20/20

Well, this was predictable.

Days ago I reprinted a Craigslist ad offering to pay people to line up outside the sales office of a new condo development in Burnaby. “We need people to hold spots and line up for a new condo project located in Burnaby (Kingsway/Willingdon Ave),” it said. “Line up may start as early as weds/thurs night. Grand opening is Saturday February 19, 2011. Warm beverages and washrooms will be provided by the developer. Shifts are determined on how long you would like to stay. (preferably 8 hours+) Get paid cash quickly for sitting in a line up!”

This, of course, is reprehensible. False advertising, meant to misled people and create an untruthful situation. Until, of course, illusion becomes reality. That apparently happened last night when a TV crew from Global showed up, and footage hit the air of anxious buyers ready to mob the latest dream building. By Saturday morning this charade may actually have created demand in Canada’s most delusional market.

Jen works nearby. This is her report:

“When I went to work Tuesday morning I noticed a bunch of people at the empty lot and wondered what was up.  Through the morning, the crowd/lineup grew.  At noon, I noticed the porta-potty in a parking lot behind an adjacent building.  An hour later it was gone (I kinda wonder if we should call the employment standards people – after all, I think it was in the job offer).  The line grew by 50% from what was there at 9:30, so at 2:45 when I left, the lineup stretched beyond the length of the adjacent building.  By 4, they were erecting tents (like very nice party tents –  fully enclosed) for the people in the lineup exposed to the rain. When I went back to work at 8 there were flood lights for the people now in the tents.  And alas, when I left at 10, the floodlights were extinguished, but several police cruisers were in attendance :)

“A co-worker went out and spoke to the people in the lineup at lunch.  When asked what they were in the lineup for, the first two people in line didn’t know.  A little further down the line, someone said they were waiting to buy a condo.  When asked if one of them were going to buy a condo, the guy said no, but his friend beside him was going to buy one.  Asked if they were getting paid to stand in line….answer…no!  Upon leaving the project with a loud comment from my co-worker  “hope you guys are getting paid well for this”,  the answer from one “not bad, not bad”.

“I’m horrified and can’t believe that we live in such a society.  But from 15 floors across the road, it’s very entertaining!  And…there is the possibility of snow on Thursday night or Friday!  I think I might try to sell coffee at an inflated price.”

Okay, same Bat Channel, different Bat City. In Toronto another blog dog reports on a mortgage just handed to his friend by one of the country’s Big Five chartered banks. You know the ones – the global leaders in responsible lending, guardians of an impeccable financial system that would never, ever allow the kind of deadbeat McMansions-for-Oakies loans that lead to the seminal collapse of the US housing market.

Or not.

“My colleague just got a loan approved for $400,000 from one of the top 5 banks. He has s 5 % downpayment (around 20,000). He’s not even on a company payroll but on a contract.  No real job prior to joining our company. Wife is in a retail job of $12 an hour. Above all: will complete 2 years in the country in Sep 2011. What the lending standards the bank has followed here I fail to understand.”

No steady job. No employment security. Minimal downpayment. Uncertain credit history. And yet rubber stamped for 95% financing. At teaser rates destined to reset far higher. How, exactly, is this different from the sub-prime mentality which facilitated the demise of real estate to the south?

Well, one difference is that in the States these days they’re far more conservative than we crazed beavs.

While Ottawa endorses and supports home purchases with just 5% down, the Obama administration is calling for minimum downpayments to be 10% before qualifying for mortgage insurance.

But that hardly matters. In nine of the biggest American cities the average down on  a house is now 22% – a number which has doubled in the last three years. This is also three times the average downpayment in Canada right now, which CMHC estimates is running at just 7%.

And who’s driving this trend towards more prudent lending standards? Here’s how the Wall Street Journal put it:

“The move to force home buyers to lay out more cash is driven mostly by banks, who have found that larger down payments discourage delinquencies by increasing the buyers’ exposure to loss and reducing the impact of declining prices. Many home buyers placed little, if anything, down during the boom.”

It’s also interesting to note while buyers here can get 100% financing, and purchase houses with zero money – thanks to those cash-back mortgages at some of our big, conservative, prudent banks – this is impossible in the US. The only exceptions are for military veterans or rural residents, where government programs allow for no equity. In Canada you just need to be a bank customer, and fog a mirror.

The point of this post, therefore, is to be fooled not by illusion.

The condomaniacs you see lining up, desperate to grab an imaginary unit in an unbuilt building, may be as phoney as the developer’s moral compass. The buyers of houses selling for near half a million may be two paycheques from oblivion. And the bankers in towers of granite and gold may give us our own Madoff moment.

276 comments ↓

#1 Alex on 02.16.11 at 11:22 pm

My letter to Global BC tonight:

Regarding your item on the evening news tonite where you gushed over the line-up for that condo development in Burnaby: Are you aware there was an advertisement on craigslist this week offering to PAY people to stand in that line? That’s right – either the developer or the marketing company created a FAKE lineup. And here you are covering it as “news.” How reprehensible is that? Only as reprehensible as your coverage last week of that trumped-up helicopter tour over White Rock, where you wrongly intimated that mainland Chinese were flocking to the area when in fact it was simply a desperate marketing measure of a failing condo tower.

Now, I am aware that the local real estate mob (and I use that word knowingly) pays what must be a handsome fee to advertise on your station. In fact, most of your segments tonite were “sponsored” either by Re/Max or a mortgage broker. Coincidence? Hardly.

So tell me: In this climate, where Canadian families have maxed their credit, where real estate prices are some of the highest in the world, where the income to household debt-servicing ratio is in excess of TEN (an all-time record, by a long shot), where even the governor of the Bank of Canada has begged Canadians to STOP SPENDING, and where mortgage restrictions are continuously being initiated to stop the obvious insanity created in part by mainstream media lies, are you knowingly committing fraud? Because this spot tonight, along with the White Rock piece last week, most definitely weren’t “news.”

If you have even an ounce of shame, you’ll at least admit to me in a reply that you were either: A) Duped beyond all reason, or B) Lying and committing fraud. So, Global, which is it?

#2 Hoof - Hearted on 02.16.11 at 11:24 pm

Well..

GLOBAL BC showed the Burnaby condo line-up on 6 PM news

The whole BC RE market smells like a whore house at loooowww tide.

#3 Dodged-A-Bullit-in Alberta on 02.16.11 at 11:32 pm

Greetings: Illusion-reality= FRAUD

#4 Carlyle on 02.16.11 at 11:33 pm

Garth you need to add a facebook share button to your daily posts so we can all get these posts into our news feeds.

Facebook page here. — Garth

#5 Jsan on 02.16.11 at 11:38 pm

Again, just sit back and watch the fools trip over each other playing the now what can only be called real estate game. The more and more I read these sorts of shenanigans the more convinced I am that when this thing unravels it will really UNRAVEL. At the height of the US bubble, I remember reading about how condo developers would park limousines out front and have mock paparazzi snapping pictures as the potential buying sheep went into the sales office for the slaughter. It’s all about an illusion and who is dumb enough to fall for it.

#6 mid-Ontario on 02.16.11 at 11:38 pm

Garth, this has to be one of your most discouraging posts to this follower who thought that there was still some semblance of sense and honesty left in Canada.

The banks make me want to vomit; the RE promoters who are sucking naive youngins into debt slavery make me want to vomit and the elected overseerers who are sending this country on the path to ruin make me want to vomit.

The only thing that keeps me from spilling my supper is “bullion licking” in my damp, musty basement….

…not to say that I keep bullion in my basement,of course.

#7 shamalamadingdong on 02.16.11 at 11:39 pm

FIRST!!

#8 wetcoaster on 02.16.11 at 11:42 pm

Unbelievable. Global is either the biggest suckers or keeping up their end of some advertising deal. This should be reported to the CRTC.

Is Global now the official BC Ministry of Misinformation ?

#9 BDG-YYC - on 02.16.11 at 11:45 pm

Et nomini parris, et filio, et spiritus sanctum …
… we’re buggared.

#10 1st on 02.16.11 at 11:49 pm

name says it all

#11 Ben on 02.16.11 at 11:49 pm

1st
Cheeky

#12 Dazed and Confused on 02.16.11 at 11:53 pm

For the first time in my life, I wish Canada was more like the U.S. At least they’re mostly through the process of the greatest housing correction of our lifetime. As we sit here behind the closed door listening to our older brother get a spanking for misbehaving, we are completely oblivious to the fact that we’re next, and it will be much worse.

Just like our brother:
– we pigged out on debt (CC, HELOC, 0/40, 5/35)
– we went nuts over housing (seeing gains by simply selling back and forth to each other)
– we believe the orgy will never end
– we know its different here

However, we took it a step further and ignored warnings and made things worse by misbehaving long after big brother stopped.

Mortgage rule changes in March will be when we don’t hear any more crying. We all know what that means, its our turn.

#13 Jsan on 02.16.11 at 11:54 pm

Here is a good, simple little informative piece. There is absolutely no such thing as being priced out forever. There is only priced out for the time being until the correction inevitably takes place. The only way prices can move up forever is if wages moved up forever in lock step. This doesn’t happen so what you get in a bubble is prices climbing on panic buying and rampant speculation than the inevitable implosion as affordability just cannot support the prices. This does not even take into account interest rates moving from rock bottom lows to much higher highs, that creates an even deeper crater. So, at these levels, use your head, relax, live much cheaper, mortgage, property tax and maintenance free while your friends and colleagues are buying at peak prices and getting saddled with the very expensive costs of home ownership. Enjoy your cheap rent until the home prices come back to earth. In the meantime build real equity with the money you are saving by renting.

“Can you really be priced out forever?”

http://pricedoutforever.com/learn.html

.

#14 Montrealer on 02.16.11 at 11:56 pm

Garth, you def. need to add the Facebook share button to your posts, so we can share specific posts.
Not that I don’t want to be your friend, but I want to post your articles to my friends (although that might end our friendship).
This link explains how to do it (give that to your webmaster): http://developers.facebook.com/docs/reference/plugins/like/

Working on it. — Garth

#15 LJ on 02.16.11 at 11:58 pm

In previous posts, you have showered attention on Miss Bunny flogging the “University City” condo project in Calgary. It is still in the planning stages and looks to face an uphill battle before it actually gets built. It might just end up like the empty holes we have in downtown Calgary that close down and threaten to devour major roadways each summer.

The point is: Why do people keep buying into these projects “on spec” when so many have been abandoned in recent memory, or even relegated to underground parking lots?

I just don’t understand.

A lot of these people probably have parents (maybe grandparents by now) who were burned by last century’s infamous condo crash or friends who were swallowed alive two years ago, but they just keep coming. The sheer number of lemmings who continue to charge toward the abyss amazes me.

Maybe I should just line up for some spiked kool-aid to see what it is all about.

Oh yeah, if you think Calgary is different…. Check the oil price difference between WTI and Brent Crude. The yanks are currently paying Alberta (and by extension all Canadians) about $20 less per barrel of crude than to the Arabs or Brits – and that’s not including the discount we give them for shipping them an “inferior product” known as Western Canadian Select (our synthetic version of oil).

And, don’t get me going on about the lost royalties our bright provincial government refuses to take from the big oil companies for giving away our oil or the transfer payments we loose every year to support building hockey arena’s in Quebec City.

At least when you own a piece of the oil companies (or even our delusional banks) they pay you without having to do any work.

Unlike working to pay vig to the banks on the mortgage for an unbuilt condo.

Rant – Over.

#16 kc on 02.17.11 at 12:01 am

#1 Alex on 02.16.11 at 11:22 pm

Nice!!!

#17 squidly77 on 02.17.11 at 12:04 am

It’s popcorn time, sit back, relax and watch the shim sham ponzi scam unravel. It’s over. Have a laugh at these brand new Calgary condos being spun off for pre-2002 prices..http://indigosky.ca/

#18 squidly77 on 02.17.11 at 12:05 am

http://indigosky.ca/

#19 WTF! on 02.17.11 at 12:06 am

http://www.globaltvbc.com/video/index.html?releasePID=2zjMYspMMoBJ3i5VIoQSzDFpbYSvBhsz

#20 Kevin in Winnipeg on 02.17.11 at 12:07 am

A guy I work with is looking for a house in Winnipeg. I asked why he isn’t waiting until after March 15th to see what happens to the market. He says his Realtor told him listing are high right now because sellers want to sell before the deadline and if he waits, selection will be low and prices will be much higher.

I advised him to get a new Realtor.

#21 john m on 02.17.11 at 12:08 am

A very sad state of affairs..fraud and dishonesty is everywhere and even worse is it is coming from the people who we are supposed to be able to believe and should be able to count on…..

#22 Carlyle on 02.17.11 at 12:08 am

Carlyle from Milton here with another update on my search for a downtown condo rental.

So the agent from Daniels called me back yesterday. We had made an offer on a 1 bedroom at the Festival Tower. The owner wanted 1700 a month PLUS 100 for parking. Insanity the unit was SO small like 550 sq ft. Sure location was great at king and john in downtown Toronto but that asking price was ridiculous. I offered 1500 a month including parking …. They countered at 1600 NOT including parking as their final offer … I told the agent the owner is insane and I will look elsewhere.

The Festival Tower is barely occupied right now and from talking to the agent most of the units were bought as investments to rent out at retarded prices.

Just a guess but I think the owner of the unit I saw may come to regret not taking me up on what was a very generous offer from what could have been a stable renter.

Greed put a lot of these condo developments up but it will be fear that brings their purchase prices and rents
down. Investor fear when entire buildings find themselves empty … There is simply too many units out there with many more coming to hold these rental prices they are asking up.

I’m seeing another agent on Saturday that will be showing me many premium waterfront and in the core units … All of which are reasonably priced between 1400 – 1500 and include both hydro and parking. Some even come with cable.

I suspect a year from now these rental rates will plummet even more as another 17 k units hit the market.

#23 bps on 02.17.11 at 12:09 am

Great blog Garth, amazing the antics of developers, how low will they go? Do you have interest only mortgages in Canada? I have spoken to a couple of acquaintances lately here in Australia, one fellow bought a house just over one year ago to live in, he stretched and took a $600k interest only mortgage offered by his kind mortgage broker. Another guy who I know quite well had a $300k mortgage on his old two bedroom cottage bought 5 years ago, now with 3 children he needs to renovate and add another bedroom, cost 100k, he definitely could not afford a regular mortgage so his kind bank offered to restructure his mortgage to a $400k interest only, he’s taking it. Told me he was nervous about his big debt and said this to the woman at the bank who assured him he would be alright as most other people have bigger mortgages.

#24 Debt's Dark Embrace on 02.17.11 at 12:10 am

Whale oil beef hooked ! Repeat fast 10 times.

#25 RAINBIRD on 02.17.11 at 12:10 am

I agree with the comments about Global Infomercial and of course Garth’s take on it; but, I don’t see any evidence of interest rates rising. At least not in a material way. And it looks like that will continue for a very long time – there is no end in site. So, people naturally believe that if the banks are going to keep giving them money for free – why not take it.

Mortgage costs increased last week. More coming in March. — Garth

#26 john m on 02.17.11 at 12:11 am

1 Alex on 02.16.11 at 11:22 pm….<<<<< excellent!

#27 Dan on 02.17.11 at 12:14 am

I don’t understand how this is possible. Don’t people talk to each other in the line-up ? Haven’t people that were there to buy a condo heard that some of the other ‘buyers’ were payed to stay in line ?

Anyway … here is a question. We are 2 & 1/2 years into a variable open mortgage (prime – 0.75). We are thinking of closing it and the first quote we got for a 5 years fixed was 3.94% with the hint that if we hurry it might be a bit lower (+ 2% cash back to go towards the principal for changing banks). Amortization is 15 years. Should we go for it ? Historically 3.9% is a great rate.

#28 realpaul on 02.17.11 at 12:15 am

C’mon Garth, financing new immigrants fresh off the tarmak is nothing new. The walls of the YVR exit concourse are lined with offers from banks for free money with no credit history. I have seen sandwich boards expressing the same services in at least threee chartered banks on the branch level. The ‘magic’ starts as soon as these people clear customs. The car dealers are offering leases on cars that would cost $100,000 and more in Asia for as little as a couple of weeks pay. These people for the most part would never have access to a car or house or credit in Asia and they get a little crazy on borrowing when they arrive. These poor suckers are like kids in the candy shop …..until they realise that renting the extra rooms out in the house for extra income is not enough. This free money campaign causes a lot of social pain in the Asian community.

Most Asian immigrants come from places where credit facilities are the sole pervue of the ‘upper classes’ and don’t understand the ramifications of long term debt..as few have any experiance at managing same.

For the banks its as easy as rolling a drunk.

#29 Jsan on 02.17.11 at 12:17 am

To everyone who saw the GlobalTV “news story” about the Burnaby Condo complex line up and are miffed about it, I would suggest submitting a compalint to the CRTC about it. I am quite sure that false or fraudulant advertising, especially by a major news organization is a serious offence in their minds. Here is the link to submit a complaint.

http://www.crtc.gc.ca/rapidsccm/register.asp?lang=e

.

#30 schmooze on 02.17.11 at 12:17 am

What a joke…

http://www.globaltvbc.com/video/index.html?releasePID=2zjMYspMMoBJ3i5VIoQSzDFpbYSvBhsz

#31 Utopia on 02.17.11 at 12:18 am

#1 Alex wrote…

“My letter to Global BC tonight…….”

———————————————————

Wow, that was a pretty good letter Alex.

It is despicable really how the media in Vancouver has been co-opted by the Real-Turds (R) and all their sick alien kind. Unfortunately, being a sell-out is nothing new for some of the news outlets when it comes to buttering their bread. I thought you were being very decent and generous in offering them the option to admit they are just pawns when you suggested they tell you they were “duped” by the seller. Very kind offer.

Not one that will be accepted though. That’s the news.

#32 BC Bring Cash on 02.17.11 at 12:20 am

#68 phusis (virgins blog yesterday)

You asked why H dies not punish Oda for doctoring a memo. In my humble opinion H loves Politicians that are good at lying. As he has said in the past for example, a journalist does not make a good politician because they tell the truth. Why would he punish Oda for being fraudulent or dishonest? She has read the same training manuals, goes to the same training meetings and has the same coaches as H does. She is his puppet and as Chief Puppeteer he loves her performance. H will never censure one of his true followers. H is the Messiah that will save us from all those make believe Criminals and Terrorists lurking all over. Lock them away, build more Prisons, sentence them forever, never to be able to support their families again. Let the Provinces pay! Overcrowd the prisons.Lets bring in debtors prisons next. WTF. Is this H really sane? I guess only his therapist knows for sure. The rest of us can only speculate.

#33 WAYNE on 02.17.11 at 12:20 am

Oh how true:

‘I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.’

Thomas Jefferson 1802

#34 Carlyle on 02.17.11 at 12:25 am

Garth,

I work as as a Social Media Coordinator.

When I say add a share button I mean right here in your blog at the end of each of your daily posts. It will greatly increase how often the posts are shared on facebook as users will be able to share your blog posts right here from this page without having to go through Facebooks front end to share from your fb profile.

It should be easy to implement on your blog (likely a simple plugin) and believe me when I say it will increase your post shares tenfold.

Check out this link: http://maketecheasier.com/differences-facebook-share-and-like/2010/09/03.

A lot of blogs have both the like and share button embedded in them as it drives traffic. People by nature are lazy and won’t log into facebook if it means opening new windows whereas the share and lie buttons are simple one click affairs that won’t force them to leave your blog.

#35 Cookie Monster on 02.17.11 at 12:30 am

See Justine’s Beaver had an interview with Rolling Stone magazine where he states that he believes the US healthcare system is evil because they charge for services while the Canadian healthcare system is free, people should not have sex before first being in love, and that chopping off one’s finger off is aiken to ruining your life on drugs.

I think he’s mixed up.

Once he matures I’m sure he’ll realize that women are evil, cutting off one’s finger ruins foreplay, free sex is good, paying for sex is better, love for money is good, paying for healthcare is good and Canada’s excuse for a healthcare system is a killer.

#36 Carlyle on 02.17.11 at 12:31 am

A better article here explains the differences … I think the share button is more powerful but some people will like where they would not share and like still aggregates a link onto the users FB newsfeed although it is nit as prominent. http://www.moneytalksonline.com/blogging/the-difference-between-facebook-share-and-facebook-like-button/

#37 BC Bring Cash on 02.17.11 at 12:40 am

# 31 wayne
The US Fed is a private Banking Cartel. It is not as its name applies a Federal Institution. Yes the President appoints the Fed. Chairman but it still remains as a private banking cartel of Jeckyl Island.

#38 Utopia on 02.17.11 at 12:40 am

#7 wetcoaster

Unbelievable. Global is either the biggest suckers or keeping up their end of some advertising deal. This should be reported to the CRTC.
———————————————————-

Good point Wetcoaster. Lets report this to the CRTC. Are they (Global) not breaking their own code of conduct here? Is Global possibly in contravention of their licensing agreement through the CRTC?

And last, should they not now be called to account for their actions and explain to the tribunal how they have actively participated in a blatant misrepresentation that may subsequently involve them in a lawsuit if and when real estate prices do correct?

Perhaps we should be directing our concerns to the regulating body in a formal complaint. I tend to agree with Alex #1 that a fraud is in process and that Global is complicit if they are not actually ignorant.

Will Global now admit ignorance and an inability to source real news effectively on behalf of their customer base? A boycott is appropriate.

And then a big fat fine. They earned it.

#39 Dave on 02.17.11 at 12:45 am

Wow! Another great post showing just how easily people are falling into the overpriced real estate trap just because some hired goons are paid to stand in line outside.

Garth will you be coming through Kelowna this year again??

#40 Captain Jack on 02.17.11 at 12:45 am

Here is the link for the Global TV airing…the guys being interviewed look like they are lying through their teeth! Both groups interviewed say…”Oh, I think it’s location”. Great script given to them to make it look like they aren’t getting paid to stand there!

http://www.globaltvbc.com/video/index.html?releasePID=2zjMYspMMoBJ3i5VIoQSzDFpbYSvBhsz

#41 betamax on 02.17.11 at 12:45 am

Love the news clip. The bubble-headed bleach blonde acknowledges that condo demand is slow but doesn’t question that the same market is inexplicably “hot” for this one presale on a building that won’t be completed for 3 years.

The two fools…er, buyers gush about location, but what you can’t see in the video is that the entire neighbourhood is chock full of condo towers. You can’t throw a stick without hitting a condo tower. Anyone who wants to buy a condo at that location has hundreds of choices — there’s no shortage, and they don’t have to wait 3 yrs.

Also amusing was how the second buyer mentions a hotel integrated into the tower as a selling point. When did that become a sought-after feature?

#42 The Big O on 02.17.11 at 12:58 am

#30 BC Bring Cash on 02.17.11 at 12:20 am
The word Not printed in the agreement was not initialed by the parties. Does NOT mean a thing. NOT a legally binding agreement. Quite surprised our first class press teams have not caught on.
My guess a H staffer ripped into one of Oda’s people to inscribe it. We will never know the truth but I suspect Oda was not aware of this till later. She is covering for someone in her office and H’s office. Just a bunch of bumble heads duffing around.
Do not be concerned we are in good hands….

#43 Devore on 02.17.11 at 1:03 am

“The move to force home buyers to lay out more cash is driven mostly by banks, who have found that larger down payments discourage delinquencies by increasing the buyers’ exposure to loss and reducing the impact of declining prices. Many home buyers placed little, if anything, down during the boom.”

You don’t say? I wonder how much money they paid for this brilliant piece of research. Or they could have just asked me, I’d have told them that for free.

In the US, the Fed spiked the punch bowl at the real estate party, but even as the slowest of the party-goers realized what was happening to them, they continued to drink past their limits, and all plans of getting home safely went by the wayside. Then, the same Fed crashed the party. All the partiers then went on to blame the alcohol for the ensuing mess, much like a horny bar-hopper does after waking up in the morning with a complete stranger, having done things inhibited when sober.

Who’s gonna be our party-pooper?

#44 CalgaryBoy on 02.17.11 at 1:07 am

UNBELIEVABLE!

#45 blase on 02.17.11 at 1:07 am

Wow,

Pay a few people to stand in line (not fraud btw, all they are doing is standing in a line), and then you can count on the stupifying ignorance of Global News to do the rest.

Oh, weather looks great in the greatest place on earth ‘)

#46 BigAl (Original) on 02.17.11 at 1:08 am

Can’t all of the things being said here about the Canadian housing market, be echoed about world financial markets and Wall Street?

Everything from the scummy pushers, the shady dealings, the claims of stability backed up by nothing?

The shakiness of the economic fundamentals upon which the alleged ‘success’ of each is claimed?

I guess the difference is that the powers that be will throw everything at the financial markets always even to the point of total societal collapse, but they tend to reach a tipping point, always, with real estate where they just let it implode and get on with everything else.

No country, it seems, has ever considered its real estate too big to fail. Canada and Australia the last holdouts.

#47 Carp on 02.17.11 at 1:09 am

I tested your facebook share button and it works just fine – now you are being published to 130+ people and a bunch in Vancouver :-)

#48 Devil's Advocate on 02.17.11 at 1:10 am

Fact or Fiction…???

Who’s credible and who’s incredible? Believe who you must. Live with your trust.

208 Utopia on 02.16.11 at 10:54 pm
#159 BianT wrote…

“and you do not think a loss of 30% is a big deal (as you claim) you are brain dead IMO”.
———————————————————-

Glad you feel so strongly Brian. Like I said, you enjoyed the rise of RE prices so what is not to appreciate about the fact that what goes up must also come down?

It is an objective statement of market functions. I do not attach any emotion to it at all and no, I am not brain dead.

And by the way, I did not say that “peak oil” was a conspiracy theory. What I did suggest was that there is far too much fear mongering (and I mean that).

I am not the slightest bit concerned about peak oil and you should not be either. All it really means for us is that the price will rise and we will have to be a little more energy efficient as time goes on.

Now where is Devils Advocate anyway? I miss the guy.

Keep ‘em on their toes Topi. You and I both know “peak oil” can and will be a good thing. I look forward to it.

Am I back? Do not fret for I never really left – not entirely anyway. And as such, fear not for, nor shall I return.

};-)

#49 Morry on 02.17.11 at 1:12 am

One crucial part of teh global story that haas not been mentioned:

The first 80 buyers of a condo will be getting a 3yr mortgage of 1.9%! Guaranteed by the Seller.

That is one sweet incentive to get bona fide buyers out and in line.

This is not to say that there are not paid folks standing on behalf of buyers… as opposed to being paid by the seller or the builder.

Big Difference my friends.

#50 Patz on 02.17.11 at 1:14 am

There are few places in the world with a free and independent media and lots of them with corrupt and repressive governments who tell the media what to say. So it’s with great pride we look on our media who rolls over for real estate—NOT!

#51 canali on 02.17.11 at 1:21 am

as i mentioned in my previous posting: willingdon and kingsway screams suburbia and is near metrotown…actually ANYTHING east or west of this area or anything along kingsway screams ‘low brow’ or pseudo wannabe middle class….like i said about 10 min east on the perimeter of new westminster the newer condo area of middlegate got pretentiously repackaged as ‘highgate’ (yeah …sure…whatever) …and anything west of kingsway/willingdon towards east vancouver screams from a loudspeak megaphone loudspeaker ‘low brow’….think Danforth east trying to put on airs to become bloor street/yonge/bay area …NOT!

#52 West Coast on 02.17.11 at 1:22 am

This is not really a joke. Our news is blatantly lying in service of moneyed interests.

#53 Tax Savings Seeker on 02.17.11 at 1:24 am

Hi Garth. Nice post. Off-topic question for you. If the economy goes south, and a person ends up losing his or her job, assuming that there is a severance package, what is the best way to get the most out of it (to pay the least tax?)

#54 HouseBuster on 02.17.11 at 1:28 am

This is disgusting. People need to be held accountable for this illegal act. That means they should be jailed and fined.

For starters, Global should run a retraction. And if I worked at another network I’d jump all over this and run a story to say that it was a scam and Global either got duped or was part of it.

#55 Crash Callaway on 02.17.11 at 1:34 am

When all the huckstering is being done in broad daylight and in plain view but not reported in the “trusted media” for what it is …
is despicable and reinforces why blogs like this are needed.
Somebody has to keep lifting the rocks to expose those slimy bastards.

#56 Patiently Waiting on 02.17.11 at 1:37 am

realpaul, don’t worry about the poor Asians. Once credit dries up and the bills come in, expect to see a sea of abandoned beemers at YVR. In fact, I predict a news story on it within a few years. Mark my words.

#57 Condo Dweller on 02.17.11 at 1:41 am

Guys are those people fakely in line or are they holding spots, or tagging in for folks who want to buy a condo but don’t want to stand around, or might have to leave to go do something?

#58 Alberta Ed on 02.17.11 at 1:54 am

Har! Was the F-Man in that line-up?

#59 Genghis on 02.17.11 at 1:55 am

Here is a good opinion piece that appeared in the Vancouver Sun a few days ago.

The depiction of the average state of these places is brutal! Nearly on par with the prose that Garth has used to describe these types of residences in countless previous posts.

Title: Buying a house in Vancouver? Welcome to the money pit

The average new homeowner is purchasing a fixer-upper on the edge of the city that 20 years ago would have been a teardown.

Today, the average new homeowner in Vancouver is buying a reclamation project.

http://www.vancouversun.com/opinion/Buying+house+Vancouver+Welcome+money/4287586/story.html

#60 YYZ on 02.17.11 at 1:55 am

Very interesting that Global ate it all up at face value. Some quality journalism there. It was actually a Chinese newspaper that had an article today on how people were paid $1000 over 3 days by RE agents to line up at the sales office.

For those who can read Chinese: http://www.mingpaotor.com/htm/News/20110216/tbh2.htm

#61 Nostradamus Le Mad Vlad on 02.17.11 at 1:55 am


For my own state of sanity, I don’t bother to watch the contrived garbage the m$m belches out.

“The point of this post, therefore, is to be fooled not by illusion.” — That is the reason.
*
FDIC – CHMC An extremely large ponzi scheme.

Bartering, Growing Food and other info.

Sneaky Govts. Add new wording and don’t tell anyone. Just like Bills C-36 and S-510.

China has an abundance of rare earth minerals, so why are they cutting back?

Which means the Carbonazis will introduce a 17% or so tax shortly, to boost the profits of big oil.

One can see why 60%+ want to return to the Deutschemark, and Wasn’t this when Bugsy Malone and Al Capone were around?

GW / C The Yin – Yang of life. The more above-sea volcanoes erupt (enter HAARP), the colder it will become (by blocking out the sun).

Figures See if you can keep up with them, and China How accurate is Gary Shilling?

7:52 clip Kyle Bass. Be afwaid, be vewy, vewy afwaid. See immediate past intro.

#62 Tim on 02.17.11 at 2:02 am

Come on people, this is Global TV! A joke of a news source. Don’t forget this is the same province that Elected Gordon Campbell, and God help us, the bimbo Chisty Clark may get in, despite her role in the BC Rail scandal. Besides, most parts of Burnaby are grim and crime ridden. You wouldn’t know you are in Canada if you landed in Burnaby…

#63 New Era on 02.17.11 at 2:05 am

holy moly

Average Canadian debt is 100,000.
Wonder if they include kids with 0 debt in the stats?

http://www.vancouversun.com/Average+Canadian+family+debt+hits/4298501/story.html

#64 pece on 02.17.11 at 2:12 am

Garth, make sure you provide a twitter link also.

Peace!

#65 Spiltbongwater on 02.17.11 at 2:18 am

If I agreed to stand in that line up, so long as I didn’t sign any contract for my hopefully cash money services, I would be in negotiations with whatever Greater Fool in that lineup behind me, that actually wants to buy, to pay a higher hourly rate for my place in line.

#66 Devore on 02.17.11 at 2:23 am

#23 RAINBIRD

So, people naturally believe that if the banks are going to keep giving them money for free – why not take it.

Because nothing is free. Sooner or later, you pay for it.

#67 InvestX on 02.17.11 at 2:25 am

“Carlyle from Milton here with another update on my search for a downtown condo rental.”

Hey Carlyle, thanks for the interesting updates. Keep us posted.

#68 Bobby on 02.17.11 at 2:26 am

I recall looking to buy a ski condo a number of years back at a hill on Vancouver Island. Wanted to do my due diligence but the realtor wanted a quick answer as he had 350 people ready fo buy the units.

Of course, I said to sell to them and moved on as I would not make a commitment without properly reviewing the document. He called back and said he wanted a moral commitment. Yeah right, when did morality and flogging condos go hand in hand.

Six years later, still some of those units have still not
sold.

#69 BrianT on 02.17.11 at 2:27 am

These two guys weren’t satisfied with their taxpayer supported welfare gig (groping old women) http://www.nypost.com/p/news/local/bags_tsa_agents_busted_checked_jfk_FRka1bq83wcuV1xwkEwUJK

#70 Crazy on 02.17.11 at 2:31 am

I remember all the talk about folks in the USA getting mortgages that they could not afford (which perhaps they couldn’t) and how that would mean that in the end they would have to be servants to the bank for the rest of their lives. Harper’s Magazine had a great cover illustration showing a serf-like man bent over with a huge house strapped to his back.

Well, it did not work that way… things turned out very differently for all involved, especially for the banks (and their investors) who thought they would always be okay because homeowners would have to keep paying their loans and make them rich.

Homeowners just walked away and said “screw you”. The mortgage industry WAS NOT expecting that.

I wonder if history is repeating itself now in Canada. I think people are buying homes because they feel their money slipping through their fingers….in the form of inflation.

In the end, it may be the banks that are screwed because at the rate that the CB’s are inflating, most people will pay of their homes with rapidly depreciating money.

People are not as stupid as many here may think.

#71 CJG on 02.17.11 at 2:39 am

Hi Garth – reading your posts for a few months now and am enjoying them!

I’ve been following the Calgary stats for quite some time now and have noticed that pending sales have doubled over the past month, yet completed sales have not. For the past few weeks, pending sales have been +/-500 at any point in time, yet weekly sales closer to 300+ ish. Previous to this the numbers seemed to run much closer. Sold our house last May and it took a week to close, which we were told at the time was typical. So you would expect that within a week, give or take a little, those pending sales would become completed deals. Makes me wonder if a number of deals are falling apart. And if they are, it makes me wonder why.

I was shocked to see the pending sales double just after the announcement to eliminate 35 yr am’s. I really didn’t think people were that crazy.

#72 levelzero on 02.17.11 at 2:39 am

If people can complain about a single word in a 20+ year old song, how come no one files a complaint with the crtc about there being two misleading “news” reports in as little as a week?

http://www.crtc.gc.ca/RapidsCCM/warning.asp?page=warningEng.htm&lang=E

#73 Shoggy on 02.17.11 at 2:56 am

So here is my line of thought, Garth, and you tell me what I need to do to implement my solution. The banks have been lending out money to people who cannot afford it (when interests rates go up, as they will be according to Carney), to buy real estate they cannot afford, because the banks know that CMHC backs the mortgages which have less than 25% down. Well, in reality it is not the mystical CMHC but the Canadian tax payer who backs these mortgages. The reality is that given that the people who have blown their brains out buying real estate will not be the taxpayers who will be on the hook, it is the taxpayer who has been the responsible one, i.e. the taxpayer who did not fall for the false advertising and instead put their money in the stock market, in preferreds, and, therefore, has liquid cash, who will be on the hook. I am quite sure our government (Liberal or Conservative, since they are both the same when one pulls apart the veneer) will figure out a way to make the taxpayer will liquid assets to foot the bill for what was essentially irresponsible government policy that led to the conditions which created the current housing bubble.

So that is my line of reasoning, which leads me to the conclusion: How do I protect my hard earned assets from the money grabbing hands of the government? I have most of my assets within my RRSPs, TFSAs and RESPs. F and his crew have aptly demonstrated that they will say one thing to the voters and do another (the Halloween Massacre of the Income Trust Market). You have been in government, so my questions are:
(a) Can the government change the laws so that money kept in TFSA’s become taxable and, even worse, retroactively taxable?
(b) Would there be any point in approaching my local MP and/or MPP and raise the issue of the false advertising of the real estate market that Global News has been become complicit?
Shoggy

#74 BrianT on 02.17.11 at 3:28 am

Great line-it should be on a t-shirt-“Everything’s f–ked up and nobody goes to jail”-Classic http://www.rollingstone.com/politics/news/why-isnt-wall-street-in-jail-20110216

#75 Alex on 02.17.11 at 3:31 am

Average family debt hits $100,000:

http://www.canada.com/travel/Average+Canadian+family+debt+hits/4298501/story.html#ixzz1ECEQzjdc

#76 Roial1 on 02.17.11 at 3:38 am

Well, It seams to me that we are seeing a great oportunity here for our “great” PM.SH. (When he does NOT get his majority)
Ya. can’t you see him as a shill for Van. realestate??? He is so expirienced at lying in parliament he would not have one smidge of a problem keeping a streight face while expounding on the wonders of living in delusion land. (er, Vancouver)
Hell, we’d see him every night on Global. OH SHIT!

#77 Wise Guy on 02.17.11 at 3:46 am

If you want to share any of Garth’s posts on facebook, all you have to do is highlight the HTML link above on this http://www.greaterfool.ca website and then simply click the link button on your profile page, press ATTACH and then voila, his latest post will be on your facebook.

It’s very simple!

#78 Brian on 02.17.11 at 3:48 am

I heard from someone that knows someone that works for the developer that they have no knowledge of anyone being paid to stand in the lineup….i find that very hard to believe. People are being blinded by all this hype and are buying into the own demise of lifetime debt. Can’t wait for people in the city of Vancouver to get a wake-up call.

#79 HouseBuster on 02.17.11 at 3:49 am

Vancouver realturds brainstorming:

http://goanimate.com/movie/0XXoh7FYnBQ4?utm_source=linkshare&uid=0nOY5OXfN__8

#80 ian on 02.17.11 at 3:54 am

I can not believe that this nonsense is still going on. Let the buyer beware. I don’t suppose that requiring all sales people to have a securities licence would do any good either.

Don’t worry, be happy!

#81 Peter Pan on 02.17.11 at 3:56 am

A journalist from the Vancouver Sun asked me to provide him with the Craigslist ad… I told him it was pulled soon after appearing on this website… I did send him a copy of it pulled from here…

Hopefully, Bosa gets a couple of inquiring calls tomorrow about their marketing/hiring polices regarding planted prospects.

#82 Burnaby Boy on 02.17.11 at 4:31 am

As of midnight the line ups of people at the Burnaby condo development have all gone as have the tents and security guards. I guess getting on the six o’clock news did the trick. Personally i can’t wait to see the finished product as it is going to change the dynamics of the area! Old Orchard shopping centre will be the next to go the way of the ancient crow roost down on Still Creek. Sad that developers have to be so destructive. Worse yet, the local universities give these clowns recognition for destroying farm land (Big Bend) and ancient crow roosts. Greater fools indeed.

#83 kansai_92 on 02.17.11 at 4:32 am

I am utterly disgusted with the two most recent
marketing ploys (this one and the helicopter fly-by).

Thank you Garth for pulling back the curtains on
this story.
Many times in the past, I have encouraged people
to read between the lines and don’t just take
media and journalism for what it’s worth.

People! You are a free thinking human being.
Don’t digest this garbage on Global and CTV.
God gave you a brain… use it.
We’re not drones from Orwell’s 1984.
When you see “news”, ask yourself, who stands
to gain from this story. Who is the source, who
is the “expert”? Why are they telling me this.

Question everything. Don’t just blindly swallow
the blue pill! Pull away the curtains and follow
that rabbit hole.

#84 TheBigLebowski on 02.17.11 at 4:46 am

lol, and people still think the mainstream media is there to keep them informed ! I have real news for you. All media outlets receive the same faxes when it comes to global events, there is no reporting anymore, only trivia and sensationalism is given priority. Don’t believe me ? Next time you watch the 6 pm news ask yourself once its over what did you learn ? all media is owned by 3 mega corporations worldwide and they are delivered their topics to report on.

#85 robert on 02.17.11 at 5:43 am

Can it be? Is is possible that H and the crew have decided that the best way to buy themselves a majority is to maintain artificially high levels of net in migration to add fresh faces to the ponzi; all the while gently inflating the bubble with CMHC’s illusory “prudent lending” and fiscal management practices. In effect, insuring foreigners to come and buy the land beneath our feet so some of us can sup on granite and stainless. Nahh, that’s pretty far fetched, no one could be that two-faced..

#86 Brian1 on 02.17.11 at 6:38 am

I believe that Global,in future, can be sued for this and, of course, dicredited endlessly.
Police presence????? Who is paying them? If someone of us were to walk with a sign exposing this fraud, would they be arrested? Accosted?

#87 Brian1 on 02.17.11 at 6:39 am

Does anyone have the time to take a sign there?

#88 Brian1 on 02.17.11 at 6:54 am

Do not any university students read this blog, and with nothing to lose and everything to gain could go down there and start an Egyptian demonstration? If you have been looking for some meaning to your studies is this not it? Opportunity knocks but once.

#89 James on 02.17.11 at 7:18 am

Garth

It would appear that Global TV may have knowingly broadcast false and misleading information.

This cuts to the heart and soul of Harper’s efforts to rescind the law that current prevents media organizations from knowingly disseminating false and misleading information.

Given your Federal connections I can think of no one who would be better able to formally file a complaint against the Harper Regime and their efforts to change law to permit them to lie outright with impunity (not that anything is stopping them now).

I would imagine that a formal complaint to the CRTC from someone with your public profile would have quite an impact!

Of course, being a mere member of the public, that would mean you’d end up going toe to toe with Tubby.

#90 Herb on 02.17.11 at 7:44 am

How about a “Truth in Advertising” law, or would that demolish the Great God Marketplace?

#91 Darryl on 02.17.11 at 7:58 am

It’s possible that the line up crew were hired by realtors to stand in line for them . A couple of hours before opening the realtor would exchange places. Some realtors will buy these condos for a quick flip. I know someone that does this.

#92 Danforth on 02.17.11 at 8:08 am

re: the embedded video from Global TV

They impose advertising at the front end of the video which you’re forced to watch.

In my case – I got an ING Direct commercial!!

While I have no problem with ING Direct (they do offer better mortgage rates than the big banks), based on all the “orange guy’s shorts” comments – are you sure you want to promote them here !! :)

#93 OttawaMike on 02.17.11 at 8:12 am

I’m shocked I tell you, absolutely shocked, that Global news would report something not true.

I think the CRTC would have to discipline every TV network news broadcast if we wanted them to go after bad reporting.

Now Devils Advocate is another case, perhaps we can lobby the CRTC to fine the moderator of this blog if DA starts posting 35 times a day again.

#94 Victor on 02.17.11 at 8:56 am

Average family debt hits $100,000
OTTAWA— The Canadian Press
Published Thursday, Feb. 17, 2011 6:13AM EST

A new report suggests the average family debt in Canada has now hit the $100,000 mark.

In addition, says the Vanier Institute of the Family, the debt-to-income ratio measuring household debt against income, is a record 150 per cent.

This means that for every $1,000 in after-tax income, Canadian families owe $1,500.

The Institute says in 1990, average family debt stood at $56,800, with a debt-to-income ratio of 93 per cent.

http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/average-family-debt-hits-100000/article1911044/

#95 Dave on 02.17.11 at 9:01 am

http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/average-family-debt-hits-100000/article1911044/

#96 Apsalar on 02.17.11 at 9:05 am

Saw this article in the Ottawa Citizen this morning. Very scary to think that we are in so much debt….

http://www.ottawacitizen.com/travel/Average+Canadian+family+debt+hits+savings+rate+plummets/4297565/story.html

#97 David B on 02.17.11 at 9:11 am

Average family debt hits $100,000
OTTAWA— The Canadian Press
Published Thursday, Feb. 17, 2011 6:13AM EST
Last updated Thursday, Feb. 17, 2011 7:47AM EST

Yup time to buy Real Estate, find a Greater Fool and that ladies, gentlemen and Canadian TV networks will solve everything eh!

#98 John on 02.17.11 at 9:24 am

McMansions-for-Oakies, love it. Grapes of Wrath reference. Who will be Canada’s next ‘Oakies’?

#99 debtified on 02.17.11 at 9:45 am

Consumer debt rising, but not on credit cards

Read more: http://www.cbc.ca/consumer/story/2011/02/16/consumer-debt-mortgage-transunion.html#ixzz1EDr3qOqt

Average Canadian family debt hits $100,000, says Vanier Institute

http://ca.finance.yahoo.com/news/Average-Canadian-family-debt-capress-2855603359.html?x=0

#100 T.O. Bubble Boy on 02.17.11 at 9:50 am

What “Bubble”? I have a new name for it: Charade.

Realtors and Builders creating the “illusion” of a hot market to sucker in the last of the greater fools.

If there’s such as high “demand”, maybe they can somehow package these new condos in a 2-for-1 deal with the Olympic Village ones that no one wants?

#101 Carruthers on 02.17.11 at 9:56 am

1st, 2nd, 3rd, 5th, 8th, 13th, 21st, 34th…

#102 john m on 02.17.11 at 9:59 am

Perhaps “H” and “F” are paying these people to stand in line with our tax dollars? :-)…..sounds absurd but would not surprise me..after all they created this bubble,bragging to the world things are different here and they sure as hell do not want the bubble to pop before they get elected for another term,and lets not forget the millions of our tax dollars they have used through advertising encouraging people to borrow…..hmmmmmm really not much different is it?

#103 MikeT on 02.17.11 at 10:00 am

“I think it’s location” – sounds like those guys don’t intend to buy, like they were just passing by and are sharing their opinions about the building. The ones who are ready to sink several grand on a shoebox in that building must at least know why they’re doing it and list the reasons to the “reporters”. Otherwise, they must be complete idiots.

#104 realpaul on 02.17.11 at 10:02 am

People here kept bitching at me..calling me everything from an alarmist to a nazi trying to get me to shut up and not bring the topic of civil service wages and benefits to the forefront. The unions prefer the subject be taboo…and now the proof comes out.

http://www.nationalpost.com/news/canada/Civil+servant+wages+rose+nearly+double+average+rate/4298158/story.html

#105 Kevin on 02.17.11 at 10:05 am

This entire post seems to be based on the premise that the Craigslist ad was purchased by the developer. While that’s certainly a more sensational interpretation, it wasn’t my first instinct, and indeed it only occurred to me upon reading the blog post.

My first impression was far less nefarious. It seemed to me that someone simply wanted someone to stand in line for them (so they wouldn’t have to miss work), so that they could show up Saturday morning and get an early pick of a condo.

Is there any evidence at all that the ad was purchased by the developer, or was it just a convenient assumption, in order to fuel an incendiary blog post?

#106 lawrencej on 02.17.11 at 10:11 am

I am just as bearish as the rest of you, but I’m cognizant that any market in any asset class can run much further than what were previously considered nonsensical levels. Sure everything points to a significant correction in Canadian housing, and it therefore should drop, but it might not. Have a close look at the JGB market and Japanese indebtedness – it has only begun to crack in the last two months after 15 years of being “rich.” 5yr bond yields have tripled there recently, but they are still only 0.60% as of today (albeit on their way higher).

The developer tricks referred to in this post are nothing new; perhaps this example is a little extreme, but things like this have been going on globally, in one housing market or another, for decades. Hence while truly morally reprehensible I would hesitate to draw too many conclusions about this particular anecdote. It may signal a top, and it may not.

The right trade if you are short the market – ie you have a family or are 35yrs+ but don’t own a home – is to simply underbuy. Buy a $1mm home when you really want to spend $3mm – the ensuing 40% correction will put you up net $800k. And in the unlikely event that the market keeps going, you have a partial hedge on.

An additional smart move would be to buy calls on USDCAD. If China keeps tightening, USD rates keep rising, and domestic Canadian housing melts down, it seems likely that “against all odds” the Canadian dollar will get killed on flat commodities, rate differentials, and lower growth. Not a bad offset to the 40% you will lose on your $1mm home – and you wave in a much better pad at the lows.

#107 Gord In Vancouver on 02.17.11 at 10:33 am

Great post, Garth.

Unbelievable – just when you think mainstream media outlets have lost it, they continue to stoop lower.

If Global BC is convinced that this is sincere condo demand, they’ll update us on this project’s sales results.

#108 dave99 on 02.17.11 at 10:33 am

#51 Tax Savings Seeker,

FYI, My company laid off a bunch of people a few years ago, and they were able to take half their severance in the current year, and half on Jan 1 of the next year.

#109 bigrider on 02.17.11 at 10:35 am

Very little commentary on this blog from Garth or bloggers regarding the home buyers plan.

Quietly raised to 25k from 20k maximum withdrawal.

Absolutley the worst misunderstood product I have ever seen. People redeeming the 25k to put bigger downpayments, not A downpayment, on an asset most likely to depreciate.

The premise of most is that redeeming liquid, equity assets a no brainer when purchasing illiquid, god blessed ,real estate.

Idiots.

#110 bigrider on 02.17.11 at 10:38 am

I am going to throw a block party when RE starts crashing. Everyone on this blog invited, even the RE pumpers.

#111 Crazy on 02.17.11 at 10:44 am

It’s possible that the line up crew were hired by realtors to stand in line for them . A couple of hours before opening the realtor would exchange places. Some realtors will buy these condos for a quick flip. I know someone that does this.

———

That is exactly what is happening. Everybody here is getting their shorts in a know over nothing. There is no fraud in paying somebody to keep your place in line. it may be crazy, but, some will be willing to pay a few buck to avoid the drizzle.

#112 Young Old Fart on 02.17.11 at 10:46 am

Saw on the news, a guy in Chilliwack BC, had 750K in silver bullion IN HIS HOUSE! Last Wednesday, two guys knock on the door and too bad for him….stole it all!

Talk about all the eggs in one basket…..

#113 realpaul on 02.17.11 at 10:49 am

The ugly reality that no one wants to tal about is that Canadians are tapped out. They have been taxed and misled to the point where most simply cannot avoid the debt/credit trap. There is no money to save or ‘invest’ in RRSP’s , TFSA’s or anything else.

http://www.thestar.com/business/personalfinance/article/940354–banks-are-finding-us-rrsp-fatigued

With average debt now soaring past $100K per citizen ( well past the 52K when the BOC last spoke on the issue it is obvious that the reporting on this issue has been less than vociferous. The governments and bank pimping have left the average person in a state of denial, many thinking that its ‘just them’ thats been having a hard time. No….this ubiquitous debt that has strangled the population has been government led and people have fallen for the scam.

#114 JB on 02.17.11 at 10:53 am

#20 Carlyle

I’m currently looking for condo rentals in the west GTA and am having the same experience, small 1 BR unit in Burlington asking 1350 + parking, offered 1100 with parking and was told that my offer was insulting. The building in question is 60% empty and one person that I spoke to who lived there told me that the majority of units that are occupied are occupied by renters. Can’t wait until these folks start calling in a panic, I’m thinking that will happen at some point this summer.

#115 Utopia on 02.17.11 at 10:55 am

#83 robert asked….

“Can it be? Is it possible that H and the crew have decided that the best way to buy themselves a majority is to maintain artificially high levels of net in-migration to add fresh faces to the ponzi…….”?

———————————————————-

No Robert. That is not the reason.

We happen to live in a country that produced one of the biggest baby booms of all post-war Western nations. Our demographic bulge is larger than most and is what is behind the drive for more immigrants and plenty of new blood.

You may have noticed that in recent weeks there have been immigration changes limiting (restricting) family reunification, particularly affecting elderly parents. There is a very good reason for this.

If the policy was enabled to allow every new immigrant to bring his aging parents into the country then one of the goals of our immigration program would be defeated.

Look at this from a strategic point of veiw. What we actually need are more people in certain age groups to offset the large numbers in retirement. Adding more elderly people from overseas is not giving us a solution to our greying problem.

Anyway Robert, nobody is buying elections as you suggested. All parties agree on the principles of high immigrant numbers if we are to avoid a retirement crisis later down the road.

What the country needs is more working-age taxpayers to support an aging population.

#116 Cookie Monster on 02.17.11 at 10:56 am

holy moly

Average Canadian debt is 100,000.
Wonder if they include kids with 0 debt in the stats?
——————
Are you kidding, haven’t you seen delivery rooms in Ontario hospitals these days? There’s a stack of shovels by the exit, one per child, they already owe money and are put to work right away. Coffee trucks have started serving pablum.

#117 refinow on 02.17.11 at 10:59 am

I find it funny that if some says something in a blog or on the internet…. It must be true…

First of all the 100% financing, let me tell you, there is a very high credit score requirement of 680 that needs to be present with the 5% cash back deals…. And no exceptions to strick guidelines to get the deal approved.

Most who have no money for a down payment, are in that position due to their inability to save money. These very same clients usually have high credit card balances or blemishes on their credit rating. So guess what, they dont have the credit score… So they are not qualifying for the no money down at CMHC.

Stop being such exremist, and automatically think that we have gone from being more conservative than the US to being a nation willing to give anyone “who fogs a mirror” a mortgage, This is not the case…

The bursting bubble will not pop.. It will just deflate over time. The pull back by Flaheraty is good in theory, to stop people from borrowing more than they can afford, however by giving a 2 month warning only blew more air into the balloon. After March 18, it will then turn into yet another pin prick size hole in the balloon.

#118 Nomis Ralpmet on 02.17.11 at 11:01 am

Interesting to see one of common themes showing up on this and other similar sites is the duplicitous nature of our much vaunted banking industry.

Having worked in this area for 20yrs in back-office functions, I believe the industry has evolved(devolved?) from one where the focus was on providing the best products and services to one there the industry itself takes the lion share of the benefits of its actions.

While money may make the world go round, what is it really compared to the car that takes your kids to school, the clothes on your back, the brick and concrete over your head, peanut butter and jelly you eat, etc. Until society knocks money off its pedestal and treats it simply as a tool, I don’t see how we get out the rut we are seeing in the developed world.

(To Nostradamus Le Mad Vlad: You got me…ST1)

#119 Kitchener1 on 02.17.11 at 11:17 am

Very soon we, as a nation will have to undergo a basic math lesson.

Houses prices are a direct result of low interest rates and lenders will to extend credit.

Just watch the variable rate crowd. A 1% increase in that rate, which is very very likely by the end of 2011 means:

average house price, lets say 450k in GTA

Lets assume a 425K mortgage -5% down

Right now at 2.2% over 35Y= $1450

at 3.2% that equals $1678, no big deal right, $225/month increase

$225/month increase
$20/ month increase in hydro
$10/ month increse in heat
$50/ month increase in food with the way prices are
$20/ month increase in insurance- car and home
$50/ month increase in gas or travel (TTC) etc..

Those are very low numbers and very real, now, thats a $375 a month increase. WOW, thats NET in terms of income. Never mind if rates go up by more then 1%.

These increases are going to be catastrophic for those who are already all out. Renting out basements is not going to be an option very soon with downward pressure on rental markets.

#120 Utopia on 02.17.11 at 11:18 am

#102 realpaul

“People here kept bitching at me..calling me….an alarmist…”

———————————————————

Many years ago Realpaul, there was a book written in Canada in cartoon format, a parody of our political process where civil servants were renamed “Snivel Serpents” and Bureaucrats were called “Bureaucrabs” because it was assumed they could only make progress by travelling sideways.!!!

It was totally hysterical to read and pretty much hit the nail on the head but I cannot for the life of me remember who wrote it anymore.

It was done during or on the tail of the Trudeau era and was just about as biting of the political process as you could get away with in those days without being shipped off to Edmonton as an answer to a career move.

Does anyone out there recall that book now?

#121 Daisy Mae on 02.17.11 at 11:18 am

#43 blase on 02.17.11 at 1:07 am

“Wow, pay a few people to stand in line (not fraud btw, all they are doing is standing in a line)….”

fraud 1. Willful deceit; deception; trickery

#122 Andrew toronto on 02.17.11 at 11:25 am

Hi Garth I see you’ve got a facebook link, thought a nice touch might be to get a mobile site and add a qr code on your home page which links anyone who scans it to your website from their mobile phone. I find it hard reading from a mobile phone.. just a thought.. Enjoy your posts..

#123 Fred keisen on 02.17.11 at 11:25 am

Family debt-to-income ratio hits record
+
Mortgage delinquencies up 50%

http://www.cbc.ca/money/story/2011/02/17/vanier-institute-household-debt.html#socialcomments-submit

#124 Sid on 02.17.11 at 11:26 am

Wow, I did not think things happened like this in real life, It is like a bad movie. Absolutely horrific how people are being manipulated in this way. First the chinese helicopter and now line ups in Burnaby! Seriously, ever been to Metrotown. You could not pay me to live there!

#125 Throwstone on 02.17.11 at 11:27 am

RealPaul #102

True…True! Btw was with some correctional officer friends the other day, they both walk in with Clark’s shoe boxes and the shoes are fitted with orthotics 2 pair each!…The allowance is $1000 for personal footwear in their benefits! They get this ‘benefit’ every year.

I can see paying for the whole uniform. But we have got to draw the line.

Let’s see how much public sympathy the OPSEU union gets when they strike.

#126 All that glitters is not golden on 02.17.11 at 11:42 am

$750,000 lesson for Gold and Silver bugs:

“A Chilliwack man was punched, stabbed and tied up by homeinvading thieves who made off with his life savings in silver bars.

The two thugs, wearing what he described as fake police uniforms, unloaded his vault and spirited away $750,000 in silver the man had bought as an investment last year.

The 52-year-old victim, still shaken by the Feb. 9 robbery at his Imperial Street home, now wonders who among his friends or acquaintances is behind the brazen midday theft.

“Obviously, some friend, or friend of a friend, or friend of a family member was told and they leaked it to the wrong people,” he said Wednesday.”

then he goes on to say after losing IT ALL:

“It turns out that it really was one of the best investments I’ve ever made.”

– If it really was one of the best investments, what’s your return on it? Answer: 100% Total Loss.

http://www.theprovince.com/health/silver+stolen+from+home/4300052/story.html

#127 a prairie dawg on 02.17.11 at 11:43 am

@ #85 Brian

I thought that too. Someone should walk up and down the street with a sign that says “Most of the people in this line-up are being paid to stand here.” Then put it on YouTube. Also alert a competing media outlet. CBC could dis global for shoddy reporting. People just love a good scandal. lol

#128 Tim on 02.17.11 at 11:50 am

http://www.vancouversun.com/business/Strong+demand+Olympic+village+condos+stuns+realtor/4298461/story.html

#129 BigAl (Original) on 02.17.11 at 11:55 am

#102 realpaul on 02.17.11 at 10:02 amPeople here kept bitching at me..calling me everything from an alarmist to a nazi trying to get me to shut up and not bring the topic of civil service wages and benefits to the forefront. The unions prefer the subject be taboo…and now the proof comes out.

http://www.nationalpost.com/news/canada/Civil+servant+wages+rose+nearly
=======================================

This “research” comes from an outfit touting itself as “The Frontier Centre for Public Policy”.

Here’s the SourceWatch page on them:
http://www.sourcewatch.org/index.php?title=Frontier_Centre_for_Public_Policy

For a more thorough report comparing public sector and private wages, with the numbers, sources, and data to back it up:

http://cupe.on.ca/aux_file.php?aux_file_id=3115

The more thorough CUPE report provides the actual data, referenced with sources. The article provided by RealPaul is the tale told by the ‘Think Tank’ (from a report with selective timeline omissions) to a National Post reporter who is telling it to us…and I think today’s blog speaks to the problems of reporters and the media, does it not?

#130 Carlyle on 02.17.11 at 11:56 am

Wow a share button already! Damn Garth you act FAST!

#131 Gary in Alberta on 02.17.11 at 12:05 pm

You can forget complaining to CRTC as all you will likely get is a bunch of smoke blown up your spout at best.

All you need to know is that Global is now owned by Shaw and i think CTV has just been acquired by Bell.

Thus if you want to express you displeasure with the owners then just simply boycott the fuckers as that is a way that perhaps we (the people) can have some impact on the ugliness and greediness in what is being played out in our ever deteriorating/ collapsing society.

#132 wetcoaster on 02.17.11 at 12:14 pm

The 6 PM version was far worse than the noon version. Tell me those Asians aren’t fresh off the boat.

And the Asian guy they interviewed was perceived in the noon version as a condo buyer and not the selling agent that they identified in the 6 PM version. This is outright fraud and the CRTC needs to know. Disgusting !!

#133 bridgepigeon on 02.17.11 at 12:15 pm

58 YYZ
I don’t know if Global ate it up at face value or not. I forget which media baron here said the job of newspapers was to sell soap. Probably it was just business as usual…
It doesn’t take much research to show how the Ming Pao is heavily influenced by the Chinese government. Don’t take offense, the media here toes the line equally on a lot of issues. Interesting how the Chinese are being protected from this fraud, which really could hurt them financially, and we are being lead as sheep…

#134 Kuwaiti on 02.17.11 at 12:16 pm

at #108 Is the party gonna be in Ontario? Milton or Brampton (I believe both of these places are gonna be ground zero).

#135 debtified on 02.17.11 at 12:17 pm

Canadian housing starts to stabilize this year and next: CHMC report

http://ca.finance.yahoo.com/news/Canadian-housing-starts-capress-1991691538.html?x=0

#136 bridgepigeon on 02.17.11 at 12:17 pm

DA
Good morning, hitting the slopes today?

#137 Paolo on 02.17.11 at 12:19 pm

The latest prediction was a 25% drop in RE over the next 3 years…

This is just another sign and with tighter rules weeks away and interest rate hikes a few months away while personal debt (outside of mortgages) is at an all time high. It’s just a matter of time.

Like a ‘train wreck’…

#138 john m on 02.17.11 at 12:25 pm

#103 Kevin on 02.17.11 at 10:05 am

This entire post seems to be based on the premise that the Craigslist ad was purchased by the developer. It seemed to me that someone simply wanted someone to stand in line for them (so they wouldn’t have to miss work),………..LOL i am sure its most likely just an eager wealthy Asian looking to hire several people to make sure he has several spots in the line while he hovers over White Rock in his helicopter hoping to get a piece of that pie as well :-)……….How many are you planning to buy?:-)

#139 randman on 02.17.11 at 12:27 pm

Check it out…

http://ca.news.yahoo.com/average-canadian-family-debt-hits-100-000-says-20110217-024843-808.html

Excerpt last paragraph….

“Other data compiled by the Institute shows the number of households behind in mortgage payments by three or more months climbed to 17,400 in the fall of 2010, up nearly 50 per cent since the recession began.”

#140 April on 02.17.11 at 12:34 pm

Did anyone hear the story, ” Real Estate heating up in Vancouver”, broadcast this morning on CBC Early Edition around 6:15? The person being interviewed is the President of the Construction Association of Van. More spin?

#141 race against time on 02.17.11 at 12:36 pm

The paid “placeholders” standing in line at the Olympic Village were just discussed openly on CBC radio, (8:15 am thursday). However, rather than being described as reprehensible and false advertising, it was described as a good strategy for real estate agents to make sure that their potential clients won’t miss out on this amazing opportunity. Seems like a bit of pre-emptive ass covering. Too bad, I thought the CBC might actually call a spade a spade on this.

#142 GTA house hunter ? on 02.17.11 at 12:44 pm

Hi Garth,
My friend who got approved for the $400000 loan and who is mentioned in the todays BLOG, gave me the good news yesterday that he upped his bid on the Missississaga semi-detached house from the $420,000 to $450,000 and is almost guaranteed to get this house.

Apparently this house is a semi detached and was listed to $420,000 and not selling for a while but all of a sudden and within the last few days the owner got 6 offers ranging from $420,000 to $450,000.

He also tells me that the Big Bank is not offering him Prime minus .9% but Prime -.7%.Not much of difference I suppose.But they are ready to overleverage and tie him to years of slavery and yes it is one of the Big FIVE.

Whats up with Miss. ON that semi- detach’s are nearly half a million ? Isn’t this a bubble.Will cities like Mississauga defy all laws and keep surging ahead.Where is the end.

When will it end ?

#143 Got A Watch on 02.17.11 at 12:46 pm

Since we are now entering “Tax”, the season that comes after Winter, before Summer,, here’s a few links for those who have taxing questions:

http://blog.taxresource.ca/

and you can ask questions here:

http://answers.taxresource.ca/

Or you can post questions in the comments below most pages at:

http://www.taxtips.ca/

Both of those sites should answer most basic questions readily. You should still consult a good accountant, preferably one who specializes in tax matters. Their fees are very cheap (compared to most professionals) and they will likely save you far more than they charge.

#144 X on 02.17.11 at 12:49 pm

Global should run another news story on what developers are doing to ensure strong sales.

Or better yet, an US new agency should run the story. I am sure that many Americans would find it humorous that Canadians are still falling for the bait.

#145 The Apocalyptic One formerly Old is Gold on 02.17.11 at 12:55 pm

Just got a call from a realtor telling me what a good time it is to buy. To put it mildly I told him that Canadian RE market is screwed. And guess what his response was, and I quote verbatim, ‘IT IS DIFFERENT IN TORONTO”…LOL

I gave him a lesson in how different it was in LA, San Fran, Miami, Phoenix, Boston, Seattle…

What are the odds that I will hear from him again?

#146 Condo Mania is back says the media | Lievertising on 02.17.11 at 1:01 pm

[…] at Greaterfool.ca even got an email from a local close to the commotion. “A co-worker went out and spoke to the […]

#147 Franco M on 02.17.11 at 1:02 pm

Well Garth and Blog fans,

The debt sprial continues and the end will be when liquidity has dried up. As Garth noted their is still money being allocated to support the issue of mortgages.

I see a number have eluded to the Globe article on Cdn debt ratio’s. Not to worry. Once again they are looking at the responsible Cdn’s to bail out and support the speculators that have been santioned by the government to act in that manner.

The quote from the article.
I think we have a significant challenge,” Ms. Scott says. “There are many vulnerable families. Looking forward, I think we have to remember that we have to continue to invest in public supports for in particular income supports for Canadians and at the same time push forward recommendations around improved financial literacy.”

#148 BAD on 02.17.11 at 1:04 pm


Meanwhile…

As Canadian families prepare to celebrate Family Day next week, they find themselves in six figure territory. Unfortunately it is on the wrong side of the ledger. In its 12th annual assessment of the state of Canadian family finances, the Vanier Institute of the Family reports that average family debt has now hit $100,000. Not only that, the debt-to-income ratio, which measures household debt against income, stands at a record 150%, meaning that for every thousand dollars in after-tax income, Canadian families owe one thousand five hundred dollars.

Family Finances 2010

But in Canada debt levels can rise forever just like the home prices, eh?

A warning for the gold/silver bugs?

$750,000 in silver stolen from home

I suppose a house is better investment in that respect. One cannot steal a house, eh?

Great post Garth. I wonder if the developer scheme that hires people to make fake line-ups falls under the deceptive marketing practices of the criminal code:

Misrepresentations to public

74.01 (1) A person … who, for the purpose of promoting, … the supply or use of a product or … any business interest, by any means whatever, (a) makes a representation to the public that is false or misleading in a material respect.

Canadian Laws Dealing With Fraud

Any lawyers out there willing to take a crack at it?

#149 Re-diculous on 02.17.11 at 1:14 pm

Jsan @27

Thanks for the link to the CRTC. My complaint with respect to Global News is now submitted

#150 Tweets that mention 20/20 — Greater Fool – The Troubled Future of Real Estate -- Topsy.com on 02.17.11 at 1:37 pm

[…] This post was mentioned on Twitter by tamsingleton451, Andrew Sansone. Andrew Sansone said: 20/20 — Greater Fool – The Troubled Future of Real Estate http://bit.ly/eWBBCI […]

#151 Bob Copeland on 02.17.11 at 1:38 pm

I’m crushed. I really thought Candians were smarter then us Americans.

http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/household-debt-surpasses-six-figure-mark/article1911236/

#152 Lievertising on 02.17.11 at 1:39 pm

This makes me sick and angry at the same time.

This is why the media today has no credibility anymore.

Their audience is shrinking along with advertising revenues so they are getting sloppy and desperate.

I wonder how much Bosa Properties spends with Global on advertising?

I bet its huge and enough for Global to do stories like this one that trick the public into creating demand for something. If real estate is so good and in such a demand, why did Bosa have to pay people to stand in line?

The real story here is about the relationship between media and advertisers and how journalism is now an extension of marketing not about the truth for the people.

Sad and pathetic and yet, something tells me this is just the beginning of this type of desperate snake oil sales tactics.

#153 Angela on 02.17.11 at 1:39 pm

Ottawa Mike “Now Devils Advocate is another case, perhaps we can lobby the CRTC to fine the moderator of this blog if DA starts posting 35 times a day again.”

CRTC would tell you that DA is helping Garth with his Canadian content quota.

#154 Devore on 02.17.11 at 1:40 pm

#39 betamax

Also amusing was how the second buyer mentions a hotel integrated into the tower as a selling point. When did that become a sought-after feature?

And it’s hardly a novel idea, like he was saying. Almost every condo has commercial on main floor, and many actually have hotels on lower levels. There’s the Melville and Loden, just down the block from it is the Ritz, then Residences on Georgia and Shangri-la, both of which are massive, Fairmont Pacific Rim, and those are just off the top of my head. Right across the street from the sales centre you have Crystal and Hilton, I mean are these guys delusional or just paid shills?

#155 bill on 02.17.11 at 1:42 pm

would this be they?

”What’s next? Peterson said he plans to explore a couple of book ideas over the next year or two. The book series he did with Stanley Burke in the 1970s, including Frog Fables and Beaver Tales and The Day of the Glorious Revolution, was some of the best political satire Canada’s ever seen. And Drawn and Quartered was a highly irreverent cartoon history of the Trudeau years

Hundreds of Roy Peterson’s classic cartoons are available online at Artizans.com. ”

#156 Abitibidoug on 02.17.11 at 1:47 pm

Among all these people paid to stand in line, there may actual buyers who get suckered into buying at or near the peak. If the correction starts before the condo is built, and additional buyers never show up the builder may run out of money, stop construction, and possibly declare bankruptcy. If that worst case scenario occurs, then what happens? I’m not sure exactly, but a lot of people, and the bank, get burned in the process.

#157 wetcoaster on 02.17.11 at 1:48 pm

Could you imagine the massive fallout if this was a scenario where people were paid to line up as fake buyers of season tickets for a city wanting a new expansion sports team and wanted to show the media how much the true demand was ?

Could you imagine the wrath of ESPN,TSN, worldwide etc ? It would be a total ridicule for a city, but in this case because it is $500,000 condos nothing will happen cause they are total whores of the industry.

#158 Brian1 on 02.17.11 at 1:51 pm

#122 Prarie Dog: At last, Someone with some guts.

#159 But an illusion on 02.17.11 at 1:52 pm

A definition I found for Fraud. Lots of wiggle room in the definition.

Deceitful conduct designed to manipulate another person to give something of value by (1) lying, (2) by repeating something that is or ought to have been known by the fraudulent party as false or suspect or (3) by concealing a fact from the other party which may have saved that party from being cheated.

The existence of fraud will cause a court to void a contract and can give rise to criminal liability.

Canada’s Criminal Code (¶380) defines the crime of fraud as:

“Every one who, by deceit, falsehood or other fraudulent means, whether or not it is a false pretence within the meaning of this Act, defrauds the public or any person, whether ascertained or not, of any property, money or valuable security or any service … (or) … with intent to defraud, affects the public market price of stocks, shares, merchandise or anything that is offered for sale to the public.”

People paid to be standing in a line up may be a misrepresentation of reality but it is not fraud.
More like “Buyer Beware” or Caveat Emptor to me should be applied. Is everybody a victim now a days?

Pretty low moral compass applies but that just seems to be what we call “smart business” now a days. Get use to it because all industries are conducting “smart business”. If one business does it than I better start doing it. I think H, F and C call this competitiveness. Trouble is we are hitting new moral bottoms all in the name of competitiveness. Quite frankly I believe criminal minds are winning on the monetary scale.
I have trouble thinking that way. Feel naive and vulnerable from time to time.
Example:
I bought two bag tea the other day. Yup, there were two tea bags, but the same amount of tea as in one bag.
Lots of trickery out there…
I am getting old and can put up with it.
Trouble is I have children and it bugs the crap out of me
that they will have learn to put up with and adapt to the way we are all treating each other in the name of a buck.
Lack of honesty causes lack of trust…
Disharmony for all. Applies to all relationships.
Country to country
Business to customer
Person to person
It is up to me to be honest to feel ok. I cannot control honesty in others. Called the gut check.
Probably explains the large increase in pharmaceuticals.

#160 Calgarygirl on 02.17.11 at 1:54 pm

I don’t understand all this condo nonsense. I have two sets of friends who have not been able to sell their condos in a year and half in Calgary – one dropped their price 50K, the other for less than what they owe on it….interesting.

Times are very scary indeed.

#161 Coraline on 02.17.11 at 1:56 pm

TREB reported today that YOY sales for the first half of February are still down 13%. The recent changes to mortgage terms and refinancings don’t appear to have had the short-term effect people were anticipating.

#162 Alex on 02.17.11 at 2:16 pm

I too filed a complaint today with the CRTC, right after I fired off my letter to Global last night. I see several folks at other forums/blogs have also done the same thing. And then I sent emails to various media outlets, suggesting they might want to investigate faked condo lineups.

Bitching in a blog (albeit a popular blog) about the deception that helps keep housing valuations over the moon is one one thing. Bringing it to the attention of those who can effect change is something completely different. Hammer enough on that door and it can’t help but open – even if just a crack.

#163 Carlyle on 02.17.11 at 2:19 pm

Hey Garth,

Check out Share Now — http://blog.sharethis.com/2010/08/12/new-buttons-new-twitter/

Share Now measures social reach in terms of shares (who/how/where) — http://techcrunch.com/2010/08/26/sharethis-social-reach-facebook-twitter/

Share Now provides analytics for you via Share Reports – http://sharethis.com/publishers/influenceinsights

I’m actually in the middle of a blog creation for the company I work with, and this is what I’m pushing to be used.

#164 Carlyle on 02.17.11 at 2:20 pm

Oh wait that’s what you are using. oops!

#165 canali on 02.17.11 at 2:24 pm

hey not to worry: the spin doctors are also pushing through the olympic village condos, promoted (3rd time now) by RE top gun Rob Rennie:
http://www.vancouversun.com/health/Strong+demand+Olympic+village+condos+stuns+realtor/4298461/story.html

#166 Carlyle on 02.17.11 at 2:25 pm

#113 JB on 02.17.11 at 10:53 am

The problem is that owners looking to rent out their units are still in the “unrealistic expectations phase” … especially in the “just built” buildings. They need a certain amount of rent to cover off on the mortgage and make a profit … once RE prices start dropping the panic to rent these units out will set in I think.

In some cases the panic HAS already started to some extent, particularly in older condo’s … you’ll see buildings that are 5+ years old offering free hydro, parking, and lower prices. Once the ball really starts rolling though you’re going to see prices crumble across the board I think.

Sucks for me though, I have to rent by April 1st. You can bet a year from now though I’ll be looking for a rent decrease or moving.

#167 SM on 02.17.11 at 2:36 pm

#1 – Alex
you need to take this story to CTV or city TV. Global may ignore your feedback.

#168 new_era on 02.17.11 at 2:37 pm

A couple of my friends whom have been preaching the “you got to buy real estate bandwagon”, just can’t stop spending and

are so deperate for money now, their trying to get their third loan ontop of their over extent line of credit and heathy 400,000 mortgage, and their $35,000 car loan.

They both work taking home about 75,000 per year for both of them.

The banks were willing to give them a 35,000 loan at 7%. The are desperate, but doesn’t understand why the interest rates for the loan is so high compared to their line of credit and mortgage.

For the last 5 years, housing was going up so the line of credit was increased because the value of their house went up, but not in the last year so their line is frozen and they started getting additional loan to satify their appetite to spend spend spend.

Its only a matter of time before the repo man comes calling, they are stuck it this heavy debt load and there doesn’t appear to be a way to get out.

#169 AG Sage on 02.17.11 at 2:40 pm

>Previous Thread >#194 Milhous Plumbers on 02.16.11 at 8:44 pm
>..and you know I thought I was dumb taking on my first car at their age for $1200.

A $1200 car is one of life’s greatest lessons in cost of ownership. A free car, even more so. ;-)

I had the free car lesson compliments of my brother. Also served as a certificate in car mechanics 101. ;-)

>#20 Carlyle on 02.17.11 at 12:08 am

Nice update on the legwork.

>#129 Kuwaiti on 02.17.11 at 12:16 pm
>at #108 Is the party gonna be in Ontario? Milton or >Brampton (I believe both of these places are gonna be ground zero).

Make it Hanlan’s Point Beach. It’ll be beautiful in August . . .

#170 Antonio on 02.17.11 at 2:41 pm

“TREB reported today that YOY sales for the first half of February are still down 13%. The recent changes to mortgage terms and refinancings don’t appear to have had the short-term effect people were anticipating.”

Or would they have been even lower without the rule changes. The most interesting data point is missing. Namely supply. Big question is whether sellers are relisting from last year. If so we can expect price drops.

#171 Otto Doppelganger on 02.17.11 at 2:45 pm

Dear Global TV BC,

I was beyond disappointed in your coverage of the so-called Condo Lineup at the Sovereign development you aired last evening.

Your coverage is yet another example of, in my opinion, shoddy, unbalanced and incomplete reporting of the ongoing real estate boom in the Lower Mainland that borders on free advertising for local condominium developers.

If your reporter had done her homework and reported the entire story, she would have found a craigslist article (or mentions of it from various sources) which advertised for people to line-up to create, allegedly, the appearance of greater demand. It stated:

“We need people to hold spots and line up for a new condo project located in Burnaby (Kingsway/Willingdon Ave),” it said. “Line up may start as early as weds/thurs night. Grand opening is Saturday February 19, 2011. Warm beverages and washrooms will be provided by the developer. Shifts are determined on how long you would like to stay. (preferably 8 hours+) Get paid cash quickly for sitting in a line up!”

Your station bought it hook, line and sinker.

I don’t think I can watch another of your news broadcasts, especially your stunted reporting on real-estate, if you continue to show only one side of the story.

no reply necessary; just do a better job.

#172 Jeff Smith on 02.17.11 at 2:57 pm

Nice porn video. Now, how is that suppose to work? A hotel and residential hotel rolled into one building? Anyone has the skinny into this type of deal? Do you as a person living in a condo want to share space with strangers from far away who happens to just want to be there for couple days in your building? wow, imagine this would be a wonderful deal for young single women to live in.

#173 SM on 02.17.11 at 2:58 pm

#59 – chinese translation from google translator:

Chinese to English translation:

3 days employed earn thousands queuing

Greater Vancouver rush to buy pre-heat conditions, providing “alternative extra money” opportunities. Reporters from China’s Guo immediately confess that he is paying real estate brokers to line up, so “re cold, then wet, then boring,” “I must survive.”

Mr Kwok said that not long ago he was helping people lined up to 3 days earns 1,000 yuan, he said, as Chinese buyers willing to grab the floor, flower, real estate agents to achieve their goals and are willing to pay someone to do, but he stressed that the 3 Days earned 1,000 yuan feel good make, but it was not him alone, but with another line up with his friends take turns occupying equally.

Mr Kwok said that he is only because of the time and just meet people, so his friends that asked him to stub, but he wanted off the record, after all, what kind of work is not considered professional work, and he was in China over the past boss, a lot of people know him, which they see him earn this extra money, do not feel good.

Although often help people to different pre-sales center line, but Mr Kwok said that, like yesterday, the town of Bosa uncompleted railway line on-site confusion, it is quite rare.

Guo said that, in fact, to take the extra money, he had checked the weather forecast, know that tomorrow or the day there is snow chance, but “have been promised to friends, has been unable to go back.”

#174 Jeff Smith on 02.17.11 at 3:02 pm

We are different here, that’s why Obama from the USA wants to keeps us out. He is charging money if you try to cross over. Stay out! you freakin different canucks!

http://news.ca.msn.com/top-stories/cbc-article.aspx?cp-documentid=27706894

#175 David on 02.17.11 at 3:08 pm

Forget how screwed Canadians are as they sit and wait to relive Donald Trump’s lessons in real estate.

The real financial opportunity missed by most Canadians wil be that they now don’t have anything invested in the markets, just as the commodity-heavy Canadian markets wake from a 20-year, inflation-free slumber.

And in a few years, when you hear of people finally deciding to accept their loss and sell their house because they want to put thier money in stocks, you will once again know that that ship has sailed too.

#176 Master Chief on 02.17.11 at 3:09 pm

It is possible that the developer did not pay for those people to stand in line, but it is suspicious to me that they had the foresight to rent tents/chairs/toilets several days in advance. From the video, the waiting area did not look like a spur of the moment setup but something that was well planned for a media event.

#177 Larry T. on 02.17.11 at 3:12 pm

Garth, no such line ups at the Olympic Village, even with fire sale prices of 50% off! The public knows that these condos are junk. 50% off is the kind of price-correction we need in this city though!

http://www.vancouverpropertynews.com/vancouvers-olympic-village-billion-dollar-ghost-town/48/

#178 Angela on 02.17.11 at 3:24 pm

#116 Refinow: “…there is a very high credit score requirement of 680 that needs to be present with the 5% cash back deals….”

Am I missing your sarcasm? You’re not serious that 680 is “very high”? 680 is pitifully low, from what I know of credit scores. If I had a 680 score I would cry unconsolably.

#179 The American on 02.17.11 at 3:28 pm

At #143: X and At #150: Bob Copeland,

Americans actually do find it funny and unbelievable people in Canada are still falling for the bait. Is it something in the water?

#180 Ottawa S on 02.17.11 at 3:34 pm

#34 Cookie Monster

Thanks for showing again how clueless people here are about our healthcare system, and healthcare systems in other countries. If you don’t already live in the U.S., please move there now. And hope that you don’t get cancer or any other serious illness or injury while you’re down there.

#181 Mike Turner on 02.17.11 at 3:35 pm

get a twitter link it’s much more powerful, hell it’s crippling governments around the world. Facebook is for showing people how lame your life is.

#182 Ottawa S on 02.17.11 at 3:43 pm

“Get paid cash quickly for sitting in a line up!”

If someone happened to print/PDF that craigslist article, or responded to it for fun, please report the developer to the CRA ;)

#183 good luck on 02.17.11 at 3:45 pm

The GSE model is dead in the US. Some say Fannie and Freddie will end up costing US taxpayers $1 trillion.

I bought my Toronto house years ago for $300k and think I overpaid. I look around now and can’t believe people are forking out $500+ (of the bank’s money) to buy houses.

$495k in debt for a new family. What a way to start a life.

Americans look at us funny because they can’t believe we’re not learning our lesson. The government now has to beg people to buy houses in the US.

The American dream is dead. And so is the GSE model.

http://www.planbeconomics.com/2011/02/11/geithner-and-the-death-of-the-american-dream/

#184 Ottawa S on 02.17.11 at 3:45 pm

Here’s a question about the change in mortgage rules, that I’m reading mixed reviews about. Does it affect existing mortgages or not? My in-laws bought a house 5 years ago with 5% down. That was in Oshawa, before the market there dove. Their mortgage is up for renewal soon, and they received a letter from the mortgage broker stating that they require an additional $17,000 downpayment before renewing the mortgage. Is this legal or not?

Of course. — Garth

#185 Utopia on 02.17.11 at 3:52 pm

#154 bill

The book series he [Peterson] did with Stanley Burke in the 1970s, including “Frog Fables and Beaver Tales” and “The Day of the Glorious Revolution”, was some of the best political satire Canada’s ever seen.
———————————————————-

You got it Bill..!!! Many thanks. I loved those books when they first came out. Actually they were what got me interested in paying closer attention to politics. And there are more coming now, afyer all these years?

Maybe Roy Peterson will feature our very own CMHC for a few good laughs this time around. Seriously, the guy was a genius at making the driest of subjects seem like essential reading.

Thanks Bill

#186 Prof ANON on 02.17.11 at 4:15 pm

@ #178 The American

I think that this blog documents that there are a lot of people on both sides of the border that find it unbelievable.

Lest you forget our (I’m an American ex-pat) recent histroy, dumb is an international phenomenon.

#187 Canayjun on 02.17.11 at 4:17 pm

I hear the “line ups” at the Bosa development in Burnaby have disappeared, along with the tents and porta-potties. Wow! Way to ruin a party Garth. = )

#188 vreaa on 02.17.11 at 4:20 pm

For the record –
The whole Burnaby Line-up/Global TV story archived with a collection of relevant images, quotes, posts and letters; from Global BC TV, VCI, greaterfool, VREAA:

“Burnaby Condo Presale Lineup – More Shameless RE Promotion Presented As ‘News’ By Global TV”

http://wp.me/pcq1o-1Rm

#189 Nostradamus Le Mad Vlad on 02.17.11 at 4:22 pm

#117 Nomis Ralpmet — “(To Nostradamus Le Mad Vlad: You got me…ST1)”

Great show, mid- or late 60’s, ITV. Roger Moore was a good Saint!

#122 Fred keisen — “Mortgage delinquencies up 50%”

To those who say “It’s coming”, think again. The downturn is well underway and cannot be stopped.

Now the reason is clear why C-H-F and the CPC are desperate for an election.

#144 The Apocalyptic One formerly Old is Gold — “I gave him a lesson in how different it was in LA, San Fran, Miami, Phoenix, Boston, Seattle…”

Excellent reality cheque, Gold!

#173 Jeff Smith — “. . . that’s why Obama from the USA wants to keeps us out.”

Yet a week or two ago, Harper – Obama signed a deal eliminating the border, so what gives? Something doesn’t smell right here.

#190 eddy on 02.17.11 at 4:25 pm

The American asked ‘is it something in the water?’

Yes, it’s fluoride, here is a podcast of interest:

http://www.corbettreport.com/episode-171-professional-perspectives-on-water-fluoridation/

Here’s a video of Dr John Coleman talking about the Committee of 300.

http://video.google.com/videoplay?docid=-6177816737047733655&hl=en#

#191 Carlyle on 02.17.11 at 4:34 pm

#180 Mike Turner

Not true!

Statistically speaking:

45% of shares go to Facebook
12% of shares go to twitter
34% of shares go to an email address
9% of shares go everywhere else

#192 Alex on 02.17.11 at 4:36 pm

#166 SM:

You know, I’m in the process of doing that. Not just to complain that this particular lineup was likely faked, but to say in the most strongest terms that a lineup for a condo development IS NOT NEWS. And definitely not worthy of two minutes of news, complete with an orgasming news anchor leading in with, “The Vancouver real estate market is HAAWWWWT!” Absolute bullsh*t.

I wonder how many Joe Q Publics watched that spot, along with the heli-Asian piece from last week and all the rest of the lies, and thought, “Damn honey, we’d better buy now before we’re priced out forever.”

However, I wonder how deep this goes? I’m not a conspiracy theorist by nature, but I wonder which media outlet ISN’T part of the housing cheerleading squad. Virtually all of them, it seems, make a lot of bucks from real estate advertising. “This segment sponsored by Re/Max.”

BTW, no reply yet from Global regarding my complaint letter. Such a shock. I wonder how they’d respond if we filed a class-action fraud suit. I wonder if such a thing can be done?

One of the major local papers did write back to say they would look into the potential for faked lineups, but I’m not holding my breath.

Methinks I’m only beginning to really see what Garth has been railing against lo these many years.

#193 Carlyle on 02.17.11 at 4:38 pm

Also in terms of clickbacks (people who click on shared links) if you have a pie graph that equals 100% of all clickbacks from shared links:

36% of FB users will clickback on a shared link
31% of email recipients will clickback on a shared link
8% of Twitter users will clickback on a shared link
25% everyone else

#194 bill on 02.17.11 at 4:46 pm

#184 Utopia
apparently Roy was turfed from the pages of vancouver sun because he was too ‘expensive’
unless he publishes himself we wont see him in that rag.
mr peterson I’m in for a copy of whatever you got….

#195 P on 02.17.11 at 4:51 pm

Garth,

Generally, what are your thoughts on getting into XIU at this time?

I do not make recommendations on individual securities without knowing you. — Garth

#196 Debtfree on 02.17.11 at 4:52 pm

@ 92 ottawamike Lying to canadians is a national sport . We should have a stanley cup for it . The prize this year so far this year should go to cabinet . re; the famous v not.
I think that if ministers are given a free pass to lie to Parliament (us). Then we should be able to lie to the judges in our courts . I can’t see the difference .

re; we should also charge the people coming over our border from the states . Why should we pay to get groped and they get groped for free.

It’s looking more and more like a war on tourism rather than a war on terrorism.

#197 Rulze on 02.17.11 at 5:00 pm

Look at the article below from october 2007 saying that the phase 1 of the olympic village was 80% sold in 2 days…

Same kind of crap

http://www.canada.com/vancouvercourier/news/story.html?id=574e3848-675a-4101-8107-11254fba2428

#198 Prof ANON on 02.17.11 at 5:05 pm

Photos and previous selling prices in Calgary.

http://calgaryrealestatereview.com/2011/02/17/overpriced-calgary-homes/

#199 Lorne on 02.17.11 at 5:11 pm

One crucial part of teh global story that haas not been mentioned:

The first 80 buyers of a condo will be getting a 3yr mortgage of 1.9%! Guaranteed by the Seller.

That is one sweet incentive to get bona fide buyers out and in line.
————
So…this justifies paying people to create a fake lineup??????

#200 Doug on 02.17.11 at 5:13 pm

More evidence:

Other data compiled by the Institute suggests 17,400 households were behind in their mortgage payments by three or more months in 2010, up by 50 per cent since the recession began. Credit card delinquencies and bankruptcy rates also remain higher than before the recession.

Full Story Here:
http://winnipeg.ctv.ca/servlet/an/local/CTVNews/20110217/family-debt-110217/20110217/?hub=WinnipegHome

#201 Slice on 02.17.11 at 5:22 pm

I noticed Global wasn’t able to find anyone to interview who planned to move into the condo.

Suckers.

#202 thecomingdepression on 02.17.11 at 5:26 pm

AMAZING how dumb people really are. You have OIL going up that will add a few dollars to your “bills”. food going to double or triple, clothing prices are going to skyrocket, the US dollar is ready to collapse, Silver is rocketing which means cell phones, computers etc. will go up. How are these IDIOTS going to survive? I see a BIG collapse on the horizon, and MANY hungry people.

#203 triplenet on 02.17.11 at 5:27 pm

So an individual places a Craigslist ad looking for someone to stand in line for a condo purchase while they themselves are at work. That’s a brilliant strategy -if it’s true.
If Bosa or the promoters placed the ad to ensure the line up is around the block for all to see how well the sales are going, that may be somewhat unethical although not necessarily illegal – if it’s true.
Depends on which scenario you believe – either you quietly admire the individuals creativity or jump on the bandwagon denouncing it as some form of quasi crimminal activity and postulate recrimination.
Illegal or unethical ?
No, no but maybe.

Should overweight children be served fast food or be banned from the restaurant premises?
Which action would be illegal and/or unethical?

Of course it would be an entirely different scenario if the line-up consisted soley of fat, overweight adults all eating fast food on a public sidewalk.
No littering of course.

#204 Mr. Plow on 02.17.11 at 5:28 pm

#183 Ottawa S

Of course it is legal. But most major banks that I have spoken with will be continuing to allow the 35 year amort at renewal providing the client has been making their payments.

What bank are your inlaws with?

#205 wilde_at_heart on 02.17.11 at 5:29 pm

@ #103 realpaul on 02.17.11 at 10:02 am

People here kept bitching at me..calling me everything from an alarmist to a nazi trying to get me to shut up and not bring the topic of civil service wages and benefits to the forefront. The unions prefer the subject be taboo…and now the proof comes out.

http://www.nationalpost.com/news/canada/Civil+servant+wages+rose+nearly+double+average+rate/4298158/story.html

Although I’m likely responding to some PR bot whose software spamming tool isn’t that finely honed, here goes: Public sector workers tend to be more educated and have more qualifications and do more complicated jobs than many private sector workers.

Consider this: how many coffee shop baristas, shelf-stackers and Walmart greeters work for the government? Oh yeah…

#206 Devore on 02.17.11 at 5:36 pm

#194 P

Generally, what are your thoughts on getting into XIU at this time?

It’s at a 52 week high, and parabolic, do you really need to ask?

#207 Dave on 02.17.11 at 5:43 pm

I am curious…

Was it the developer that was offering to hire people to stand in line, or was it some knucklehead (or group of knuckleheads) that wanted to hire somebody to stand in line on their behalf so they wouldn’t have to.

Seems to me it could really be either – pointing fingers without knowing the full truth is not intelligent, … but regardless, what nonsense with all the shenanigans. Humorous and sad at the same time.

#208 Mr. Plow on 02.17.11 at 5:45 pm

#87 Brian1…

Maybe cut back to one cup of coffee in the morning and try some deep breaths.

I think trying to incite a protest that is comparable to that of the Egyptian one kind of pisses on what they went through.

Do you know the hardships they lived under? You know that people died in those protests right? I think their issues that they were protesting are on a slightly larger scale than some shoddy reporting by Global, or unethical behavior by a developer.

But your comment would make an excellent tongue and cheek Saturday Night Live skit, maybe you should hit up the Lorne Michaels blog and pitch it.

#209 Mr. Plow on 02.17.11 at 5:49 pm

#104 Kevin

Well done sir!

That was exactly what I thought.

When it was first mentioned my initial reaction wasn’t that a developer had put up the ad, but some dude who wanted to pay someone so he wouldn’t miss work or whatever.

But in terms of the big picture, I think it was likely the developer after i have put some thought into it. They seemed quite prepared with tents, toilets etc…

#210 moloko on 02.17.11 at 5:52 pm

ouch!

http://www.cbc.ca/video/#/News/Local_News/BC/1317899897/ID=1800221133

#211 Tiffa on 02.17.11 at 5:55 pm

#104 Kevin on 02.17.11 at 10:05 am

“Is there any evidence at all that the ad was purchased by the developer, or was it just a convenient assumption, in order to fuel an incendiary blog post?”

______

I applaud the desire to keep thinking critically in all contexts, and look for evidence rather than simply things that validate our beliefs (which is kind of the point, isn’t it?)

I went through the same thought process as you appear to have done. However, I am leaning toward a conclusion that this was an act of deceit on the part of the developers based on both the wording of the ad (see some of it in Otto’s post #170), but moreover based on the fact that there is currently nobody lined up, although the opening isn’t slated until Saturday. Once the cameras were gone and the story run on Global, magically everyone seems to have disappeared. This is not proof, or conclusive evidence by any means, but it is little details that don’t seem to align with the idea that realtors actually wanted places held in a line-up.

What person would advertise for a place-holder on Craigslist, creating more competition for themselves, then commit to providing a steady supply coffee and portable toilets? Get a grip, people. — Garth

#212 SM on 02.17.11 at 6:00 pm

#191 – Alex.

agree!

#213 Mr. Plow on 02.17.11 at 6:05 pm

#201 thecomingdepression

I totally agree, I hope I don’t have to feed the dog to my kids. I am have already boarded up my house so people can’t get in and get to my dog first. She is a Golden Retriever and my neighbor and his kids are quite fat.

I saw him eyeballing the dog yesterday while we were shoveling the latest snowfall. His chubby kids came waddling over to give her a tummy rub, but I just know they were feeling to see how much meat they could scrape off of her to feed their exaggerated appetites.

#214 Oil Amen on 02.17.11 at 6:07 pm

The green light has been given to build a new upgrader near Edmonton. 10 000 jobs created. Looks like real estate in E – Town has no where to go but up. Good time to invest in some condos. We’ll be close to Toronto or possibly Vancouver prices within 3-4 years. Yippee!

#215 Mr. Plow on 02.17.11 at 6:09 pm

#197 Prof ANON

Thanks for the link, but I don’t know that it is news to anyone that prices have dropped about 25% (avg) since the peak in 2007. In Alberta at least…

#216 patient in BC on 02.17.11 at 6:11 pm

I wrote to Global too, twice in a week.

BTW, look at those downward prices!
http://calgaryrealestatereview.com/2011/02/17/overpriced-calgary-homes/

#217 Al on 02.17.11 at 6:13 pm

Brokers see “uptick in Real Estate Prices”
http://www.mortgagebrokernews.ca/news/brokers-see-uptick-in-house-purchases/76104

#218 Ex-Cowtown on 02.17.11 at 6:18 pm

#150 Bob Copeland on 02.17.11 at 1:38 pm

I’m crushed. I really thought Candians were smarter then us Americans.

++++++++++++++++++++++++++++++++

We are: The word is spelled “Canadians” and also it is “than” not “then”.

But when it comes to RE and personal debt we are …..mucking forons.

#219 Tiffa on 02.17.11 at 6:21 pm

“What person would advertise for a place-holder on Craigslist, creating more competition for themselves, then commit to providing a steady supply coffee and portable toilets? Get a grip, people. — Garth”

____

I agree with you, Mr. Snarkypants.

#220 mostMiserablePlaceon Earth on 02.17.11 at 6:27 pm

SWAMP SONG
by Burke, Stanley

Many years ago Realpaul, there was a book written in Canada in cartoon format, a parody of our political process where civil servants were renamed “Snivel Serpents” and Bureaucrats were called “Bureaucrabs” because it was assumed they could only make progress by travelling sideways.!!!

maybe this is it?

#221 BrianT on 02.17.11 at 6:28 pm

Beverly Hills area bungalow just went for 920 US (about 906 CDN)-same price as last sold for in 1989 (22 yrs ago!) http://www.doctorhousingbubble.com/beverly-hills-real-estate-selling-1989-price-levels-beverly-hills-housing-correction-1-mls-foreclosure-option-arms-alta-loans/

#222 wetcoaster on 02.17.11 at 6:32 pm

“I hear the “line ups” at the Bosa development in Burnaby have disappeared, along with the tents and porta-potties. Wow! Way to ruin a party Garth. = )”

Let me guess what the name of tonites blog post will be ? LOL

#223 wetcoaster on 02.17.11 at 6:41 pm

“People here kept bitching at me..calling me everything from an alarmist to a nazi trying to get me to shut up”

That’s correct, STFU realpaulberg. No one cares you found too late in life that the real money is in government for people with educations while you dropped out to wash dishes at the schnitzel house.

#224 Maxamallion on 02.17.11 at 6:41 pm

#204 wild at heart and nuts

“Public sector workers tend to be more educated and have more qualifications and do more complicated jobs than many private sector workers.”

You’re truly nuts, get some help.

#225 Moneta on 02.17.11 at 6:42 pm

Once the cameras were gone and the story run on Global, magically everyone seems to have disappeared. This is not proof, or conclusive evidence by any means, but it is little details that don’t seem to align with the idea that realtors actually wanted places held in a line-up.

What person would advertise for a place-holder on Craigslist, creating more competition for themselves, then commit to providing a steady supply coffee and portable toilets? Get a grip, people. — Garth
————
You see that’s how we got into this huge societal mess.

Everyone wants “proof” and if it can’t be proven, it’s not true.

Everyone works with spreadsheets to give the illusion of math, science and mastery but the thing is that nearly all spreadsheets, with 4 digits after the decimal point, are being created by innumerates.

We’re in a world dicated by pseudo-science since most people can’t differentiate quackery from true science.

What a farce!

#226 GG on 02.17.11 at 6:47 pm

I almost drove off the road I was laughing so hard today at about 10:00am in Burnaby. There was a hail/snow/freezing rain/rain/wind storm going on (gotta love the weather in the greatest place on earth) and I was fortunate enough to pass by the BOSA site on Kingsway in Burnaby. I have never seen a more pathetic looking group of losers in my life. The only thing they were each missing was a shopping cart full of their life’s remaining belongings and I would have sworn they were all homeless. They were lined up from the door to not even the corner of the building so I would guess no more than 30 people. I guess the day shift had’nt arrived as yet. There was a camera guy there and they were all getting pelted relentlessly by this freak hail storm. It absolutely made my day. If there was’nt a cop “securing the area” and “controlling the crowd” I would have pulled out my camera phone and taken a few shots from my car. It was totally obvious to me that this was staged to have the maximum number of losers in line exactly when Global was there. Once the cameras left so did all the people. Today there was about 1/20th of the people that I saw on the news. I will be writing Global and the CRTC later today regarding this shameless staged pump.

#227 Paul on 02.17.11 at 6:51 pm

Well if you are all really worried about false news casts then I suggest you go to this link right away!

http://www.avaaz.org/en/canada_fair_and_balanced/?cl=944357353&v=8398

#228 dangeresque2 on 02.17.11 at 7:11 pm

#183 Ottawa S – Only if you’re switching banks. As long as you stay with the same mortgage contract, the bank can’t come back and ask for more money part-way, even if the value of the property went underwater.

Which might be BS that my banker tells me – or might only be the practice at my bank and not at all banks?

You comments are patently untrue. When a mortgage term expires, the contract is done. You are without financing. The lender can make you whatever offer it wants. Or it can refuse to renew, and the balance is payable. — Garth

#229 Brian1 on 02.17.11 at 7:16 pm

I would like to apologize if anyone was offended by my remarks. You see, I made a rash rush to judgement earlier today. It may be that real estate agents did not wish to stand in line so they offered to pay someone else to take their place. At least, that could be their defense. I suppose I must suffer to wait a while longer.

#230 grantmi on 02.17.11 at 7:27 pm

Condo marketer Bob Rennie announces new pricing structure for Olympic Village

But before the public can be convinced those reductions are enough to move sales, Rennie will have to satisfy real estate agents, some of whom are angry at being excluded from a market test he conducted last week in which he sold 31 units. Rennie will hold a briefing session this afternoon for more than 1,000 real estate agents who will be given detailed information about the new prices.

http://bit.ly/eEzZNK

WOW!! A THOUSAND real estate agents in one place! Talk about a circle jerk???

#231 VICTORIA TEA PARTY on 02.17.11 at 7:28 pm

WISCONSIN , BURNABY A ROYAL PICKLE…

The Canadian public sector is ONE of the last of the insulated ones in the West. News out of Canada today relates that public sector pay hikes are twice what private sector workers get.

Career civil service jobs are without doubt, the last of the really “good” jobs, or careers here. Paid for by all, perks go to the minority of the work force that resides in the public sector.

But in the US the public sector is less appealing as the bad times there just keep on and on. Things are so grave that civil servants have been laid off in droves over the last two years.

But apparently NOT in Wisconsin where some civil servants are drawing the line. It is a line they may regret drawing. Teachers and other government workers staged their own “Day of Rage” as if to copy what’s going on in Bahrain, Egypt and Tunisia. The gall of those Wisconsin union weenies!

The roots of this protest is last November’s state elections that brought about a Republican-dominated government. The new governor promised to cut and hack and when legislation was tabled this week to carry out that promise, the public sector fur flew.

Even Democrat legislators have gone on strike to prevent the new restraint laws from being enacted.

Karl Denninger in his Market Ticker blog wrote this:

“Public unions in Wisconsin are protesting having to pay some of their insurance and pension costs out of their own pockets, like the rest of America does.

That’s fine. They’re entitled to protest. The Governor is entitled to fire them all. And he should do so. Right now.

There are millions of unemployed Americans. There is no shortage of people looking for work. Many of them are qualified to teach…Calling in sick when you’re not really sick is a lie. It is a violation of trust…fire all of the teachers who have called in sick but in fact are not sick.

The State is close to $4 billion in the hole. Pension funds are bankrupt and have been playing Ponzi for years. The game’s up. Same with health insurance. The costs cannot be covered any more at the escalation rate that is taking place.

It has to stop, here and now.”

Could such public law-breaking occur in Canada, should our governments decide to cut and hack? Possibly, but it will depend on the overall public sentiment.

Canadians are still relatively untouched by world economic events, where food price inflation is now out of control. That monster is at our door-step now. So we will just have to wait.

MORE DROSS

Also, today, Gallup, the polling people, reported that the unemployment rate in the US is officially back up to 10 percent because of two main reasons: work force participation is at historic lows because so many people, millions of them, have given up looking for any job; and, the underemployment rate is about 20 per cent.

You know when the trouble south of the line is truly out of hand when the Obama crew is talking about imposing head taxes on Canadians travelling to the US. That is like some over-spent consumer rummaging through the furniture looking for pennies to pay down the HELOC.

It is a moveable catastrophe (no longer a moveable feast)down there in the engine room of the Good Ship “USS American Empire.”

REAL ESTATE FANTASIES CONTINUE UNSATED

Meanwhile, as other national economies implode, in Burnaby, legions of the crainially-challenged line up to buy a steel and plastic chicken coop on the 20th floor of a building that looks more like a gilded water tower.

What is this all about? How can such real estate insanity go on and on, interminably it seems?

I have a feeling that even if the Bank of Canada really socks it to us, with rate hikes this year, that the real estate industry will just keep on keeping on. Perhaps they have the secret to their success, the location of these legions of property wannabes?

Wisconsin teachers, penny-trollers, real estate robots.

From an anthropological stand-point there are some bucks to be made here for sure, providing there are enough government grants!

Studying the habits of hobbits could possibly make it onto a TV show somewhere. But, then, the reality of the situation are pawn shops, maxed out credit, and “comfort” food. Lots of comfort food for lots of rainy days.

#232 mostMiserablePlaceon Earth on 02.17.11 at 7:33 pm

Oly condos selling like hot cakes.

The cheapest still on the market is $489,000, which gets the owner 574 square feet overlooking the plaza

HaHa! My bathroom is bigger than that.

Poor Bob Rennie, all these years hustling people and he’s still “taken aback”
He’s never seen prospective buyers line up for five days before and was taken aback by how much interest was shown in the project (2007)

#233 CalgaryRocks on 02.17.11 at 7:37 pm

#204 wild at heart and nuts

“Public sector workers tend to be more educated and have more qualifications and do more complicated jobs than many private sector workers.”

Well when I was doing IT consulting for Ottawa in the mid 90s all the complex government projects were outsourced to private firms.

Thank you Canadian taxpayers for paying me 400$/day 2 years out of school. Yey!

#234 Canayjun on 02.17.11 at 7:49 pm

A better title for the blog would be:

“Lieing is the new black.”

#235 Irrational Exuberance on 02.17.11 at 7:49 pm

So..I got a call today from Global BC!! I guess someone in the newsroom found my e-mail to them worthwhile to follow up on.

He called this morning and asked that I forward him a copy of the Craigslist ad. I copied it from this site and another and forwarded to him as asked. Got a call back this afternoon. Here is a quick synopsis of what he said:

He did call Bosa to see if they had placed the ad on Craigslist. They say they categorically did not and would willing to say so on the air.

The Global TV rep figures that it was likely a RE agent that was trying to “block the market”. He even said that he could understand as these condos are a great buy! The 1st 80units get a “teaser rate” of 1.9% financing. (OMFG)!!!

As an aside, they were not informed of the line-up by anyone involved with the project. It was a fellow journalist who contacted them after seeing a large line-up forming outside the presentation centre. Their main reason for sending a van was to find out why sheeple were lining up in the freezing cold and rain. Perhaps because the promise of cold, hard cash and warm bevvies lured them there…

He said that they are planning to return on Saturday and will ask if anyone is being paid to be in line. Of course come Saturday there will be no paid “stand ins” as that is the actual opening day.

As many of you know they have now issued numbers to those who were waiting, and the lineup is now no more.

So… it’s interesting to see that they were concerned enough to actually contact me and follow up with the developer. He did say that they feel they were not “duped” as I had put it in my message. Of course this all leads to the burning question… if Bosa did not place the Craigslist ad, who did?

#236 S.B. on 02.17.11 at 7:57 pm

Until now, condominiums in Toronto have been marketed like cars or cigarettes, full of glitz and tits. Meet the new generation of web-savvy marketers, entrepreneurs and real estate agents who are cutting through the hype and changing the way we buy

BY David Sax February 17, 2011 01:02

Related reading:
Toronto’s best and worst condos—as selected by David Fleming, real estate broker and owner
of TorontoRealtyBlog.com

On Jan. 10, just before noon, more than 100 real estate brokers descended on the corner of The Esplanade and Scott Street. They queued on a snow-and-ice crusted red carpet, shrugging their shoulders against the stiff breeze, chatting in Cantonese, Mandarin, Farsi, Arabic, Korean and even, occasionally, English.

http://www.eyeweekly.com/city/features/article/110926

#237 Sid on 02.17.11 at 8:05 pm

213,
they have been talking about this upgrader for years. There is always something like this driving the market in Edmonton. The oil prices and low unemployment did not stop the crash back in 07-08. The market is driven by consumer sentiment, and once it turns, nothing, not even jobs can turn it around.

#238 john m on 02.17.11 at 8:08 pm

Thanks Garth for your honesty i come to this site every morning to find out what REALLY is going on in Canada…..as i read some of the posts i am totally blown away by how many gullible people we have in our wonderful country……really ..what kind of a bleeding heart could swallow this kind of fraud and make excuses for their actions…”if it walks like a duck and looks like a duck it most likely is a duck” :-)

#239 S.B. on 02.17.11 at 8:26 pm

“Some 18,000 new condominium units were completed in the Greater Toronto Area last year, according to the market research firm Urbanation. Another 17,000 will pop up this year, and 20,000 will rise next year—meaning Toronto will have more condo units for sale than any other city on the continent. Despite sluggish employment in the province and the threat of rising interest rates, condo sales are hitting a near-record pace, up 20 per cent in 2010 from 2009. ”

Demand, meet Supply!!

#240 ballingsford on 02.17.11 at 8:36 pm

Global News Statement:

We are in the Communications industry to provide the people of Canada with unbiased and unswerving broadcasts. You the Viewers are ultimately our bosses!
***************

Global News Statement amendment later:

We are NOT in the Communications industry to provide the people of Canada with unbiased and unswerving broadcasts. You the REAL ESTATE CARTELS are ultimately our bosses!
*******************

This document was not altered after sign-off. Our CEO reserves the right to further alter anything previously agreed to in writing.

#241 jess on 02.17.11 at 8:40 pm

Take a book of just 13 pages, written by a relatively obscure 93-year-old man, which contains no sex, no jokes, no fine writing and no startlingly original message. A publishing disaster? No, a publishing phenomenon.

The little red book that swept France

The latest call to (non-violent) arms has turned a 93-year-old war hero into a publishing phenomenon. John Lichfield reports

Monday, 3 January 2011
Indignez vous! (Cry out!), a slim pamphlet by a wartime French resistance hero, Stéphane Hessel, is smashing all publishing records in France. The book urges the French, and everyone else, to recapture the wartime spirit of resistance to the Nazis by rejecting the “insolent, selfish” power of money and markets and by defending the social “values of modern democracy”.

——-

“private label” securitization
FCIC’s report is clear : it was the private sector that led usa into the financial crisis by making massive subprime bets and then using complex derivatives deals to magnify the downside risks.
========================

Feb. 17 (Bloomberg) — Jamie Dimon, chief executive officer of JPMorgan Chase & Co., has harsh words for Fannie Mae and Freddie Mac. They are “the biggest disasters of all time,” Dimon told the Financial Crisis Inquiry Commission last fall, according to his just-released interview.
=
New York’s U.S. Bankruptcy Court Rules MERS’s Business Model Is Illegal
L. Randall Wray Feb 17, 2011 2:19PM
http://www.roubini.com/us-monitor/260513/new_york_s_u_s__bankruptcy_court_rules_mers_s_business_model_is_illegal

http://www.scribd.com/doc/48827432/In-Re-Agard-48750818-US-Bankruptcy-Court-New-York-Memorandum-Decision

#242 charles on 02.17.11 at 8:46 pm

With the permission of our gentle host I submit this petition coordinated by “avaaz” for benefit of all Canadians. Help stop the lies from getting worse.

“In 48 hours, public protections against false news coverage could be destroyed. The CRTC may pass a huge loophole to the “fair and balanced” rule that currently prevents media from outright lying to the public.
We can stop this — last year, we prevented Harper cronies from pressing the CRTC to fund “Fox News North” with public money. Now, we have just two days to raise another national outcry to save the standards of Canadian journalism, and our democracy. Sign the petition below, and tell everyone:”
http://www.avaaz.org/en/canada_fair_and_balanced/?cl=944420146&v=8398

#243 Utopia on 02.17.11 at 8:53 pm

#202 Triplenet

“Should overweight children be served fast food or be banned from the restaurant premises?
Which action would be illegal and/or unethical”?

———————————————————-

Well you have a point. At least when you go into a Mcdonalds though you get full disclosure of what you are eating if you so choose to enquire. They used to publish the details on the backs of their paper place mats.

Not so in cases of faked line-ups where disclosure could potentially have a big impact on actual buyers committing to purchases of hundreds of thousands of dollars and decades of debt.

Maybe the real estate industry should be more regulated in this country. Look at the kinds of fines and penalties available to lawmakers should stock brokers, advisors and those who peddle securities step out of line (and get caught).

In any case, someone else earlier today made the observation that we are all jumping to conclusions here as we do not know if Bosa or the selling agents are in fact behind the Craigslist ad. We only assume they are.

I would be curious to know what was stated in the press release that went out to all the media prior to sales day, and who wrote it.

Maybe it is time for the media to do a few stories on themselves and start rooting out the doubts many of us now harbour that lead us to question their credibility.

We can all appreciate they are struggling against the free news sources and the internet which has destroyed many a good outlet already as revenues have been strangled off. On that point, I sympathize with them and worry too.

Are we headed for a time when only a handful of quality news outlets like the Globe and Mail for example provide the majority of the nations content and stories while we all struggle to sort through rafts of ambiguous and questionable news found on the internet?

Much of what is out there is unverified trash, conspiracy theory and poorly edited commercial riddled tripe that is not subject to scrutiny by any oversight whatsoever.

We need good news sources. It is a sad day when we see the larger ones corrupted by financial interests.

I hope we are wrong about Global Vancouver.

#244 Love this Blog on 02.17.11 at 8:55 pm

#222 Wetcoaster

Too Frickin’ funny!!
LMAO
seriously RealPaul, your theme is getting very old….it always was lame. If the Gov jobs are so good……….APPLY!!!!

#245 JB on 02.17.11 at 8:58 pm

Saskabush is DOUBLING the national sales average right now (based on a seasonally adjusted average?! wtf is that anyways?)…. It’s a flippin’ joke how little you get here for $300,000 when that would have bought you the sweetest pad in town only four short years ago…. I cannot help but have the feeling Hongcouver, Cherana and other big markets may correct and we’ll still keep on chugging… You know the same way we stayed cheap for so long while Edmonton and Calgary were full boom…

I’ve finally convinced my fiance to go back to school for two years and we’ll buy once she’s out… She basically told me “If your wrong and it’s 20% higher in 2013… I’m leaving your sorry ass for someone who has a house…”

And you’re actually going to marry her? — Garth

#246 mid-Ontario on 02.17.11 at 9:09 pm

#111 Mr Young

#247 Moneta on 02.17.11 at 9:10 pm

#183 Ottawa S – Only if you’re switching banks. As long as you stay with the same mortgage contract, the bank can’t come back and ask for more money part-way, even if the value of the property went underwater.

Which might be BS that my banker tells me – or might only be the practice at my bank and not at all banks?

You comments are patently untrue. When a mortgage term expires, the contract is done. You are without financing. The lender can make you whatever offer it wants. Or it can refuse to renew, and the balance is payable. — Garth

—————
Mortgage Renewal:

http://www.fcac-acfc.gc.ca/eng/publications/MortgageLoan/RRMortgage/RRMortgage-2-eng.asp

“If your lender decides not to renew your mortgage, they must notify you at least 21 days before the end of your term.”

#248 sue on 02.17.11 at 9:12 pm

JB Your fiance represents the dark side of women…run…now.

#249 Utopia on 02.17.11 at 9:13 pm

#226 Paul on 02.17.11 at 6:51 pm
Well if you are all really worried about false news casts then I suggest you go to this link right away!

http://www.avaaz.org/en/canada_fair_and_balanced/?cl=944357353&v=8398

———————————————————-

Thank you Paul. Linked and signed on. The objection is valid and needs as much attention as possible. hopefully CRTC gets the message.

#250 mid-Ontario on 02.17.11 at 9:14 pm

#111 Mr Young
What makes this robbery even more horrific is that the $750,000 of silver taken last week would be worth over $800,000 this week as silver is skyrocketing!

Buy silver now or be left behind…why, isn’t that what RE agents say too???

Just think how much richer you would be every passing day if your house was made of solid silver in crazy Vancouver.

#251 Moneta on 02.17.11 at 9:15 pm

“Should overweight children be served fast food or be banned from the restaurant premises?
Which action would be illegal and/or unethical”?
———-
Who is the arbiter of overweight?

According to my standards, when I look at my school pictures in grade school, there are only a couple of kids with a weight issue.

When I look at my children’s school pics, there are only a couple of children without a weight issue.

#252 Nostradamus Le Mad Vlad on 02.17.11 at 9:20 pm


#178 Herb on 02.16.11 at 6:17 pm — “dangling participle” can be further expanded to 2:27 clip Hello boys. Diamonds in the rough? A pair of aces in the hole?!

#195 Debtfree — “Why should we pay to get groped and they get groped for free.”

Please fondle my bum? Actually, the answer (to me) is somewhat clearer — implementation of the NAU and SPP.
*
#230 VICTORIA TEA PARTY — Wisconsin “Check out the sign at 20 seconds!” :-D wrh.com. Clip is noisy with protestors shouting. Egypt’s resistance happening here? Except the Egyptians don’t really know they have changed from the right to the left hand.

3:24 clip Geither’s open to have his knickers tied in a knot around his thick head.

Map of foreclosures in US.

Generating Electricity and Iran – Turkey beneficial ties.

Genocide in Canada Download the PDF file. Canada the Good? Not so much.

Major Meltdown in 2012? Which gives the WH plenty of time to bring in martial law prior to the date.

The Ripple Effect Like dominoes, a crash / melt cannot be prevented. This incl. countries, but all anyone has to do is REMOVE THE ELITE.

Rising Prices “Remember, if you are not willing to pay twice as much money for half as much product, then the terrorists will have won!” — Official White Horse Souse”. wrh.com.

Pakistan Chaos caused by Ssshhhhhh . . . U-No-Who. “The Pakistani government has been put in a very precarious position on this issue by the US’s demands.” wrh.com. BTW, Obama is continuing with the drone attacks in Pakistan, yet the US wants their man freed?

Greece EU and IMF are fully responsible by demanding privatization. That’s what is coming here as well.

Giant Flare We got lucky. “So powerful was the energy pulse that it bounced off the Moon and lit up the Earth’s atmosphere, Nasa said.”

US$17 Trillion “But do we really have to pay Mr. Rothschild and Mr. Rockefeller and Mr. Soros etc …?”

Wall St. in jail? “The very wealthy in this country get off with not even a wrist slap. Desperately poor people attempting to steal a loaf of bread to quiet the gnawing hunger of a child may get years in prison.” wrh.com.

Govts. Suck Big Brother screws up again.

#253 GTAInsider on 02.17.11 at 9:38 pm

Thanks, SE Asians and Asians !!! I have a house for sale too..come pay to buy my overpriced home !!! I am willing to sell my 400K home for 1.5 million !!!

#254 john m on 02.17.11 at 9:42 pm

Outright Lies and Fraud surround us..do not underestimate the power of “H” and company……just one example—He attempted to bribe an MP to overthrow the government (in fact he even admitted it and it was recorded in front of an eye witness) ..remember Chuck Cadman (may he rest in peace)………the RCMP did not find grounds to investigate it( personally i can not think of any more serious offense by a public servant)………curiously he appointed his own man to head the RCMP (first time in history a civilian was head of the RCMP)..look how that turned out…whenever there is a scandal against the Harper government curiously enough there is always a poll result in the news showing them rising in the polls………its all a fraud IMO..and never underestimate the power of the oil companies……

#255 john m on 02.17.11 at 9:45 pm

And you’re actually going to marry her? — Garth……..LMAO :-)

#256 prairie gal on 02.17.11 at 9:54 pm

As a public servant, I pay into my own pension and other contributions. My salary is slightly lower to several times lower than the people I interact with on a daily basis, depending on the industry.

The private sector has a far simpler business model than the public sector. The pursuit of profit is unequivocal in the private sector. In contrast, priorities for the public sector are far more diverse and change with a change in government. This is at the policy development level.

#257 Another Albertan on 02.17.11 at 10:01 pm

#224/Moneta:

Thank you, my sister-in-arms, for opening the door to my segway.

I had the most obtuse experience this morning. The exact analog to your slice of commentary.

Here we go…

I get a call this morning. It’s from the cadre of engineers working for me. Since I’m the final arbiter of their combined analysis, I need to grab a hot drink, get in the elevator, and go visit them. We had an issue with a piece of equipment they were specifying.

I arrive and am presented with a deluge of information, including multiple iterations from extremely hardcore simulation software that cranks out results from equations using calculus with complex numbers. Needless to say, the problem’s been solved, but not after they tore apart the problem six ways from Sunday, including building a timing diagram whose intervals are in milliseconds. These guys (and gal) are good. They won’t specify anything without knowing everything about it, including a serial number that will allow them to ultimately trace back to the tech who actually built the part. Hard core analytics across the board.

I have no idea how it happened, but someone brought up Calgary real estate… specifically condos. Seems 3 of the 6 I’m talking with have a rental condo as an investment. They’re all excited that the price of oil is going to stoke the Alberta economy and that the condos will keep going up in value… “because real estate always goes up”. The collective group nod occurs.

I was literally at a loss for words (and that happens very rarely). I’m looking at some of the most analytical people I’ve ever dealt with… people who, by their own admission, will only use highly-qualified data in order to make their professional decisions.

So I quizzed them on things like cap rates, interest rate risk, etc. All I got was a set of blank stares, then some slightly confused looks that screamed “COGNITIVE DISSONANCE”.

Ironic juxtaposition.

Everyone else’s mileage may vary.

#258 Young Patricia Kluge on 02.17.11 at 10:04 pm

The truly humorous irony is that the Lie-berals runaway immigration policies have backfired. The last remaining vestiges of profit in Canada’s larger centers are primarily based on exploitation of the coloreds through inflated real estate. And the those same heathen are far more politically conservative than the Lie-berals ever expected.

The ‘coloreds’? What trashy decade did you crawl out of? Now crawl back. — Garth

#259 Jeff Smith on 02.17.11 at 10:27 pm

I know a guy with an MBA from Schulich, who actually believes we are different here. He currently owns two properties, townhouses. He actually lined up at the Mahammy sales office exactly as described above in this blog. So as the line shortens and he nears the realturd knobs at the desk,…. suddenly, the guy who lined up in front of him offered him the spot, and that guy left and flew out of there like a bat out of some hot place. Does that sound like a plant(no not the tree type) standing in front of him the whole time.

This MBA chap makes good money though. MBAs make decent 6-figures incomes in this economy. But I wonder how smart financially they really are, seeing how this guy fall for the simplest of financial setup. I wouldn’t hire an MBA like that to work for me though. I mean, common sense is a great determining intellectual quality.

I spoke with him recently, advising him (once again, 3rd time?) to sell one of the piece. He says even if it corrects in Canada, how low can it go? So I shut the hell up. I mean, how can you pissed off your own brother again and again. But its hard watching it though. Oh well, hope he will always make 6pieces, that’s the only way to survive with multiple properties and F’s gift from heaven of 35birthdays. Hey what will F offer next?

#260 Canayjun on 02.17.11 at 10:30 pm

GTAInsider

You aren’t really that far off the mark. Just after we bought our first house in 1987 (a year or two later), a neighbor told us someone a block away had sold their house for $300,000. All the houses in the area were worth about $135,000 when we bought in. So a year or two later, perhaps 20 months, BAM more than double. Why? Because Asians were buying up A LOT of real estate in the Lower Mainland, and they didn’t know what anything was worth. They didn’t even know they didn’t have to pay asking price. So they didn’t even try to make an offer. This went on for a few months, but eventually the Hong Kong buyers figured out they were paying too much and the onslaught of full price sales was quickly over.

Because people heard buyers from Hong Kong were paying ridiculously high prices, there was a rush of listings to the market. So after an initial bidding up process where houses in our neighborhood went from $135,000 to $300,000 in less than two years, the flood of listings ensured the prices would drop. And drop they did. By the time we sold, the price of houses in our neighborhood dropped to $260,000. So we sold just on the other side of the peak.

You see there is an initial bidding up process, which attracts listings. The listings glut leads to falling prices. Of course this all occurred over time.

The first neighbor to sell, sold for $300,000 and was able to invest his $300,000 at 18%. He had it made, because interest rates went from 12% to 18% in what seemed like the blink of an eye.

#261 Alex on 02.17.11 at 10:35 pm

#234 Irrational Exuberance: Interesting. Global did not contact me, either via email or phone. Seems like a rather selective call-back system.

But your post leaves me with some questions. 1) As you said, who placed the ad? 2) Who is placing other, similar ads in the YVR area? 3) Do you/we REALLY believe any of the explanation after last week’s helicopter BS and years of this crap? 4) The most important question of all: HOW ON EARTH DOES A CONDO LINEUP RATE A 2-MINUTE SPOT ON THE EVENING NEWS?

#262 Gastown Mike on 02.17.11 at 10:46 pm

first time poster long time reader :)

I was having lunch today in downtown Vancouver in the heart of the financial core and over heard the table next to me talking about how real estate is different here, with a twist.
They were firm believers that weathly offshore money was pouring in and that you couldn’t do wrong buying real estate. And that the former olympic village is going to be a great investment!

The twist? They thought revolutions in the middle east would be bringing in even more rich people. I guess not so much a twist but I think it’s pretty delusional.
Strange times we live in…

#263 tkid on 02.17.11 at 10:49 pm

#165 Carlyle

Yeah, I was under the gun when I was looking to rent. $1250 was my maximum and that had to include parking. I compromised by finding a place off of a main streetcar line that runs 24/7, but was also close to a highway.

Can I recommend you search not only downtown, but other areas with their own ‘downtowns’ that have streetcar service? In particular I’m thinking of Lakeshore Blvd W, between Royal York Rd and Palace Pier Ct. There are some fabulous shops on Lakeshore in that area – if my landlady asks for an unreasonble raise in rent next year I will be looking in that area.

The rents that are being asked for in the downtown core are just insane.

#264 FerrisWheel on 02.17.11 at 10:49 pm

Well said #11 Dazed and Confused

#265 Moneta on 02.17.11 at 10:49 pm

Another Albertan on 02.17.11 at 10:01 pm
———-
I read your recommendation The logic of failure. Right up my alley, and I just finished On Being Certain, written by Robert Burton a neurologist 5 minutes ago. He explains the biology behind what you just experienced!

#266 Hoof Hearted on 02.17.11 at 10:52 pm

Hong Kong curbing of house flipping coincides with local real estate boom

http://www.bclocalnews.com/richmond_southdelta/richmondreview/news/116348674.html#

It’s a puzzle that’s left many realtors scratching their heads: What triggered the local real estate boom last November that’s seen house prices jump hundreds of thousands of dollars in just three months?

The Ming Pao Daily, in a joint investigation with The Richmond Review, has learned that the local boom coincided with the introduction in Hong Kong of a special duty intended to curb speculation in residential properties.

The 15-per-cent duty on properties resold within 24 months of acquisition was introduced on Nov. 19 by the government of Hong Kong.

According to the Ming Pao, property flipping is a very common practice in Hong Kong and has contributed to numerous housing bubbles over the last decade.

“The current property boom is fuelled by a heavy element of speculative activities, as suggested by the 32 per cent surge in the number of resales within 24 months in the first nine months of 2010, as compared with the same period in 2009,” the Hong Kong government stated in a press release.

#267 trinotuta on 02.17.11 at 10:54 pm

to #244 JB

Or she could convince you to buy…
http://www.youtube.com/watch?v=Ubsd-tWYmZw

#268 that is amazing on 02.17.11 at 10:54 pm

to #256 Another Albertan, thanks so much for your post. I work with analysts and engineers as well (amongst other folks with many diverse skill sets) and it is truly amazing how people whose living requires them to exercise their critical faculties can buy at the top of a cycle and feel smug about it.

I think it’s called greed (with a dollop of wishful thinking)

#269 The door is over there on 02.17.11 at 10:56 pm

Hey #257 Young Patricia Kluge, don’t let it hit you on the way out.

#270 Moneta on 02.17.11 at 11:15 pm

Another Albertan on 02.17.11 at 10:01 pm
————–
I had a boss who came barging into my office with his risk report: “Your fund is risky”.

Me: “Of course it is, it’s sectoral”

Him: “But look at these numbers”

Me: “That report is useless because all my stocks are highly correlated to eachother and anyway your report would have told me to go market weight in Nortel when it was peaking.”

Him: “The consultants won’t like this. Reduce the risk.”

Me: “They’re actuaries, they should understand stats.”

Him: “I don’t care, fix the problem.”

It’s amazing what is being used by whom in finance. Managers with Math 101 are using complex models without understanding what they are dealing with. And Math PhDs are only too happy to build some models for hefty paychecks.

Now imagine how math has been applied to the banks’ loans portfolios. They are convinced they’ve found the holy grail with they VaR models… all roads lead to residential real estate. LOL.

#271 kilby on 02.18.11 at 12:17 am

I really am disappointed in Global BC’s coverage of real estate, there was more tonight about the Athlete’s village with the promoter saying that they had already “got offers” on 31 units. His body English says that he is very uncertain how things will go. In their defense they had a real estate lawyer on after saying that the City of Vancouver has signed off all responsibility for these buildings, he went on to say that construction this complicated can have problems down the road and if nobody will take responsibility it could be VERY expensive for the strata owners.

#272 groundzeropat on 02.18.11 at 12:53 am

http://bearmountain.ca/Home/Live/Properties.aspx

Victoria condos down 65% but that’s not news so the media won’t report it.

#273 Captain Jack on 02.18.11 at 5:22 am

http://www.avaaz.org/en/canada_fair_and_balanced/?cl=944288402&v=8398very

Here is a link to sign a petition. The government is considering loosening the regulations of journalism to allow them to air what they want…without being completely truthful…kinda like they do now anyways…but if the regulations are removed, then can you imagine the shit we will have to listen to.

#274 theletterM on 02.18.11 at 1:58 pm

#1 Alex on 02.16.11 at 11:22 pm

Love the letter, well done.

I’d suggest writing to the CRTC but they have nothing to do with anything according to their disclaimers.

#275 Atb on 02.18.11 at 2:00 pm

My wife and I just landed in Van from the US a year ago and were initially impressed by the appearance of order and morality here as opposed to back home. I find this story quite unbelievable, do not think have ever heard anything like this happpen in the US, furthermore believe that while quite biased politically, for the most part news organizations in the US do a decent job at chequing their sources for authenticity. Really seems like the news organizations here in Canada are nothing more than prostitutes at the service of a seriously morally corrupted industry. Really pathetic.

#276 Toddi on 02.18.11 at 8:30 pm

Wow. Great article. Great comments.
I would like to encourage all of the readers of this blog who are shocked at the manipulation by the mainstream media to go forward in their studies.

Extrapolate this line up story to EVERYTHING you see on the nightly news and you will be closer to reality.

Start here for a recent example…

http://www.youtube.com/watch?v=lwo0Iyrh1Zk