When I visited Newfoundland in Canadas´ Eastern Maritimes I wasn´t sure what I would find. It´s the closest point to the UK and only 5.5 hours direct flight from London. A seasonal charter flys directly into Deer lake twice a week, . Why did I go? because we are always looking for the ´Next Best Place´ and a recent development called Humber Valley Golf Resort caught my eye. You may have seen the adverts, heard them on the radio. A development of over 300 luxury houses on a golf resort overlooking a lake and surrounded by pristine wilderness, only 10 minutes from a Marble Mountain Ski Resort.  Marble has been described as ´The best ski conditions East of the Rockies´, as an avid skier and long time devotee of the skiing in Montana, Utah and Colorado, I had to see if there was any truth to it.

I stayed at the award winning Resort, which during the off-season (when I was there) was deathly quiet, locals assured me the golf was fantastic and you genarally could play most days without waiting too long. So popular is the course, they are planning another 18 holes within 2 years. But I was here to look at property, so I took the tour with the on-site sales team who showed me some of the finest homes on the development. I was duly impressed with the surroundings, particularly when a Moose strolled along the 7th Fairway!

Prices on the Resort have risen sharply in line with demand, with most of the development sold, a 1 arce (4,000sqft) lot will cost about $350,000 CAD (£165,000) with the cheapest 3 bed home (1800sqft) about another $300,000. with $30,000 ´site development´ costs. So you can have a luxury home in a resort location for about £350,000. Not bad I thought, but needed to do some more investigation. The largest homes (4,000sqft) on the waterfront will set you back about £850,000.

I found a land sale development just 5 minutes along the road with 2.5acre lots on the river for less than $250,000 (£125,000) which is about a third of the resort price and an on-site house builder, who will build your 2,500 sqft dream home to spec for about the same. Now that sounds to me like a deal. A few lots have been sold but you can still get a fabulous spot. I highly recommend it.

But I thought, what about the investor who wants the simplicity of a fully managed rental investment. Big houses will rent well and are ideal for relocation, but ski condo´s are always a winner and if the prices in the Alps are anything to go by, a sure-fire investment winner!

I found 2 bed, 2 bath (1024sqft) Ski Condos, 5 minutes walk from the lifts AND on the banks of the river for only $239,000 (£120,000)  with a management company in place and returns expected to be 10% yield pa. Compared to most of the Alps, where leasebacks tie your investment in for 10 years and only offer 5% at best, this has to be better? Capital Appreciation is likely to be better than the Alps too, as prices there have got out of control. I recently reviewed a development in Megeve, France, with 4% yield (No Personal use) 1 bed apartments starting at 240,000 Euro (£165,000), which works out about twice the price per sqft. with half the yield!

A new project at Marble is offering a 6% Rental Guarantee minimum on Resort Condos with all facilities from $200,000. (Under £100,000) The third starts out with prices as low as $139,000 (£69,000) 2 beds $199,000, 3 beds $269,000 to 4 beds at $349,000 with rental Guarantees up to 14%!!! Now that is good....

But what about the inexpensive end of the market? I found a sub-division further up the lake, with water front lots for as little as $99,000 (£49,000) with building cost of under $150 sqft, a 3 bed detached house could be built for about $175,000, meaning you could have a river front home, 10 minutes from the airport, for about £125,000!

I found other Developments with water frontage at Taylor Estates £49,000 to £110,000. Humber River Estates $145,000 and up. A a special Hunting Lodge on a Blue River Salmon run, 4,800 sqft on 1 hectare for $360,000 (£179,000) outstanding value.

On a more personal level, I was most impressed with the genuinely friendly and open nature of the locals, there was nothing too much trouble and everything with a smile. Not in a false stero-typical ´American´ way like ´Have a nice day´ but real warmth. I defy anyone to visit without finding the same thing.

We ventured out to the Coast to buy fresh seafood, the amazingly fresh  lobster, snow-crab, mussels, etc. Delicious and cheaper than tuna in a can! We saw more moose and stunning Gros Morne National Park, not to be missed. I even discovered a new local delicacy called ´Beer can´ Chicken!

Over the years I have seen the growth and development of resorts before, and 3 determining factors are key:

1. Access - The Humber Valley region has remaining only partially developed for so long because getting there was long and difficult. Now with the expanded airport and direct Charters from the UK, Montreal, plus Toronto this summer, this area is going to open up.

2. Amenities - There are numerous local conveniences, hotels etc. the Trans Canadian Highway goes through it, it´s about the size of the M1 without any traffic, the town of Corner Brook with all 21st century amenities like Walmart and McD´s, Oh! and a Hospital at the end of the Valley.

3. Reason to go - Whether it´s Skiing, snowmobiling, x-country, fishing, boating, hiking, cycling, rafting, camping, golf or just the clean air, Humber Valley is tranquil location that has all the hallmarks of a destination resort in the makng. Believe me, I´ve seen it before.

Call us for further information.

Regards,

Neil

Call for more information: 00 44 (0)208 390 8001