Is A Canadain Home an Investement for a US citizen? The answer is yes, but read these words courtesy of Inman News (more…)

Alan Steel writes about Nova Scotia. His article is pretty much accurate. Interesting angle and certainly paint a great picture of our province.

“The language is English. The land mass is slightly smaller than Ireland. Although it’s not an island there’s 4,600 miles of stunning coastline. There are 85 golf courses, and Bill Clinton flies in to play a round. Within an hours drive of where I’m staying there are 40 golf courses. Amazingly, the area is on the same latitude as Bordeaux and Northern Italy.” and “So, if you’d like to invest in a second home in one of the safest places in the world, where property prices are cheap on an international scale, and where Baby Boomers from the US, Canada, and Europe are increasingly likely to drive up property prices for the next 20 years, have a look at Lunenburg County, Nova Scotia. “
Nova had it so good

By Alan Steel

I wonder what the rich people are doing today?

It’s eleven o’clock in the morning. It’s sunny and warm enough to sit on the huge shaded deck in T-shirt and shorts. There’s a nice breeze drifting up from the sea two hundred yards away. Too early, unfortunately, to enjoy a chilled local wine at a mere three pounds a bottle [$8.82CAD - $7.58USD - €6.21EUR]

You probably know I think houses are overpriced in the UK and elsewhere as everybody wants to invest in property instead of stockmarkets. The herd is still buying up homes in the Med. Florida is also a favourite despite the likely worsening weather patterns. And in Malibu California the property market is so overheated it costs over one million pounds for an ocean front mobile home! [$2 millionCAD - $1.8millionUSD - €1.4millionEUR]

But hey – I’ve stumbled on a secret haven where property prices are cheap by any standards. And I reckon they’ll increase substantially for the next 20 years as record numbers of post-war Baby Boomers look for holiday or retirement homes by the sea.

So where is this? Let’s see if you can guess. Summer temperatures regularly hit the low 80’s. The climate is dry. Winter brings snow. Petrol is only 45p a litre. [$1.30CAD - $1.11USD - €.91EUR] The legal system is based on UK law. Buying property is open to non-residents. And, like Scotland once contracts are exchanged, the deal is done.

The language is English. The land mass is slightly smaller than Ireland. Although it’s not an island there’s 4,600 miles of stunning coastline. There are 85 golf courses, and Bill Clinton flies in to play a round. Within an hours drive of where I’m staying there are 40 golf courses. Amazingly, the area is on the same latitude as Bordeaux and Northern Italy.

The cost of living is well below that of the UK, with world-class steaks, fish suppers, and the best Italian sausages you can eat. There are only one million residents in this vast area. Half of them live in the capital, which boasts one of the finest natural harbours in the world. And they enjoy Highland Games and Celtic music festivals.
It’s a five-hour cheap flight from Glasgow and an hour and half from New York. Liverpool on the Mersey is only an hour’s drive away.

If you’re tempted to buy a home here you’re in good company. Famous part-time residents attracted by the craggy coastline and quaint fishing villages include Paul Simon, Jack Nicholson, Billy Joel and Roger Moore. Got it yet? Let me give you one more clue – it’s the second sunniest state or province in North America. It’s Nova Scotia, Canada, with its strong Scottish ties.

So what will a second home set you back? There’s a huge range from as little as £25,000 [$11,930CAD - $10,260USD - €8,400EUR]for a three-bed house on several acres to huge ocean front estates at £1,000,000 plus. [$2 millionCAD - $1.8millionUSD - €1.4millionEUR]

I’m based in Lunenburg County, south west of Halifax. Within around one hour’s drive of the airport, there are lots of homes, mainly oceanfront, at ridiculous prices. How about a big four-bedroom colonial style property overlooking Lunenburg’s bay for £95,000? [$45,360CAD - $39,000USD - €31,940EUR]

The jewel in the crown is the village of Chester, already known as the retirement capital of Canada thanks to its stunning waterfront, yacht club, theatre and golf course. Prices are higher here, but building restrictions mean that demand should continue to outstrip supply. But you can still find good deals. For example, you can snap up two side-by-side homes overlooking the sea with six bedrooms and room for a tennis court for £300,000. [$626,200CAD - $540,200USD - €440,000EUR]

Buying costs are very reasonable. There’s a 1% purchase tax [ed - in some areas], and all the other costs, typically are below £1,000, even for a home costing about £250,000. Non-residents selling property would pay UK capital gains tax thanks to a double tax agreement. Steve Lumb a Chester based estate agent confirms it is possible to obtain mortgages from a Canadian bank although it will make absolutely certain that you can afford the repayments. Canadian variable interest mortgages are at a 3.8% interest rate. Five year fixed rates are below 5%. You may of course prefer to borrow from a UK lender.

So, if you’d like to invest in a second home in one of the safest places in the world, where property prices are cheap on an international scale, and where Baby Boomers from the US, Canada, and Europe are increasingly likely to drive up property prices for the next 20 years, have a look at Lunenburg County, Nova Scotia.

Courtesy of the Daily Record, 19 July 2005.

© 2004 Alan Steel Asset Management. all rights reserved.

About the author:

Alan Steel - Chairman
Alan was an actuarial student in 1969 with Scottish Widows so he understands the industry algebra. He became an IFA in 1973 - formed Alan Steel Asset Management in 1975. He has survived 3 stock market crashes.

The volume of actual high-end sales receded during 2003, however, in most cases the asking prices did not fall off…. Through the latter part of 2003 and 2004, price adjustments were being made on many properties to attempt to lessen the apparent gap between asking and selling prices.

…The nature of our middle and high-end market is that an asking price is usually (but not always) set and not usually lowered through its marketing span.

Tradewinds Realty Incorporated
Market Condition Update September 2005

Background 2001 - 2004

The high-end ($1,000,000+) real estate market softened in 2003. After the banner years of 2001 and 2002, the market started to fall off towards the end of 2002. While it was not widely recognized at that time, a review of our sales patterns confirms this downward trend. Through 2003 and 2004, we have what I refer to as a plateaued market, where prices are settled-in until the next upward trend. Unfortunately, the events of 9/11 triggered the last upward trend in real estate values in the province. As the Americans started to purchase our homes in greater numbers, this scarred the local and Upper-Canadian clients into taking action. They were concerned that many of the better properties would be purchased or the market prices would trend up beyond their ability to purchase.

The volume of actual high-end sales receded during 2003, however, in most cases the asking prices did not fall off. This has lead to a large gap in prices being offered against asking prices. Through the latter part of 2003 and 2004, price adjustments were being made on many properties to attempt to lessen the apparent gap between asking and selling prices. While not very successful, it did allow us to sell a few higher-prices homes in 2003 and with greater success in 2004. Our gross sales for 2004 were fifty-five million ($55,000,000) in real estate sales.

First 9 months 2005
The luxury real estate market in the 2005 season has been fairly good. Early in 2005 we successfully brokered a near 3 million dollar sale in the village of Chester, later in the year we were the selling agents for a 2 million dollar sale in Martins River. Most recently we negotiated an offer for over a million dollar home in Annapolis Royal. The important thing to realize with these sales of these homes, is that they have been on the market for 1 to 2 years and have now sold in the latter part of 2005. At present the market condition scale shows a sellers market on oceanfront land and a buyers market for existing housing.

The middle market for $500,000 to $1,000,000 has also been good. Well priced homes are selling in the market and sellers seem to be content with the selling prices.

The nature of our middle and high-end market is that an asking price is usually (but not always) set and not usually lowered through its marketing span. This is due to the non-transient nature of our sellers, as the motivation in selling is tied to the perceived value of the property. There is little necessity to discount the value in order to move it faster on the market. Most of our clients fall in one of two categories, estate sale of family property or an up-sizing/down-sizing of existing property.

It is still extremely important to determine the correct asking pricing for the property. Pricing is especially important in a buyers market and/or plateaued market like the one we are presently experiencing. Real estate can be considered a commodity and as such, pricing is very important to the market place.

tim harris

I am pleased to announce that Tradewinds Realty has been recognized by the Bentley Motor Car Company in an international competition for 2005.

The BENTLEY INTERNATIONAL PROPERTY AWARDS are now entering their 11th year; the International Property Awards have been called the Oscars of the property industry.

…Award categories encompass estate agents, property developers, house builders, resorts, interior designers and many other areas of the residential property trade.

…A four or a five star award has been achieved and therefore the Bentley International Property Award for THE BEST CANADIAN ESTATE AGENT will be announced for your company in London on 4th November 2005.

…The above was submitted in late June 2005 and the result was our recognition for the award…. Our administration who work so diligently to produce wonderful cuts and web pages and to our salespeople who work diligently to satisfy our clients, both buying and selling.

August 19, 2005
I am pleased to announce that Tradewinds Realty has been recognized by the Bentley Motor Car Company, the sponsors of the international competition for 2005.

This is the first year a Canadian Real Estate Broker has been recognized for the award as the BEST CANADIAN ESTATE AGENT 2005

?
BEST CANADIAN
ESTATE AGENT 2005
The BENTLEY INTERNATIONAL PROPERTY AWARDS are now entering their 11th year; the International Property Awards have been called the Oscars of the property industry. The aim is to distinguish the highest levels of achievement in a range of property-related fields.

These awards are truly global, with entrants allowed from any country. Award categories encompass estate agents, property developers, house builders, resorts, interior designers and many other areas of the residential property trade.

Please read notice below.
………………………………………………………..

Essex UK August 17, 2005

BENTLEY INTERNATIONAL PROPERTY AWARDS 2005

I am delighted to inform you that TRADEWINDS REALTY INC. entry into the above competition has been successful. A four or a five star award has been achieved and therefore the Bentley International Property Award for THE BEST CANADIAN ESTATE AGENT will be announced for your company in London on 4th November 2005.

…………………………………………………………

BENTLEY INTERNATIONAL PROPERTY AWARDS
http://www.propertyawards.net/int/index.html
…………………………………………………………
Other Info: The criteria for selection were divided into 5 parts.

Corporate Office: Detail your operation, associations, expertise and experiences.
Services: Detail services provided, types of property handled and clients serviced.
Testimonials: Supply client testimonials relating to your business.
Marketing: Supply a wide range of materials related to all aspects of your marketing.
Miscellaneous: Describe any innovations you consider to be unique to your company.

The above was submitted in late June 2005 and the result was our recognition for the award. Congratulations must go out to everyone for this award. Our administration who work so diligently to produce wonderful cuts and web pages and to our salespeople who work diligently to satisfy our clients, both buying and selling.

Thank you all.

BEST CANADIAN
ESTATE AGENT 2005