In this Issue

• Why Blue Water Acres continues to lead Ontario in sales
• What you can do with your five weeks
• Why you should buy now
• What's happening in Muskoka
• Links to more information

Why Blue Water Acres continues to lead Ontario in sales

There's no doubt that the “perfect economic storm” that started brewing in the U.S. in 2007 arrived in Canada this year.  Yet, despite these challenging economic conditions we are pleased to announce that we have reportedly once again celebrated the highest level of fractional sales in Ontario this year,

We are often asked what is different about the Blue Water Acres fractional ownership program that permits this success.  We feel there are three main factors:

First, our interval program is affordable.  In most instances, our most expensive interval price is typically the lowest starting price for fractional intervals offered by our competitors. We've worked hard to control development and marketing costs, which means we have been able to pass on lower interval prices to our owners.

Second, we believe our comfortable and authentic cottage designs have made us highly competitive. People told us they did not want large, "city style" cottages in cottage country, and we listened.

And third, we have prided ourselves on offering a no-pressure, customer sales program. Obviously, we want people to buy fractional intervals from us, but we also realize that the purchase decision has to be the right choice for buyers and their families.  We don't believe in aggressively pushing our program - we believe our product speaks for itself.  We're here to help educate prospective owners on the benefits of fractional ownership in general, and Blue Water Acres' program in particular, and that will remain our top priority.

As the economy softens, people look more and more for value, and our fractional program offers great value.  Our owners recognize that our smaller cottage sizes and quality construction mean lower maintenance costs in comparison to many competitive properties.  We also offer flexible cottage use through access to international resorts with Interval International's exchange program at a fraction of the normal cost.  And we offer a voluntary cottage rental program for our owners who may not be able to visit their cottage for some or all of their weeks of ownership.

Our buyers have also told us that what they really like about Blue Water Acres are the many things available to do in every season.  For instance, the resort features a sandy beach, indoor swimming pool, fitness centre, snow tubing hill, nature trails, recreation trails, boat dock and firepit.  We will also be developing a clubhouse complete with social gathering area, meeting room and new fitness centre.  Our owners like the fact that Blue Water Acres is a short drive away to internationally renowned Algonquin Park, the Hidden Valley alpine ski hill and the town of Huntsville. 

Another reason why Blue Water Acres sales remain strong is our cottages.  The quality of construction is first rate and all of our cottages feature flat screen televisions, screened Muskoka rooms, fully equipped kitchens, Canadiana furniture, heated floors in the washrooms, and much more.

Our owners tell us that the cottages have met and exceeded their expectations. They also love the natural feel of the property and we have worked hard to maintain the authentic cottage environment, unlike many other similar developments.

Blue Water Acres is open daily year-round.  Please come for a visit and view our model cottage.  Spend some time walking around the property and we think you'll quickly agree that there are many reasons why Blue Water Acres continues to enjoy the fastest rate of sales of any fractional ownership resort in Ontario.

What you can do with your five weeks

When some people consider our five week fractional ownership interval model (the most common in Ontario) they tell us they'd love to be able to spend that much time at the cottage, but they don't have that much vacation time every year.

The flexibility of how those five weeks can be used takes that challenge away!

First, we are finding that once owners buy an interval, they do find the time to use all five weeks. In some instances, they may not stay for an entire week in every season, but rather enjoy an extended long weekend. Even when they stay for three or four nights on their given
week, they recognize that it is less expensive than renting a room at a resort, and they feel more comfortable in their own cottage.

A second option is to exchange one or more of the weeks you own, to visit one of Interval International's resorts in over 75 countries across the globe. Interval International is recognized as the exchange company that offers a high level of exchange availability
through their exchange program, and their resorts included luxurious branded properties such as Disney, Four Seasons, Marriott and more. Many owners tell us they would not normally be able to afford to stay at such luxurious properties, but they can for a fraction of the cost as a result of their ownership at Blue Water Acres and membership with Interval International (which is part of ownership benefits at Blue Water).

Third, you can ask us to help you rent one or more of the weeks you own at Blue Water. We have been in the resort cottage rental business for 30 years and we are focusing on expanding our cottage rental marketing program. With our rental program you receive 50% of the rental revenues. We have structured a competitive rental rates structure, and our web site is one of the highest optimized fractional ownership web sites on Google and Yahoo. As you are likely aware, most consumers first go to the internet when they are searching for a
cottage rental. We remain committed to ensuring that the Blue Water Acres web site and our cottage rentals will be one of the first information sources consulted.

Finally, you can gift one or more of your weeks to friends, family members, colleagues or employees. What a great way to save money on gift giving and enhance relationships.

On the flip side of the five weeks of ownership, some of our owners find that's not enough time and they want to spend additional weeks at the cottage. Again, we have options! One option is to access our internal owner exchange program. For instance, if you want two
consecutive weeks at the cottage, we may have an owner who has deposited one of their weeks in the rental program. For a nominal fee, you can rent an additional week from another owner.

If you want to guarantee that you have two weeks every summer, and additional weeks in other seasons, why not consider buying a second five week interval, which then provides you with 10 weeks of cottage ownership every year at Blue Water Acres. We've had quite a number of owners who have done just that. We offer preferred pricing to owners who want to buy a second interval. Please ask us for details.

Regardless of how you elect to use the weeks you own, you can rest assured that your cottage is fully maintained and that all arrival and departure details are cared for by our experienced property management team.

Why you should buy now

We realize that everyone is feeling the economic pinch right now. We want to ensure that if you make a purchase this year, you can still enjoy all that there is to do and see in Muskoka this fall and winter, so for first time buyers we are offering a special "Winsome Winter" gift package that represents a $750 value in savings.  It includes:

• $100 gas coupon
• $100 alpine skiing gift certificate for Hidden Valley
• $100 gift certificate toward a snowmobile rental
• $100 gift certificate at a local fine dining restaurant
• $50 gift certificate for Algonquin Outfitters
• $50 LCBO gift certificate
• PLUS $250 in spending money!

It's the perfect package to enjoy winter in Muskoka.  This package is available to all first time buyers who make a purchase by November 30, 2008.  What a great gift for your family this holiday season.  

We offer immediate occupancy in most of our cottages, so you won't have to wait to enjoy the magic of Muskoka in the winter.

And, if you don't want to winter in Muskoka and instead choose to exchange your first week of ownership and visit one of Interval International's incredible resorts at over 75 countries worldwide, you have the choice of receiving a $750 cash rebate instead.  The choice is yours!  Some conditions apply, please ask us for more details.

Our interval prices have never been better.  We are also offering a discount on the few remaining intervals we have available from phase one of our project.  This offer also expires on November 30, 2008.

As with most businesses, we'll have to increase our interval prices in 2009, to keep pace with inflation and the increased cost of construction materials.  So now is the perfect time to buy before our 2009 price increase is announced.  We know that every family has a budget and we'll work with you to find the cottage and interval program that best meets your interests and budget.  In-house financing at competitive rates is also available for qualified purchasers.

What's happening in Muskoka

People sometimes ask us "What can you do in cottage country when summer is over?"  Our response is simply that there is so much to do, a week at the cottage in November may not be enough time to enjoy and see all that Muskoka offers.  Here's a partial list of what's happening in Muskoka in November.

The Algonquin Theatre (www.algonquintheatre.ca) is hosting some terrific performances in Huntsville.  They include a show by Robert Munsch, the internationally renowned Canadian children's author (November 7th), an Elvis tribute performance (November 8th), a traditional Christmas play titled "A Gift to Last" (November 20 to 23) and the world acclaimed Celtic Tenors (November 27).  Other regional shows include the Nashville Opry performance in Gravenhurst (November 21) and an opera titled The Brothers Grimm in Bracebridge (November 29).

While some attractions are seasonal, there are still many year-round points of interest to visit, including the Muskoka Boat and Heritage Centre and the Tree Museum in Gravenhurst, the Muskoka Rails Museum in Bracebridge, and The Bala Museum/Memories of Lucy Maud Montgomery (Anne of Green Gables author) in Bala.  Johnston's Cranberry Marsh/Muskoka Lakes Winery is also located in Bala and is open year round for winery tours and tastings.  And if you want to learn how tigers and lions fare in a Muskoka fall, just visit Guha's Tigers and Lions in Utterson, which is also home to alpacas and is open year round.

The unique carriage trade shopping destinations of Huntsville, Bracebridge and Gravenhurst remain open year round and are the perfect spots for Christmas shopping.  If you weary of the shopping and live entertainment, Algonquin Park and local provincial parks remain open year round and offer fabulous scenery and recreation trails in every season.

We can't guarantee the weather in November, but a mild month means you can likely still golf on one of the local championship courses, or if snow arrives early you can strap on cross country skis or snow shoes and make some fresh tracks on our property.

Of course, one of the best ways to spend some time in Muskoka in November is to relax by the fire with a good book and your favourite beverage, or enjoy a leisurely meal at one of the many fine local restaurants.  Or you can wile away a day at a luxury spa, sleep late in our comfortable beds or.....the options are endless.

No matter what you elect to do, you'll find every option imaginable in Muskoka in November.  Come for a visit and see why Muskoka is truly a four-season cottage destination.  For more information on local events and attractions, visit www.discovermuskoka.ca.

Links to more information

Blue Water Acres Fractional Cottage Website

Blue Water Acres Cottage Rental Website

Article about Blue Water Acres in Active Adult magazine. Scroll down to Editor's Choice

Fractional structure much better approach than typical timeshare Toronto Star Article

Consider fractional ownership property TD Waterhouse Investor Insights Article

A variety of Articles about Fractional Ownership

Contact Information

Ed Maroney or Denise Butler

1 866 396 BLUE or 705 635 2880

sales@bwacres.com

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