Hi folks,

I am currently living in the UK and I am planning to fly out to PEI and NB in about six weeks time to buy a holiday home.

I was wondering if any of you guys didnt mind me calling you to pick your brains etc.

Many thanks
Chris

Hi Chris,
Just curious as to why you appear to exclude Nova Scotia as a possible holiday home destination. I think it has a lot of possibilities and perhaps some advantages over PEI and NB.

For that matter what about NL?

Hi Folks,

I have seriously thought about NS and NL but whilst the primary purpose is for a holiday home, I also want it to be a sound investment. I think that PEI offers both of these, although I have still to rule out NB.

As you are all aware, its all to be with supply and demand and as PEI is an island therefore there will always be limited supply in the future and I believe that there will be a better return on my investment in the long run.

Whilst I do have grandioso visions of having some huge 100 + acre estate in rural NB ;-) I have to bear in mind summer rental income and to keep the supply and demand aspect in check.

My other reasons for PEI are the snowfall amounts, one of the snowiest provinces in Canada and PEI just reminds me of England!

I am only 36 but I feel that to invest in Canada now makes perfect sense. With real estate prices as they stand it is almost too good to be true. I truley believe that the UK in twenty or so years time is going to be a very unattractive place to live with its inevitably huge social problems.... its pretty much on the slippery slope now.

I would just love to hear from anyone who has set up home in NB or PEI and to basically hear their story.

Take care and best wishes,
Chris

Hi,

I've been to NS and NB. Im applying under the NB PNP business route now.

The thing I would say about PEI and NB is who is your target market going to be? NS you can fly there direct from the UK - a big plus. NB and PEI its not so easy and therefore far less attractive to Europeans. I had to fly to Toronto and then from there to NB catching a flight the next day as Canadian Affair were 4 hours late on the outbound from Manchester. As far as the US market goes, Canada is not attractive at the moment because of the US$/C$ rate. Tourism is down from the US this year.

Another thing, I've had a holiday home in Scotland. That was only 500 miles away and that was a pain in the a**. If you have someone good looking after it, I doubt the returns will be great after all of the maintenance, cleaning and fees. Its like renting out anything, it is amazing how little care tenants/holidaymakers take with other peoples property.

Also consider that the £/C$ rate is likely to head northwards - all fundamentals point to the C$ being more like 2.25-2.35 to the pound. If it heads in that direction, thats 5-10% you need to make just to have the same investment due to currency flucuations alone.

Im not certain but in NB you might also pay a higher property tax as a non-resident - I had details on a house and it said "higher property tax due to non-resident owner" so I guess that is true for some property.

All things considered I don't think you can beat property as an investment. But it has to be the right investment and it is not all a breeze, especially when you are so far away.

Thats just from my experience...if you asked about renting property out in the UK on ASTs, thats another story. OMG have we had some problems!

Chinnybloke

I have a friend who funds his expensive habit, an aeroplane, by flying people to and from their cottages in NS and PEI (NB hasn't been mentioned). He lives in DC, the customers are either from there or the Boston area. Based on this I'd guess the rust belt states to be the major market.

I can confirm this. In NB, if the property isn't your main residence, you will pay double the property tax.

Also remember, that the summer season is very short - probably around 12 or so weeks to make your money, with a holiday home. Although in PEI the prices are pretty high, so it may be worth it.

Good luck