, houses, white sandy beaches and turquoise lagoon, you can own for a very modest sum. However, construction, transport and content of purchase makes you think even the most affluent customers. What risks lurk now buyers of the islands?

Buy an island can be cheaper than a garage in Moscow - the price of the cheapest of them, though located in the northern seas, starts from 20 thousand dollars. Of course, there are more expensive options - the islands in the regions with a calm political environment and a favorable climate for life really worth millions of dollars. According to the company EVANS, annually exposed for sale 250-300 islands in different seas, the cost comes to $ 50 million. However, buy an island and maintain it - two different price list, often the cost of maintaining their own paradise on the order may exceed its value and become very expensive, even for very wealthy person.

Related article: The Americans, who guessed how to sell a lot of housing

"Gold" island

It should be noted that Russian real estate brokers selling the islands practically engaged, our fellow countrymen do not often turn to professionals with a request to pick up the island. "This is not the object that is being sold quickly. Purchase and sale can last 5 or even 10 years. A specialist in real estate is much more profitable to engage in "fast" transactions: the Russian realtor is better to sell 20 apartments in one year and is guaranteed to receive their commissions, which will be to deal 5 years, which eventually can result in anything ", - explained the CEO of investment and construction Company «KRAVITZ INVEST» Valery Kravitz.

Such cases are not rare: very often realtor wasted time out to learn all the nuances of local law, flew to object to negotiate with the owner, but eventually a deal to be unmet. Reasons for refusal from the purchase of several islands. First, the fears of buyers: many are actually frightened by the prospect of long waiting of permits (in some countries, planning permission will have to wait 2-3 years), as well as bureaucratic delays involved in processing the islands in the property. In addition, local construction companies often refuse to provide information about architects who could lead the development project of the island, as well as the nuances of local building regulations.

The biggest risk - legal, that's why experts recommend not to save on additional inspections. "Always with the help of local lawyers to get acquainted with the legal framework of the particular country, before taking any action and even more so to sign documents", - said the head of the department of foreign real estate companies EVANS Alexander Yurchenko.

Water Island - a separate article. For example, once a buyer bought an island with no fresh water, although the former owner of the geological survey showed the conclusion that it is. After this it was necessary to buy expensive desalination plants, and that fresh water was for him to end "gold". Therefore, often, is to conduct additional testing of geological reports or ask the seller about the possibility to carry out drilling operations on the island.

Significant problems to the owner may bring the natural conditions associated with the geographic location of the island (storms, tsunamis, earthquakes). However, if we consider these points before making a purchasing decision, then on natural hazards can be forgotten. Nevertheless, it is worth remembering that the island is very expensive to the property. You need to be alert to the possibility that the cost of equipping infarstruktury island, staff, transportation costs - for example, buying a boat or plane, can several times exceed the cost of the island. In addition, the cost estimate should be included, and logistics - the delivery of construction materials, provisions and working on the island.

Therefore, initial estimates of cost to the island can be very low. Moreover, the cost of maintaining the island will grow with the advent of each new facility and expansion of infrastructure. Therefore more profitable to buy an island with an existing infrastruktroy or permitted project. According to Yurchenko, construction costs tend to be higher by 30-35%, than for construction on the mainland.

In general, experts recommend that before buying the island's future owner to rent for several months to finally decide for yourself whether it suits the island for a comfortable living or running a successful business.

In every sea its pitfalls

Greece. According to the CEO of Penny Lane Realty Dzagurova George, now in Russia is actively negotiating the Greek businessmen, offering the island for investment. In this country sale is not restricted by law, foreign individuals and legal entities have the same rights as Greek. "Scare off potential investors may be a restriction on construction of the island. For example, from 4000 m You can build up with only 200 square meters, as well as mandatory to obtain permission from the Archaeological Service, "- says Kravitz. Archaeologists must conduct excavations on the island gained, and if you find any value, then the owner must either move the building to another area of ??the island, or do not build up at all.

In accordance with the laws of the Republic of Maldives, an island can not be bought, it can only be rented for up to 25 years and only under the economic activity (this could be a tourist activity, poultry, zhivodnovodstvo, cultivation of vegetables or fruits). Moreover, a foreign citizen to take an island in the lease can not: specificity of Maldivian law provides for the transfer of the island to rent a citizen of the Republic of Maldives. Foreigners wishing to rent an island in the Maldives, are forced to resort to the local population: All documentation for the transaction and all sorts of permissions on the economic activities are made on a citizen of the Republic of Maldives.

In Bermuda, there are also restrictions for foreigners. For example, you can not use purchased the island for commercial purposes, just as a private possession. Furthermore, in accordance with local laws, a citizen of another country can not buy an island more than 810 hectares and with real estate worth less than $ 1 million.

In the Seychelles Island and can not be bought, only rented. However, the advantage of Seychelles for investors is that tenants are no tax restrictions, so can the tourism business without paying the local treasury income taxes.

Also prohibits the purchase island property in UK law (the state has a regularly updated list of the islands, which are allowed to purchase private property), Fiji (where the priority right to rent a local population), Panama, Guatemala, Costa Rica, China, the Marshall Islands, Tonga .

In the Caribbean, the owner will be able to get the property only island with a rocky shore, as islands with sandy beaches used by the state in order to travel. Obtain a license for ownership of the island in the Caribbean is quite simple - within three months after the interview with the Ministry of Foreign Affairs of the owner obtains an island in the property. Lack of Caribbean islands is the weather conditions: in August and October accounts for the main rainy season, the temperature reaches 45 degrees. Almost all the Caribbean islands suffer from earthquakes and hurricanes. Climate on the island is hot and moist, because of what the wood and metal very quickly lose their strength. So that substantial costs for frequent repairs of buildings and structures.

In Costa Rica, Fiji, Panama, Guatemala, the Marshall Islands, Thailand, Bali and other Southeast Asian island of ownership of land - leasehold, that is, rent for a period of 30 to 90 years.

In Europe, the islands are sold in full private ownership (freehold). In French Polynesia, and Belize are also no significant restrictions on the purchase. Beloved by many of Cuba did not sell land to private ownership, and Croatia will need to register a legal entity for the purchase.

Natalia Bessonova, Corresponding GdeEtotDom.RU

Content tags: Overseas property
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