Race to the bottom

bottom

Whether F likes it or not, there’s a race to the bottom in mortgage rates. I told you why yesterday. Lenders figure 190,000 jobs will be lost over the next twenty months, and they need fresh meat.

As a result, any bank will give you a five-year closed home loan for 2.99%, or less. Show a little attitude, in fact, and you’ll get 2.74%. There’s even 10-year mortgage money floating around at a little under three per cent – for the first time in two generations. Nobody’s making much (if any) money lending at these levels, but at least they’re moving product and collecting clients.

F was right to try and corral this, although he did it in a clumsy, dumb, Tory kinda way. Leaning on Manulife when it promoted 2.89% money was theatrical, but unfair. If he wants a floor on rates then he could have set one. Making an example of the bank was uncalled for. Amateur. Bully.

But compared to this, guys like NDP leader Tom Mulcair, Liberal boss Bob Rae or wannabe-Harper-replacement Conservative cabinet minister Maxime Bernier were hypocritical opportunists. “It’s the market. It’s supply and demand that decides the prices. It is the case for interest rates, it is the case for other products too,” said Bernier, proving he’s better at massaging epic cleavage than economic policy.

The fact is F has every right to diddle with rates. He earned it. At least $600 billion still buys something these days.

FedBudget20130321

No major bank, no mortgage broker, no credit union would loan money to anyone without a massive downpayment and impeccable credit if it weren’t for CMHC. The lower the down and the iffier the client, the higher the rate would be. To score a mortgage at prime or less only people who didn’t need loans would get them since the risk of default to the bank would be unacceptable.

By wiping away this risk, and transferring it to the government and taxpayers, CMHC has allowed the banks to come to this: offering 95% of the purchase price of a house to people who have been too indulgent, undisciplined or indolent to save any money, who may have no real credit history or homeowning experience. Not only do they get the loan, but at the same rate offered experienced, solvent clients with a 50% deposit.

This is not the way the real world works. By erasing the premium for risk, CMHC has encouraged every lender to take excessive risk. The results are obvious – a massive run-up in housing prices and an historic explosion in mortgage debt as real estate becomes an entitlement. The feds now guarantee about $575 billion in high-ratio loans. We’ve created a housing bubble so gaseous even a minor change – like reducing amortization periods from 30 to 25 years – causes market upheaval and widespread job loss. What more proof do we need that handing out crack causes addiction?

So a mortgage rate war may save some mortgage broker jobs, but it only makes the future worse. The soft landing F dreams of will end up being a smoky hole. The kids who bought with 5% after 2010 won’t know what hit them. Boomers expecting to cash out of the chipboard McMansions and downsize may find their properties unsalable.

Don’t believe me? Look south.

In most ways, the US middle class is like ours. Comparable taxes, incomes and standard of  living. Like us, people there have long believed in real estate. And at the height of the housing bubble, homeownership in the States touched 69% (it’s now 70% here). Like us, they had no-money-down loans, teaser loans, lax lending standards and the belief real estate is way safer than, say, the stock market, because it always goes up.

You know the rest.

Like us, Americans concentrated most of their net worth in a single asset. Today, 57% of all workers have less than $25,000 in total household savings excluding their homes. A third of people “have no confidence” they will retire with enough money. Only half of people working or retired say they could find $2,000 if a personal crisis hit. Much unhappiness lies ahead.

See what real estate can do?

By the way, Royal LePage reported this week that 72% of  Gen Yers (19 to 33) now worry they won’t be able to afford a home. Good.

302 comments ↓

#1 [email protected] on 03.22.13 at 7:33 pm

In Russia You F F!

#2 duke on 03.22.13 at 7:36 pm

Yippy! I will never afford a house! Maybe Toronto will become like Detroit once the boomers retire.

#3 Melanie F on 03.22.13 at 7:37 pm

Ugh. We really are screwed!

#4 guelphstudent on 03.22.13 at 7:45 pm

I gonna be hated for this, but why not abolish retirement all together. You work until you can’t. Than you get a government disability for the rest of your life. I saw this add on TV which says average Canadian spends last ten years in sickness. So basically on average you will get ten years of retirement. If you smart enough and made enough money, then it is up to you when you can retire.

After rereading this paragraph I realized that retirement was already abolished for most boomers as they would be economically work anyways. That sucks.

#5 Mark W on 03.22.13 at 7:48 pm

http://www.news1130.com/2013/03/22/looking-at-how-to-piss-of-a-vancouverite/

http://matadornetwork.com/abroad/how-to-piss-off-a-vancouverite/

Drinking the Kool Aid in Vancouver.

#6 Humpty Dumpty on 03.22.13 at 7:52 pm

At least you can keep your phone…

UN: More people have access to cellphones than toilets

Such insanitary practice – common in parts of Brazil, China, India and some other states in South Asia and sub-Saharan Africa – is among main causes for diarrhea which annually kills over 750,000 of children aged under 5 years old.

http://rt.com/news/toilet-phones-water-sanitation-663/

Who’s lost it now G……

Non sequitur. — Garth

#7 Randy on 03.22.13 at 7:54 pm

Time to privatize the CHMC….Get the taxpayer off the hook…Force the Banks to buy it….

#8 Old Man on 03.22.13 at 7:55 pm

Ok cannot read this last pic, but years ago there was this puppy sitting out in the cold in front of my dad’s store in the snow, and my dad took the pup into his store to run around, and brought him home. My mom did not like dogs at all, and my dad put it in the coal bin in the basement, and during the night she said I hear a dog barking.

This is so funny as my dad had to come clean and brought the young pup into the bedroom with my mom, and made a bed for it with an alarm clock that was ticking so the pup would go to sleep, and my mom fell in love with this young puppy the next morning, so hate went to love.

#9 Dr. Hoof-Hearted on 03.22.13 at 7:55 pm

Hey…I beat Dr Wayne…..a–g—a–i—-n

#10 T.O. Bubble Boy on 03.22.13 at 7:57 pm

Could the “diddling” with Manulife have anything to do with the fact that it isn’t one of the big 5/6 banks?

Don Cherry (Dominion Lending) has 5-year fixed at 2.84%:
http://www.dominionlending.ca/current-rates?homepurchase

Maybe F and Harper should cut Hockey Night In Canada funding again.

#11 Smartalox on 03.22.13 at 7:57 pm

Can any mortgage-brokering blog dogs tell me if these rock-bottom rates are available to a buyer with a 20% or more down payment, where the buyer is not required to buy CMHC insurance, or are these rock bottom mortgage rates only available if the down payment is less than 20%, and CMHC mortgages are required, so that the bank can fob the risk off on the government?

In other words, if I save up a big down payment, and buy within my means, will I be penalized compared to someone who is more leveraged, simply because CMHC absolves the bank of risk in the case of the more leveraged buyer?

Thanks!

#12 Vandamncouver on 03.22.13 at 7:58 pm

Garth,

Do you feel this enormous blunder is one of the reasons why taxes will increase in this country in the future?

How confident are you about this tax hike?

#13 CrowdedElevatorfartz on 03.22.13 at 8:00 pm

Is the “Elfin Deity” wearing an NDP green tie?
Talk about gender confusion!

#14 BC_Doc on 03.22.13 at 8:00 pm

Garth– agreed+++

The Feds need to raise the CMHC premium, increase the down payment required to avoid insuring, and stop suppressing interest rates. Even then, it’s too late in the game and most people are screwed. The upside, however, is my school aged kids may now be able to afford a house in years to come.

#15 Dr. Hoof-Hearted on 03.22.13 at 8:01 pm

There ain’t enough Red Greens and Duct Tape to fix this global mess…

The Banksters are lining up for a rape and pillage of real assets…..and likely another False Flag to set off another major war to distract the public.

The only lesson we have learned from history is we learned NOTHING from history.

#16 Thomas on 03.22.13 at 8:03 pm

That photo with the dog is heart-breaking.

#17 Daisy Mae on 03.22.13 at 8:03 pm

Did you have to spoil my day with a pic of that little weasel?

#18 CrowdedElevatorfartz on 03.22.13 at 8:04 pm

@#4 Guelphstudent
Your comment “why not abolish retirement all together. You work until you can’t…..”

Its already happened to unprepared boomers.
Its called ‘Walmart Greeters”

#19 Vandamncouver on 03.22.13 at 8:09 pm

Also would I be right in assuming that the government likes to keep a close eye on the dollar figure of RRSP’s in Canada? By that I mean they keep a close eye because they know they can legislate a bigger cut of our RRSP’s if needed?

#20 Affluent Boomer on 03.22.13 at 8:09 pm

Buried deep in the budget according to this article “Does Ottawa’s tax change on ‘character conversion’ spell end of some mutual fund offerings?” Ottawa will take away another saving strategy called “character conversion transactions” offered through some mutual funds that converted interest income to capital gains. The changes will prevent funds form converting interest income into Capital gains.

#21 Good Authority on 03.22.13 at 8:13 pm

If CMHC backing is such a risk then why doesn’t F simply up the CMHC insurance rates to address what is perceived as a growing risk?

The higher payments would help to control inappropriate housing price increases.

#22 Daisy Mae on 03.22.13 at 8:15 pm

“F was right to try and corral this, although he did it in a clumsy, dumb, Tory kinda way. Leaning on Manulife when it promoted 2.89% money was theatrical, but unfair. If he wants a floor on rates then he could have set one. Making an example of the bank was uncalled for. Amateur. Bully.”

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

Just another amateurish move on the Tories part. Is it possible for them to do ANYTHING right? I’m so angry I could spit…

#23 espressobob on 03.22.13 at 8:16 pm

What ever happened to common sense? CMHC should be modified, tweaked, adjusted, or just thrown under a bus where it belongs! Doesn’t F get it?

#24 Blasé on 03.22.13 at 8:20 pm

To see what Canada will resemble in the future, just do an mls search of Windsor, Ontario on properties from $75,000-$125,000. plug in 3 bedroom, 1+ bathroom. You’ll see big, old houses, the McMansions of their day, mant 2 story brick beauties with real hardwoods throughout, on gorgeous tree lined streets, close to the river with a view of gleaming downtown Detroit. the same can be found in St.Thomas and other Southern Ontario cities. These cities unemployment rates are just a few percentage points above Vans, TO or Montreal. Yet you can’t give away a home there. All it takes is job losses for a sense of hopelessness and desperation to set in over a community. We have 2 generations who don’t know what that feels like in Canada. They will learn shortly.

#25 Realtor # 1 on 03.22.13 at 8:22 pm

I love it .. “Those who bought after 2010″

Prices will not go to the 08/09 level

#26 BenF on 03.22.13 at 8:24 pm

UK warned of downgrade by Fitch. Canadians – you can watch what it looks like when your country implodes with high private debt. Going to be messy. Learn from our mistakes.

Garth – what do you think of the UK doing Fannie Mae by guaranteeing 13bn mortgage debt? Surely you would do your nut if you lived in the UK.

#27 Joe on 03.22.13 at 8:26 pm

The part that really pisses me off is that people who didn’t embark on that debt orgy in the past few years will still have to foot the bill for all the other idiots. We can be sure taxes will go higher once CMHC needs to step in for the entitled ones defaulting on their payments.

Unfortunately, since such a large percentage of Canadians is part of this scheme, I doubt there’ll be any repercussions for the government who let CMHC insurance rise to these dizzying levels and who fueled this craze in the first place. If that isn’t evidence of incapacity of an entire country, I don’t know what is, especially since there was a brand new blueprint of how _not_ to run the real estate market readily available just south of the border…

*shakes head*…

#28 FTP - First Time Poster on 03.22.13 at 8:26 pm

Gotta love Malcolm Mayes take on F’s

http://www.edmontonjournal.com/opinion/editorial-cartoons/Malcolm+Mayes+cartoons/1007472/story.html

#29 AisA on 03.22.13 at 8:28 pm

“By the way, Royal LePage said this week that 72% of Gen Yers (19 to 33) now worry they won’t be able to afford a home. Good.”

The fifth and longest wave in price drop right there. When they worry that home prices won’t stop dropping, I will be putting in offers.

C’est la vie mes amis.

#30 Affluent Boomer on 03.22.13 at 8:29 pm

We have been led to believe that we are different here in Canada. Every major bubble eventually suffers the same fate. It is never different! I watched the US housing market implode and even sold my home in anticipation for the same in Canada only to find out that economic reality was not at play, instead Government meddling to keep the housing market propped up was. The government has now run out of ammunition. Boomers are approaching retirement deeper in debt than they were a decade ago with little saved in their retirement accounts. These boomers are in for a big surprise!

#31 Jarnail on 03.22.13 at 8:33 pm

You know Garth here is the cold hard bitter truth on any real estate in Scamcouver. First, it’s that too many war relic fixer uppers circa 1947 are asking $750,000 to start. That’s basically just to live anywhere south of 1st Avenue, and West of Boundary. Anywhere? And that’s the asking price as of right now by MLS board / “bored” realtors that are working now at McDonalds. But don’t go and share that with Tsur Sommeville or Cameron Muir over at the real estate is going to keep riding an exponential storm over the next ten years. That’s right , all bulldoze jobs that are asking 800k now in 2013 will be asking 1.6 million in 7 years. Even on bulldoze jobs in Scamcouver. That is the biggest horseshit I ever heard.

#32 Old Man on 03.22.13 at 8:34 pm

#15 Thomas – this photo tells all, as no matter how bad things become in life one’s dog will always be there for support; encouragement; and loyality for better day in life.

#33 CanSpeccy on 03.22.13 at 8:34 pm

It seems hardy to have been a responsible action for the government to make public the banks’ liabilility for reckless lending.

Better to prevent the reckless lending by ending fractional reserve banking, something that could be readily achieved with a digital currency.

Commercial banks would still be in the lending business, but only money they themselves borrowed either from depositors or from the central bank. That way, the central bank would have absolute control of the money supply. They could even, if necessary, “push on a string” by offering banks funds at negative interest rates.

If the central banks provided online banking facilities to all, depositors would not have to worry about their savings. A central bank, with the power to print its own money, could never default.

And if every unit of the currency had a digital identifier, it would put an end to fraud, theft, bribery and money laundering — which I guess is one big argument against the idea.

#34 observer on 03.22.13 at 8:37 pm

So what happens when all these bad loans default and CMHC runs out of cash. Time to get the savers.

Gee gold, silver, commodities, futures doesn’t look bad. Can they rape and pillage saver account just like cypress?

Diversify, don’t place all your saving in banks cause they can take it away just like that to pay the bond holders and banks.

#35 Tim on 03.22.13 at 8:39 pm

The neo-cons have once again sucked up to the big corporations and screwed the middle class by putting them on the hook for the inevitable foreclosures. The only thing to do–other than to vote Harper out of power, which will restore the international credibility of Canada, strengthen democracy, and help protect the environment–is to buy the banks. Big wigs at TD Bank are buying more shares…

#36 Pr on 03.22.13 at 8:54 pm

AHAHAHA! Men do i have some fun reading this blog! And on top of that, i am learning, all that, for free. Thanks

…he’s better at massaging epic cleavage… lol ++

#37 Bill Gable on 03.22.13 at 8:56 pm

Walking by the West End Condo being slammed up across from a Pet Store and a Macs.

Yawn, two blocks to English Bay. Hurrrrrry, step right this way……

The place has created about as much buzz as Cristy Clarke’s upcoming Bio “I Can spel Liberal”.

#38 Whitey on 03.22.13 at 9:00 pm

Garth, another quick question. The below link believes that Ireland, Spain, and Italy could possibly default within the next 3 years. I understand the balance and protection that comes with it; however do you believe that world markets have already factored in the failure of any and/or all of these defaults?

http://viableopposition.blogspot.ca/

Markets are smarter than web sites. — Garth

#39 mcmatterson on 03.22.13 at 9:04 pm

Anyone know where these sub-3% ten year mortgages Garth refers to are available? The lowest I can find is 3.69%.

Thanks!

#40 X on 03.22.13 at 9:07 pm

F should reduce the CMHC liability and have the lenders take out their own insurance for a greater portion of what they lend out in mortgages.

Or slowly increase the required down payment and let the banks advertise lending at whatever rate they prefer. They still lend for less, they just don’t advertise it now.

#41 waiting on 03.22.13 at 9:09 pm

Excellent post today. Sad to think of so many who may lose so much though …

#42 Will on 03.22.13 at 9:09 pm

@BC_Doc – default insurance is hard to price given central banks blowing bubbles for the past N years. Insurance generally protects against rare events, if a house burns down typically a whole street doesn’t burn down or a whole city.

With a housing bubble, you have the equivalent of a whole city or worse burning down. There isn’t an insurance rate people would be willing to pay to protect against that.

Of course the private insurance industry deals with the extremely rare and destructive events by spreading the risk around the whole globe. I don’t see tons of foreign insurance companies stepping up to help insure Canadian mortgages though.

#43 Jarnail on 03.22.13 at 9:11 pm

DELETED

#44 Stupesing in Cabbagetown on 03.22.13 at 9:11 pm

Seems the Brits are dealing with the same real estate obsession we are: http://tinyurl.com/cm6ym8x

#45 The Affluent Boomer on 03.22.13 at 9:13 pm

Buried deep in the budget according to this article “Does Ottawa’s tax change on ‘character conversion’ spell end of some mutual fund offerings?” Ottawa will take away another saving strategy called “character conversion transactions” offered through some mutual funds that converted interest income to capital gains. The changes will prevent funds form converting interest income into Capital gains.

#46 mamablondie on 03.22.13 at 9:13 pm

I was in church last week in Victoria and the pastor actually mentioned that the offering had been down significantly over the last few months.

This is a very cool church with really nice caring people and he didn’t bring it up in a manipulative way. I think he suspected people were having some serious financial stress. We have lots of young families and he asked if anyone wanted us to pray over them and to come to the front if they were comfortable with that.

To my surprise about half the congregation ended up out front and we prayed and he asked everyone to be aware of those who were anxious and struggling.

I believe that there are precious few people who aren’t watching their money very carefully these days. OK, maybe Vancouver. Nothing ever seems amiss there, right?

#47 The Affluent Boomer on 03.22.13 at 9:13 pm

We have been led to believe that we are different here in Canada. Every major bubble eventually suffers the same fate. It is never different! I watched the US housing market implode and even sold my home in anticipation for the same in Canada only to find out that economic reality was not at play, instead Government meddling to keep the housing market propped up was. The government has now run out of ammunition. Boomers are approaching retirement deeper in debt than they were a decade ago with little saved in their retirement accounts. These boomers are in for a big surprise!

#48 blok existentialist on 03.22.13 at 9:15 pm

Has anyone ever read Harlan Ellison’s short story A Boy And His Dog? (There was a movie out, too. I thought it was okay, but then I also liked Waterworld.) At any rate, this is The Boy And His Dog ‘up top’ twenty years later. You’ll remember the hot girlfriend (probably wanted to buy a house) and what happened to her. Love conquers all.

#49 maria on 03.22.13 at 9:19 pm

#23

Oh man.

I need to move to Windsor. Dang.

#50 CrowdedElevatorfartz on 03.22.13 at 9:20 pm

@#24 Realtor #1

Your comment “Prices will not go to the 08/09 level”

AHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

Thank you…..after a shitty week at work I needed a good gut laugh.

#51 Tom Vu on 03.22.13 at 9:21 pm

I have just renamed Toronto ” Cyprus “

#52 Race to the bottom — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate | The Affluent Boomer™ on 03.22.13 at 9:25 pm

[...] via Race to the bottom — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Est…. [...]

#53 Stinky the Fish on 03.22.13 at 9:25 pm

Cute picture and i am not talking about flaherty

#54 John on 03.22.13 at 9:27 pm

Hey Garth

Do you believe Edmonton will suffer the same fats as the rest of Canada. In migration is almost at 2906 levels, rental vacancy less than 2%, unemployment 4.2%. I know everyone thinks that there city is different, but numbers don’t lie, do they?

Hoping you could reply back.

John

#55 Stinky the Fish on 03.22.13 at 9:28 pm

Google: are there really punjabi hockey fans?

#56 John on 03.22.13 at 9:28 pm

Fate 2006

#57 Ronaldo on 03.22.13 at 9:30 pm

#18 Crowded Elevator Fartz -

”Its already happened to unprepared boomers.
Its called ‘Walmart Greeters””

The way that Walmart is going now with customers doing their own checkouts on their Iphones, I suspect that even the greeters will be replaced by a robot. It’s becoming more and more a self serve world isn’t it?

http://www.slashgear.com/walmart-expands-iphone-checkout-feature-to-12-more-markets-21274855/

#58 EI Dude on 03.22.13 at 9:31 pm

Although the Lower Mainland housing prices have no where to go but down, I do fore see an uptick in new home sales in April. The only reason is because we are getting rid of our HST and bringing back the PST and GST separately. I suspect some people have held off buying a new home until April because they think they are getting a great deal since they don’t have to pay the extra tax.

*sigh*

#59 Stinky the Fish on 03.22.13 at 9:36 pm

Hang on this the greater fool website not google

#60 Paully on 03.22.13 at 9:36 pm

We drove to Florida over the March Break. There were HUGE billboards along the I75 advertising land for sale:

“5 Acres, $24,995, $199/mo!”

Compare that to Connaught Ave, North York, where the UGLIEST sixty-year-old house on the street, with a 50 foot wide lot, recently sold for $711,000. Just a bit of a disparity there, no? On the bright side, for once, the long-term residents are actually hoping that it was bought by a developer who is going to tear it down!

#61 Ronaldo on 03.22.13 at 9:39 pm

#18 CrowdedElevatorFartz – actually, there is a much better option for us retired boomers jobwise.

The government is now hiring ”snitches” to sniff out people who are not paying their share of taxes so they are setting up a special hotline for that.

Apparently if the haul amounts to more than $100,000, they will pay you 15% but they will also tax that amount but since we are at such a low tax rate, no problem.

This would actually be a good job for laid off realtors as well since they probably know a good many people that they’ve run across in their travels that are not paying their share of taxes. Could be quite lucrative.

#62 afraidit allmightend on 03.22.13 at 9:39 pm

I’m surprised that there hasn’t been a general recognition of the statistics underscoring the working poor in Canada…..and I ‘m talking about 99% of the homeowners out there who have mortgages they can’t pay, bills they can’t pay, taxes they can’t afford and groceries they can eat……and are living from paycheque to paycheque bt borrowing short term from credit cards and payday loansharks. The entire country is puffed up on it’s own petard.

#63 Julia on 03.22.13 at 9:40 pm

Garth, i think for me this was the most compelling blog photo yet… And i was really moved by the one above it too. ;)

#64 DJB on 03.22.13 at 9:42 pm

Garth: Our friends to the south had the ability to de- leverage instantly by walking on their house with non recourse mortgages.

Funny they kept up their car payments and CC payments.

If you made $60k/year owed $500K on a house and $40K on a car and CC you had a 9:1 ratio. Walk on the house and pooch your credit for a few years but now you are down to .66:1

Canadians are not so lucky, this 165% debt to income and still rising is going to be very difficult to get from under.

Thanks for staying ahead of the curve BTW 90% are way behind the curve.

I am a mortgage broker business is so far down I have bought puts on Royal, CIBC and BMO all are up 50% already.

#65 CrowdedElevatorfartz on 03.22.13 at 9:42 pm

@#33 Tim
hmmmmmm
Time to add another layer to the tinfoil hat……

#66 Devore on 03.22.13 at 9:43 pm

Ask, and ye shall receive.

Ottawa to limit taxpayers’ exposure to mortgage market

In the federal budget tabled Thursday, Ottawa announced further steps to limit taxpayers’ exposure to the mortgage market by cracking down on banks’ ability to use bulk mortgage insurance as a tool to offset their risks and boost their bottom lines.

A mortgage, once insured by CMHC, becomes basically free money for the bank. The capital freed up through lower loss provisions can be put to work, or the mortgages packaged into attractive mortgage-backed securities and sold off to investors.

#67 CrowdedElevatorfartz on 03.22.13 at 9:44 pm

@#53 Stinky

” are there really punjabi hockey fans?”

Apparently you dont get CBC Vancouver……

#68 Old Man on 03.22.13 at 9:44 pm

I want to talk about dogs that need a home and you women pay attention, as met this young woman a few years ago at 9:00 AM in the morning with the most beautiful dog that I have ever seen in my life about 3 years old, and said can I pet his coat; she told me to freeze, as had to give him a code with a hug first or he will attack, as was looking at me.

Ok, we talked about this all, as she was doing a run in the early morning, as some guy came out of the bushes to attack her, but never saw her dog, and he took care of him bigtime, and called the cops. This dog was the love of her life, and got it for free at a rescue center, as there are several in Ontario, and it was a Greyhound. I say if you want a loyal dog better check into this all.

#69 AK on 03.22.13 at 9:46 pm

Tom Vu’s Boat for sale in Cyprus.

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

#70 Waterloo Resident on 03.22.13 at 9:48 pm

I just heard that Canadian Jim Flaherty will be ‘REVAMPING’ the CMHC system, resulting in only 90% of new mortgages being insured, and the other 10% being uninsured, so that if the home buyer bails, then the bank will be at a loss for that 10%. This will be for the next 24 months to see if it will slow down the housing market. If that is not enough then it will be lowered to the 80% level.

I wonder what this is going to do as far as difficulty in people with really awful credit to get a house?

#71 Notta Sheeple on 03.22.13 at 9:48 pm

Feeling sorry for MainStream Media these days.

With advertising revenues in the toilet, MSM has no choice but to prostitute themselves to the creators of “you’re richer than you think!” and “they’re not making any more land!”

Then again, why would anyone forfeit $0.99 a month to a virtual online newspaper, who’s ‘investigative’ reporting consists of an autopilot fax machine being carpet-bombed with deceitful press releases, when the truth is exposed here for free.

#72 eddy on 03.22.13 at 9:48 pm

Loans are only ‘risky’ to the lender when there is no collateral.
If a house buyer defaults, the bank takes the house. Can someone here please explain the risk?

#73 renters rule on 03.22.13 at 9:49 pm

@Realturd #1

Dream on dude. Condos are already at pre-2007 prices and lower. SFH are trailing, but tank they will. This bull has run straight up the cliff, and over the ledge — but good news, when he splats he will not feel anything as he has already expired from the coronary he had just as he reached the peak!!

I would hold you in contempt, but you are clueless as to what is actually going on…. enjoy your career change to a different part of the service sector!! Tip for you, unlike your last job: the customer is ALWAYS right!!! ;-)

#74 BernierBozo on 03.22.13 at 9:50 pm

Excellent piece, Garth. Maxime Bernier wouldn’t know how to even begin to run a depanneur, let alone talk sense about market mechanisms. Now, a question for you: if F continues to be concerned about the debt load and lenders racing for the bottom, why not simply raise the minimum downpayment that is required?

#75 Kalifornia on 03.22.13 at 9:50 pm

Garth, loved your post today – you couldn’t be any more correct – but, I feel there is a difference when you compare Canada and the US on the mortgage issue. The subprime and Alt-A mortgages had a specific rate increase that set in after so many months. Most were hoping to buy and unload within 6 months and walk with a nice profit with the belief prices jumped that steadily.

Those who have “locked-in rates”up here, of course they will have to refinance – but the system in the States was based purely on greed – interest only mortgages – please – maybe it’s different here afterall.

#76 CrowdedElevatorfartz on 03.22.13 at 9:51 pm

@#54John
I was a tad confused.
I thought your comment “Fate 2006″ was some deep “biblical” message (since your name was “John” and all )
Until I realized you were from the oil soaked nether regions of Alberta where grammar and punctuation are “second fiddle” to …….prairie oysters and money

#77 Ronaldo on 03.22.13 at 9:52 pm

Here is the link on the “snitch line”.

http://www.huffingtonpost.ca/2013/03/21/tax-cheat-snitch-line-flaherty_n_2926759.html

#78 CrowdedElevatorfartz on 03.22.13 at 9:53 pm

Yo ! Realtor #1 ! Meet John!
Let him show you where “Buffalo Smashed Head’ National park is……
Cause thats where the real estate market is going.

#79 Brian Ripley on 03.22.13 at 9:59 pm

To #2 Duke above who said: “Maybe Toronto will become like Detroit once the boomers retire.”

I don’t think so. The Feds have plans to move big money into Ontario where the important votes are ($900 million for its manufacturing industry).

Not only that but the armaments business just got a whole lot better in Canada, see charts and press related clippings here: http://www.chpc.biz/2/post/2013/03/canadian-budget.html

We are currently ranked 15th in arms exports which means we have lots of room to the upside.

If your skills are “mismatched” to the economy, take Mr Flaherty’s advice and get thee down to the retraining center and sign up for the Drone Program.

Follow the money.

#80 Smoking Man on 03.22.13 at 10:01 pm

On my Blog sometime Saturday, why stop loses triggers are important,

I would post it here but I can’t load images, if garth would grow a brain and turn this amazing pathetic Blog into a kick drudge into the lake Blog.

Look out, but look at garth always doing safe…. .

You financial planner dude, I had a vision of this, screw planning, and your a writer, can’t get it out of your sole….. You have a huge opportunity here, my advice free…. Well few shots of whisky….

But you won’t call or email…. Not in your nature..

Too bad…..

Expand it,

#81 george on 03.22.13 at 10:06 pm

Great post Garth.

#82 Brian Ripley on 03.22.13 at 10:06 pm

To #24 Realtor#1 who said: “Prices will not go to the 08/09 level”

In Vancouver average strata units are currently (Feb-2013 data) trading at 2007 price levels and have hit these levels at least 4 different times in the last 5-6 years. Chart here: http://www.chpc.biz/vancouver_chart.html

#83 Stinky the Fish on 03.22.13 at 10:10 pm

Is this Garth accepting comments or one of your cronies?

Guess. — Garth

#84 Smoking Man on 03.22.13 at 10:16 pm

Ok I’m loaded why do I want garth to succeed. Cause I hate Harpo, nothing would be me more satisfying than watch the bearded pre midlife harley riding gartho, beat the bent over richvale grad.
HARPO
He is so owned…. Gartho, how can any man not respect you. Flipping him the bird…

That’s way I’m here building your base for free.

God love you garth. I am sit faced, posts after this please delete.

#85 Tom Vu on 03.22.13 at 10:22 pm

Mr Smoking Old Man:

Weekend commences!

Advice: After 24 beer…..be careful…may end up with either a Kardashian or Granny from Beverly Hillbillies

http://www.joe-ks.com/archives/12Beers.htm

#86 Gladiator on 03.22.13 at 10:24 pm

Can anyone please help in completely clarifying a homeowner’s option to default on the mortgage? So, jingle mail is not an option in Canada. OK, one down. Now, is it or is itnot possible to walk away from one’s mortgage just like that, and what are the consequences? It seems like a lot of people deep in debt consider this a option in case they can’t keep up with their debt payments, be it a mortgage or a car loan.
Others say this is not possible and you cannot escape that easily.
Garth, this is a topic that got a fair percentage of posts from your followers, maybe you write a post on that? At least, we could have an idea of how screwed some of us are…
Any thoughts? Anyone?

#87 tomohawk on 03.22.13 at 10:24 pm

@11 Smartalox:

We got a rate of 2.55% back in June and we paid more than 20% down. We do business with two banks so we made them compete for our business.

#88 Gladiator on 03.22.13 at 10:25 pm

Sorry for typos. I hate typing on the iPad.

#89 Cowpie on 03.22.13 at 10:30 pm

#52 John on 03.22.13 at 9:27 pm

Well, I’ve been to Edmonton. With respect, they seem as fat as the rest of Canada…

#90 45north on 03.22.13 at 10:31 pm

from yesterday’s post: sales in the Lower Mainland in the last thirty days are 54% less than a year ago

sales declines are accelerating, this is no soft landing

#91 European on 03.22.13 at 10:35 pm

Gen Y is screwed. They only way things will change is if interest rates go up. Its supply and demand, if there is less money to borrow, everyone will spend less money, and things will be cheaper.

When will this happen, who knows. Insetead of going to the banks F should grow some balls and raise interest rates.

#92 kenken on 03.22.13 at 10:40 pm

CMHC has the mandate to promote home ownership
the ratio is already at 70%
I am of the view that the mandate should not move to affordable housing for lower to middle class… so why not limit it to houses under $400,000-$500,000 only.
Anyone who can afford a house more than $500,000 should not need CMHC.
Banks should now take the risk on their own and price it accordingly!!
btw what was in the budget yesterday that the media reported as more control on the housing market?

#93 drydock on 03.22.13 at 10:42 pm

#135 Yesterday.

Of course that’s how they roll in “The Shire”. Think about it, Bilbo then Frodo and Samwise all held the ring and were corrupted by it.Then they all went into the West, well now we know where the magical Isle in the west is,the question we have to ask ourselves is what happened to the Elves?This “The Shire” condo thing is starting to sound fishy, remember how golum liked fish?
Be afwaid, be vewey vewey afwaid.

#94 brainsail on 03.22.13 at 10:45 pm

#8 Old Man on 03.22.13 at 7:55 pm

Thank you for sharing that heart felt story about your dog.

Our dog, also a rescue dog, is a cocker named S’more. He’s a trained therapy dog which my wife does a couple of hours of volunteer work a week for kid’s in an orphanage in Central Texas. They meet in the library and read books together. The corporation that my wife works for allows employees to do a couple hours a week of volunteer work with full pay. S’more will be turning 14 years old soon.

#95 Stinky the Fish on 03.22.13 at 10:45 pm

Garth – you should find somebody in India who charges 25 cents per hour to respond to comments. That would be hilarious to see the difference. Spelling has gotten better, beter get back to drinking. My comments are better when I am buzzed.

#96 Garthfunkel on 03.22.13 at 10:51 pm

#90:

http://www.edmontonjournal.com/business/Flaherty+moves+lessen+taxpayer+exposure+housing+market+budget/8134625/story.html

#97 Stinky the Fish on 03.22.13 at 11:00 pm

Those women drivers are just awful

#98 renters rule on 03.22.13 at 11:12 pm

A close friend of mine used to work in the car credit industry. The rules vary by province, but in BC, when it comes to car loans, the law is “seize or sue”. So, if you cannot afford that fat lease anymore (ahem, realtor alert!), swing by the dealership and drop of the keys. The dealer now has the car, so they cannot sue, unless they can get you to take the car back again. My understanding is that not all provinces work this way.

Mortgages are a different story, I believe (though I do not really know all the details, Garth goes through it some times). The bank can foreclose, but you are still on the hook for any deficiency between what your debt was, and the proceeds from any forced sale….?

#99 CloisterGarth on 03.22.13 at 11:15 pm

I am going to sell off my canadian financial stocks, they have nowhere to go but …. down!

There will be an endless stream of buyers. Ask yourself why. — Garth

#100 Mr. Monday Night on 03.22.13 at 11:16 pm

#68

I wonder what this is going to do as far as difficulty in people with really awful credit to get a house?
———————-
Isn’t that the point, that it should be really difficult for folks with bad credit to get a house in the first place?

#101 blase on 03.22.13 at 11:18 pm

Garth,

As another poster asked earlier in this thread, what will happen when thousands of condos and houses go into negative equity, and if people feel it is in their best interest to walk away? My guess is that people will opt for bankruptcy.

More significantly, if this thing all blows up like in the States, what is it going to mean to the banks, to the government, to Canada? You have explained fully what has gotten us into this mess and what it will do to “home owners”, but you haven’t articulated what will happen to the banks or to the government. Why will we not be Ireland in 2 years?

#102 Tom Vu on 03.22.13 at 11:19 pm

Much trials and tribulations:

(yeah I know …..too many poly-syllabic words for Smoking Old Man)

I have some loose change to spend…not sure which is better bargain…leaning to ” they -are -not- building -anymore -land- ” and Godzilla of “buy- now -or- be- priced- out -forever” Vancouver crack shack or…….?

http://whispersfromtheedgeoftherainforest.blogspot.ca/2013/03/richmond-real-estate-agent-cny-non.html

#103 Sask Girl on 03.22.13 at 11:19 pm

What’s this mortgage payment, pause, reduction thing all about? http://www.tdcanadatrust.com/products-services/banking/mortgages/managing-your-mortgage/flexible-mortgage-features/flexible-mortgage-features.jsp?cm_sp=c000-00-1309

I never knew such options existed. I’m guessing this is one more indication of a housing market potentially going down in flames?

#104 Patiently Waiting on 03.22.13 at 11:27 pm

Randy on 03.22.13 at 7:54 pm
Time to privatize the CHMC….Get the taxpayer off the hook…Force the Banks to buy it….
—————————————————————–
Great idea … too bad the banks will never play ball on this one … no one knows better than they do that a lot of those CMHC loans are future toxic waste …

#105 Van Grrl on 03.22.13 at 11:31 pm

That photo… *love*.

#106 mcmatterson on 03.22.13 at 11:36 pm

Really would like to know where the sub-3% ten year mortgages can be found. If you’re in a market where prices are reasonable, that’s a great deal. 3.69% is the lowest I’ve seen.

Anyone?

#107 live within your means on 03.22.13 at 11:40 pm

#27 FTP – First Time Poster on 03.22.13 at 8:26 pm

http://www.edmontonjournal.com/opinion/editorial-cartoons/Malcolm+Mayes+cartoons/1007472/story.html
…………….

Sad, but true.

#108 Richard and Zeus on 03.22.13 at 11:42 pm

RE is going to crash!!??!! Boomers live in chipboard junk!!?!?!? Everyone except govt workers are going to be broke!?!?!?!

What a conspiracy. Where are your facts? Crap……I need some Tylenol(tm)….

#109 Smoking Man on 03.22.13 at 11:42 pm

The force, universal consolidation think.

Feeling Russia pissed the machine flexing mussels.

Seria, Cyprus the machine saying fk you. You so understanding the rush.

#110 broadway skytrain on 03.22.13 at 11:48 pm

I say if you want a loyal dog better check into this all.
————————
if your dog has 4 legs(or 3) you’ve got all the loyalty in the world.

#111 Ronaldo on 03.22.13 at 11:52 pm

Interesting link re: CMHC insured mortgages.

In March of 08 F. raised the limit from 350 bil to 450 bil then to 600 bil by March of 09.

As at Dec 31/11, CMHC had 567 bil of outstanding insurance on Cdn residential mortgages.(an amount in excess of the entire Cdn federal budget).

How many of those million dollar homes to you think would exist in the lower mainland had he left it where it was.

http://www.torys.com/Publications/Pages/CapitalMarkets2012Mid-YearReport-06.aspx

#112 DocInWaitingRoom on 03.22.13 at 11:59 pm

While trying to rent ive been told be realtors im flushing money down drain renting, prices are going up n up, there are biding wars no cooldown in site and I should buy. I told them tell that to people south of the border. I save over 2600 per month renting downtown in a 1600 sqft home which has a ph patio over 300 sqft. Fits 4 of us swell. The money I save im investing and going on road trip to florida. Previously traveled world with my family while others sat still paying into their “nest”.
Ive been told I have negative assets ie bank fools but this was to pay tuition to become a doc specialist. At least my debt money guarrantees me half mill plus, what will other home owners negative equity/assets bring them in the future? Sure im “Homeless” and a virgin, but no worries for us Akudamitata!

#113 blase on 03.23.13 at 12:00 am

I just found a hidden camera video of Garth dealing with a realtor client of his in Calgary who was seeking financial advice on retirement. I had no idea what you have to deal with in your job Garth. You truly have the patience of Job.

http://www.youtube.com/watch?feature=endscreen&NR=1&v=iacqPzW0ukM

#114 James on 03.23.13 at 12:09 am

#78 Smoking Man

Are going to post your strategy in detail on your website? Or are you just spamming as usual.

#115 Lisa on 03.23.13 at 12:17 am

Could someone please tell me where I can get a 10-year mortgage at a little under three per cent, as Garth says above. I would really appreciate your feedback! Thanks

#116 Fed-up on 03.23.13 at 12:29 am

@#48 CrowdedElevatorfartz

———————————————————————-

Yes realturds are good for a laugh sometimes.

#117 debtors_winners on 03.23.13 at 12:30 am

Political and financial elite is one uniform organism – one part of it will never do any harm to the other. The existing financial model can survive only on stimulation through consumer credit. Remove the consumer credit (influx of borrowers) from the equation and the entire system will collapse. So the rates have the only way and it is to go down. Unless, all of a sudden, there will come a leader, who will be charismatic enough to face the fact that this is the end of a phase in capitalist economic development and will come up with a new economic paradigm – but that scenario better suits to a Hollywood production. It is a tabu in political world to even imagine that this crisis is a systematic one and by that reason can not be described (approximated) with cycle processes. There will not be any cycles anymore! The rates will never go up. They will only be going down until the system halted.. and after that.. here will be a new world… which one.. nobody knows…

#118 Richard and Zeus on 03.23.13 at 12:36 am

@#33 Tim
hmmmmmm
Time to add another layer to the tinfoil hat……
————————————-
Maybe you should wake up from your methane induced stuper and join the rest of the “awake people”……and more and more of them are reading great blogs like this.

By the way……all you…anti-conspiracy theorists? You would have called GARTH’s blog…..a conspiracy 7 years ago. Think about that next time you post…..

#119 observer on 03.23.13 at 12:42 am

Even if the banks takes on 10%, it will make them think twice. It should be 10% including the losses.

Rules should change to allow CMHC to cover up to 300,000
Banks should take 25% of the risk and not 10%.

#120 T5>myT4 on 03.23.13 at 12:49 am

Garth just so you Know, I would pay 99 cents per DAY for this blog.

#121 Freedom First on 03.23.13 at 1:20 am

#70 eddy

Congratulations! I am nominating you for the “Average Canadian Awareness Award 2013″.

Garth, your blog and eddy have triggered my thought for the day. Keep in mind Garth, I consider you and eddy at opposite ends of the awareness spectrum.

The internet is full of websites having people who flog: gold as the asset to be in 100%, silver/100%,cash under the mattress/100%, bonds/100%,GIC’s/100%,RE/100%,equities/100%,etc…..etc.. Now, the common theme among the majority of people across the globe is RE/100% as a surefire “investment”. And Canadians, late to the bone crushing collapse of the global RE fiasco, proved they are no different as deserving the title of being “Brainwashed House Horny Greater Fools” as the citizens of the U.S., Japan, Spain, Italy, Portugal,etc….etc. I believe Nelson Rockefeller once said something akin to: “No one ever went broke underestimating the intelligence of the public”.

Balanced,Re-balanced,Liquid,Diversified and debt free. Age, income, family, whatever. It works. Think.Be creative. If you have your physical and mental health there is no exception. Garth, some day I hope to learn to say things as kindly and tactfully as you do. However, no one has your wit:)

#122 live within your means on 03.23.13 at 1:28 am

#66 Old Man on 03.22.13 at 9:44 pm
I want to talk about dogs that need a home and you women pay attention, as met this young woman a few years ago at 9:00 AM in the morning with the most beautiful dog that I have ever seen in my life about 3 years old, and said can I pet his coat; she told me to freeze, as had to give him a code with a hug first or he will attack, as was looking at me.

Ok, we talked about this all, as she was doing a run in the early morning, as some guy came out of the bushes to attack her, but never saw her dog, and he took care of him bigtime, and called the cops. This dog was the love of her life, and got it for free at a rescue center, as there are several in Ontario, and it was a Greyhound. I say if you want a loyal dog better check into this all.
……………
After we had to put our beloved Echo down ( shepherd/black lab mix – my Xmas gift to hubby), I was so tempted to adopt a Greyhound. I see someone walking a Greyhound daily. If I were younger & in better health I’d adopt one. I love all animals – except rats!!!!.

#123 Burnt Norton on 03.23.13 at 1:38 am

Offensive terminology in comment #41

Agreed. Has been removed. — Garth

#124 Small Town Steve on 03.23.13 at 1:42 am

#31 CanSpeccy on 03.22.13 at 8:34 pm
It seems hardy to have been a responsible action for the government to make public the banks’ liabilility for reckless lending.

Better to prevent the reckless lending by ending fractional reserve banking, something that could be readily achieved with a digital currency.

Commercial banks would still be in the lending business, but only money they themselves borrowed either from depositors or from the central bank. That way, the central bank would have absolute control of the money supply. They could even, if necessary, “push on a string” by offering banks funds at negative interest rates.

http://bitcoin.org/en/

Voila digital currency, will it gain traction? Time will tell..

#125 Dean Mason on 03.23.13 at 2:17 am

To #32 Observer

Gold,sliver,platinum,palladium coins,bars etc. can all be taken like money in your savings. The government will find a way. If you own physical real estate property taxes go up and if you can’t afford to pay to your municipality compound interest grows with your unpaid tax bill and your really in a heap of trouble. Toronto charges 1.25% interest compounded monthly. This is excess overcharging of interest in such a low interest rate environment.This can’t be justified.

This is true especially if a property has no or little mortgage which means little to no risk for the municipality. If mortgage rates are 2.99% to 3.69% 5 to 10 years are secured by property 1st residential mortgages than why is annual interest rates of 15% simple interest to 22.1436% annual compound interest rates for 5 years monthly being charged to Toronto property owners.There are also other fees on top of the interest added during Miller’s government.

All levels of government all find a way if they want to take more of your money. Just think of all the new fees,charges,taxes etc. that Canadians in all provinces pay more since the G.S.T. was introduced on January-1-1991. Look in just Ontario the liberals in power for almost 10 years from Health tax,H.S.T.,Eco fees,New Toronto City Act giving Toronto another land transfer tax and power of many new taxes of about 14 in total available. Hydro increases of 10% minimum a year in Ontario,smart meter fees,Toronto water annual increases of 10% a year and Toronto’s new annual garbage fee.

I even remember the elimination of $100,000 capital gains tax exemption for every Canadian,elimination of deducting annual RRSP administration fee,RRSP transfer fees and the allowance of severance transfer of $2,000 per year of service into your RRSP tax free rollover. Also the new higher RRIF mandatory withrawl rates for RRSP plan holders after end of 1992. The personal amount that a taxpayer can earn tax free was not raised for 7 years as the federal liberals passed legislation not indexing it to C.P.I. that was not at least 3% or higher.They did it with the income thresholds as well. It’s called bracket creep.

Ontario surtax on higher income earners put in by NDP is still there and was increased. In the last Ontario Budget, more fees and higher reduction in prescription benefits for seniors with incomes of $100,000 or higher. Now in Toronto they are talking about the possible reintroduction of $60 per year vehicle registration tax and A 1% Toronto sales tax,extra parking fees,an extra 10 cent per liter Toronto gas tax all suggested by Toronto chamber of Commerce. They mentioned road tolls many times as well.

Nobody is safe but I think that property owners will get hit the hardest over the next 5 years with falling real estate prices,rising property taxes, H.S.T. on utilities,repairs,renovations,gas etc.

#126 Bubu on 03.23.13 at 2:19 am

That picture is what true love looks like.

#127 Julio on 03.23.13 at 2:37 am

Garth, do you experience this too?

http://m.youtube.com/#/watch?v=iacqPzW0ukM&NR=1&feature=endscreen&desktop_uri=/watch?feature=endscreen&NR=1&v=iacqPzW0ukM

#128 Tony on 03.23.13 at 4:38 am

Re: #52 John on 03.22.13 at 9:27 pm

No one will move to Edmonton. It’s too cold and as people retire in southern Ontario they’ll just move north or move to Windsor where it’s much warmer. The people with money when they retire will promptly exit Canada altogether.

#129 Steven Rowlandson on 03.23.13 at 4:39 am

Social programs, subsidies and real estate ought not be on the federal governments agenda or budget in any way.

#130 betamax on 03.23.13 at 4:54 am

#24 Realtor # 1 — enjoy your paycut.

#131 betamax on 03.23.13 at 4:59 am

#66 Old Man:”as she was doing a run in the early morning, as some guy came out of the bushes to attack her, but never saw her dog, and he took care of him bigtime, and called the cops. ”

Wow, the dog even called the cops — that’s one smart canine.

#132 Joe Calgary on 03.23.13 at 5:37 am

Just got home from a party in Calgary, I am a loser because I don’t ‘own’ real estate and have $220000 liquid cash in bank. I actually got yelled at for mentioning reasons for a coming correction, and I think I lost a few friends, they even convinced my gf that she should buy now. I give up.

#133 Buy? Curious? on 03.23.13 at 6:47 am

Hey Garth, here’s a short clip of the state of ‘Merica. What a sithole (misspelled to avoid censorship) it has become. And this is what’s in store for Cana-duh over the next few years.

http://www.youtube.com/watch?v=UgEok6MHwkw

The Suburbs are the new ghettos just like being Rich is the new Gay.

Brad Lamb for Mayor of Windsor. Bring that town to life you bald wizard, you!

#134 Julia on 03.23.13 at 7:09 am

Outside of a dog, a book is man’s best friend. Inside of a dog it’s too dark to read. (stolen quote)

#135 T.O. Bubble Boy on 03.23.13 at 7:22 am

@ #49 Tom Vu on 03.22.13 at 9:21 pm
I have just renamed Toronto ” Cyprus “
————–

Funny, I thought that we were already “Vancouver, the sequel”, as the Vancouverization of Toronto is almost complete.

Maybe Cyprus was already nicknamed “Vancouver” or “Victoria”?

#136 T.O. Bubble Boy on 03.23.13 at 7:25 am

@ #127 Joe Calgary on 03.23.13 at 5:37 am
Just got home from a party in Calgary, I am a loser because I don’t ‘own’ real estate and have $220000 liquid cash in bank. I actually got yelled at for mentioning reasons for a coming correction, and I think I lost a few friends, they even convinced my gf that she should buy now. I give up.
———
Good thing the gf isn’t yet the wife, or else you only have $110,000 in the bank.

#137 Gord Morrow on 03.23.13 at 8:14 am

Garth, I could no agree more. If it were not for CMHC, almost no one would get a cheapo mortgage.If F really wants to take control of mortgage rates, and make the lenders take the risk, get rid of CMHC. It does nothing for the borrower and only help banks transfer risk to the taxpayer. Yes it can not be done over night but it could be phased out over 5 year (the term of most fixed rate mortgages).

#138 Stupesing in Cabbagetown on 03.23.13 at 8:29 am

#110 – Doc “but this was to pay tuition to become a doc specialist”.

Sorry, I do not believe that someone who spells so badly is a doctor, let alone a specialist.

#139 Stupesing in Cabbagetown on 03.23.13 at 8:34 am

#107 – Smoking Man “flexing mussels”

That’s hilarious. Very “Walrus and the Carpenter” (except those were oysters). Can’t you just picture mussels clad in gym shorts lifting barbells?

#140 TurnerNation on 03.23.13 at 8:44 am

Is this a forex & bitcoin blog?

“Ma fancy coloured diamonds are up 218% today.
Billy Bob lifted the offer.”

Need more Billy Bobs.

#141 Stupesing in Cabbagetown on 03.23.13 at 8:44 am

#94 Garthfunkel – I found that Canadian Press story you hyperlinked very disturbing. What it disclosed is that the Canadian taxpayer is on the hook for ALL mortgages, not just CMHC insured ones.

#142 Stickler on 03.23.13 at 8:56 am

“five-year closed home loan for 2.99%, or less & 10 year for under 3%”

>> That tells you where the banks see interest rates going…and that is nowhere.

#143 EIT on 03.23.13 at 9:21 am

“No major bank, no mortgage broker, no credit union would loan money to anyone without a massive downpayment and impeccable credit if it weren’t for CMHC.”

Duh! I still don’t think you can blame horny dumb people for making stupid decisions. It’s to be expected. Fault lies with Gov. for being an irresponsible lender. The saying goes like this: If you owe the bank 100,000$ you’ve got a problem, if you owe the bank 50,000,000$, the banks got a problem. This is why CMHC is F’d.

#144 TurnerNation on 03.23.13 at 9:32 am

SM’s nailed it. Most university courses reward & train Beta males.
You’re taught to wag wag wag then pass. Don’t be a BSD. Follow the framework and pedagogy.
Earn particiption marks. Give your strategy away? Not in real life.

Get into $40,000 debt but never learn to earn. That’ll come later we are told. Get a job then wag wag wag .
Suck up to boss. Pray against layoff, outsource or BK.

Then a 1/2 mill house and GICs seem like safe bets.

#145 seren on 03.23.13 at 9:37 am

Hello Garth,

you wrote “There’s even 10-year mortgage money floating around at a little under three per cent”

Can you tell me who that is?
TIA
Seren

#146 Smoking Man on 03.23.13 at 10:07 am

#112 James on 03.23.13 at 12:09 am
#78 Smoking Man

Are going to post your strategy in detail on your website? Or are you just spamming as usual.
………………………………………………………….

After hangover……………………….burp

#147 Eaglebay - Parksville on 03.23.13 at 10:15 am

#136 Stupesing in Cabbagetown on 03.23.13 at 8:29 am

Have you looked at your hand written prescription lately?

#148 Ralph Cramdown Ⓤ on 03.23.13 at 10:25 am

#96 renters rule — “in BC, when it comes to car loans, the law is “seize or sue”. So, if you cannot afford that fat lease anymore (ahem, realtor alert!), swing by the dealership and drop of the keys. The dealer now has the car, so they cannot sue”

Don’t quit your day job, Mr. armchair lawyer. This tactic might work, but legally, it ain’t so. The option is the creditor’s, not the debtor’s.

#149 Dorothy on 03.23.13 at 10:28 am

All this talk about catching tax cheats is just that – TALK. If the Government REALLY wanted to stop tax evason it would clamp down on the practise of wealthy people setting up numbered companies (many of which are really imaginary companies) as a way of taking advantage of the various tax breaks available to small business.
Over the years I’ve known many business owners who had several such companies in addition to their one legitimate company. It’s all perfectly legal, and is a great way to save on taxes. But its morally WRONG and is not a method of tax reduction available to those of us who can’t afford accountants.
Many of those same business owners have now retired early (pre age 60), sold off their one legitimate business for millions (and trust me, I do mean millions) yet retained the numbered companies to help them save on taxes. One guy I know, regularly sells off one or two of these companies, only to start up another. He’s no longer in a legitimate business venture. He spends half his time here, and the other half in his holiday home in the states. Yet CRA and the Government still lets him get away with claiming he’s running a business and getting the subsequent tax breaks.
This type of thing goes on all the time, and the Government knows about it. So if they’re REALLY concerned about tax evasion, how come they don’t close this particular loophole?

There is no difference between a numbered company and a named company. There are no additional ‘tax breaks’ to small business operators, whose personal income is taxed just like yours. This is an incredibly naive comment. — Garth

#150 Ralph Cramdown Ⓤ on 03.23.13 at 10:30 am

#123 Dean Mason — “Toronto charges 1.25% interest compounded monthly [on unpaid property tax]. This is excess overcharging of interest in such a low interest rate environment.”

Much as this may shock you, the City of Toronto does not consider itself to be in the business of making low interest loans to the landed poor.

#151 Penny Henny on 03.23.13 at 10:32 am

Hey Smoking Man,
I guess congratulations are in order.
Remember what you said about #403 Lake Promenade.
That if it went for under a million you would be all over it like a fat kid on a smartie.
Well I have to say you stole it at $920,000.
http://www.torontomls.net/PublicWeb/CL_CF.asp?link_no=47921318.175000&t=l&fm=F

#152 Vancouver Hipster on 03.23.13 at 10:54 am

Hello Garth,
#143
you wrote “There’s even 10-year mortgage money floating around at a little under three per cent”

Can you tell me who that is?
TIA
Seren
———————————————————
Do your own freaking research!
And what the hell is a TIA?

#153 Al on 03.23.13 at 10:56 am

As long as the Canadian economy is strong, real estate pricesand sale swill remain stable if not higher

#154 Julia on 03.23.13 at 11:00 am

#142 TurnerNation on 03.23.13 at 9:32 am

Or… Some university programs teach and reward critical analysis, but the new hire graduate qickly learns to keep his or her critical analysis opinions out of the work environment. No one wants to hear the potential flaws in their plan. You’ll just be labeled negative and marginalized or fired.

#155 TheBigLebowski on 03.23.13 at 11:32 am

http://www.youtube.com/watch?v=Bx5Sc3vWefE
someone with real courage

Brainwashed child. Yours? — Garth

#156 Dorothy on 03.23.13 at 11:33 am

There is no difference between a numbered company and a named company. There are no additional ‘tax breaks’ to small business operators, whose personal income is taxed just like yours. This is an incredibly naive comment. — Garth
I’m not an accountant, so I don’t know all the ins and outs, but I do know several wealthy people who have set up bogus companies strictly for tax purposes.
One guy I know has a very successful small business which is worth millions, but also has several other “business” which he is always reluctant to talk about and admits are strictly vehicles to help him reduce his tax bill.
Another guy sold his regular business a few years ago in order to retire (at age 57) but still has several “companies” that no-one knows what they do.
Another one I know gets annual funds from a “company” that again, doesn’t appear to actually DO anything (on the surface at least). When I asked about it, he was very vague, but did admit the company had been set up for “tax purposes”.
And the list goes on. This kind of tax evasion is common, and is not available the vast majority who have neither the wealth nor the knowledge to do this sort of thing.

#157 Victor V on 03.23.13 at 11:34 am

http://www.thestar.com/business/real_estate/2013/03/22/rogers_to_step_into_the_real_estate_business.html

Rogers Communications is expanding into the real estate business.

The mobile and cable giant has applied to become a licensed real estate brokerage right across Canada and is aiming to relaunch its five-year-old website Zoocasa.com in May as a unique, one-stop-shopping site for homebuyers.

It’s aimed at going far beyond U.S.-based property listing services such as Zillow and Trulia which have revolutionized house hunting south of the border by providing critical data that can help potential buyers assess the value of a property from the comfort of their home computer…

The move by Rogers is sure to rattle traditional realtors and real estate associations which have been fighting hard — even against Ottawa’s Competition Bureau — to maintain their almost exclusive access to rich Multiple Listing Service data and push back competition, especially given the softening housing market.

Beatty stressed the new site isn’t meant to cut realtors out of the home-buying equation but, instead, ensure that consumers now looking for houses online can go the next step digitally as well, finding a realtor they can check out through the site and feel they can trust to finish the deal.

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

More bad news for realtors…

#158 Tom Vu on 03.23.13 at 11:37 am

#81 Stinky the Fish on 03.22.13 at 10:10 pm

Is this Garth accepting comments or one of your cronies?

Guess. — Garth

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

I think Garth should allow Guest moderators….maybe we should start a list.

I could lend yellow helicopter to pick up winners(losers?)

#159 Smoking Man on 03.23.13 at 11:39 am

#149 Penny Henny on 03.23.13 at 10:32 am
Hey Smoking Man,
I guess congratulations are in order.
Remember what you said about #403 Lake Promenade.
That if it went for under a million you would be all over it like a fat kid on a smartie.
Well I have to say you stole it at $920,000.
http://www.torontomls.net/PublicWeb/CL_CF.asp?link_no=47921318.175000&t=l&fm=F
……………………………………………………….

Damn I dident even bother putting in an offer……

Missed the boat on that one……Damn

Perhaps things are softening up.

Be in on the next one…Damn whoever bought it won the watch. The owners are idiots….

#160 NorthOf49 on 03.23.13 at 11:42 am

Neighbour with a 0/40 mortgage listed their house secretly (no lawn sign) with an agent this week. They called me last week and asked if we were going to move anytime soon because they would be happy to take over the lease. Apparently “we have it made” by renting. They are great people, but boy how times have changed.

#161 LP on 03.23.13 at 11:49 am

#152Julia on 03.23.13 at 11:00 am

No one wants to hear the potential flaws in their plan. You’ll just be labeled negative and marginalized or fired.
********************************
Years ago, while serving on a hospital foundation board, I took part in a Carver Board Member training seminar. The facilitator made the point that if there was a naysayer on the board, the executive should get down on their knees and thank Heaven for the negative view, and absent such a member, take steps to seek out and nominate a person like that. It’s important to hear ALL sides so that the best course of action is identified and potential problems avoided.

#162 LP on 03.23.13 at 11:50 am

#150Vancouver Hipster on 03.23.13 at 10:54 am

TIA = thanks in advance

#163 INTERESTING TIMES on 03.23.13 at 11:52 am

TOO LATE!!!!

The 50% RE Crash has arrived for the 70% of the HGTV house porn virgins that bought into the CON government CHMC RE Ponzi Scam.

Many Virgins will get destroyed financially because of this.

The facts are all around us bloggers, just read the news and protect yourself.

* 70% of Canadians have No Pensions and live pay cheque to pay cheque.

*Canadians are champions of DEBT – 165% in debt. We take the Gold Medal for the the most in debt in the world. Many will be going bankrupt.

* FREE MONEY from CHMC with zero down, 5% down loans offered by local bankster. Banker has no skin in the game YOU the taxpayer do. CHMC already hitting $600 Billion Wall in HOUSE PORN Mortgages. We are Screwed. Guess which government implemented this in action plan??? Our CHMC HIGH RISK debt of $600 billion + Canada’s Total $600 Billion Regular Debt = Over a Trillion Dollars that the Canadian Taxpayer is on the hook?

* Dropping monthly RE sales in DOUBLE DIGITS, 8 months in a row. SOON 50% off prices coming.

* Europe in Big Trouble, Countries going bankrupt and banksters confiscating SAVERS money i.e. Cyprus latest victim.

* Canada losing jobs every day. Can’t Compete against the USA or Asia anymore. In fact jobs globally are still being lost everyday. With Out jobs there is no recovery, sorry to inform you.

* Empty Homes and Condo’s all over the MLS. Power of Sales & people losing homes has started. 50% off RE COMING SOON!!! CHMC & banksters have instructed Realtards to hide this fact from you the TAXPAYER / BUYER.

* More Gov’t Austerity will be coming soon to Canada. More Job Losses.

Get out there HGTV Virgins and start LOW BALLING theses realtards by 50% on RE. Don’t waste your time going to open houses etc. Just sit at your home and low ball these agents. Only pick-up the phone when the realtard is willing to deal. Remember a Home is only worth what a buyer will pay. You have the power now.

In 2008 the 50% crash was on the way until the gov’t dropped mortgage rates from 6% down to 2% which caused the RE Ponzi Scam to Balloon BIGGER. And yes your BIG Strong CDN Banks were bailed out in the tune of $150 Billion by the CHMC. Now your inaction plan government have played all there CARDS and the TRUE 50% RE Crash has arrived. NO MORE FREE money to bail out of what is left of the Middle Class Canada. Welcome to REALITY!!!

Read and learn on what is happening virgins and protect yourself.

http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/ottawa-to-limit-taxpayers-exposure-to-mortgage-market/article10083234/

http://business.financialpost.com/2013/03/20/canadian-home-prices-drop-for-sixth-month-straight/?__lsa=9eb5-1c66

http://www.theglobeandmail.com/report-on-business/international-business/european-business/cyprus-mulls-25-per-cent-levy-on-big-bank-deposits/article10256691/

http://www.theglobeandmail.com/report-on-business/international-business/european-business/fitch-poised-to-cut-uks-triple-a-rating/article10187484/

http://www.theglobeandmail.com/report-on-business/international-business/us-business/feds-raskin-says-us-economy-too-reliant-on-low-wage-jobs/article10194207/

http://business.financialpost.com/2013/03/22/cyprus-approves-capital-control-laws-to-clinch-bailout/

http://business.financialpost.com/2013/03/14/canadas-economic-ranking-improves-but-only-because-of-crises-in-other-countries/?__lsa=cceb-dd18

http://business.financialpost.com/2013/03/22/stockton-california-faces-uphill-battle-to-emerge-from-biggest-city-bankruptcy-in-u-s-history/

http://www.thestar.com/news/gta/2013/03/22/lottery_prize_houses_sell_for_less_than_advertised.html

http://www.thestar.com/business/real_estate/2013/03/15/residential_realestate_market_continues_to_cool_down.html

http://www.thestar.com/business/economy/2013/03/20/nearly_6_jobless_canadians_for_every_vacancy_report_shows.html

#164 Saskatoon-Living on 03.23.13 at 12:09 pm

HAM is alive and well in SK:

http://www.thestarphoenix.com/business/Chinese+buyers+enticed+Saskatoon+real+estate/8142124/story.html

The economist in the article believes the lack of mountains here in SK will save our RE. Too funny!

#165 seren on 03.23.13 at 12:10 pm

#150
Vancouver Hipster ….
LOL. I see the children are here today having baby attacks… Not sure why people like that are allowed to even post.

Its a legit questions that I could not find myself on websites.

#166 Ronaldo on 03.23.13 at 12:24 pm

#68 Waterloo Resident -

”I wonder what this is going to do as far as difficulty in people with really awful credit to get a house?”

That’s the whole point of the matter. To stop the greedy banks from lending money to people with no money from buying into a bubble market and later have them walk away from their purchase and driving down prices for the rest of the people who bought houses with skin in the game.

But am sure that whatever the gov’t does to stop the insanity, the banks will find a clever way around it. That’s what they’ve been doing all along since the GFC.

As the NM@TCU said to me back in 2010 when I asked what will you guys do if the gov’t raises the interest rates. He replied, ”we will simply go back to “prime minus” rates. He said ”as long as we get our spread, that’s all that matters”.

#167 Herb on 03.23.13 at 12:27 pm

#152 Julia and #155 LP,

nearly 2,500 years ago Confucius was asked how to serve a prince. His answer: “Don’t deceive him! Resist him rather.” (Sayings, XIV, 22; Ware translation.)

#168 T.C. on 03.23.13 at 12:31 pm

So what you are saying is F should stop subsidizing housing. Along with the provinces.

I would be happy to have the banks actually pay for the money they loan through mortgages. They would likely offer a decent rate of return instead of a crappy sub %.

Sounds like we need a further Cypriot haircut on CMHC insured values. I think $250,000 is a better estimate (although zero $ is what the market should be, Mr. Bernier). Then we would see the true market levels for real estate in this country.

#169 Buy? Curious? on 03.23.13 at 12:56 pm

Garth, you’re like the financial equivalent to the Ultimate Warrior from the WWE!

http://www.youtube.com/watch?v=5R2gzWnPu0s

What song do you have as your ring tone?

#170 JO on 03.23.13 at 1:26 pm

If you don’t pay your mortgage, property will be served notice and POS process will begin.

If you do not pay, eventually property is sold by bank and the difference between the sale price and mortgage owing (including huge legal costs and fees, etc added on) will be yours to pay..banks will come after you coast to coast via a lawsuit until you pay back every penny…unless you claim bankruptcy and from what i understand, about 5-6 yrs ago, bankruptcy laws were changed in a major way and have become less friendly to the debt slaves…

You took on that debt, you need to pay it back. Going into a personal debt with the intent to walk away is a fraud. Notwithstanding that most of these first time buyers are gamblers bidding up RE on heavily subsidized debt (without CMHC/NHA, they would never be able to borrow such large amounts and therefore mortgages and home prices would be a lot lower..but your gov’t tax revenues would also be a lot lower and the top layer of financial/banking execs would not make anywhere near the same amount of money as they do thanks to gov’t interference), debtors are still liable to pay it back because they consented freely to enter into the debt…they really only own the debt and not the asset…

As for public debt, that is a scam. Most of the population does not get direct benefit of the borrowing but most end up paying massive taxes and fees to help the gov’t keep the banks and other creditors happy…sovereign debt is different and deserves to be written down with bondholders and shareholders taking the hit. And public debt is taken on by gov’ts who are subject to corruption and paid for politicians who only want to get reelected..

#171 Buy? Curious? on 03.23.13 at 1:40 pm

Sometimes I wish there was more honesty, transparency, with how these banks, mortgage brokerages, real estate agencies, work. I mean, how come industries such as the fashion industry are more than happy to share their beauty secrets?

Sometimes I wish Brad Lamb was more open about his plans for Return On Investments in his marketing material and profantity ladden power speeches about condos as Trya Banks is on her secret to feeling fresh.

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

#172 happy renter on 03.23.13 at 1:42 pm

You can’t make low ball offers in Edmonton or Calgary.Prices in these two cities will rise just like Toronto and Vancouver.Asian buyers may come in to allocate billions of dollars also.
Passive investing is the way to go.Index funds,etfs emerging markets and also mlp.Financial fund managers charge 1% or 2% fees and over the years it all adds up including all their hidden fees.

#173 willworkforpickles on 03.23.13 at 1:59 pm

….and so it goes with re prices nosediving across southern Ontario…

#174 Van guy on 03.23.13 at 2:01 pm

Can’t hide Richmond too much longer, many are catching on. And the building is continuing stronger than I’ve ever seen before.

http://richmondbcrealestates.com/?p=883

#175 Shawn Allen on 03.23.13 at 2:08 pm

THE LOWEST MORTGAGE RATES IN HISTORY?

Garth said: There’s even 10-year mortgage money floating around at a little under three per cent – for the first time in two generations.

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

Some of the readers here may have personal knowledge of mortgage rates in the 1950′s and 60′s or earlier.

I suspect 10 years at anything close to 3% would be the lowest in Canadian history.

I am told that back in the 50′s chartered banks did not even make mortgage loans. I believe it was trust companies and insurance companies that offered mortgages. I doubt that the rates were much under 5% or so. Does anyone out there know?

#176 Shawn Allen on 03.23.13 at 2:17 pm

LOCK IN A TEN YEAR RATE?

10-year mortgage rates have come down DRAMATICALLY in the past year. Garth is saying you may get as low as 3%. Only a year ago the posted rate for ten years was closer to 8%.

Something has changed and banks TODAY are willing to offer good deals on ten years.

Canadians with big mortgages should definitely consider locking in at those rates. They could look sweet indeed in a couple of years.

There may even be a case to be made to borrow against home equity at 3 to 4% and invest in equities. It is dangerous and stressful however. And it it’s hardly worthwhile unless you go big with $200k or more. Warren Buffett became a billionaire by accessing cheap money (insurance float in his case) and investing (very) wisely in stocks. Now we can all do it but it is risky. And Buffett always warned against borrowing to invest.

Cheap financing like this is truly an opportunity of a lifetime. If you are in debt consider locking in the cheap rates. If you have large house equity and a VERY (very) stable job consider borrowing to invest. The world is your oyster. The rich will get richer. Complain or get on board, the choice is yours.

#177 roial1 on 03.23.13 at 2:26 pm

123Dean Mason on 03.23.13 at 2:17 am

Ontario surtax on higher income earners put in by NDP is still there and was increased. In the last Ontario Budget, more fees and higher reduction in prescription benefits for seniors with incomes of $100,000 or higher. Now in Toronto they are talking about the possible reintroduction of $60 per year vehicle registration tax and A 1% Toronto sales tax,extra parking fees,an extra 10 cent per liter Toronto gas tax all suggested by Toronto chamber of Commerce. They mentioned road tolls many times as well.

Think this is bad???

Check out the cost of entering London E. with a vehicle.

Starts at 10pounds per day, and goes up to well, skies the limit. Ask Obama, they fined HIM 160 pounds.

#178 Dr. Hoof - Hearted on 03.23.13 at 2:36 pm

Driving around HAMville…

See more vacant lots For Sale….a few SOLDS(older units)……but overall quite quiet

#179 Dorothy on 03.23.13 at 2:51 pm

#160 – what a load of fearmongering rubbish!

Yes, these are definitely worrying times economically speaking. But nowhere near as bad as you’re making it out to be. Speaking for myself, my immediate family, and most of my friends, things are not even close to being as bad as your post makes it sound.

House prices have definitely softened, but have NOT crashed (at least not in my hood). Unemployment is higher than it ought to be, but there are still plenty of folk with jobs. And not EVERYONE is swimming in debt and/or living paycheque to paycheque. My hubby has been laid off twice in the last 3 years, and still managed to find another job. Despite that, we have no debt and are definitely not living pay cheque to pay cheque.

Its all a matter of priorities when it comes to money. What do you define as needs, and what do you define as wants. Those who make those distinctions and choose accordingly will usually be OK, no matter HOW bad things get, because they’ll always have a little something to tide them over the rough patches. At least, that’s the way it worked out for us.

#180 jess on 03.23.13 at 2:56 pm

skills mismatch ?
Rank Country Unemployment, youth ages 15-24 (%
http://www.indexmundi.com/g/r.aspx?v=2229

#181 Dr. Cornwallis on 03.23.13 at 3:11 pm

Great, now the HAMcopters are hovering over Saskatoon.

http://www.thestarphoenix.com/business/Chinese+buyers+enticed+Saskatoon+real+estate/8142124/story.html

#182 Country Girl on 03.23.13 at 3:17 pm

#99 blase on 03.22.13 at 11:18 pm
“My guess is that people will opt for bankruptcy.”

I agree. Bankruptcy or hiding.

#183 Canadian Watchdog on 03.23.13 at 3:18 pm

#154 Victor V

Rogers Communications is expanding into the real estate business.

Don't be fooled. Without a tribunal overruling Realtors® to allow full data access for VOWs, nothing 'new' will be developed. This is just another marketing scheme by Rogers.

#184 Shawn Allen on 03.23.13 at 3:36 pm

I OWN, I OWN, SO OFF TO WEALTH I GO

A key to wealth is ownership. Especially ownership of profitable businesses. The stock market makes it easy.

Buy and hold shares in high quality profitable companies and you will grow wealthy over time.

The choice is yours to make. But do choose wisely.

#185 Blacksheep on 03.23.13 at 4:06 pm

TheBigLebowski 153,

“Brainwashed child. — Garth”
———————————–
OK. Lets assume she’s merely a conduit used to
spread little known sordid details. Her ability to enunciate publicly, at such an innocent age,
catches the attention of the general public,
as planed.

Some argued the content is not 100% accurate.

There is more than enough truth in her speech
to make this video mandatory viewing.

One should take the time to listen carefully,
research details and decide for them selves.

Garth has shown multiple examples of deceptive practices, down to outright lying in the MSM, RE industry and government. Are we so naive as to believe this corruption is singular in occurrence?

What say you?

take care
Blacksheep

An inaccurate, misleading, alarmist, naive, simplistic piece of propaganda. No wonder 12-yar-olds and doomers love it. — Garth

#186 blobby on 03.23.13 at 4:52 pm

Out of interest – is it possible (and if so – is it likely) that the government could drop the CHMC altogether?

Not a chance. — Garth

#187 blok existentialist on 03.23.13 at 4:53 pm

#166 lock in at 10 year rate?
This is something I have myself been mulling over the past few days. The key might be amortization.
For example, I have a three-bedroom bungalow that I could sell without trouble (small and inexpensive single-family homes are desirable and in short supply in this rural B.C. locale).
I could then purchase a two-bedroom house with more square footage and OSBE basement which could easily be converted into a private rental suite.
This house has been hands-off to local buyers because they think the basement floods and it has a ‘party-house’ reputation. (I know the previous owner and the basement only flooded because the absentee owner forgot to leave the sump pump on. Clay subsoil here and everyone with a basement has a sump pump.)
It’s also not pretty enough (unkempt) to appeal to incoming retiring boomers.
The Alberta owner wants shut of this place. I think he only bought it because he wanted a place to park his sleds (and party). He’s already dropped the price a couple of times and I think I could pick it up for $100,000 or less.
As well, I’d be gaining the option of woodstove heat and a huge garage which I could rent out to sledders or anyone who needed a place to stash their vehicles. (This place is a winter playground for Albertans.)
I’d be able to put at least half of the cost down, so I’d easily manage a 10-year amortization.
I remember being envious back in the double-digit ’80s of old guys who were still paying off their 5- or 6-per-cent mortgages, which cost them all of $300 or so per month. So maybe. I may never need to have a rental suite or rental garage, but who knows what the future holds.
It does need some work, but it’s largely jerk-ass finishing work which isn’t too pricey. The biggest cost would be installing plumbing for a rental suite in the basement. Nothing wrong with the basic house structure, however. It also has a new metal roof (love anything structural that’s going to outlive me). Real estate agents here traditionally lie about the age/condition of houses, so I’ll sit down with the former longtime owner and find out everything I can about this place. One of the advantages of living in a small town.
My mortgage payments would be around $600 a month (which is the current rent here for a small house/two-bedroom apartment if you can find one; they’re in short supply — I wouldn’t think of owning a house, even here in the boonies, if renting was an option).
So it looks like a win-win idea for me. But what about you? I assume you’re in the city. If you’re buying a place that has the potential to be worth half of what you paid for it 10 years hence and you can’t manage a 10-year amortization …. are you really gaining anything?
You’ll have to do the math yourself, though. I suck at math. Factor in the continually escalating cost-of-living as per the less-publicized parts of the recent budget. You might want to stick with renting a while longer.

#188 Old Man on 03.23.13 at 4:59 pm

#184 Blacksheep – Rogers always sends my 6 month billing too late to pay which is over $800.00, and no time for the mail, so have no option but to run to a store outlet paying a few days late or more with an interest penalty. This never happened before except in the past two years, so smell a rat.

#189 Old Man on 03.23.13 at 5:02 pm

Imao mean’t #182 Canadian Watchdog, as what Blacksheep said upset me, so mixed up the names.

#190 brainsail on 03.23.13 at 5:13 pm

#175 Shawn Allen on 03.23.13 at 2:17 pm

“Some of the readers here may have personal knowledge of mortgage rates in the 1950′s and 60′s or earlier.”

I’m having a very hard time explaining to my 90 some year old mother that it might be time to sell her bung that she bought in Edmonton for $28K in 1958. Her health is failing.

I do not know what the interest rate they paid back then. All I know is that there was a 20 or 25% down payment and the interest rate was fixed for the 25 year term. I tried to explain to her what the current state of affairs are for housing in Canada and she did not know that for many years mortgage holders have to reset their mortgages every five years or what ever. Things were a lot different then. My father was a pharmaceutical representative and my mother was a high school teacher. Both high paying jobs today, but they struggled financially then.

I saw a chart several years ago that showed that the mortgage rate for the last 30 or 50 years in Canada averaged about 8.6%.

She wants to leave the house to my brother that lives on the other side of the world. I explained the capital gains tax that he will have to pay and the investment that he will have to make in order to sell the house. It hasn’t seen any upgrades since 1958 and still has the original furnace and hot water tank. The electrical has never been upgraded and the roof is currently leaking.

She did not believe anything that I told her. She believes that her house will only increase in value and will never ever go down!

The house was recently appraised by the city at $468K. Shortly after, a young bean sprout of a real estate agent showed up at her door and told her that he could easily get $600K or more for her house.

That’s all I know about the 1950′s and 60′s!

#191 Old Man on 03.23.13 at 5:34 pm

#191 brainsail – the mortgage rates in Canada during the 1950′s were in the range of about 5%. Also, her Last Will and Testament needs to be reviewed, and did she appoint a Power of Attorney, as she is too old to be making rational decisions in life. #175 Shawn Allen as well, as see this is a combo.

#192 Ronaldo on 03.23.13 at 5:40 pm

#191 Brainsail – parents bought home in 1961. I recall they were paying 6% mortgage rate. House cost $6000. They put $800 down and payment was around $60.00/mo. Most of it went to principal.

They got in at the low point as the economy was coming out of recession and shortly thereafter started to rise incredibly and inflation along with it.

They sold it in 1966 for triple what they paid, purchased a building lot for $1800 and purchased a home package from a building supply company for $5200 complete and my father being a carpenter, built it himself and I assisted and by doing so learned a lot about building which proved to be very valuable in the years going forward.

I remember when I bought my first home in 1969 when interest rates were near 11% thinking that it would be nice if interest rates were 6% like they had been when my parents bought. We used to say, “we’ll never see those rates again.” Now I laugh about it.

#193 Ralph Cramdown Ⓤ on 03.23.13 at 5:41 pm

Mortgage rates since 1951. Note the footnotes.

http://www.bankofcanada.ca/wp-content/uploads/2010/09/selected_historical_page57_58.pdf

#194 Ronaldo on 03.23.13 at 5:46 pm

Chart on mortgage rates in Canada 1951 to 1985

http://www.bankofcanada.ca/wp-content/uploads/2010/09/selected_historical_page57_58.pdf

#195 Old Man on 03.23.13 at 5:58 pm

The average home in Ontario in the early 1950′s could be had for about $8,500, and by 1961 the wealthiest city in Canada on a per capita basis nice homes were selling for about $17,000. I know as lived through this all, as do not have to research the stats.

#196 T.J. BONES on 03.23.13 at 6:20 pm

Sir Garth: I am having a problem with this CHMC thing! lets say i get a mortgage, and I default. The bank gets the house, and CHMC gives the bank the 95% of the mortgage amount. So I only loose the 5% not the entire amount of the house! So does the bank sell the house and give back the 95% insurance amount? OR does the bank keep the insurance money and sell the house also, hereby doubling or tripling their investment. This would explain why banks are giving money away, they triple their return. This is organised crime. Why is the CHMC not being repaid at the time of sale? How big is the shadow inventory?

#197 Tom Vu on 03.23.13 at 6:35 pm

I think everybody that owns a home should have a Real Estate license and be forced to sell every year.

This will keep the economy going.

#198 Tom Vu on 03.23.13 at 6:37 pm

#196 Old Man on 03.23.13 at 5:58 pm

The average home in Ontario in the early 1950′s could be had for about $8,500, and by 1961 the wealthiest city in Canada on a per capita basis nice homes were selling for about $17,000. I know as lived through this all, as do not have to research the stats.

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

Smoking Old Man.

Your wisdom and fictional anecdotes are much depreciated !

What were Caves selling for when you were young ?

#199 T.J. BONES on 03.23.13 at 6:39 pm

Sir Garth : further to: The bank gets the house plus the insurance money of CHMC and then the bank sues me for the amount of the morgage. Thats triple ROI. Sounds like recapilizing the banks at CHMC and the peoples expence. Where is this money going ?

#200 brainsail on 03.23.13 at 6:45 pm

#196 Old Man on 03.23.13 at 5:58 pm

#193 Ronaldo on 03.23.13 at 5:40 pm

I was probably wrong quoting $28K, maybe it was only $18K or less. It was a long time ago. Sorry.

#201 mark on 03.23.13 at 6:58 pm

I see Global BC has now stumbled onto the fact there’s also bunch of empty houses and very quiet streets in Vancouver.

Might be time to start distributing location maps to Vancouver’s homeless

#202 brainsail on 03.23.13 at 7:06 pm

#192 Old Man on 03.23.13 at 5:34 pm

“Also, her Last Will and Testament needs to be reviewed, and did she appoint a Power of Attorney, as she is too old to be making rational decisions in life.”

You hit that correctly. Yes, my brother because I have no credibility in my family. I have spent many, many hours researching wills and estates for her with zero results. I have no idea what I did wrong. Maybe because I moved to US after the NEP thing in 1982 for a real job instead of working part time in a stereo store and night watchman at a construction site. Maybe because I married a Canadian whose mother was born in the US and that resulted in almost instant citizenship. It’s just stupid family stuff and I will never know.

She is still attentive and trades APPL, BBRY and BIDU on a regular basis and makes some profit.

#203 hoser on 03.23.13 at 7:09 pm

Correct me if I am wrong, but many people do not wish to pay tax in Canada declare non-resident status. If they live in another country more than half the time and do business there, they cannot be subject to double-taxation. Countries like China and Hong Kong have a much lower tax rate. But, most of the time they own real estate in Canada, mainly principle residence which is exempt from capital gains if you are a resident of Canada. If the main breadwinner declares non-resident and simply purchase the property in their wife or children’s names, they are exempt from Canadian taxes and still enjoy all the economic, and social benefits of association with Canada. The tax evasion snitch line will be very effective if indeed Ottawa could do something about this.

#204 Old Man on 03.23.13 at 7:11 pm

#194 and #195 this looks about right going forward with the cost of money, but there is one thing that you might not know, as in the early 1950′s going into the early 1960′s the banks as we know them today were not in the mortgage business at all. It was the major Insurance Companies who provided mortgage funding, and not the banks.

#205 Brunette on 03.23.13 at 7:36 pm

#32 Old Man:

I think that dogs don’t know of any bad day. Every day is a new day to them and they have that unconditional love for their owner if they are in debt, homeless or a millionaire. Dogs love their owner unconditionally.

I love my dog.

#206 Brunette on 03.23.13 at 7:43 pm

Do most other countries have their own “CHMC” to protect the banks in some way (sounds not or all these countries wouldn’t be going bankrupt). Or did they?

Why did the CMHC get out of control? Or has it?

From Wikipedia, the free encyclopedia

Canada Mortgage and Housing Corporation (CMHC) is a Crown corporation, of the Government of Canada, founded after World War II to provide housing for returning soldiers. After the war, a serious housing shortage and the return of large numbers of veterans led the government to create the CMHC to promote the development of new housing by offering very low cost mortgages with small down payments and easy terms.[1] It later built and/or funded urban renewal projects in Canada’s cities.

One of the main functions of the CMHC is to manage the federal Mortgage Insurance Fund (MIF), which was introduced in 1954 to provide protection to banks reluctant to enter the mortgage lending market.[2] From Today its main function is managing providing insurance for residential mortgage loans to Canadian home buyers. This insurance protects mortgage lenders against mortgage defaults on mortgages for which insurance has been purchased (mandatory on loans with less than 20% down although lenders may require it on loans with more than 20% equity if they perceive additional risk of default). Besides mortgage insurance, the agency provides financing to housing projects and renovations, does housing market analysis and funds research into housing design and technologies along with the National Research Council. The mandate of the CMHC, as Canada’s national housing agency, includes facilitating accessibility to a “wide choice of quality, environmentally sustainable, affordable housing solutions.”[3]

#207 Daisy Mae on 03.23.13 at 8:10 pm

#132 Joe Calgary: “I actually got yelled at for mentioning reasons for a coming correction, and I think I lost a few friends, they even convinced my gf that she should buy now. I give up.”

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

Everyone is getting edgy. They know the truth. They just don’t want to hear it ’cause it’s too painful.

Garth has been correct these last few years. It took Canadians soooo long to realize…and now they do.

#208 Carpicker on 03.23.13 at 8:38 pm

A Ministry of Foreign Affairs (MFA) “urgent bulletin” being sent to Embassies around the world today is advising both Russian citizens and companies to begin divesting their assets from Western banking and financial institutions “immediately” as Kremlin fears grow that both the European Union and United States are preparing for the largest theft of private wealth in modern history.

http://www.cantondailyledger.com/article/20130322/NEWS/130329631/1001/NEWS

Unbelievable. — Garth

#209 Supreme Commander on 03.23.13 at 8:51 pm

Whats the big deal with manulife’s advertising of 2.89% mortgage rate, you can get 2.79% 5 year with the any of the big five all day long and 2.69% if you are a good negotiator. Smart move on manulife’s part to get all this attention, F just brought them more business, no charge.

#210 Angry But Not Unhappy Twenty Something on 03.23.13 at 8:54 pm

Much like a well diversified portfolio, a well diversified reading digest helps you to form your own opinions on things – from cars, to dogs, to finances.

Greaterfool.ca is a part of my reading list – thanks for your continued efforts Mr. Turner.

#211 Smoking Man on 03.23.13 at 8:54 pm

#206 Brunette on 03.23.13 at 7:36 pm#32

Old Man:I think that dogs don’t know of any bad day. Every day is a new day to them and they have that unconditional love for their owner if they are in debt, homeless or a millionaire. Dogs love their owner unconditionally.

I love my dog.

…………..

I never have a bad day either, guess that makes me a doggie, my favorite.

Party at Seneca, any dogs in the area, come on down, I’ll get you in the chairman club, or as I call it losser lounge…..

My membership paid in full…..

#212 Smoking Man on 03.23.13 at 9:07 pm

#199 Tom Vu on 03.23.13 at 6:37 pm

Why do you so desperately want me to engage in meaningless banter with you, chirping for weeks.

Why don’t you contribute some insight, make up a story. Ah you can’t, lack creativity and imagination, too many year in school..

There you go the great smoking man has finally acknowledge you, elevating your status here.

Your welcome

#213 Gunboat Denier on 03.23.13 at 9:09 pm

Dorothy 149/156 – probably your two worst comments
ever. If it’s legal, it’s tax avoidance, not evasion and is
available to all should they choose to be entrprenurial
and start a small business. Why dont you try it yourself?

#214 Blacksheep on 03.23.13 at 9:41 pm

“An inaccurate, misleading, alarmist, naive, simplistic piece of propaganda. No wonder 12-yar-olds and doomers love it. — Garth”
——————————————-
Thanks for your opinoin Garth.

#215 brainsail on 03.23.13 at 9:52 pm

#204 hoser on 03.23.13 at 7:09 pm

“Correct me if I am wrong, but many people do not wish to pay tax in Canada declare non-resident status. If they live in another country more than half the time and do business there, they cannot be subject to double-taxation.”

I am not a tax expert by any means but when I read Revenue Canada’s rules about who needs to files taxes there are many ways that a non-resident could cross the line.

“Non-residents

You are a non-resident for tax purposes if you:
•normally, customarily, or routinely live in another country and are not considered a resident of Canada; or
•do not have significant residential ties in Canada; and ◦you live outside Canada throughout the tax year; or
◦you stay in Canada for less than 183 days in the tax year.”

The following is key…

“What are residential ties?

Residential ties include:
•a home in Canada;
•a spouse or common-law partner or dependants who stayed in Canada;
•personal property in Canada, such as a car or furniture; and
•social ties in Canada.

Other ties that may be relevant include:
•a Canadian driver’s licence;
•Canadian bank accounts or credit cards; and
•health insurance with a Canadian province or territory.”

#216 brainsail on 03.23.13 at 9:53 pm

Forgot the link…

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html

#217 Herb on 03.23.13 at 10:00 pm

#204 Hoser,

it’s not that easy to be a non-resident for tax purposes. See this link for general guidance: http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

And do click on the link there to IT-221 Determination of an Indidual’s Residence Status to get the gory details.

#218 Chickenlittle on 03.23.13 at 10:33 pm

#4 Mark W:

I loved your articles! My favorite line?

“We’re beautiful people living in a beautiful city. We have impeccable taste and high standards. So sue us,”

“Havercroft points out nobody moves to Vancouver for the rain, it’s for what’s associated with it; proximity to ocean, mild climate, year-round greenery, and lush dense ancient rainforests.”

You could always move to California and get a mansion for the same price as a crack shack in Vancouver.

Having quoted and said all of that, I am tired of people referring to Canadian cities as “world class”. I realize that it is usually just Canadians who give us the “world class” label, but it still bugs me. Why?

I have been to 8 different countries, all in Europe, We do not have the architecture, history, or culture that Europe has. Spending obscene amounts of money is not culture. It is consumerism. There is a big difference.

It is fun, beautiful, safe, and down-to-earth in most places, but there is such little history behing us. We lack a national identity. What are we? I have this conversaton with my Russian immigrant friend all the time.

I would like to go back in time to the 1950′s and 60′s when Canada was interesting, and life was linear. People at least were not poseurs like they are now. No one acted like drinking craft beer, having a beard, and wearing a plaid shirt made you better than someone else. How ironic.

Now all we are is a bunch of serfs working for things we can’t afford. How many times have people done things they do not either believe in or want to because they are afraid to lose their job? Why are we constantly being threatened and yet we do nothing about it? Why not call their bluff and quit? i have done that twice and I felt great afterwards! I always found something better.

Having said that, I have a hard time understanding why some people find the RE prices here in Canada justifiable. Canada is great, but not $1,000,000 for an ugly bungalow great.

It isn’t just Vancouverites that have had too much Kool Aid.

#219 Shawn Allen on 03.23.13 at 10:42 pm

The Wisdom of 12-year old girls on banks

To blacksheep who takes the word of a 12 year old girl that private banks are evil.

God help you.

Oh those evil private banks; lending to our government at 2% per year for ten years. How evil! Hardly usurious though, is it? Two percent! The lowest interest rates in all of history and yet still some people whine.

Most people simply cannot help themselves. They’d rather whine.

#220 brainsail on 03.23.13 at 10:54 pm

#218 Herb on 03.23.13 at 10:00 pm

We are on the same page. I noticed that those rules have been in place since 2002. How in the heck have some of the HAM people appear to have been getting away with this all these years?

#221 AisA on 03.23.13 at 11:01 pm

#210 Supreme Commander on 03.23.13 at 8:51 pm

“Whats the big deal with manulife’s advertising of 2.89% mortgage rate, you can get 2.79% 5 year with the any of the big five all day long and 2.69% if you are a good negotiator. ”

Because advertising is the siren song that calls the muppets to their doom. Yeah you can find the rates if you go looking, who goes looking usually knows what they seek. Who is attracted to the flame like a moth usually meets a smokey end. That’s my interpretation anyway, dunno if it was helpful.

#222 hoser on 03.23.13 at 11:02 pm

This is an interesting story I read from Vancouver condo board:
“C.Junta Says:
March 23rd, 2013 at 3:40 pm
A few months ago, I had an opportunity to meet a taxman in person – a CRA guy came to perform an audit. The actual audit took about 15 minutes, the rest of the meeting (more than an hour) three of us (the CRA guy, my accountant and yours truly) had a nice chat over a cup of tea (the taxman said a lunch would be considered a bribery, and tea with cookies was fine). In the very end he asked if I had any questions. I dared to ask him about those astronauts’ families and what CRA was going to do with them. He nodded a lot when I mentioned poverty levels in West Van and Richmond, and his answer were basically as follows.

“Yes, we are well aware of the issue. Unfortunately, there is not much we can do about it. Sometimes we catch them, but since the fathers do not live in Canada they don’t really break any laws.”

I think the message passed to the general public (Canadian and Chinese) through MSM is just “don’t worry, everything is under control”. No real action behind it yet.”

I guess the key is that the father isn’t residing in Canada, therefore they aren’t subject to tax laws in Canada. Life isn’t fair is it?

#223 Frizzzz on 03.23.13 at 11:03 pm

Where is Nosty? Buried on top of the Coquihalla?

#224 Canadian Watchdog on 03.23.13 at 11:05 pm

Here’s a few Toronto price drops

If buyers could see price history and all the shenanigans going on, this market would absolutely collapse.

#225 Christopher Lackey on 03.23.13 at 11:10 pm

Looking at his face splashed all over the papers post-budget the last few days, I can’t help but wondering if we should all ease up on the “elfin deity” jokes now that he’s got that chubby face condition. But he said it doesn’t affect his handling of the extremely high pressure of his job, you know, doling out pork to uncompetitive canadian industries and backstopping clueless canadian borrowers. So on that note, fire away blog dogs

#226 Cowpoke on 03.23.13 at 11:28 pm

Nearest I can calculate, there are roughly 70% more people on this planet than there really needs to be so naturally we invent games to amuse ourselves.

There is only 2 things. Land and labour. Nothing else matters.

It’s just a game. Don’t worry be happy you dummies!

#227 Ronaldo on 03.23.13 at 11:31 pm

#201 Brainsail -

”I was probably wrong quoting $28K, maybe it was only $18K or less. It was a long time ago. Sorry.”

Not a problem. Back in 58′ a good wage for a working man was about 1.00/hr. My mother was a waitress and she made .75, dishwasher .65. Your parents would likely have made quite a bit more so it is entirely possible that their home would have cost around $18,000 but that would have been quite home for that kind of money back then.

My parents home bought in 1961 for $6000 was a small 2 br. probably around 650 s.f. on a 29 ft. lot so would have been at the low end of the scale for houses. $10,000 would have been a very nice home.

My fathers wage in 61 would have been around 2400 per yr. so basically the house was 2.5 times his wages. House pmt would have been .3 of his monthly earnings. This is pretty much the same factors that applied when I bought my first home in 69. Not sure when things got way out of whack. Likely when households turned from 1 income to 2 starting in the 70′s with the boomer generation and accelerating with the inflation of the mid 70′s oil crisis.

#228 prairie person on 03.24.13 at 12:23 am

I followed a link to a newspaper article about the Russian govt telling Russians to get their money out of Western banks. However, the paper is a small, regional paper outof Illinois. There is no such news in the larger media and there is no reason to believe that a small regional newspaper would have access to memos from the Russian govt. to their embassies. It seems like fevered imagination of an editor who doesn’t know the difference between his fantasies and facts. But then you can say the same about a lot of large newspapers as well.

#229 Blacksheep on 03.24.13 at 1:17 am

Shawn Allen 220,

“Oh those evil private banks; lending to our government at 2% per year for ten years. How evil! Hardly usurious though, is it? Two percent! The lowest interest rates in all of history and yet still some people whine”
————————————————–
For one to make such naive comments, one must lack a basic understanding of how fractional reserve banking functions. Why give private banks the ability to create money from nothing and then charge the government any % of usury, regardless of the rate, to paid in taxes by the people?

Do you understand how MMT works?

Do you understand why our currency has value?

Banks do not create money. — Garth

#230 popados on 03.24.13 at 1:51 am

what is your problem stinky?

#231 observer on 03.24.13 at 1:53 am

Some Real estate agents finally gets it

http://whispersfromtheedgeoftherainforest.blogspot.ca/

Why give a damn if a seller loses money the trick is to get rotation. Now the realitor are putting out number of the real picture, not through rose color glasses.

As we know there is a stand still between buyers and seller. Seller’s simply doesn’t want to lower the price. So no sales.

But what if the cause huge panic to the seller. They lower the price and things will look like a freakin bargain, Agents collect their “HEAD FEE” Seller lose their panties (but who gives a F&*(&K ) As panic spread more rotation. More sale more commission!!!

#232 Joe on 03.24.13 at 2:24 am

It’s yer party.

#233 Canuck Abroad on 03.24.13 at 3:24 am

225 Canadian Watchdog – Thanks for posting that, very interesting.

Does anyone know how to get listing history like this regularly? I would really like to see something like the Vancouver Price Drop website adapted to Toronto but am not aware of anything like it. Canadian Zillow would be even better:)

#234 Buy? Curious? on 03.24.13 at 5:25 am

Here’s an interesting article from a UK paper about the Cypriot banking shitstorm.

http://www.telegraph.co.uk/news/worldnews/europe/cyprus/9949858/Cyprus-dreams-left-in-tatters.html

If I were you, I’d take all my money out of the banks before easter.

Brad Lamb for Prime Minister. He’s the bald Gandalf!

http://www.youtube.com/watch?v=vrlTeoFcf-Q

#235 AK on 03.24.13 at 8:38 am

U.S. Oil Production Set to Surpass Imports For First Time in 20 Years.

http://www.usnews.com/news/articles/2013/03/20/us-oil-production-set-to-surpass-imports-for-first-time-in-20-years

#236 Eaglebay - Parksville on 03.24.13 at 8:58 am

#223 hoser on 03.23.13 at 11:02 pm
“I guess the key is that the father isn’t residing in Canada, therefore they aren’t subject to tax laws in Canada. Life isn’t fair is it?”

It’s called the ‘Income’ Tax Act.
If you’re a non-resident and earn your income outside Canada, why should you pay income tax in Canada?
Your idea of fairness is very strange.
Your CRA guy is full of it.

#237 Ralph Cramdown Ⓤ on 03.24.13 at 9:04 am

#230 Blacksheep — “Do you understand how MMT works? Do you understand why our currency has value?”

Bub, you’ve been hoaxed.

MMT is an attempt to take something which is fairly simple, make it appear to be more complex, and then create a bizarre new ‘theory’ explaining it in simple, yet wildly incorrect terms. You can come up with a modern and different theory about gravity, the strong and weak nuclear forces and magnetism because those are natural forces, the origins of which humans don’t fully understand. But you can’t come up with a modern and different theory about why money was created and how it works. It’s a relatively recent, relatively simple concept created by relatively simple humans back in the economic stone age. Coming up with a different story of its origins and how it works is like saying a brigade of Martians was the deciding force at the Battle of Agincourt — a cute fairy tale completely at odds with history.

#238 DreamingIntechnicolour on 03.24.13 at 9:05 am

Why government wants young people striving for good educations, home ownership and being indebted to the banks is so that they will keep studying, working and sacrificing to get their heads above water – when people stop accepting what the system presents them, striving and borrowing to spend and living their lives to just pay the banks and actually start thinking and acting collectively – governments seem get worried and start to lose their ability to govern as they become preoccupied with trying to “manage the situation” – look at the Montreal student uprisings over tuition fee increases – the provincial liberal government got beaten up by the students politically and soon after fell in the general election.

#239 gus on 03.24.13 at 9:17 am

With introduction of 10 years mortgage for around 3%rate.This means the insane house prices will become a permenant reality.
This is is the greed and mismanagement of the people and the government in making the young people a house dreamers not a house owners.

#240 Rosie " moving backward" on 03.24.13 at 9:39 am

People that hate banks, hate capitalism. People that hate capitalism hate freedom and are therefore communists. This is a housing bust blog, not a place for wing nut theories delivered by 12 year olds. Why do you hate freedom?

#241 Rob Smith on 03.24.13 at 9:42 am

#232 observer on 03.24.13 at 1:53 am

Some Real estate agents finally gets it

http://whispersfromtheedgeoftherainforest.blogspot.ca/

————————————

I wonder how long it will take the drunken, resident, realtor smoking man to fess up?

#242 [email protected] on 03.24.13 at 9:49 am

Another site reporting take money out now

http://www.incyprus.com.cy/en-gb/Showbiz/4118/33749/russian-warning?utm_source=twitterfeed&utm_medium=twitter

Is that site a Grade 5 project? — Garth

#243 LP on 03.24.13 at 10:04 am

#241Rosie ” moving backward” on 03.24.13 at 9:39 am
People that hate banks, hate capitalism. People that hate capitalism hate freedom and are therefore communists.
**********************************
What a foolish statement! Such nonsense does not belong on this blog just as moronic, black and white, baseless drivel from twelve year-old minds does not either.

#244 Herb on 03.24.13 at 10:04 am

#221 Brainsail,

I think it would be relatively easy to pull a “HAM”. Sure, you have to declare your world income and whether you own foreign property worth over $100 k. First of all, the Chinese authorities themselves may not be aware of your financial resources in or out of the country; the aim of the game probably was to hide them anyway. Secondly, how would the CRA find out your overseas net worth? Even if China were prepared to disclose it, they may not know the full extent.

So you make yourself an immigrant if not downright “investor”, park your family and part of your holdings in Canada (as an immigrant you can declare and bring in your whole bundle, or perhaps only enough to give your family an ostensible source of income), keep on doing whatever business you were in overseas, and continue to squirrel away the cash. It would be years before Canadian authorities inquire about your absences from this country and question your permanent resident status, in which case you wrap up or reduce your scale of operations. Or surrender your permanent resident card (if you bothered getting one) and see your family as often as you want to as a visitor until you are ready to make a final decision.

It may be beyond the law, but it works. And I’m sure it works for all nationalities. CRA does not have the troops to do a field audit and assessment on everyone.

#245 Repeat Offender on 03.24.13 at 10:06 am

225 Canadian Watchdog:

So you found some MLS listings that had price reductions before they sold – what a revelation! And you then extrapolate your childish theory into the notion that revealing such “discoveries” would cause the market to “absolutely collapse.” Hyperbole much?

Aren’t you the same clown that was posting listings on this site that were “power of attorney” and claiming they were power of sale? Do you know the difference?

Amateur.

#246 Musty Basement Dweller Wannabe on 03.24.13 at 10:18 am

Can someone please explain the respective roles of CMHC and the lending bank in terms of a mortgage default. My main goal is to clearly understand the risk of myself as a taxpayer under the current rules, and in two scenarios as described below.

For example is it correct to say the following is the basic process for the two scenarios of borrower declaring bankruptcy, or not declaring bankruptcy?:

Scenario 1 – borrower can’t pay his mortgage and declares bankruptcy:

1. borrower defaults, can’t pay no money left, declares bankruptcy.
2. Bank takes the house, sells it for whatever it can salvage and CMHC (ie the taxpayer? or do outside insurance companes back CMHC?) pays the difference to the bank.

Scenario 2: borrower can’t pay his mortgage and doesn’t declare bankruptcy:

1. borrower defaults, can’t pay no money left, doesn’t declare bankruptcy.
2. Bank takes the house, sells it for whatever it can salvage and CMHC pays the difference to the bank.
3. CMHC (or someone else) continues to chase the borrower for life and they are never off the hook unless they disappear to somewhere else in the world.

I would appreciate any clarity on this that anyone could provide.

#247 MarcFromOttawa on 03.24.13 at 10:34 am

Banks do not create money. — Garth

But they do create credit which is the lifeblood of our debt based monetary system.

Not a doomer. I agree with you if you can’t Beat ‘Em Join’ Em.

Remember the Alamo!

#248 EIT on 03.24.13 at 10:35 am

Banks do not create money. — Garth

Please edit this page accordingly, BAHAHAHA.

http://en.wikipedia.org/wiki/Money_creation

Hold on, i’ll revise, please edit this google web search accordingly, BAHAHAHA.

https://www.google.ca/search?q=banks+create+money&aq=f&oq=banks+create+money&aqs=chrome.0.57j0l3j62l2.9322&sourceid=chrome&ie=UTF-8

Commercial banks do not create money. Period. — Garth

#249 Herb on 03.24.13 at 10:40 am

#241 Rosie “moving backward”,

People that hate banks, hate capitalism. People that hate capitalism hate freedom and are therefore communists.

Now that does look like one of your “wing nut theories delivered by 12 year olds”! Nice collection of propaganda terms, none of which you could define beyond their propaganda content.

#250 Humble on 03.24.13 at 11:04 am

We hear a lot in Canada that we no sub prime mortgages as a reason that housing market will not crash. But we don’t hear about the fact that we have sub prime borrowers. At this point in the credit cycle in Canada we are giving away loans to people that will have hard time making the minimum payment. This has been happening for a few years now with the lowering of interest rates. If you have a good credit score and decent income chances are you are made the decision to buy a home many years ago. But if your income is just barely enough enough to finance a home the steady lowering of interest rates is opening a window for people that are one missed pay packet from missing a loan payment. Flaherty has been tightening up the loan requirement for some time now. So this part of the market is being curtailed but the steady dropping of interest rates keeps the sub prime borrowers active. To conclude the low hanging fruit for banks has already been picked many years ago. To keep the game going now you have move down to borrowers that are 1 minor crisis away from default.

#251 Realtor # 1 on 03.24.13 at 11:28 am

A few more weeks before we see if the GTA has the price
Correction everyone is calling for. Please if it doesn’t
Happen this spring could we not say “wait till next spring”. I’ve been waiting for three years now-
For prices to crash
For interest rates to go up
For you guys to be right
Oh the money many of you lost waiting.

#252 TheBigLebowski on 03.24.13 at 11:36 am

#248 MarcFromOttawa

If you can’t beat em join em?

You would have passed the job interview with flying colours for snitching on the jews in hiding during WW2. Its the collective mindset that you represent that has dragged the rest of us real humans into the banking snake pit of hell.

#253 Tom Vu on 03.24.13 at 11:41 am

#213 Smoking Man on 03.23.13 at 9:07 pm

Holy Mackerel….Smoking Man wrote a post with not bad grammar. I knew he could if he applied self…or let other do it for him .

#254 Fed-up on 03.24.13 at 11:56 am

@#246 Repeat Offender

———————————————————————-

Sheesh, dude, take a chill pill. I found the info Canadian Watchdog posted to be useful. It perfectly illustrates the B.S. the realturds try to dump on us by claiming that these properties sold 92-105% of list when in reality none of them came close to those figures and some sold for as low as 70% of what they were originally listed for. But you may have missed that while you were typing up your hot-headed post.

#255 John Prine on 03.24.13 at 12:12 pm

241 Rosie ” moving backward” on 03.24.13 at 9:39 am
People that hate banks, hate capitalism. People that hate capitalism hate freedom and are therefore communists. This is a housing bust blog, not a place for wing nut theories delivered by 12 year olds. Why do you hate freedom?
_____________________________________________
What a moronic statement, where does that leave the people that love credit unions but hate banks.

#256 Fed-up on 03.24.13 at 12:21 pm

#219 Chickenlittle

————————————————————————–

100% agree with everything you state on your excellent post. “$100,000 great” is much more like it.

#257 Canadian Watchdog on 03.24.13 at 12:22 pm

#246 Repeat Offender

So you found some MLS listings that had price reductions before they sold – what a revelation! And you then extrapolate your childish theory into the notion that revealing such “discoveries” would cause the market to “absolutely collapse.” Hyperbole much?

Fight over Toronto VOWs has national repercussions

CREA — Canada's equivalent of the National Association of REALTORS® — maintains that an order the Competition Bureau is seeking against TREB is "broad and imprecise," and that the outcome of the dispute could affect other means of distributing listings over the Internet with "national implications for the real estate industry."

You bet. Because if recent buyers had access to price history and discovered that their property was 5-15% lower a few months prior before closing (prices the agent didn't show them because i) it's not in the agent's interest and ii) many agent's only show the latest list price of the last MLS#), they wouldn't be too happy and, chances are, if in the near future buyers are in a situation where their home value is worth less then what they paid, they may consider legal action to recoup losses.

This is why CREA et al don't want to disclose information and are using everything in their power to stop it; like the unexpected jousting of the woman who initiated a legal case against them.

These are powerful people folks. Don't expect any price disclosure for Vancouver and Toronto. My best advice to buyers is to have an agent sign your own representation and warranty agreement (drafted by your lawyer, not the boards) to ensure that all information is being disclosed.

I'm becoming more tempted to post the link for Toronto MLS prices Thankfully, some realtors who have good worth ethics see what's going on and are willing share information.

#258 Seven Stars and Orion on 03.24.13 at 1:08 pm

#252 Realtor # 1 on 03.24.13 at 11:28 am

I speak only for myself when I say I always feel refreshed and challenged after reading your unique and singular point of view.
You should consider submitting this mantra to the blog followers perhaps 4-5 times a week: “GTA real estate, up, up, and away!!!”
I think it’ll really catch on.

#259 Blacksheep on 03.24.13 at 1:08 pm

Ralph Cramdown 238,

OK Ralphy boy, I’ll bite.

Please explain, if you can:

1) Why the Canadian government can not be forced to default on debts in it’s own currency?

2) Please prove technically that, the Canadian government is spending constrained in it’s own currency.

3) What gives Canadian currency value?

#260 Blacksheep on 03.24.13 at 1:15 pm

Blacksheep 230,

“Banks do not create money. — Garth”
—————————–
Thanks for your opinion Garth.

Fact. But, believe what you wish. — Garth

#261 Blacksheep on 03.24.13 at 1:18 pm

Rosie “moving backward” 241,

“Why do you hate freedom?”
——————————–
Yer funny :)

#262 Daisy Mae on 03.24.13 at 1:24 pm

#203 Brainsail: “It’s just stupid family stuff and I will never know.”

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

Are you saying you’ve been disowned, in a sense? Wills can successfully be challenged.

#263 rosie "moving backwards" on 03.24.13 at 1:26 pm

#244

Ya got it one!

#264 Dr. Hoof - Hearted on 03.24.13 at 1:30 pm

Chatted yesterday with person who stirred up the “sign language” issue here in HAMville.

Oh Man…this thing has gone International. ie Europe Asia…etc etc.

Person told me that its hit Hong Kong Big Time….people in Hong Kong are ticked off wit the Mainland Chinese driving up local RE prices.

People are fed up with the collateral damage of this issue. City hall is very nervous.

Another tidbit was someone from Gov’t(unnamed ) e-mailed this person with veiled threats.

Finally, this person did some GOOGLE searches on neighbourhood homes…which have high occupancy and noisy tenants. Many of the homes are linked to China and China consuls…so WHO are these people staying in these homes?

#265 rosie "moving backwards" on 03.24.13 at 1:32 pm

#250
I used to wonder where all the greater fools were that drank the coolaid. They’re on this blog believing crap from obscure unaccredited infotainment sites, purporting to “understand”. I blame “the man” .

#266 rosie "moving backwards" on 03.24.13 at 1:34 pm

#256

ditto

#267 Dr. Hoof - Hearted on 03.24.13 at 1:39 pm

#241 Rosie ” moving backward” on 03.24.13 at 9:39 am

People that hate banks, hate capitalism. People that hate capitalism hate freedom and are therefore communists. This is a housing bust blog, not a place for wing nut theories delivered by 12 year olds. Why do you hate freedom?

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

Very poorly researched. Terminology all mixed up.

Maybe review Karl Marx, who advocated a strong central bank.

Banks in their current manifestation are predatory and vectors to facilitate communism. That’s why we have wars…those countries that did not want such “communistic =central control ” have been attacked through history.

All wars are bankers communist proxy wars.

#268 Shawn Allen on 03.24.13 at 1:40 pm

HATING BANKS

John Prime said: What a moronic statement, where does that leave the people that love credit unions but hate banks.

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

I’d say a couple bricks short of a full load and a few steps from the Looney bin.

People would do well not to hate the basic infrastructure of our (sort of) free economy and just concentrate on growing their wealth.

Growing wealth is more likely to involve investing in bank shares and making judicious use of banking services rather than looking at bizarre doomer bank conspiracy sites or spending energy “hating” banks.

#269 Rob Smith on 03.24.13 at 1:47 pm

Big news going on, it looks like Rogers is getting into the real estate biz, I can just see smoking man and his ilk fuming from the ears as Rogers puts a damper on their lil party.

http://www.thestar.com/business/real_estate/2013/03/22/rogers_to_step_into_the_real_estate_business.html

#270 Ralph Cramdown Ⓤ on 03.24.13 at 2:20 pm

#260 Blacksheep

1) It’s a special conceit of the MMT crowd that they think only they know the answer to this question. Everybody knows the answer to this question.

2) If the Canadian government attempted to build a bridge to the moon (assuming it’s technically possible), they couldn’t do it. They could print as many dollars as we have trees, but those dollars wouldn’t be enough to get the job done.

3) It’s a confidence trick. I’m not a serf — should the government choose what I consider an unreasonable level of taxation, I’d move. Others on this blog talk about how much of the economy goes underground due to perceived government mismanagement. What gives bitcoins their value?

#271 Shawn Allen on 03.24.13 at 2:21 pm

A NEW DEPOSIT BANK FOR SOME OF YOU

Blacksheep and some others, I am doing market research in preparation to open a new type of bank.

YOUR money will always be available to you. None of YOUR money will ever be loaned out. No fractional reserve. I will be keeping 100% of YOUR money on hand in the vault for you. You will have a debit card and be able to withdraw at any bank machine.

I won’t even lend YOUR money to the government. It will be here in the vault at all times.

There will be branches where you can come and make deposits and withdrawals.

My new bank will be a member of the Canadian deposit guarantee system.

I will match your deposits with an equal amount of shareholder money just to give even more security to your money. My balance sheet will always be 50% equity and 50% deposits owed to customers.

If I make any loans (which is doubtful) it will come from the shareholders 50%. Expect loan interest to start in the 7% range. No 3% mortgages here. Ever.

Since I will not be able to make any money from lending out YOUR money, YOU will need to cover 100% of my costs, plus a profit for me.

The basic fee for up to $100,000 on deposit and $10,000 of activity per month will be $100 per month.

Blacksheep and others can I count on you as my first customers?

#272 Shawn Allen on 03.24.13 at 2:26 pm

MONEY IS DEBT AND SO WHAT?

If a man should trade a goat for a cow let us say he has made an even trade.

If a man should sell a goat for “money” then he is “owed” the value of the goat. The “money” represents a liability of the economic system whereby the man may collect a goat’s worth of goods and services at any time.

It’s rather more convenient than carrying around the cow until such time as he can trade the cow for whatever it is that he desires.

#273 rosie "moving backwards" on 03.24.13 at 2:27 pm

This one’s for you Garth. http://www.youtube.com/watch?v=sBmFwKH5bVY

#274 Old Man on 03.24.13 at 2:40 pm

#270 Rob Smith – they may as well go elsewhere, because they have yet to keep an internet system up; not to mention sending me billings late forcing me to pay a late fee every 6 months. My network 2 today has 4 settings and all say poor connections, and am once again having problems. I have a message for Rogers: as am mad as hell being ripped off, and take this _I_.

#275 Repeat Offender on 03.24.13 at 2:44 pm

#270 Rob Smith:

Rogers has been in the “real estate business” since 2009, when it launched Zoocasa – an unmitigated failure, I might add. Will they make a success of it this time, who knows?

They’ve now hooked up with Realtor / Lawyer Lawrence Dale, a self-described real estate maverick who flopped previously with his previous venture – Realty Sellers, which he quietly shuttered a few months ago.

Everyone from Microsoft to the widow-next-door has taken a crack at re-inventing the MLS, but have proven time and time again that they simply lack the competence to pull it off.

P.S. If you read the article closely, you’ll note that Rogers is looking to hook up with Realtors (and their advertising dollars) in order to make a go of it. Sound familiar? It should because it’s nothing new. Ever heard of Zillow?

#276 Canadian Watchdog on 03.24.13 at 2:49 pm

TO Solds Sample Analysis for March: Google PDF

Listing Count: 2623
Number of Listings Sold Below List Price: 1905
% of Listings Sold Below List Price: 73%

Average Sold Price: $604,319
Median Sold Price: $495,000

Average DOM: 22
Median DOM: 11

Average SP/LP: 99%
Median SP/LP: 99%

Average DOM 22 days? By looking at this listing, it would appear so, when in reality:

2012/03
C2299589
 27 JUNEWOOD CRES 
$2,950,000

2012/04
C2327710
 27 JUNEWOOD CRES 
$2,950,000

2012/06
C2396121
 27 JUNEWOOD CRES 
$2,799,000

2012/07
C2396121
 27 JUNEWOOD CRES 
$2,599,000

2012/07
C2413872
 27 JUNEWOOD CRES 
$2,599,000

2012/09
C2468697
 27 JUNEWOOD CRES 
$2,599,000

2012/10
C2468697
 27 JUNEWOOD CRES 
$2,399,000

2012/12
C2468697
 27 JUNEWOOD CRES
$1,995,000

2013/02
C2561796
 27 JUNEWOOD CRES
$2,350,000

It's closer to 300 DOM. 

#277 Canadian Watchdog on 03.24.13 at 2:50 pm

TO Solds Sample Analysis for March: Google PDF

Listing Count: 2623
Number of Listings Sold Below List Price: 1905
% of Listings Sold Below List Price: 73%

Average Sold Price: $604,319
Median Sold Price: $495,000

Average DOM: 22
Median DOM: 11

Average SP/LP: 99%
Median SP/LP: 99%

Average DOM 22 days? By looking at this listing, it would appear so, when in reality:

2012/03    C2299589     27 JUNEWOOD CRES     $2,950,000
2012/04    C2327710     27 JUNEWOOD CRES     $2,950,000
2012/06    C2396121     27 JUNEWOOD CRES     $2,799,000
2012/07    C2396121     27 JUNEWOOD CRES     $2,599,000
2012/07    C2413872     27 JUNEWOOD CRES     $2,599,000
2012/09    C2468697     27 JUNEWOOD CRES     $2,599,000
2012/10    C2468697     27 JUNEWOOD CRES     $2,399,000
2012/12    C2468697     27 JUNEWOOD CRES    $1,995,000
2013/02    C2561796     27 JUNEWOOD CRES    $2,350,000

It's closer to 300 DOM. 

#278 Herb on 03.24.13 at 2:57 pm

#266 Rosie “moving backward(s)”,

you’re absolutely right! Describes the author of your #241 perfectly.

#279 Devore on 03.24.13 at 2:58 pm

#243 [email protected]

Another site reporting take money out now

Of course the Russian government wants Russians and Russian corporations to repatriate all their overseas money and keep them in Russian bank accounts.

Why is this news?

#280 salonist on 03.24.13 at 3:15 pm

“Report: Mortgages become slightly easier to get as standards ease”

http://www.latimes.com/business/money/la-fi-mo-mortgage-lending-standards-ease-20130322,0,5307201.story

#281 Repeat Offender on 03.24.13 at 3:17 pm

#255 Fed-up:

The question is not whether the information is useful. It’s the ridiculous conclusions that Canadian Watchdog arrives at on a regular basis.

The death of the Realtor has been predicted every year for the past 30 years in a row. First it was Help You Sell, then it was Property Guys and any number of others in between.

The truth is that these FSBO companies have been around forever and they keep robbing market share from each other, while Realtors continue to dominate 90% of the market.

Why is that, you say? It’s the same reason that 90% of car owners don’t change their own oil.

#282 WhiteKat on 03.24.13 at 3:19 pm

@ #252 Realtor #1, You said”
“I’ve been waiting for three years now-
For prices to crash
For interest rates to go up
For you guys to be right
Oh the money many of you lost waiting.”

Nothing stays the same forever, and few of us can predict when change will come. Its starting to become obvious, even to you, that that time is getting closer.

#283 Devore on 03.24.13 at 3:28 pm

#261 Blacksheep

Thanks for your opinion Garth.

Banks can only create credit, which through the power of the Bank Act (and other nations equivalents) is the same as money in many ways. The Wiki page linked even includes the distinction between commercial and central banks.

#284 hoser on 03.24.13 at 3:37 pm

#237 Eaglebay – Parksville on 03.24.13 at 8:58 am
“If you’re a non-resident and earn your income outside Canada, why should you pay income tax in Canada?
Your idea of fairness is very strange.
Your CRA guy is full of it.”

Is it fair that the main breadwinner earns his money out of Canada and does not pay income tax in Canada, yet his wife, kids, mom and dad reside in Canada and receives compliments of the Canadian taxpayers:

1. free education for kids and extra ESL funding
2. free medical for entire family
3. free ESL programs for mom
4. free seniors programs
5. free money from childs benefits

The family can surely enjoy living in a mansion because the money they are saving in taxes will pay for it. Meanwhile the locals struggles with home ownership. That is so fair.

#285 jwkimba on 03.24.13 at 3:46 pm

@62 Garth: Our friends to the south had the ability to de- leverage instantly by walking on their house with non recourse mortgages.

Why do you think it is different here? It varies by state. So any blanket statement about ‘in america’ referring to housing is wrong. Always. Nevada, New York and South Carolina, to name a few, can sue you after you walk away. These were 3 of the hardest hit states. Just like Ontario and BC (but not Alberta)

#286 jess on 03.24.13 at 3:50 pm

minimising intention with pr and weasel words…
‘Techniques of Neutralisation’
http://rowans-blog.blogspot.ch/

at least drop the ‘sir’

#287 Repeat Offender on 03.24.13 at 3:51 pm

#278 Canadian Watchdog:

Your data analysis is deeply flawed, as are the vast majority of your baseless conclusions.

You state that 73% of sales sold under asking. Which leaves 27% of all sales at or above asking? If true, that would indicate a super-hot market in T.O.

P.S. Who the hell has time to analyze 62 pages of sales data anyway? Time to get a job that pays pal.

#288 Old Man on 03.24.13 at 3:53 pm

I have no idea how this Cyprus mess will turn out, but have the utmost respect for Putin as he is intelligent, and will make deals with integrity, but if he is being crossed with a foreign political agenda becomes a mean opponent. I have this feeling that if and when all goes down, he will move quickly with cash to secure a naval base, and concessions for the gas fields.

Now, where is Caesar the hotshot from Canada to step in and save this all with negotiations? He is in hiding, as has no clue what to do on the International scene, as not even the Carnival man has become involved to show all what they can do in the real world.

#289 brainsail on 03.24.13 at 4:05 pm

#263 Daisy Mae on 03.24.13 at 1:24 pm

I’m embarrassed to yes. I’m taking your advice seriously. Thank you very much!

The other side of my family has a golden rule that unless someone was a murderer or committed a major crime the estates are shared equally.

#290 Blacksheep on 03.24.13 at 4:19 pm

Ralph Cramdown 271,

#260 Blacksheep

1) “It’s a special conceit of the MMT crowd that they think only they know the answer to this question. Everybody knows the answer to this question.”
——————————————————–
So we agree, the Canadian government can not be forced to default on debts in it’s own currency. Check.
———————————————————
2) “If the Canadian government attempted to build a bridge to the moon (assuming it’s technically possible), they couldn’t do it.”

“They could print as many dollars as we have trees,”

“but those dollars wouldn’t be enough to get the job done”.
———————————————–
Wow, we also agree, the Canadian government is not spending constrained in it’s own currency. Two for two.
———————————————–
3) “It’s a confidence trick. I’m not a serf — should the government choose what I consider an unreasonable level of taxation, I’d move. Others on this blog talk about how much of the economy goes underground due to perceived government mismanagement.” “What gives bitcoins their value?”
———————————————–
Oh Ralph, we were doing so well. It has nothing to do with confidence. Has nothing to do with levels of taxation. Has nothing to do with underground economics. Nothing to with government mismanagement.

Try again.

Hint: What gives Bitcoins value (to some) has nothing to do with, what gives the Canadian currency value : )

#291 Dr. Hoof-Hearted on 03.24.13 at 4:24 pm

Should also mention….re: HAMville sign controversy

Person I talked to also noted that some on our City Council and an MLA say she should basically take the HAM $$$ and move…be thankful the HAM $$$ have inflated property prices…..whats their problem ?

Them’s fighting words.

#292 Fleabitten Monkey on 03.24.13 at 4:28 pm

#204 HOSER,
I always had understood residency for tax purposes in Canada could be determined to exist in ways more than simply living in the country for more than half the year. There is the so called continued status of relationship between a person and a place. If someone living outside of canada has his family parked in canada/dependents etc. would this not rope them into residency as far as CRA is concerned notwithstanding they live elsewhere for say 10 months of the year?

#293 Blacksheep on 03.24.13 at 4:37 pm

Shawn Allen 272,273,

Your posts are naive and misdirected.

#294 Old Man on 03.24.13 at 4:40 pm

#291 brainsail – I will give you my take on Estates that need to be passed to children with all the proper type of documentation in place. I received a call years ago from a Professor at UofT who wanted my advice for his Estate, as had no wife but three children. There was a lot of money involved with pensions and life insurance, as forget about the Civil Servants, as the University community pays well.

He had three kids, and two would not give him the time of day, and his youngest daughter lived in Vancouver and wanted to give her much more. I said put all emotions aside, as said you birthed them all, so some go bad in life, but not all. I told him all gets an even share of the total Estate no matter what, and he did such.

#295 Canadian Watchdog on 03.24.13 at 5:09 pm

#289 Repeat Offender

You state that 73% of sales sold under asking. Which leaves 27% of all sales at or above asking? If true, that would indicate a super-hot market in T.O.

Correct. Which proves the phony data TREB spews out everything month has diverged from reality.

P.S. Who the hell has time to analyze 62 pages of sales data anyway? Time to get a job that pays pal.

A computer does it in about 5-10 min.

Here's Willowdale price history listings for the blog dogs. Have fun.

#296 Shawn Allen on 03.24.13 at 5:19 pm

What is Money

Blacksheep, I will admit to an understanding of money that is far from complete. Though I think I understand it far better than most.

Meanwhile I work on accumulating wealth which I find is becoming ever more easy. My stock investments are up $103,381 or 8.5% since January 1. Whatever money is I know I have more wealth today measured in money than I had at the start of the year. And at that rate, I don’t think inflation due to money printing or any other reason is a big problem. I am also not worried about my house losing value since it is some 20% of my net worth and it is paid for.

#297 Ralph Cramdown Ⓤ on 03.24.13 at 5:47 pm

#292 Blacksheep

Personally, I don’t think we agree on 2, because spending as much as you can print is a very different thing from buying as much as you want. But whatever.

As to #3, I’m not going to bother to try to puzzle it out. If you want to inform me and the rest of us what gives currencies their value, feel free. I hope your theory will cover Canadian dollars, gold, bitcoins and the in-game currencies used in MMORPGs (google “Chinese Gold Farmer” for the bizarre details if you’re not familiar).

#298 Repeat Offender on 03.24.13 at 5:55 pm

#297 Canadian Watchdog:

What now, are you trying to claim that you invented a computer program that analyzed the data for you?

Delusional much?

P.S. For the record – you are unemployed, right?

#299 brainsail on 03.24.13 at 6:26 pm

#296 Old Man on 03.24.13 at 4:40 pm

You made an excellent judgement call on that situation. My experiences with Estates so far is that is very important to tread carefully or there might be a chain reaction with other family members.

For example, my aunt who was my mother’s sister from a family of five brothers and sisters passed a couple of years ago at age 101. Wow! She left a small amount to each of the tier one siblings. She excluded my brother which has made my mother furious. The reason my Uncle gave was that they were not sure of him because he never communicated with them. No Christmas cards, etc. Her will was made some 25 years ago. We know that because the Attorney sent the notice to an address that we lived at that point of time.

So, split the Estate equally to avoid a future train wreck.

#300 Canadian Watchdog on 03.24.13 at 7:25 pm

#300 Repeat Offender

Didn’t invent anything. What are you doing here again?

#301 Mr Buyer on 03.25.13 at 10:00 am

#289 Repeat Offender on 03.24.13 at 3:51 pm
#278 Canadian Watchdog:

You state that 73% of sales sold under asking. Which leaves 27% of all sales at or above asking? If true, that would indicate a super-hot market in T.O.
……………………………………………………………….
That is interesting, falling sales and prices indicate a hot market…You are barking up the wrong tree pumper. I’ll be more than happy to stand by data

#302 Mr Buyer on 03.25.13 at 10:04 am

#289 Repeat Offender on 03.24.13 at 3:51 pm
……………………………………………………………..
BTW 63 pages of data is not that much if you are into information……..but hey I saw the movie where the guy said “badges, we don’t need no stinking badges.” I guess in this case it is “data, we don’t need no stinking data.” In any event the worm has definitely turned