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On this page I have posted some emails that have come in from people enquiring about Tonga, living here, and land or business offers.  My responses are directly after.  In both emails I have edited out names, email addresses and particulars which might not be germane or may be personal. 

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Subject: waterfront lots at Lafi Moetala $3.300. 
Hi Robert,
Definitely interested.  Pictures and details, map of the locations would be greatly appreciated. 
I must ask why the prices are so unbelievably low?
Kind regards,
***

***

Never tell a real estate person their prices are too low. 

How to explain the pricing is probably as simple as supply and demand, but Tonga is never just that simple.  Prices are lower on most everything, probably mostly due to the fact that Tonga is not known in the world---yet.  Not a lot of people here and not a lot of people telling others about the place.  But, like any good thing, it will be the talk of the globe one day and just like Tahiti, Fiji and Vanuatu, this place will probably see its share of activity with commensurate pricing.  The government seems content with letting the secret out quietly and some say they have a plan for closing the door when the demand is met.  Only 5% of Tongan land can be held by foreigners, so that number may be coming up soon.  

Believe me, prices were a lot lower before I arrived here 5 years ago.  I reinvented the broker business here and have the first, and maybe the only, real estate broker license that was created for me a few years back.  Accidentally I stumbled into the business while selling a bar I owned here in Vava’u on Ebay.  It was unheard of at the time to sell something like that and even the Internet was virtually unknown.  The Internet speed was 14.4 and I had to take all day to send some pictures to my brother in America to post on the webs.  In short order I managed to get the phone company to come up with a faster speed and a lease line, which led to my opening the first Internet café in Vava’u.  Imagine being the first to have these two businesses in any country, and that was just 5 years ago.  So prices have gone up and are now “high”, relative to what they used to be, like 300% higher, cheap as they are now.  The next lots won’t be on the sea and are supposed to $5,500.  As things get closer to the max out, I am not sure we will even have a warning.  This would result in shut down before a ramp up of prices.  Only in Tonga would this scenario likely happen.   

In the circumstance where no more Tongan land might be offered, that which is foreigner held would escalate dramatically.  Unfortunately, that would leave the Tongan out of the second wave.  To mitigate that situation, the agreements on the lots require that 1.5% of the resale price of every house built on the lots is paid back to the Tongan landholders.  As well, any rental income from the houses built there are shared in some very small portion with the landholders.  This may be seen as a little deterrent to buying a lot, but the plan provides a landholder a future income from his land that is inflation tagged.  These two factors are annoying to some who don’t see the need to share the wealth in this most limited way with these native landholders.  Prior to the influence of foreigners, these people have lived off their land by growing crops and now, thanks to thoughtful concepts, they are earning in a way that benefits both, the “Investor” and the landholder.  The concept even sorts out the kinds of folks interested in living in Tonga.  Anyone who sees this program in a positive light as being a part of their contribution to this country’s populace is deserving and encouraged to live here.  The people of these developments are the most welcome people to Tonga.   

The lots are available for 99 years under an “investment” agreement, which I have outlined the negative aspects above.  There is no freehold here in Tonga.         

Rb

PS  this program only applies to the subdivided lots offer on the web.

**wrote:

So in other words you pay 3300.00 & then 88.00 for life.
I dont think I'm interested in this kind of deal. AK

****, The $88 includes the land tax/fees and associated common area construction, roads, landscaping and maintenance, so most people think it is cheap, "too cheap" or “unbelievably low,” is the quote, so, generally I have to defend how all this can be done for such a low price.  Funny how a thing can be seen cheap by some and expensive by others.  Present value of money and other considerations factor into these things as well. 

For what it is worth, have one lone lot being offered soon for $18,000 USD, no payments.  It has water and power near it too. 

RB  

Below is how a typical email of Q & A might go.  

Is a survey of the land on file? What about aerial photos? YES, SURVEYED AND HAS DEED.  I WILL LOOK FOR AERIAL PHOTOS AND SEND IN NEXT EMAIL  LET ME KNOW IF YOU DON’T GET ANYTHING SINCE ATTACHMENTS GET LOST SOMETIMES.

We are considering a trip to visit the property, although is the "jungle" too dense to walk through?  YES, BUT WE COULD BRING OUT A LOCAL FELLOW TO HACK A TRAIL IN THERE. OR YOU CAN GO DOWN THE ISLAND TO WHERE IT IS EASIER TO ACCESS THE OCEAN SIDE.  I HAVE PHOTOS OF BOTH SIDES, BUT NOT FROM THIS PARTICULAR LAND TO THE OCEAN.  I EXPECT IT IS REPRESENTATIVE SINCE THE COASTLINE IS ABOUT THE SAME EVERYWHERE THERE.  YOU CAN GET TO THE CALM SIDE WHERE THE BEACH IS EASILY.  THAT IS THE WAY YOU WOULD ARRIVE EVEN AFTER A CLEARING WAS MADE.  CLEARING IS CHEAP BECAUSE LABOUR IS CHEAP. 

What type of deposit is required?  THEY SAID THEY WOULD TAKE $10,000 USD TO HOLD IT.