My Island Dream - Ambitious or Foolish?

[3darchitect]

Hello Islanders,

My name is Luke, and I would like to present you all with a legitimate question regarding the purchase and development of an island.

First, a little background. I am an architecture student, graduated with my 4 year undergrad degree this past May and will be returning to school next year for my masters. I have a great interest in old style architecture: Gothic, Victorian, etc, and am especially drawn to the medieval style castles and defense structures. Somewhere along the line, I also developed an interest in island property. I've always loved the water and lakefront property, so an island is perfect for me.

The bottom line is that I want to purchase an island (one that is listed on this site) and build my dream home. I'm sure this is said a lot on here, but I also understand that a lot of island owners use their islands for public revenue rather than private property.

Here are the details:

The island I'm looking to purchase is called Basin Island, located in Sturgeon Bay, WI ( http://www.privateislandsonline.com/basinisland.htm ). First off, do you think the island is appropriately priced? (you can PM that response if you don't think its right to post it in a public forum). The real kicker isn't the island so much as the island in combination with building. I would design and build a "house" that would essentially be a combination of a gothic cathedral and medieval castle (for a rough description and size approximation). The thing will be massive (and amazing). I would suspect, a minimum of 3million for the house. Then in addition, there is the purchase of the island itself, and all other costs associated with developing the land, maintenance, taxes, etc.

Now, I realize that to some people in this world, this is a plausible and not-so-far-fetched endeavor. However, I can't help but think I'm biting off more than I can chew. I'm 22 right now (obviously not in the market to buy an island at the current time), I'm going back to school, and will be going into a profession that will not guarantee me 6 figures (ever).

I guess the underlying question in all this is whether or not I'm chasing a child's fantasy, or if there is a legitimate possibility that I might reach the financial means to make this dream a reality. The only thing holding me back is money. I have no lack of interest or ambition, and I'm seriously considering using this project for my master's thesis.

So to all you out there who have an island all to yourself, to those of you who have made millions and lived out your dream: how did you do it
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Lukken Studios
~Purpose, Appeal, Design~

[Maine Islander]

Hi 3darchitect,

Who said all island owners have millions ?

Now is a very good time to buy with the market and interest rates being as they are. People are motivated to SELL!

If you have the ability to save $$, budget and be focused on the goal of owning an island and building a house then you should be able to do what you want.

The reality is that we all live in a society based on the "display of wealth" rather than saving and accumulating wealth.

I am re-reading "the millionaire next door" by Thomas J Stanley, hence the above thoughts, and I would recommend reading it to anyone especially younger people.

I tell people all the time who think I am rich because I own an island that no I am not and that it is all a matter of how we choose to live (very simply / frugally).

We do not go to Mardi Gras,, Disney or on cruises. Snow shoeing took over for down hill skiing lift tickets, and we do not eat out or buy name brand foods as much as the "regular" person.....Is it easy? No. But when it is July and we are on the island it all seems worth it.

Good luck to you.
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If You Are Lucky To Be On An Island, Then You Are Lucky Enough!

[McDonaldIsland]

Main Islander,
I couldn't agree more. I make decent money but am by no means a millionaire. I saved enough money to purchase my island by socking away 10% of my income in my company's employee stock purchase plan for years. While all of our friends have had the multiple generations of the latest flat screen TV's, We still have our big tube television. Summer vacations are built around spending time at the cottage and we go to the dollar movies when at home.

I'm building our cottage myself and picking a couple of projects per year to complete. It would be nice to have crews go out there and finish the cottage in a single summer but I'm not willing to go into debt to finish a luxury like that.

My advice is to be patient, work hard and save.
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McDonald Island Ontario

[pnoah]

I would buy the island and rent it out to help make more money. I think the castle would be really cool

[Sal's Dad]

McDonald and Maine have it right. Your initial dream is - $3Million for the property, 3 for the mansion, and figure a couple Mil more for all the other costs. So you will need $8 Million cash (don't even dream that you will find a lender in this market!). Is this a realistic number for you? If not, maybe take a different approach - see my postings elsewhere on this site for one possibility.

Maybe you can do some hard work, build experience and skills, develop relationships, and learn about the market.

My take on island prices? In my area, for many decades, islands have sold for about 1/10 the prices of comparable properties on the mainland. Specialty brokers without local knowledge and connections seem to list islands at about double what they might appraise at locally.

When I was buying, I identified my target geography, then tracked down and contacted every island owner - maybe a hundred or more. I spoke with most of the local brokers, and visited a dozen or more that were for sale, and even more that were not. I made offers on several, and eventually one accepted, with the price, contingencies, and seller financing that I needed. Then I got to work building, and after 20 years, there is still plenty left to do.
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Sal's Dad
Maine

[northcaptiva]

These guys all have it right. Work hard to make some money... you have plenty of time to figure that out and who knows where life will lead you when you apply yourself, live simply so you can save what you earn, and if you don't quite make it down the road, maybe you build a little smaller castle in the end. If you stay focused on your goal, you'll probably be very happy in the end.

[LSMorgan]

Everyone here is giving you a million dollars worth of lifes lessons for free.
MaineIslanders post- read it, re-read it, print it out and carry it in your wallet.

Take a trip to the ghetto sometime, or your nearest trailer park. You'll notice something odd... Lots of brand new cars. You'll see an inordinate amount of big screen TVs. The women will all be decked out in jewelry from head to toe. That's what they choose to spend their money on. Some of them are people who could probably carve out a decent spot in a decent area but financial illiteracy and conspicuous consumption (that they cannot afford) keeps them glued to the bottom of the barrel. They choose to have a killer car, but live in a home that one could burglarize with a can opener.

I'm 32 own my island property free and clear. I'm not "rich" or some trust fund baby. Furthest thing from it. I'm not a crook or drug dealer. What I am is a guy who still, to this day, drives a 1992 Buick even though the conventions of society insist that I should be driving something more much expensive.

The people who actually take the step and acquire an island property are a special breed. The ones who leapfrog dreams and actually put signatures on dotted lines. You'll find that actually doing it is less about acquiring the resources and more about if you have the right personality type to do something this esoteric...
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Chicago, IL on a daily basis.

My little slice of heaven in the gulfwaters of Florida, whenever time permits.