Fake

Fake

One of the Toronto talk radio stations run by redneck, Tea Party wannabe, reactionary fundamentalist knuckle-draggers (aren’t they all?) asked me to debate yesterday. Sadly for my opponent, I was on an airplane.  Thus, I did not meet Kerri Lynn McAlister.

At least that’s who I was told would be the intended foil to my renting-is-actually-okay position. Until I got off that plane, first in Montreal, afterwards in Nova Scotia, I had no idea who KLM is. Then I read the Toronto Star. There she was.

“Kerri Lynn McAllister was shocked last month to receive notice of an almost 10% increase — $150 a month — on the downtown condo she and her boyfriend had been renting for $1,625,” a large article – syndicated in a number of dailies this week – detailed.  “She was even more surprised to find out the hike — three times what’s allowed for most apartments under provincial rent controls — was perfectly legal.”

Kerri1

My first thought was that KLM must have been born in the far north country and raised by beavers. New-build condos have been exempt from Ontario rent control for years. Why renters shoehorned into all those concrete boxes would not know this is remarkable on its own. Can they not spell ‘google’?

The story had a central theme: renters are victims. Screwed. And the investors who own those condos are the screwees.

“Downtown condo realtor Andrew la Fleur estimates condo rents in the core have jumped 10 to 15 per cent just in the last year because of the perfect storm now hitting Toronto’s downtown… La Fleur calls the ability to impose rent hikes of anywhere from $50 to $5,000 a month an investors’ secret weapon. ‘Wow. Let that sink in for a minute,’ he says in a recent blog.”

Of course, as I’ve proven time and again, reality is something quite different. Most investor-landlords are lucky to break even on their condos, usually in negative cash flow because market rents simply can’t cover financing, condo fees and taxes – let alone give a return on invested equity. In other words, someone like KLM renting a unit for $1,625 is being subsidized by the delusional twit who actually owns the place, even with a mortgage at sub-3%. They’re also avoiding the looming disaster of a condo market meltdown – a story now getting almost daily coverage.

How could a smart young professional not figure this out? Unless she has zero real estate knowledge?

As I walked through the airport, powered up my phone and checked out the latest anguished comments to this tormented blog, I suddenly realized who Kerri Lynn McAlister really is. She’s a plant.

This is no dumbass, hitchhiked-in-from-Kenora, gee-whiz babe. She’s a seasoned online marketer, media groupie and one of the key executives for a growing company that flogs mortgages – none of which was revealed in the newspaper article, but pointed out by readers here.

For the record, this woman is Chief Marketing Officer for RateHub.ca, which makes all its money from click-through referrals to mortgage providers. She has also worked in marketing and communications at Calum Ross Mortgage. RateHub’s bio points out the obvious talent KLM has exhibited for getting attention: “As the team’s master marketer, she’s always looking for new ways to increase the company’s presence, both online and off. She’s on almost every social networking site you can think of, so look her up! Just be prepared to read tweets about marketing, travel, fashion, The Bachelor, and everything in between.”

There’s more: “Kerri-Lynn is frequently quoted in the press on topics related to both the mortgage industry and successful marketing tactics. She has appeared in publications such as The Globe and Mail, Maclean’s Magazine and the Toronto Star.”

Wait. There must be a mistake. How could Kerri-Lynn have been featured in a Star story about how bad renting is when she’s appeared in the same publication as a real estate and mortgage expert? Did the reporter know this and unethically suppress it? Or did she unprofessionally fail to research? Huh? I’m so confused.

As it turns out, KLM is also a newspaper writer and industry spokesperson.

Check out this comment she made to Maclean’s magazine on fixed vs variable home loans. Does this sound like an ingénue?

Actually, variable rates are generally less attractive right now compared to fixed rates. Typically, variable rates follow the direction of the target interest rate set by the Bank of Canada; however, while the target rate has remained unchanged for over a year, variable mortgage rates have risen. This is because banks have reduced the discounts they offer on the prime lending rate. A few months ago five-year variable rates could be found at a discount of -0.95 per cent to the (3.0 per cent) prime rate but now are closer to -0.25 per cent on the prime rate (2.75 per cent), or at a premium-to-prime (3.1 per cent) with the big banks. Comparing this to a fixed rate of the same term duration, the spread between them is very small. Or, put another way, there is a very small premium to pay for the security of a fixed rate. Variable rates with shorter terms (one-three years) are actually higher than their fixed counterparts right now.

And is that level of knowledge consistent with the pouty post she made on her Facebook page?

I’m going to be on the radio tomorrow… I agreed to this before I read all the hater comments on the Star article. I would like to point out I never complained about the premium I pay for living downtown. I was crying over the fact I thought I was protected by rental regulations.

Well, come to your own conclusions. But I’d say this is just another great example of an industry which is as out-of-control as it is unregulated. Stick it in the file with the yellow helo over White Rock full of fake realtors, the rented Lawn Asians outside new condo sales offices or the Van marketing employees impersonating buyers from China in front of TV cameras.

This should tell you much.

222 comments ↓

#1 Larf on 04.25.13 at 7:31 pm

I’m so glad you’re deleting people who say ‘first’ now.

#2 City that smells like it sounds on 04.25.13 at 7:34 pm

DELETED

#3 Ralph Cramdown on 04.25.13 at 7:35 pm

Hey, what’s that thumping sound? I think it’s ‘Holy’ Joe Atkinson rolling over in his grave. Nice job, Susan Pigg. Did you have to write the story yourself or just take dictation?

#4 Randy on 04.25.13 at 7:35 pm

I like Redneck radio…

#5 The Man From Nantucket on 04.25.13 at 7:38 pm

Early today…..is Garth a closet Leafs fan?

Great post!

#6 Corky LaRue on 04.25.13 at 7:40 pm

Wow – thanks for bringing the light to a fraud of an article.

#7 Blue Steel on 04.25.13 at 7:40 pm

This isn’t the first time the Star has had a misleading real estate article. About a month ago (March 2013), their “What They Got” section trumpeted a Davisville semi going for 125% of the asking price. Which was true, except the house sold in June of 2012.

Makes me wonder if the same person wrote both articles. The Star should be ashamed of itself.

#8 Tom Vu on 04.25.13 at 7:42 pm

Do not say the “F__R___T” word

#9 Raj on 04.25.13 at 7:42 pm

HOW MUCH RULES AND REGULATION AVERAGE PEOPLE SHOULD GOOGLE. MOST OF THEM BUSY WITH UPDATING RESUME AND CHANGING DIAPERS

#10 Piggy on 04.25.13 at 7:42 pm

Susan Pigg should be investigated by The Star.

#11 zloy on 04.25.13 at 7:43 pm

so, what’s the solution? how can it be regulated? anything is being done by the gov’t or even considered?

#12 The Man From Nantucket on 04.25.13 at 7:44 pm

I actually checked her site and clicked a bunch of buttons.

Somewhat amused that there’s hardly any spread between short term mortgages and 5 year ones.

Rates are also so low that shaving the rate by 0.5% or so barely makes a dent in the combined payment.

Fun times.

#13 Steve French on 04.25.13 at 7:45 pm

OK, I won’t say I’m first.

#14 Mocha on 04.25.13 at 7:46 pm

So did I understand correctly that it was your blog readers who first pointed out that she was a fake?

Nice work guys!

#15 Blue Steel on 04.25.13 at 7:46 pm

This isn’t the first time the Star has had a misleading real estate article. About a month ago (March 2013), their “What They Got” section trumpeted a Davisville semi going for 125% of the asking price. Which was true, except the house sold in June of 2012.

Why was there no mention of this sale being 9 months old?

Makes me wonder if the same person wrote both articles. The Star should be ashamed of itself.

#16 Mr Buyer on 04.25.13 at 7:56 pm

For anyone negotiating a rental I would suggest negotiating rent increases as a precondition to signing a lease.

#17 Devore on 04.25.13 at 8:00 pm

#97 Mr Buyer

The whole rent falling with the collapse of a real estate bubble thing has been a bit of a mystery to me. It happened in Japan but it is hard for me to understand why. It seems counter-intuitive. With increasing amounts of renters one would expect that the demand would warrant higher rents but this was simply not what happened over the 21 consecutive years of property price decline in Japan. Rents fell but why?

Supply and demand.

Demand lower. Lower household formation. Lower in-migration. Lower employment. Lower wages. Higher occupancy (living with family, roommates).

Supply higher. Speculatively held properties go rental in a declining market. Boom-time inventory under construction completes and goes rental too. Landlords want to hold on to tenants they have, keeping rents low.

It’s only counterintuitive if you believe it always goes up, and everyone wants to buy.

#18 Nukester99 on 04.25.13 at 8:03 pm

Now why would any sane person read anything that Susan Pigg writes? She has long ago proven herself to be nothing more than a RE shrill. The Star should send her packing but then again, the paper has far too much at stake economically from RE advertisement revenue to be close to objective.

#19 CrowdedElevatorfartz on 04.25.13 at 8:03 pm

…..and all the newspapers wonder why their subscription rates are tanking…..

Perhaps if they didnt whore themselves out to the highest bidder every day of the week.

And readers actually believed what they were reading in newsprint……

Newspaper budgets would be in the “black”

Every one of these lying, avaricous MSM scum deserve the looming bankruptcies of their respective newspapers and tv stations.

Rant over.

#20 gokou3 on 04.25.13 at 8:04 pm

” “As the team’s master marketer, she’s always looking for new ways to increase the company’s presence, both online and off. ”

Now, I hope KLM doesn’t suddenly disappear from all those social networking sites.

#21 Nemesis on 04.25.13 at 8:06 pm

Outstanding, OldPol.

Shame you’re not still a Politico.

We could stage a classic HoneyTrap and persuade you to devote more time to the DarkArts.

Speaking of which, where is everyone’s favourite ConspiracyTheoryAggregrator, Nostradamus?

The VengefulLibrarians are really quite p**ssed about having to do their own research for a change.

#22 Lilyflor on 04.25.13 at 8:06 pm

Seriously disgusting !! The media and real estate industry know no bounds

#23 Saint Herb on 04.25.13 at 8:12 pm

I have been looking for a rental for a while now, and I have noticed that the rental prices are going up, not down. Many agents say when they show me the house that the owner is setting the monthly rate to match the morgage payment because the house was expensive.
Many of the landlords seem to be accidental. The house is often for sale and for rent at the same time. The agent says they will take whichever comes first, but that they will take the house off the market if it rents. I don’t believe them.
But what stops everyone from raising the rents to match the high house prices. Once one landlord raises the price they all seem to follow. I have seen houses that have not rented for months, get relisted for a higher rent instead of a lower.
That story is saying since rent is so high and only going up it makes sense to buy the house/condo.

#24 TurnerNation on 04.25.13 at 8:16 pm

On an average car-lined Leslieville street they’re asking close to 1 mill for SFHs. Don’t forget 25k in closing, land transfer taxes.

http://www.realtor.ca/propertyDetails.aspx?propertyId=13030941&PidKey=-1704933184

http://www.realtor.ca/propertyDetails.aspx?propertyId=13037190&PidKey=-1249635367

The bank will raise rents. Letsee, 1% hike on a 500k mortgage is…


K-L-M? The rhyme reminds me of this lyric:

“Today Billie Joe MacAllister jumped off the Tallahatchie Bridge”

Cover:
http://www.youtube.com/watch?v=ZiHaOwEnFM4

#25 Kim Jong Un on 04.25.13 at 8:22 pm

No fun any more as people are getting deleted!

#26 Smoking Man on 04.25.13 at 8:23 pm

Renting sucks, losers rent, people who are poor rent, low lifes rent, people who can’t manage money rent. First thing we ask newly weds, when you buying?

Not my words, You’re mom’s, dad’s, aunt, uncle, brother, cousin, go train freind, work mates and just about anyone you know who is not a low life and an owner will say the same thing. They will do bad math, and make a case for ownership..

That’s power man…..

Good news for you bubble heads, just noticed an up tic in inventory, so its good and bad news.

Takes a bit of pressure off price gains, but will add to the number of sales and make the april numbers look realy good. here in godless toronto.

#27 not 1st on 04.25.13 at 8:23 pm

Garth, we need people like you to ride out and meet these people head on. You should find one of these freaks every week and debate them.

And dont be so polite, be more snarky and mean like you are to us here on your blog. Its the only way to send the message.

#28 TurnerNation on 04.25.13 at 8:25 pm

She sunk below even Missy Bunny.

#29 not 1st on 04.25.13 at 8:26 pm

This isn`t so shocking. About 6 months ago a writer from the G&M did a feature on a toronto condo and what a deal it was. Turns out it was hers she was trying to sell. She barely got a slap on the wrist. Ethics in media aint what it used to be.

#30 TurnerNation on 04.25.13 at 8:29 pm

Wait, via YUL? Must have been Porter out of YTZ!
I’m on the East Coast 4x a year. Flying ex-godless T.O.

#31 Fake — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate | The Affluent Boomer™ on 04.25.13 at 8:31 pm

[…] At least that’s who I was told would be the intended foil to my renting-is-actually-okay position. Until I got off that plane, first in Montreal, afterwards in Nova Scotia, I had no idea who KLM is. Then I read the Toronto Star. There she was. Continue reading → […]

#32 Ex-Cowtown on 04.25.13 at 8:32 pm

#25 Kim Jong Un on 04.25.13 at 8:22 pm

No fun any more as people are getting deleted!
++++++++++++++++++++++++++++++++++

Oh, I’m sure you’ve had a great many people “deleted” yourself Kim Jong Un!

#33 Freedom First on 04.25.13 at 8:33 pm

Fakers to the left of me, fakes to the right of me, stuck in the middle here I am……or is that jokers and clowns? Oh well, same thing. Well done Garth! …..Smile KLM……”you’re on “Greater Fool”

To KLM’s boyfriend……….RUN AWAY FAST!

#34 ChickenLittle on 04.25.13 at 8:34 pm

HA!! There goes the Star again….

First RE is undervalued in Canada, then home purchases are down 15% in March, then Scotiabank CEO says there will be a soft landing…

Can I have some of what these people are on? I would love to be in the same, business as usual, la-la land reality that these people inhabit.

Problem is, no one likes to face reality. As Woody Allen said, “I hate reality but it’s still the best place to get a good steak.”

Maybe these guys should go get a good steak, and then get a grip.

#35 ChickenLittle on 04.25.13 at 8:36 pm

not 1st on 04.25.13 at 8:23 pm
“Garth, we need people like you to ride out and meet these people head on. You should find one of these freaks every week and debate them.

And dont be so polite, be more snarky and mean like you are to us here on your blog. Its the only way to send the message.”

HAHAHA!!!! You are funny AND right!

#36 Bill Gable on 04.25.13 at 8:36 pm

Outed – and KLM looks like a total sleazoid – well done, sir!

#37 Some "outstanding" bidding wars today on 04.25.13 at 8:36 pm

A good number of sales showing 15-20-25% over asking price!

At a first look one is tempted to say “Wow!!” But if you look closer some of them got just the price of the area. I guess that tomorrow these will be on the front page of many newspapers

http://recharts.blogspot.ca/2013/04/to-bidding-wars-debunked-april-25.html

Otherwise… anaemic/anorexic sales numbers :-)

#38 observer on 04.25.13 at 8:36 pm

All I can say, if my land lord tried to raise my rent, I’m outta here.

There is so much selection for a better location at almost the same cost or less.

I’ve been looking on Craigslist and noticed alot of unrented Suite for months

#39 Smoking Man on 04.25.13 at 8:37 pm

#22 Lilyflor on 04.25.13 at 8:06 pm
Seriously disgusting !! The media and real estate industry know no bounds….

…………………………………………………..

That’s business baby….grow up.

Funny when we watch a cop show, bad cop and good cop.

Good cop wants to catch the real killer, bad cop don’t care who he arrests, just wants anyone. By the end of the show, threw hard work, the good cop, gets the truth and arrests the real bad guy.. everyone is happy. Now thats fiction.

In real life, espacialy with MSM, there is always an official story and spin, if a reporter plays good cop, digs for the truth and reports it he’s out of work.

In real life good guys get run over everytime, and bad guys always make it to the top.

Now was it your teacher said, ?

Hounesty, hard work, loyality, and obediance will get you to the top……

Now think dogs, take the poorest shlep you know, compair to the richest. Who is the real life good cop, and Bad Cop.

I know the answer….

Alpha’s to the top, dogs sleep under the bed…

#40 jess on 04.25.13 at 8:38 pm

add the fake celtic miracle

http://www.independent.ie/business/personal-finance/property-mortgages/property-crash-wipes-257bn-off-value-of-homes-in-six-years-29166104.html

http://www.truth-out.org/buzzflash/commentary/item/17932-toilet-paper-will-be-more-credible-than-the-chicago-tribune-newspapers-if-kochs-buy-them

#41 NoName on 04.25.13 at 8:41 pm

Great post!

Smart is believing half of what you hear, brilliant is knowing which half to believe.

Guess internet trols now days have more integrity than daily press. Sad times we are living in…

#42 Victor V on 04.25.13 at 8:43 pm

Here is the link to the Susan Pigg story on the Star website. Drop by and leave a comment to help expose these fakes:

http://www.thestar.com/business/real_estate/2013/04/25/condo_renters_pay_hefty_price_for_downtown_living.html

#43 TomJefferson on 04.25.13 at 8:46 pm

I just sent a complaint to The Star. I suggest others do likewise.

#44 Victor V on 04.25.13 at 8:51 pm

#10 Piggy on 04.25.13 at 7:42 pm

Susan Pigg should be investigated by The Star.

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

Those who wish to lodge a complaint, should do so as there is only one way to help expose the truth.

Here is the link: http://www.thestar.com/about/contactus.html

#45 jess on 04.25.13 at 8:53 pm

in the garden of edan they co existed with humans!
hilarious
Atheists at the Creation Museum

http://www.esquire.com/blogs/politics/george-bush-library-opening-042513

#46 None on 04.25.13 at 8:54 pm

Here are the updated Halifax housing stats.

Besides the price increases, sales, listings, removals all look pretty brutal. I think that ship building contract that everyone is saying is going to drive the market is a joke.

http://www.halifaxrealestateblog.net/

Halifax (HRM) Residential Market Statistic Update For Week of April 18th to April 25th 2013
(Previous weeks numbers in brackets)
*Last year this week

New Listings: 552 (573, 616, 490, 446) *519
Sold: 147 (153, 109, 133, 144) *199
Sale To List Ratio: 27% (26%, 18%, 27%, 32%) *38%
Expired/Cancelled/Withdrawn: 91 (83, 104, 165, 43) *64
Total Active Halifax/Dartmouth Inventory: 5,037 (4,933, 4,791, 4,594, 4,542)
Active Single Family Home: 3356 (3287, 3187, 3037, 2992) *2850
Average Single Family Home List Price: $319,827 ($309,518, $292,520, $279,147, $288,111) *286k
Average Single Family Home Selling Price: $311,439 ($301,840, $287,003, $274,793, $281,138) *281k
Average Days On Market Single Family Home: 90 (80, 93, 92, 82) *81
Active Condos: 386 (371, 353, 337, 336) *225
Average Condo Listing Price: $288,341 ($295,646, $292,810, $273,775, $261,911) *226k
Average Condo Selling Price: $280,358 ($288,946, $280,665, $265,452, $253,700) *223k
Average Days On Market Condos: 120 (107, 191, 70, 71) 133
Halifax/Dartmouth Absorption Rate (weeks): 40 (40, 112, 42, 46)

#47 cici on 04.25.13 at 8:59 pm

Buddy at work tried to sell his condo for a year before taking it off the market and putting it up for rent. But, no takers.
He started to panic (him and wife are having a baby and wanted a house. The condo sale would have made a great downpayment).
He finally was able to rent it…to his sister in law…but he’s only breaking even.
At least they found a decent home and a decent price, but things will be tight until he can offload that condo onto a greedy greater fool.
Good to know the media is helping him out!

#48 Ralph Cramdown on 04.25.13 at 9:00 pm

#34 ChickenLittle — “HA!! There goes the Star again…. Maybe these guys should go get a good steak, and then get a grip.”

I think you’ve hit upon the problem. There’s nowhere near 1 Yonge that you can get a good steak. And since Captain John’s closed, there isn’t even anywhere to get a ptomaine salad.

#49 Carson's Cellar on 04.25.13 at 9:01 pm

The picture for KLM above shows her address blurred out. It’s 21 Nelson Street. Kijiji shows available 2 level penthouses available for $1875 at that same address. It’s also interesting that this listing has been REDUCED from April 1st’s original price of $1925.

http://toronto.kijiji.ca/c-real-estate-apartments-condos-1-bedroom-PRICE-REDUCTION-21-Nelson-St-Lph16-with-Parking-Move-in-May-W0QQAdIdZ473326395

Unbelievable

#50 Victor V on 04.25.13 at 9:02 pm

For those active on facebook, make sure to drop by KLM’s page and leave a comment to let her publicly know what you think of her ‘marketing’

https://www.facebook.com/RateHub

Even Mr. Lafleur has chimed into the social media conversation calling commenters on the Star site “trolls”:

https://www.facebook.com/photo.php?fbid=548410371878570&set=a.169424389777172.54821.119614878091457&type=1

#51 Coho on 04.25.13 at 9:05 pm

This is just another example of those pushing the ‘blue pill’ given ooddles of print and air time to deliver it.

Lies are promoted and decked out like a May Day Parade through a small town complete with detailed floats and a 50 piece marching band, while the truth is hidden miles away from town in the hay loft of the ‘national security’ barn.

We ultimately pay a very heavy price for drug addiction whether it comes in the form of blow or cheap dough. We are just as much victims as fools for being played by those we put our blind trust in.

#52 Contrarian on 04.25.13 at 9:08 pm

Seems to me that beyond the questionable (or should I say unethical?) marketing practices, there is another message that we’re missing. Here we have a graduate of the Queen’s School of Business and Chief Marketing Officer of an online mortgaqe referral business who appears to be very educated and savvy on just how cheap mortgages are right now who is… what is she?

A RENTER!

She has chosen not to buy even though she makes a good living and has better access to the best information on mortgage rates than most of us regular folks. If that doesn’t tell us something about what she thinks of current real estate valuations I don’t know what does…

#53 frank le skank on 04.25.13 at 9:11 pm

You mean people lie in order to sell stuff? When did this start happening? I thought Canadians were beyond that?

#54 Old Man on 04.25.13 at 9:17 pm

#39 Smoking Man – bet my bottom dollar that the plumber who came to see me today is being paid at least $120,000 a year, but who was this young woman with him? She was a knockout, and never looked for a ring, as she was his assistant, but she was a class act; could have been his wife, as this guy was too good looking to ever do a home gig.

She told me to set my alarm clock at 8:00 AM to wake up my old bones, as with the last pipe part would have me up and going at 9:00 AM if all went well, and she looked me square in the eyes, and smiled saying I will do you well, and laughed; she was teasing me with a code word lol, and got it too.

#55 Smoking Man on 04.25.13 at 9:20 pm

Belief by consensus.
The Herd way back when, before planes, trains, and automobiles the modern day consensus was the world was flat.

Everyone went along. There were obvious clues to support the truthers back then, a round sun, a round moon, maybe a round earth . Those who challenged the official story where mocked , ridiculed ,and in some places locked up and or hanged.

The herd’s belief system is the market. Controlling at all costs is the number one priority of machines world over.

Up until a few years ago the machine was efficient, did not need to break a sweet to steer the herd in any direction it wanted. The images on TV all told the same story, there was no critique of those images or facts, no second look or opinion that could be uploaded to the fellow tax farm slaves, an out of place back pack. A building falling down by a small fire.

The internet and YouTube changed all that, the old guard doesn’t know how to handle it, look at Gord Nixon, he just got schooled in being on the wrong end of social media. Good morning Vietnam. His PHD math guys build risk modules with absolutely no variable sizing up the herd.

The people in the upper chambers of our society have been blind sided with the speed at which information flows and good guys become bad guys at the speed of light. No matter how much MSM helps them sell their story. Gartho was ahead of his time when he quit politics and media and started this pathetic blog.

The herd is now crying “the world is round damn it”

In closing my fiction story when Richard Large spirit meets the voice (he’s thinking he’s talking to god) in outer space , he thinks to himself “fk, if this is god I’m screwed, shit I should not have thought that word ,fk damn I did it again”
The premise and theme at the time of writing it was if we could all read each other’s thoughts it would be an absolute nightmare. The ability to lie is what keeps us all from killing each other.

3 days no booze back to my old self….Cool, now to lose the smokes….

#56 rick rules bro on 04.25.13 at 9:22 pm

what up with gold bro? also in 10 years how many more people will there be in Toronto?

#57 Roy on 04.25.13 at 9:24 pm

Another steaming pile of horse manure from the real estate industry.

#58 TurnerNation on 04.25.13 at 9:28 pm

Reading BC Business magazine – this month, pg 29 – the sector with the largest contribution to BC’s GDP is…Construction. (Second is, Info. Tech.)
This won’t end well.

I still read paper magazines not Ipads. Don’t like the idea of a hi-fi Wi-Fi blasting near my firehose & helpers. Give me pressed, bleached dead trees.

#59 TGS on 04.25.13 at 9:28 pm

The fact rent control doesn’t apply to buildings built after 1991 in Ontario seems completely arbitrary. It should be across the board, regardless of how old the building is.

This is definitely not common knowledge, especially if you are used to renting in older buildings and having rent control, then you move into a newer one and you get hit by arbitrary rent hikes.

#60 Smoking Man on 04.25.13 at 9:36 pm

#54 Old Man on 04.25.13 at 9:17 pm

Glad you still got it old man, I’m working on getting it back. What I don’t know yet….being sober sucks……..

#61 InvestX on 04.25.13 at 9:36 pm

Thanks for writing about this fraudster, Garth.

#62 Dean Mason on 04.25.13 at 9:41 pm

To #86 live within your means

Firstly,do not answer a person’s comment on the next day’s blog that is sneaky.Secondly,Harper’s conservatives came into power January-24-2006 and Canada’s national debt was $462 billion and on January-24-2013 it is $609 billion.This is an increase of $147 billion in 7 years 3 months.This is a 31.18% increase or 4.388% annaul increase.It is not $200 billion.

finally,I said that the federal liberals with Justin Trudeau or NDP’s Thomas J.Mulcair would increase Canada’s national debt by at least $300 billion in their first term 4 to 5 years,increase taxes and add new ones while unemployment much higher than 7.20%.

This is if we still have 1.50% to 2.00% real GDP but if we go into even a mild recession I fear it will be a $400 billion increase in 4 to 5 years and unemployment at 9.50% to 10.50% minimum.

Look at Ontario under Dalton Mcguinty’s Ontario liberals when they came into power Ontario’s debt was $139 billion and now it’s $273.9 billion in 9.5 years.This is a total increase of $134.9 billion or 10.215% increase per year. This is in a low interest rate environment with 5.50% to 3.50% Ontario long term bond yields.

Bob Rae’s NDP had an more of an excuse of 10% to 11% bond yields and 13% unemployment.The liberals and NDP made a huge mess.

Mr. Harper turned a budget surplus into an unprecedented deficit. Oops. You forgot that one. — Garth

#63 Godth on 04.25.13 at 9:42 pm

#55 Smoking Man

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

http://www.youtube.com/watch?v=-b6-0yW7Iaw

#64 X on 04.25.13 at 9:43 pm

I read this article this morning in the Star.

I wondered why they didn’t just simply move, there is so many places available to rent out there. I couldn’t understand how the article didn’t look at comparable rents in the area, and the number of available places to rent in the area as well.

Also, anyone who is bitching about their rent going up $150 a month probably shouldn’t be looking into paying to have their own cleaners come in to clean up after them.

The fact that she is a plant makes too much sense.

#65 BubbaO on 04.25.13 at 9:45 pm

Isn’t it a bit ironic that someone who hawks mortgages for a living is RENTING?? She must know something…

#66 The Prophet Ezra on 04.25.13 at 9:45 pm

Speaking of fake, so much for ending QE this year, instead the Fed is saying full throttle ahead, tells you something about the “recovery”:

http://www.bloomberg.com/news/2013-04-25/fed-debate-moves-from-tapering-to-extending-bond-buying.html

#67 Canadian Watchdog on 04.25.13 at 9:54 pm

Wondering why all the fake stories?

Toronto Star to cut jobs citing declines in ad revenue

Vancouver Sun and Province staff warned of layoffs

The unethical behavior you're seeing is of those who are losing money, not making money. Wouldn't you lie if it was the last thing that could save you from bankruptcy?

#68 Dean Mason on 04.25.13 at 9:55 pm

The fact that newly bulit condos can increase their rent more than 3.10% or Ontario’s inflation rate is no surprise.The condo and maintenance fees plus the investors profit is all added up and made to be paid by the renter.

If you don’t want 10%-15% annual rent increases than buy a house you can afford and need and pay it off as fast as you can.You should get a 10 year fixed mortgage at 3.69% and be done with it.In 2000 mortgage rates were 7.50% to 8.00% so this is half what they used to be. I don’t think we will see these higher mortgage rates in 10 years but a 5.50% to 6.00% mortgage rate can’t be ruled out.

In 2007 mortgage were about 5.50% to 5.75% 5 year rates.

#69 Lilyflor on 04.25.13 at 9:57 pm

# 39 smoking man

Nothing surprises me, except the fact they are too stupid to think they won’t get caught.

I’m disgusted at how they believe in the Internet age they can so easily insult people’s intelligence.

#70 Arshes on 04.25.13 at 10:03 pm

#175Mr Buyer on 04.25.13 at 4:53 pm
Demographics: aging with low birth rate
supply and demand: widespread multi-generational households attenuate demand somewhat but demand is still very large
————————————————————-

That doesnt make sense. Low birth rate, multi-generational homes, yet demand is high? Maybe demand just seems high because some Japanese cities are so overcrowded.

#71 Smoking Man on 04.25.13 at 10:04 pm

#63 Godth on 04.25.13 at 9:42 pm

This is good who is this dude?

#72 bob on 04.25.13 at 10:05 pm

Opinion on an acceptable cap rate for an older retail commercial building? Not much potential to add value, and fully tenanted.

#73 cici on 04.25.13 at 10:07 pm

Garth, I still think you’re giving her way too much credit, almost as much as her bio.

This does not even smack of real journalism.

Forget integrity, we all know that’s gone by the wayside. But seriously, she and her reporter friends are so lacking in ambition and credibility that they can’t even get up off their behinds to find a real subject to interview?

Or do they have to make it all up because there are no real, live subjects that meet their profile. Even less credible.

Oh, and the mortgage rate info…probably directly plagiarized from an “O’Leary Mortgages” marketing promo.

LAZY!!

#74 Keeping the Faith on 04.25.13 at 10:13 pm

This KLM Story is despicable!!!

She should be brought up on fraud charges when the real estate market crashes for encouraging many first timers to get caught in the trap.

Apparently, she is going to be at the Toronto Congress Centre May 9-10, The Turner-ites from Turner-Nation should show up and ‘crash’ her party at the Mortgage Show… who’s in?

#75 C-Rod on 04.25.13 at 10:14 pm

Looks like the Toronto Star won’t publish my comment, so I might as well stick it here…

*****

This kind of “reporting” is embarrassing, Toronto Star & Susan Pigg. I expect better, and The Star really should have found a better, less compromised source.

If Kerri Lynn McAllister wasn’t aware of the “lack of rental protection” for condo renters, then perhaps she isn’t very good at her day job as Chief Marketing Officer for RateHub.ca (a mortgage referral site) either. No one has a right to live in a downtown condo or even to own property, but everyone has a responsibility to live at (or below) their means in a home (owned or rented) that they can afford, and to understand the protections afforded to them.

This situation does not need to be legislated, but perhaps condo renters need to be better informed, and investors/landlords need to manage their mortgages and expenses better, so as not to have to charge obscene rents and increases to condo renters, just to break even.

#76 Keeping the Faith on 04.25.13 at 10:16 pm

#23 Saint Herb … Nice try, REALTURD in sheeps clothing!

#77 Dean Mason on 04.25.13 at 10:18 pm

Canada’s Budget deficits are accumulated amounts that ultimately become Canada’s national debt so what really matters in the end is the total debt.Deficits are made of interest that accumulates on the national debt and over spending from the government from borrowing.

Raising taxes is often more damaging to budget deficits and debt.Once the debt becomes bigger deficits get bigger. You can have budget surpluses for 10 years but if the debt does not get paid down it will not help much.If interest rates rise say even 0.25%-1%,recession or economic slowdown real GDP decline occurs plus spending goes up increasing deficits,debt piling up and you have a MCGUINTYO!

I know how deficits,debt and government finances work.Budget surpluses just mean that the government is in balance and did not accumulated more deficits,debt that 1 year,2,3 etc.

I know, too. GST from 7 to 5 in a slowing economy, with steady spending hikes is not exactly prudent. Every year of deficit means decades more of debt. Not too conservative. — Garth

#78 mac on 04.25.13 at 10:19 pm

Shame.

#79 Notta Sheeple on 04.25.13 at 10:20 pm

“….One of the Toronto talk radio stations run by redneck, Tea Party wannabe, reactionary fundamentalist knuckle-draggers (aren’t they all?) asked me to debate yesterday…
========================

Then again, where would the Harpocrite ReformaCons be without their MSM network of talking heads (Chorus, Slum News Network, etc.), spreading their inflexible gospel to their (dwindling thanks to blogs like this) audience of perfectly uneducated, ideologically-programmed Neanderthals who are incapable of thinking rationally for themselves.

#80 cici on 04.25.13 at 10:21 pm

“I agreed to this before I read all the hater comments on the Star article. I would like to point out I never complained about the premium I pay for living downtown. I was crying over the fact I thought I was protected by rental regulations.”

What’s really funny is that she was trying to build up a pro-buying/anti-renting argument, but was bombarded by hate comments (most likely from condo owners who are trying to rent out their units as income properties for profit), because they thought she was devaluing rental prices and premiums in downtown Toronto.

Talk about missing the mark!

#81 Craig on 04.25.13 at 10:26 pm

Hah! I used to work for the Star…not the paper division but their web part. The Managers are all dolts. As are any suckers still working there.

Anyways…guess she made herself up to look so wrecked compared to her professional portrait on the site so that nobody would recognize her anymore? lol…

#82 renters rule on 04.25.13 at 10:26 pm

Some day Smoking Man, karma is going to bitch slap you into oblivion.

#83 Smoking Man on 04.25.13 at 10:27 pm

#69 Lilyflor on 04.25.13 at 9:57 pm

There is no them and us. The higher ups are no different than you and me. If you had years of people kissing your ass, country clubs, boating in the maskokas. You would evolve to the same mind set. Been there done that

A dream for everyone on here who have not had that experiance.

I have. Its boaring…I chose to work at the tax farm, 100% of my consulting income goes to tax, my betting and investments make too much..

I am being abused by traders daily, I bow my head, yes sir no sir. I love it. Why, Im not who they think I am.

I had 3 years of boaring retirment. That sucks, its like death. I need inter action, I need to be in a play, and I can play any role well. In high school , won best actor of the year 2 years in a row. Should have gone to hollywood.

If you had the mans life you too would detach, you will become insensitive the plight of the little man…

Its nature….

Learn words like, put one in the net, the franchize . etc

Ok I had one….damn this is hard

#84 Smoking Man on 04.25.13 at 10:29 pm

#71 renters rule on 04.25.13 at 10:26 pm
Some day Smoking Man, karma is going to bitch slap you into oblivion.

………………………………………………………….

It has bitch slapped me many times in my life, dust off, on to the next adventure. Your point is?

#85 Happy Renter on 04.25.13 at 10:31 pm

But what stops everyone from raising the rents to match the high house prices.

=====

Willingness to pay the asking?

#86 chirag on 04.25.13 at 10:33 pm

were you also on a plane to quebec city? i saw someone that looked like you. this person got upset when someone crumpled his jacket in the overhead cabin but did not say anything. i figure if it was garth- he would have given a piece of his mind

Just don’t mess with my squirrel hat. — Garth

#87 I am in C on 04.25.13 at 10:34 pm

“I agreed to this before I read all the hater comments on the Star article. I would like to point out I never complained about the premium I pay for living downtown. I was crying over the fact I thought I was protected by rental regulations.”

Let s get this straight. Her defense is that she is fresh off the turnip truck! She has been in the mortgage industry for years!!!

#88 Tony on 04.25.13 at 10:35 pm

Re: #23 Saint Herb on 04.25.13 at 8:12 pm

So rent where rents have fallen or wait for rents to fall. It’s quite rare for rents not to fall when real estate falls. All you have to do is wait and a fall in rent is almost guaranteed.

#89 Dr. Wayne on 04.25.13 at 10:49 pm

#2 City that smells like it sounds on 04.25.13 at 7:34 pm

DELETED

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

It’s great seeing you wallow in your own stench when you try to slip in a 1st …

#90 Smoking Man on 04.25.13 at 10:54 pm

Guys the negative comments on here, the evil start, the evil chic , the bitching, the complaining..

Dudes. you suffer from low selfesteam, low selfworth.

I have said this before. Look in the mirror, damn french kiss yourself..your are the best. No one is better.

Go out and beat the world at its own game. Its fun….

What is wrong with you people….Man

#91 Stupesing in Cabbagetown on 04.25.13 at 10:55 pm

You would think that, after the Global TV-Mac Marketing debacle, the MSM would be very cautious about promoting false news generated by mortgage marketing companies. They are either desperate for the advertising revenue or they think that enough time has passed and people have forgotten.

#92 Ralph Cramdown on 04.25.13 at 10:58 pm

#67 Canadian Watchdog — “The unethical behavior you’re seeing is of those who are losing money, not making money”

Torstar losing money? I don’t think so. Not making as much as last year, maybe. It takes a lot of cash to keep Snagglepuss in toothpaste and bowties, and the five families aren’t in the business for their health.

#93 Smoking Man on 04.25.13 at 11:01 pm

74 Keeping the Faith on 04.25.13 at 10:13 pm
This KLM Story is despicable!!!

She should be brought up on fraud charges when the real estate market crashes for encouraging many first timers to get caught in the trap.

Apparently, she is going to be at the Toronto Congress Centre May 9-10, The Turner-ites from Turner-Nation should show up and ‘crash’ her party at the Mortgage Show… who’s in?
………………………………………

Rather than form your own plan to get your peice of the pie, lets go shit in someone elses cornflakes.

So Canadian….

How can I help these people ……….

The number teachers did on the kids is alot worce than I thought………

#94 Ian on 04.25.13 at 11:04 pm

Fired off a complain to the Star’s ombud: [email protected]

Suggest you do the same.

#95 cici on 04.25.13 at 11:06 pm

#55 Smoking Man

3 days no booze…Congrats and don’t back down, once you’re past the first month, it should be smooth sailing…right in time to take the boat out!

#96 What? on 04.25.13 at 11:28 pm

She rents? Why doesn’t she getting one of those tasty mortgages.

#97 Uh Oh Canada on 04.25.13 at 11:29 pm

“rented Lawn Asians”- I almost laughed out my lungs. This is why I am addicted to this blog- the journalism is exceptional- except for the occasional spelling mistakes. Garth should start his own ‘Turner Post.’

#98 Shawn on 04.25.13 at 11:29 pm

Great expose…

Last? (for the night?)

#99 damienc on 04.25.13 at 11:38 pm

Ok Garth PLEASE:

Do your inquiry on Susan Pigg, the real estate journalist at The Star.

When she is not paraphrasing TREB reports, she writes that kind of garbage. Obscure anecdotes that are fake like you show today.

I wrote a comment on her article today, asking her to disclose her sources of revenue. My comment didn’t pass the filters.
How come these kind of people are not discredited by now?

#100 Old Man on 04.25.13 at 11:55 pm

#84 Smoking Man – you need to be trained with a trip to London, England. I booked into the Drake for 10 days, as this girl at the desk asked me if I needed to be knocked up in the morning, and said be it with you, and she said yes and there will be no charge.

I thought was in heaven so said how about 9:00 AM, and my phone was ringing, and was told this was my wake-up call; as to be knocked up in the morning in London, England is but a phone call, so went to a pub and found me a tart for the night :)

#101 Retired WI Curmudgeon on 04.25.13 at 11:59 pm

Real Estate needs Pumpers & Humpers to get that stuff sold. Much like auto dealers who have these perpetual “SALES”. Furniture dealers as well. Who buys a car unless its “on sale” ditto furniture. Except it never, or rarely IS marked down.

Real Estate needs panic -foreclosures, job losses, market mayhem to get listing volumes up AND prices down.

I don’t see that happening north of the 49th quite yet.
Come back in six months, maybe it WILL be different.
Perhaps WAY different.

Hey, if Smoking Man can change, the world might be remade into a virtual reality. No wait, these idiots on cell phones already have that alternative universe don’t they?

Nevermind…

#102 Semper Aurum on 04.26.13 at 12:01 am

Hey rickrulebro,

We not allowed to talk about dat stuff here.

#103 Semper Aurum on 04.26.13 at 12:13 am

Its for those who can think for themselves and act for themselves, not for those who need to be hand held and led down a path.

#104 Trailer trash Yellowknife on 04.26.13 at 12:42 am

Checked out her FB/RateHub page, and I especially enjoyed the “if you work at Starbucks this is what you an afford” article. Complete with a picture show:) a room in Vancouver or townhouse in Mission.

http://www.househunting.ca/vancouversun/Photos+work+Starbucks+this+what+afford/8249880/story.html

#105 Tom Vu on 04.26.13 at 12:45 am

Smoking REturd

Stillfeeling tuff

e-mail moi

#106 Ronaldo on 04.26.13 at 12:48 am

#68 Dean Mason -”In 2007 mortgage were about 5.50% to 5.75% 5 year rates.”

But the banks were offering prime minus rates back then of up to 2% so in effect the rates were 3.5 to 3.75. This was one of the reasons that house prices climbed so much between 2005 and 2007.

For those people who were on the variable mortgage prime minus band wagon, they came out smelling like a rose when the BOC rates went from 4.5 to .25 after the GFC.

Some of these people had variable mortgages as low as 1.5% as my son did. His mortgage payments dropped in half and stayed that way for several years.

On the other hand the price of the house dropped as well so when he did end up selling recently, he managed to break even. That was in Alberta.

Now those people who bought in Vancouver in 2007/08 with the prime minus rates also saw their mortgage rates drop immensely. One person I know who paid 750,000 for a place who got a prime minus 1.25 ended up with a rate of around 1.75. But, unlike parts of Alberta where the prices dropped and flattened out, Vancouvers prices skyrocketed to the point that his house was valued at 1.4 million at the top of the market. I suspect that right now it would be below 1 million.

When he purchased, the talk around the water cooler with people in his age group (thirty somethings) was how low of a mortgage rate they were able to obtain.

It didn’t seem to matter that rates could turn around and go up. They simply looked at what the payment would be and if they could afford to make it. Worry about higher rates when they come sorta thing.

Now 5 years later, they are coming up for renewal and I suspect the prime minus thing will go the way of the dino and they will be stuck paying the going rate. I wish him all the best. Just hope he didn’t use the house equity as an ATM otherwise they’re hooped.

#107 Dean Mason on 04.26.13 at 12:49 am

I keep hearing that sales tax is not a progressive tax from liberals all the time and now you say that cutting the G.S.T. from 7% to 5% is not prudent.You can’t suck and blow at the same time. When Paul Martin cut marginal income tax rates the federal liberals said it was a great thing but before when Mike Harris Ontario’s progressive conservatives cut income taxes first before Paul Martin it was not a good idea based on false supply side economics that did not work creating jobs and economic prosperity.What hypocrites.

Remember Ontario liberals Dalton Mcguinty said the H.S.T. would create 600,000 new jobs in Ontario.They also said that consumers would see some lower prices because businesses would pass on some savings from tax simplification of 1 sales tax instead of 2.Ontario liberals also said it would be revenue neutral.None of these three things happened.They were all totally misleading.

The liberals no matter which government are always trying to convince people they will not raise taxes.It is always the opposite.Justin Trudeau’s father former prime minister Pierre Trudeau debt legacy of an increase of $116.70 billion in 16 years.Canada’s debt went from $11.30 billion from 1968 to $128 billion in 1984 which is a 1,132.74% increase or 11.3274 times in 16 years.This is a massive 64.52% annual increase for 16 years of Canada’s debt.

He also made a $0.00 budget deficit in 1968 to $25 billion annual budget deficit in 1984 when he left.Under Trudeau’s liberal government government spending jumped 76.66% from 30% of GDP to 53% of GDP.It was a disaster.People better wake up or you think things are not that good now just wait or what former prime minister Trudeau would say just watch me.

#108 James on 04.26.13 at 12:58 am

“… talk radio stations run by redneck, …”

Oops… Would you, Garth make it clear, – which color you like more, red, yellow, or white? :-))))))

#109 Pierre Poutine on 04.26.13 at 1:10 am

McAlister is a loser. First she jumped off the Tallahatchie Bridge, then she received a 10% rent hike. Serves her right!!

#110 David McDonald on 04.26.13 at 1:17 am

I thought rent control applied to all residential rent increases in the province of Ontario (except for buildings owned by the government of course). When did this condo exemption come into force? I’ll bet most people are like me; without a clue.

#111 The R on 04.26.13 at 1:26 am

Wow what a site !!

the big number from real estate this week was the 62 % price difference betweem us and them.

holy whatever, lets see-better health care & education.Way safer streets and neighboor hoods. More good stuff underneat, hell of alot less people…

And their been in a housing correction for how many years ? they should catch up to us in..a.. about never.
we’ve been in a correction for about a year in my neck of the woods-left of the great boulders…
before all you wanters of epic price drops get all hard ,dizzy,or salivating all over the place.

The most awaited correction of all time is just giving us humble price increases yearly-seems like prices aren’t going up like Mrs Wankers fists, upon knowing that some good & smart people enjoy posting first.
Instead just a bit to make up for infalation — don’t know how long before the partys back on (music, lights, booze and …

A lot of borderline owners now, won’t get priced out forever but have to pay more for ownership later-han’t it always been like that ?

did I hear someone say godless Toronto ? why ? isn’t it one of the best places in the best country on this ball of ours ? Even the local uneducated drunks know as much !!

well maybe not the wanna B ones

#112 uh huh on 04.26.13 at 1:29 am

Dr.Wayne:

Yes, but now they have found other ways to sneak in their “firsts”. Slightly more witty but still worthless.

#113 tunano on 04.26.13 at 1:39 am

Brad Lamb, Susan Pigg.
Hmmmm. Both, seemingly cute barnyard animals.
But put them in their human persona’s, and each deserves to be deliciously roasted on the bbq .

#114 daystar on 04.26.13 at 1:58 am

#62 Dean Mason on 04.25.13 at 9:41 pm

You don’t get out much. Check this out:

http://www.tradingeconomics.com/canada/general-government-gross-debt-in-percent-of-gdp-imf-data.html

In 06′ when Harper came into power Canadian gross public debt was at 68%. Harper erased surplus’s and last year gross public debt to GDP rang in at:

http://www.statcan.gc.ca/daily-quotidien/120615/t120615b004-eng.htm

… 109%. This is a 40% increase in gross public debt in 6 short years under Harper’s leadership. Most governments that run up debt to these kinds of extremes are remembered as governments that lead nations to bankruptcy but that’s not all Harper will be remembered for. A lethal housing bubble that is likely to take a decade or more to recover from, a dismal environmental record that is giving us a black eye on the world stage coming directly from Harper’s lauding “24 month fast tracked government approval on environmental studies” as the “model of the future”:

http://www.cbc.ca/news/business/story/2013/04/02/f-mining-protests-canada-abroad.html

… to government waste on propaganda:

http://news.nationalpost.com/2013/02/17/canadians-growing-tired-of-harpers-economic-action-plan-call-government-ads-propaganda-in-recent-survey/

… its in the hundreds of millions now. That’s a scandal in itself. Harper’s greatest cardinal sin however has to be debt and not just soaring gross public debt but unsustainable household debt through wreckless CMHC regs that is interest rates away from revealing just how damaging our debt levels truly are.

Since Harper took over in office, household debt soared from 115% in 06′ to a walloping 165% to where it is today. Incomes since Harper have grown 8%. What does that mean? In every way shape and form, piss poor regulation with mortgages and credit. In every category, whether its external debt, trade (we now run chronic deficits thanks to getting hosed with Western Canadian Select and its political), budgets, Canadian ownership percentages of natural resources, you name it, Canada is losing and we have never historically been as vulnerable to rate hikes as we are now. When rates rise (2015, look out) the former and not so former corporate lobbyist Harper will have no defence even from folks like you Dean.

#115 Matt on 04.26.13 at 2:03 am

Let me get this straight. Renter was surprised to find out post-1991 condo wasn’t covered by rent increase protections. Continues to rent.

And this was somehow a story about how terrible renting is and shilling for the real estate industry?

“I don’t always come up with conspiracy theories, but when I do, they don’t make any sense.”

#116 Bailing in BC on 04.26.13 at 2:03 am

89 Dr. Wayne on 04.25.13 at 10:49 pm

” It’s great seeing you wallow in your own stench when you try to slip in a 1st …”

I fail to see how this comment is preferable to a happy exclamation of “First!”

#117 Joe on 04.26.13 at 2:17 am

It’s the old love of money thing…most people will say or do anything for it.

#118 Mr Buyer on 04.26.13 at 2:46 am

#70 Arshes on 04.25.13 at 10:03 pm
#175Mr Buyer on 04.25.13 at 4:53 pm
Demographics: aging with low birth rate
supply and demand: widespread multi-generational households attenuate demand somewhat but demand is still very large
————————————————————-

That doesnt make sense. Low birth rate, multi-generational homes, yet demand is high? Maybe demand just seems high because some Japanese cities are so overcrowded.
……………………………………………………..
Maybe, I honestly dunno on this one. It is a head scratcher.

#119 Buy? Curious? on 04.26.13 at 3:21 am

Whoa! Garth, Mofo’s are trying to set you up? Trap you? Gawdamn, you are hard core! Today’s post read like a John Grisham *barf* novel! Next, you’ll be facing “Honey” traps like Julian Assange!

In one week, you’ve had New York Investment bankers (the most evil types of people the world has ever seen!) take a canoe trip to Toronto to talk to you about real estate then, you have a Harvey Oswald type woman, working for the Real Estate Mafia, trying to take you out! If I didn’t already love you and respect you, Garth, I do now! You’re the Boss!

The only thing that makes me sad about this is that while you’re putting you’re neck on the line, giving the finger to these crooks, former camp counsellor and silver spoon connoisseur, Justin Trudeau, has a good chance of becoming Prime Minister of Canaduh, and Rob Ford, the worst person to sit beside at a Maple Leaf game (“Do you know who I am?”) is mayor of the greatest city in North America. Stupidity is rewarded.

http://www.youtube.com/watch?v=u9LH_y159sg

#120 i love libraries on 04.26.13 at 3:33 am

Gotta hand it to you this time…I don’t often agree with you on where the stock market is headed, but I do applaud and respect that you seek truth…the main reason for my tuning in

PS: if the market tanks and you lose it all, you would do well as an investigative journalist…

#121 condopoor on 04.26.13 at 3:35 am

Hey,

This was great work on your part to put the pieces together. We, the common folk, need your superpowers.

Thanks Garth.

#122 observer on 04.26.13 at 3:39 am

23 Saint Herb on 04.25.13 at 8:12 pm

But what stops everyone from raising the rents to match the high house prices. Once one landlord raises the price they all seem to follow. I have seen houses that have not rented for months, get relisted for a higher rent instead of a lower.
==================

I’ve owned several houses in the past and it all comes to basic math.

If you don’t collect for a month that will probably blow you away for a year.

For simplicity sake, let say you wanted 1300 per month for a suit and same with all you landlords in your hood. Do you risk not getting it rented for a month or try to cut throat the others by lowing the price to 1200. Therefore you can also pick and choose your tenants (which is important).

By missing a month that’s the same as renting it for 1200 for the rest of the year, you miss 2, now your in the red and have to take quick action to lower the price anyways.

It all sounds good that landlords can price fix.But if you have the banks down your throat ready to foreclose your property, the situation changes in a flash!!

#123 Julia on 04.26.13 at 3:44 am

For KLM and other renters out in Garth blog land:
http://www.landlordselfhelp.com/RentIncreaseGuideline.htm

#124 george on 04.26.13 at 5:40 am

Reinhart and Rogoff: Responding to Our Critics

#125 Lilyflor on 04.26.13 at 6:11 am

#83 smoking man

Can’t fight 100,000 years of human evolution.

I’m a realist, but I hate stupid.

#126 EIT on 04.26.13 at 6:40 am

conflicts of interest have no repercussions if you’re doing meaningless things, just saying

#127 Ron Burgundy on 04.26.13 at 7:32 am

I am surprised that nobody else has mentioned it odd that KLM (flogger of all things Real Estate) is in fact a Renter……

#128 Dean Mason on 04.26.13 at 7:35 am

DELETED

#129 T.O. Bubble Boy on 04.26.13 at 7:48 am

It seems that KLM was simply writing a work of fiction, and putting herself in the mindset of a loser renter from out-of-town…

Maybe The Star just put this wonderful piece of fiction in the wrong section of their paper?

#130 Dean Mason on 04.26.13 at 7:52 am

Oh by the way, Justin Trudeau and Thomas J. Mulcair are cousins.They are distant cousins 9Th to be exact but isn’t it interesting that their political leanings and mentality are left based similar social justice,wealth distribution,,tax and over spend,add massive debt,equality making everyone equally poorer not equally richer,rising unemployment nonsense.

I guess the apple tree has a great amount of apples that do not fall far from the tree.

This is not a political blog. You an stop the assassination of Kid Trudeau now. — Garth

#131 Craig on 04.26.13 at 8:08 am

Hey Garth, would Honderich have allowed this crap to go on?

PS – Great blog, I think I’m addicted. Keep up the name calling, the honesty, the point blank, in your face, commentary. I love it !

Finally, a truly Canadian, I don’t care if I offend you, BLOG!

Call an idiot an idiot.

Cheers

Craig

#132 kk on 04.26.13 at 8:11 am

Thank you Garth for exposing the fraud. I read the KLM article yesterday and fell into the trap indeed……

#133 Timbo on 04.26.13 at 8:15 am

http://www.cnbc.com/id/100676666

“If Japan succeeds with its 2 percent inflation target, interest rates will rise at some point and they just need to reach 2.8 percent for the interest on government debt to equal government revenues,” James Gruber, author of “Asia Confidential” said, noting that interest on government debt takes up 25 percent of government revenues currently.”

Nothing to see here….move along……

http://www.macrobusiness.com.au/2013/04/chanos-china-is-getting-worse/

“you can’t keep growing your credit at 50% of GDP. Something is going to give. When? I don’t know. But it has been a pretty good place to be short as we were talking about before the show”

pessimistic attitudes are so refreshing……….

#134 TurnerNation on 04.26.13 at 8:28 am

So we see local media can easily be corrupted into emotional nonsense. Do people still trust international war news (the first casualty of war, is truth)? I watched part of a vid where a former US analyst and BBC reporter from Gulf War 1 admitted they didn’t do their jobs, and repeated lies and nonsense to us on the tee-vee. We ate up those 6pm “newz” casts. Now the cast members admitted their programming. It’s all there if you care to look.
Some will soon learn: the world is ruled by violence, not by democracy. “We know he has….”
The next time you hear fantastical stories of “rebels” (aka mercenaries paid for by corporations), now you know who is re-shaping the world.

#135 Centre-ville on 04.26.13 at 8:40 am

Garth,

Those occasions when you call foul on gimmicky ploys like the one showcased today are my aboslute favorites. You have no idea how much it brightens up my morning to see someone expose how consumers are being manipulated, rather casually at that, by marketers, bankers and, certainly not least, real estate professionals.

Your blog remains a daily source of interest but, I swear, when you choose to tackle a topic like today’s, you’re making my day in ways you can’t even imagine. You have my greatest thanks for fighting the good fight like you do. Wow.

There’s hope yet.

#136 Herb on 04.26.13 at 8:42 am

#130 Dean Mason,

Jeffery Simpson a few days ago described Conservative political tactics as a “mixture of malice and mendacity”.

Your comments are an outstanding example!

#137 Herb on 04.26.13 at 8:47 am

#23 Saint Herb,

please, no aspersions on my actual name.

#138 Craig on 04.26.13 at 8:55 am

From CNN;

The U.S. economy accelerated at the beginning of the year, but don’t get too excited. Economists aren’t optimistic the trend will continue in the months ahead.

Gross domestic product — the broadest measure of economic output — rose at a 2.5% annual pace in the first three months of the year, driven largely by a pickup in consumer spending on services, the Commerce Department said.

Consumer spending, which alone accounts for roughly two-thirds of GDP, rose at a 3.2% annual pace.

Get complete coverage of breaking news on CNN.com, CNN TV and CNN Mobile.

#139 Brandice T. on 04.26.13 at 8:58 am

WE HAVE TO EDUCATE PEOPLE ABOUT THESE UNETHICAL ATTEMPTS AT REAL ESTATE MARKETING! Thanks for sharing Garth!

#140 Herb on 04.26.13 at 9:02 am

#100 Old Man,

nothing about you surprises me anymore, not even your expectation to get pregnant (“knocked up”) in London.

#141 thiuscountryis going down the toilet on 04.26.13 at 9:07 am

“I know, too. GST from 7 to 5 in a slowing economy, with steady spending hikes is not exactly prudent. Every year of deficit means decades more of debt. Not too conservative. — Garth”

What?….you’re complaining the pot has called the kettle black? Harper pandering to the civil service and special interests to stay in power….just like the libs did for thirty years?….say it ain’t so. What kind of debt did the Trudeau libs run up….only Canada’s first trillion dollars thats all….we’ve never recovered from that.

Stop the crap about the libs running a surplus…BS….they transferred the debt onto the provinces…..resulting in all CDNs having bigger local tax bills…..

The accumulated national debt has never been close to a trillion. Mr. Harper has presided over the largest budget deficit in history. Debt has risen $150 billion under the current government, which won office on ‘fiscal management’. Fact, fact and fact. — Garth

#142 Daisy Mae on 04.26.13 at 9:43 am

“…and checked out the latest anguished comments to this tormented blog….”

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

You are a delight to read! So funny! I’m still laughing…. :-)

#143 Sebee on 04.26.13 at 9:49 am

I’m not sure The Star article is such a bad thing myself.

1. It tells renters to watch their tail when they rent condos.

2. It tells potential Land Lords that it may not be as easy as they think to jack up prices. After all, how much stuff can a person have in a 450 sqft appartment that a $150 increase wouldn’t cover moving out?

#144 Bottoms_Up on 04.26.13 at 9:55 am

#110 David McDonald on 04.26.13 at 1:17 am
————————————————
I agree, I was a long time renter and NEVER heard about the lack of rent control on certain dwelling types. It would be nice if the MSM pointed this out on a regular basis, especially in the articles that every year tout the maximum that landlords are allowed to raise rent. If there is an exception to the rule then that exception should be stated.

#145 Greg W, Oakville on 04.26.13 at 10:03 am

Hi #141, FYI, anyone.

Have you seen this Canadian federal debt clock?
http://www.debtclock.ca/

If you go to their ‘Debt history’ page you see some of the yearly numbers (in Billions of dollars!) and,

“In just three years from 2008 to 2011 all the debt repayment ($105 billion) of the previous eight years was completely wiped out.”

#146 Dean Mason on 04.26.13 at 10:07 am

To Herb #136
The liberals have lied more than any political parties in Canada. Now, malice is stealing a family’s money through confiscatory taxation and inflation,debt accumulation setting up for more and even higher taxes.Mcguinty in Ontario lied many times.Chretien said he would get rid of the G.S.T.I am like an elephant I don’t forget the malice and mendacity of the NDP,liberals,left in general.

I know this is not a political blog but they affect economic,social policies like unemployment,inflation,debt levels,one parent staying home to raise their children,discretionary or disposable income,real estate prices,interest rates etc.

It is easy to keeping raising taxes passing their irresponsible policies to Canadian taxpayers instead of living within their means and cutting waste,duplication and unnecessary programs.

Enough. — Garth

#147 Dean Mason on 04.26.13 at 10:12 am

I am not on an assassination of kid Trudeau, I am trying to prevent the country from going down the tubes that’s all. It’s not personal it’s Canada’s,Canadians future and business.

We all care about our nation. No one person or party is omniscient. Progress takes compromise and the best efforts of us all. Simply pulling your opponents down is mindlessly destructive. — Garth

#148 cramar on 04.26.13 at 10:16 am

There is a lesson here Garth. Next time you actually do/can get into a debate, make sure you do major DD on your opponent.

Few would remember the original theme after you brought the bombshell out!

“Know thine enemy!” Or as Smoking Man would write, “No your enema.”

————-

@#82 renters rule

ROFL!!

#149 HogtownIndebted on 04.26.13 at 10:38 am

Garth,

This was a real service by you and all who have pointed it out.

I saw on Kerri Lynn’s Twitter feed last night that she had an appointment on Newstalk 1010 radio in Toronto this morning to talk about her ‘rent problem’.

So I emailed the station last night with a link to this blog, and challenged them to challenge her on what she was up to.

After all, this station, like the rest of the
“Toronto talk radio stations run by redneck, Tea Party wannabe, reactionary fundamentalist knuckle-draggers ” calls itself “in-depth radio” and proclaims its integrity regularly.

So I thought it would jump at the chance to possibly make news on air in some actual journalism for a change, stuff that might make people think the media has integrity.

No such luck.

The cowardly host, John Moore, slunk away from the chance to go after the truth. Instead, he meekly informed listeners at 7:18 this morning that the interview would not be happening because they …

….”had heard that the person (scheduled for interview) was a lobbyist”.

A small victory over disinformation, I suppose, still.

Could the station’s reluctance to show any real backbone have anything to do with all the real estate-related businesses that advertise there…..or the history of real estate programming (shows tricked out to look like radio shows that are actually advertisements for condo projects etc…) there over the years?

The host of this particular program, John Moore, has been heard to regularly shill on air for home renovators and people putting fancy water purifiers into houses – they go great with granite countertops I hear – so why would he want to bite the hand that feeds him and diss the real estate industry in the form of some actual tough questions? Better just to push it aside and carry on as usual. Wimp. Coward.

Glad we have such objective, impartial media to tell us the truth…………………….er, not so much.

Shameful cowards and self promoting hacks

#150 Daisy Mae on 04.26.13 at 10:44 am

#62 Dean: “Secondly,Harper’s conservatives came into power January-24-2006….”

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

That was a sad day for all Canadians.

Not a political blog. — Garth

#151 AK on 04.26.13 at 10:47 am

#112 uh huh on 04.26.13 at 1:29 am
“Yes, but now they have found other ways to sneak in their “firsts”. Slightly more witty but still worthless.”
——————————————————————-
You call this witty?

#2 City that smells like it sounds on 04.25.13 at 7:34 pm
DELETED

#152 Blackstone Bart on 04.26.13 at 10:51 am

http://www.bloomberg.com/news/2013-04-25/blacktone-buys-atlanta-homes-in-largest-bulk-rental-trade.html

Blackstone Group LP (BX) bought 1,400 properties in Atlanta, some eligible for federal low-income housing subsidies, in the biggest bulk purchase for the fledgling homes-for-lease industry.
The private-equity firm, which has spent more than $4 billion on 24,000 rental properties in the last year making it the largest buyer in the U.S., purchased the residences from Building and Land Technology, said Marcus Ridgway, chief operating officer of Invitation Homes, Blackstone’s single- family rental division.

Here is a reason for a so called US housing recovery. Wall Street is the buyer not Joe Public. Another splash of cold water on the US recovery thesis.

#153 Mike T. on 04.26.13 at 11:00 am

I am trying to prevent the country from going down the tubes

LOL

we don’t need soapboxers

if you want to change the world, change YOUR world

great post again Mr Turner – thank you

#154 Robert on 04.26.13 at 11:04 am

Dear Garth,

Your mind bends too easily to conspiracy theories. Is it so inconceivable that an online marketer in the mortgage space would miss a provision in the Residential Tenancies Act? Of course not. Was your first thought really that this young woman “must have been born in the far north country and raised by beavers”? The public is clearly hungry for clarity on this issue. And I bet northerners are more clever than you imagine.

Stop being such a bully and a grump. I don’t care how well you do both.

#155 Tom Vu on 04.26.13 at 11:09 am

I thought KLM was an airline.

Anyhoo , at least she is not a lawyer.

#156 Godth on 04.26.13 at 11:10 am

Everything Is Rigged: The Biggest Price-Fixing Scandal Ever
http://www.rollingstone.com/politics/news/everything-is-rigged-the-biggest-financial-scandal-yet-20130425

#157 Ronaldo on 04.26.13 at 11:12 am

http://www.bloomberg.com/news/2013-04-24/central-banks-load-up-on-equities-as-low-rates-kill-bond-yields.html

Not only are central banks loading up on pm’s, they are now loading up on equities. That should get things humming in the markets. It seems they have far too much cash sitting around collecting next to nothing. Interesting times coming for these markets. Time for the herd to jump in.

#158 Editor on 04.26.13 at 11:12 am

#115 Matt: Let me get this straight. Renter was surprised to find out post-1991 condo wasn’t covered by rent increase protections. Continues to rent.

And this was somehow a story about how terrible renting is and shilling for the real estate industry?


The Star story wasn’t about just your random renter.

This blog post is about conflict of interest, lack of transparency, and a reporter being too chummy with her sources.

And yes, it’s a scare story about greedy unregulated landlords which quotes 2 people who work deep in the heart of the mortgage/condo business, and doesn’t provide any facts to support their claims.

#159 Ralph Cramdown on 04.26.13 at 11:13 am

#147 Dean Mason

I don’t know how old you are. When I was young I used to believe the crap about Conservative/Republican governments being fiscally responsible and Liberal/Democrat governments being profligate, but then the facts got in the way of my viewpoint, so I changed it. Feel free to study this chart:

http://research.stlouisfed.org/fred2/graph/?id=GGGDTACAA188N#

Sorry it only goes back to 1980, but the ’70s were crummy everywhere.

You can add recession bars, and you can add a plot for the equivalent US and UK numbers. You can study who was in power at the time. If you’re honest, you’ll either come to the conclusion that the global economy has a far bigger effect on the budget than government’s tweaking, or that Liberals tend to pay down the debt and Conservatives tend to run it up.

It’s my view that recent conservative governments in the West have tended to cut taxes shortly after coming into power, even in a good economy. When the economy turns sour, they claim that the government needs to tighten its belt. This is actively anti-Keynesian and tends to amplify rather than attenuate the business cycle. They tell fibs about which end of the Laffer curve we’re on and mumble about tax code reform, but they generally leave office with public finances in worse shape than when they were elected. This has broadly been true in Canada, the United States and the UK.

#160 Matt on 04.26.13 at 11:17 am

As a follow up to #115, there also seems to be an assumption that for renters worried about being able to afford rent increases the natural next step is to take on a mortgage. It’s laughable.

This post is more proof, as if any was needed, that people will believe what they want to believe.

#161 Editor on 04.26.13 at 11:19 am

#110 David McDonald on 04.26.13 at 1:17 am
————————————————
I was a long time renter and NEVER heard about the lack of rent control on certain dwelling types. It would be nice if the MSM pointed this out on a regular basis, especially in the articles that every year tout the maximum that landlords are allowed to raise rent.


Tenants in older construction (pre 1991, I think) aren’t subject to rent increases (unless they agree). Landlords of newer construction (is 1992 “new” at this point?) can ask for an increase, but within the yearly cap. The key word is “ask.” Tenants can say yes (if rents are going up/they don’t want to move), no (and move), say no (and stay, if the landlord is afraid of vacancy), or negotiate. When you rent, don’t just settle in and ignore the market. Keep an eye on it so you’re in a strong negotiating position.

#162 Ronaldo on 04.26.13 at 11:19 am

#154 Robert – when KLM makes a statement on her facebook page that “they told me not to smile”, it’s quite evident that she was sucked in by the RE cartel. Now she takes the flak for these con artists. Not that hard to figure out what’s going on here. Good for Garth to reveal this clowns.

#163 World Traveller on 04.26.13 at 11:21 am

From the comments section in the story.

*****
Mexicanas
We are big supporters of Ms.McAllister and to answer your question “NO” it doesn’t bother us that she’s chief marketing officer. Why not stay focus on the topic at hand! Too much energy is wasted on needless hatred and animosity.
****

LALALA, nothing to see here! Move along! LOL

Amazing that this is not seen as a conflict of interest.

#164 Mak on 04.26.13 at 11:23 am

Its different in Guelph.

3 houses listed in my locality and all are displaying sold signs in 3 weeks. Don’t know the price though.

Houses are selling like hot cakes.

Still renting but wifey wants a house :)

#165 You Never Know on 04.26.13 at 11:28 am

“the rented Lawn Asians outside new condo sales offices”

LOL!

#166 Ronaldo on 04.26.13 at 11:30 am

http://au.businessinsider.com/canadian-banks-closing-bitcoin-businesses-2013-4

Speaking of fake. Have you bought your bitcoins yet? Seems they are getting too popular and may soon go the way of the doe doe bird if banks have their way. Guess they don’t like the competition.

#167 Spiltbongwater on 04.26.13 at 11:30 am

RIP George Jones

#168 Contractor on 04.26.13 at 11:39 am

That is messed up.

I read that article the other day and thought, poor woman. I even relayed the salient points to my wife.

Now I realize KLM’s just a sneaky, nasty piece of work.

Good on you Garth for digging this up and pointing it out. The Star, and that wretched woman, should both be ashamed of themselves. No integrity at all!

You can bet I’ll spread the word of the unethical slime at both ratehub and the Star.

#169 World Traveller on 04.26.13 at 11:39 am

To hell with the free market! If the NDP think condo rentals are expensive now, wait until condo owners take more of their condos off the rental market in response to not being able to raise rates in response to increased costs.

http://www.thestar.com/business/real_estate/2013/04/25/we_need_action_to_close_condo_rent_loophole_ndp_says.html

#170 Craig on 04.26.13 at 11:41 am

The U.S. economy is stalling which means interest rates are going nowhere except sideways and with some terms, downward.

If the US doesn’t budge we won’t. In fact, I suspect we’ll see a mortgage war start here in Canada. Banks are desperate and they want your dollars locked in and they’ll only take so much crap from the Feds about keeping rates high.

Good news is, lower rates equals higher house prices.

I might wait till pool season then sell.

#171 I am in C on 04.26.13 at 11:56 am

Re: KLM
Her Linkedin page states that she has a B. Com. Degree from Queen’s University.
So she is hardly ‘clueless’ wrt finance etc.

#172 Big Fan of this Pathetic Blog on 04.26.13 at 12:08 pm

Your example of not accepting at face value, investigating is so valuable to all of us “Feed Me!” suckers. Perhaps you should start your own public and high schools.

#173 Mister Obvious on 04.26.13 at 12:08 pm

#154 Robert

“Stop being such a bully and a grump. I don’t care how well you do both.”
————————–

You should care Robert. It matters very much “how well you do it”.

#174 my thoughts on 04.26.13 at 12:18 pm

Dear Robert at #154.. I’m always amazed that someone would come on Garths blog and actually insult him. If you don’t like what the “bully and grump” says… get off the blog. Simple concept. Thank you Garth for continuing to write and for putting up with these people. I honestly don’t know how you do it everyday.. but don’t let them silence you with their insults. Keep up the good work!

#175 Chump from the south on 04.26.13 at 12:20 pm

Big southern cities are home to the world’s most gullible chumps.

#176 Ronaldo on 04.26.13 at 12:33 pm

#171 I am In C –

”Re: KLM
Her Linkedin page states that she has a B. Com. Degree from Queen’s University.
So she is hardly ‘clueless’ wrt finance etc.”

A wise old man once said to me, “It don’t matter how much paper you have, if you don’t have the tobacco to put in it, it ain’t worth nuttin’ ”

#177 MoneyMyHoney on 04.26.13 at 12:34 pm

Toronto Star decided to edit the article

Note – April 26, 2013: This article was edited from a previous version to include Kerri Lynn McAllister’s occupation.

#178 John Prine on 04.26.13 at 12:44 pm

To hell with the free market! If the NDP think condo rentals are expensive now, wait until condo owners take more of their condos off the rental market in response to not being able to raise rates in response to increased costs.
*********************************************
If they take their condos off the market who will make the mortgage payments? Unlikely anybody could afford to..

#179 Craig on 04.26.13 at 12:44 pm

Did you guys read this from KLM:

“I thought this was wrong because we were protected under the Landlord and Tenant Act,” says McAllister, 27, who lives in a 700 sq. ft. condo near Adelaide St. and University Ave. ”

She has a 700 sq ft condo which is a bit bigger than my garage and she was going to hire a cleaning lady but can’t now because of this ungodly rent increase.

What a HOOT!

“She even mentioned they were about to hire a cleaning lady.”

You can vacuum a 700 Sq ft condo without even getting off the couch.

Moooooooooo

#180 Ronaldo on 04.26.13 at 12:45 pm

#170 Craig – ”Good news is, lower rates equals higher house prices.”

When prices of housing goes up as it has in Vancouver to the point that the average house is selling for 1 million dollars, even zero interest rates makes it unaffordable for most people to repay the mortgage.

1 milllion dollars over 25 years is $40,000/yr or $3333/mo which equates to 60% of average family gross income or 78% of net income. How do you figure that a decrease in current rates is going to have any effect on the situation in Vancouver for example?

Vancouver real estate is hooped.

#181 Marcy Berg on 04.26.13 at 12:46 pm

Thank you for calling KLM on the article. My blood boiled when I saw it and I didn’t have the nerve to do what you did. Anyway, nobody would have listened to me. Rent vs own needs to be looked at very carefully. Owning is not for everyone and nor is renting.

#182 Morgan on 04.26.13 at 12:54 pm

It took me a while to figure how an article on renting could possibly be pumping condo sales… and then I get to quote “That’s turned out to be great news for condo investors, allowing them to pass on escalating maintenance fees and other costs almost directly to their tenants.” Later on, the article is quoting from a RE pumping blog ” Realtor Andrew la Fleur calls the ability to impose rent hikes of anywhere from $50 to $5,000 a month an investors’ secret weapon.
“Wow. Let that sink in for a minute,” he says in a recent blog.”
Amazing that they managed to work that in to an article instead of, say, links to the landlord tenant act. Or perhaps, how the rental market is limited by people’s capacity to pay based on their incomes, as opposed to the RE market’s capacity based on their ability to borrow, and how that ultimately limits investors’ ability to pass on all their inflated costs.

#183 indigoblue on 04.26.13 at 12:54 pm

Great entry today. Never written to you before but I’m a huge fan.

Went to the ratehub.ca website and looked at the team. They flout that they met at Queen’s business school. I got my MBA at another school. These were the kinds of smug, arrogant, too-clever-by-half a..holes I couldn’t stand. Couldn’t wait to leave the place.

Queen’s should post their photos in the hallway. Marketers of the year. Our glorious alumni.

#184 Humpty Dumpty on 04.26.13 at 12:56 pm

You’re a fake
Iran’s multiplicity of messiahs

The authorities think that too many people are claiming to be the Mahdi
Apr 27th 2013 | TEHRAN

Iran’s economic doldrums may have helped to cause this surge in people claiming to be mankind’s saviour

Mr Ahmadinejad has called his administration “the government of the hidden imam”. Last month he told a batch of new Iranian ambassadors to consider themselves “envoys of the Mahdi”.

After his first speech at the UN in 2005, a video circulated showing Mr Ahmadinejad telling a leading Iranian cleric that world leaders had been enchanted, during his oration, by a halo around his head that had been put there by the Mahdi himself.

http://www.economist.com/news/middle-east-and-africa/21576700-authorities-think-too-many-people-are-claiming-be-mahdi-youre

#185 I See Dead Sheeple on 04.26.13 at 12:58 pm

Good to see the Toronto Real Estate Shills are trying to give our Vancouver Real Estate Shills a run for their money.

It’s your move Cam Good, Cam McNeil, Rob Regan Pollack and that Fake West Van Versailles Mansion Lister (Who it seems the client has now fired).

#186 Craig on 04.26.13 at 1:00 pm

Hi Ronald, maybe I should have excluded Vancouver from that. Then again, if that insane pricing happened in Van will it flow to Toronto?

Should I wait….hmmmm…now I’m gettin’ a woody (house horny feeling Garth refers too) thinking about a $1 Million for my house.

Time for a cold shower or better still, a cold beer.

#187 Ronaldo on 04.26.13 at 1:01 pm

#169 – World Traveller –

”wait until condo owners take more of their condos off the rental market in response to not being able to raise rates in response to increased costs.”

I suppose that would be a possibility in a hot real estate market but not today. We are going to see a huge increase in empty condos in the coming months and owners becoming reluctant landlords who will be offering incentives to renters to rent their units.

This happened in the mid 90’s where we also saw a dramatic increase in supply and condo units sitting empty and partially finished with windows and doors covered in plywood. Think it won’t happen this time. Think again.

#188 jess on 04.26.13 at 1:26 pm

huh?

How It Works: Companies Deduct Executive Compensation Costs They Never Actually Paid

excess stock option
http://ctj.org/ctjreports/2013/04/executive-pay_tax_break_saved_fortune_500_corporations_27_billion_over_the_past_three_years.php#.UXk2CCsjqCg

#189 spaceman on 04.26.13 at 1:31 pm

An ex boss asked me to his house to fix the kids computer, beautiful house on the Ocean 2-3 million to buy. Told me he rents this house? What, the man owns the company, he is worth 5-6 mill, and rents? Told me why… “the owner of this house rents to me for $2500 a month, as he doesn’t want it wrecked. I would have to pay double that in a mortgage. ” ” and this is not my dream home.” he would later buy 4 acres of prime land on a local lake and build his dream home worth 4.5 Mill.

Smart rich people rent when the price is right…

#190 Giovanni Mangiacazzo on 04.26.13 at 2:13 pm

Garth…your blog should come with a warning:

CAUTION: Sip coffee and read this blog simultaneously at your own peril!

You owe me a new keyboard, but hey, with the invaluable counsel you provide, all is even. And yeah, I’m Italian and I rent.

#191 Canadian Watchdog on 04.26.13 at 2:30 pm

#159 Ralph Cramdown

Look at gross liabilities, not gross debt. A future broken promise is just as fiscally irresponsible as wasted government spending.

#192 Daisy Mae on 04.26.13 at 2:41 pm

#107 Dean: “They also said that consumers would see some lower prices because businesses would pass on some savings from tax simplification…”

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

The BC Lyin’ Libs told us the same thing. Didn’t happen. Didn’t really think it would. Now the provincial HST is gone. And the beleaguered taxpayers are already noticing the difference.

#193 Fish on 04.26.13 at 3:02 pm

Here’s a data point for all you market watchers. Friend of mine listed her SFH near Avenue and Lawrence on Wednesday (asking 940k). No offers until next week. Received bully offer on Thursday for 1.1mm which she turned down. Crazy market is still here.

#194 elchavo on 04.26.13 at 3:13 pm

so the mortgage salesperson rents !!!!

I wonder what her peers think of that, how dare she !!!

hahahaha

and that pic of her pouting is brutal.

#195 Holy Crap wheres the Tylenol on 04.26.13 at 3:14 pm

#169 World Traveller on 04.26.13 at 11:39 am

To hell with the free market! If the NDP think condo rentals are expensive now, wait until condo owners take more of their condos off the rental market in response to not being able to raise rates in response to increased costs.

http://www.thestar.com/business/real_estate/2013/04/25/we_need_action_to_close_condo_rent_

If the condo renters don’t like the price of renting from an owner then go to another condo or apartment. Better yet if your splurging that much money to flush down the toilet then try buying the owners out. All I ever hear is how renters are ruling the world and investing their cash while the owners are going to suffer with the coming crashes. Well then shut up and stop bitching worldly investor. You are making money hand over foot while the poor soul whom has invested their hard earned cash to make the down-payment has afforded you the luxury of renting a nice place as compared to a dumpy 1960’s apartment building. Quite frankly I wouldn’t purchase one of these concrete coffins but for those that have purchased them I believe they should be able to make money on them as they see fit without government interference. It does somewhat keep the riff raff away if the prices are high. That should help to maintain a certain level of quality in the building. Well that’s my take on it!

#196 Shawn on 04.26.13 at 3:20 pm

Boundary Conditions…

Ronaldo at 180 said:

$1 million dollars, even zero interest rates makes it unaffordable for most people to repay the mortgage.

1 milllion dollars over 25 years is $40,000/yr or $3333/mo which equates to 60% of average family gross income or 78% of net income.

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

Good analysis! In engineering school zero interest would be what we used to call a boundary condition.

Hilarious that houses are unaffordable to so many in Vancouver even at zero percent interest.

The good news though is at zero percent interest, every extra dollar you pay in the mortgage will go straight to principle. So let’s see an extra $1000 in principle will reduce the length of the 25 year mortgage by ( wait for it… 1000/40,000 =) 1.3 weeks or about 9 days… Gee that would be motivating. Not!

In the old days of $100,000 mortgages at 18% interest at least the extra $1000 reduced the mortgage by 13 weeks. Between that and the interest rate there was then REAL motivation to pay it off early. And people did.

Mega mortgages at low interest are almost immune to getting paid off because each $1000 makes such a tiny dent and then you are only saving very little interest so why bother? And most people don’t and won’t bother.

Low interest rates… not such a good thing…

#197 Arshes on 04.26.13 at 3:21 pm

23 Saint Herb on 04.25.13 at 8:12 pm

But what stops everyone from raising the rents to match the high house prices. Once one landlord raises the price they all seem to follow. I have seen houses that have not rented for months, get relisted for a higher rent instead of a lower.

———————————————————
It gets relisted at a higher rent becuase with no renters so far, he/she needs to make up for their losses so far. Thats probably why they raised it, they’re probably bleeding money and cant afford to lower it (but in realty with no renters they cant really raise them too.)

#198 Dr. Hoof - Hearted on 04.26.13 at 3:21 pm

EA closing Vancouver studios PopCap and Quicklime in latest round of layoffs:

http://business.financialpost.com/2013/04/25/ea-closing-vancouver-studios-popcap-and-quicklime-in-latest-round-of-layoffs-report/

After a new round of organizational restructuring was announced by video game developer Electronic Arts, Inc. earlier Thursday, it has been suggested that PopCap Vancouver and Quicklime Studios — also based in Vancouver — will be shutting down.

The layoffs are just the latest in a series of job cuts for the embattled games maker, following the dismissal of an undisclosed number of employees at its Montreal game studio in its latest round of job cuts earlier this month.

etc. etc.

#199 Snowboid on 04.26.13 at 3:23 pm

In the meantime, US mortgage rates are down:

15 yr fixed – 2.61% (Cdn rates 10 yr – 6.75%)
30 yr fixed – 3.40% (Cdn rates 25 yr – 8.75%)

Not to mention portions of the interest on principal residences can be used as a tax deduction.

So in comparison…

A $ 200K home in Phoenix, with 10% down – 25 yr fixed @ 3.4% – monthly payment $ 889.21.

Based on the 62% difference quoted earlier (it’s more than that if you look back to 2010) that would make the Canadian equivalent about $ 324K.

A $ 324K home in say Kelowna (BTW not a single SFH at this price comparable to Phoenix), with 10% down – 25 yr at 8.75% – monthly payment $ 2,366.

I realize there are probably deals available to get a better rate in Canada, but it still is an interesting difference.

But a $ 324,000 SFH home in Kelowna would likely sell for $ 130,000 in the better areas of Phoenix.

We will see how the Kelowna RE market performs in the next few months, in the meantime we are ever patient renters watching the prices drop, and happy for our generous owner.

#200 Steven on 04.26.13 at 3:56 pm

Renting is usefull if you can get a good deal.

#201 My thoughts on 04.26.13 at 4:05 pm

Saw a couple of homes and people are going over the top with Finishes to sell these homes. Certainly sets the bar. I am sitting back and reminding myself to just wait. Not only are the listing more beautiful but the asking prices are slowly dropping. When they say we are accepting offers on this day… I say thank you and see you later. Not interested in bidding wars.

#202 Craig on 04.26.13 at 4:14 pm

#193 Fish on 04.26.13 at 3:02 pm

Here’s a data point for all you market watchers. Friend of mine listed her SFH near Avenue and Lawrence on Wednesday (asking 940k). No offers until next week. Received bully offer on Thursday for 1.1mm which she turned down. Crazy market is still here.

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

Is Vancouver pricing insanity hitting Toronto before we have a mini correction next year?

Me thinks so.

#203 Larry B on 04.26.13 at 4:15 pm

I read a lot of comments but none that really address the issue which is condo rental properties built after 1997 not being covered in the RTA. I don’t think any reasonable person would disagree with paying/receiving fair market value for a rental property but as soon as the economy starts to really shift (or slide) downward and investors/speculators get nervous how are both landlords and tenants protected? A renter could theoretically be forced out of 5-6 different condos in one year without any kind of justification (landlord must give 2 months notice). The tenant has no visibility to rising maintenance fees and is in no position to challenge a perceived arbitrary rent increase. Letting the market set the price can take years and while landlords by nature are assuming the risk (and have the most to gain financially) it’s tenants that will lose by having no protection.

There’s a reason there are rent controls. Just like everyone needs to know the rules before playing a board game. It’s a situation that cries for some kind of regulation hopefully before it gets messy. Even the RTA needs another look as it’s seriously outdated.

Also, there’s nothing luxurious about living in a 400 sq ft condo facing another building. People NEED to live downtown plain and simple – that will never change.

#204 Smartalox on 04.26.13 at 4:35 pm

I hear all these stories of real-estate related manipulation of the media both in Vancouver and Toronto (and I am sure in all major markets) and I wonder about the value propositions in these industries.

I’m curious because I work in a profession bound by codes of ethics. I make a good wage, but because I’d be barred from practice if I act unethically, the price of my integrity is very high.

But if, like KLM, your job is unburdened by ethical concerns and you’re foolish enough to use your own name / persona to do it, what’s that worth in terms of dollars, and is it profitable?

#205 happity on 04.26.13 at 5:04 pm

In USA GDP report, real final sales were only up 1.5% vs. last quarter 1.9%. Inventory has been building?

Personal income and personal savings down, consumers make up 65% of the economy.

Meanwhile world central bankers continue to buy stocks and talking heads keep recommending investing in the stock market.

#206 Victor V on 04.26.13 at 5:13 pm

If you dislike AAPL, don’t click here:

http://ca.finance.yahoo.com/q/bc?s=AAPL&t=5d&l=on&z=l&q=l&c=

#207 Shawn on 04.26.13 at 5:19 pm

Consumers make up 65% of the economy.

Well OH NO!

You mean 65% of what is produced (GDP) is consumed? But wait, why else would we produce things except to consume?

#208 MarvinW on 04.26.13 at 5:23 pm

There is some other good information from the Toronto Sun on this radical tenant group and their ties at
http://www.torontosun.com/comment/columnists/sueann_levy/2010/11/18/16209761.html

It you check out this website
http://www.causepimps.ca/FMTA/fmta.html and in particular
http://www.causepimps.ca/FMTA/metrotenants.html

you will find out that the Federation of Metro Tenants Associations was founded by the Communist Party of Canada and is closely interrelated to OCAP, the Ontario Coalition Against Poverty known for the riots they organize in Toronto.

#209 Craig on 04.26.13 at 5:53 pm

Lets see, the Central bankers, worldwide, bought more gold last year than they have since 1964 and NOW they’re buying stocks in the equity markets like there’s no tomorrow.

Look what happened to gold when they stopped buying…what do ya think will happen in the equity markets when they move to Bonds or whatever the flavour of the year is……Real Estate maybe …. yikes.

Now…

Picture a plough horse working a field. The plough horse is the US economy, now throw a 500 pound weight around his neck, which is the US Debt.

The farmer whips him yelling pull, pull, then he constantly adds more weight (debt) to his neck.

Yes the horse moves forward, slowly but as the weight continues to increase with every step, guess what happens?

The farmer tells everyone…my horse is getting stronger and doing more work…but is that reality or just the farmer trying to sell his horse.

I’m thinking glue factory

#210 jess on 04.26.13 at 6:23 pm

Alleged ringleader in $12-million mortgage fraud ordered to stand trial
By Daryl Slade, Calgary Herald

CALGARY — The alleged ringleader of a $12 million mortgage fraud involving 22 Calgary properties was ordered to stand trial last week on more than a dozen charges…obtain mortgages that far exceeded the value of the properties for sale using inflated home appraisals manufactured by the suspects, police said.”
http://www.amba.ca/private-lender-forum-updates/alleged-ringleader-12-million-mortgage-fraud-ordered-stand-trial

not related to the alleged $120-million mortgage fraud that is the subject of a lawsuit launched by the Bank of Montreal. The bank named hundreds of respondents in its suit, which claims it lost $30 million in a series of fraudulent transactions involving 200 properties across the province.

#211 live within your means on 04.26.13 at 6:58 pm

#114 daystar on 04.26.13 at 1:58 am
#62 Dean Mason on 04.25.13 at 9:41 pm

Great retort Daystar. Dean attacked me for replying to one of his posts a day later. I go to bed very early, watch some TV & fall to sleep, wake up many times during the night & read the posts on Garth’s previous day’s blog as well as news sites online. I don’t comment on Garth’s blog daily & don’t want to get into a verbal fight with anyone.

#212 jan on 04.26.13 at 9:58 pm

DELETED

#213 kwalitykontrol on 04.27.13 at 7:37 am

It is really unfortunate that she is the one they picked to be the focus of the article, because it makes this law seem fake or that it only affects fancy downtown condos. This is an Ontario wide law that affects everyone. I’m sure many landlords only increase rents by the set percentage because they don’t know they can do whatever they want if their apartment/s was occupied after 1991. I think a lot more people will be affected by this law soon as landlords in Ontario learn more. I understand a landlord’s desire to raise the rents above the guideline for legitimate financial reasons; however, this law as it stands allows a landlord to easily discriminate. The landlord does not have to get permission from the LTB to raise rent above the guideline. If a tenant feels the increase is unfair the LTB will not even listen to their case. I know, I have asked. If the landlord will not negotiate, the tenant can pay it or move. That’s it. This law sets no limit on the increase amount at all, and allows a landlord to increase rent for one tenant and not for another. The law allows the landlord to raise a tenant’s rent by $1,000,000 if they want, force them out financially, then bring the rent back down to any amount for a new tenant. It also allows the landlord the ability to refuse transfer to a cheaper unit in the building. If you move into an apartment and the landlord finds out you’re gay and he doesn’t like gay people, he can use this law to force you out financially. He does not need to show any reasoning to the LTB for the increase. He is exempt, that is all the law sees. If you have maintenance issues that are not being dealt with, the landlord can use this law to force you out financially if he doesn’t want to deal with them. Hopefully when more people start receiving these increases all around Ontario, they will see this is not a scheme to sell mortgages. This is a real law with no rights for tenants that can affect everyone.

#214 renting and waiting no more on 04.27.13 at 10:15 am

This is a great piece – thank for putting it together.
Nefarious ‘conspiracy’ revealed.
But wait.. conspiracies don’t happen and people who claim there might be collusion between interested parties and the press in order to create and maintain a narrative are nutters.

Anyway, great piece.

#215 KLM on 04.28.13 at 1:14 am

This is funny…

“Why is it that the CMO of an online mortgage brokerage firm is a renter? Does she not believe in her own product? Could be a bit embarrassing when the boss finds out …”

#216 Holland Marshall on 04.28.13 at 10:51 am

I saw both articles in the Toronto Star and I was taken back by the different slant put on the same subject on the second day.

I figured something didn’t seem right.

I complained to Susan Pigg earlier this year about the praise she heaped upon a rental building, The Lord Dufferin” that did not agree with all the comments on the Internet by the tenants who live there. I didn’t get a reply.

#217 Sunday Morning Dump: Old Video Games - Financial Uproar » Financial Uproar on 04.28.13 at 1:09 pm

[…] next is Greater Fool, who takes down a mortgage professional who works at a certain rate comparison website. It would take an additional 100 words to explain the whole thing, just go read it. It’s an […]

#218 Corey Zaal on 04.28.13 at 1:47 pm

It doesn’t matter where you live, tenants will always complain that landlords are taking advantage and landlords will always complain that they can’t afford to continue renting at current prices.

In areas that do not implement rental control, the reality is that all rental prices are fair. Arguing that market value is unfair is just stupid. Prices are set by supply and demand (remember Economics 101).

If rental prices are too low in an area landlords will sell their rentals to new owners who will likely occupy the homes themselves and the rental supply will decrease until rental prices rise (Yes, there are apartments that can’t be strata title and sold but they are competing with condos, suites, and homes that can be).

If rental prices are too high you will see landlords buying up homes until the supply increases and prices go down. You will also see an increasing number of tenants choosing to buy decreasing demand and prices.

On a more simple note, if you’re a tenant an you feel the price is too high look elsewhere. That’s your right. If your a landlord and you can’t cover your costs at current rental prices you have made a bad investment.

#219 Garth Turner vs. Kerri-Lynn McAllister regarding Toronto Star article | canada.com on 04.28.13 at 3:39 pm

[…] Yet a reference to the profession of Kerri Lynn McAllister — who claimed to be surprised to learn that the $1,625 rent she is paying on a downtown Toronto condo with her boyfriend would soon be increased by $150 — was only added to the online version of the Star story after former Conservative MP Garth Turner drew attention to it. […]

#220 Rent control rules in Ontario | MoneySense on 04.29.13 at 11:18 am

[…] are well within their legal rights. (For a great take on the situation read Garth Turner’s blog post.) And with more and more rental units coming on to the market well after the Oct. 31, 1991 cut off, […]

#221 End of rent control - Realty Locators on 04.29.13 at 4:21 pm

[…] are well within their legal rights. (For a great take on the situation read Garth Turner’s blog post.) And with more and more rental units coming on to the market well after the Oct. 31, 1991 cut off, […]

#222 End of rent control - Your Realty Agent on 04.29.13 at 5:16 pm

[…] are well within their legal rights. (For a great take on the situation read Garth Turner’s blog post.) And with more and more rental units coming on to the market well after the Oct. 31, 1991 cut off, […]