Purchasing your own private island might mean owning a piece of paradise, but it also brings with it a whole set of new responsibilities that must be kept in mind. Aspects of home ownership that many of us take for granted on land can pose serious problems on an island.

One thing to keep in mind is that if you plan to develop your island, you will need to ensure that there is a suitable supply of fresh water. If you plan to reside on your island part-time, you’ll need about 30,000 to 100,000 gallons annually. For full-time living, you will need the equivalent of 40 inches of annual rainfall. The smaller and/or rockier the island is, the less likely it is to have a steady supply of water. Luckily, there are options. If the ground water table is high enough, you may be able to dig a well. If you are close enough to the mainland or another island with a water source, you may be able to access it via PVC piping. Desalination plants can also be purchased for as little as $20,000.

If you’ve decided that you want to purchase your own private island, either as an investment or your personal vacation paradise, you have a lot of decision-making ahead of you. In many ways, purchasing an island is very much like buying a home, but there are plenty of additional factors that need to be taken into consideration before you decide on a purchase.

As with all property, the first step is to figure out what your budget is. It is better to spend as much as you’re able to rather than settling on an island of poorer quality just because it’s more affordable. You will end up with both a better investment and a more attractive purchase.

Location is also important–one of the most important factors in choosing to buy, really. Take the surroundings into account, not just the island itself. The local infrastructure is essential. Make sure that you will have access to an airport and a town or village where you will be able to purchase needed supplies.

The price of luxury California real estate continues to drop — not terribly surprising for anyone who follows the market.  However, looking at property that has a history of celebrity ownership can give us a better glimpse into just how the market is doing.  After all, these high-profile sales catch the attention of more than just real estate aficionados.

One recent listing that caught our eye was the return to market of a home that had previously been owned by actress Denise Richards. This contemporary ranch home is located in the exclusive area of Hidden Hills, CA and has been listed for $3,495,000.  Back in May of 2006, Richards purchased the property for $4,000,000.  While she originally listed it higher in an attempt to make a profit, her final sale was a loss at $3,800,000.  That was October of 2007.  Will this property sell for the current asking price of $3,495,000 or has the market fallen even further than the current owner realizes?  We’ll have to wait and see.

A representative from Sunwise Realty said: “We have recently seen a lot o foreclosures in the luxury housing market. The rich were not so effected initially with the economy and the housing slump, but it seems it has catched on with them as well. The number of luxury home foreclosures have been increasing in the market.”