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Farhad Vladi - Private Island Broker
By Islomaniac | June 7, 2007
Often when people think of private islands they think of celebrities, astronomical prices, far off lands and generally out of reach to the general person. As an island owner myself I know all too well that a private island is well within the reach of the average person. I recently came across an excellent interview with Farhad Vladi owner of Vladi Private Islands. In the article Vladi clears up a lot of the misconceptions surrounding private islands and gives a practical analysis of purchasing and developing your private island.
Author Unknown
The Electric News Paper
A picturesque sunrise, framed by the swaying palm trees lining the beachfront
Every day, you can enjoy this view as you sip your breakfast cuppa by the sparkling azure waters lapping on the shore.
A pipe dream it is not. Especially for well-heeled property buyers who seek exclusivity on a private island they can call their own.
Although island-buying is a trend among Hollywood celebrities, these days, you don’t need to trade a pirate’s chest for a piece of your own paradise.
If you can buy a house in Singapore, you could possibly afford an island, so says Mr Farhad Valdi, founder of Valdi Private Islands, an island brokerage firm.
In the last 35 years, the company sold over 2,000 islands around the world. They include those in the Caribbean, the US, Canada, Europe, French Polynesia, Australia, NewZealand, Seychelles, Africa and Japan.
The price tag ranges between US$200,000 ($300,000) and US$800,000 for an island, though there are those that cost over US$5 million.
Some are going below US$100,000.
For US$65,000 ($99,500) - the average price of a two-room HDB flat - you can stake your claim on the 538sqm Corey Cay Island in Panama, listed on Private Islands Online.
It is also no surprise that some of MrValdi’s clients are your average office workers, including clerks.
ATTAINABLE ASSET
So for working professionals, an island is an attainable asset.
For example, Nikoi, a 15-hectare Indonesian island - the size of about 15 football fields - is co-owned by an Australian IT professional Brad Gray, 38.
It was bought at an undisclosed sum. The prices, Mr Valdi noted, are determined by several factors, such as climate, distance from the mainland, political stability, acreage and suitability for development.
Nikoi is located less than 85km from Singapore - and 8km off the east coast of Bintan. It is accessible by a 21/2-hour ferry ride from Tanah Merah Ferry Terminal.
For island owners like Mr Gray, Nikoi is an investment.
The island now has a resort with six beach houses spread over a 5-hectare site on the western part of the island. Another nine is in the pipeline.
It has a website (www.nikoi.com), and Mr Gray and his partners are targeting urbanites who want a break from city-living and an unconventional vacation.
Mr Gray, who has been living in Singapore for eight years, said they started the project three years back and they just opened their doors a month ago.
Nikoi’s selling points are undoubtedly its pristine white beaches and lush greenery.
It is the same natural beauty of an island which mesmerised Malaysian hotelier Francis Yeoh.
In 1993, he staked his claim on Pangkor Laut, a 120-hectare island off the west coast of Malaysia, and turned it into an award-winning six-star sanctuary for the affluent called TheEstates.
The rates vary, but a two-bedroom estate costs US$14,000 a week and a three-bedroom hilltop oasis is priced at US$24,500.
The Estates is accessible by a three-hour drive from Kuala Lumpur, followed by a half-hour boat ride. A helicopter service from Kuala Lumpur to The Estates is also available.
Nikoi, however, is not positioned as a luxurious resort. The rates for a beach house is priced from $300 per night.
At Private Islands Online, island rentals go for as low as US$500 a week.
But owning an island is not just a glamorous dream. Once it’s yours, you have to keep it thriving, and especially if it is meant to give you returns. It could takes years before it is fully functional.
Think no drinking water, no electricity, no transportation and no broadband connection.
To enjoy a piece of paradise, you may also have to buy a private jet and yacht just to get there.
Brokers say buyers should factor other development costs too, such as building a house, ferry terminal and desalination plant, which can add up to a few millions, depending on how lavish the project is.
At Nikoi, the development took about three years.
Mr Gray, who declined to reveal the cost, noted: ‘The challenging aspect was building the infrastructure, which includes the water, power and sewerage systems.
‘We are conscious about conserving the natural environment on the remaining 10 hectares of land.’
In the beginning, island residents had to communicate with radio phones.
These days, a basic pre-fabricated home with electricity and water supply can be installed in just three months.
DO YOUR HOMEWORK
Before you island-shop, do your homework.
Some countries have strict regulations on foreign ownership and development, especially in Asia.
In many cases, the sale can only be executed through a corporation.
Malaysia is an exception, though most of its islands on sale are not freehold, The Business Times reported.
Island brokers can help buyers with the necessary paperwork.
Lastly: It sounds obvious, but before you sign on the dotted line, visit the island first.
Not every one is a fantasy island.
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