Hi Australianinvestor! I was wondering how everything went with the island you and your friend was going to purchase? I thought it was an interesting project so I just had to get an update. Regards fanocks2003
Hi Fanocks! I haven't bought it yet. As for structure, it's early days yet, but it's likely just cash. I am splitting it with a partner, which is great because not only do I get his enthusiasm, skills and drive, he's my friend and it's going to be great collaborating and fishing together! The deal itself is looking awesome. I won't name prices, but it's mouth-watering. I've always wanted an island. I know a few from private dealers, but they have not been this attractive. Best of all, while I have staff working for peanuts building this, I can be out riding a jet ski to reef/sandbank fishing spots and barbecuing the ones I catch when I get back to the beach. I might even try spear fishing, since the water is so clear. If I developed 20 villas on it and each one sold for $1m up front, that's heading towards $20m ($10m for me, minus expenses and taxes - so maybe $8m - returning about $2K a day if I put it in T-bonds - not a bad living allowance). Otherwise, operating as a resort, just the rental rates, very conservatively, would value it at $9.8m without stuff like bar takings (very profitable). It makes more sense to sell up-front. I think we'll operate a few boutique private mini-villas to begin with (very small) which will finance the luxury villas, which we might develop and market to rich retirees or something. Even if it never makes a penny, it's an awesome lifestyle change. Just the relaxation and enjoyment of life that we'll have from it would be easily worth it. :-)
