Parents

Joanna is 34. Says she’s happy she found us.

“Just wanted to compliment you on the great blog. I have always felt a bit behind, financially, because I graduated into a not so great job market. And I do feel pressure to buy a house or condo or something. But my partner and I have both come to realize that the whole ‘buy a house or else you are a loser!’ thing is pretty much the financial decision of drinking the kool aid. We both have family members who have more house than they can afford, and they are slaves to it. They are constantly preoccupied by money, can’t go out, can’t enjoy life. And us poor renters? We’re making half what my lawyer brother makes, but we’re putting 10% of take-home into an RRSP and a vacation fund and we can go to restaurants or movies or whatever pretty much whenever we want to. Is life so bad? Would ‘owning property’ and ‘building equity’ really make things better for us? I don’t think they would. I think that if we did own property, we would not have the money for the RRSP and the savings and the restaurants. That monthly saving is my slush fund so that in the next few years I can go on maternity leave and have a baby. I would rather have the baby than the house.”

Not a day passes on this pathetic blog that the warfare between Boomers and their kids (and kids’ kids) isn’t in full flower. No wonder. Boomers sprouted in a time of economic expansion, inflation and the rapid escalation of asset values. All they needed to do (they thought) was buy a house and spend the rest on jeans, Chianti and Volvos.

As one of the juvenile blog dogs put it so eloquently: “The baby boomers got all their wealth just by sitting in their living room. . . The only way my f***king generation can ever hope to afford a home is unless we all become CVEO’s of the fricken company. Where’s the incentive to work? I’m a slave to baby boomers.”

But that’s now hit a wall. This is the age of deleveraging, when more wealth goes into paying down debt than expanding the economy. Companies got efficient and profitable by cleaning up their balance sheets and trashing workers. That means investors (usually half-dead old people) get the benefit while workers (mostly their children) get laid off, dead-ended and downsized. And no economic expansion means no asset inflation. Houses won’t continue to escalate in price, no matter where mortgage rates sit.

Meanwhile those poor Gen Xers have been suckered into real estate horniness at about the worst time in a half century. Buying now, with prices extreme, brings the greatest inter-generational transfers of wealth. But in the wrong direction. From the young to the old. I’d be pissed, too.

However, the tables will be turning. Keep your pants on.

Thirty-two per cent of the Canadian population is made up of Boomers. Every day a little more than 1,000 of them turn 65. Almost as many retire. Daily. Seven of every ten have no corporate pensions and we know the average 55-year-old’s RSP has enough in it to last about ten years. At the same time circumstantial information suggests most of them have investments in mutual funds, which means their fund salesguys have made more money than them. And 80% of all TFSA funds in Canada are rotting in savings accounts and GICs. In short, an astonishing number of these people (and there are 9,000,000 Boomers in Canada) will be running out of income decades before they run out of life.

What about government pensions, you ask? The median CPP payment is $537 a month and OAS averages $507. That’s $12,000 a year. Tell me how far that goes with gas at $1.39 a litre (my fill-up this morning). As I’ve said before, it’s impossible to maintain a house in any major city, living on the public dole. Those pensions were only ever meant to replace one third of retirement income, and yet millions of financially brain-dead Boomers are steaming into their adult diaper years still thinking as long as they have a house, a pulse and a vial, they’ll be fine.

There’s only one conclusion. Lots of people will have little option but to sell their houses so they can downsize or rent and invest the difference for income. After all, energy costs and property taxes alone could probably lease a fine condo. Why suffer?

As far as I can tell, there could be about 2.6 million Boomer houses coming on to the market over the next 15 years. So just imagine what that’s going to do for property values, happening (as it will) as interest rates normalize to levels which will make a 2.99 Special look like mortgage porn.

Not hard to see where this is heading, is it?

If you’re a Boomer, don’t wait until the market is glutted with suburban McMansions. Sell that sucker now, especially if you’re in one of those markets with low inventory and a supply of fools. But if you’re a house-horny young person, zip it. Not the time to jump in. Sales erosion will soon become price reductions, and by this time next year not only will mortgages cost more, but another 300,000 wrinkly ex-hippies will be wondering why their financial security left with their hormones.

So you can get a fat mortgage, buy a house and finance a Boomer with an adulthood of debt paying off something which will cost less soon. Or not.

Gee. That was hard.

.

220 comments ↓

#1 Ayn Rand on 03.12.12 at 9:51 pm

Garth, find cheaper gas….Port Perry $123.9 litre. Even better in Lindsay.

#2 T.O. Bubble Boy on 03.12.12 at 9:51 pm

Those For Sale (now forecolsure) signs on Vancouver Island have been there for months, if not 1-2 years.

Good to see the MSM keeping up! They’ll report the bubble bursting in about 2015, when it’s happening right now.

#3 gmc on 03.12.12 at 9:52 pm

first

#4 Cash is King on 03.12.12 at 9:53 pm

1.39 a litre?? Would an OAS cheque be enough to fill a hummer?

I guess their giving gas away in windsor at $1.27.

#5 Chaddywack on 03.12.12 at 9:55 pm

Wow. Mainstream Media in BC showing that kind of story. Their sponsors won’t be happy :)

#6 The Thing in the Basement on 03.12.12 at 9:57 pm

“the average 55-year-old’s RSP has enough in it to last
about ten years”.

Well that’s not so bad is it? At 55 you’ve kicked the moochin’ kids out, got the mortgage paid, make a decent income until you retire and you can save,save save…..

#7 Puzni on 03.12.12 at 10:01 pm

So well written, just like Joana’s letter to Garth I find myself in the same position. All my friends say real estate never goes down, you should buy while the prices have paused because come summer time it will be flying high again. My answer is if my mortgage+strata+property taxes = price of rent or just slightly over it then it makes sense otherwise I can’t afford it.
For those who read this blog I don’t have to tell you what housing costs in Vancouver. I also agree that down the road the boomer will be selling their houses and moving to cheaper areas where they can retire on the spread. Great write up Garth.

#8 seb on 03.12.12 at 10:01 pm

first

#9 T.O. Bubble Boy on 03.12.12 at 10:03 pm

Dumpy bungalows on sale in Toronto!

Take your pick:
$750k
$850k
or
$950k

#10 blase on 03.12.12 at 10:04 pm

Garth, what makes you so strong in your conviction that rates will normalize? What’s your time frame for this to happen?

Normal always happens. — Garth

#11 Aaron - Melbourne on 03.12.12 at 10:04 pm

Down-under:

http://theage.domain.com.au/real-estate-news/time-for-a-fair-go-on-stamp-duty-20120309-1unvu.html

Head of the cartel going in to bat for investors getting stamp duty reductions.

They’re doing a community service apparently!

#12 isabel on 03.12.12 at 10:04 pm

It’ll be perfect timing for my kids to buy in a decade in a decade or two

#13 Shane on 03.12.12 at 10:05 pm

Garth, stop buying the premium gas

Shane

#14 isabel on 03.12.12 at 10:06 pm

Montreal gas this weekend $1.44

#15 Mr. Lee on 03.12.12 at 10:06 pm

Just like balancing your investments, never live beyond your means. A pretty simple rule that is being re-discovered.

#16 Adviser on 03.12.12 at 10:07 pm

Garth, are you putting premium in the Humvee, or do you have another ride :) ?

That was mid-grade. Who can afford the good stuff? — Garth

#17 Viren on 03.12.12 at 10:07 pm

Look at this New York Times’ calculator that tells you whether renting or buying is better, based on a few values for the city you live in.

http://www.nytimes.com/interactive/business/buy-rent-calculator.html

It seems as though over the next 30 years, it’s definitely better to rent in Van, than to buy. The ‘Annual Home Price Change’ slider seems to be critical widget here.

#18 The Original Dave on 03.12.12 at 10:10 pm

Post #157 Amy from the last post, you said that Reinhardt and Rogoff’s book pointed to hyperinflation in the U.S . What book were you reading???

Where did they compare Zimbabwe to the U.S? I read the same book. Hundreds of pages of historical facts and statistics and none showed anything of the country with the world reserve currency ever defaulting on their debt. We saw many of those countries’ debt hit 86% of gdp during a contraction but never an event of hyperinflation. Get your facts straight.

The U.S is one of a handful of countries that has never hyperinflated – unless you count 1933 when they abandoned the gold standard. Countries like Zimbabwe, Greece, a lot of the south american countries etc. are considered serial defaulters and have never graduated from that status.

Countries like the U.S, Canada, Australia, Norway, New Zealand, Switzerland have never hyperinflated if I remember correctly.

If you’re talking about banking crisis’, well, those are still occurring in all economies and countries and there doesn’t seem to be a solution. Again though, banking crisis’ don’t turn into hyperinflations in countries that have a bond market that the global economy trusts.

Also, if you’re advocating a gold standard, reinhardt and rogoff give clear examples of inflation in the past even with a gold standard via debasement of the gold (shaving gold and adding other metals to the gold which is debasement and is inflationary).

I think you should read that book again missy.

#19 Min in Mission on 03.12.12 at 10:11 pm

Just recently checked the prices in the ‘hood. Haven’t checked for the last few weeks/months. One re-listed house has come back on the market for nearly 50k less than before. Price is still 1 1/2 time what I paid, only 6 years ago!

Excellent post today. So simple even a kid can understand it. Yet I can;t seem to get the idea through to my co-workers, or, my wife!

#20 Garth's Much More Handsome Brother Wayne Turner on 03.12.12 at 10:12 pm

“This is the age of deleveraging” -Garth
Even Carney thinks so. Time for the housing game to close shop

http://www.bankofcanada.ca/2011/12/speeches/growth-in-the-age-of-deleveraging/

#21 Sh on 03.12.12 at 10:13 pm

Hah Nanaimo! Home of rednecked, rubbernecked biker wannabie mid 60s cussin good ol boys. And they thought building a few nice homes meant they were cosmopolitan. When the chickens come home to roost all that will be left are the dope smoking rednecks driving big trucks too fast.

#22 Sebee on 03.12.12 at 10:15 pm

I read somewhere that it will take 10 years for US to deleverage the debt they piled on. They are five years into the 10 year prediction. Canadians have not even started.

#23 Amazed on 03.12.12 at 10:17 pm

I know first hand that the speculators are nervous but still cocky at the same time. I’ve been following this blog and msm for some time. Definitely very little info out there on stats. Mixed signals from the msm. Specs are in a rush to get their houses on the market ASAP. The potential for a down turn is in the air it’s just delayed again by the banks. I’m going to get Pre-approved just for fun :) should be interesting by the spring!

#24 MapleLeafsSuck on 03.12.12 at 10:20 pm

That was mid-grade. Who can afford the good stuff? — Garth
_____________________________________________

Feed the beast the goods. Otherwise, buy a Prius.

Give me horses, or give me death. — Garth

#25 TurnerNation on 03.12.12 at 10:22 pm

I’ve read a good analysis of newscasters these days. They wear heavy black eye makeup to appear scarier. Yes the shock and awe is meant for us. All them speak in strained, harsh tones, giving dire warnings and predictions. The war is against us, never forget.
Their want our reaction.

Below many online news stories, even yahoo I think, it says What’s your reaction. We’re not supposed to think. No. Only react. They know our buttons, our reaction. Everything about human nature is already known.

Brilliant markting minds control the puppet strings and write the speeches. Axis of evil, We know he has WMD! These are propaganda slogans delivered expressely for our consumption. Heck, even Bush Jr’s speech writer quit in disgust and spoke of his experiences. They know how we’ll react. It worked. Blank check, signed. Rights aletered/given up. Check.

Next up…well you just wait and see what they’ve got in store for us. Things will change yet again, overnight. No debate. Nude airport scanners. For 7 billion people. Done, overnight. No debate. 7 billion people affected by the alleged actions of one person! How’d they pull that off? We know he has WMD.

#26 Young Boomer on 03.12.12 at 10:23 pm

Timing is everything. Born in 1962 and 1964 my husband and I are young baby boomers – living in house #11 – having renovated and moved our way from house to house riding the housing boom. Our kids are now 22 and 19 and in university/college – had they been older we probably would have encouraged them to invest in a house a few years ago. Now we’ve been letting them know that buying a house is no longer an investment like everyone believed. Timing has saved them.

#27 Ogopogo on 03.12.12 at 10:23 pm

Garth wrote:

So you can get a fat mortgage, buy a house and finance a Boomer with an adulthood of debt paying off something which will cost less soon. Or not.

If Gen Xers are bitter now, imagine once RE values plummet. I have fellow Gen X friends who’ve HELOCked the hell of out of their homes to finance tropical cruises and home renos. That makes it so much easier for any shred of equity to be wiped off at the first sneeze of higher rates.

the problem with renos is that once you renovate one room every other room in the house looks like crap. So you move on to another room, and so on until you’ve blown tens of thousands.

#28 45north on 03.12.12 at 10:32 pm

Amazed: I’m going to get Pre-approved

I’ll guess $850,000

#29 Hardassi on 03.12.12 at 10:36 pm

Good blog, as usual. The part I don’t understand is when the logic jumps from the idiocy of the boomers to it being the fault of the boomers that younger generations are also house horny? Yeah, many boomers are going to be screwed by their RE ‘investments’. So are their kids.
But hey, their ‘kids’ are adults and perhaps should accept some responsibility for buying into the top of the market – I mean it’s not like we don’t have a few recent examples of what’s next: USA, Ireland, Iceland, Australia, etc., etc.

#30 H.A.M. on 03.12.12 at 10:38 pm

Can’t waiting for the correction/crash so that I can scoop up more Canadian RE for my family and friends.

#31 David on 03.12.12 at 10:39 pm

This situstion will not happen for boomers. Feds will open the door for millions of new immigrants. They can buy out all the boomer’s houses very easily and the price will go sky high.

This blog often leaves me gobsmacked. — Garth

#32 EV-Ottawa on 03.12.12 at 10:39 pm

I used to buy mid-grade gas. The last time I filled up was October 2011. Since then I’ve been driving an electric car (Nissan LEAF). My 1100-1200km per month now costs about $35 (per month) in hydro with delivery and taxes included. The $200 per month I’m saving by NOT buying gas is paying my mortgage faster. No oil changes to do either! EV’s are very, very efficient.

#33 not 1st on 03.12.12 at 10:39 pm

GenXers will get the shaft of all generations. Graduated into the early 90s recession, stuck with the tech bubble crash in 2000, downsized, right sized, glass ceiling-ed, rode hard by the boomer managers, handed another crash in 2008 and now that they got a foothold, they are told there assets are going to deflate. Nice gift.

#34 TurnerNation on 03.12.12 at 10:44 pm

Watched the video, and it’s too early for Vultching! What if F destroys mortgages in a few weeks’time?

I suspect Sunglasses on Head, Blackberry Wearing, Durango Driving Guy (now a working stiff-cum-real estate titian) will be all over these forclosures.

#35 Paully on 03.12.12 at 10:45 pm

This real estate market is making me crazy! We just sold our Willowdale condo, with multiple offers, for WAY more than we ever expected. Great! But now, we actually found a nice house in the neighbourhood to rent, that we really liked –That is not an easy feat. Most of the rentals in Willowdale are gross– but we lost out in a multiple offer situation, ON A RENTAL. Unbelievable!

#36 Pete in Barrie on 03.12.12 at 10:57 pm

Today I went to the bank where I hold some investments (not my mortgage) and the expert there was more concerned with encouraging me to switch my mortgage – and the pay the penalty for two years left – to get one from them for 2.99 over four years. I didn’t bite – I’m committed to my term and I will wait it out even though it is 1% more.

#37 Tim on 03.12.12 at 11:00 pm

A house in Nanaimo for $300K. Big deal. If you haven’t visited “Surrey by the sea” then you may not make it past the strip malls and the smelly pulp mill and the greasy bikers before heading up island to the nice towns, which, by the way aren’t suffering.

#38 eaglebay - Parksville on 03.12.12 at 11:02 pm

Beach girl is going to be all worked up over this picture.

#39 Frank on 03.12.12 at 11:02 pm

Doomers have been consistetly proven wrong, at least most of the time. Rates may not normalize anytime soon.

#40 Phil Indablanque on 03.12.12 at 11:02 pm

How can this be? $1.14/l on the way to work and $1.34 on the way home. Island living at it’s finest. Fortunately, I’m wise to their ways and filled up this morning.

#41 Ex-Cowtown on 03.12.12 at 11:03 pm

Had coffee with an American friend of mine today. His parents house in FL was $500k during the boom. They just sold it for $74K.

Yeah, that worked out well.

#42 Furst on 03.12.12 at 11:05 pm

Furst!!!

I haven’t posted here in a while and apologize but things have been busy. I do try to post here as often as I can to enrich the lives of the blog readers but sometimes life is hectic. Do you think I can just come up with these insightful posts, without proper thinking and due diligence? Quality takes time so I’ll only post when I can and have something of value to say. Your readers will understand that sometimes good things, such as my comments are worth the wait.

#43 The Thing in the Basement on 03.12.12 at 11:08 pm

36 Pete – check you mortgage terms carefully. You may be pleasantly surprised.

#44 John on 03.12.12 at 11:08 pm

Sales erosion will soon become price reductions, and by this time next year not only will mortgages cost more, but another 300,000 wrinkly ex-hippies will be wondering why their financial security left with their hormones. Garth – March 12, 2011
———————————————————
I think house prices will be same in a year as they are now, see ya in a year!

#45 John on 03.12.12 at 11:10 pm

Darn, I got the date off by a year,

#46 Don on 03.12.12 at 11:11 pm

@ not 1st

Couldn’t agree with you more, however, I and some of my closest Gen X friends saw this coming back in 2001. We went through all the events you noted and did not fall for the house will make you rich scheme. We should have bought and resold but most were not in a position at the time. There are like minded people in all generations, its just that Gen Boomer has more idiots per capita. I am a child of two boomers but they taught us well…meaning to think, reason, rationalize and that actions speak louder than words.

What’s about to happen is sad and people from all generations need to correct their thinking and follow those who speak the truth. Timing is everything – a principle that should be taught. While we are at it – economics, ethics should be compulsory classes for all students, young or old.

#47 John on 03.12.12 at 11:12 pm

How will I remember which of Garths postings he made his prediction on mortgages costing more , I know, I’ll flip through the posting pictures until I get to the one where I almost throw up again!

#48 TaxHaven on 03.12.12 at 11:14 pm

It’s a calculated gamble…every year I live in this (paid off) place, I save about $15,000 in rent, net of costs. I’m assuming the house “value” will decline over the next 10 years but my bet is IF I sell I’ll work out approximately even or better, net of currency depreciation.

…better than renting and investing the capital at these peanut artificial interest rates…

That’s not called investing. — Garth

#49 SophieZombie on 03.12.12 at 11:15 pm

My colleagues could not believe me when I told then I started shopping about a distress property sale in mid-Vancouver Island ( or foreclosure ), as a main shelter (we are a couple of professional, people don`t get why we wants to keep the ratio to 2 X our pre-tax income and did not buy a factory house with no land in a rich middle of no where development for half a million). Three-four years ago, foreclosures in Nanaimo were only the bottom of the market (think the house that looks a shed, next to a city nuisance property-motel, with major damages inside an outside and `”I will come back“ written in red on the wall with secrets compartments in the bathroom “); then there was the remote millions dollars acreage on islands only reachable by boat. Now, there is as much variability than MLS or Kijiji: there is foreclosure on McMansions, mid-mansions, in the North, South, Lake, sea view, mountains view; even some new houses, dirt lawn included.
There is actually 3 typical sellers right now, in Nanaimo (before foreclosure): I am trying to get more money to upgrade because I bought something to get into the market too small (dreaming); I am trying to sell for a price that will cover my HELOC, the RA commission and other fee for an inflated price (likely a majority of sellers and dreaming); I am trying to survive before foreclosure and I can t do anything because I bought at 0-40 or did a 5-35 with a HELOC. Boxing day is started, but the best sales are in February.
Unbuttoned, but still with pants on !

#50 T.O. Bubble Boy on 03.12.12 at 11:17 pm

This just in – Real Estate President says Real Estate is a good investment (from BNN today):
http://money.ca.msn.com/video/?cp-documentid=7148b832-c009-4fbf-b965-c1533ab2a62f

Best Quote/Infographic: “Since January 2007, Condos are up 55%, TSX down 4.7%”
(so, obviously this trend will continue indefinitely)

Ask someone in Florida circa 2005-2006 how those kind of stats helped them achieve financial riches.

#51 Extron on 03.12.12 at 11:18 pm

Great post Mr Turner
I would like to get a hold of Richard Mawer,the fellow at 1:10 in the video. If he is successful at flipping foreclosures I would like to sign up for his up coming nation wide seminars on Real Estate with the sub heading “Investments Yesterday I couldn’t Spell It, Now I Are One,”

#52 Snowboid on 03.12.12 at 11:23 pm

#32 EV-Ottawa on 03.12.12 at 10:39 pm…

Great idea for short hauls, but travel outside of the city wouldn’t be practical – by my reckoning about 19 days from the Okanagan to Phoenix.

BTW, midgrade (assuming C$ at par) has crept up to $ 1.02 as of today in Phoenix.

#53 NYCer on 03.12.12 at 11:24 pm

I called my bank to confirm the correct CRA account to pay for my filing my taxes. He looked at my account and tried to offer me things to do with my money, like GICs and a mortgage approval in case I was shopping because I have a lot in my bank. I said no thank you because he reminded me I had to close a couple of accounts there that I no longer used.

#54 Booyaaa on 03.12.12 at 11:24 pm

Hey Garth, I’m one of those Gen Xers who after many years of University accepted a position within the public service (healthcare). I often see coworkers who are unknowingly infected by the real estate bug, I’m not buying at these prices and I like having the mobility to move anywhere.

My question is about the state and future of public service pensions. My decion to join the public was made primarily because of the DB pension (in private sector annual earnings are 20% greater but poor DC plan). I work in a defecit ridden maritime province, I welcome pension reform, but worry that in 30+ years my pension fund will be insolvent due to many factors but not the least of which would be excessive boomer liabilities! From what I can determine the fund is currently 80% funded. What do you see as the future of Public sector pensions?

I see danger. Hope you have a Plan B. — Garth

#55 Smoking Man on 03.12.12 at 11:25 pm

Darn I hate to bust bubble heads bubbles, but. GTA prices are going one way, and one way only, and that s UP

How can this be look at the Chart the great On put on display yesterday.

Well look at this chart, forcast for population growth in GTA.
Where they going to live tents.

In the next 10 years Posative population growth will be an extra 4 million tax farm slaves.

See for yourself. My kids are screwed

http://www.fin.gov.on.ca/en/economy/demographics/projections/

#56 xyz on 03.12.12 at 11:26 pm

Serenade is giving away free NEW cars with their *supposedly* cash flow positive condos!!!

http://tinyurl.com/89ko2jx

Anyone wanna do the math on that…

#57 rentin on 03.12.12 at 11:29 pm

Suprise, suprise! Girl in a white tack suit with hoop earings doesn’t know how foreclosures work!

Maybe flip a house – what an idiot!

Garth – Looks like there are many more greater fools out there. Might keep things from imploding this fall.

Anybody know the statistic of boomers that own their home outright?

Might slow the price tumble if they choose the HELOC or reverse mortgage route to finance their demise….

#58 Mister Obvious on 03.12.12 at 11:30 pm

#5 Chaddywack

“Wow. Mainstream Media in BC showing that kind of story. Their sponsors won’t be happy :)”
———————

That’s CHEK TV from Victoria. They were originally a CBC affiliate, and then a CTV affiliate before nearly going broke a couple of years ago. The station was purchased by its own employees and gained a new lease on life.

It’s a pretty downscale little station but don’t get me wrong. I like it a lot. It now seems quite comfortable in its new role as the poor cousin of the bigger Vancouver stations. Maybe that’s why I find it appealing. It’s not pretentious in the least. Most refreshing.

Many of the sponsors are local mom and pop operations with no editorial clout. All they want is for you to come down to the local tire store for some great bargains on Korean all-seasons. There’s free coffee and the little ones are welcome too. After all, they’ll be buying tires too someday.

Anyway, good on CHEK for exercising some journalistic honesty.

#59 Sezer on 03.12.12 at 11:42 pm

I moved to Canada from Turkey. I lived in US for several years as well. We have concrete and I see how crappy houses are made in North America. And now seeing these extreme prices, surely I never considered buying anything. I think US prices are now normal, like 20-50K for old units, max 100K for new units. 4 pieces of plywood and here is the house. Then glue some fake stones and it becomes mansion! This forced air heating is sucker as hell. Blow all dirt and dry all air and your throat. And blow hot to high so that ceiling temperature is +2 and floor is -2. So stupid idea to suck warmer air from ceiling and blow from ground towards ceiling. Water running radiated heaters don’t do that. I won’t buy but still not happy for paying so much rent for lack of quality of life.

#60 lookoutbelow on 03.12.12 at 11:43 pm

“Sales erosion will soon become price reductions, and by this time next year not only will mortgages cost more, but another 300,000 wrinkly ex-hippies will be wondering why their financial security left with their hormones.” —- Garth.

Here in Lotusland, what’s that you say, “Sales Erosion” has already started and will only accelerate as the Spring Market wears on. Here are some nuggets on the YTD 2012 activity from a well seasoned realtor, Andrew Hasman in Vancouver.

“Vancouver’s Westside Real Estate Market Update

We are now in what is typically known as Vancouver’s Spring Real Estate Market. Typically the period from early February thru to mid April is when we see the largest volume of sales in Vancouver. This year may be different.

Across Vancouver’s Westside, housing sales were down 26% , Condo and Townhome sales were down 20% and 38% from February this year compared to February 2011. Overall, based on the Month’s supply we are technically in a “balanced market” with 4 to 5 month’s worth of properties on the market as at the end of February.

Westside ( Single Family Houses)

At the end of February there were 777 homes listed for sale vs 463 a year ago. An increase of 67%. There were 4.4 months housing supply as at the end of February vs 1.9 months a year ago. Our market is said to be “Balanced”.

Overall house sales year to date are down 30% from 376 to 263 units.”

Price erosion soon to follow. The smart money is moving east as the risk reward ratios in Vancouver are parabolic, especially with all those boomers ready to downsize and all the greater fools who have bought already, courtesy of those once in a lifetime big bank mortgage deals.

#61 Mr Buyer on 03.12.12 at 11:44 pm

Looking for a place to flip…well that says it all really. I wonder if it occurred to the guy in the video that the place is in foreclosure and thus flipping may not be a viable option. Hey did you hear about the Canadian Machines to make a better life for Humans Corporation (CMHC). Apparently it is a government agency that underwrites all technological innovation initiatives as well as implementation of new technology and business. You can get 30 or even 40 year loans at like 2.99% and all you need is a viable business plan (there are even outright grants available for the right projects that are 100% Canadian). Not only does the department underwrite the loan but they also ensure any unreasonable barriers to a worthy project are swept away in short order (you know protectionist measures by entities in whatever market, for example a cable internet provider throttling high speed access to decrease movie sharing thus preserving their DVD store operations. In this situation a start up was underwritten for the entire start up costs to bring online fiber optic internet access to every house in the country). It is really great. I guess the only down side is that the government of Canada gets a percentage of the company in exchange for the financing. A great many of the established entities hate it though because it is hard to squeeze every last penny from the public for diminished services if the public has viable more up to date options to explore. They would rather people stuck with the simple buying and selling of houses as a path into the future. Oh wait a minute. Sorry that was a daydream I was having, CMHC is actually an entirely different entity that brings no cash in. Oh, well. Back to work. THE BUBBLE HAS TOPPED. SALES ARE FALLING ACROSS CANADA. NOW IS NOT THE TIME TO BUY A HOUSE. BUYER BEWARE. Btw, there are not enough willing rich foreigners to maintain the bubble. Sorry to have to break that news to those wishing so.

#62 Elmer on 03.12.12 at 11:46 pm

Big players such as Garth and myself drive luxury cars, which need premium fuel. Not everyone drives an economy car you know.

#63 Elmer on 03.12.12 at 11:48 pm

Saving 10% of your income is hardly impressive. I save almost 70% of my after-tax income, and I make well under 100k and live in the GTA, and don’t really deprive myself of much (except my own house).

#64 Mr Buyer on 03.12.12 at 11:50 pm

#55 Smoking Man on 03.12.12 at 11:25 pm…Well look at this chart, forcast for population growth in GTA.
Where they going to live tents.
…………………………………………………………………
Nice chart. It is not going to attenuate the CRASH of this bubble though as it is a bubble. The increases long ago outstripped increases based upon the need for housing. Nice try at a flip there but I am not buying and the same goes for more and more people. THE BUBBLE HAS TOPPED. SALES ARE FALLING ACROSS CANADA. BUYER BEWARE.

#65 Mr Buyer on 03.12.12 at 11:51 pm

Smoking Man I think I am going to start calling you Smoking Realtor….

#66 NotAGreaterFool on 03.12.12 at 11:54 pm

Garth – In next few weeks, what is likelihood (%) F will:

(1) Reduce amortization to 25 years?
(2) Increase down payment?
(3) Both?

Just wondering…

#67 Tri State Pat on 03.12.12 at 11:58 pm

Hyperlink Code

Interesting data showing what’s been going on in Canada’s metropolitan areas. Who wants to buy in this financial climate?

#68 Grampa Hindsight on 03.13.12 at 12:04 am

The Hummer takes premium gas , hence the 1.39 price

#69 TurnerNation on 03.13.12 at 12:06 am

Slow creep…

Winnipeg School Division taxes going up 7.8%
CBC News
Posted: Mar 12, 2012 10:32 PM CT
Related Stories
Education taxes spike in Pembina TrailsWinnipeg budget proposes 3.5% tax increase

Winnipeg residents who live in the city’s largest school division will have to pay almost eight per cent more on their property taxes this year.

The Winnipeg School Division announced Monday that they are increasing the education tax portion by 7.8 per cent

#70 TurnerNation on 03.13.12 at 12:07 am

I bet the guy in today’s picture drives a Harley.

No, a Prius driver. — Garth

#71 dd on 03.13.12 at 12:10 am

Bill Gross twitter …

PIMCO ‏ @PIMCOClose ,,, Gross: Expect no news from Fed 2morrow but April meeting holds promise for a QE3. #Fed must keep buying bonds that the market doesn’t want.

Sounds like money printing to me. Why would a recovering country have to buy its own bonds?

#72 Marc on 03.13.12 at 12:11 am

“This situstion will not happen for boomers. Feds will open the door for millions of new immigrants. They can buy out all the boomer’s houses very easily and the price will go sky high.

This blog often leaves me gobsmacked. — Garth”

Isn’t this true, Garth? If current immigration rates triple from ~200,000 to ~600,000 , won’t this help housing prices remain constant?

#73 City Slicker on 03.13.12 at 12:14 am

Tune into Money Talk on BNN right now, the topic is real estate.
The dude is justifiing 500 sq ft condos in GTA, cause they are ‘livable’ in. So come an get your box for $500K

#74 Michael Dimatteo on 03.13.12 at 12:15 am

Why does it seem like prices are coming down everywhere but the GTA?

#75 Timing is Everything on 03.13.12 at 12:16 am

#6 The Thing in the Basement – “Well that’s not so bad is it? At 55…”

…and don’t forget those defined benefit pension thingys.

#76 Freedom 55 on 03.13.12 at 12:17 am

$3.67 a gallon in Dallas

#77 Axehead on 03.13.12 at 12:28 am

Filled up at Costco, Calgary, $1.08/litre for regular.

#78 Smartalox on 03.13.12 at 12:35 am

Message to the boomers: Sell now or sell never!

#79 FTP - First Time Poster on 03.13.12 at 12:38 am

#32EV-Ottawa on 03.12.12 at 10:39 pm
I used to buy mid-grade gas. The last time I filled up was October 2011. Since then I’ve been driving an electric car (Nissan LEAF). My 1100-1200km per month now costs about $35 (per month) in hydro with delivery and taxes included.

HEY EV – lets talk in 5 or 6 years when you need to cough up $6-8K for new batteries for your car. Oops…bet the sales guy didn’t mention that one did he.

#80 Paully on 03.13.12 at 12:40 am

I think #67 should buy an ad, not pollute the comments section with SPAM!

#81 mark on 03.13.12 at 12:40 am

http://www.cbc.ca/onthecoast/episodes/2012/03/12/priced-out/

Here’s an interesting listen about Vancouver real estate from CBC On the Coast.

#82 GuyInBurnaby on 03.13.12 at 12:40 am

Taking bus these days, you will find only a few advertisement inside the bus. Some even compeletely none! At the same time I keep hearing news about raising more funding for translink.

#83 Liggsie on 03.13.12 at 12:43 am

Garth – the narrative you present is definitely compelling. However, what happens when those same McMansion’ed boomers scream bloody murder about the glut on the market, and the resulting implications to their finances?

As you are doubtless aware – they vote. What will they lobby for?

#84 Carpe Diem on 03.13.12 at 12:46 am

I finally made my way to Montreal this weekend and spent a wonderful time with my brother. He’s been living in the UK for a while and finally came back to his downtown loft (awesome place). I think he’s caught up and brought forward his analysis that the world order is turning middle class into slaves. He cannot understand how folks in the UK kept up with expenses, other than increase their debt, hence becoming slaves.

Both my brother and I make plenty more than the average folk but we own no BMW, Volvo, Lexus,.etc …. we owe really old Japanese cars that still run 10+ years after we purchased them (secondhand).

I see more and more luxury cars and wonder how much the owners are spending on repairs while my old crapper costs me $400 per year in maintenance + gas.

I know I make more than most luxury car drivers so how the hell are they riding expensive cars without screwing themselves or their kids in terms of putting money to work?

I agree their wifes look hot but so does mine. However, she gets it while those babes are clueless what’s coming.

#85 Oceanside on 03.13.12 at 12:54 am

#37 Tim on 03.12.12 at 11:00 pm
A house in Nanaimo for $300K. Big deal. If you haven’t visited “Surrey by the sea” then you may not make it past the strip malls and the smelly pulp mill and the greasy bikers before heading up island to the nice towns, which, by the way aren’t suffering.
——————————————————————–
Parksville, Qualicum, Comox Valley and Campbell River, 2,909 active listings and so far this month (12 days) 86 sales of which only 18 were over $400,000. They are all suffering badly…..Most of the listings were on the market during 2011 and are coming back for a second season. You are right though, was just talking to a ReMax representative in Nanaimo who said it was “dead” there.

#86 Two-thirds on 03.13.12 at 12:55 am

Agree on all points, Garth.

2.3 million properties over 15 years equals roughly 173,000 annually.

These may sound like staggering figures, but in 2011, 456,749 transactions took place, according to CREA.

It would be instructive to know what percentage of 2011 sales were attributable to boomers, and contrast them with our host’s supply estimate going forward.

Speaking of TFSAs – can someone recommend a generic portfolio allocation for a $20K contribution? Tax refund time and perhaps a chance to move TFSA cash to investments in the next few months.

Assuming time frame is 1 year, would overweight bonds, REITs, and dividend ETF’s be reasonable? For the equity part, would 20% be too conservative? What are some decent equity sectors that are undervalued at the time?

Thanks for any ideas.

#87 Nostradamus Le Mad Vlad on 03.13.12 at 1:05 am

-
“Gee. That was hard. Or not. Not hard to see where this is heading, is it?” — Assuming some boomers have a healthy retirement portfolio stashed away, living well within one’s means then what of signing over a home (debt free, no liens) to TNG?

All that need be done is by a notary or lawyer, then the kids can use TFSAs to build up their own retirement plans, and probably gloss over RRSPs, just the bare minimum.

Boomers can be put out to pasture in a gated community, renting a condo or TH. I understand that in BC, the last surviving parent is required by law to leave an inheritance of some kind to children, but a lawyer would know.

“. . . millions of financially brain-dead Boomers are steaming into their adult diaper years still thinking as long as they have a house, a pulse and a vial, they’ll be fine.” — These are the ones who didn’t do their homework, and pretty much deserve what they end up with for not taking life expectancy into account. For more info., lyrics are esp. good on this The Old Dogs — Still Gonna Die 3:43 tune.

“Companies got efficient and profitable by cleaning up their balance sheets and trashing workers.” — All fine and well for the companies, but those workers are now getting EI benefits (from taxpayers, incl. the people that just let them go) for a year, then (maybe) social assistance.

So income taxes have to go up to subsidize those laid off workers, and we’re back at square one. What has it accomplished? If in doubt, underwater boomers can listen to Alan Thicke’s advice, and sign up with Cambridge Life Solutions!
*
Global Liquidity Peak Trouble brewing toward the end of the year? China could trigger US recession, and China toying with TROTW; Made in Japan label disappearing; Banks in denial at the rage of the public; 5% down just started in UK, and Home Prices Up? Jobs coming back? Notice how all these good news stories appear just after Garth has written about the renaissance of the US (consp. fairy); Oh to be rich and get tax cuts; Germany Can’t meet its own austerity goals.

Jpan’s Debt Disaster; Belgium and Spain; Satisfaction They Can’t Get No; Financial Repression Caused by the US Fed, but US Fed’s grim outlook if all else fails; Same as Garth;s post Boomers flooding housing market; Bull Market may last for years; New Housing Bubble in rental markets? Charts That Count Canada looks pretty good; Bulls, Bears and Pigs This is not a noral world.
*
Impeach Obomba? Some believe it’s time, and Oblastit Ratings in freefall. Zeitgeist from the NWO; 2:37 clip How to start a revolution, starring the CIA and Soros; Pole Shift covered up? Women are from Venus, Men are Lost In Space; Fukushima Ten times worse than Chernobyl.

#88 MM on 03.13.12 at 1:06 am

“I would rather have the baby than the house”

This says it all. What is important, and what is “nice to have”.

#89 Ozy - Take A Break on 03.13.12 at 1:10 am

All this shitty RE build, resale, mortgaging futures, fake industries should take a real break, so read more here, and do it randomly, remember, you are in a break and do not give a sheet:

http://www.spunk.org/texts/humour/sp001523.html

#90 Ship on 03.13.12 at 1:10 am

That pic is disgusting

Sex slave

#91 lolers on 03.13.12 at 1:16 am

lol@ elmer who saves 70% of his income living with his parents. Keep going buddy youre great!

Heres to a market correction! But i think this blog is kind of hyperbolic and filled with wishfull thinking. I have had the same thoughts since 2004 at least! still hasnt crashed yet!

#92 Ogopogo on 03.13.12 at 1:23 am

#48 TaxHaven on 03.12.12 at 11:14 pm
It’s a calculated gamble…every year I live in this (paid off) place, I save about $15,000 in rent, net of costs. I’m assuming the house “value” will decline over the next 10 years but my bet is IF I sell I’ll work out approximately even or better, net of currency depreciation.

…better than renting and investing the capital at these peanut artificial interest rates…

That’s not called investing. — Garth

Congratulations on exposing yourself as a financial ignoramus, TaxHaven. Before you start hyperventilating at me, let me say that you remind me of myself a year ago, before my investment renaissance and RE awakening in this here blog.

The angels now sing hosannas in my Questrade account. I even managed to back up the truck and load on tons of SNC Lavalin shares the day after the stock took the worst tumble in its history. I’m up around 6% + dividends. Also picked up several of Garth’s past recommendations, including preferred shares. I’m still learning, but at least am out of the orange dude’s shorts.

So wipe off that smug anti-renter attitude and learn to invest before you embarrass yourself.

#93 Timing is Everything on 03.13.12 at 1:33 am

#58 Mister Obvious

Agreed…They’re doing pretty damn good. A truly local TV station. With truly (mostly) local advertizes. Seems to work.

#94 taking stock on 03.13.12 at 1:38 am

People are so quick to degrade our poor seniors with comments about “depends” , Alzheimer thinking and “wrinkly” faces. Seniors didn’t put us in this mess. Everyone helped! The self-serving banks gave us the impetus to buy, buy, buy. Couldn’t anyone see for themselves that the money had to be paid back? Didn’t mom & dad tell you kids that you have to pay the piper? Mine did and I made sure that I would not have a mortgage going into retirement.

Senior’s kids went into homeownership blindly and when kids found they could make money flipping real estate they started doing just that. Senior’s can’t be blamed for their kids mistakes. Hell, some of those same kids ended up in mommy and daddy’s house, when they couldn’t afford their responsibilities.

How is it Boomer’s fault that Companies all over North America discovered it was better to outsource to China, India, Bangladesh and the list goes on. Do you think Boomer’s love standing in Walmart smiling at the idiots coming in the door to buy all this junk?

Stop whining people. All generations are in this together. Maybe we could push a RESET buttom and make the new world economy go away.

#95 The Thing in the Basement on 03.13.12 at 2:10 am

57 rentin’

“Anybody know the statistic of boomers that own their
home outright?”

from statscan, in 2005, 42% of all owner-occupied houses were mortgage-free. Assuming that a samller % of retirees have a mortgage, and a greater % of younger people would, and the effect of the large demographic, that figure is probably close.

I’ve tried to link to that article before but failed. Google “Household tenure and mortgage status”. Anxiously waiting for the 2010 data.

#96 truth hammer on 03.13.12 at 2:18 am

We’ve been having this boomer doom scenario conversation for a decade already. The science is both credible and flawed . 9 million boomers selling their house, which they won’t do . all in one go unless F and the CRA swoop in and mass rape the last of them they haven’t already, over a 15 or 20 year time ( 600K +/- per) frame is not that much inventory for the market to swallow. Consider that we have 350 K per annum growth from immigration and a small but positive growth rate of natural birth from the young and stupid. So lets dump that argument and focus on the real enemy….overhead…….thats what going to kill the boomers…increased taxes and the wild cost inflation that has set in.

Garth…..I got a self directed LIRA dumped in my lap……any comments on what is best….like an RRSP…ot TFSA for inclusions?

#97 Smartalox on 03.13.12 at 2:26 am

Message to the boomers:

Sell now, or sell never!

#98 Crash Callaway on 03.13.12 at 2:27 am

Oh Great!
Now we are about to get bombarded by the media with dumb ass Foreclosure Tours.
Who needs to go to Mexico to be abused…
I’m sure the Realtors will fill that need.

Realtors take all the fun out of Vultching!

#99 Roy on 03.13.12 at 2:48 am

Question for anyone.

I’m not 100% sure but mortgage rates I believe are impacted by fluctuation in the bond market.

If so, could we see rate changes pending a problem in the European bond market? Bond holders in Greece just got taken to the cleaners, we could expect that investors in sovereign bonds will now look for a much higher risk premium, escalating the collapse of PIIGS countries.

Potentially how does this affect things here in Canada?

Thanks.

#100 joey jo jo on 03.13.12 at 3:09 am

No surprised about foreclosures in Nanaimo aka “surrey by the sea”

what’s in a Nanaimo Bar?

strippers and hells angels

#101 Last (the first shall be) on 03.13.12 at 3:23 am

Garth we’re called the Clueless Generation for a good reason (hat tip to Inside the Law School Scam)

http://www.thedailybeast.com/articles/2011/10/15/occupy-wall-street-why-baby-boomers-don-t-understand-the-protests.html

#102 Dan in Victoria on 03.13.12 at 3:26 am

Well I see everything is ship shape here after my vacation.
I spent some time in Vegas recently, had plenty of time to chat up the locals. Cab drivers, cocktail waitresses
Resturant workers etc.
You / me have no idea what those people have gone through.
First the cabbies.
Talked to the cabbie on the way back from the Penn and Teller show, hows things I asked? Real Estate in particular.
Well I bought for 170K nice area 12000 sq foot lot, pool etc. Nice I said , yeah but you can buy lots of them houses around me now for 45K in foreclosure.

Cabbie #2 on the way back from Bass Pro Shop
Yeah I worked heavy construction all my life as a concrete carpenter, haven’t done that in quite some time he said pointing to all the casinos he worked on…
Its over for a guy my age he said{Mid 50″s}
I’ll probably never work constuction again.

Cabbie #3 on the way to Pawn Stars shop..
You have no idea man, its been real bad no nutin going down….it’s bad man cab company takes 23% of our tips…we pay cause there ain’t no work.
Say whats with you Canadians and this pawn shop all yous guys come here…say what..

Cocktail waitress on the casino floor…
Some people give me a nickel, some a quarter, some nothing. I always tipped her well.
My husband lost his buisness, most of my friends have lost their houses. We have trouble making ends meet.
Its tough real tough.
Keep in mind the casino does not pay her, all income is from tips…..

Waiter at the resturant mid 60’s I’m happy just to have a job i’m lucky….

Told them all, construction pays 25 to 30 an hour and houses go for a half million and up here in BC
Everyone of them said it used to be like that here, you guys have no idea what may happen.

Been checking things out here in Victoria, we’re renting a house in Lego Land counted 20 houses for sale around us……no sales
Checked around for lots seen some that were in the 220ish range down into the 170ish range no sales.
Still things going on but real slow and trade prices are way down.
Chatted up a general contractor friend of mine last week this guy is always busy, laid his crew off a month ago, no leads, no calls.
Oh got back in time for halibut season… mmmmm
fresh fish and chips.

#103 TS on 03.13.12 at 3:47 am

Don’t support Baby Boomers . They’ve had the easiest ride of any demographic in history. Their parents were the greatest generation? Boomers are the laziest generation.

I can’t even begin to calculate what my taxes are going to be in 15 years to pay for their free healthcare.

#104 Onemorething on 03.13.12 at 5:30 am

MISH’s latest claims Nominal Prices are at Aug 2002 levels I believe Nominal will go south to 1998 before the bottom. That will account for another 15-18% off the current national averages.

But more important is what it has done and will do everywhere.

“Fed Policies Devastated the Middle Class

Inflation benefits those with first access to money, namely the banks and the already wealthy. In the case of housing, by the time money was made available to those lowest on the totem pole, a housing crash was baked into the cake.

In that manner, Fed policies have devastated the middle class, complete with bank bailouts at taxpayer expense, Fannie Mae and Freddie Mac bailouts at taxpayer expense, and the robbing by inflation of those on fixed income struggling to get by on 0% interest rates on their savings while the Fed holds interest rates at zero. “

#105 Kip on 03.13.12 at 5:52 am

“Boomers sprouted in a time of economic expansion, inflation and the rapid escalation of asset values.”

Is today poop on Boomers day? Well good, as a tail end Boomer (53 years old) I don’t recall the easy street ride you refer to above.

I recall 4 recessions with the mildest being the one just came through. I recall 20% interest rates, high unemployment in the construction industry and buying housing with the thought of how will we ever afford this. Hardly the easy street you describe.

You are correct one one point of your stupid blog post today and that is that Boomers still make up that big voter block and will continue to use it for control of this country for the next few years at least. For indecisive Gen-whatever, they should be thankful for that.

#106 Beach Girl on 03.13.12 at 6:05 am

38 eaglebay – Parksville on 03.12.12 at 11:02 pm

Beach girl is going to be all worked up over this picture.

____

Actually, he is a bit cheeky for me. But I get the look. Not gay, but love the Pride Parade. Always go, we all get wasted. And realize how much we love each other. LOL. YA.

#57 rentin

Anybody know the statistic of boomers that own their home outright?

___

I DO, which one?
___

Might slow the price tumble if they choose the HELOC or reverse mortgage route to finance their demise….

___

Now that is nasty. But interesting. Is this an anti-Boomer website.

Okay, just curious. I am a boomer. So F** you and stay that way.

How do the generations get labelled? From what year to what year? Gen X, Y or Z. Or just generally whiny?

#107 Steven Rowlandson on 03.13.12 at 6:33 am

The picture at the top of the page says it all.
Canada and much of the world is on the wrong path.

#108 Taipan on 03.13.12 at 6:42 am

Young Boomer at 22.

Well done. It is so refreshing to read some real sense!

Im a 59 baby. So we are of similiar age. But so few of us can see through the huge BS. The delusion is massive.

I have sons at 19 and 18. Im happy for them to rent.

If they came to me and said, i want to buy a condo, id be saying, “you have to be nuts”.

Id practically pay their rent for a few years so they wouldnt buy.

The pain as this unwinds will be brutal

#109 Beach Girl on 03.13.12 at 7:06 am

183 Freedom 55 on 03.12.12 at 7:49 pm

New Proposed Medicare Program

You’re a sick senior citizen and the government says there is no nursing home available for you. So what do you do?

Our plan gives anyone 65 years or older a gun and 4 bullets. You are allowed to shoot four Politicians.

Of course, this means you will be sent to prison where you will get three meals a day, a roof over your head, central heating, air conditioning and all the health care you need!

Need new teeth? No problem. Need glasses? That’s great. Need a new hip, knees, kidney, lungs or heart? They’re all covered.

As an added bonus, your kids can come and visit you as often as they do now.

And who will be paying for all of this? It’s the same government that just told you that you they cannot afford for you to go into a home.

Plus, and because you are a prisoner, you don’t have to pay any income taxes anymore.

Is this a great country or what?

__

Hey, I am in. Never thought of this retirement plan. I am good at cards. Bid euchre. Conrad seems happy enough. Good for the Goose good for the Gander.

One must commit something serious, I would suggest though, to warrant such a level of care and attendance. Also, I love to read. Do we get to share the remote?

#110 Realtors in a PANIC! posting everyday on 03.13.12 at 7:14 am

Most smart realtors have flipped their investments to greater fools but some are still holding the bag. Worried realtors post daily and many post multiple times a day as they worry the truth will get out and housing will crash. Smart money/people are leaving the GTA/ Ontario for the west as the rust belt gets worse. Jobs are being lost and wages frozen while houses sell with the major aid of cheap credit which is drying up. Look at realtor smokingman who no longer seems cocky but now seems desperate. The crash has started …..are you ready?

#111 GregW, Oakville on 03.13.12 at 7:23 am

Hi, re: Toyota/Prius/gas price going up!

I don’t have lots to fill my tank, and I think gas prices have no wear to go but up. So the gas milage rating of the Prius looks pritty good.

I understand that Toyota has plans to introduce 11 new products this year. Some are already in view,
PriusV(more room for extra stuff than the standard Prius), PriusC (smaller than standard Prius), plans for a Plug-in Prius too. All have the same power system as the standard Prius. (Yes its not a Hummer, but if you want to save on those fillups…)
Here a youtube of the PriusV review,
http://www.youtube.com/watch?v=6DDHFcjh8Wc

Here’s the link to Toyota Canada if you want to see the great gas ratings and more info on there products.
http://www.toyota.ca/

#112 Bigrider on 03.13.12 at 7:24 am

Not sure how well my fund salesguy/portfolio manager/ ETF salesguy /financial planner/ private wealth financial product salesguy does but I have done well with my mutual funds and hedge funds.

Whomever you decide to work with ,or by whatever title they go and whatever pay structure they implement , your mileage may vary but good luck to all.

#113 I'm stupid on 03.13.12 at 7:35 am

Garth

You forgot to mention the impact on wages that too much debt had on wages. Corporate profits have increased because wages have been stagnant. How can someone negotiate higher wages when they are living pay cheque to pay cheque? Yes I agree that companies have become more efficient but wages are the primary reason their profits have increased. Imagine what employees can do if they had savings to support themselves.

#114 eaglebay - Parksville on 03.13.12 at 7:50 am

#24 MapleLeafsSuck on 03.12.12
“Feed the beast the goods. Otherwise, buy a Prius.

Give me horses, or give me death. — Garth”
____________
Horsepower is for women, torque is for men.
Prius is for little girls.

#115 jess on 03.13.12 at 7:56 am

12 Dec 2011 – Even as foreign investors snap up Canadian bonds, too much of the capital coming in is being used to fund household spending instead of building productive capacity, he (Carney)said.

===========
…transfers of risk to the public through these P3 infrastructure projects.

May 23rd, 2011 · Keith Reynolds · 3 Comments · Privatization, P3s & public services, Transparency & accountability
A new report by British Columbia’s Auditor General has debunked nearly every benefit claimed so far for public private partnerships (P3s).

http://www.policynote.ca/british-columbia-auditor-finds-costly-failings-in-provinces-first-hospital-p3/
========================
http://lailayuile.com/2010/12/22/sea-to-sky-highway-changes-hands-as-macquaries-essential-asset-partnerships-sells-100-of-their-stake-in-the-project/

#116 eaglebay - Parksville on 03.13.12 at 7:59 am

#32 EV-Ottawa on 03.12.12 at 10:39 pm
“Since then I’ve been driving an electric car (Nissan LEAF). My 1100-1200km per month now costs about $35 (per month) in hydro with delivery and taxes included.”
_____________
Nice to drive around the block.
Otherwise you need a long extension cord.

#117 The Original Dave on 03.13.12 at 8:16 am

I did an mls search of brampton area (airport rd north of steeles) and there seems to be tons of listings! Seems more than usual or am I wrong?

Also, did some kijiji and cglist searches of rentals in the area and just north of there and there’s full houses for less than $1500 for rent.

#118 neo on 03.13.12 at 8:20 am

#63Elmer

She didn’t say she saved only 10%. She said she puts 10% a year in RRSP.

#119 Danforth on 03.13.12 at 8:21 am

….8:15am, cbc 99.1FM in Toronto….
Look at that radio coverage for Turner Tomenson!

#120 Amazed on 03.13.12 at 8:24 am

North45… Five years ago we got preapproved for $1.45mil. Should be interesting this time around.

#121 Shane on 03.13.12 at 8:28 am

Garth, where is your blog on how to buy USA realestate?

Shane

Been a few of them. — Garth

#122 jess on 03.13.12 at 8:33 am

hell !just turn your computer into a slot machine by adding Peripherals – no need to drive …and if guilt /shame set in, just click over to the online confessional or robo drug counsellor for tips on how to deal with the withdrawals.

From the cbc …”the OLG announced a massive “programming expansion,” which would add $1.3 billion annually to provincial coffers by 2017, with the new casino accounting for about 40 per cent of that amount.

The plan also includes expanding the sale of lottery tickets, moving gambling online and consolidating or closing gaming facilities that are “underperforming,” in border cities like Windsor and Niagara Falls”…

#123 Kevin on 03.13.12 at 9:07 am

“The median CPP payment is $537 a month and OAS averages $507. That’s $12,000 a year. Tell me how far that goes with gas at $1.39 a litre (my fill-up this morning).”

First off, that’s $12,000 per person, per year. These Boomers are married. So right out of the gate, that’s $24,000/year.

Secondly, it’s all tax-free, because senior citizens don’t pay income tax in Canada unless they’re super-rich. Basic personal exemption, age credit, pension splitting, pension allowance, and more all ensure that their kids carry the tax load – not them.

Thirdly, your $1.39/L fillup was premium. $24k/year retired Boomers aren’t driving cars that require premium. They’re driving 10 year old Camrys.

Fourthly, their home is paid for, and they no longer need to save for retirement. Those are the two biggest line items in my own budget. You take those away (along with income tax), and yes, actually, I could probably make a go of it on $24k/year.

Fifthly, people that poor either move away from the expensive city, or keep working. Retired people living on $24k/year don’t stay living in the city. They move to a rural area where the money actually covers the costs, or they keep working.

(a) Two people, more expense. (b) taxes? Ever heard of HST?. (c) It was mid-grade gas. Premium was 12 cents more. (d) Homes cost a bundle to own, even after they’re paid for. (e) Yes, being rural poor sounds so much more appealing. You can train the chickens to be blog critics. — Garth

#124 Ronaldo on 03.13.12 at 9:20 am

#102 Dan in Victoria – Welcome back Dan. Wondered where you’d been. Always enjoy reading your posts. Very informational.

#125 Danforth on 03.13.12 at 9:28 am

“Casinos underperforming”?
It means that the poor there are already tapped out.

So they say – lets go to a place where we have some untapped poor and make them poor!

Face it, casinos and lotteries are a tax on the poor!

#126 Smoking Man on 03.13.12 at 9:34 am

#64 Mr Buyer on 03.12.12 at 11:50 pm
#110 Realtors in a PANIC! posting everyday on 03.13.12 at

I’m A Realtor? BAhahahahahahahaha

Any Idea how much sweet is required for that occupation do be done properly. No Thanks. To much work for me.

My suggestion to you too, keep your money in the bank, don’t invest, because you will lose it, you can’t get passed your belief bias, very dangerous when investing. You Need to look under every rock.

So I publish a link to stats on a Population forecast for the GTA which suggests that lots of folks coming here, and made the observation that they need some where to live. That makes me a Realtor?.

It’s like, say I said something positive about Israel, you too would brand me a Zionist.
Another Bahahahahahahah

#127 Timing is Everything on 03.13.12 at 9:37 am

#26 Young Boomer

Ditto

#128 Houman on 03.13.12 at 9:43 am

Last week I told you guys about my house that was on mls. Here is the link again:
http://www.realtor.ca/propertyDetails.aspx?propertyId=11639489&PidKey=-1926019786

We were taking offers last night and ended up with 4 offers. To make a long story short, we sold at 729 with no conditions. I had an offer for 732 with inspections:)

The house is under 2 years and I bought it from the builder in 09 for 465. I never thought you would get multiple offres in boonies but we ended up with 4….

#129 Tyler on 03.13.12 at 9:43 am

4 listings that I have been following all dipped this week…. average decline of 1.3%… every listing has been on here over a month now…. sales are fleeting in south Etobicoke.

#130 chris on 03.13.12 at 9:53 am

Hey Garth, I used to read your articles in the newspaper back in the nineties :) May I have your opinion please? When do you suspect house prices to correct and I know it depends on several factors but if a correction is to occur how much percent and when will there be the next housing boom/price increase?

I like your blog. I read it every week.

Thank you.

Read it daily. All life’s questions are answered. — Garth

#131 disciple on 03.13.12 at 10:12 am

That’s cold, man. After everything I’ve given? Okay, I made a couple revisions. It’s not about money.

To all my fans, readers, supporters, and yes, even sworn establishment shills and enemies: My odyssey on this blog has come to an end (unofficially as I may pop in occasionally). Thank you for patiently suffering through the ordeal that has created and the phenomenon that was disciple and that has now progressed into “xdisciple”, while I sought and found what I didn’t even know I was looking for. Please feel free to visit my new blog…

Always remember: Your culture is your enemy. Escape it. Free your mind. Money does not exist, rather wealth is labour and technology. Most of what you’ve been taught in school is wrong. You are what you say, what you say, you are. Au revoir.

#132 Kevin on 03.13.12 at 10:13 am

@taking stock:

“How is it Boomer’s fault that Companies all over North America discovered it was better to outsource to China, India, Bangladesh”

Um, because the executives in those companies who made those recommendations are … wait for it … Boomers.

It was the corner-office MBA Boomers who run the companies who decided to pad their paychecks by sending their Gen-X/Y kids’ jobs across the ocean.

#133 The Thing in the Basement on 03.13.12 at 10:23 am

102 Dan – good to hear from you!

#134 Timing is Everything on 03.13.12 at 10:30 am

#78 Smartalox – Message to the boomers: Sell now or sell never!

Sell our bunker? You bet. Circa 2030. After the subdividing of course. Still no power at our bunker. No worries…Gen-set, fire, Internet…We have at least 30 daze before I worry about BC-Hydro getting me back on the grid. I think I’m actually ‘saving’ money. Four very large Arbutus came down…Will keep me in fire wood heat for at least 4 more seasons. That’s nature.
——————————————————-
#102 Dan in Victoria – Lost Wages…

Sounds a bit like Windsor, only warm and fun and better Casinos.
What/where is ‘Lego Land’?
——————————————————–
#125 Smoking Man

There are a lot of assumptions made on most (all) open blogs. That’s what makes them fun. A lot of random BS too. All very Springeresque.
——————————————————
#114 eaglebay – Parksville

How much torque does your scooter have?

#135 AG Sage on 03.13.12 at 10:35 am

>#49 SophieZombie on 03.12.12 at 11:15 pm
You sound just like a second round foreclosure. This market decline is going to have a very long tail.

>#72 Marc on 03.13.12 at 12:11 am
>Isn’t this true, Garth? If current immigration rates triple from ~200,000 to ~600,000 , won’t this help housing prices remain constant?

http://www.statcan.gc.ca/pub/11f0019m/11f0019m2007294-eng.pdf
Immigrants to Canada are increasing in skills, but decreasing in incomes. If you really tripled immigration, household size would explode.

#136 Debtfree on 03.13.12 at 10:38 am

Not making any more land eh. Well guess again. Now tolko can make da etal even more nuts.
http://www2.news.gov.bc.ca/news_releases_2009-2013/2012FOR0026-000271.htm

#137 John Prine on 03.13.12 at 11:07 am

#103 TS on 03.13.12 at 3:47 am
Don’t support Baby Boomers . They’ve had the easiest ride of any demographic in history. Their parents were the greatest generation? Boomers are the laziest generation.

I can’t even begin to calculate what my taxes are going to be in 15 years to pay for their free healthcare.
——————————————————————-
Not sure where you live but here in BC we have to pay for a portion of our health care (couple is $108 per month) and prescriptions cost a fortune, glasses, physio, and all other extras are paid in full, certainly far from free.
My parents were born in 1914 and 1916, after WW2 they enjoyed 30 years of the best of everything and a real quality of life that has been lost in this era of I-Phones and texting instead of being neighbours. As a boomer I did have a great childhood, different pressure on my 20 something kids, I don’t envy them despite all the “advancements” in technology. One thing I do remember as a boomer kid was we worked hard all the time to save for cars, houses etc.. and it was not in the service industry.

#138 Van guy on 03.13.12 at 11:08 am

#114 eaglebay – Parksville on 03.13.12 at 7:50 am
#24 MapleLeafsSuck on 03.12.12
“Feed the beast the goods. Otherwise, buy a Prius.

Give me horses, or give me death. — Garth”
____________
Horsepower is for women, torque is for men.
Prius is for little girls.
__________________________

All this power, and all that torque in a Hummer, bu if yOu can’t take an exit at 160 km/hr, it’s pretty much no fun. For that money, get a caddy CTS-V, or Audi QX-7 Diesel V12.

#139 $1 trillion inheritence on 03.13.12 at 11:08 am

Great article and make sense in general…..
However on the other hand it is estimated that the current baby boomer will receive $1trillion as inheritence in the next 20 yrs

as per a moneyville article on feb 20 2012

Hardly. Longevity will nuke most inheritances. — Garth

#140 wollyone on 03.13.12 at 11:10 am

130th………….

#141 Sean on 03.13.12 at 11:11 am

Garth, where is your blog on how to buy USA realestate?

Shane

Been a few of them. — Garth

You need a search function!

#142 static on 03.13.12 at 11:28 am

@129 Houses are already correcting. Ones money buys roughly 20% more home than in 2008. This is true for Vancouver and Toronto.

#143 Bailing in BC on 03.13.12 at 11:38 am

This just dropped around 3000000 in Whistler.

http://www.realtor.ca/propertyDetails.aspx?propertyId=11380354&PidKey=-100715812

Count the zeros.

Thats 3 million, not 300 thousand.

Approximately 30% in one drop. Ouch!

#144 Poorgoisie on 03.13.12 at 11:39 am

Smoking man I posted these links a couple days ago check them out
http://nss.ie/pdfs/Completea.pdf
On the above skip to pg. 102, the Irish gov’t forecasted in (2002) they would need 500,000 new dwellings by 2010. But on the way to 2010 the bubble burst and people suddenly didn’t want to move there and then in 2010 this happened…
http://www.irishcentral.com/business/300000-houses-lying-empty-in-Ireland-including-200-ghost-estates–82080852.html

#145 refinow on 03.13.12 at 11:43 am

32 EV Ottawa…

Dont pay for gas… But you spent $35,000 for a car that a comparable gas powered car would cost $15,000 -20,000. So how many years for you to recoup your higher priced car.

A friend bought a hybrid 2 years ago, but not buying another one. He doesnt not drive enough to justify the higher price of the car.

IF you are driving alot, or have kids in rep sports then the hybrids and electric cars make sense

#146 refinow on 03.13.12 at 11:46 am

http://www.nissanusa.com/leaf-electric-car/index#/leaf-electric-car/index

MSRP $35,000

#147 Sebee on 03.13.12 at 11:55 am

Give me horses, or give me death. — Garth

Garth, you talk the talk, but you ride slow and noisy. :-)

#148 Apocalypse 2010 on 03.13.12 at 12:03 pm

Dear Mr. Turner: You are very skeptical of Realtors, Mortgage Brokers, Politicians and Bankers when it come to residential RE Market pumping based on false information. Yet you show no skepticism of the same Bankers and Politicians when it comes to juicing statistics and numbers related to the Stock Market and the Labor Market, also based on false information. It may be healthier for the average person to be far more skeptical of the bubble in Equities rather than the bubble in RE. Facts would seem to support such a conclusion. Cheers. The Apocalyptic One!

In Today’s Risk-Filled Markets, Can You Afford to Be Misled By Fantasy Financial Reporting?

#149 Wage Slave on 03.13.12 at 12:17 pm

63 Elmer on 03.12.12 at 11:48 pm

Saving 10% of your income is hardly impressive. I save almost 70% of my after-tax income, and I make well under 100k and live in the GTA, and don’t really deprive myself of much (except my own house).

Come on, Elmer, at least pay your long suffering mother some rent. You think she likes to cook, clean, and do laundry for your grown, privileged ass?

If she refuses to take your money, then send it to Garth for board upkeep. After all, he (and we) have to deal with with your constant whining about the self-imposed house deprivation.

#150 Wage Slave on 03.13.12 at 12:20 pm

59 Sezer on 03.12.12 at 11:42 pm

I won’t buy but still not happy for paying so much rent for lack of quality of life.

What is quality of life like in Turkey these days? I’m genuinely curious.

#151 Relaxed Island Life on 03.13.12 at 12:24 pm

#21 SH
“Hah Nanaimo! Home of rednecked, rubbernecked biker wannabie mid 60s cussin good ol boys. And they thought building a few nice homes meant they were cosmopolitan. When the chickens come home to roost all that will be left are the dope smoking rednecks driving big trucks too fast.”

Have you actually spent any time in Nanaimo? I suspect not…. we sold our North Van home for double what we paid for it. We now raise our three young kids in a place where there is no such thing as traffic, waiting for more than one light is unheard of, and we don’t have to look for parking spot or wait in long grocery store line-ups. Most people here are happy and fit. Instead of spending three hours in our cars commuting we spent that time visiting our amazing parks and ocean trails. It’s normal to hit a lake or the ocean at lunch hour here. We can get anywhere in 15mins. We have access to some of the best local meats, eggs and produce. It’s easy to do the 100 mile diet here. We have access to amazing camping spots and driving to Tofino is the same as most burb folks do in a day. We have great schools relaxed teachers, non crowded public pools. We have kids that walk and ride their bikes places…staying fit! Sure the markets been hit but it has everywhere. Our house prices make sense, we can afford them…almost mortgage free, young and love living in the Harbour City!

#152 eaglebay - Parksville on 03.13.12 at 12:37 pm

#130 Kevin on 03.13.12 at 10:13 am
“It was the corner-office MBA Boomers who run the companies who decided to pad their paychecks by sending their Gen-X/Y kids’ jobs across the ocean”
__________________
The problem isn’t the Boomers, it’s the “MBA”.
Big fancy ideas and easy way out.
No real ingenuity or imagination.

#153 Stuck on the Island on 03.13.12 at 12:42 pm

Nanaimo’s real estate market has picked up some and so that is good news for those trying to get out, but the same cannot be said for Ladysmith/Duncan/Victoria. This whole #1 stretch south of Nanaimo is in the funk, big time.

Ladysmith, where I live, 14 sales year-to-date. Prices are falling like crazy. I’ve had a few sniffs, but still no offer and price has been dropped again… nothing. No buyers anywhere.

In for the long haul. I actually now fully believe I will never get out.

#154 eaglebay - Parksville on 03.13.12 at 12:44 pm

#132 Timing is Everything on 03.13.12 at 10:30 am
——————————————————
“#114 eaglebay – Parksville
How much torque does your scooter have?”
_____________
Duramax scooter @635.
I could pull your dingy house out of its foundation.
Now go find a job, smart one.

#155 Van guy on 03.13.12 at 12:47 pm

#140 Bailing in BC on 03.13.12 at 11:38 am

They wanted 12 mil for that? It’s worth 5-6 mil max. Lol what a joke.

#156 eaglebay - Parksville on 03.13.12 at 12:51 pm

#136 Van guy on 03.13.12 at 11:08 am
“All this power, and all that torque in a Hummer, bu if yOu can’t take an exit at 160 km/hr, it’s pretty much no fun. For that money, get a caddy CTS-V, or Audi QX-7 Diesel V12.”
____________
Try driving anywhere off the fancy highway like mountains, valleys, trails and logging roads with your girly cars.
My wife drives the Caddy.

#157 Genghis on 03.13.12 at 1:07 pm

A bunker costs way more than I thought.

http://money.cnn.com/2012/03/13/pf/doomsday-cost/index.htm

#158 Alex N Calgary on 03.13.12 at 1:08 pm

Garth, money saving, your hummer doesn’t need anything more then 87 octane, higher grade gas is only for turbo/supercharged/high compression motors which the H2 doesn’t have! The additives they put in for higher octane actually have less energy per unit they gas, so you get a bit less mileage with premium.
EV’s are nice, but batteries only last 7yrs, and recovering the cost of the initial purchase over an efficent gas car is hard to do, also cold weather makes them only avg in mpg.

Great post from that girl, we feel the same way, enjoy life, have no real need for houses. In calgary they laugh at me though, as we continue to wade through rentals looking for a inner city with a dual car garage. “YOU rent? but you have a real job, why…, just come and move to cochrane/McKenzie town, oh sure its a 1.5hr commute each way, but you get to live in suburban hell for 5% less then a brick faced, particle board masterpiece that you get closer to downtown!”

How could I turn down an offer like that? That being said the crazy market is making rentals harder. Like the monkey in the video, “just looking for something to rent out or Flip” easy money, its the mindset of all these greedy people. I could learn about investing but its so hard (it is hard and complicated to normal people) I’ll just get rich off houses, I just can’t stand the greed people have here.

Darlings longtime Calgary uncle tells me of bust times when people who are working cleanup at trade shows, telling stories of when they used to make big money in the oil patch, used too….. when people used to be really scared about their jobs and loss of wealth in Calgary….now its all balls to the wallz for HELOC purchases, and selling your first house( bought at age 23) 2 yrs later to UPGRADE, then keep the old one as a rental, financial geniuses they think…

You’d think before commiting such massive money they’d read the internet for like 20min….although renting has not been great, so I sorta get it, but man its such a Cult, sigh. *rant*

#159 Observer on 03.13.12 at 1:25 pm

re: #105 Kip

Your logic that you ” Don’t recall the easy street”. I have heard this many times that you boomers had it tough.

Well , let’s use facts to see how tough you had it.

in 1972 the minimum wage in BC was $2.50 an hour –
today it is just under $10.00 an hour. So, the minimum wage is 4 times what it was in 1972.

A brand new house in a nice area of Richmond (considered “out in the boonies”)was $40,000. A 20% interest rate mortgage on the full amount (25 yr amortization) – $645 month.

A brand new house in Maple Ridge/Langley (Considered “out in the boonies” today) is
$700,000 . A 3% interest rate mortgage on the full amount (25 yr amortization) – $3312 month.

So in order for people to “not have the easy street ” like you did, that mortgage should be (4 x $645) = $2580.

Thats a difference of $732.00 month or 22% more than when you had it tough.

I have used the extreme high end of rates in the 1972 example and the extreme low end of today’s example.

Baby boomer’s – the cake walk generation.

#160 Mike on 03.13.12 at 1:27 pm

Here’s what I’ve seen lately in Saskatoon’s “Hot” market:
-House in the ghetto that was purchased for $235k just sold 4months ago to a friend for $209k
-Houses (Beautiful and dumps) in excellent locations along the river are sitting with “reduced” signs on their front lawns for months now
-Commerical expansion has slowed greatly. Probably because there are endless “For lease” signs in empty buildings all over the city (Some for years now).
-Most average homes’ prices have been stagnant for over a year now, yet the “Average” price continues to rise because more and more $600k-$1M homes are being built. 5yrs ago there was no such thing as a 3000sq-ft mcmansion with walkout basement. Now there are several areas built entirely of them (willowgrove, Rosewood, evergreen), but the building of them is stalling. Rosewood is turning into a gigantic failure because no one wants to live in the boonies on the edge of town with nothing close but a Boston Pizza, a grocery store, and a couple banks, and also because NO ONE ELSE CAN AFFORD THOSE KINDS OF PRICES ANYMORE! The boomers are all upgraded, rich immigrants don’t dare brave these kinds of winters, and maybe finally Carney’s warnings about debt is finally catching on. That’s it. Things are drying up here, even though the headlines and data don’t make it very apparent.

#161 Nuke on 03.13.12 at 1:33 pm

The “Home Alone” house sells for $1.585 million in a great Chicago neighbourhood. Wonder what that would bring in TO today.

http://blog.sfgate.com/ontheblock/2012/03/12/almost-1-year-later-home-alone-house-sells-for-a-third-off/?tsp=1

#162 eaglebay - Parksville on 03.13.12 at 1:44 pm

#151 Stuck on the Island on 03.13.12 at 12:42 pm

Everything below the 49th parallel isn’t doing so great.
In Oceanside sold signs are starting to pop up.
Acreages, there are lots of them, are doing well.
Otherwise prices seems to have dropped a bit but no crashes.

#163 new_era on 03.13.12 at 1:48 pm

Listened to your video,

What people are buy with Zero Down.

No sh$t Sherlock!

And banks were getting people to lower their downpayment so CMHC can take the responsibility of the loan

And banks were also saying 5% down and 5% cash back. Humm sounds like zero down to me.

Then you got Vancouver sun, Global saying there is no such thing!!!!

#164 Nuke on 03.13.12 at 1:52 pm

Wonder what this would go for in Toronto
Home Alone House

http://blog.sfgate.com/ontheblock/2012/03/12/almost-1-year-later-home-alone-house-sells-for-a-third-off/?tsp=1

#165 OkanaganInvestor on 03.13.12 at 2:30 pm

#86 Two-thirds on 03.13.12 at 12:55 am
“Speaking of TFSAs – can someone recommend a generic portfolio allocation for a $20K contribution?”
“What are some decent equity sectors that are undervalued at the time?”

Try PLT.UN/TO. A liquid NG trust that pays $0.075/mo and at $7.58 that provides a 1%/month distribution, which a DRIP can be applied for.

http://parallelenergy.ca/

#166 NoName on 03.13.12 at 2:36 pm

#114 eaglebay – Parksville on 03.13.12 at 7:50 am
#136 Van guy on 03.13.12 at 11:08 am

Let’s compare apples to apples, and girly Prius to Mustang Boss 302, cts-v, an to “all that torque in a Hummer” H2 (2009 was a last year they made H2)
like median vs average selling price, SFH to all others dwellings pooled together to bring numbers down)

Prius
Power output
80 hp (60 kW)
Torque 153 lb.-ft.
85 lb.-ft./per liter of engine.

ford mustang boss 302
5.0
V-8
444hp @ 7,400RPM
380 lb.-ft. @ 4,500RPM
75 lb.-ft./per liter of engine.

Cadillac CTS-V 4dr Sedan
V-8
6.2
556hp
551lb.-ft.
89 lb.-ft./per liter of engine.

H2 (2009)
V-8
6.2
393 hp
415 ft-lbs.
66 lb.-ft./per liter of engine.

#167 Mike on 03.13.12 at 2:40 pm

#158 – Me – Whoops. I should mention that the ghetto house that was originally purchsed for $235k was in 2008

#168 Daisy Mae on 03.13.12 at 2:43 pm

70TurnerNation on 03.13.12 at 12:07 am
“I bet the guy in today’s picture drives a Harley.”

“No, a Prius driver. — Garth”

***************************

….and he’s walking towards a pair of gays. So funny!

#169 Stuck on the Island on 03.13.12 at 2:50 pm

@#160 eaglebay – Parksville on 03.13.12 at 1:44 pm

“Everything below the 49th parallel isn’t doing so great.
In Oceanside sold signs are starting to pop up.
Acreages, there are lots of them, are doing well.
Otherwise prices seems to have dropped a bit but no crashes.”

Tell me about it. I have been listed for over 5 months and down $15K from the original list. I have been told over and over that it isn’t the price, but I have been dropping it anyway because waiting for buyers isn’t working. Spring market? Not so much.

I see Calgary is going wild right now too… but I won’t be buying going back to Alberta. No point. The market will cool off and deals will abound again someday.

#170 EB on 03.13.12 at 2:53 pm

#151 -Stuck on the Island

There are worse places to be stuck! I only wish my job was portable enough to get me back over to the island. Even Nanaimo is a pretty nice place now (and I remember the mill town/biker days).

#171 daystar on 03.13.12 at 2:54 pm

Good afternoon Garth and fellow blogger/readers!

Its interesting the subject of real estate, the proverbial word “real” in front of estate in of itself being a flirt with desire as we all want what is “real” right? The changes in real estate valuations are often glacial including their trends up and down unless one considers government manipulation (CMHC in Canada) and interest rate extremes (like right now, a central bank rate left at 1% or less for going on 13 quarters now) which, if policy is left long enough creates extremes in valuations (including overheated trends), extremes easily evidenced across the nation.

We really are at the tipping point. Some would argue (like myself) that the tipping point occured back in April/May of last year when sales and valuations where at their zenith before CMHC tigher regs (finally and too late) but others look for a sharp drop to mark the top with distinction and what I don’t think the vast majority of Canadians are prepared for is how quickly the market can sour should rates go up.

Lets take note that the U.S. housing sector is showing signs of bottoming, while the U.S. economy is showing signs of life. Why should this surprise anyone? Europe is a mess…. someone has to pick up the slack, no? Why wouldn’t it be the U.S. that picks up the pieces persay. While we’re one the subject of a U.S. recovery, why wouldn’t a U.S. recovery prompt the fed to opt out of buying treasury bonds to keep rates artificially low? Are U.S. bank balance sheets ready for higher rates?

My feeling is that they are less than 4 quarterlies away from being prepared overall from the effects of higher rates on the housing market partly due to lower housing valuations and the full unwinding of AIM’s (interest rate free mortgages for the first five years, the banking industry has to deal with customer fallout of borrowers who can’t adjust to normalized house payments, there are still a good 6 months of a sizable chunk of such mortgages timing themselves out through to Q4 particularly in California) and partly due to a healthier economy and if jobs are created, it could be a mere 2 quarters away.

So my thinking is, and what prompts me to offer windy opinions this morning is… if the U.S. bond market is allowed to return back to an unmanipulated free market without a big government buyer, what will happen to rates? They will go up and when they do, money that would normally pour into bond markets like Canada from outside of Canadian soils will no longer come… except for a premium and that means Mark Carney will have to raise rates in competition with U.S. rates to attract capital investment and these days, the Canadian way is to chronically overspend privately and undertax publically and borrow to pay for it and call it prudent until interest rates remind us that such policies aren’t wise in the long term and really don’t benefit anyone except the lenders and in an age when the rich have lost the meaning of the word sovreignty, it won’t be and never really was in the best interest of your average Canadian to borrow beyond our means.

Now we have a housing bubble on our hands poised to deflate perhaps dramatically depending on how quickly or to what degree interest rates rise and we have our federally elected government to thank for it (along with the voters who decided such policies and their stewards are fit for this nation, I know, I know… who else… someone with the best interests of Canadians at heart would have sufficed, even if he or she was hard of hearing and spoke french but thats just me).

So… lets put 2 and 2 together shall we? What happens to Canada if the U.S. recovers? Interest rates go up. What happens if Quantative easing is mothballed? Precious metals drops (even if the U.S. dollar drops although that would help gold) and the Canadian stock market takes a hit (its heavily weighed by mining stocks). What happens to Canadian housing? It takes a hit and to what degree will be decided by what kind of monthly payments Canadians can afford.

Lets use our imaginations. Would a rise of interest rates by 3% points create a housing led Canadian recession considering today’s high valuations with 29% of mortgage holders floating variable mortgages? Considering the extremes housing has gone through in Canada thanks to historical government policy, of this, I have no doubt and if it rises to 6% or more its a recession that will last for years, not quarters… just like as happened in the U.S.

So lets summarize. A U.S. recovery, while initially perceived as being good for the Canadian economy through increased U.S./Canada trade will be bad for Canadian RE because of higher rates and the thing is, lol, we could see it coming, we just don’t know the timelines or speed of which housing tumbles but lets not fool ourselves anymore. It could be dramatic, as dramatic as interest rates were catylistically (is that a word? I kind of like it) on the U.S. housing market in 05′ paving the way for record foreclosure rates in 05′ and 06′ as the causal effects of this chart should be easily seen.

http://www.bankrate.com/brm/news/fed/fedchart.asp

…and we know the rest of the story of U.S. housing. That story could happen here even with recourse loans, one cannot squeeze blood from a stone so take the advice of a wise host and heed his words. Real estate (we can add PM’s as well) is no longer a safe investment in Canada anywhere really, so why put all your eggs in the basket of real estate? RE is plastered thick with such risk…

#172 jess on 03.13.12 at 3:07 pm

Longevity will nuke most inheritances. — Garth

didn’t that science researcher suggest boomers have a higher risk of a hep c due to their past lifestyles? …are there artifical liver replacement parts?

==============
Liberty? Whose?
Woman Who is Lead Plaintiff Against Requiring Health
Insurance Goes Bankrupt With Unpaid Medical Bills –

The U.S. Supreme Court will hear Brown’s legal challenge and decide whether the government can require people to buy health insurance.
Ripple Effect Of ‘Cost-Shifting’ Uncompensated Medical Care (by Wendell Potter, iWatch News)
Prescription Drug Coupons Hit as Scams in Multiple Lawsuits
Monday, March 12, 2012
==============
robo machines don’t talk to each other so well

“outhouse lawyers” http://www.scribd.com/doc/45546777/Almonte-SEC-Letter
http://www.americanbanker.com/issues/177_49/chase-credit-cards-collections-occ-probe-linda-almonte-1047437-1.html?zkPrintable=1&nopagination=1

#173 geneticistx on 03.13.12 at 3:08 pm

i sold my house privately a few weeks ago, got more than any other house of my size has sold for on the street. A house, a quasi-similar house on my street just sold on open market for $140K less than what i sold mine for (mine without an agent). the purchasers are 27 year old and 30 year old couple. House sold close to $900k in toronto.

Just got a call from the purchaser, asking for a visit with the bank appraiser. Hopefully, these kids won’t be on the hook for an extra 100 large or so when the appraiser comes back with a valuation less than what i sold it to them for.

when they visited recently, they brought their contractor and got a bunch of quotes on stuff on what to “spruce up” in my house. today, purchaser didn’t sound so happy, and told me they can’t afford to basically breathe once they move in and any renos are on hold.

I called my lawyer to make sure that I can keep their $85K deposit, just in case the purchaser’s parents can’t pony up the delta on the valuation compared to purchase price.

#174 Oceanside on 03.13.12 at 3:13 pm

#160 eaglebay – Parksville on 03.13.12 at 1:44 pm
#151 Stuck on the Island on 03.13.12 at 12:42 pm

Everything below the 49th parallel isn’t doing so great.
In Oceanside sold signs are starting to pop up.
Acreages, there are lots of them, are doing well.
Otherwise prices seems to have dropped a bit but no crashes.
——————————————————————–Qualicum North, first two weeks of March.
115 residential listings, 2 sales, One is a trailer that sold for $10,000 and a luxury home went for $850,000 on an asking price of $899,000

Parksville and Qualicum Beach, first two weeks.
556 residential listings, 16 sales so far, most expensive sold for $447,000

#175 CD on 03.13.12 at 3:17 pm

Garth, us Gen X/Y’ers haven’t only been suckered into the real estate trap, we were also suckered into an educational arms race just to compete for jobs.

In the last few years I have seen job postings of “MBA an Asset” change to “MBA required”.

As the brilliant poet Britney Spears quoted in a song “Gimme gimme more, Gimme more, Gimme gimme more, Gimme gimme more, Gimme” [debt].

#176 bill on 03.13.12 at 3:28 pm

157 Observer on 03.13.12 at 1:25 pm

you forgot the ten boomers going for any given job.
personally it took over 3 years to get a job at the sawmill
. it was never a permanent job so full time employment was a challenge.
you forgot a couple of recessions and various downturns
you also have no idea of the competition.
my grade 8 homeroom class met in the gym balcony seats as there werent enough class rooms even with the portables brought in.
55 kids in my home room times the 5 or so other grade 8 classes
it was never a ‘cakewalk’.
it was hard work .life is like that. get it? i have my doubts.

#177 Arse on 03.13.12 at 3:33 pm

I have given up predicting a housing bust in Canada for now. I have been wrong in the last 4 years.

I still believe houses are way over priced in Vancouver and Toronto with regards to average and median income of people living those areas.

I am not wishing for a crash in housing prices, nor am I jealous of those those who can afford to buy houses with cash. I am happy with the lifestyle I maintain within my means by renting an apartment.

At the moment I am daytrading CFDs, mainly the S&P500 and the DowJones Indexes. I have no emotional attachments to the markets I am trading in. I go with the intra-day trend and the money flow of the market at that instant and make a very good return.

#178 titosantana on 03.13.12 at 3:58 pm

“” No surprised about foreclosures in Nanaimo aka “surrey by the sea”

what’s in a Nanaimo Bar?

strippers and hells angels “”

ha thats funny and so true… i have been to Nanaimo a few times have an uncle there and witnessed 4 fights and a huge braul at a bar . actually i dont remember EVER going out in Nanaimo and seeing a fight or two!!! one was a total racist attack too. serious shit. the bouncer was telling us that that is “how it is” and that there was a murder in a bar a week before that particular incident. bottom line, it is no Surrey by the Sea … wow cant believe I just gave Surrey a compliment!!

#179 eddy on 03.13.12 at 3:59 pm

Why is Richmond Hill hot? for 729k (like blogger Houman, congrats BTW!) you get a decent place to live, compared to Leaside- where 730k might get you a 850 sq ft bungalow , but recently some have gone for over 800k

#180 Van guy on 03.13.12 at 4:08 pm

#154 eaglebay – Parksville on 03.13.12 at 12:51 pm
#136 Van guy on 03.13.12 at 11:08 am
“All this power, and all that torque in a Hummer, bu if yOu can’t take an exit at 160 km/hr, it’s pretty much no fun. For that money, get a caddy CTS-V, or Audi QX-7 Diesel V12.”
____________
Try driving anywhere off the fancy highway like mountains, valleys, trails and logging roads with your girly cars.
My wife drives the Caddy.
______________________________

I’m Asian. I drive on paved roads. You’re a booney boy, you don’t know wha paved roads are. I crave 0-60 miles in 5 or less seconds and extreme handling. I prefer imports, you prefer piece of crap domestics. I fast, you slow. I young, you old. How are you still alive after that wind storm?

#181 Harlee on 03.13.12 at 4:10 pm

Beach Girl #106
“How do the generations get labellked? From what year to what year? Gen X,Y,Z. Or just generally whiny?”
The best questions/comments from any poster I’ve read here for some time.Whining wasn’t permitted in my house when I was growing up. “I’m bored…” Answer: Then go DO something !

Smoking Man #125
I have no doubt that many are swarming into the GTA. But when they encounter the horrible unemployment rate and general resistance to innovation there they end up leaving for “greener pastures” : Alberta,Saskatchewan,… or to the Maritimes (where the unemployment is horrible too,but is cheaper to live).Maybe some go to the USA too ?

John Prine #135
A good post too. I like what you said about technology and being good neighbours,etc…I’m getting fed up with people texting, especially on the street. I’ve had a few young punks almost collide with me on the downtown sidewalks because of their constant diddling on their iphone toys…Grrr..I’m just an old crusty Boomer…!

#182 Sebee on 03.13.12 at 4:17 pm

http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/growing-fears-that-mf-global-will-get-off-easy/article2367927/

This MF Global must really make life easy for financial advisors. Ever have the feeling of being about on par with used car salesmen that’s to this?

On one hand you have a hard asset that will loose value, on other you have no end of financial firm scams which were “unintentional” or “accidental” – thus not punished. I know I loose a billion here or there by accident. Can’t blame some of you for building bunkers and getting more amo.

No credible advisor would recommend MF Global. Get serious. — Garth

#183 Beach Girl on 03.13.12 at 4:22 pm

Laughing today and walking the Beach with Miss Daisy and my son Alex (the oldest idiot). I got married 30 years ago today. Blew that Pop Stand many years ago. Not him so much. I just love being happy. Will never, ever marry again. Even if his ass was studded with diamonds.

#184 detalumis on 03.13.12 at 4:31 pm

#157, do your math again, the poster was 14 years old in 1972. They lump 18 years of people together into one huge lumpen generation and label them as boomers. He would have gone for his first job when unemployment was at a historical peak for the last 40 years close to 14% and bought his first house when mortgage were probably at least 12%. His life experiences are completely different than somebody born 8 years earlier. In my graduation class for e.g. there were zero jobs for nurses here in Ontario, the entire class had to move to places like Texas for employment.

#185 patiently waiting on 03.13.12 at 4:54 pm

This is odd . . . a 30% drop in sales in the Fraser Valley (one of Canada’s largest real estate boards). Haven’t seen this kind of drop in sales volume in a very very long time . . .

Fraser Valley Real Estate Board Sales Stats
(to March 13, 2012 – 8 of 21 Working Days)
MARCH 2012 Listings 1134 Sales 407
MARCH 2011 Listings 1151 Sales 582

#186 jess on 03.13.12 at 4:55 pm

From the Guardian Uk

“We assessed whether the financial incentives increased the risk of inappropriate selling and whether these risks were adequately controlled. At an individual firm level we found a number of incentive schemes that significantly increased the level of risk, which was not being adequately mitigated,” the FSA said.
The FSA’s own research shows that while the low interest rate environment may have helped make mortgages more affordable for customers, increases in other expenses have eroded some of these benefits for many households. The regulator said that higher use of forbearance since the banking crisis – where borrowers are given easier terms on their loans – have kept repossession and arrears rates lower than they might otherwise have been. ?

#187 Timing is Everything on 03.13.12 at 4:57 pm

#152 eaglebay – Parksville

I had the big Ford Power-Stroke 7.3L V8 Diesel 4×4, for a few years. I didn’t need it as much as I thought. Fuel mileage sucked. Sold it to some retiree from Campbell River for the same price I paid for it. He was going to tow a large 5th wheel.
I’m assuming you’re towing something (5th wheel?)with that Dura-scooter of yours….Besides houses, I mean.?

Anyway, I bought a Jeep Cherokee XJ (ie NOT Grand edition) 4×4 in-line six 4.0L with a manual 5 speed and a modest 3″ BDS lift kit and a set of BF Goodrich All-terrains. Bullet proof. Handles way better off road and in snow due to a very tight turning radius and short wheel base. 5-speed is a must…pretty hard to find though…90% were automatics and 4-door. Bought a utility trailer and it’s all we need. Good on fuel too…due to the 5-speed. Great on pavement also. Mines a 2-door but looks just like this…
http://tinyurl.com/6tq5zeg

I know, I know. If you live over the Malahat ya gotta have a little ‘monster’ truck. Looks cool at the local Timmy Ho’s.

Hummers…Don’t get me started.

#188 jess on 03.13.12 at 5:06 pm

181 detalumis

hospitals started accepting new registered nurses as volunteers, but with a twist: aside from providing free labor, the nurses had to pay so-called “training fees.” Salva and Krisma are two such “volunteer nurses” who paid two hospitals 3,000 pesos each in return for a three-month stint tending to patients.

“In the volunteer nurse scheme, hospitals are able to cut costs and at the same time raise revenues through the fees paid by the volunteer nurse or nurse trainees. This practice saves hospitals money because they don’t have to hire regular staff nurses,” Barcelo said…

http://www.gmanetwork.com/news/story/213475/news/specialreports/oversupply-of-nurses-forces-them-to-pay-to-work-for-free

#189 Devore on 03.13.12 at 5:27 pm

#140 static

Houses are already correcting. Ones money buys roughly 20% more home than in 2008. This is true for Vancouver and Toronto.

This is a very hard to calculate metric. Price per sqft would be a good start, but even this basic figure is not generally available. But it is also a volatile metric that would have to be normalized somehow.

BTW, it has been my premise that in many markets where the price is stable or even slightly rising, there are defacto price reductions. Buyers are still paying high prices, because the banks are lending it to them, but they are getting more for their money.

I think affordability (ie the monthly payment) is still the determining factor in Canada. But into this play aspects like lending criteria and credit availability. If credit tightens, affordability will instantly drop like a rock for many people, and with it, prices. While it is a factor, it’s not the only one. In many US cities affordability has hardly been better (if you can afford rent, you can buy for cheaper, and cheap 30 year mortgages) but prices are still dropping.

#190 Devore on 03.13.12 at 5:40 pm

#143 refinow

Hybrids really only make sense for fleets, such as taxis, which put on a lot of miles. The payback for EV is even longer, but the operating range/time is smaller.

The payback just isn’t there. By the time operating cost really makes a difference, the price will come way down, plus the technologies will be much more mature. For now, the hybrids and EVs require periodic battery replacements (oh, so green too), and when the most expensive maintenance you can do on a car is the electric systems, adding even more complexity will inevitably result in higher maintenance costs.

Early trailblazers and adopters will be the ones with the arrows in their backs, and in this case I’m happy to let fleets take the lead here, seeing as they’re the ones who can actually benefit from it from day one. For regular folks, it’s like paying indulgences so you can go to the green haven.

#191 real estate bear on 03.13.12 at 5:57 pm

regarding one trillion inheritance. Only saved money is transferred easily. Everything else has to be sold to some one else to be realized.

#192 bill on 03.13.12 at 5:59 pm

hey Steven Rowlandson on 03.13.12 at 6:33 am wrote

” The picture at the top of the page says it all.
Canada and much of the world is on the wrong path.”

could you enlighten us as to why you think that?

#193 Cato on 03.13.12 at 6:04 pm

Stagflation won’t be kind to most retirees, it will be a battle for even those with a retirement plan to keep up with rate of inflation.

The repercussions of the wealth transfer that occurred during the housing bubble will be felt for a generation. Deeply indebted youth won’t have the capital or economic freedom to pursue new opportunities, start new businesses or build wealth that drives economic growth. Capital that could have gone to more productive measures will simply be diverted to dead financial assets like houses. That means a lack of opportunities for all social classes. No investment opportunities for boomer investors, no new startups creating jobs for youth , no new tax revenue for gov’t.

I don’t bear any ill will towards boomer generation, I view the us vs them attitude developing as more a function of survival. The younger generations are realizing that most social programs will buckle under strain of boomer wave. If we perceive no long term personal benefit for the programs we are financing in our working years then it should come as no surprise that we will be pushing to see those programs cut to sustainable levels in the future. This younger generation will likely be forced to lean to the political right where their parents may have leaned to the left. Either way, regardless who holds power, the required cuts will be deep and brutal. Any boomers factoring these programs into their retirement planning need to wake up and start making other plans. Without thriving economic growth these social programs are going to buckle alot sooner then anyone expects.

#194 eaglebay - Parksville on 03.13.12 at 6:10 pm

#180 Van guy on 03.13.12 at 4:08 pm
“I’m Asian. I drive on paved roads. You’re a booney boy, you don’t know wha paved roads are. I crave 0-60 miles in 5 or less seconds and extreme handling. I prefer imports, you prefer piece of crap domestics. I fast, you slow. I young, you old. How are you still alive after that wind storm?”
_______________
ICBC in the lower mainland has more Asian drivers as customers than any other nationalities.
Body shops are full of Asian driven cars.
Gung Hei Fat Choy.

#195 Monster Cookie on 03.13.12 at 6:17 pm

China Does Capitalism Better Than America

For or against debate is live from intelligence squared.

http://intelligencesquaredus.org/

#196 eaglebay - Parksville on 03.13.12 at 6:23 pm

#187 Timing is Everything on 03.13.12 at 4:57 pm
“little ‘monster’ truck. Looks cool at the local Timmy Ho’s.”
__________
No, don’t do the Timmy Ho’s. Those that do have mostly used trucks with lift kits and no money by the looks of them.
I pull a big boat (ship). Also hunt all over the back country and in Northern Alberta.
The Jeep looks like a mini Hummer.

#197 TurnerNation on 03.13.12 at 6:35 pm

Here I sit, broken hearted – tried to short but only started.

#198 Van guy on 03.13.12 at 6:46 pm

#194 eaglebay – Parksville on 03.13.12 at 6:10 pm

What’s your point? Are you trying to be racist, by hinting something? C’mon old man, is that why you live in the woods?

#199 Westernman on 03.13.12 at 7:15 pm

Beach Girl@#183,
“Will never, ever marry again ” …
Somewhere there’s a guy who will be saved from a living hell…

#200 Nostradamus Le Mad Vlad on 03.13.12 at 7:42 pm

-
Today we investigate Hypnosis with Dave Allen, and how men can be led to do idiotic things (2:56 clip).
*
#102 Dan in Victoria — Good to see you back, Dan!
*
Public Banking Already working and growing in the US; Broken Promises Pensions are crashing everywhere; 5:07 clip Robber barons, continuing today; The US Fed’s next price fixing scheme. Give all boomers US$1 mln. for retirement and pay all their debts off! Banxters and 4closures; 5:20 clip EU pushing Greece to brink of civil war; China and rare earths Someone doesn’t like that China has a plethora of them, and wants part of it.
*
Congress: Impeach Obama or be arrested by him (before the election?); Canada Forfeiting our sovereignty? Gadaafi He contributed to Sarkozy’s election; Sarkozy boots him from Libya; dingbat dubya and big dick Cheney can no longer travel outside the US (they are war criminals); The Wall Not Floyd, a new perimeter between the US and Kannaduh; SArabia “Whom the United States would make war on, they first frame for 9-11!” wrh.com; Bill Clinton praises Obomba. “And JUST in time for the re-election campaign, too!” wrh.com. Not unless Obomba is impeached first; Myth that America is a fair country; So much for DNA “That technician and the prosecutor who put that kid behind bars ought to serve the rest of the sentence for rape.” wrh.com; 14:20 clip Agenda 21, or the UN’s attempt for a world land grab; Snooping Big Bruv is watching us (not that it matters); 4:06 clip Obomba sings bill into law — end of free speech.

#201 Bailing in BC on 03.13.12 at 7:45 pm

#155 Van guy

When it sold in 1999 for 7.9 it was the highest price ever for a house in Canada

#202 TurnerNation on 03.13.12 at 7:50 pm

Today, Ben Burn-a-yankee (Fed chairman) announced no change in interest rates.

Whack! “Thank you, Fed. May we have another?” :-(

Widows and orphans must make do with 1% returns.

#203 Timbo on 03.13.12 at 7:56 pm

http://michael-hudson.com/2012/03/mmt-as-the-austerity-alternative/

“When your real estate and your public enterprises have risen in price, this is not because they’ve actually grown. It is because a house and a property is worth whatever a bank will lend. And as the lending terms have been loosened, you’ve had this huge inflation in asset prices that is way beyond the ability of the economy to pay. Foreclosure time arrives and, so, financial capitalism turns into a bubble economy because the only way that banks can avoid default and a break in the chain of payments is to lend more money.”

interesting read but bring a grain of salt.

http://www.bloomberg.com/news/2012-03-12/spain-faces-eu-call-for-deeper-deficit-cuts-in-first-test-of-stiffer-rules.html

in Spain it will be raining on the plain.

now that was bad ;)

#204 bill on 03.13.12 at 8:08 pm

eagle bay wrote

”ICBC in the lower mainland has more Asian drivers as customers than any other nationalities.
Body shops are full of Asian driven cars.”

not quite . by far , new drivers and old drivers are the leading crashers.
no one nationality is to blame for the higher rates its just another cash grab….
the upper fraser valley is almost bereft of asians yet they crash with just as much frequency per capita.
as one gets closer to the core the accidents go up as there is lots more cars .

#205 Uh Oh Canada on 03.13.12 at 8:10 pm

The mind game:
Gas in Montreal spiked up to $1.50 two weeks ago. Now it’s been sitting at $1.40. The gas stations have successfully raised the price of fuel from average $1.20 to $1.40- which is now considered the normal price. (Almost bought a V8 GMC truck that week until I saw the price of gas.)

The real estate mind game:
Same process in over ten years. Made it seem normal to buy an old house for almost a million in Vancouver or Toronto.

#206 Spiltbongwater on 03.13.12 at 8:18 pm

ICBC in the lower mainland has more Asian drivers as customers than any other nationalities.
#194 eaglebay – Parksville on 03.13.12 at 6:10 pm

What nationality are the Asians again?

#207 Smoking Man on 03.13.12 at 8:27 pm

#181 Harlee on 03.13.12 at 4:10 pm

You’re making an assumption that those coming to the GTA are blue collar and looking to become tax farm slaves. Huge Loot is on the way with the new targeted migrants. The ones that will move out west are the ones living in basements who think getting a pay check is success. The ones on the way will be check writers.

#208 SaggyBottomBoomer on 03.13.12 at 8:29 pm

70TurnerNation on 03.13.12 at 12:07 am
“I bet the guy in today’s picture drives a Harley.”

One does not “Drive” a motorcycle of any ilk. Motorcycles much like horses are “ridden”

#209 TurnerNation on 03.13.12 at 8:33 pm

#119 Danforth on 03.13.12 at 8:21 am

Here you go:

http://www.cbc.ca/metromorning/

Tuesday March 13, 2012

Buy Or Rent?

Matt Galloway spoke with Gaby Kremnitz, she is a home owner in Mississauga. And then Matt spoke with renter Scott Tomenson, he is a wealth management consultant with Turner Tomenson and Associates here in Toronto.
Listen (runs 10:17)

#210 Daisy Mae on 03.13.12 at 8:40 pm

#183 – BEACH GIRL: “Will never, ever marry again. Even if his ass was studded with diamonds.”

***********************

Well, as Dr. Phil sez: “No relationship is better than a bad relationship.”

Anyway, in our gated community — which isn’t for boomers put out to pasture but rather, active seniors who like to travel and not worry about their homes while they’re away — we have five listings on the board, in a community of 149 homes plus clubhouse. Not moving. Except for the RE agents’ home, sold finally this spring after a very long time. She’d dug in her heels, her price was firm…..but I can’t give you details. One has to wonder what she knew that the general public didn’t. Except us, of course, following Garths’ daily blog.

#211 Ralph Cramdown on 03.13.12 at 8:47 pm

Widows and orphans must make do with 1% returns.

Anyone too dumb to get a better yield than that probably deserves to lend their money, interest free, to someone who can better utilize it.

#212 Beach Girl on 03.13.12 at 8:48 pm

#199 Westernman on 03.13.12 at 7:15 pm

Beach Girl@#183,
“Will never, ever marry again ” …
Somewhere there’s a guy who will be saved from a living hell…

____

You would definitely be off my list. LOL. Too happy today.

Has someone actually engaged your services. Doubt it. LMAO.

#213 bill on 03.13.12 at 9:00 pm

eagle bay wrote….”I pull a big boat (ship)”
its still a boat. yow! you sunday sailors are something else.
is it really big and long?

#214 OkanaganInvestor on 03.13.12 at 9:07 pm

#200 Nostradamus Le Mad Vlad on 03.13.12 at 7:42 pm

Your effort is appreciated, because it saves me a lot of time. Keep it coming.

#215 Westernman on 03.13.12 at 9:08 pm

Beach Girl @ # 211,
” You would definitly be off my list ”
Thank God!

#216 bubu on 03.13.12 at 9:09 pm

can this happen in some markets in Canada?

http://www.news.com.au/money/property/property-prices-battered-in-parts-of-australia-amid-heavy-discounting/story-e6frfmd0-1226297242759

#217 Harlee on 03.13.12 at 10:17 pm

Westernman #215
“Thank God!” Really old man,would God even have anything to do with you ? She probably doesn’t even realize you exist….

#218 Dan in Victoria on 03.13.12 at 10:23 pm

Timing is everything @134

Lego land is your basic cookie cutter subdivision, 5 house plans diffrent roofs and phony facades.
Vinyl siding 20 foot wide driveways …….
Its living hell for someone like me who appreciates”older”homes.

Thanks for the welcome Nosty, Ronaldo, Thing in the basement.
Good to see you’re here too Lorne.

#219 D-Dawg on 03.13.12 at 11:17 pm

The crash is upon us and yet in the video Eva M intimates that the distressed properties are not being listed at bargin basment prices.

A curious fact.

I suppose the rebuttal is the usual: just wait, it will happen.

#220 Island Living on 03.14.12 at 9:22 pm

Titosantana…you’re an idiot

——————————————————————-

“” No surprised about foreclosures in Nanaimo aka “surrey by the sea”

what’s in a Nanaimo Bar?

strippers and hells angels “”

“ha thats funny and so true… i have been to Nanaimo a few times have an uncle there and witnessed 4 fights and a huge braul at a bar . actually i dont remember EVER going out in Nanaimo and seeing a fight or two!!! one was a total racist attack too. serious shit. the bouncer was telling us that that is “how it is” and that there was a murder in a bar a week before that particular incident. bottom line, it is no Surrey by the Sea … wow cant believe I just gave Surrey a compliment!!”

——————————————————————-

Losers hang with losers…bar fights happen no matter where you are…bars are full of idiots.