How to Buy an Island Without Getting Marooned

You already know that real estate is a good investment. It's tangible, stable, and--as is often said--they aren't making any more of it.

It's that finite supply that makes island properties an even more incredible investment opportunity. It's also a large part of what adds to their allure. With such a limited number of island properties for sale, the demand for these exclusive listings is high.

But before you go all Robinson Crusoe and start making offers, you should know that island property comes with its own very unique set of challenges. That's especially true for islands for sale in the tropics, but many of these same issues apply to domestic islands as well.

So, whether you're looking to invest in island property or maybe even buy your own private isle to live a life of solitude, these tips will help ensure that you won't end up stranded.

#1. Be realistic.

Maybe you think you're sure that island living is right for you. Or perhaps you've devised the perfect plan for profiting from an island development. Know this. Neither investing in nor living on an island are ideal for the faint of heart.

If you're considered island life, ask yourself some questions. How comfortable am I with being cut off from civilization? What if I need something urgently, like medical care? Do I really want to pump my own water?

Investors should do the same. Consider the following. What will I have to do to better this land in order to turn a profit? Add infrastructure, buildings, utilities, etc.? How much will all that cost me? Too many people buy island property only to turn right around and sell it once they realize they were disillusioned about what it would demand.

#2. Consider the implications of accessibility.

Island property is, by definition, surrounded by water. If that's something you've never dealt with before, you might accidentally overlook some of the challenges it presents. Not only the distance factor, but also the physical hurdle of getting people and things out of the water and onto dry land.

This is especially important if you plan to build. It's one thing to think about getting your furniture and groceries onto an island. Now imagine getting a backhoe or a load of lumber to shore. It can be done, but just know that the time and costs associated with island construction can often be astronomically more than on the mainland.

#3. Understand the local land possession laws.

Due to the unique nature of island property, there could be a number of laws affecting its ownership. For example, in some countries, islands are mostly obtained only as Rights of Possession (ROP) property. Meaning they're actually owned by the government.

It's yours to use as you wish. You just don't hold the title and, as a result, don't pay taxes on it. It sounds scary, but it shouldn't. It's a common practice and often the only way to get your hands on some really incredible real estate.

Another concern is that many countries also recognize adverse possession, in which trespassers can acquire ownership of property simply by occupying it (read: squatting). The presence of squatters can often become an issue when dealing with otherwise vacant land.

#4. Do your due diligence.

Because of the issues mentioned above, it's probably never more important to diligently research a property's title than when it comes to island properties. Land disputes can and do arise, and--I cannot stress this enough--if there are questions surrounding a property's ownership, you want to uncover and address those BEFORE you purchase the land.

#5. Work with a trusted team.

Buying island property can be tricky, and--while the risks it presents are entirely manageable--some may fall just slightly outside your pay grade. For that reason, I highly recommend that you hire a team of trusted professionals to guide you through the process.

A local realtor can aid you with viewing properties, comparing listings, and making offers. A qualified attorney can help with researching the title and navigating the legal process of purchasing the property. Get recommendations and interview these professionals before you hire anyone.

With the right help and a realistic approach, buying an island can be an attractive proposition. But beware. Failure to follow these tips can leave you feeling like a castaway.