Dreaming of Tranquility
A California couple turn an undeveloped Belizean caye into their dream island.
By Lisa Gerstner, Copy Editor, Kiplinger's Personal Finance
July 20, 2006
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Doug Ingersoll and his wife, K.T., bought an undeveloped island 12 miles off the coast of Belize last year. The couple paid roughly $250,000 for 20-acre Tranquility Caye.
Owning an island was a dream for the Ingersolls, but their plans go beyond creating a private escape for themselves. Doug and K.T., who also own Caribbean Island Brokers in Loomis, Cal., hope to build a quiet luxury resort on Tranquility Caye within the next six years.
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Doug, 42, shares the challenges and rewards of buying an island abroad.
Kiplinger: How did you first become interested in buying an island?
Ingersoll: It was an all-encompassing dream, and over a period of years, that fantasy became a goal. Then that goal became a reality. You're almost embarrassed to mention it to people because buying an island is so "out there." But as we learned about what's available, we realized it isn't much different from buying a vacation home in Tahoe. It's just a matter of perception and geography. It does take a different kind of person, I think, to do it. People attracted to islands are fascinated by the sheer challenge of starting something from scratch and maintaining their own space.
Why did you choose a Belizean island? Affordability was the biggest reason. Compared with islands in other parts of the Caribbean, it's less expensive to travel there. It's also easy to get to, and Belize is an English-speaking country. The ownership there feels more stable, and I think it's a safe place to buy. In other countries, you have to go through gyrations of corporations or leases to take possession of a piece of property, but you can just buy it in Belize.
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Did you see Tranquility Caye before you bought it? We had only seen pictures. That was probably the most uncomfortable part of buying an island-sending money to a real estate office in a different country for an island we only hoped existed. It was a huge leap of faith. Our contract allowed about 21 days for us to back out. We quickly scheduled a trip to inspect the island, and for our own peace of mind, we visited about ten other islands to make sure we were doing the right thing. It definitely created some doubt. We came very close to backing out. But ultimately, we thought this was the best one for the dollar. When we renegotiated the price from $300,000 to $250,000, we could justify the added expense of building on our island.
How did you renegotiate the price? We made the point that building on the island would be expensive because the bedrock is so deep, and putting down proper footings for a structure would cost more. The $50,000 was an arbitrary figure. The seller knew it would be expensive to build on the island, and we had other viable options for purchase. We exploited a weakness and saved a little money.
When did you know that this was the right island for you? The moment the seller agreed to reduce the price. Dollar for dollar, this was the best island we could buy. There was a giant hole in the market between the $250,000 we paid and our million-dollar limit. We wanted to pay cash, and we didn't want to take risks. It isn't necessarily our dream island, but we can easily make it our dream island.
And what is your "dream island"? We're trying to build a resort with ten cabanas on the water's edge. It would be a relaxed, honeymoon-style place, where people could go scuba diving, fishing, and maybe get a massage. We're just trying to push a little bit further and make something unique.