Canadian Investor Magazine article

NOVA SCOTIA
TOP 100
CCAANN
AA
TO
100P
C AP
E BRE T
Top neighbourhood: BADDECK
Population:
FOR
SALE
97,398
Median price:
$212,500
Average rent
$694 for a
two-bedroom unit
Vacancy rate:
4.5%
Average days on market:
100
Capital growth (12 months):
2.4%
WHY BUY?
● Holiday home opportunity
● Revitalization thanks to the Sydney
Tar Ponds Remediation Project
● Affordability
● Strong capital growth prospects
H
ome to roughly 15% of Nova Scotia’s
population, Cape Breton is popular with holiday
makers and retirees, and it’s starting to gain
attention as a preferred investment location.
There’s plenty to like about this thriving tourism
destination: boasting the Cabot Trail, a spectacular scenic
road circuit around and over the Cape Breton Highlands
that attracts over 400,000 visitors each year alone, the
relaxed island vibe has earnt this spot a ranking as the
number one destination island in North America, and the
number three in the world, by Travel Leisure Magazine.
John Arancibia from Cape Breton Lifestyles
(CapeBretonLifestyles.com) is not surprised. He believes
would-be landlords are tuning into the island as it offers
an investment opportunity coupled with a holiday home.
“Because of the slow-pace lifestyle, Cape Breton is
not your typical ‘hustle and bustle’ city. The real estate
market here is very affordable and the economy is poised
for growth,” he explains. “We have low crime and great
weather all year round – yes, including winter.”
In terms of housing supply and demand, “There is
most certainly not enough supply for quality affordable
rental units and housing,” Arancibia confirms – and
for savvy investors looking for ground floor, affordable
opportunities, now is the time to make a move.
“Some of the more affordable areas, such as Whitney
Pier and North End Sydney, were once not thought of
as great areas to invest. However, they are on the cusp of
turning around due to the near completion of the Sydney
Tar Ponds Remediation Project,” he explains.
“This was an extensive, decade-long cleanup of a toxic
waste area that has been turned around to a beautiful
Industrial Park and green space. Real estate surrounding
this area, is really affordable, and now would be good time
to purchase, before values grow significantly.”
Neighbourhood to watch
Baddeck is a small village situated in the centre of Cape
Breton. It is home to a small, tight community of around
750 people – compared to the nearby larger township of
Sydney, which accommodates close to 32,000 residents
and offers an excellent investment location if you wish to
mix business with pleasure.
A popular tourism destination, Cape Breton Island
attracts hundreds of thousands of holiday-makers every
year, and Baddeck is strategically placed to take advantage
of the tourist influx. “Baddeck is central to many tourists
as they have access to most of the popular places in the
island,” Arancibia explains. “You’re within 90 minutes
of places like the Louisbough Fortress, the entrance and
exit to the popular Cabot Trail, the Cheticamp fishing
community, the Bell Bay, Cabot Links and Highland
Link golf courses, and Sydney Airport.”
Over 60,000 cruise line tourists come through
Baddeck every year and Arancibia describes it as a mini
Niagara on the lake. “It has tons to offer with ski hills,
snow mobiles trails and cross-country skiing,” he adds,
“It’s a great place for families to invest in vacation homes.”
ON
BEST BUYS
Single family units
would be the best
buys, although if you
were looking to build,
two-bedroom units
would be popular with
rents. “We’re starting
to see a demand
[for these types of
properties], due to the
aging population.”
AMENITIES
Cape Breton Island
has solid existing
infrastructure and
amenities, and as the
population grows it
is expanding. “There
is retail and nightly
entertainment,
but there is also
opportunity to kick
back and relax,”
Arancibia says. “Whale
watching, dolphins,
puffin tours, beaches,
lakes, great seafood,
tons of history and
the best fiddlers
in the world – the
culture is amazing
here. On Cape Breton
Island, there really
is something for
everyone.”
Capital growth potential
According to Arancibia, the groundwork has been
laid to place Cape Breton Island in a position to grow
significantly in the coming years. “In particular, the most
recent major project was the dredging of the Sydney
Harbour to aid in major port development,” he says. “This
will allow the island to become a major player in the
shipping industry.”
NOVEMBER 2012
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9/27/2012 1:52:26 PM