Brilliant

flash

It could be small-city Canada, anywhere. Manufacturers have dried up and left town, and the population’s shrinking a little. But that hasn’t stopped condos from erupting like concrete mushrooms in recent years or the burbs from expanding. There’s the usual highway strip running through the heart of the place with hotels, bars, car dealerships and malls, plus the usual stores – Staples, Best Buy, Wal-Mart. The old downtown is still alive, but tattoo places now brush up against the mutual fund sales shops. Never a good sign. Gives tats a bad name.

Kelowna could be Guelph, Red Deer or Sherbrooke. Except this once-bustling Boomer destination in BC’s Okanagan Valley committed suicide along with Victoria, letting real estate values escalate to the point where the wrinklies stopped coming.

“As you know,” says Andy, “here in the Okanagan the housing market has been melting for some time.  Since early 2011, I’ve been tracking houses which have devalued by over $700k and still they sit there.  More foreclosures appear each week and developers are now laying-off their sales people.  The local real estate cartel try to disguise the stats, but it’s obvious to everyone who opens their eyes…”for sale” signs everywhere!”

AJHazzi  In the midst of this is a young realtor who, says Andy, “runs around here in a big bling Mercedes SUV.” It’s worth having a small look at AJ Hazzi, to see how an ambitious, competitive agent, who is also an amateur boxer and major consumer of hair gel, copes with a market that most people think is falling apart. His solution – dive in, and you don’t even need money!

“What you’re about to read is an extremely easy strategy to employ,” AJ wrote this week in the local media. “In fact by the time you’re done reading this you may wonder why you haven’t already done this a couple times over every year since you’ve been able. All it requires is for you to “tap” the existing equity in your home utilizing a line of credit.”

So, here’s the plan. First, borrow $200,000 against the equity in your home using a secured line of credit. Now take this money from the house and buy another house (a strategy right out of REIN’s play book). “It involves buying a property in the 160-190 range, one that would typically be a $250,000 property if not for the special selling circumstances,” says Mr. Gel. “What we are looking for here are distress sales, court ordered or estate sales, something that needs cosmetic help to reach its full potential.”

Okay, easy-peasy. Except for the land transfer tax, legals, appraisal and that stuff. No matter. We’re on the road to wealth, baby. God wants you to be rich.

“So lets fast forward for a moment, you’ve located a distress sale for 189,900 and made your offer, once you’ve negotiated the best price on the property say $180,000, you now have 20k left in your 200k budget to help this property get up to its full potential. Something in this price range can easily be totally overhauled for 10-20k even using professional contractors to do all the work. This is the fun part! Allowing 3-6 weeks for the renovations to complete, you have created a tremendous amount of what we call “sweat equity.” OK so now what? You’ve got a property that is now worth 250k and you are into it for $200,000 total after costs and renovations.”

Hey, how simple was that? Just spend ten or twenty thousand, and suddenly it turns into $50,000. Is AJ really Jesus, multiplying the loaves the fishes?

But wait. There’s more. Now hook up with an unethical mortgage broker, and the plan is almost complete.

“The mortgage broker will qualify you at 80% loan to value for a rental property. The property will bring in approximately 1300-1800 in rent which will more than offset the 850/mo mortgage and 150/mo property taxes. Once the loan against the clear title property is approved. The bank advances funds to your lawyer, your lawyer registers the mortgage to the property and a 200k cheque is waiting at the front desk of your legal beagle’s office.”

The hardest question, says Our Lord, is whether you should do it again, “or simply replace the equity you utilized from your primary residence and sit back and enjoy the fact that you have just created $50,000 in equity, hundreds of dollars in positive monthly cash-flow and a wealth building rental property that your tenant is paying off by almost 500 dollars per month, on a property that now stands you ZERO.”

So there you have it. Drain equity out of your declining home in a troubled market to buy an unwanted property that a distressed seller is dying to get rid of. Throw some paint around, create free money which you can then borrow because lenders are stupid or corrupt, and end up with $200,000 in debt, a tarted-up declining house and a tenant with a used F-150. Oh, and don’t forget to hire a miraculous agent.

“Some of you are thinking wow that’s brilliant! Some of your heads are spinning with information overload and have some major questions, either way please don’t hesitate to contact me for a one on one consultation.”

If the market isn’t dying, ethics are. Amen.

238 comments ↓

#1 [email protected] on 01.17.13 at 9:37 pm

I think lots will be doing just that!

#2 T.O. Bubble Boy on 01.17.13 at 9:39 pm

The solution to being over-invested in real estate is buying more real estate (with leverage).

brilliant indeed.

#3 Finally on 01.17.13 at 9:41 pm

I LOVE YOU GARTH!!!

#4 Really on 01.17.13 at 9:43 pm

what’s all the hubbub about first? I don’t get it?

#5 Von on 01.17.13 at 9:43 pm

First!! :)

#6 Mr. Happy on 01.17.13 at 9:44 pm

Wow…….

#7 TNT on 01.17.13 at 9:44 pm

Hey Garth

Will there ever be a time where buying a rental property in Toronto 416 be a viable business venture vs. a balanced portfolio?

Thanks

#8 Smoking Man on 01.17.13 at 9:46 pm

The bad beat jackpot……

Everyone’s premise here is real estate has to crash, cause it crashed in the USA, It crashed here, it crashed there. Income vs price ratios. Etc etc……

As a guru chart scientist and dyslexic code smith, f-en super human genius, who has discovered the universe is shrinking, I can tell you with certainty, real estate will not crash this year in the GTA

Why? because I use the same secret recipe evaluating the real estate market as I use to pick stocks and bonds, you all have witnessed small snips of info from me, Batman.

But there is more and I may share it one day, but not free. Why should I, when I first started out I lost 100g’s in a few months, paid for my education the hard way, being stubborn and stupid I loaded the account up some more, researched my brains out with dismal results, then one day flushing the toilet watching a log spin counter clock wise it hits me…The mother load of discoveries. Had nothing to do with the log or the spin, that’s just were I was the thought popped into this coconut. It’s all about xxxxxxxxx xxxxx xxx, charts tell you some of the story, then the secret sauce is applied and greater that 100% returns a year. Loses are small, gains are huge……..You only need to put on about 50 trades a year. So fricken easy.

From the audience that participates on here, only 3 or 4 would even bother trading SM Style……

The rest, wa wa wa, The gov’t sucks, realturds suck, wa wa wa, mortgage brokers suck, banksters suck. Wa wa wa…….home owners suck…wa wa wa

There is no hope for you, fear of loss, wishful bias, envy, jealousy, sour grapes because you missed a boat, and stopped looking for the next one…..

Many boats leave the dock everyday, am I the only one that seas them.

And I yes I know seas is spelt wrong, but I’m talking boats and water,. tough shit grammar Nazis, I thought it fit in nicely.

Weekend should be fun, getting shift faced in Atlantic City,

Gartho, Delete Button Heads Up………………

#9 Nietzsche on 01.17.13 at 9:48 pm

” There’s the usual highway strip running through the heart of the place with hotels, bars, car dealerships and malls, plus the usual stores – Staples, Best Buy, Wal-Mart.”

Don’t forget to mention the excessive kraft dinner consumption and Kia driving for this group.

#10 AJs Neighbor.. Literally on 01.17.13 at 9:48 pm

Thought I’d make things easier for AJ.. you can call him directally here!

2-1329 Ellis Street,
Kelowna BC, V1Y 9X5

P. 1-877-817-3133
F. 250-717-3193
T. 1-877-817-3133
E. [email protected]

#11 Adam on 01.17.13 at 9:48 pm

It’s hilarious how many people don’t stop to think “How come the guy that’s giving this ‘how to become rich with my 12 secrects of the stock market’ is giving a seminar instead of sipping martini’s on a beach in the Cayman Islands”?

Absolutely hilarious.

Awesome post, Garth.

#12 Babblemaster on 01.17.13 at 9:49 pm

Mr. Hazzi sure is snazzy looking with that neat haircut. I do wish I had hair. Unfortunately, back hair doesn’t count.

As bad as he is, there are many far worse (better?) examples of a lack of ethics. Ist ed, banksters. They are the ones that have allowed this nonsense to happen. The government, in the form of CMHC, also comes to mind. There are a lot of morally bankrupt basterds in our society. They are working to financially bankrupt the rest of us.

#13 Von on 01.17.13 at 9:49 pm

K now for the serious question. Since Ottawa approved another 50 billion dollars for mortgage insurance.. once we burn through all that, wouldn’t we run out of the greater fools? Sorry if its a little of topic for today’s story..

#14 jess on 01.17.13 at 9:49 pm

(*How greatly wages are influenced by emigrants and migrating labour is illustrated by the following passage from a speech by President Wilson on May 20th, 1918: ” When the American Secretary of Defence was in Italy, a member of the Italian Government enumerated to him the various reasons why Italy felt intimately connected with the United States. The Italian Minister remarked: –

‘If you wish to make an interesting experiment go into any troop-train and ask the soldiers in English which of them have been in America. The rest you will see for yourself.’

Our Secretary of Defence did board a troop-train and asked the men how many of them had been in America. It seems that more than half of them rose to their feet.”

The Italian receivers of rent had driven these men to America, and the American receivers of rent had driven them home again. Because they fared as badly in America as they had fared at home, the poor devils kept restlessly wandering to and from.

Wilson added: “There are American hearts in this Italian army!” But we know better; when these migrating workers left their country they cursed their fate, and they cursed their fate when they left America

http://www.silvio-gesell.de/en/neo/part1/4.htm

#15 Bob on 01.17.13 at 9:51 pm

But wait, theres more.
LMFAO

#16 AK on 01.17.13 at 9:52 pm

#5 Von on 01.17.13 at 9:43 pm

“First!! :)”

If you didn’t enter the smiley face, then you probably would have been 1st.

Next time, don’t be greedy and hit submit after the first(!).

#17 Lily joe on 01.17.13 at 9:52 pm

What a ladies man! If you watch his video, he looks away during the awkward moment while you make a decision towards financial suicide or not! Haha!
What he is really doing is letting you decide to get him a commission or not and could care less about you once you wake up in the morning!
Your awesome Garth, where do you find these clowns for us to giggle about?

#18 Fort Mac Flatlander on 01.17.13 at 9:52 pm

Hey to all Blog dogs,

I know this is a couple weeks old, but it looks like HAM is even coming to old Saskatchistan. “350 stores to introduce Canadian consumers to Chinese products.” Don’t we have Walmart to do that?

http://www.cbc.ca/news/canada/saskatchewan/story/2012/12/07/sk-shopping-complex-dundurn.html

Opinions?

#19 Troll69 on 01.17.13 at 9:52 pm

Here in Willowdale, Toronto, from the 401 up to the 407 on yonge, you can see countless cases like Mr. Andy.
Only difference is their last names are Iranians.

#20 Grim Reaper/Crypt Speculator on 01.17.13 at 9:54 pm

Just remember

Until you hit the Van Allen radiation belt, you can build up.

Thus…… no space shortage 4 hi -rises

Buy now or be …whatever….

#21 Stupid Canucks on 01.17.13 at 9:55 pm

This so called “brilliant” strategy led a lot a real estate “magnates” like this hifalutin agent to fast-track BK and the poor house in the U.S. a couple of years after their got their “real estate empire” off..to the ground. Been there…seen that. There is NEVER free lunch ANYWHERE in the world. There will always be a Bernie Madoff wannabe waiting in the wings of the next great Ponzi scheme.

#22 Bottoms_Up on 01.17.13 at 9:56 pm

Why don’t you just do it again? And again? And again? And why doesn’t everyone do it. It’s so easy, so risk free, DAMN, what am I doing just sitting here blogging at greaterfool when I could be out getting rich with little effort?

#23 Nietzsche on 01.17.13 at 9:58 pm

DELETED

#24 Thinking of buying for the first time in Victoria? on 01.17.13 at 9:58 pm

Thinking of buying for the first time in Victoria?

Don’t. Now is not the time to buy. The market has only recently started its long journey down. If you buy now with a minimal down payment, you will soon owe more on your mortgage than what you will be able to get for your property.

The US housing correction/crash is valuable to us as Canadians as it provides a warning that buying real estate at bubble prices is never a good idea.

Victoria and Vancouver have formed the biggest price bubbles in Canada, just like Miami, Phoenix, Los Angeles and Las Vegas did in the US. We all know what happened to house prices in those cities.

In Miami, this house lost a full 65% of its value. Also note that, officially, Miami’s median price corrected about 48%. It will definitely be worth it to take your time and make many lowball offers when you do decide to buy.

This Phoenix house lost 76% of its value, while, officially, prices in Phoenix dropped about 54%. Lowball when you buy in a declining market. You will be in control.

In Los Angeles, this house lost 62% of its value. Officially, prices in Los Angeles declined about 42%.

Canada is actually in a bigger price bubble than the US was at peak. Price/income ratio, price/rent ratio, overall average price, home ownership levels and household debt levels all support this.

Wait it out. Much lower prices are on the way. You will thank yourself.

#25 RayofLight on 01.17.13 at 10:02 pm

So look on the bright side. With real estate values tanking, it will be just that much easier to reach G-man’s “Rule of 90″ guidelines.

#26 Classic on 01.17.13 at 10:04 pm

Hasn’t everyone already done this already? I’d say about 50% of the Remax agents look like this guy :)

#27 Von on 01.17.13 at 10:05 pm

#16 AK on 01.17.13 at 9:52 pm

“If you didn’t enter the smiley face, then you probably would have been 1st.

Next time, don’t be greedy and hit submit after the first(!).”

Thanks for the tip, I forgot how many people come here. I’ve been reading this blog everyday for a couple months now and never posted once. After seeing no comments, i felt a powerful urge to post “First :)”

#28 Bob on 01.17.13 at 10:09 pm

Here is a refresher course of what Canada has to look forward to. Is Canadas real estate market too big to fail?
http://www.youtube.com/watch?v=N_xy2uWpt68

#29 pathcontrolmonk on 01.17.13 at 10:11 pm

Just talked to a friend trying to decide which agent to use to sell his house in central Vancouver. One agent is telling him to drop his price drastically to beat reduced prices in the Spring. The other agent is telling him that he has to keep his price above $1 mil to attract HAMs. Still too many agents with the former pitch and too many people who want to believe it.

#30 Darklan on 01.17.13 at 10:12 pm

Hi Garth and Blogdogs

I have been meaning to run a scenario by you for months but have been shy to write. However your post tonight is very close to what my friends have done so here goes:

In 2008 they took all their savings and money from family total of 150K and bought a 300k loft through private sale from another friend. By 2010 it was appraised at 400k. They took 80% equity from it and bought a condo straight from builder. So on the condo they were left with 70k mortgage and transferred rate of 2%. The Loft mortgage was now set at 2.75% and they write it off as investment(business?) cost. It is rented out and covers the mortgage on itself. They are paying the one on condo.The value of condo has been appraised at 500k.

They think of buying and doing this scenario again Both have government jobs.

Foolproof?

#31 Smoking Man on 01.17.13 at 10:14 pm

Don’t bother trying to figure out secret sauce, last post.

xxxxxxxxx xxxxx xxx

Just realized I spelled it wrong.

#32 Freedom First on 01.17.13 at 10:18 pm

Yes, sad but true the state of so many people lacking ethics in the world. Realtor AJ is another example, and would have also fit well in Garth’s recent blogs: “Trust us”, and “The Manipulators”. Garth, thank you so much for introducing people like AJ to the public with such a fine introduction. It is much appreciated……eh AJ? .:)

#33 pathcontrolmonk on 01.17.13 at 10:18 pm

For the truly morbidly curious, check out AJ spending the spoils of his labour with his bikini clad GF
https://www.facebook.com/aj.hazzi/photos_stream

#34 pathcontrolmonk on 01.17.13 at 10:20 pm

#29 should read: Still too many agents with the latter pitch and too many people who want to believe it.

#35 Von on 01.17.13 at 10:20 pm

Real estate is so expensive right now its crazy. I was checking the house prices in Burlington and most of the houses cost over 500k!! This is Burlington!! Like really, are people that stupid? I told my wife unless prices drop by at least 30 percent, there is no way in hell i will be buying a house. A lot of people get into buying a home without knowing the extra costs of owning a home. Someone i know just bought a house and after paying all the bills, he barely have money to pump gas!! Seriously, what is wrong with these people? Sorry Im just venting.

#36 Edmonton to Halifax on 01.17.13 at 10:22 pm

Why only catch one falling knife when you can follow my simple strategy and catch many!

#37 EIT on 01.17.13 at 10:23 pm

OMG, why don’t they just burn the places down. Insurance fraud has got to be easier than this shit.

#38 TurnerNation on 01.17.13 at 10:24 pm

Attn. new blog dogs. The following usernames are still available; reserve yours today.

Dr. Wayne’s Dr. Wayne

Joe Howmuchamonth

Garthospherian

Chancellor Rebalancer

Dr. Whine

Stephan Who?

Mr. Morley Superior (Canadian).

Hooked on Boomernomics

Reserved:

Sir Blog Dog Carney

#39 ChickenLittle on 01.17.13 at 10:32 pm

Hey Smoking Man!! What is this “secret sauce” I have to apply? HAHA!! I can’t believe you spelled “recipe” right. You must have your dictionary beside you tonight.
As for this RE guys “secret sauce” alchemy recipe for magically turning unwanted properties to gold… What The !@#$? He lost me when he said to BUY one in the first place.
I can’t believe that Kelowna is in such bad shape. We used to spend christmas there! And it was nice! Shame!

#40 Party On Garth on 01.17.13 at 10:32 pm

God bless those realtors. They just want to share their wisdom to help the average guy get rich. They are always thinking about others, never about themselves. So selfless.

#41 ANON on 01.17.13 at 10:32 pm

“I swear it works! (it just blew up because of technical difficulties) The concept is bullet proof!”
AJ Hazzi, Ph.D. – First perpetuum mobile inventor.

#42 Mmmhmm on 01.17.13 at 10:33 pm

I still definitely would.

#43 the Real Kip on 01.17.13 at 10:36 pm

“Throw some paint around, create free money which you can then borrow because lenders are stupid or corrupt, and end up with $200,000 in debt, a tarted-up declining house and a tenant with a used F-150″

Hey, I used to drive an F-150! Nice truck too.

#44 Smoking Man on 01.17.13 at 10:37 pm

Man you dogs just don’t get it. some 30 posts so far,

60% chirping people that, are not honest, that lie, that cheat, that are un ethical.

Why do you chirp and not learn,

you want big ass house, a nice car, a cute mistress or two.

Get with the program…….stop whining…..

Do you not see the damage your teachers did to you….

O the schooled don’t think you can be saved…..

#45 Just Say No on 01.17.13 at 10:37 pm

Rent doesn’t cover mortgages like it use to especially when tenants have a hard time with employment. What to do with all these vacant homes that do not sell or get rented? Maybe the owners could hire security companies to monitor these places for insurance purposes. “Home check drive by security for sellers” could be the next business venture for many Canadians? Is your vacant home secure? Home flippers become home collectors which becomes such a burden. How many properties are you stuck with? I just love the Brilliant message today.

#46 Djb on 01.17.13 at 10:40 pm

Sounds great until you blow up you GDS/TDS
after the purchase of said first spec house, then what?

#47 mr-b buddy on 01.17.13 at 10:42 pm

#43 The Real Kip
“Hey, I used to drive an F-150!”
I hope you learned from your mistake?

#48 Rob on 01.17.13 at 10:42 pm

Thats a very irresponsible way to manage your finances but people are people. Look at the bright side, the more screwed the greedy people are the better it will be for the vultures. Good times…

#49 kreditanstalt on 01.17.13 at 10:43 pm

Fixed-income junkies too are going to need one hell of a lot of reliable, wage- or profit-earning renters to keep their REITs paying out, aren’t they?

Works until you run out of other people’s money…

#50 a prairie dawg on 01.17.13 at 10:44 pm

Dr. Wayne, code blue in room #5

Dr. Wayne, code blue in room #5

#51 Brendan on 01.17.13 at 10:48 pm

I found this site online. Apparently things are getting so bad that realtors will start bidding down their commissions just to get clients. No more hummers and range rovers in your local RE agent’s office.
http://www.commissionpitch.com/

#52 Mithan on 01.17.13 at 10:49 pm

I view debt as being bad personally. It seems that every time the business cycle turns bad, those with stupid debt get hammered. I wish lots of luck to mr. Hazzi’s clients….

#53 Smoking Man on 01.17.13 at 10:51 pm

#24 Thinking of buying for the first time in Victoria? on 01.17.13 at 9:58 pm

Cherry picking motivated by wish full bias. Las Veges, Phenox. Markets that shot up over 100% in less than a year, sold to street people………

How about, San Fran, Manhattan… Charlotte.

dork

#54 Mic D'angelo on 01.17.13 at 10:53 pm

If you borrow money to invest it is called leverage. Buying stocks with borrowed money is called buying on margin. If you borrowed money from real estate to buy more real estate with falling prices like the London bridge it should be called buying on moron. This is why I research any investment I make and don’t borrow money to invest. I research, think, analyze and make my own informed realistic decision based on facts and figures. Real estate is not a place to live anymore but a casino that is a rigged, blood sucking industry that reeks of desperation and so called experts that always get their cut which is closing costs of 7% to 10%. The problem is that people are not only financially illiterate but are in a mathematically zombie state of believing the Utopia that real estate will always go up with no limit. People grow up and be responsible and stop acting like children believing in a money Santa Clause.

#55 bclandguy on 01.17.13 at 10:54 pm

re: regarding AJ Hazzi,

Is this guy for real!!!, wow…and wow again, hopefully he will take full responsibility for his write up for the years to come….and I really feel sorry for anyone who takes his advice. I am in BC and know the OK market a bit, it is bad.

#56 Patiently Waiting on 01.17.13 at 10:55 pm

pathcontrolmonk on 01.17.13 at 10:11 pm

Just talked to a friend trying to decide which agent to use to sell his house in central Vancouver. One agent is telling him to drop his price drastically to beat reduced prices in the Spring. The other agent is telling him that he has to keep his price above $1 mil to attract HAMs. Still too many agents with the former pitch and too many people who want to believe it.
———————————————————-

Correct your are … HAM is legendary in Vancouver. I have a similar friend who recently put them home for sale. In 2012 they received several offers from HAM but refused to sell, as all offers were below their magic number (3 million). They have put it back on the market in January hoping for Chinese New Year HAM … so far not a single showing … I tried to tell them, but they had a realtor “friend” who told them not to worry, that Chinese New Year would bring HAM for all …

pw

#57 Party On Garth on 01.17.13 at 10:55 pm

And the great thing is….even if the worst happens, and the value of the house drops, you can just BUY ANOTHER ONE !! Average down baby ! Just like a stock! Call me today for details.

#58 Patiently Waiting on 01.17.13 at 10:57 pm

FYI: Fraser Valley Real Estate Board had 148 new listings today and only 21 solds reported.

New Listings 148
Back On Market Listings 3
Price Changes 23
Sold Listings 21

pw

#59 Lil' Saskatoon Disturber on 01.17.13 at 10:59 pm

Hey #18 Fort Mac Flatlander, I think that I would be adding Dundurn to the list of famous chinese projects like Ordos. I’d suspect Brightenview is a chinese financed shell company.

The track record to date for chinese financed mega developments is MT! Ha Ha (empty).

I’m still wonder; really have no hope, for that South Downtown development to get started. Ooooh all that excitement for getting the city to sell the property below market value?

#60 Not 1st on 01.17.13 at 11:03 pm

Garth, I think that sign means vampires are stalking the RE market ready to draw blood at any time.

#61 Bottoms_Up on 01.17.13 at 11:04 pm

#35 Von on 01.17.13 at 10:20 pm
——————————————
I would think Burlington is 25% overvalued. A townhouse in Burlington shouldn’t cost upwards of $400,000. It is Burlington after all.

#62 a prairie dawg on 01.17.13 at 11:05 pm

From the opening paragraph, I do believe they’re saying it’s different this time. lol

Banks see more evidence of slowing mortgage growth
http://business.financialpost.com/2013/01/17/banks-see-more-evidence-of-slowing-mortgage-growth/

#63 bclandguy on 01.17.13 at 11:05 pm

#8 Smoking Man,
Great post!!, I agree with you fully, there is still lots of money to be made in the stock market, I have some questions, how can I get a hold of you and I don’t mind paying a fee for smarts!!
Cheers

#64 Bottoms_Up on 01.17.13 at 11:06 pm

#30 Darklan on 01.17.13 at 10:12 pm
————————————-
Foolproof? Foolish! They should get out while the gettin’ out is still (relatively) good.

#65 Snowboid on 01.17.13 at 11:06 pm

This appeared to be an interesting ‘flip’ by Hazzi we first looked at when listed at $ 299,500 about a year ago.

Not impressed with the renos, and a contractor (relative) with us was chuckling throughout our tour.

Here it is a year later, still on the market after a few ‘relistings’ – but now at $ 244,000.

http://www.realtor.ca/propertyDetails.aspx?propertyId=12628247&PidKey=461916689

Methinks the flipper flopped.

#66 bclandguy on 01.17.13 at 11:13 pm

#10, thank you, I do want to make a call to him as I have family and friends that live in the OK and are concerned about the plummeting market.

#67 claudius emperor on 01.17.13 at 11:18 pm

Saw an ad on a bus today:
Property brothers…..
http://www.cineflixproductions.com/shows/112-Buying-Selling-with-the-Property-Brothers

#68 a prairie dawg on 01.17.13 at 11:20 pm

China GDP surprises. Market yawns.

http://www.businessinsider.com/china-q4-2012-gdp-2013-1

#69 Paolo on 01.17.13 at 11:23 pm

Wow! Just sad.

How wil this end?

#70 piazzi on 01.17.13 at 11:26 pm

Garth

you expect interest rates to rise

at what point, or at what percentage point, will they negatively impact income-bearing stuff like preferred, utilities, corp bonds, etc

Depends on demand. Bonds will be hit first and harder. — Garth

#71 Dr. WAYNE on 01.17.13 at 11:26 pm

#5 Von on 01.17.13 at 9:43 pm

First!! :)

=====================

We had ‘one’ day of the venerable Mr. Turner’s postings where it was free and clear of ‘Firsts’ … however, today the mindless, moronic, idiotic a$$hole(s) are back …

I thought I was unemployed for a while there …

#72 Debt's Dark Embrace on 01.17.13 at 11:28 pm

You are in trouble now Garth !!! Just wait until DA gets home and sees this………..

#73 Bill Hutchison on 01.17.13 at 11:30 pm

Things a bit slow here in RE.
Sales down about the same as the big cities with listings growing.

My neighbor’s have reduced their listing but after 8 months, 3 open houses in the summer and a reduction in price, they still can’t seem to sell it to net the same price as apid counting all the expenses.

A slow melt has begun.
The spinoffs (in jobs and activities) are not evident yet but they will show up unless a stimulus arrives in some form.

Garth loves a challenge so …
time for a column tying in fake girlfriends and RE.

#74 Ronaldo on 01.17.13 at 11:50 pm

#60 Not 1st – ”Garth, I think that sign means vampires are stalking the RE market ready to draw blood at any time.”

Actually, that sign is on the corner of Abbot and Harvey just as you come off the bridge in Kelowna and it is warning motorists to be on the alert for ”laid off” realtors that are looking for work at the local strip joint.

#75 furst on 01.17.13 at 11:51 pm

#71 Dr. WAYNE on 01.17.13 at 11:26 pm
I thought I was unemployed for a while there …
_____________________________________________.
A comparative study – A poem by Furst about Dr.Wayne

DELETED

#76 view on 01.17.13 at 11:54 pm

“Canada is actually in a bigger price bubble than the US was at peak. Price/income ratio, price/rent ratio”

Interesting article in the Economist. I’m sure someone posted this by now.

“price-earnings ratio used for equities, with the rents going to property investors (or saved by homeowners) equivalent to corporate profits. The measure displays a massive range, from a whopping 78% overvaluation in Canada ”

http://www.economist.com/news/finance-and-economics/21569396-our-latest-round-up-shows-many-housing-markets-are-still-dumps-home

#77 Thinking of buying for the first time in Victoria? on 01.17.13 at 11:56 pm

#53 Smoking Man

“Cherry picking motivated by wish full bias. Las Veges, Phenox. Markets that shot up over 100% in less than a year, sold to street people………

How about, San Fran, Manhattan… Charlotte.

dork”

I checked the house price run-ups for Miami, L.A., Phoenix and Las Vegas. None of these cities were markets “that shot up over 100% in less than a year…”
Victoria’s price run-up wasn’t unlike that of any US city.

San Francisco lost 45% from peak, as much or more than L.A.

Charlotte lost 20% from peak (Zillow), but it did not experience much of a price run-up at all. This is not a city that can be compared to Victoria as Victoria experienced a massive price run-up, similar to L.A., Las Vegas, Miami and Phoenix, among others.

Charlotte house prices declined below levels seen in 2000-2002.

Victoria, in no way, can be compared to Manhattan, which is a very affluent borough of NYC, which is a world-class city. (Victoria doesn’t compare to San Francisco in any way either.)

Manhattan house prices declined by 36% (Zillow), even though it did not experience much of a price run-up.

Victoria experienced a rapid, dramatic increase in house prices. Incomes do not support current house prices at all. We will now see prices decline to the level where incomes provide support. It will be a long way down to the bottom.

#78 White Rock Mom on 01.17.13 at 11:57 pm

New scam to watch out for!
My friend has his house for sale. I saw it on Craigslist for rent. I asked him “is your house for rent?” He replies “No!” So his brilliant real estate agent has been showing his house to people that are about to be scammed out of their rental deposits. His real estate agent has no idea because he doesn’t speak the same language.

#79 Conrad on 01.18.13 at 12:00 am

Geeze this guy needs to be cracked upside the head. What kind of BS is that? Sounds like the same advice a “friend” of mine total me and that I bought hook line and sinker to buy dividend producing stock that tanked, even though it was suppose to be secure…..

FXXXXXg agents, what the hell do they do, anything to line their pockets on someone elses dime.

#80 Smoking Man on 01.18.13 at 12:02 am

Seriously garth lol The vanish !!!!!!

when have I ever followed threw with a book.

o man, where is your humor gene.. The Universe.

LMFAO

#81 Bo Xilai on 01.18.13 at 12:06 am

Looks like Mr. AJ Hazzi has had some disciplinary problems with the Real Estate Council of British Columbia… Suspended for 30 days back in 2008. He was disciplined for “Incompetence, stakeholder provisions, duty to act honestly and with reasonable care and skill, duties to clients”. I wonder how he was able to make the lease payment on the Mercedes that month…

http://www.recbc.ca/2008/01/recbc-discipline-decision-adrian-hazzi/

#82 Vangrrl on 01.18.13 at 12:08 am

Does he explain where these tenants willing to pay up to 1800 a month- in Kelowna- are coming from? Perhaps he’s hiding them in his hair.

#83 dosouth on 01.18.13 at 12:10 am

I am not sure whether my post a few days ago about this fellow helped you in exposing his weekly investment column on the Castanet site, but your’s is a great article.

His sanction is noted on the BCREB site with a “no removal” tag at the bottom. Meaning no 1-3-5 year mea culpa removal date. His indiscrepancies will remain on their site and yet here he is, still selling and preaching. Gives the rest of the industry a good name….. (tongue in cheek)

#84 furst on 01.18.13 at 12:12 am

#75 furst on 01.17.13 at 11:51 pm
_____________________________________________.
A comparative study – A poem by Furst about Dr.Wayne

DELETED

SWEET!!! My first deleted post. I guess it wasn’t PG enough for this blog. To summarize, I’m hot and Dr. Wayne’s NOT.

#85 Smoking Man on 01.18.13 at 12:13 am

#77 Thinking of buying for the first time in Victoria? on 01.17.13 at 11:56 pm

I hope your right, it’s got to suck for you living in a mold infested basement all these years.

#86 Holy crap where's the Tylenol on 01.18.13 at 12:17 am

#8 Smoking Man on 01.17.13 at 9:46 pm
The bad beat jackpot……

Everyone’s premise here is real estate has to crash, cause it crashed in the USA, It crashed here, it crashed there. Income vs price ratios. Etc etc……

As a guru chart scientist and dyslexic code smith, f-en super human genius, who has discovered the universe is shrinking, I can tell you with certainty, real estate will not crash this year in the GTA

Why? because I use the same secret recipe evaluating the real estate market as I use to pick stocks and bonds, you all have witnessed small snips of info from me, Batman.
Smoking Man if you truly have the Secret McSauce , The Colonels secret recipe, or the Cadbury Secret you would be wise either Patent it, licence it or keep quiet about it! Once you lead the herd to water they will drink it dry every time! Be a stealthy investor!

#87 Triplenet on 01.18.13 at 12:22 am

Hey Smoking Man

Forget Atlantic City and getting drunk – join us in Costa Rica for the month having a few pops at the pool after golf and and 2013 meetings.
Westjet direct from Toronto – hang 10 in 5.
Unethical perhaps but not illegal. Google Playa Flamingo, we’re here every year. Pura Vida!

#88 Mr Buyer on 01.18.13 at 12:28 am

#8 Smoking Man on 01.17.13 at 9:46 pm
As a guru chart scientist and dyslexic code smith, f-en super human genius, who has discovered the universe is shrinking, I can tell you with certainty, real estate will not crash this year in the GTA
………………………………………………………………
It will not because Smoking Man said so

#89 think again on 01.18.13 at 12:32 am

…make a commission coming and going with no headaches…greater fools are becoming extinct…

#90 Gary in Kelowna on 01.18.13 at 12:32 am

Garth,
Thanks for the best laugh I have had in a while. I actually read this realtor’s column here yesterday and was incredulous that he would put that in the local media. I am glad someone here sent this to you for a tune up. Keep up the great work.

#91 Tony on 01.18.13 at 12:33 am

Re: #35 Von on 01.17.13 at 10:20 pm

No house should cost more than around 150 grand in Burlington because you have to factor in the cost of a helicopter and a heliport.

#92 Steven Rowlandson on 01.18.13 at 12:41 am

I have no doubt that the real estate cultists and their priesthood will be in denial of their financial extinction in progress for some time to come. Dreams and delusions die hard.

#93 Don on 01.18.13 at 12:41 am

#63 bclandguy on 01.17.13 at 11:05 pm

#8 Smoking Man,
Great post!!, I agree with you fully, there is still lots of money to be made in the stock market, I have some questions, how can I get a hold of you and I don’t mind paying a fee for smarts!!
Cheers
*****************************

Geezus…a groupie or a self post?

And Yes SM, Victoria is done, Don’t buy in Victoria handle was bang on and so is Garth. There are no fundamentals as well there are other places to retire that are less hectic and away from all those dangerous young folks and highways. We get wet snow out here.

Vancouver is delusional, they are caught in the herd mentality and ‘looking the part’ and then “we had to reno”. Organized crime launders money using real estate (also include grow ops and meth labs in up scale neigborhoods – less suspicious as the rich wouldn’t do that). Currently a blood bath in gang warfare in Van area. Yup the Best Place on Earth!

Toronto caught on, that Vancouver was beating them in appeal and knocking them off as the place to be in Canada. It’s the herd, jones mentality.

It’s not sustainable, nothing is. Lie cheat and steal, now that’s the way to get ahead, but karma is a bitch. For those lucky enough to play the game and win, congrats, knowledge is empowering. And the Next bubble is shortly to arrive…it has too, it’s the new age sign of hope and carnival.

#94 eviee1973 on 01.18.13 at 12:51 am

Interesting the scams local industry real estate/developers create when the main quality employer Western Star Trucks was closed down in 2002, and then all the related suppliers such as Northside Industries are reduced to a fraction, or eliminated.

#95 REBear on 01.18.13 at 12:53 am

Interesting article on NY real estate, notice the part on a 37 room unit sold in 1969 for less than when it was built in 1929, $225,000 vs $250,000 in ’29… shows what can happen even in the largest cities if prices get out of hand

http://www.thedailybeast.com/newsweek/2013/01/13/where-the-money-lives-new-york-real-estate-today.html

#96 Coho on 01.18.13 at 12:55 am

There’s a sentence missing at the very end of AJ’s strategy which should read, “Then the alarm clock sounded and you woke up”!

#97 Lost Soul on 01.18.13 at 12:56 am

http://www.youtube.com/watch?v=K853GykeGH0

Hey this AJ Hazzi guy should have an infomercial..maybe he graduated from that Tom Vu guy’s program..haha!

#98 Grim Reaper/Crypt Speculator on 01.18.13 at 1:03 am

Well…glad Garth’s soft porn police allowed this post.

However not sure why we have Dr Wanker’s “flashing” sign advertising body parts 4 sale (buy kidney/liver /brain/gonads now or 4 EV ERR…yada yada yada .)………as the visual….or is is Batman flashing Wonder Woman?

..ahh whats the difference

#99 dutch4505 on 01.18.13 at 1:03 am

a few weeks ago i commented about the chartered accountant in surrey being investigated for providing false income statements, so that his clients could get mortgages. also the accountant’s brother is a mortgage broker. i wonder how many times this is being repeated across canada? but then who cares….the tax payers will cover any losses that cmhc will occur, and the bad guys will only get a slap on the wrist. remember this is canada.

#100 LS in Arbutus on 01.18.13 at 1:04 am

A new favourite website on Vancouver Real Estate… I am sure someone MUST have posted the link before, but just in case you missed it.

http://vancouverpricedrop.wordpress.com/

#101 Investx on 01.18.13 at 1:06 am

Hey DA,

Does this agent appear to follow the strict code of ethics of the RE industry you mentioned a few posts back?

LOL.

#102 Nostradamus Le Mad Vlad on 01.18.13 at 1:07 am

-
“His solution – dive in, and you don’t even need money! Brilliant!” — I smell the birth of another Charles Ponzi, so take it to another level, Charles!
*
Gold Nugget A lot of talk on various sites is about gold, such as here. With China supposedly starting a new gold-backed Renmibi (for stability), Germany and other countries wanting their holdings taken back home from the US, Libya’s (and other MEast countries having had their gold looted by NATO – US – UN, one starts to consider the option of the US bringing back a gold-backed currency. It also helps that this is ready to go.

With A. E. Pritchard’s article today — New Gold Standard — the financial incapabilities of countries and people being way over their heads with debts and deficits, the US could pull a fast one on everybody, and revert back to a gold-backed dollar. What of the west’s interference in Mali, against ‘Islamist terrorists’? cite>”Note that the two nations caught up in this scandal, France and the US, have suddenly decided to invade Mali, one of the world’s largest gold producers! Wars to please the bankers don’t get more obvious than this!”wrh.com. As the western economies, incl. Israel’s, continue to unwind at greater speed, what else can they do, except create wars while blaming terrorists. Robbing Mali to pay Germany and then there is Ebola, conveniently arriving in Asia at the same time. Everything is connected, it just takes a little digging to find it! Gold, silver or platinum miners or ETFs for TFSAs? Methinx yes!
*
4:37 clip BoA won’t take credit / debit purchases on guns or ammo. Banxters are in on this; Ummm, oh dear My mistake! USPS Out of money by Oct.? Euro Car Woes.
*
4:26 clip Absolutely hilarious explanation of 9-11, crackpot tin foil cheese heads. This is the truth and SMan, you will enjoy these juveniles! Hookers / Gigolos Times are tough, but this takes the cake; Politicos – What are they good for? Homer Simpson and Agenda 21 Not quite, and Agenda 21 Hot stuff; Feb. 15, 2013 Asteroid close enough to knock satellites out? David Cameron isn’t too fond of the EU; Foot of Snow GW? Yep! BacteriaMan Which came first? The bacteria, chicken, egg or human? QE2 Not Bernanke’s QE, the ship is sailing again; Dark and Light Side of the moon, explained by MIT; Obother No impeachment.

#103 45north on 01.18.13 at 1:24 am

Thinking of buying for the first time in Victoria:

Case Shiller peak to trough:
Las Vegas: -59.9%
New York -23.4%
Charlotte -14.6
San Francisco -35.1%

http://www.nytimes.com/interactive/2011/05/31/business/economy/case-shiller-index.html?ref=business#city/SF

real estate in Canada is going down the same path – not exactly but close enough.

#104 Commission Pitch on 01.18.13 at 1:28 am

Brendan,

Thank you for taking an interest in Commission Pitch! It certainly isn’t Commission Pitch’s main objective to cause agents to reduce their commissions (agents can offer whatever commission rates they see fit), although it tends to be a by-product of increased choice on the part of homebuyers and homesellers.

Commission Pitch’s objective is to help homebuyers and homesellers make smart decisions when choosing a real estate agent, and to provide a forum where agents can engage with prospective clients. We look forward to helping agents connect with local homebuyers and homesellers!

Thanks,

The Commission Pitch Team

#105 Commission Pitch on 01.18.13 at 1:37 am

Brendan,

Thank you for taking an interest in Commission Pitch! It certainly isn’t Commission Pitch’s main objective to cause agents to reduce their commissions (agents can offer whatever commission rates they see fit), although it tends to be a by-product of increased choice on the part of homebuyers and homesellers.

Commission Pitch’s objective is to help homebuyers and homesellers make smart decisions when choosing a real estate agent, and to provide a forum where agents can engage with prospective clients. We look forward to helping agents connect with local homebuyers and homesellers!

Thanks,

The Commission Pitch Team
http://www.commissionpitch.com

#106 TJ on 01.18.13 at 2:01 am

Corrupt mortgage brokers??? In Canada??? But our system is so flawless! There isn’t any incentive for fraud. You know, the way the CMHC aka taxpayers take on all the risk while the banks, realtors and mortgage brokers rake in the dough. Definitely nothing shadey going on around here.

#107 Smoking Man's Old Man on 01.18.13 at 2:05 am

Is the the “Batman” sign that Smoking Man’s always referring to in his stock analysis…

#108 Scott in Gibsons on 01.18.13 at 2:09 am

I remember reading a story about a Japanese couple who pounced on a “deal” early in the 90′s collapse. Thier purchase fell over 50% from there and they were economically devestated for the rest of their lives because of the debt.

Human nature being what it is, the exact same thing will happen in Canada.

#109 Thinking of buying for the first time in Victoria? on 01.18.13 at 2:27 am

#85 Smoking Man

“I hope your right, it’s got to suck for you living in a mold infested basement all these years.”

Are you sure that I don’t currently own real estate?

Victoria real estate is probably already down 20% from peak. There are houses listed for 34% and 36% below assessment. If you accept that prices are declining and will not stop for years , you will eventually carry less anger.

#110 Marko Juras on 01.18.13 at 3:02 am

DELETED

#111 Rc on 01.18.13 at 4:38 am

As the story go same wine different bottle.

#112 Confused in the GTA on 01.18.13 at 5:41 am

After I saw there was no reply to my post yesterday, I have to admit I was a little dissapointed, Garth.
But today, a whole entry on the subject! I feel special!
Thank you, sir

#113 JR on 01.18.13 at 5:54 am

http://www.multpl.com/shiller-pe/

The market has had a good run but I just ordered up some nice trailing stops on all my equity etf’s and preferred’s. Rebuy when the market has more value and is more in line with world fundamentals, not just political money printing

#114 drydock on 01.18.13 at 6:01 am

#5

Look around, see all the problems we face as a species today.
I can’t imagine what it will be like in the not to distant future when 10 billion people walk the earth.
That box of KD might be viewed as manna from heaven in a post peak everything escalating man made hell.
All that aside, the secret to primo KD is not to overcook the noodles and after following the directions add a generous dollop of Hellman’s mayo and season with cayenne pepper, salt to taste.
Ambrosia, food of the god’s man.

#115 betamax on 01.18.13 at 6:09 am

Lots of people in the US followed this Ponzi scheme till the bottom fell out of the market and they went bankrupt. It all works till it doesn’t.

I remember one forum bull bragging about his eleven houses bought with borrowed equity and arguing against a crash. Then the market imploded and in his last post he admitted his impending bankruptcy and said he was so stressed that he just threw up in the shower.

So much for easy riches.

#116 The real Kip on 01.18.13 at 6:46 am

As I climbed into my crane at 5:30 am, the nice chilly air made me proud to be Canadian! Makes me want to sing!

O Canada!
Our home and native land!
True patriot love in all thy sons command.
With glowing hearts we see thee rise,
The True North strong and free!
From far and wide,
O Canada, we stand on guard for thee.
God keep our land glorious and free!
O Canada, we stand on guard for thee.
O Canada, we stand on guard for thee.

#117 Ken R on 01.18.13 at 6:52 am

If AJ is busy working his scheme and making money, there must be an ample supply of customers looking to make a quick buck.

There are only two words in the english language that cannot be used in the same sentence, “wealthy” and “lazy”. AJ is out there hustling and getting wealthy.
His lazy clients, however, won’t enjoy the same result.

Idiots love a get rich quick scheme. The AJ’s of the world are just there to fill that market. It’s been going on for several thousand years.

#118 Dr. WAYNE on 01.18.13 at 8:46 am

#75 furst on 01.17.13 at 11:51 pm

=========================

Your Shakespearean wit has been clipped …

But remember, sticks and stone …

#119 TurnerNation on 01.18.13 at 8:57 am

Oooh, on this weblog can we profile DA similarly?

#120 Rishu on 01.18.13 at 8:57 am

I wonder what Real Estates agents like AJ will be doing in a few years when the Real Estate market colapses…

I’m looking forward to all the BMWs and Benz that will flood the market owned by former realtards.

#121 drydock on 01.18.13 at 9:15 am

http://www.fark.com/vidplayer/7449996

A cool tour of the most out of this world home not on earth.

#122 maxx on 01.18.13 at 9:41 am

#12 Babblemaster on 01.17.13 at 9:49 pm

“As bad as he is, there are many far worse (better?) examples of a lack of ethics. Ist ed, banksters. They are the ones that have allowed this nonsense to happen. The government, in the form of CMHC, also comes to mind. There are a lot of morally bankrupt basterds in our society. They are working to financially bankrupt the rest of us.”

Valid points. Why did this happen in the first place? Because interest rates were artificially suppressed. Why? Because markets had self-destructed, the real economy slowed down and people stopped spending as much.

Insurance and big finance companies saw their incomes drop like a stone. RE and structured financial products have been a way around that.

Mortgages, HELOCs and toxic investment “products” suddenly became the flavour of the day. The result is that what used to be the solid fiscal backbone of society is now awash in debt the night before entering retirement. Well done!

As a very astute American once said, “used to be that people who could afford to repay went looking for money. Beware when money goes looking for people.”

#123 Buy? Curious? on 01.18.13 at 9:47 am

Garth, have you seen the rest of AJ’s team? They look like they’re lining up to some D-list Las Vegas nightclub. Jersey Shore jumped the shark ages ago,

http://www.vantagewestrealty.com/company-profile/meet-the-team/

#124 CrowdedElevatorfartz on 01.18.13 at 9:53 am

I have never , ever understood Kelowna’s appeal.
My first impression was “a tacky Surrey-style strip mall” plopped down on a big lake that has a nice view from the waterfront…
The rest of the streets are comprised of anonymous big box stores with the acres of parking lots and as you drive out of town…..billboards. At least Red Deer has an excuse for its hideous downtown…. its in Red Neck central.
Kelowna had so much potential, unfortunately its buried under random urbal sprawl…the city planner should be ashamed of themselves, but then again, they are civic employees with jobs for life…. so who cares right?

#125 Ann on 01.18.13 at 10:16 am

74 Ronaldo on 01.17.13 at 11:50 pm
#60 Not 1st – ”Garth, I think that sign means vampires are stalking the RE market ready to draw blood at any time.”

Actually, that sign is on the corner of Abbot and Harvey just as you come off the bridge in Kelowna and it is warning motorists to be on the alert for ”laid off” realtors that are looking for work at the local strip joint.
.———————————————————————As a realtor for 25 years with No company vacation, sick days, pension, statutory paid days, paid overtime, health benefits, or unemployment entitlements, most of us will be fine in a slow or moving market. You may be the one that needs a pole to dance with.

#126 };-) aka Devil's Advocate on 01.18.13 at 10:16 am

#72 Debt’s Dark Embrace on 01.17.13 at 11:28 pm
You are in trouble now Garth !!! Just wait until DA gets home and sees this………..

The REALTOR® Code

19. Discrediting another Registrant

The REALTOR® shall never publicly discredit any other Registrant. If the REALTOR®’s opinion is sought, it should be rendered with strict professional integrity and courtesy.

19.1 The REALTOR® should not comment in a derogatory manner as to the capacity, integrity, and competence of any other Registrant.

19.2 Where any REALTOR® is asked to comment on a specific transaction or the business practices of another Registrant, such comments should be given with strict professional integrity, objectivity and courtesy.

19.3 This Article does not apply to truthful Advertising by REALTORS®. Any Advertising by a REALTOR® which contains seemingly derogatory statements about other Registrants or competitors, their businesses or their business practices may form the basis of an ethics charge only if such statements are false or misleading within the meaning of the Competition Act, or are otherwise prohibited by law.

While I am not an advocate of Mr. Hazzi’s business practices he does address a component of the Kelowna marketplace that would seek similar services from another were he not providing them.

There is in Kelowna, like no other city I’m aware of, a significant number of neophyte investor/speculators who are prepared to be led, less informed, into risky ventures in the hope of reaping lucrative rewards. This I believe is a consequence of the great apparent disparity between the haves and have nots in the city and the drive on the part of those who have not to attain what they perceive the haves to have.

I think I have commented on or alluded to the fierce competitive nature of this town. Many have moved here only to flee back to where they came from with their tails between their legs – and that includes many from the Big Smoke T.O. who think they’re going to teach us local yokels a thing or two. Many have tried and most all fail. There is a reason they say “If you want to turn your bank account into $1,000,000… come to Kelowna with $2,000,000 in it”. Make no mistake this is one fiercely competitive, tough town. Hey, it’s all business. Everyone wants to live here and that creates a lot of tough competition.

A.J. is, fundamentally, simply competing to survive the best way he knows how. While we may not condone his business practices, for the most part he is doing so within reason, albeit pushing the envelope of it such that evidently he has, at least once, crossed the line, and there are plenty of dupes willing to follow him or in his absence rest assured another.

While I am sure competition exists everywhere, I assure you nowhere else is it quite so insidious as it is here in Kelowna.

So prevalent is it that it is difficult for more sophisticated investors to acquire such properties at a reasonable price as those less experienced are willing to pay more than they should. Consequently they who do pay such lofty prices set a precedent for subsequent sales. I can see then how the information Mr. Hazzi provides his prospective clients might be considered by them and many others completely plausible to some degree as there would be ample evidence of the start of such venture but always a disclaimer by Mr. Hazzi that this, as any such venture, is not without its risks.

Understand that Mr. Hazzi need not make such disclosure in his editorial column, just like Garth need not in his, in order to comply with industry and legal required standards of business practice. There is a lot more latitude one can take in providing opinion in an editorial compared to that which one can and should provide to a ‘client’.

You can rest assured that Mr. Hazzi’s track record, as pointed out by Bo Xilai at comment #81, in addition to his licence suspension, fines and requirement to enrol in and complete relevant retraining, puts him on, to some degree, permanent probation, as were he to offend again the penalties would surely be far more severe. Additionally Mr. Hazzi, I am quite certain, is being watched with more scrutiny than others whose records are clean by both our industry association and its individual members who do business with him.

Bottom Line; AJ does not have the latitude to screw up accidentally or intentionally. Repeat offenders tend not to last long in this industry.

#127 furst on 01.18.13 at 10:22 am

#118 Dr. WAYNE on 01.18.13 at 8:46 am

But remember, sticks and stone …
___________________________________-
I do remember,

Sticks and Stones can break my Bones
But Dr. Wayne lives alone
I am rich with a hot bod
Dr. Wayne ain’t no doctor, he’s a fraud
But that’s okay, I shall offer him advice here
Go out, have fun, meet up with friends over a beer

#128 robert james on 01.18.13 at 10:31 am

#126 Thanks for the giggles ,DA !! That was hilarious !! It appears that he is pushing the envelope.. LOL Bottom Line; AJ does not have the latitude to screw up accidentally or intentionally. Repeat offenders tend not to last long in this industry.

#129 On The Sidelines on 01.18.13 at 10:33 am

Now, Now,,,, Don’t be trashing used F-150s….. Stick to your Kiss.

#130 On The Sidelines on 01.18.13 at 10:39 am

Kia, Kia ,,,,,Dam spell checker.

#131 Chris L. on 01.18.13 at 10:46 am

Thanks for the Guelph props Garth. My agent invited me to her open house this weekend. I declined sighting the house as being out of my budget at $475k. Two days later she said, “no worries, open house cancelled, we have 3 offers already.”

#132 Herb on 01.18.13 at 10:54 am

A money quote with regard to ethics:

“Corporations are simply legal shells in which real people can hide from being accountable for all types of acts.”

http://www.ottawacitizen.com/life/Nortel+Accounting+accountability/7835292/story.html#ixzz2IL37yofy

#133 Stoopid Idiot on 01.18.13 at 10:56 am

Don’t bet against the U.S.? (I’m Banking On It)

U.S. Treasury Publishes 2012 Financial Statement of the United States Government

Based on generally-accepted-accounting principles—or GAAP-based accounting—the 2012 consolidated financial statements of the United States Government showed a $6.9 trillion deficit for fiscal 2012, up from $4.6 trillion in 2011. The latest detail showed the uncontainable and uncontrollable actual federal budget deficit to be deteriorating rapidly. The much-delayed GAAP-based statements were published by the U.S. Treasury, today, January 17th.

Those deficit numbers reflect consistent GAAP accounting on current fiscal operations, plus year-to-year deterioration in the net present value (NPV) of unfunded liabilities for programs such as Social Security and Medicare. Reflecting the time value of money, the NPV represents the amount of cash in-hand needed to cover future obligations.

Based on tentative calculations from numbers in the report, total U.S. government obligations—including the NPV of the unfunded-liabilities of social programs—is around $88 trillion, or nearly six-times annual U.S. GDP.

Even so, significant accounting problems with the statements continue, including “material” issues raised by the auditor, the Government Accountability Office (GAO). As a result, the GAO does not offer an opinion on the statements. With fully-proper accounting, the actual 2012 deficit likely topped $7 trillion, with the 2011 deficit topping $5 trillion

http://www.fms.treas.gov/fr/index.html

I am happy to have you on the other side of the trade. — Garth

#134 hangfire on 01.18.13 at 11:06 am

Hmmmmm…what happens if the market continues to soften and chews through your sweat equity…..and your tenant moves out due to the collapsing job opportunities in your region…….c’mom…does anyone really think that live jobs are being created instead of estimated into existence?

There is only one time it is a good thing to buy real estate …that is when the market is going up….not down. We have the same thing down south…..the liberal media pundits have rallyed around Obama and are trying to persuade the market to go up…….and misdirect the truth until it does…the fact is that there is a depression happening…there is no pick up in housing….. and no one on Main Street doubts it. Like in Canada …the real estate industry and its hopeful pimps who hope the conventions will come back to town….misuse the privelage of their position and ……lie.

In Vancouver…you might want to make sure you aren’t buying from…or renting to anyone who works in any public bldg…like the courthouse…downtown condo….and especially social workers and those attached to social housing….you might find they’ve infested you with the bed bug plague……and thats thousands of repeating pesticide expenses that will never go away…unless you tear down and burn the rubble.

http://www.vancouversun.com/videos/recommended/video.html?embedCode=01ZWNiODotJxqgn5UkkV2Sffq10bIDb0

#135 };-) aka Devil's Advocate on 01.18.13 at 11:07 am

#128 robert james on 01.18.13 at 10:31 am

Truth be told I admire A.J.’s tenacity. He is a self-professed real estate renegade who, after being drummed out of one of Kelowna’s top producing offices for his contraversial flamboyant renegade style, started Vantage West Realty where he could ply his trade his way.

Those who patronize the Vantage West team do so of their own volition. Vantage West clients are looking for a “shark” – a take no prisoners competitive agent. There is a reason such agents are out there – because a contingent of the public is looking for just such qualities in the agent they choose. A.J. is there to fulfill that demand, where other agents, like me, are not willing to compromise their higher moral and ethical standards to be of such service. (oh and don’t think I can’t hear you laughing at that one I just lobbed your way Robert) If it wasn’t A.J. it would be another.

Any smart REALTOR® targets a specific market. That which A.J. targets best suits his style and they appear to like it because they keep going back for more. Quite frankly those who do business with A.J. and his crew are typically clients the rest of us care to deal with. They deserve the kind of representation they seek and A.J. simply sees the opportunity in providing it to them.

#136 };-) aka Devil's Advocate on 01.18.13 at 11:09 am

Revision:

The last line of my previous post should have read;

Quite frankly those who do business with A.J. and his crew are typically clients the rest of us don’t care to deal with. They deserve the kind of representation they seek and A.J. simply sees the opportunity in providing it to them

#137 Denise on 01.18.13 at 11:13 am

They’re critizing your blog on House Hunt Victoria again Garth. (Evening of Jan. 17th has a few). What a myopic, self-important, pompous bunch. Not all, but the majority. RE pumpers to the max, they’re mostly RE investors, former? flippers, “house is their retirement fund” types.
Sooooo tiresome.

#138 Andrew on 01.18.13 at 11:18 am

#126 DA

Not a good start DABob.

Another long-winded lecture which, unfortunately due to credibility issues, was presented to an empty classroom.

#139 Spiltbongwater on 01.18.13 at 11:24 am

AJ Hazzis money making scheme is similar to what Armando Montelongo pitchs on late night tv.

#140 On The Sidelines on 01.18.13 at 11:24 am

Kias , Kias , Dam spell checker.

#141 };-) aka Devil's Advocate on 01.18.13 at 11:33 am

#134hangfire on 01.18.13 at 11:06 am

There is only one time it is a good thing to buy real estate …that is when the market is going up….not down.

Your logic is severely flawed.

You cannot time the market. More often than not by the time you realize the market is going up and you do get in, it is inevitably then just about to come crashing back down. Think 2006 – 2008…

The best strategy is to get in when it makes best sense to you to do so, forget about timing – timing is just luck one way or the other, and stay in for the long term riding the waves up and down but overall building equity in that indefinite long term hold you call a home. Otherwise stick to renting.

#138Andrew on 01.18.13 at 11:18 am
#126 DA

Not a good start DABob.

Another long-winded lecture which, unfortunately due to credibility issues, was presented to an empty classroom.

Oh I am quite confident, even on this pathetic blog, there was more than one who heard and valued my message.

If nothing else A.J. drives business my way. };-)

Speaking of which I’m off to deal with just that.

#142 Von on 01.18.13 at 11:39 am

#61 Bottoms_Up on 01.17.13 at 11:04 pm

I hope you’re kidding. Burlington in my opinion is 50% overpriced. The city is a suburb with absolutely nothing of interest there other than the GO trains to take to Toronto. Jobs there pays like $12 an hour unless you’re a mad scientist of course that would be the only explanation for spending such a ridiculous amount on a house in Burlington.

#143 Mixed Bag on 01.18.13 at 11:41 am

Unrelated, but thought this funny enough to share here, with no disrespect intended to our esteemed host.

http://www.gocomics.com/9chickweedlane

Those who can, do.
Those who cannot, go into politics to tax those who can, for the benefit of those who won’t.

TGIF, eh?

#144 robert james on 01.18.13 at 11:44 am

#135 DA Thanks for clearing that up,DA !! I guess most people just expect too much from realtors when they are making probably the largest investment in their lives.. Actually,, if there is anyone thinking about becoming a realtor ,,this could be a very good deal for you.. Much more prestigious than pole dancing.. http://vancouver.en.craigslist.ca/pml/bfs/3549235818.html

#145 Bargains everywhere on 01.18.13 at 11:44 am

Here is an excerpt from an email my real estate agent sent me yesterday.

“Good talking with you again! Here’s the updated listing for this property that now shows the Open House info, and includes the Virtual Tour as well.

FYI, I was talking with xxx xxx, the listing agent, this afternoon & he advised that they already have one offer in hand, with a possibility of a 2nd offer … ”

Is this not the oldest trick in the book? She’s a nice lady and all, but geez, trying to drum up a bidding war? If the agent has one offer already in hand, why doesn’t he present it to the seller now? I guess I’d better rush in and offer over asking. NOT!

Bidding wars and selling above asking have virtually disappeared in my neighbourhood now and I feel no urgency to rush into anything thanks to Garth. I’ll take a pass on this one (the house wasn’t anything special anyways) and continue to bide my time.

#146 Dr.NickRiviera on 01.18.13 at 11:51 am

Is it just me, or does it seem like all these cheesy realtors are clones of each other? They all look the same no matter what city you are in.

Makes me laugh that people buy into this – but apparently “the look” sells.

Coming soon: lots of well dressed people with fancy hair gel haircuts working the drive thru at Mc.Ds.

#147 Old Tom on 01.18.13 at 11:51 am

#85 Smoking Man on 01.18.13 at 12:13 am

#77 Thinking of buying for the first time in Victoria? on 01.17.13 at 11:56 pm

I hope your right, it’s got to suck for you living in a mold infested basement all these years.

#109 Thinking of buying for the first time in Victoria? on 01.18.13 at 2:27 am
You are correct #109 if you read SM posts he owns a small home in Long Branch somewhere near the lake. So he is an owner of real estate, that means he pays taxes, heat, hydro, insurance, fixes broken water heaters, well what do you know he is part of the system, the herd, a sheeple.

#148 Andrew on 01.18.13 at 11:55 am

DABob,

Ohh goodluck DABob, fingers crossed!
Let us know how it goes and we’ll put a 1 up on the board for you.

#149 Frank le skank on 01.18.13 at 12:01 pm

#141 };-) aka Devil’s Advocate on 01.18.13 at 11:33 am
Let me guess, its always a good time to buy…. your shady advise will ruin a few lives and it doesn’t seem to bother you.

#150 Grim Reaper/Crypt Speculator on 01.18.13 at 12:06 pm

Good thing Garth didn’t take a photo of the other side of the sign…..in the middle is a long rusty bolt sticking out .

#151 Ogopogo on 01.18.13 at 12:07 pm

I love this post! As a Kelownian, (one of the Ontario transplants that DA loves to say “can’t make it here”), I can attest to a widespread disease among the local yokels — Douchebagitis. Symptoms include a desperate desire to stand out from the inbred Wonderbread crowd by living wildly above one’s means. Hence the incredible number of Hazzi clones driving around in beemers and Mercedes or souped-up pick-up trucks. By golly, I’ve even heard people brag about how much they paid for their car.

There is of course a small but vibrant intellectual and artistic class in town, which is the only thing that keeps me here, other than the stunning natural beauty and outdoors sports I’m addicted to. I’ve long learned to simply ignore the mass of Kelownians carrying their inferiority complexes like a trophy.

DA’s pompous rhetoric and self-importance is the textual equivalent of Douchebagitis. In turn, Hazzi is a bona fide Kelownian, the purest specimen host for Douchebagitis.

#152 Dr. WAYNE on 01.18.13 at 12:12 pm

#127 furst on 01.18.13 at 10:22 am

=================

Nice … but … no fraud … and I don’t live alone (with a babe and 15 guitars) … eat your heart out.

#153 Form Man on 01.18.13 at 12:29 pm

#126 DA

‘I think I have commented on or alluded to the fierce competitive nature of this town. Many have moved here only to flee back to where they came from with their tails between their legs – and that includes many from the Big Smoke T.O. who think they’re going to teach us local yokels a thing or two. Many have tried and most all fail. There is a reason they say “If you want to turn your bank account into $1,000,000… come to Kelowna with $2,000,000 in it”. Make no mistake this is one fiercely competitive, tough town. Hey, it’s all business. Everyone wants to live here and that creates a lot of tough competition.’

??? intense competition for homes ? With an MOI of 20 and skyrocketing rental vacancies, the buyers ‘who all want to live here’ must be stuck outside the city gates again. Destined to circle aimlessly, unable to enter, while developments languish, unable to find buyers. Kelowna is truly a strange place indeed……..

#154 NoBodySpecial on 01.18.13 at 12:30 pm

#147 Old Tom on 01.18.13 at 11:51 am01.18.13 at 2:27 am
You are correct #109 if you read SM posts he owns a small home in Long Branch somewhere near the lake. So he is an owner of real estate, that means he pays taxes, heat, hydro, insurance, fixes broken water heaters, well what do you know he is part of the system, the herd, a sheeple.

LOL. Part of the system for owning a home? Haha, where do you people crawl from? And how often do you guys think water heaters break exactly?

Of course renters don’t pay utilities, they also don’t buy insurance. That’s why you can see them on TV after their crack house burns down, all sad, because they lost it all. Boo hoo, I guess you should’ve had insurance.

The whole point of this web site is to invest your money with the same banksters that crashed the world’s economy, barely 4 years ago. Now that’s part of the system.

#155 Holy Crap Wheres the Tylenol on 01.18.13 at 12:32 pm

#145 Bargains everywhere on 01.18.13 at 11:44 am

When purchasing an investment home several years ago I met the real estate agent at a home in South West TO right on the lake. She went immediately into the same deal that there had suddenly commenced a bidding war. This was a 1.2million dollar property! In all honesty it was not a Mc Mansion but rather a larger older home with some serious space and an excellent locality backing onto the lake. When I contacted her we were ready to move on it and firm. I asked if any other offers had been made and the answer was none. At the time I was rather upset with this bidding war malarkey that was rampant all over the city. I asked how many other offers had suddenly popped up and was told 4. I then made a phone call in front of her to another agent and said what homes have you got to offer in this particular location that are not involved in bidding wars. I thanked her for wasting my time and walked away. Needless to say I did make a half decent investment nearby (not on the lake) and flipped within two years. Now I run like hell from these investment properties.

#156 Herb on 01.18.13 at 12:39 pm

#134 hangfire,

I’ve heard of this script! You have given us public servants, unions, liberal media, and now the plague of bedbugs. Three plagues to go, and your party of wingnuts will offer to lead us through the desert. Well, into the desert anyway.

#157 jess on 01.18.13 at 12:40 pm

“buying on the moron” …and believing in the moron– levels the playing field.

#158 Investx on 01.18.13 at 12:48 pm

“135 };-) aka Devil’s Advocate

Truth be told I admire A.J.’s tenacity. He is a self-professed real estate renegade who, after being drummed out of one of Kelowna’s top producing offices for his contraversial flamboyant renegade style, started Vantage West Realty where he could ply his trade his way.”

Your admiration of such a character only further reduces your credibility and integrity into negative territory.

#159 jess on 01.18.13 at 12:48 pm

TAX HMRC
artificial tax avoidance scheme
A medical research tax avoidance scheme, promoted by Matrix Securities, has been successfully challenged in court by HM Revenue & Customs (HMRC).

…Jersey-registered limited partnership which claimed to be trading in the UK. The partnership focused on creating and exploiting intellectual property from research into vaccines targeting diseases such as HIV, flu and hepatitis B.

The partnership of 83 investors used £28m of their own cash and £86m in bank loans and claimed a first-year trading loss of nearly £193m, creating £77m in tax relief. This would have delivered a £50m return on their personal investments. ,,A Jersey-registered limited partnership claimed to be trading in the UK. The partnership focused on creating and exploiting intellectual property from research into vaccines targeting diseases such as HIV, flu and hepatitis B.

Eighty three investors in the partnership used £28 million of their own cash and £86 million in bank loans. The partnership claimed a first-year trading loss of nearly £193 million, creating £77 million in tax relief. This would have given them an almost £50 million return on their personal investments.

However, HMRC Specialist Investigators discovered that only £14 million had been spent on research and development into vaccines. As a result, a tribunal agreed that individual partners were entitled to tax relief of no more than £14 million of the losses. The Tribunal further decided that £7 million in fees that the partnership had paid to a subsidiary of the scheme promoters failed to qualify for tax relief. Interest relief on the loans that had been used in the scheme was also restricted.

http://hmrc.presscentre.com/Press-Releases/Medical-research-tax-avoidance-scheme-rejected-by-court-6862d.aspx

#160 polecat on 01.18.13 at 12:53 pm

I bought my first house 2 years ago, don’t worry, only 2.5 income and 8% down. My agent, well, pretty much useless. As soon as my offer was accepted barely heard from her. I did not know a lot of the little details about buying a house, but sure did learn. She knew it was my first go at this but no help. To you realtors would you not help guide someone through this. Seems like all she did was shuffle a lot of paper and get me to sign offers. I have seen more professionalism from used car salesmen. When I sell this place it will be with a lawyer, mine was the only pro in the whole processand when I look back, pretty much the main man in the deal that did any real work. Dont want to trash all real estate agents, I’m sure you have your good and bad ones like every other line of work but it left a real bad taste. Basically bought a fixer upper with an acre of land and working towards getting off or mostly off the grid. Have great weekend dawgs.

#161 Bottoms_Up on 01.18.13 at 1:04 pm

#131 Chris L. on 01.18.13 at 10:46 am
———————————————-
No house in Guelph should be 475k unless it’s a castle atop 5 acres with a meandering stream and milkmaids at your service.

#162 T.O. Bubble Boy on 01.18.13 at 1:08 pm

Will 2013 be “The Great Rotation” out of bonds?
http://blogs.wsj.com/marketbeat/2013/01/18/morning-marketbeat-simon-says-rotate/?mod=MarketsMain

#163 Bottoms_Up on 01.18.13 at 1:09 pm

#108 Scott in Gibsons on 01.18.13 at 2:09 am
————————————————-
If you dig further into the Japanese stories, you find people that were paying top price for the burbs (condos), 2 hours commute into major cities. Milton, Burlington, Guelph anyone???

#164 rosie on 01.18.13 at 1:14 pm

I just love the dynamic in this ad. A loving relationship just chock full of communication and understanding. The wife is just wonderful at communicating. The husband is undeniably understanding. Suzanne is a jem. http://www.youtube.com/watch?v=7Pzim8O7Fd0

#165 Devore on 01.18.13 at 1:15 pm

#137 Denise

HHV used to be a blog I visited daily, and provided good information and some great discussion from all directions and walks of life. It was like a preview of things to come in Vancouver. But the majority of regulars, including the host, have caught the knife solidly in both hands, so of course the Victoria housing market is now bottomed out, will go sideways for a few years, before resuming its inexorable climb upwards. Besides, everyone wants to live there, and throwing money away on rent is such a drag when your friends find out you don’t own in The 834 like all the cool people do.

#166 Andrew on 01.18.13 at 1:28 pm

Taking it on the chin again DABob,

Judging by the backlash to your comments, I guess the class wasn’t that empty…

#167 Babblemaster on 01.18.13 at 1:48 pm

#122 maxx

“Mortgages, HELOCs and toxic investment “products” suddenly became the flavour of the day. The result is that what used to be the solid fiscal backbone of society is now awash in debt the night before entering retirement. Well done!”

——————————————————

Very astute analysis. They swallowed the Kool-aide and now, unfortunately, we all get to pay. Whereas, the ones that distributed the Kool-aide, will have done very well.

#168 spaceman on 01.18.13 at 1:48 pm

#8 Smoking Man on 01.17.13 at 9:46 pm

What ever you are smoking, can I have some? You are a nut bar.

#169 OlderbutWiser on 01.18.13 at 1:55 pm

#133 Stoopid Idiot on 01.18.13 at 10:56 am

You cannot use the same fundamentals to compare the F/S of the United States to a normal corporation. The US government has an unlimited ability to generate revenue via taxation. No other entity (i.e. corporations) have this ability. Never underestimate the power of this right. The US could bring in a HST like we have in Canada. The revenue created by just that one action would be huge. They could bring in tolls, user fees, remove tax deductions (like mortgage interest), increase the tax rate, lower the income brackets so that the top marginal rate kicks in at a much lower level of total income….just to name a few. The sky is basically the limit. So why have they not done this?….the economy is too weak right now to take the hit…doesn’t mean they won’t in the future though….

#170 Buy? Curious? on 01.18.13 at 1:59 pm

This is the smartest thing I’ve heard come out of the mouth from someone residing in B.C

http://www.theglobeandmail.com/commentary/we-enforced-ottawas-pot-laws-they-dont-work/article7510594/

Once organized crime can’t launder their money through real estate, the playing field should open up.

#171 Form Man on 01.18.13 at 2:02 pm

#151 Ogopogo

‘I’ve long learned to simply ignore the mass of Kelownians carrying their inferiority complexes like a trophy.’

nicely put……..

#172 Smoking Man on 01.18.13 at 2:08 pm

162 to bubble boy…..

Rotation out of bonds, ba hahhaaa.

Which full bias, machine is attempting to start a 2 stroke engine with fuel from last year.. The engine sound you hear is a guy pulling the cord trying to start the engine.. Engine needs new fuel, or kids with good paying jobs.

Ha that’s not going to happen, bonds will rock in 2013

#173 };-) aka Devil's Advocate on 01.18.13 at 2:09 pm

#158Investx on 01.18.13 at 12:48 pm
“135 };-) aka Devil’s Advocate

Truth be told I admire A.J.’s tenacity. He is a self-professed real estate renegade who, after being drummed out of one of Kelowna’s top producing offices for his contraversial flamboyant renegade style, started Vantage West Realty where he could ply his trade his way.”

Your admiration of such a character only further reduces your credibility and integrity into negative territory.

Not that I plan on going there, I don’t want to and I don’t need to, but think of it this way:

With the low opinion such as the Blog Dawgs hold toward REALTORS® what have they (REALTORS®) got to lose by doing just that, living up to those expectations, exploiting the ignorance of such as the Blog Dawgs to their gain.

It generally works out that you kinda get what you expect, if you know what I mean.

Personally I wouldn’t deal with a person of such disposition as is most prevalent on this pathetic blog. I suspect that it is only those less caring ‘transactional’, less ‘service based’ REALTOR® types who are willing to deal with such a mindset as is typical of the Blog Dawgs. That in turn causes the Blog Dawgs to have a lower opinion of REALTORS® as they attract nothing better.

Have you ever stop to consider we are each the masters of our own fate? As my friend on your other shoulder might remind you, “As you sow so shall you reap”.

As you don’t necessarily seek success as attract it by being a better person, so too can you repell success by be a toxic personality.

};-)

#174 jess on 01.18.13 at 2:11 pm

believing in morons

2 lent > £750m Achilleas Kallakis had been “careless and imprudent” and “do bear some degree of responsibility” for Britain’s largest mortgage fraud, a judge has said. Bankers at Allied Irish Bank and Bank of Scotland had been falling over themselves to lend to Kallakis, carrying out only cursory checks that failed to reveal he was a serial conman, not the extravagant Mayfair property baron he was purporting to be

#175 █ ♣ █ ANONYMOUS on 01.18.13 at 2:12 pm

Garth’s Quote: (“Manufacturers have dried up and left town, ——- . But that hasn’t stopped condos from erupting like concrete mushrooms in recent years —”)

The REASON FOR THIS: Construction is the ONLY JOB IN TOWN these days. There is nothing else for the men to do. If home construction dies, then the country will have 10% of the population sitting idle with nothing to do (mostly men, as they are the ones in construction.)

As for manufacturing; ITS DEAD!
Just take a look at this guy’s story:
http://blogs1.conestogac.on.ca/news/2012/12/health_informatics_student_has.php

Quote: (““When you’re in that mechanical manufacturing field it can be a little scary to see where things are going,” Lee said. “You’re seeing a lot of manufacturing going to China these days, and a lot of layoffs, so I thought it was time for a career change.” )

So he went from a computer programmer for a manufacture; ATS, one of the most sought-after companies for new grads as jobs used to be really high pay and stable there, now to being a freelance programmer for different health-care software companies.

This guy is BRILLIANT, with an I.Q. of 290, and computer programmers are supposed to be in high demand, yet even HE cannot find work, and had to go back to school for retraining !!!
THE JOB MARKET IS TOUGH OUT THERE; ONLY JOB IN TOWN = CONSTRUCTION (for now, but not for long.)

#176 Regan on 01.18.13 at 2:17 pm

…”As a guru chart scientist and dyslexic code smith, f-en super human genius, who has discovered the universe is shrinking” Seriously, what is wrong with this guy? There’s a few other loose-cannon egos on this blog too. It’s getting harder and harder to read any actual discussion – I’ve more or less stopped bothering. Thanks to those of you who do contribute though – I’ve learned a lot.

#177 Holy Crap Wheres the Tylenol on 01.18.13 at 2:24 pm

TORONTO — Shares of Research In Motion (TSX:RIM) raced higher on Friday as one of the company’s most prominent analysts gave a stronger vote of confidence to the new BlackBerry launch.

The Waterloo, Ont.-based company’s stock gained 4.5 per cent, or 66 cents, to $15.34 on the Toronto Stock Exchange shortly after markets opened, pushing towards levels it hasn’t seen in more than a year.

Read more: http://www.ctvnews.ca/business/research-in-motion-stock-continuing-remarkable-comeback-1.1119703#ixzz2ILvD4u12

What to do with RIM!
Should I stay or should I go?
http://www.youtube.com/watch?v=Te1sr-D1Y1A

#178 Roy on 01.18.13 at 2:27 pm

Another dumbass realtor.

Kelowna is the ground zero or the Stockton, CA of the Canadian real estate bubble burst. I remember back in late 2011 how they reported this rash of foreclosures in the region and I suspect this spooked the Vancouver market in 2012 and now look where it is, along with most of BC. If I remember correctly like K-town Victoria and parts of the island were already also in rough shape in 2011 as well.

#179 coastal on 01.18.13 at 3:08 pm

Garth,
Is there any way to block #110′s IP from promoting his crap website on here ? I see there is a video trashing you and making claims that are not true, ie;exaggerating percentages and timelines you said and have corrected people on many a time. It’s getting a little nauseous as he now has a personal vendetta after getting his ego bruised for self promoting at all costs.

Done. — Garth

#180 Westcdn on 01.18.13 at 3:19 pm

The two best of advice I have heard so far this year are “usually the asteroid misses the earth” and “practice being a prick”. I am betting the Bank of Canada prime rate will be at least a ¼% higher by December 2013 and on weaking Canadian economics. With those ideas in mind, I will try to find things that are mispriced. I have learned what I think something is worth is different from another person and that leads to risk – we both can’t be right. This article on risk pretty much sums up my philosophy regarding my savings/capital. http://www.thereformedbroker.com/2013/01/17/their-risks-are-our-opportunities/
I also looked at this site which seems to do a good job of linking to real estate macros.
http://whispersfromtheedgeoftherainforest.blogspot.ca/
As a lawyer once said to me the truth lies between two points of view. It means to me to keep looking and listening with a goal in mind. I am reminded of a movie title “die rich or die trying”. I can only hope ethics matter.

#181 coastal on 01.18.13 at 3:24 pm

#137 Denise,

Agreed Denise, pretty tough sledding over there trying to get through all the mainly bull(sh*t) posts with every hypothesis known to man attempting to keep the dog afloat. I couldn’t imagine myself as a homeowner wasting so much precious time defending my digs.

#182 hangfire on 01.18.13 at 3:25 pm

#141..DA…I guess then…by your summation….that buying into a falling market and losing hundreds of thousands of dollars is OK……hey …that makes perfect sense……just not to me.

Gee…and I thought we were supposed to buy low and sell high….instead I HAVE IT ALL WRONG…..it’s buy high……lose everything……and hope to catch up sometime in the future with dollars that are so worthless because of inflation that even my cheap calculator laughs at me when I look at my ‘assessments’.

In 1960 you could buy a house in the city for $6500…the money you end up with after inflation is worth nothing…….at least in this I agree with Mr Turner…..paid for real estate should be no more than 20% of a persons net worth.

My observations of the real estate cycle in Canada is this…….7 to 9 years up……2 to 4 years at the top……7 to 9 years going down…..2 to 5 years in a trough……..rinse and repeat….this has been true for the past 80 years…..slightly screwed up from the Greenspan flush starting in 2000…….that didn’t mean that business cycle has gone extinct……even the government in its wisdom has come to realize that you can’t borrow and spend forever.

It is obvious that the real estate cycle has rolled over…..and if history even rhymes we will witness a slow steady fall until an established bottom is located……from here the next upcycle is at least a decade away…….thx DA #141…but I will put my money anywhere other than real estate for the next ten years……..it’s done…I know change is hard…but get used to it.

#183 Hoof - Hearted on 01.18.13 at 3:27 pm

#152 Dr. WAYNE on 01.18.13 at 12:12 pm

#127 furst on 01.18.13 at 10:22 am

=================

Nice … but … no fraud … and I don’t live alone (with a babe and 15 guitars) … eat your heart out.

====================================

No no Dr Wayne….you put the guitars in the closet, or else you will get splinters in the mattress.

#184 DM in C on 01.18.13 at 3:30 pm

NoBody Special
Of course renters don’t pay utilities, they also don’t buy insurance.

Not sure what planet you’re from, but I pay up to $400/month utilities for the house I rent, on top of insurance. You have quite a myopic view of the world.

#185 Classic on 01.18.13 at 3:30 pm

#145 I’ve had those conversations verbatim with 3 separate realtors in the last month. I put two offers in… Houses still haven’t sold. The third realtor I told in advance I have no interest in participating in bidding wars. Let them have it. Regardless the biddin wars are probably agents bidding against other agents. They can flip as many homes to each other as their heart desires.

#186 Julia on 01.18.13 at 3:31 pm

An ode to some of our favourite blog dogs

Boys in the basement

Detached, alienated, uninterested and lacking ambition, countless young adults are drifting between minimum wage jobs, drinking, doing drugs and playing video games
Ottawa Citizen January 17, 2013
http://www.ottawacitizen.com/health/Boys+basement/7834172/story.html#ixzz2IMCoCDEA

#187 betamax on 01.18.13 at 3:32 pm

#135 };-) aka Devil’s Advocate: “I admire A.J.’s tenacity. He is a self-professed real estate renegade”

Way to romanticize unethical behaviour: “renegade” sounds much better than “grifter”.

You need to re-examine your criteria for admiration — you’ve currently set a very low bar.

#188 Mike on 01.18.13 at 3:33 pm

I am posting this because I feel it does serve the highest good.

‘Oooh, on this weblog can we profile DA similarly?’

perhaps

someone outed this guy

http://www.castanet.net/edition/news-story-85990-906-.htm#85990

as being our precious DA, but I cannot confirm it. The language and bikini stats are circumstancial evidence.

Look at what he wrote, the Okanagan is stable, statistics can be manipulated (duh) and prices in the Okanagan are just fine….

more hilarity can be found if you keep reading…..the next article is about how assessed house prices went down (huh) but taxes stayed the same or went up

from one week to the next the person writing these ‘news’ releases cannot even keep their story straight

pressure is obviously at the boiling point

draw your own conclusions….but this does fit the profile of a realtor, misguided, delusional, intestested in bikini stats to keep on keeping on….not to mention the fact that he would actually defend the actions of this Hazzi character…..it’s worse than I thought and that is very difficult to accomplish.

the Okanagan housing meltdown is a fait accompli

DONE DEAL

#189 NoBodySpecial on 01.18.13 at 3:45 pm

#184 DM in C on 01.18.13 at 3:30 pm
NoBody Special
Of course renters don’t pay utilities, they also don’t buy insurance.

Not sure what planet you’re from, but I pay up to $400/month utilities for the house I rent, on top of insurance. You have quite a myopic view of the world.

Sorry for the misunderstanding, that was sarcasm to the previous poster that implied only home owners pay utilities.

#190 Victoria Tea Party on 01.18.13 at 3:48 pm

ONE FAT DAME, I SKINNY PSYCHO

This Lance Armstrong nonsense is about as disgusting as the OJ Simpson frolics of many years back.

Oprah and Lance are sitting there trading silly questions for lie-through-your-teeth answers and to what end?

Oh, a book deal later this year, maybe some endorsements from a drug company that invents a pill to eradicate all of your favourite addictions and impulses. Oops, the NYSE won’t much like that!

Truth is, just about every American spends his or her life stoned, hammered, or mildly pissed on some pill or other, ALL THE TIME.

It hides the pain of empirical decline, joblessness, inadequacies (so many of them and so little time for Oprah to discuss them all!). A pill for every occasion and for every occasion a pill!

Go for it Lance. Some folks at various Wall Street banks really DO have your best interests at heart! He’ll win. there’s goota be something to salvage after this interview crap all blows away by noon on Sunday.

And Oprah’s ratings will continue to tank.

Lovely.

#191 Old Man on 01.18.13 at 3:57 pm

I was thinking about becoming a member in the Smoking Man’s course to wealth, but will take a pass on the option plays, as his fees are too high for my pie in the sky. Garth is a much better alternative as a fee based financial advisor; sorry Smoking Man, as want quality in life.

#192 “One agent is telling him to drop his price drastically to beat reduced prices in the Spring. The other agent is telling him that he has to keep his price above $1 mil to attract foreign buyers.” | Vancouver Real Estate Anecdote Archive on 01.18.13 at 4:01 pm

[...] “Just talked to a friend trying to decide which agent to use to sell his house in central Vancouver. One agent is telling him to drop his price drastically to beat reduced prices in the Spring. The other agent is telling him that he has to keep his price above $1 mil to attract foreign buyers. Still too many agents with the former pitch and too many people who want to believe it.” – pathcontrolmonk at greaterfool.ca 17 Jan 2013 at 10:11 pm [...]

#193 Andrew on 01.18.13 at 4:11 pm

DABob,

Okay I shouldn’t but I’m going to try and interpret your last comment, correct me if I’m wrong.
1.Being screwed over by a realtor is somehow the victim’s fault
2.BlogDogs get screwed over by Realtor’s because their negative “attitude” attracts “that” kind of Realtor.

Somehow, unbelievably…
a new crazy low.

#194 cramar on 01.18.13 at 4:19 pm

#133 Stoopid Idiot on 01.18.13 at 10:56 am

Don’t bet against the U.S.? (I’m Banking On It)

. . .



I am happy to have you on the other side of the trade.
— Garth

————–

AND THE WINNER IS. . . stay tuned!

#195 DM in C on 01.18.13 at 4:31 pm

#185

Yep, same thing happened to us last year — put a bid in on a stale listing, and all of a sudden there was a bidding war — with offers collected by a certain date. We stuck with our offer and said we were not interested in a bidding war. A week later they came back and said — OH the other offers fell through — you can have it now. I told them my offer was now reduced by 5%. But we walked anyway. Never believe in the bidding war. Shenanigans. Always. Walk away. It’s my money, not theirs.

#196 robert james on 01.18.13 at 4:38 pm

#151 Ogopogo

‘I’ve long learned to simply ignore the mass of Kelownians carrying their inferiority complexes like a trophy.’ Better known as ” the Okanagan Lifestyle” aka looking like a millionaire on mininium wage,, hence the huge number of grow-ops.. I live South of kelowna.. I first came to Kelowna in 1967 and at least the millionaires were real then as opposed to these ass clown goofs in their mortgaged phony Mcmansions .. lol

#197 Holy crap Wheres the Tylenol on 01.18.13 at 4:57 pm

#176 Regan on 01.18.13 at 2:17 pm

…”As a guru chart scientist and dyslexic code smith, f-en super human genius, who has discovered the universe is shrinking”

No, it is not shrinking at this juncture. Ever since the big bang universe is expanding. Even gravity is not able to shrink it due to what is known as ‘dark energy’. According to the second law of thermodynamics or entropy, universe would shrink, but it will take another 13.7 billion years to shrink completely. There is also a proposed theory that with the shrinking of universe/ or contraction of space there is a also a possibility that the time would reverse. Stephen Hawking says that although space and time are connected but there is no chance that time would reverse. If the universe were shrinking, we wouldn’t be seeing red shift (which is light wavelength being stretched)
Instead we would see blue shift, where the wavelength is being compressed as it travels towards us
All in all, currently universe is not shrinking currently, but will shrink sometime in the future, but it’s not shrinking now. Our planet will “die” before the universe starts shrinking. So there it is, do not worry about Smoking Man’s conspiracy theory! Invest now, die later, much later say around 14 billion years from now. If you need more proof try this site.
http://www.physicsforums.com/showthread.php?t=66781

#198 Gypsy Kid on 01.18.13 at 5:22 pm

DM in C;
This happened to us when we were buying our current house. Our agent said there was another offer so we should throw in some more money. How do we know that ??? I havent seen the paper. We threw in another $10 000 but I realized RE agents are scammers. But really, where is the regulation that there is in the financial industry? If this happened at a broker’s, they would be in jail…pisses me off so much.

#199 Snowboid on 01.18.13 at 5:22 pm

#98 Lost Soul on 01.18.13 at 12:56 am…

How about this?

http://www.youtube.com/watch?v=Uu9gC1GuAtU

#200 DM in C on 01.18.13 at 5:27 pm

NoBody — next time turn on the sarcasm font. /sarcasm :-)

#201 coastal on 01.18.13 at 5:30 pm

Still alot of young and dumbers out there allowing themselves to be victimized by agent pressure. I know of a young couple that offered a good bid on a place at assessment price when they were asking 10% over. They get turned down, go look at a pile of other houses, go back to the original and offer almost the asking price. Duh. It’s truly idiotic how the sheep continue to get sheared by agent pressure on both sides and it’s still just the middle of January.

#202 };-) aka Devil's Advocate on 01.18.13 at 5:31 pm

#182 hangfire on 01.18.13 at 3:25 pm

It is obvious that the real estate cycle has rolled over…..and if history even rhymes we will witness a slow steady fall until an established bottom is located……from here the next upcycle is at least a decade away…….thx DA #141…but I will put my money anywhere other than real estate for the next ten years……..it’s done…I know change is hard…but get used to it.

Seriously hangfire you should put your money wherever you think best, just as so should everyone else. We can all be winners but most of us can be losers. If you win you will be rewarded for your gamble and have the last laugh to boot. If not you’ll have no one to blame but yourself – right? I’m just here offering some alternative points of view for those with a more open mind to consider.

#187betamax on 01.18.13 at 3:32 pm
#135 };-) aka Devil’s Advocate: “I admire A.J.’s tenacity. He is a self-professed real estate renegade”

Way to romanticize unethical behaviour: “renegade” sounds much better than “grifter”.

You need to re-examine your criteria for admiration — you’ve currently set a very low bar.

“Self professed ‘renegade REALTOR®’ “ Betamax. His words not mine.

That I “admire his tenacity” in no way means I condone his business model or style. A.J. brings a lot of shit and abuse down upon himself – a ton of it. Each and every time he gets back up a puts his nose to the grindstone again and again. I admire that, who wouldn’t.

A.J.s business model, to which I would never ascribe, is controversial but not illegal. He pushes the envelope. I don’t think he intends to break or exceed it but when you push that hard you’re bound to punch through once in a while.
In this business there is a saying – “It’s not a matter of if you’ll be sued but when you’ll be sued”. We live in an increasingly litigious society. Buying and selling real estate is a highly emotional endeavor. REALTORS® are an easy target.

Read that comment again Betamax. In its entirety this time though instead of trying to SPIN it to mean something that better serves your purpose while negating mine by leaving out much of the content. What a prick maneuver.

Here I’ll save you the trouble and copy it her for you…

Truth be told I admire A.J.’s tenacity. He is a self-professed real estate renegade who, after being drummed out of one of Kelowna’s top producing offices for his controversial flamboyant renegade style, started Vantage West Realty where he could ply his trade his way.

Those who patronize the Vantage West team do so of their own volition. Vantage West clients are looking for a “shark” – a take no prisoners competitive agent. There is a reason such agents are out there – because a contingent of the public is looking for just such qualities in the agent they choose. A.J. is there to fulfill that demand, where other agents, like me, are not willing to compromise their higher moral and ethical standards to be of such service. (oh and don’t think I can’t hear you laughing at that one I just lobbed your way Robert) If it wasn’t A.J. it would be another.

Any smart REALTOR® targets a specific market. That which A.J. targets best suits his style and they appear to like it because they keep going back for more. Quite frankly those who do business with A.J. and his crew are typically clients the rest of us don’t care to do business with. They deserve the kind of representation they seek and A.J. simply sees the opportunity in providing it to them.

Generally, in my experience, those who deal with such an agent want and deserve such an agent – they seek them out and do so without coercion. I don’t have a problem with that. I’d rather they have the option to go there than come here.

#153Form Man on 01.18.13 at 12:29 pm
??? intense competition for homes ? With an MOI of 20 and skyrocketing rental vacancies, the buyers ‘who all want to live here’ must be stuck outside the city gates again. Destined to circle aimlessly, unable to enter, while developments languish, unable to find buyers. Kelowna is truly a strange place indeed……..

Why don’t you try opening your narrow mind if not your field of vision? You are missing my point. It’s not the competition to get here but the competition to survive once they are here.

#158Investx on 01.18.13 at 12:48 pm

Your admiration of such a character only further reduces your credibility and integrity into negative territory.

Clearly I need to take the time to proofread my comments, but seriously do I not waste enough time posting them as it is? I’m sorry both you and Betamax were unable to comprehend what the intent of my post at #135 was. Scroll to the top of this one and check out my response to Betamax which I now would say to you too.

#203 Old Man on 01.18.13 at 5:32 pm

I am still trying to understand what is going on in this world as is nobody ever working anymore? Well once again did a transfer of funds from Toronto to my local branch, and there was no place to park, so parked to see a car moving like an idiot and went in. I walked into the Royal for some cash, and all was well, and then went to the TD with a counter check as a deposit, and behind me a herd of people came in, and the teller who knows me well said this is your lucky day, so need some cash and said no; just deposit it for another day.

Tomorrow need to buy some food, as this will be a challenge; my point is simple, as do not see any type of depression in Canada, but a huge amount of economic activity with the banks, and retail outlets for all to buy for cash to buy goods and services everywhere, as parking is hard to get anywhere. I said cash and not with credit cards anymore.

#204 Snowboid on 01.18.13 at 5:40 pm

#188 Mike on 01.18.13 at 3:33 pm…

It appears that there are more than a few realtors that read from the same OMREB script, but MJB isn’t the golden one.

Too young, a transplanted Brit, and far too interesting (e.g. rally driver, world traveller, philanthropist, etc).

They do appear to have something in common – they are both ‘semi-retired’ from real estate.

MJB doesn’t seem to trash Kelowna too much, whereas you know who clearly states his feelings…

Postby Devil’s Advocate » Feb 24th, 2008, 1:33 pm…

“…So we are liquidating our assets in preparation for our move toward being, at best, part time residents of Kelowna. We just don’t want to put up with the B.S. anymore…”

“…Blow Kelowna off the map and I think the Valley would be better off being able to start with a clean slate in this part of it.”

“…After close to 40 years here it is a shame that we have to say “our city sucks!”

Postby Devil’s Advocate » Feb 24th, 2008, 4:33 pm…

“…As it is now… IT SUCKS and I can not wait to get outta here. Tell me good riddence… I’m fine with that…. as far as I am concern it’s good riddence that so many of you lemmings are attracted to this soon to be cespool even though you have destroyed it at least it keeps you from some of the other places we can escape to…”

Even the Dukes of Hazzi don’t talk like this!

#205 };-) aka Devil's Advocate on 01.18.13 at 5:48 pm

#193Andrew on 01.18.13 at 4:11 pm
DABob,

Okay I shouldn’t but I’m going to try and interpret your last comment, correct me if I’m wrong.

1. Being screwed over by a realtor is somehow the victim’s fault.

2. BlogDogs get screwed over by Realtor’s because their negative “attitude” attracts “that” kind of Realtor.

Somehow, unbelievably…
a new crazy low.

Basically in a word… ‘YES’. EXACTLY!!! Suck it up buttercup. Don’t like it, get off your ass and do something about it. You attract success or failure – you, alone, decide which one.

1. Don’t be an idiot. Select your REALTOR® wisely

2. Try, just try, to look at it from the other side to better understand what and why it is as it is and maybe, just maybe, you will adopt a better attitude that serves you better in your endeavors.

Geesh, does your mommy have to hold your wee wee when you go pee pee too.

OK you win, I can’t take it anymore. I need to take a break to regain the strength to take on you ALL again later.

#206 Snowboid on 01.18.13 at 5:55 pm

BTW, Team Hazzi appears to be in the rent/lease to own business now as well…

http://classifieds.castanet.net/details/why_rent_when_you_can_rent_to_own/1453608/

#207 };-) aka Devil's Advocate on 01.18.13 at 6:02 pm

#204Snowboid on 01.18.13 at 5:40 pm

Caught your post just before signing off and I gotta admit there was a time I might well have said all that and more.

There is great truth in the following post

#196robert james on 01.18.13 at 4:38 pm
#151 Ogopogo

‘I’ve long learned to simply ignore the mass of Kelownians carrying their inferiority complexes like a trophy.’ Better known as ” the Okanagan Lifestyle” aka looking like a millionaire on mininium wage,, hence the huge number of grow-ops.. I live South of kelowna.. I first came to Kelowna in 1967 and at least the millionaires were real then as opposed to these ass clown goofs in their mortgaged phony Mcmansions .. lol

I remember a better Kelowna. Kelowna is changing and, I am sure, there will come a day I can tollerate it no more.

It’s sad, what we lost it’s sadder what we’ve become in a lot of ways. Still Kelowna is, for me, the place to be as there is so much more here than anywhere else. That is really it’s downfall. I remember the talk in the town was that we wouldn’t be able to keep it a secret much longer. I think the secret got out faster than many of us thought it might.

There’s no stopping it now. It will never get as bad as Toronto although I am sure there are many, more, who prefer it there. And so too will there be many more who like Kelowna for that which they shape it to be and they will keep coming and changing it, eventually pushing people like me out.

Can’t stop change, sure can profit by it in the interim though. If they are going to come and take our Kelowna away they are going to have to pay us for it.

#208 Paul on 01.18.13 at 6:10 pm

#151 Ogopogo on 01.18.13 at 12:07 pm

10/10 for that post! It’s so so true!! Kelowna is full of people full of themselves.

#209 Mike on 01.18.13 at 6:15 pm

Thanks for clearing this up Snowboid

#210 Form Man on 01.18.13 at 6:19 pm

#204 Snowboid

DA embodies exactly the sort of thinking that keeps Kelowna in the bush leagues.

Canada has a population of some 35,000,000 people. With a population of 120,000 and available housing inventory stuck above 4000 units for years now, Kelowna is quite obviously not ‘where everybody wants to live’. In fact, there is an arrogant laziness in the very idea ( i.e. we don’t have to produce anything, we can just wander around waiting for the circling herd to find the keys to the city gate ).

The same sort of thinking causes developers to start $80 million condo projects in 2011 when the market is clearly saturated ( Sopa Square, now bankrupt), or start building 18 story office buildings with no tenants lined up ‘so as to be ahead of the curve’ ( Landmark 6, just completed, totally empty…..)

This is not the sign of competition, this is a sign of naivete…………

DA’s approach of bullying and belittling buyers is juvenile and self-defeating, and indicates immaturity. No wonder he is lashing out in desperation and panic now that the bloom is off the rose.

#211 Ogopogo on 01.18.13 at 6:21 pm

#204 Snowboid:

But it’s ALWAYS a great time to buy in Kelowna! But it’s ALWAYS a great time to buy in Kelowna! But it’s ALWAYS a great time to buy in Kelowna! But it’s ALWAAAAAyyysszzzhhhh….

(sorry, ran out of batteries)

#212 espressobob on 01.18.13 at 6:22 pm

#190 Victoria Tea Party

Interesting comment. Maybe there is a point to this whole doping thing? I think i got it? Time to invest in a pharmaceutical ETF!

#213 Andrew on 01.18.13 at 6:24 pm

DABob,

Apparently you got your RE/financial training by completing the workbook at the back of “The Secret” that was all the rage a couple of years ago.

Once again, please don’t mention various body parts, your wife’s, mine and certainly not yours, ugh!

Oh yeah, you forgot the update, close the deal today?

Credibility rating? Based on today’s posts, bottom of the cesspool seems about right.

#214 Canadian Watchdog on 01.18.13 at 6:24 pm

#203 Old Man

Canadians have no cash and whatever cash they do save will be used to service debt. New HELOC figures from OSFI reveal outstanding balances jumped to $225B in Oct from $212B a month earlier. Canadians are trapped and using debt to pay debt. This is already a crisis.

#215 Tony on 01.18.13 at 6:37 pm

Re: #177 Holy Crap Wheres the Tylenol on 01.18.13 at 2:24 pm

Unless there’s talk of a takeover sell it before it hits zero. Note all Canadian high tech stocks end up going to zero. It’s a time tested trend.

#216 espressobob on 01.18.13 at 7:03 pm

Garth, Pleade delete comment #211. Not in good taste!

?? — Garth

#217 };-) aka Devil's Advocate on 01.18.13 at 7:06 pm

#210Form Man on 01.18.13 at 6:19 pm

Seriously, the biggest challenge in my business is the task of culling the business I don’t want from that which I do.

#218 Ron H on 01.18.13 at 7:39 pm

The truth has been told. I live in Penticton, lots of houses
that need upgrading because no one has any money to do it. I got an estimate for a simple bathroom reno, 8000+.
My neighbor’s house is for sale for the last two years.
Step back in time to 1976. Buyers want something for the money, this will not end well.

#219 Nostradamus Le Mad Vlad on 01.18.13 at 7:59 pm

#154 NoBodySpecial — “The whole point of this web site is to invest your money with the same banksters that crashed the world’s economy, barely 4 years ago. Now that’s part of the system.” — Well said, and that is the system which is changing now on a moment-to-moment basis. This show has just about run its course.

#159 jess — Good link. Greed is abundant throughout the world. If the UK ever decides to adopt the Euro, it means the Channel Islands would lose their tax status. So, where would their income come from?

#175 █ ♣ █ ANONYMOUS — “There is nothing else for the men to do.” — I guess this is what leads to an increase in alcoholism, drug addiction etc. They take their welfare money and blow it on booze and drugs, because there is no light at the end of their tunnel.

#190 Victoria Tea Party — “Oprah and Lance are sitting there trading silly questions for lie-through-your-teeth answers and to what end?” — Knowing that zillions of viewers would be glued and ham strung to their cereal boxes, Armstrong and Oprah got what they wanted — attention for Armstrong while oprah did her part in galvanizing viewers away from the stuff of this world.

#220 Old Man on 01.18.13 at 8:12 pm

#214 Canadian Watchdog – I respect what you have to say but in my corner of the woods live in a mega wealthy area in the Province of Ontario, with old money and new money mixed, and just laugh at the kids with the Trust Funds cleaning up, as know them all, and they are cleaning up making big money. Damn they all know me well, and asked me to hop on board with a few deals years ago to pool funds, and took a pass with Real Estate.

I did not see their vision, and I was wrong and these young women were right, so in the end lost $millions by not paying attention to them to hop on board, as all was directed to income producing Real Estate. I will never discount young women ever again with the knowledge that their parents were pulling the strings in the background – very wealthy.

#221 dosouth on 01.18.13 at 8:15 pm

AKA et al – yes Kelowna was the place to be. Industry has abandoned the city, only stores being built really are on West Kelowna reserve lands, this is not growth just renting back their land.

Even the RCMP Supt and his wife who became a mountie @ 50 yes 50 have problems in this crime town with their own family -

http://bc.ctvnews.ca/kelowna-top-cop-s-daughter-charged-with-dealing-drugs-1.775869

Still to go to trial. You see we put the value on the wrong things. Career changes late in life, chasing the dollar and crappy investments. Yes I lived in the Okanagan for a total of 14 years but had seen the light and it ain’t in the Sunshine taxed Okanagan.

#222 jess on 01.18.13 at 8:31 pm

anybody read this?

http://www.retirementheist.com/about/
How Companies Plunder and Profit From the Nest Eggs of American Workers

#223 Daisy Mae on 01.18.13 at 8:35 pm

“If the market isn’t dying, ethics are. Amen.”

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

Yep! In every way. As a nation…..make that, global. We can’t sink any lower so there’s only one way we can go and that’s up….back to integrity and honesty. What a concept?

#224 Form Man on 01.18.13 at 8:37 pm

#216 DA

why is that a challenge ? personal ethics generally make it easy to turn away business one doesn’t want…….

#225 Hoof-Hearted on 01.18.13 at 8:51 pm

RE in Kelowna?

Think of it like a big snake…

If HAM goes in one end(Metro Van)….the Kelowna market absorbs rich turd$$$$ at the other.

That’s why the Coquihalla Highway was built….to grease the glistening turd$$$$ migration.

If HAM has any shrinkage…Kelowna’s going D-O-W-N.

#226 Canadian Watchdog on 01.18.13 at 9:08 pm

#220 Old Man

I will never discount young women ever again with the knowledge that their parents were pulling the strings in the background – very wealthy.

Those with greatest financial knowledge carry the least debt and use other people's money to make money. That's why the young wealthy woman came to you.

#227 Ogopogo on 01.18.13 at 9:50 pm

#216 espressobob on 01.18.13 at 7:03 pm
Garth, Pleade delete comment #211. Not in good taste!

?? — Garth

espressobob, did my RoboRealtor© offend your delicate sensibility?

#228 furst on 01.18.13 at 9:52 pm

#152 Dr. WAYNE on 01.18.13 at 12:12 pm

Nice … but … no fraud … and I don’t live alone (with a babe and 15 guitars) … eat your heart out.
_____________________________________________
Yeah, sure…..when you say babe do you mean of the human variety right? Because, I seriously no matter how good my imagination is (and it is good) can’t see how any lady, babe or not would be able stay with you for an extended period of time. And when I say extended, I mean more than 1 date. So I’ve decided that you’re lying about that. On the other hand, I definitely believe you about the guitar. With no ladies to spend money on, you have both the funds and time to collect 15 guitars. You have a Gibson?

#229 Snowboid on 01.18.13 at 10:12 pm

#210 Form Man on 01.18.13 at 6:19 pm…

I always thought Sopa Square was in trouble, didn’t realize they went bankrupt.

It looked like a promising project on paper, but the prices they were asking for ‘prebuild’ units were crazy expensive!

#230 The American on 01.18.13 at 10:24 pm

Are you f-ing kidding me? Well, I’m really not all that surprised…
http://news.yahoo.com/canada-put-wrong-maple-leaf-canadian-dollar-20-195337455–business.html

#231 Vangrrl on 01.18.13 at 10:32 pm

#123:
Thanks for the laugh… yeah, what’s the deal with the cheesiness of realtors these days? Or is it just BC?

#232 Form Man on 01.18.13 at 11:06 pm

#229 Snowboid

great project, great location, wrong timing ( if they had been able to deliver a completed project in 2007, they would have sold out even at the high price point). It will be awhile before that kind of development can succeed again.

#233 Ogopogo on 01.18.13 at 11:47 pm

#229 Snowboid on 01.18.13 at 10:12 pm
#210 Form Man on 01.18.13 at 6:19 pm…

I always thought Sopa Square was in trouble, didn’t realize they went bankrupt.

It looked like a promising project on paper, but the prices they were asking for ‘prebuild’ units were crazy expensive!

Did Sopa Square really go bankrupt? It seems like the main crane was still working as recently as a couple of months ago.

So what happens to the project? I guess all the plans for businesses that were planned for the ground floor will also go kaput? They were even talking about putting a Codfathers there.

#234 Form Man on 01.19.13 at 12:35 am

#233 Ogopogo

The project is in limbo right now as funding has dried up. Typically when this happens, there is a flurry of lawsuits that freeze progress for a time ( months or even years ), then a receiver will either sell the development as is, or complete it, depending on circumstances. Construction financing is high risk, and therefore high interest, so delays are expensive, and if lengthy, the project is hooped.

#235 futureexpatriate on 01.19.13 at 4:13 pm

When realtors look like porn stars, that tells you what you’re really buying.

#236 Cici on 01.19.13 at 6:26 pm

#bclandguy

Are you serious? You really want to buy Smoking Man’s “secret sauce?” Reading some of your earlier posts, I actually thought you had your head firmly screwed onto your shoulders.

You do realize that he is a self-proclaimed alcoholic who has openly expressed that he has no ethics, and believes the masses are idiots who are deserve to be lied to and stolen from? He’s only mentioned several zillion times that he views the general populace as hardworking “slaves” that he should rightly rule over.

Well good luck with that. If you have any cash left after the transaction, I just got an e-mail from a Nigerian prince that I can forward to you – he’d love to convince you that you are a distant relative to get his hands on the rest of your money.

Such a tragic irony that today’s post is entitled “brilliant!”

#237 nubbers on 01.20.13 at 6:01 am

Snowboid @65
That’s a 29% drop from 2010, if the agent’s claim is to be believed: “Owners paid $345 in 2010!”.

That the agent is emphasising the drop suggests that they are now marketing to contrarian vulture types, rather than those who think prices will always go up.

I wonder – will we now see (at least some) agents working the numbers to make the price drops seem as large as possible? Agents appear to have the freedom to claim what they like, and if they perceive the need to emphasise price drops, then perhaps we will see an inversion in the fiddling of statistics.

There must be quite a few on this blog who’s trigger to buy will be a certain percentage drop. I know that’s how I’m think sometimes.

Perhaps caution would be advised when vultching. Don’t take figures at face value and check against rental values?

Just a thought.

#238 AJ Hazzi - Nothing to hide on 01.20.13 at 4:26 pm

I just spent the last 30 mins reading the comments to Garth’s post about me and my editorial. There is so much I’d like to say in an effort to set the record straight and rebut these accusations, however time does not permit comment on each.

I’m glad that my loyal friends and clients forwarded this on to me so that I’d have a chance to comment. I am aware that this response will in no way satisfy everyone’s pre judgments and that I’m probably opening myself up to even further insult but here goes:

The first and most important point is that nowhere in my article have I endorsed doing anything un ethical. You may find this kind of strategy aggressive, I wont disagree, but its 100% above board. Contrary to what this article suggests, I am not a pitchman or a swindler. I am a consultant and with hundreds of happy clients that continue to refer me for my skill set in structuring investment deals. I have chosen to adopt Video and some amateur journalism to differentiate myself from the other 1000 realtors in the Okanagan.

The reference Garth made to finding a shady mortgage broker is the one thing I must be very clear on. Financing rental property at 80% LTV is done everyday and is exactly the same way most real estate investments would be leveraged. In fact I had a Senior TD Bank Mortgage Specialist scrutinize my article before I posted it.

Yes it is out of the REIN playbook, REIN has existed for over 20 years and has helped thousands of people obtain wealth through ownership. I am a student of real estate and one that actually practices these strategies in my own portfolio.

Another thing to be noted here is the context of my column, it is under the real estate investment header of a local news website, I have endeavored to share a monthly article on investment strategies for people with an interest in real estate investment. I am not on late night TV as some here would say. I am not targeting the weak. I am looking to provide value first and if people like what I have to say, they can seek my services.

As for my YouTube videos, they are the same, meant to be informative, if you don’t like my style that’s ok, I gave up trying to please everyone a long time ago, but know this, I publish these pieces with honorable and sincere intentions. I am trying to help people achieve their goals. Real estate investing has been extremely good to me and to many of my clients. My RRSP’s and TFSA’s on the other hand have not. I only aim to give people another option.

There will always be the Chicken Little’s of the world saying the sky is falling however the economic fundamentals that I see paint a different picture. Kelowna has been in a down market for over 4 years, it is showing signs of recovery based on increased unit sales and decreased inventory. Nowhere in my article do I talk about market appreciation. In addition, investment purchases that once made up approx. 6% of the market are now closer to 10%. It is my business to put my self in front of those 10% and hope they like what they hear. I cannot apologize for my SUV or my bikini clad fiancé who happens to be a gem by the way, but as a gesture I will really try and limit my hair product moving forward.

This is not meant to instigate a debate on what the market in Kelowna is likely to do, everyone is entitled to their opinion on that. I just want to add a human element to what could come off as plastic or over zealous, I am the first to criticize my own videos for being too cheesy, I’m learning to use the medium as I go. Its unfortunate that when someone puts himself or herself out there online, they open themselves up to peoples negativity.

I have been a realtor in Kelowna for over a decade, I have not had a perfect career and I have suffered the consequences for not being careful enough with my paperwork, The 30 day suspension 5 years ago that was referenced was for accidentally allowing one of my listings to accept 2 competing bids without referencing in the agreement who was in 1st and who was in 2nd place. Stupid? Absolutely, un ethical? Absolutely not. The good news is I have learned from my mistakes and it has made me a better realtor for it. I have recently gone back to school and passed my Managing Brokers license. This higher level of licensing holds me to a much higher standard and I know exactly where the boundaries are. I am the owner of a growing firm in Kelowna and not here to make a quick buck. I would not jeopardize the livelihoods of my agents by compromising my integrity to make a quick commission. Despite what you may think, times are not that tough. 2012 was our best year on record and none of that revenue was obtained by this particular strategy. The simple fact is we sell homes and serve our customers well, and as a result people refer us to their family and friends. I wish you all a prosperous 2013, and for the licensed realtors commenting on here remember our ethics code…and go back to work.

A good response. Thank you for taking the time to contribute it. — Garth