Tag: Nova Scotia Cottages

Categories
Cottage Life

This insurance company is one of the only ones that offers storm surge coverage

Photo Courtesy of Kulla Bennett

By the time Hurricane Fiona struck the coast of Atlantic Canada, wind speeds were well above 100 km/h and the rain was pouring so hard you couldn’t see through it. As the storm moved north along the coast, touching down in PEI, Nova Scotia, Newfoundland, and sections of Eastern Quebec and New Brunswick, houses were flattened, trees were uprooted and toppled across roadways, ocean waves devoured the coastline, and lives were lost.

At an estimated $660 million in insured damage, Hurricane Fiona is the most expensive weather event to ever hit the east coast, and the tenth most expensive in Canadian history, according to the Insurance Bureau of Canada.

But a handful of cottagers in PEI and Nova Scotia aren’t included in this insured damage data. That’s because most Canadian insurance companies don’t cover damages caused by storm surge—when the ocean rises above its predicted level.

With the climate changing so quickly, the risk modeling needed to develop prices for coastal flood coverage is highly complex. Without accurate risk modeling, the risk is deemed too high to make the coverage affordable and available, the Insurance Bureau of Canada says.

This means that many of the Atlantic Canada cottagers whose properties were swept away by ocean waves will have to pay out of pocket to rebuild.

A Guelph-based insurance company is trying to change this. In 2015, after watching floods ravage properties in both Calgary and Toronto, Co-operators Insurance introduced its Comprehensive Water coverage.

“We saw that there was an unmet need, and we felt compelled to offer a flood coverage that was more comprehensive and available to all Canadians, regardless of their risk,” says Michelle Laidlaw, Co-operator’s assistant vice president of national product portfolio. “What we’ve seen is that incidents of extreme weather, like flooding, in our country have become more sudden, more frequent, and more severe. This is a cost to Canadians, and we expect this trend to continue as we face a climate crisis.”

Co-operators launched its Comprehensive Water coverage in Alberta in May 2015. It’s since introduced the coverage across the country, making it available to Atlantic Canada in 2018.

The company’s Comprehensive Water coverage protects against storm surge, waves and spray caused by a hurricane or storm, flooding from a natural or man-made body of water, such as a pond or river, flooding from heavy rainfall or snowmelt, sewage, and septic backups, and a rising water table.

It’s not an easy insurance product to provide, Laidlaw admits. With the climate crisis accelerating, the way the company calculates risk and premiums is always changing. “It’s a risk-based pricing model,” she says. “What that means is that some clients who are in higher-risk areas will have a higher cost. So, premiums are based on the client’s specific needs and the risks associated with their property.”

When calculating premiums, the company looks at a complex list of factors, including a property’s proximity to water, its flooding history, its elevation, soil type, and whether it has a loss prevention device, such as a sump pump. Premiums are specific to a customer, meaning someone in a high-risk zone could pay thousands of dollars a year, while someone in a low-risk zone could pay hundreds.

The insurance covers all types of properties, including cottages, regardless of whether the inhabitant owns or rents. According to Laidlaw, 60 per cent of Co-operators’ Atlantic Canada clients have purchased Comprehensive Water insurance. The company is the third largest insurer in Atlantic Canada, accounting for 11 per cent of the market share.

Co-operators’ claims team is on the ground in Atlantic Canada, working to provide support to its clients by processing claims as quickly as possible, including damage caused by storm surge.

“We continue to educate and promote this product in Atlantic Canada and across the nation. We are encouraging our clients to take this product and to be aware of their flood risks,” Laidlaw says. “We know it’s significantly changing the landscape of where Canadians choose to live.”

Categories
Cottage Life

Nova Scotia premier scraps province’s non-resident property tax

Photo by Shutterstock/Geoff Pinkney

On May 5, Nova Scotia Premier Tim Houston backtracked on a property tax that the provincial government implemented on April 1, targeting out-of-province residential property owners.

“My intentions all along were to improve home affordability, not to be at odds with our core value of being a welcoming province,” Houston said in a press release.

As of October 2021, Halifax was tied for the lowest vacancy rate in Canada at one per cent, according to the Canada Mortgage and Housing Corporation. The aim of the property tax, which the provincial government introduced alongside a non-resident deed transfer tax, was to convince non-resident property owners to sell or rent their properties to Nova Scotians, freeing up affordable housing.

The Property Tax required non-resident owners to pay an annual two dollars per $100 of the property’s assessed value, as determined by the Property Valuation Services Corporation. The deed transfer tax, which is still in effect, requires any non-resident purchasing a residential property, including vacant land classified as residential, to pay a five per cent tax on the property’s purchase price or assessed value (whichever’s greater). The only exemption is if the non-resident decides to move to the property permanently within six months of purchasing.

Initially, the provincial government scaled back the non-resident property tax in an effort to ease strains on non-resident small cottage owners. In a May 3 press release, the government stated that the first $150,000 of an assessment wouldn’t be taxed. But Premier Houston scraped the tax altogether on May 5, saying that he would find a different solution to making housing more affordable in Nova Scotia.

The announcement has come as a relief to non-resident cottage owners. “I think this fall’s CFA tax—I call it the CFA tax, Come-From-Away tax—was just bad policy,” says Glynn Williams, a capital investor who lives in Toronto and owns a cottage in Guysborough, N.S.

Williams bought his cottage in Guysborough 33 years ago after he and his wife took a bike trip along the province’s east coast. “I said, ‘Holy cow, this place is amazing.’ On the left are these wonderful forests and on the right is the ocean.” Williams fell in love with the province, promoting it to friends and later serving on Nova Scotia’s tourism board.

Williams felt a particular affinity for Guysborough, one of the earliest continuous settlements in Canada. In pictures from the early 1900s, you can see that Guysborough was a bustling town with a major harbour, Williams says. But by the 1990s, it had fallen into disrepair. To help restore the town, Williams started buying up struggling businesses, refurbishing them as a way to draw in tourists and provide jobs to locals.

Within Guysborough, Williams now owns a historic inn, a cafe, a bakery, a craft brewery, a distillery, and a vineyard. He also purchased Acadian Maple in 2019, near Peggy’s Cove, the largest maple syrup manufacturer in the province. His investments have helped revitalize the area. But when the Nova Scotian government implemented the non-resident property tax, Williams says he cancelled all of his capital spending and investments in the community.

“The CFA tax was really disconnecting, and it caused me to think twice about what I was doing all of this for,” he says. “My property taxes would have quadrupled on my personal property, which was ridiculous. It would have exceeded the taxes I pay in Forest Hill,” Williams’ primary residence in Toronto.

Williams says he does think scrapping the property tax is a step in the right direction, but he still has concerns about the non-resident deed transfer tax. “I think the five per cent deed transfer tax will cause some potential newcomers to the province to have second thoughts,” he says.

Specifically, non-resident investors like himself, the people who pour money into their communities, stimulate the economy and provide jobs to locals giving them the means to afford a home.

“When Canadians are treated differently from one another,” Williams says, “there are unintended consequences.”

Categories
Cottage Life

East Coast expected to see biggest cottage price hike in Canada in 2022

Photo by Shutterstock/Dolores M. Harvey

Atlantic Canada’s cottage market is expected to remain hot in 2022. Tied with Quebec’s 15 per cent increase, the East Coast is predicted to have the highest recreational property price gain in Canada this year. That includes waterfront cottages, chalets, cabins, and even recreational land used for camper trailers. According to Royal LePage’s Recreational Property report, the average price in Atlantic Canada will rise from $237,000 to $272,550 in 2022.

Following the rest of the country’s cottage markets, the price of an East Coast cottage has been on the rise since the start of the pandemic. Closed borders compelled Canadians to look for domestic retreats, and since many cottage owners have held onto their properties throughout COVID, it has kept inventory low, driving up prices with multiple offers.

Nova Scotia’s market, in particular, has piqued the interest of buyers. Thanks to the province’s affordable prices, Nova Scotia has become a compelling location for Ontario and Quebec prospective owners who have been priced out of their local markets.

“It’s about 50/50,” says Corey Huskilson, a real estate agent in South Shore, N.S. “Maybe even more Nova Scotians, actually. But with regular residential homes, we’re seeing a lot more out-of-province buyers.”

Further out on the Atlantic coast, Newfoundland’s waterfront cottage market has also experienced a jump. Combined with Nova Scotia’s market, the two provinces saw a 39.3 per cent increase in the price of a waterfront cottage between 2020 and 2021, rising from $239,000 to $333,000.

Year-over-year increase of recreational property price in Nova Scotia in 2021

Nova Scotia’s waterfront properties were in demand in 2021. The Annapolis Valley, which is located between two mountain ranges on the western side of the province, near the Bay of Fundy, led the way with a 70 per cent increase. The average price of a cottage rose from $210,000 to $357,000.

Cape Breton, on Nova Scotia’s eastern coast, followed with a 31.6 per cent increase from $266,000 to $333,000. Finally, the South Shore, near Halifax, saw a 16.8 per cent price increase, jumping from $315,000 to $368,000.

Who are the buyers?

As Huskilson said, Nova Scotia’s cottage market has seen interest from both Ontario and Quebec, but that segment will likely taper off in 2022 due to the government introducing a new property tax and a deed transfer tax aimed at out-of-province buyers.

“People who have not just purchased but inherited properties are now going to be paying more than double their yearly expenses for taxes. It’s a big hit. You can’t just sit on it like you normally would. It’s a full-on liability for people,” Huskilson says.

Aside from out-of-province buyers, there’s a lot of interest from young Nova Scotian families, Huskilson says. This segment could continue to grow as remote work becomes more established and out-of-province buyers are dissuaded by the new taxes.

What’s selling and what isn’t?

Waterfront properties are a key commodity right now, both oceanfront and lakefront. Oceanfront properties are more popular as four-season homes or cottages, while lakefront properties are in demand among those looking to take advantage of recreational boating.

“They’re all moving,” Huskilson says. “Everything from three-season, non-insulated, small little camps to high-end cottages.”

Future predictions for Nova Scotia real estate

Even with the new taxes and the reopening of international borders, Huskilson expects 2022 to be a strong year for cottages.

“I think it will hit pretty similar till at least the fall,” he says. “I don’t see a whole lot of change. I see a lot more [cottages] coming on the market, but more buyers are coming out of the woodwork. So, I don’t think it’s going to switch to a buyers’ market by any means.”

Year-over-year increase of recreational property price in Newfoundland in 2021

According to the Royal LePage report, most of Newfoundland’s cottage market is around the island in the province’s Central Region. Between 2020 and 2021, the area’s waterfront cottages saw a 22.1 per cent price increase, raising the average cost from $131,000 to $160,000.

Who are the buyers?

Unlike Nova Scotia, Newfoundland hasn’t had the same attention from out-of-province buyers. Instead, cottages are being snapped up by locals in their 30s or older with secure incomes, says Glenn Larkin, a realtor in Newfoundland’s Avalon Peninsula. Since some sections of the island lack cell service, remote work hasn’t factored into driving sales, but the inability to travel has played a major role.

“People who have a good bit of equity in their house, now they’re saying, ‘Listen, we can’t travel to Florida, let’s let’s buy a summer cottage,’” Larkin says. During the pandemic, he even encountered some buyers who’d sold their Florida properties in favour of a local cottage.

Larkin isn’t convinced that the reopening of international borders in recent months has swayed too many Newfoundland buyers back to sunnier waters as the cottage market remains strong.

What’s selling and what isn’t

It’s not oceanfront that’s attracting cottagers in Newfoundland, it’s pond frontage. Rather than the large chains of lakes found in central Canada, the province features small ponds. Anything within a two-hour drive from St. John’s on a pond is popular, Larkin says.

“Those have sold very well, and have multiple offers, and are not on the market very long.”

Future predictions for Newfoundland real estate

Same as the rest of Canada, Newfoundland is experiencing a lack of inventory, especially in cottages, Larkin says. Compared to 2021, he feels there’s even less inventory on the market, but sales volume remains just as high.

Despite these trends, Larkin says he believes 2022 is going to be a changing of the seasons in terms of Newfoundland’s cottage real estate.

“Interest rates are getting hit. Gas is high. So, the problem you’re gonna run into is: I’m not going to buy a summer cottage that’s two hours away because the gas is too expensive to go to it,” he says. “It will have an effect. The farther [the cottage is] from St. John’s, the harder it’ll be to sell.”

Categories
Cottage Life

Real estate agents oppose Nova Scotia’s new taxes for non-resident property owners

Photo by Shutterstock/Sam and Brian

At the end of March, Finance Minister Allan MacMaster released Nova Scotia’s 2022-2023 budget. As part of the budget, the province has introduced two new taxes that target property owners who live outside of Nova Scotia: a Property Tax and a Deed Transfer Tax. Both taxes took effect on April 1.

The Property Tax requires non-resident owners to pay an annual $2 per $100 of the property’s assessed value, as determined by the Property Valuation Services Corporation. Non-residents who rent their properties to Nova Scotians are exempt from this tax.

The Deed Transfer Tax requires any non-resident purchasing a residential property, including vacant land classified as residential, to pay a five per cent tax on the property’s purchase price or assessed value (whichever’s greater). Non-residents are exempt from this tax if they permanently move to the property within six months of purchasing.

The Nova Scotian government estimates that the two new taxes will generate $81 million of revenue in the 2022-2023 fiscal year. The earnings will be used to combat the housing crisis that’s plagued the province for the last three years. The price of properties and rent have skyrocketed in Nova Scotia, particularly around the Halifax area, and affordable housing is in short supply.

In October 2021, Halifax’s vacancy rate dropped to one per cent, according to the Canada Mortgage and Housing Corporation, tying the area with Victoria, B.C., and Peterborough Ont. for the lowest vacancy rates in Canada. Halifax’s vacancy rate first hit one per cent in 2019, the area’s lowest reported rate in the past 30 years.

In part, the government holds the high percentage of non-resident property owners in the province accountable for the low vacancy rate.

In 2020, 3.6 per cent of Nova Scotia’s residential properties were owned by non-residents, a higher percentage than both Ontario and British Columbia. Nova Scotia’s Finance Department estimates that around 27,000 of the province’s residential properties are owned by non-residents, with 52 per cent of those owners coming from Ontario.

The government theorizes that the new taxes will convince the province’s non-resident property owners to sell or rent their properties to Nova Scotians, opening up more affordable housing. The majority of people impacted by the new taxes, however, will be out-of-province cottage owners.

“Nova Scotia has a lot of people that come back because the cottage has been in the family for two or three generations, and it just happens that the children have moved to different provinces, but they still consider [the cottage] as going home,” said John MacKay, owner and broker of MacKay Real Estate. “They keep the cottage because it’s a great place to get together with family, cousins, relatives, and things like that. And now you’re doubling or tripling the taxes. People are going to question that.”

In a letter opposing the new taxes, real estate agent Stan Rose wrote: “Non-residents are not covered under Nova Scotia health plans and have to pay for any and all medical expenses. They are not a drag on our welfare system. They have no kids in school and most of them are only here from late spring to early fall. I don’t think any are in our prison system. They only use our roads during the period they’re here, and that doesn’t contribute to the damage done in the winter season.

“Actual benefits to Nova Scotia: They buy land and build expensive houses and then are taxed accordingly. They hire carpenters, roofers, painters, plumbers, and other tradespeople. They buy furniture, cars, trucks, trailers, boats, build wharves, buy clothes, food, alcohol, and oil, and support local restaurants and tourism events. They pay HST on most of these items and do not get any back. Looks to me like we already have a win-win situation. Why mess it up?”

Both Rose and MacKay are concerned that the non-resident taxes will deter out-of-province buyers from purchasing property in Nova Scotia and convince cottage owners to sell, impacting the province’s economy. It’s unfortunate, MacKay said, as he sees the demand driving the housing and apartment shortage in Nova Scotia as separate from the demand driving the cottage market. “The two are apples and oranges.”

With the ability to work from home, there’s been more demand for people to get out of their rental accommodations and buy a house, which is driving the housing shortage, MacKay said. Whereas cottage demand is being driven by people who’ve decided not to vacation internationally due to the pandemic and are instead looking for a domestic retreat.

Regardless, the government has moved forward with the taxes, and, in its 2022-2023 budget, has devoted $15 million to affordable housing programs.

“We will do what needs to be done to make sure Nova Scotians can afford a place to call home,” MacMaster told the province’s legislature.

Categories
Cottage Life

Stay at these gorgeous oceanfront cottage rentals in Nova Scotia

Photo by Jacqui and Andy Wilcox/VRBO

Nova Scotia is the land of lobster cookouts, stunning ocean views, and some of the friendliest accommodations you could ask for. Whether you’re heading east for the Halifax Jazz Festival, Peggy’s Cove Festival of the Arts, the Clam Harbour Beach Sandcastle Competition, or just a quiet retreat, the locals are sure to make you feel at home.

If you’re looking for a place to stay, consider one of these affordable rentals. All six are within a few hours drive of Halifax and offer nearby beaches, extensive hiking trails, and the opportunity to catch a glimpse of local wildlife, including whales, eagles, and seals.

Cottage Exterior

Photo by Phil/VRBO

Owls Head Island Cottage

Oceanfront View

Photo by Phil/VRBO

Owls Head Island Cottage

Cottage Kitchen

Photo by Phil/VRBO

Owls Head Island Cottage

Cottage Dining Area

Photo by Phil/VRBO

Owls Head Island Cottage

Cottage Living Room

Photo by Phil/VRBO

Owls Head Island Cottage

Cottage Bedroom

Photo by Phil/VRBO

Owls Head Island Cottage

One of eight properties on Owls Head Island, this four-bedroom, Nova Scotian cottage offers breathtaking views of St. Margaret’s Bay. Start your day wildlife watching with a coffee on the cottage deck.

Location: Owls Head Island, N.S.

Price: Averages $242 per night

Sleeps: 4

Bedrooms: 4

Notes:

  • Oceanfront property
  • Laundry on site
  • Firepit
  • Internet additional cost
  • No unregistered guests

Click here to book

 

Cottage Exterior

Photo by Pam Knickle/VRBO

Mahone Bay Cottage

Cottage Patio

Photo by Pam Knickle/VRBO

Mahone Bay Cottage

Cottage Kitchen

Photo by Pam Knickle/VRBO

Mahone Bay Cottage

Cottage Living Room

Photo by Pam Knickle/VRBO

Mahone Bay Cottage

Cottage Bedroom

Photo by Pam Knickle/VRBO

Mahone Bay Cottage

Cottage Bathroom

Photo by Pam Knickle/VRBO

Mahone Bay Cottage

A luxurious couple’s getaway, take advantage of this one-bedroom cottage’s proximity to Mahone Bay harbour with a stroll along the waterfront or head to the nearby Settlers Museum and Lunenburg Art Gallery to soak in some Nova Scotian culture.

Location: Mahone Bay, N.S.

Price: Averages $158 per night

Sleeps: 2

Bedrooms: 1

Notes:

  • Laundry on site
  • Internet included
  • No children
  • No pets

Click here to book

 

Cottage Dock

Photo by Sheila and Bill Bean/VRBO

Bayview Cottage

Cottage Exterior

Photo by Sheila and Bill Bean/VRBO

Bayview Cottage

Cottage Living Room

Photo by Sheila and Bill Bean/VRBO

Bayview Cottage

Cottage Deck

Photo by Sheila and Bill Bean/VRBO

Bayview Cottage

Cottage Kitchen

Photo by Sheila and Bill Bean/VRBO

Bayview Cottage

Cottage Bedroom

Photo by Sheila and Bill Bean/VRBO

Bayview Cottage

Overlooking St. Margaret’s Bay, this Nova Scotia cottage has 60 feet of oceanfront along with a dock and boathouse. Take the kayak or snorkeling gear out to explore the surrounding waters, or relax dockside with a drink in one hand and a fishing rod in the other.

Location: Hacketts Cove, N.S.

Price: Averages $238 per night

Sleeps: 2

Bedrooms: 1

Notes:

  • Oceanfront property
  • 35 minutes from Halifax
  • Internet included
  • Kayaks and paddle board available for use
  • Six minutes away you can buy fresh lobster from Ryer Seafood Ltd.

Click here to book

 

Cottage Exterior

Photo by Jacqui and Andy Wilcox/VRBO

Whitecaps Cabana

Cottage Deck

Photo by Jacqui and Andy Wilcox/VRBO

Whitecaps Cabana

Cottage Living Room

Photo by Jacqui and Andy Wilcox/VRBO

Whitecaps Cabana

Cottage Kitchen

Photo by Jacqui and Andy Wilcox/VRBO

Whitecaps Cabana

Cottage Bedroom

Photo by Jacqui and Andy Wilcox/VRBO

Whitecaps Cabana

Cottage Outdoor Shower

Photo by Jacqui and Andy Wilcox/VRBO

Whitecaps Cabana

Inspired by traditional fishing stages, this Nova Scotian cottage has a 500-sq. ft. upper deck and a 300-sq. ft. lower deck. Relax in the upper deck’s daybed overlooking Creaser Cove, or rinse off beneath a blue sky in the cottage’s outdoor shower.

Location: Lower LaHave, N.S.

Price: Averages $216 per night

Sleeps: 2

Bedrooms: 1

Notes:

  • Oceanfront property
  • Private beach
  • Internet included
  • Fire pit
  • Outdoor shower
  • Pets welcome
  • No children

Click here to book

 

Cottage Exterior

Photo by Stewart Applegath/VRBO

Eagles Pass Cottage

Cottage Ocean View

Photo by Stewart Applegath/VRBO

Eagles Pass Cottage

Cottage Living Room

Photo by Stewart Applegath/VRBO

Eagles Pass Cottage

Cottage Kitchen

Photo by Stewart Applegath/VRBO

Eagles Pass Cottage

Cottage Bedroom

Photo by Stewart Applegath/VRBO

Eagles Pass Cottage

Cottage Deck

Photo by Stewart Applegath/VRBO

Eagles Pass Cottage

This seven-acre property, hand-built by the owner, features a cathedral ceiling, pine beams, and cedar shingles finished in classic Cape Breton style. Surrounded by walking trails and stunning views of the Atlantic Ocean, the cottage is two minutes from Chimney Corner Beach.

Location: Chimney Corner, N.S.

Price: Averages $328 per night

Sleeps: 4

Bedrooms: 2

Notes:

  • Oceanfront property
  • Two ponds on property
  • Internet included
  • Five minutes from the Cabot Trail

Click here to book

 

Cottage Exterior

Photo by Randy and Arlene Duggan/VRBO

Black Point Cottage

Cottage Beach

Photo by Randy and Arlene Duggan/VRBO

Black Point Cottage

Cottage Deck

Photo by Randy and Arlene Duggan/VRBO

Black Point Cottage

Cottage Kitchen

Photo by Randy and Arlene Duggan/VRBO

Black Point Cottage

Cottage Living Room

Photo by Randy and Arlene Duggan/VRBO

Black Point Cottage

Cottage Bedroom

Photo by Randy and Arlene Duggan/VRBO

Black Point Cottage

With a beach across the road, this Nova Scotian cottage offers the perfect vantage point to catch a glimpse of porpoise, seals, or even a Minke whale. And if you want to try your hand at cooking, the owners are willing to provide an outdoor lobster pot.

Location: Black Point, N.S.

Price: Averages $149 per night

Sleeps: 4

Bedrooms: 1

Notes:

  • Oceanfront property
  • 40 minutes from Halifax
  • Air conditioning
  • Laundry on site
  • Snorkel gear available for use

Click here to book