Forget about crazy rich Asians, as extremely affluent Canadians are flexing their wealth by buying private islands while the world is in the middle of a health and economic crisis.
At the height of the COVID-19 pandemic last year, while people are losing their jobs and businesses are shutting down, many Canadians started focusing on their homes. Just like the rest of the world, these people realized that they'd be staying indoors longer than expected, so they decided to embark on home improvement projects, home office and kitchen renovations, and even expanded their floor plans to make room for outdoor spaces.
While some are busy with their DIY home projects, filthy rich Canadians decided to put their quarantine comfort to the next level by buying an entire private island for themselves.
According to brokers specializing in private island real estate, the year 2020 has become a good year for sales as many buyers were attracted to the idea of owning a property without land borders.
Private Island Sales
Private Islands Inc chief executive Chris Krolow said that they had seen a boost in private island real estate in the past twelve months despite the coronavirus travel restrictions.
"I've sold more islands sight unseen in the past year than I ever have before," Krolow said, as reported by Vermilion Standard.
"The typical client that I'm dealing with is looking for their own personal private island, and they're looking to monetize it when they're not there. Most of these higher-end islands are already set up as boutique resorts," he added.
According to reports, Ontario's cottage-country destination - home to the most beautiful private islands in Canada has experienced an unusually active resale housing market.
Meanwhile, the Lakelands Association of Realtors reported that by the end of 2020, they recorded a 44.9% increase in waterfront property sales. On the other hand, South Georgian Bay recorded a 36.4% residential sales increase between 2019 to 2020.
According to experts, the increasing competition ignited island buyers' curiosity, leading them to make the off-shore leap.
Private Island Maintenance
While many see the island living as "the life," but private island buyers should understand that they are not only paying for the massive land but also the maintenance of the property.
Such upkeeping costs include necessities like drinking water, food, and fuel, which can be too expensive when importing to remote places. And since the island properties will serve as vacation homes, new owners will have to hire local staff to look after the house when they are not around.
They should also employ experienced boaters and cottagers to help with the maintenance and logistics in their private sanctuary.
All of the yearly maintenance costs could reach hundreds and thousands of dollars. That is why real estate experts suggest aspiring private island owners look for properties close to home, including lakes and coastlines in Canada.
But the expenses don't end there are building or renovating a private island property also requires a special technique, permits, and construction process.
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