PDF 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.
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