Woody

tree

There are almost 14 million households in Canada. Four million rent. Almost ten million own. Of the owners, 37% have no mortgage. That means about 45% of the entire population owes money on real estate.

This is why the new Bank of Canada boss, Stephen Poloz, is in such a pickle. Raising rates would be like taking crack from, well, you know…

But what if he doesn’t, keeping the cost of a mortgage at the historically-stupid level of 3%?

BeeMo has an answer to that. The bank’s latest poll shows an astonishing 57% of homeowners in the GTA plan to buy a new home within the next five years. This is an even more incredible stat when you consider 76% of people in the godless sprawl of urbanity already have one. And in doing so, they’ll be faced with at least 5% commission on their existing houses, plus double land transfer tax. Since it’s unlikely most of them dream of downsizing, you can probably count on more mortgage debt. Masses more.

Poloz therefore comes into this new job, taking over next week from rock star banker Mark Carney, at about the worst possible moment. Sir Mark cried wolf about higher interest rates so many times that nobody’s listening anymore. The debt piggies just keep on chowing down.

What other impact do cheap rates have, when combined with 5%-down, government-insured mortgages? Ask Vince.

I’ve been reading your blog for the last few weeks and have found it very insightful up to this point. I had a question involving my own personal situation and was hoping you could shed some light on it. I purchased a condo that was yet to be built about 12 months ago. It was a project launch in Edmonton and a friend suggested I check it out. I expect it to be built in about 1 year from now and based on what you’ve said, I feel like I may have set myself up for a sticky situation. I currently have 5% down as a deposit and cannot sell it until the place has been built.

I don’t plan on throwing all my money into the place since I’ve come to realize people overdo paying off their homes with basically no liquidity in other assets and refuse to fall into the same trap. However, I’m not sure how I would proceed once the place is up and ready to go? Would you suggest finding a way to sell it once it’s up? Or maybe minimizing down payments to retain liquidity and look to see before things get really bad? Please help me as I do not understand this well.

See what I mean? A guy wanders into a sales office cuz his buddy suggested it, and walks out with a futures contract on a condo. Hardly anything down. No perceived downside. And delivery of an uncertain product into an unknown market at an undetermined finance rate. Suddenly an unsophisticated, inexperienced investor’s been sold a product worth hundreds of thousands of dollars, reeking of risk.

This is why real estate has a troubled future. How could it be otherwise?

Banker Poloz realizes this. But we also know he’s a political appointment, hand-picked by the same guys who thought Mike Duffy and Pamela Wallin were great ideas. Poloz has central bank experience, but as head of the Export Development Corporation (his most recent job) he’s been a paid pragmatist for the last 14 years. Given the fact the next federal election is slated for October 1st, 2015, is Steve the guy likely to stop the madness around us, making those millions of house-horny Torontonians think twice about slithering into more debt?

Besides, he’s Ukrainian. And we all know what they think of real estate.

FROM THE UK: Why Mark Carney's Canadian 

success story is about to fall apart.

THree amigos

144 comments ↓

#1 T.O. Condos 4lease and 4sale -density maps on 05.27.13 at 9:27 pm

http://recharts.blogspot.ca/2013/05/to-condos-for-sale-heat-map-as-of-may-25.html

http://recharts.blogspot.ca/2013/05/to-condos-for-lease-heat-map-as-of-may.html

#2 T.O. & GTA bidding wars debunked May 27 on 05.27.13 at 9:28 pm

http://recharts.blogspot.ca/2013/05/to-sfh-bidding-wars-debunked-may-27.html

http://recharts.blogspot.ca/2013/05/gta-sfh-bidding-wars-debunked-may-27.html

#3 T.O. Bubble Boy on 05.27.13 at 9:30 pm

I wonder if Goldman Sachs has short positions on the Canadian economy? With ex-GS guy Carney now gone, maybe they trigger a run on Canadian Bonds, and force this sucker to implode regardless of what Stevie H says?

#4 wendi1 on 05.27.13 at 9:30 pm

And then what happens to Vince? Tell me you had some advice for him, not just “you’re doomed”.

#5 Bill Clinton on 05.27.13 at 9:31 pm

DELETED.

#6 visorman30 on 05.27.13 at 9:33 pm

Even though I do not share the same situation Vince is in, I did wonder what your advice is regarding his situation.

I agree that how he came about his situation is interesting but I wonder about the solution there.

#7 Unfunny Tom on 05.27.13 at 9:34 pm

Garth, I want to diversify my limited portfolio with preferred shares. Can I do this through my basic self directed brokerage? How do I identify and understand what I’m buying into? Help

If you don’t know what you’re doing, don’t. — Garth

#8 Bigrider on 05.27.13 at 9:35 pm

I have no idea what Ukranians think of real estate Garth and neither does anyone else, but EVERYONE knows what Italians think of it.

Oh, yes and Vince is an Italian for sure.

#9 Smoking Man on 05.27.13 at 9:40 pm

Black sheep, all the answers, knowledge, understanding all can be learned by watching this 90 mi me opera about 50 times… Clues props, songs everywhere,

It’s code how the game of monopoly gets reset. You won’t seeit till the 20th viewing, by should know all the tunes.

The dogs on here won’t even watch it once…

SunTuz… Know your enemy….

https://www.youtube.com/watch?v=AYKL-eS-PKs&feature=youtube_gdata_player

#10 Chickenlittle on 05.27.13 at 9:41 pm

My friend did the same thing. She borrowed the money from her sugar daddy for the deposit, and then had to come up with another crazy amount of money within two years. She had no idea how she would pull all of this off of course!

All of that trouble for 600 sq feet. WHY?!?

#11 Spiltbongwater on 05.27.13 at 9:43 pm

I actually don’t know what Ukranians think about real estate. I am guessing that it is the oppisite of if we had a Chinese Bank of Canada boss.

#12 The Bear on 05.27.13 at 9:46 pm

#7 Unfunny Tom

TSE CPD

#13 blase on 05.27.13 at 9:46 pm

What do Ukrainians think about real estate?

I know they like Easter eggs.

#14 Sideline Sitter on 05.27.13 at 9:49 pm

I feel like crack addict sometimes… constantly looking for a fresh supply (of listings). Supply is tight. I want more supply.

#15 torontorocks on 05.27.13 at 9:51 pm

The ukrainians got burned in a real estate market boom that lasted about 4 years and imploded. Add to that was that real estate was priced in US dollars, wihich resulted in a ukrainian currency appreciation as foreigners popped in.

Check it: http://www.globalpropertyguide.com/Europe/Ukraine/Price-History

Garth, REAL ESTATE IS NOT MOVING IN TORONTO.

#16 Party On Garth on 05.27.13 at 9:53 pm

@ #7 unfunny Tom

You should probably get help, but check out symbol ZPR on the TSX. Laddered is the way to go.

#17 Tom Vu on 05.27.13 at 10:09 pm

DELETED

#18 Radioman on 05.27.13 at 10:09 pm

If Poloz has every reason to keep rates stupid low until the next election then the party may carry on for another year or two. Will the bond market force his hand before then?

#19 Mark Onyschuk on 05.27.13 at 10:10 pm

Hey, I resemble that comment :)

My Ukrainian grandfather went from a job on the railroad to wealth as result of, I surmise, the boomers getting into real estate. Myself? No way – I rent and rent even when I can afford better. The money I have is better spent elsewhere.

#20 valleyrenter on 05.27.13 at 10:11 pm

Garth, good call on the price of “stuff” coming down. Chrysler dealership in Maple Ridge touting that if you buy a new truck from them they’ll throw in a new Dodge Dart. 2 for 1 sale they are calling it.

#21 economictsunami on 05.27.13 at 10:13 pm

Flaherty continues to tighten national policies, which he made far too loose, coupled with BOC easy credit to match.

Too much flammable material added to an abundance of far too much accelerant, is a situation that’s hard too bring under control.

As everyone is aware, macro policy impacts micro markets very differently.

Soft landing is not something a national policy flip flop can deliver…

#22 Something on 05.27.13 at 10:15 pm

I can tell you what Ukrainians think about real estate. I knows post USSR mentality very well. Ukrainians love real estate. You should not fear this. What you should really fear is this article: http://www.bloomberg.com/news/2013-05-27/flaherty-says-he-wishes-canada-housing-short-sellers-bad-luck.html
All speculators and big hedge funds just want to hear exactly that from Mr. F. If he will try to intervene somehow and that’s exactly what big guys need. Remember September 16, 1992 and what George Soros did that day. So … history always repeats itself. It will not be a currency war. it will be what ever has been shorted already. Mr. F. has not enough resources to fight against so much speculative money. Good luck to him. I hope he is not going to fall into this trap, but anything can happen.

#23 Canadian Watchdog on 05.27.13 at 10:24 pm

This is why if you own a GTA presale or assignment, you should be worried. Chart

#24 Mark on 05.27.13 at 10:25 pm

The ‘market’ will raise the rates for the BoC governor, by expanding lending spreads against collateral that is in oversupply (such as residential real estate, and even commercial real estate lately). The BoC governor doesn’t need to be obsessed with trying to target a specific bubble when the ‘market’ already has a mechanism, via spreads, to accomplish such.

However, it certainly would help if the CMHC would take a hike and stop putting the GoC’s ass on the line in suppressing spreads on subprime mortgages. The CMHC is now a guarantor of $900B worth of subprime debt.

#25 Inglorious Investor on 05.27.13 at 10:26 pm

#138 TEMPLE on 05.27.13 at 3:58 pm

“Try getting some information from actual climate change science, not neocon propaganda.”

Not neocon propaganda. History. And there are plenty of scientific studies on both side of the argument.

#26 geogar on 05.27.13 at 10:27 pm

My most recent credit score indicates that I am above the rating of 57% of Canadian consumers. Mortgage not included. I am by no means well off… far from it!!! Now if this report holds any water. We are indeed in for some rough rowing.!

#27 Bob Dog on 05.27.13 at 10:27 pm

Will Flaherty and Carney ever be held accountable for what they have done to the standard of living of young Canadians. Will they ever be treated like the financial terrorists that they are?

#28 Sebee on 05.27.13 at 10:28 pm

I saw a house in the hood that was listed for $950k today, about twice what comparable houses sold for 6-7 years ago, and for just a bit I thought it was a decent deal. It made me wonder if the jacked prices shifted out preceptions. Strange to consider a 950k home with 13×10 master bedroom a good deal.

#29 DR. WAYNE on 05.27.13 at 10:31 pm

I’m Ukrainian … tell me what I think of real estate … please …

#30 Woody — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate – The Affluent Boomer on 05.27.13 at 10:31 pm

[...] via Woody — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate. [...]

#31 bah on 05.27.13 at 10:33 pm

What do Ukrainians think of real estate?

#32 Martin Lazi on 05.27.13 at 10:37 pm

#8Bigrider on 05.27.13 at 9:35 pm

as always good one. let me guess you are of an italian parents. thats why you understand it correctly

cheers

#33 Inglorious Investor on 05.27.13 at 10:38 pm

#151 Bungalo fever on 05.27.13 at 6:00 pm
“Bungalo’s are the next big investment!!!!”

When my wife and I built our house 16 years ago we decided to build a bungalow. At the time two-stories were the standard and all the rage. But I figured: with an aging population, bungalows would one day come back in style in a big way (old people hate stairs), raising the relative value of our home.

Next big residential reno boom business? Elevators.

#34 Jon B on 05.27.13 at 10:42 pm

I’m in that 37% of home owners that don’t have a mortgage. After years of following the story of cheap and abundant debt, I am wondering if perhaps I’ve been the fool all along. Perhaps my concept of debt is old fashioned. Maybe taking on massive debt that will never actually be repaid is in fact a sustainable lifestyle given these low rates and the possibility they’ll be low for the long term? Maybe, just maybe, I need to start researching how to live my life beyond my means to increase my overall happiness and satiate my thirst for unlimited materialistic consumption. Maybe having two houses, a small house keeping staff and a new luxury car every two years is the way to go if the bank will let me get away with it? Could this be the plan behind all those folks that do already arrange their personal finances in this manner? Am I late to the game? It’s been stated before on this blog that we are in uncharted territory in both house prices and debt loads. It seems to me debt has no negative consequences while rates remain low.

#35 Kris on 05.27.13 at 10:44 pm

I don’t get what you’re implying, Garth. The Ukranians should be wary of housing. Yet, you’re saying he’s likely to not rock-the-boat too much because of impending elections.

#36 what bubble? on 05.27.13 at 10:50 pm

He will be as hopeless as the others on the photo: talking too much doing nothing.
Under globalization the economic processes need to be synchronous. Canada has to be align with others, devaluating its currency.

#37 Smoking Man on 05.27.13 at 10:56 pm

On the porch wine’d up, watching the slaves walk by. Headphones on listening to queen. Pondering have I made a mistake raising my kids as artists, free thinkers, middle finger to the machine, my first born marring on saterday,

She’s not taken his last name… I brought up the subject of marriage enulments, hack into her pc, number one search on Google. Ha fortune hunter…. Ha. My son is about to get schooled by a smoking woman.

Will I stop it, no….. Let him get learn, 3 weeks after his heart gets broken…. I will into him into the dark side of pay as you play…..

Then maybe he will get back to what he was born to do. Make music… Rather than a carrier as a door to door sales men selling alarm systems, not that there is anything wrong with that..

#38 Hudson on 05.27.13 at 10:56 pm

Where did you find the 4 million renters number Garth?

CAAMP report. — Garth

#39 lee on 05.27.13 at 10:57 pm

#34 Jon B
You are right, you totally missed the boat. People in the last 10 years were able to quickly make more money than anyone could possibly save in their life times through property investing. Easy money is probably gone for now, until they lower interest rates some more.

I am moving in a new home soon. 850k. i don’t mind market dropping so i can upgrade to a current 1.5MM one

#40 Smoking Man on 05.27.13 at 10:59 pm

#27 Bob Dog on 05.27.13 at 10:27 pm
Will Flaherty and Carney ever be held accountable for what they have done to the standard of living of young Canadians. Will they ever be.

Not till you young treat then like a hockey player who’s just cross checked you in the teeth…

#41 One more on 05.27.13 at 11:05 pm

Oh those Ukrainians…
They always think quite opposite to what some other Ukrainians think.
And I am Ukrainian too. So I disagree with them :0)

#42 Martin Lazi on 05.27.13 at 11:06 pm

Besides, he’s Ukrainian. And we all know what they think of real estate.
—-

You mean Canadian, with Ukranian/Sovieti Union herritage?

#43 PermaBear on 05.27.13 at 11:14 pm

BullHunks, Ukranians from Edmonchuk, as they are affectionately known, do love real estate. Better yet, if it is in the form of acres of prairie farmland.

#44 Dr. Hoof - Hearted on 05.27.13 at 11:15 pm

#29 DR. WAYNE on 05.27.13 at 10:31 pm

I’m Ukrainian … tell me what I think of real estate … please …

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

This is good….potatoes, perogies and coloured eggs is the cure for what ails you.

#45 Canadian Watchdog on 05.27.13 at 11:18 pm

About that GDS ratio…

Canada Home Price To Single Income Ratio 1953-2010 Chart

Canada Divorce To Marriages Ratio 1926-2008 Chart

The Phoenix – Jun 28, 1967 – Parliament Hears Proposals For Divorce Law Overhaul

#46 Wise Guy on 05.27.13 at 11:18 pm

If you want to know what Ukranians think of Real Estate, take a walk around Bloor West Village in Toronto….lots of Ukranians around there that LOVE their homes!

#47 Vancouver SFH heat maps comparison on 05.27.13 at 11:21 pm

This is in May
http://recharts.blogspot.ca/2013/05/vancouver-asking-price-heat-map-as-of.html

This is in March
http://recharts.blogspot.ca/2013/03/vancouver-houses-asking-prices-heat-map.html

#48 Koshy Alex on 05.27.13 at 11:29 pm

Sharing something I noticed about a listing in my area, MLS# C2646703, 610 Van Horne, was listed some weeks back at 699 K and you were able to search it on MLS by the street name Van Horne, now if you search by Van Horne this particular property won’t come up in MLS, made a google search for the property and now it comes up with the price $749,900 !!!

Did not see anyone checking out the house during the last open house, but now the location details is gone in MLS and price has gone up !!!

The property is in the market from last year, there is even an youtube link by the previous broker century 21 who listed it for 799,000

http://www.youtube.com/watch?v=kuGm2xMM8xY

#49 Ken R on 05.27.13 at 11:31 pm

#20 valleyrenter on 05.27.13 at 10:11 pm
Garth, good call on the price of “stuff” coming down. Chrysler dealership in Maple Ridge touting that if you buy a new truck from them they’ll throw in a new Dodge Dart. 2 for 1 sale they are calling it.

Does that deal include the 3.95% for 96 months advertised on the website? It wasn’t long ago, that 60 month financing was rare. Car makers are desperate for sure.

#50 Tom Vu on 05.27.13 at 11:37 pm

#17 Tom Vu on 05.27.13 at 10:09 pm

DELETED

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

Not sure….maybe get holy water

“DELETED” in my native dung = Censor wants to be Mayherr of 416 and other Biblical hell holes

#51 Carpe Diem on 05.27.13 at 11:37 pm

My wife was born in Soviet-Ukranian. Her mom loves real-estate in Richmond, BC. She bought there even after loosing 100K in Lions Bay, BC.

You can’t cure stupid or addicts.

My wife understands value investing. We rent a Tudor castle with a soccer field, as a backyard, in Ottawa. She understands (now) it is cheaper to rent this lifestyle and profitable to invest elsewhere.

The neighbors in our age group sure have the house, the boats and the cars … but all seem stressed in their finances. We rent, I have an old car and the wife has a Dodge Caravan and my kids have RESPs … but heating this Mansion is expensive … time for a change …

The wife is now on the lookout for a property on the Ottawa River so we can have daily and easy access for our Kayaks … renting of course.

#52 Smoking Man on 05.27.13 at 11:37 pm

https://www.youtube.com/watch?v=2Xnd4hVDhwA&feature=youtube_gdata_player

The machine in a chics voice

#53 Vlad on 05.27.13 at 11:37 pm

#46: that area is not so ukrainian anymore. Like most “cultural villages” in the city, we were priced out and migrated to Mississagua.

Anyways. Ukrainians like vodka more than real estate.

#54 Cory on 05.27.13 at 11:38 pm

#27 Bob Dog on 05.27.13 at 10:27 pm
Will Flaherty and Carney ever be held accountable for what they have done to the standard of living of young Canadians. Will they ever be treated like the financial terrorists that they are?
—————

Nope never. Carney is leaving Canada with people at record high debt levels, a housing bubble because of low interest rate policies which were originally an “emergency”, and a slowing Canadian economy, but yet he is praised like he is the Messiah!! hard to believe. He is definitely a smart guy but does not deserve the praise he gets that is for sure.

If people, including realtors who think they’re financial geniuses after taking some weekend warrior real estate course, knew how money worked, there would be no housing bubble like there is. If people knew that house/asset prices and interest rates are inversely related, there would be no housing bubble.

Instead we live in a world of bloated housing and vehicle prices because of stupid people who can only understand monthly payments. Savers get punished and are forced into riskier positions so their cash doesn’t get chewed up in negative real rates which is exactly what the financial geniuses want. They want you to spend your cash and buy things, or dump it into the stock market to float it and push it higher. This is fine until the next crash. There will be one, just not sure when. Could be several years away.

So because of people pigging out on debt, they are praised like they are financial geniuses while savers are obliterated. Makes sense to me. See ya Mark.

#55 Cici on 05.27.13 at 11:38 pm

This is the most hilarious “screw you all” post ever.

So, obviously this ridiculous game is slated to go on for a another few years before it finally implodes big time and brings us all down with it.

Alas, there’s never been a better time to buy a condo!

#56 Herf on 05.27.13 at 11:59 pm

In today’s second photo of the three dudes in suits, which person is Larry, which is Curly and which is Moe?

#57 Min In Mission on 05.28.13 at 12:01 am

One thing that “cheap debt” has made the vast majority of Canadians very good at, the newest game show, “Living Beyond Your Means”. Sponsored by TNL@TB.

Problem is, most don’t realize what the consequences are. Or, how to measure the winner/loser.

#58 Andrii on 05.28.13 at 12:19 am

I am Ukrainian . Real estate here is PS, and goes stetp to step like Ukrainian six years ago.My house there down 60% and still dropping .It is my opinion , all my Ukrainian friends here in AB
jumped to RE, and look at me and my unsold house in Ukrain with pity and understanding.

#59 Vangrrl on 05.28.13 at 12:20 am

‘Why Mark Carney’s Canadian Success Story might be about to fall apart’ in the Uk’s Spectator. Google it. I’d post link but am on my phone.

#60 Kate on 05.28.13 at 12:30 am

Poloz is cute

#61 Patiently Waiting on 05.28.13 at 12:55 am

Combined sales of “single family homes” for the Greater Vancouver Real Estate Board & the Fraser Valley Real Estate Board for the last 30 days are as follows:

Year Sale of SFH’s

2013 969

2012 2056 (2013 sales are 53% lower than this)

2011 2510 (2013 sales are 61% lower than this)

2010 2300 (2013 sales are 58% lower than this)

2009 2599 (2013 sales are 63% lower than this)

2008 1918 (2013 sales are 49% lower than this)

Despite what the main stream media is telling people, the real estate boards own computer data demonstrate that sales are currently still trending significantly lower than previous years, as we move further into the 2013 year.

Cheers
pw

#62 Dean Mason on 05.28.13 at 12:57 am

Poloz will keep the low interest rate party going.The bond market might bump up bond yields by 50 to 75 basis points or 0.50% to 0.75% over the next 2 to 2.50 years.This means a 5 year fixed rate mortgage might reach 3.60% to 3.85% at most.

#63 Davod on 05.28.13 at 1:15 am

Carney is like the comedian with the great sense of timing, he knew when it was time to leav
Risky mortgage debt will not be saved by emergency interest rates.

#64 mark on 05.28.13 at 1:26 am

Doesn’t his son look cute in his little suit?

#65 Ronaldo on 05.28.13 at 1:40 am

At first glance I thought that was a picture of Abbott and Costello.

#66 Martin Lazi on 05.28.13 at 2:05 am

jimmi you r to much. no one cares have my word. i got 2 kids and im only 29. how much i make?@@ you know it

#67 Peter Hashov on 05.28.13 at 2:14 am

>>Besides, he’s Ukrainian. And we all know what they think of real estate

I doubt that you have even been to Ukraine.

#68 Bigrider on 05.28.13 at 7:16 am

#32 Martin Lazi-

yesa you correct..papa, froma de olda country.. he’sa say dat da realastata …de prezo she alwaysa go upa .

#69 Andriy on 05.28.13 at 7:38 am

Ramshackled ?!

#70 the real Kip on 05.28.13 at 7:56 am

Interest rates will not rise in this country until they go up in the states and that is not happening in the near future.

Five-year mortgage rates at the major banks have just risen, as I wrote. — Garth

#71 fancy_pants on 05.28.13 at 8:10 am

got this song in my head, not sure why.

Three blind mice. Three blind mice…

#72 fancy_pants on 05.28.13 at 8:13 am

#59 Vangrrl, here it is.

http://www.spectator.co.uk/features/8915931/why-mark-carneys-canadian-success-story-may-be-about-to-fall-apart/

Hail to the new Caesar.

#73 jess on 05.28.13 at 8:18 am

http://www.justice.gov/opa/pr/2013/May/13-civ-606.html

ISTA Pharmaceuticals Inc. Pleads Guilty to Federal Felony Charges; Will Pay $33.5 Million to Resolve Criminal Liability and False Claims Act Allegations

ISTA’s parent company, Bausch+Lomb, Incorporated (B+L), has agreed to maintain a Compliance and Ethics Program

#74 World Traveller on 05.28.13 at 8:29 am

#58

Here is the Spectator article. Pretty well researched and to the point.

http://www.spectator.co.uk/features/8915931/why-mark-carneys-canadian-success-story-may-be-about-to-fall-apart/

#75 jess on 05.28.13 at 8:40 am

fraud costs us all
Ex-McGill hospital boss Arthur Porter arrested in Panama
Onetime head of spy-agency watchdog accused of fraud in $1.3B Montreal mega-hospital scandal

#76 Spiltbongwater on 05.28.13 at 9:02 am

Five-year mortgage rates at the major banks have just risen, as I wrote. — Garth

And the feds have also increased interest rates by 0.9% in July 7 2012. Don’t forget about that one Garth.

#77 frank le skank on 05.28.13 at 9:07 am

#59 Vangrrl on 05.28.13 at 12:20 am
Good article

#78 Steven on 05.28.13 at 9:16 am

I think the real issue in respect to interest rates is not to keep the real estate market from going titters but to keep heavily indebted governments from hitting the wall too soon. Houses can be reposessed and sold.
If bankers ever tried to reposess a government and nation they run the risk of being stood up against the wall and shot especially if the political leaders have this funny idea that they themselves are really incharge.
As things stand now there will be no paying down the debt and no jacking up interest rates especially on the government as they can not afford the extra expense.
The reason why the debt will not be paid down is that the government can not say no to voters, baby boomers, subsidies for special interests and wars for Israel and its allies. Therefore the irresponsible spending will continue as usual no matter what the consequences are to the economy and the currency.

#79 willworkforpickles on 05.28.13 at 9:18 am

Cottage country is a little sadder and quieter now with drooping wilting for sale signs everywhere.

#80 Raj on 05.28.13 at 9:24 am

Question :

If housing is slowing down softly, no sight of intrest rate going up significantly. Banking system is sound.

Whats making these Hedge Fund to short canadian market except lower commodity prices and retail sales

#81 bigrider on 05.28.13 at 9:31 am

To allayou realestata haters..

Believea you mea, da realastata shea go upa in da prezo ina toronto because lotsa wiseaguys and people froma de olda country liva here..

dei no lika da price go downa or dei cuma knockin on da queens a parka doors…

Dei actavists only whena de pocketabook isa goin down

Ifa you watcha da movie ‘Goodfellas” or dis crazy TV show “The Sopranos” you getta de idea…LOL

#82 Marina on 05.28.13 at 9:38 am

I know Ukranian mentality very well – they are crazy about Real Estate and if you don’t have a house or at least do not own a condo, you are loser as per Ukranian standarts.

#83 The American on 05.28.13 at 9:39 am

At #3: T.O. Bubble Boy, in answer to your question, YES, Goldman Sachs is indeed shorting the Canadian economy in several ways. Take note that GS isn’t the only financial house shorting the Canadian economy. In fact, most large, global banks are shorting it today. Internal discussions surrounding the “greatest ponzi of all” happen nearly daily. That Carney, yep, he sure has done a number on Canadians and everyone has bought it hook, line, and sinker for years longer than seen in other nations. Why do you think this is?

#84 The American on 05.28.13 at 9:55 am

LMAO. This is some funny sh*t…
http://news.yahoo.com/blogs/sideshow/canadians-claim-currency-smells-maple-syrup-011728233.html

#85 CaptainObvious on 05.28.13 at 9:57 am

Shouldn’t our central bank governor be current in central banking? Worrying.

#86 NRI13 on 05.28.13 at 10:01 am

No idea what ukranians think of real estate. On the other hand, Garth & fellow blog-addicts(I say that with utmost respect) what are your opinions on the couch potato portfolio? The portfolio strategy reflects diversification and liquidity preached by Garth and for me it has been a good starting point. Any thoughts?

#87 Alberta Ed on 05.28.13 at 10:08 am

Is that photo the “Three Suits of the Apocalypse?”

#88 rosie "moving forward" on 05.28.13 at 10:16 am

#72
Don’t ya just hare paywalls.

#89 Buy? Curious? on 05.28.13 at 10:20 am

Hey Garth! That picture of Flarety, Carney and the other guy looks like the Nerd version of The Hangover 4 with Flarety playing Zack Galafanatas, Carnery playing a balding Bradley Cooper and the other playing Ed Helms. The story is of how these Nerds try to show how big their, um, shoes are using the economy. Garth, I’ll see if Brad Pitt is available to play you and maybe Pamela Whalin to play a woman working in the second oldest profession.

Nerds! I hate nerds! The good thing about Nerds though is that it’s not considered a hate crime to abuse them.

#90 World Traveller on 05.28.13 at 10:32 am

In other news, the indentured servitude continues in Canada, Air Canada: “You can work for us, but it will cost you”. I’m glad I gave up Canada’s Flag (gaffaw!) carrier.

http://www.thestar.com/business/2013/05/27/air_canada_rouge_hopes_to_capture_disney_magic.html

#91 Ogopogo on 05.28.13 at 10:46 am

#86 NRI13 on 05.28.13 at 10:01 am
No idea what ukranians think of real estate. On the other hand, Garth & fellow blog-addicts(I say that with utmost respect) what are your opinions on the couch potato portfolio? The portfolio strategy reflects diversification and liquidity preached by Garth and for me it has been a good starting point. Any thoughts?

I’m a potato head and will never go back to active “investing” (a.k.a. gambling). The peace of mind alone is worth it, never mind reaping in the steady benefits of a balanced, diversified portfolio.

#92 m on 05.28.13 at 11:06 am

No crickets in my hood. House across the street in Van West, regular size lot, old house, but nicely finished and maintained, mortgage helper: listed last week, sold sign this morning. Asking 1.6 million something. Last month, house beside it, same story (1.6 million something) except it took a few weeks to sell. I just cannot see how these houses are “worth” that, but somebody is buying them! There is a third listing around the corner, but it sits on the alley way, also asking 1.6 million something, but no sale after several months. There is a fourth listing on the corner, double lot, tear down from last year with a monster mcmansion recently completed. No idea how much the ask is, but the lot sold last year in a couple of weeks. The list back then was around 1.7 million for the tear down which was actually a very nice heritage home.

#93 TS on 05.28.13 at 11:41 am

But what if he doesn’t, keeping the cost of a mortgage at the historically-stupid level of 3%?

Now you know.

#94 Canadian Watchdog on 05.28.13 at 11:44 am

Charts: Number of Mortgages Held By Major Banks – YoY%

Canada
Ontario
Alberta
British Columbia

#95 Post Haste on 05.28.13 at 12:07 pm

Who cares what Ukranian’s think about real estate – I live in Canada and we are as unique as any other nation. Good Grief Charlie Brown – this country is so fragmented it’s laughable. Canadians should be know as leading the charge – not worry about some old school mentality – there is a reason many left Europe for Canada!!

Does anyone actual believe that Poloz has free reign on the direction in which this country should be headed – he’s a puppet to comfort the masses – why are people so blind to that fact -

#96 msnyahoo on 05.28.13 at 12:13 pm

If you keep predicting the same thing year after year, at some point you might be right.

#97 Holy Crap Wheres The Tylenol on 05.28.13 at 12:29 pm

This photo looks very familiar?
carpe diem memento mori

http://www.youtube.com/watch?v=3uNHntjLqUs

#98 Holy Crap Wheres The Tylenol on 05.28.13 at 12:42 pm

#39 lee on 05.27.13 at 10:57 pm
#34 Jon B
You are right, you totally missed the boat. People in the last 10 years were able to quickly make more money than anyone could possibly save in their life times through property investing. Easy money is probably gone for now, until they lower interest rates some more.
I am moving in a new home soon. 850k. i don’t mind market dropping so i can upgrade to a current 1.5MM one

You are correct sir! I made some interesting investments in real estate 15 years ago however I converted to land and stock market. I have been slowly selling off my land investments over the last 5 years however I can see that some of my land is now on hold. It has finally slowed down. My investment however was in commercial property. I have always stayed away from housing property and any property in Toronto over the last ten years. I have not seen a single business locate in Toronto in some time. Most of my profit has been here in Oakville.

#99 Victor V on 05.28.13 at 1:23 pm

Taking a page from Brad Lamb’s book, this developer is showcasing an ROI of 42% for their condo project:

http://www.sagecondos.ca/compare-all-estimated-financial-analysis

Naturally, lots of holes in their “financial analysis”, including an assumption of 2.49% mortgage rates!

#100 bigtown on 05.28.13 at 1:28 pm

My now deceased dad straight from the Ukraine in 1929 drove fancy Cadillacs but once he bought our cheezy little family dwelling in Restigouche, New Brunswick for $1,500 after WW two we stayed put till all the bohunks were out of the house in the mid 1970’s. Now my sister can’t get enough of high priced Victoria cottages in Oak Bay. She fell far from the tree.

#101 thiscountryisgoing down the toilet on 05.28.13 at 1:29 pm

Stock pickings where its at….forget real estate for a decade or more……forget the balanced approach…….you’ll end up fighting the roaches for kibbles in your old age.

Lookee here at CP Rail….. a sweet double bagger and all I’ve had to do is wander down to the pool in the morning after a time in the gym.

http://www.tdwaterhouse.ca/markets-research/markets/index.jsp

$71 to $144 in a year……..!!!!!! and pays a div while you wait……….what the heck are you doing with your time and money fool?

Read it and weep….are you counting how many sure things have gone by since you started investing in dullardry? I keep saying…get down to the library and read every book on the shelf……..stop listening to comissioned salesmen and bank commercials.

#102 Canadian Watchdog on 05.28.13 at 2:15 pm

Toronto bidding wars explained in one chart.

#103 bill on 05.28.13 at 2:16 pm

I think the Canadians with Ukrainian ancestry must have some influence in the real estate market….however I dont know what it is.
I did notice the selection and quality of frozen pierogi goes up the closer you get to the prairies.
in Invermere B.C. , I was greatly impressed by the sheer volume of pierogi [and selection] in the frozen food section and there was still a mountain range to go till the flat land….
if we use the pierogi as a rough guide it would seem quite a few may have bought….
this method of mine may be suspect but so are the various real estate figures as well.

#104 Kris on 05.28.13 at 2:21 pm

#79 willworkforpickles

“Cottage country” is a very general term – Where exactly are you talking about?
I’ve wanted to get a modest cottage in the 1000 Islands area of Ontario for a while.. I wonder how today’s prices stack up against historic prices.

#105 jess on 05.28.13 at 2:22 pm

if these types are willing to do this what about the parts?

…” Denso Corporation Executives Agree to Plead Guilty for Price Fixing and Bid Rigging on Auto Parts Installed in U.S. Cars

To date, nine companies and 14 executives have pleaded guilty or agreed to plead guilty in the department’s ongoing investigation into price fixing and bid rigging in the automotive parts industry. DENSO, Nippon Seiki Ltd., Tokai Rika Co. Ltd., Furukawa Electric Co. Ltd, Yazaki Corp., G.S. Electech Inc., Fujikura Ltd., Autoliv Inc. and TRW Deutschland Holding GmbH pleaded guilty and were sentenced to pay a total of more than $809 million in criminal fines. Additionally, 12 individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each…read more

http://www.justice.gov/opa/pr/2013/May/13-at-587.html

#106 Victor V on 05.28.13 at 2:31 pm

Do we still need real estate agents?

http://www.theglobeandmail.com/report-on-business/video/video-do-we-still-need-real-estate-agents/article12137182/

#107 GtaGuy on 05.28.13 at 2:32 pm

Read that stat the other day too. Over 50% of homeowners planning on buying within 5 years. Could this be just a made up stat?

I thought wow how is that possible. Are they all planning to buy a 2nd home or upsize or downsize? What the heck are the reasons for an already homeowner to want to buy within 5 years?

I think a lot of these are the new generation of homeowners that like to buy and hold a property for 5 years and upsize every 5 years.

Seems like everyone wants to do that. Easy 6-8% gains a years right?

Great in a hot market but not so great in a slow market which we are in.

#108 Old Man on 05.28.13 at 2:35 pm

I am going to tell one of the best kept secrets in Toronto during the 1970’s. There was an ethnic group who was buying up first, second, and third homes; they kept one and rented out the others which were financed to the hilt on closing. Some of you will point and say it was this or that group, and you will be wrong, so who did this all?

#109 jess on 05.28.13 at 2:42 pm

The indictment follows law enforcement actions in 17 countries. Five men, including founder Arthur Budovsky, have been arrested and charged with money-laundering and with operating an unlicensed money transmitting business. Two other people are mentioned in the indictment and are believed to be at large.

Liberty Reserve was incorporated in Costa Rica in 2006 and was one of the world’s most widely used digital currencies. The service allowed account holders to send a receive payments from anywhere in the world. Liberty described itself as the internet’s “largest payment processor and money transfer system”, serving “millions” around the world. (guardian uk)

http://krebsonsecurity.com/

#110 Holy Crap wheres The Tylenol on 05.28.13 at 2:49 pm

#92 m on 05.28.13 at 11:06 am

No crickets in my hood. House across the street in Van West, regular size lot, old house, but nicely finished and maintained, mortgage helper: listed last week, sold sign this morning. Asking 1.6 million something. Last month, house beside it, same story (1.6 million something) except it took a few weeks to sell. I just cannot see how these houses are “worth” that, but somebody is buying them! There is a third listing around the corner, but it sits on the alley way, also asking 1.6 million something, but no sale after several months. There is a fourth listing on the corner, double lot, tear down from last year with a monster mcmansion recently completed. No idea how much the ask is, but the lot sold last year in a couple of weeks. The list back then was around 1.7 million for the tear down which was actually a very nice heritage home.

Dear M,
Come to Oakville Ontario to see what insane amounts money will buy you in an old worn out home. Buy it, blow in up! then spend more money to build a McMansion. Oh the best part is most of these old homes are purchased buy developers who flip them for a tidy profit. I can see we are in the same dollar range here as crazy west coast real estate equates here locally. People here think nothing of dropping 1.5 to 5 million for their piece of the proverbial pie. The only question is how close are we to Appleby College?

#111 Inglorious Investor on 05.28.13 at 3:21 pm

About that Spectator article…

They say:

“[…] all Carney really did was keep the debt-fuelled boom running longer than anywhere else.”

Well… the economy did not suffer as much as in the US and elsewhere. You can’t give Carney the credit/blame for that.
————-

“[…] it is hardly surprising there was a housing bubble — and Carney was mainly responsible for it.”

He must take part of the blame, but “mainly responsible”? Maybe if you believe the BoC sets rates by simply pushing buttons on a keyboard.
—————-

“In reality, Carney inherited an economy that was in perfectly decent shape, and allowed a property bubble to get out of control.”

Carney, F, H… And don’t forget the banks. After all, it was largely for them.
—————-

“[…] what the UK actually needs is a governor who can work out how to get the UK growing again without the artificial stimulus of borrowed money. There is no evidence to suggest that Carney is the man for that task. And there is a worrying amount of evidence that he is getting out of Canada in the nick of time.”

This author has no clue, really. The artificial stimulus of borrowed money really is the ONLY tool central banks have. Inflating the money supply is their prime task. Central banks––and governments for that matter ––do NOT grow the economy. They are a drain on the economy. Yet somehow we the people usually manage to work around their impediments and keep things going thanks in so small measure to people like Elon Musk, Steve Jobs and the millions of entrepreneurs and risk takers, the true capitalists of our society––big and small–– who actually use their brains, hard work, technology and other innovations to create real wealth and increase productivity.

More currency is not more wealth. It is just more debt that looks like wealth for a while as you are spending it. Real wealth comes from the work of we the people.

#112 bigrider on 05.28.13 at 3:52 pm

Listena to a me evrybody. Neverminda da Ukraines, Asians, Russians anda everybody elsa.

Itsa dei Italianos data controlla everythinga da realestata.

Dei humpa da houses lika 14 yr old boy humpa da pillow in hisa bed.

Believa me, dei Italianos dei build everything ina Toronto, dei own practically alla da constructiona companieias, dei dominata da realestata business handsa down .

#113 Old Man on 05.28.13 at 3:53 pm

Some of you believe the last few years were bad with financing a property on fumes, but you know nothing, as this agenda has been going on for decades with hidden second mortgages on closing, and the payment for a downpayment being borrowed.

I remember the day walked into a finance company on Bay Street, and told the manager my clients cannot borrow the downpayment with a letter that it was gifted with CMHC, as a credit check will show up, and he said keep it coming, as my credit check will never show up in the system.

He said we can all make money on a closing to finance a home purchase for 100%, and this all took place back in the 1970’s :) In hindsight with raising wages some of these people did well in life, and have no regret helping them to do this, but not today as this is watching a train wreck to occur in slow motion.

#114 Shawn on 05.28.13 at 3:59 pm

Currency, Wealth and Debt

Number 11 Inglorious Investor says:

More currency is not more wealth. It is just more debt that looks like wealth for a while as you are spending it. Real wealth comes from the work of we the people.

******************************************
Agreed, more currency is not more wealth.

Real wealth is natural resources goods and services and all manner of improvements to land and buildings that are of use and are valuable to humans.

A newly constructed house represents added wealth for the world as a whole.

Debt in and of itself neither adds to nor detracts from wealth.

But often, debt allows real things like houses to be built. Mary’s money gets loans to Joan via a bank and Joan can pay for a house to be constructed. That adds to real wealth. Especially if the alternative was for joan to sleep on a counch and for the workers who built the house to be idle.

Make no mistake, central banks and regular banks and the whole money mechanism and debt are very necessary components to all the wealth that this world has created so far and continues to do.

I could go on but why bother?

Some of us see opportunity in this world and continue to get richer, other gripe and moan and make up doomer scenarios.

To each his own.

#115 daystar on 05.28.13 at 4:08 pm

That means about 45% of the entire population owes money on real estate. – GT

And of that 45%, how many would be in big trouble @ 8% mortgage rates? 1 in 4? If 1 in 4 can’t make it, that’s 1 out of every 10 Canadians that are in big, big trouble. That’s the gamble our politicians and bankers have taken with this nation and its weighted against the middle class in a big way (guess who takes on mortgages?). We are, simply put, a nation that is in a major risk to inflated rates and that’s not all! We are also now at major risk to high unemployment and when the cost of borrowing gets costly in a nation where 70% of our nation’s economy is in service and so much equity is concentrated on an inflated asset bubble (real estate), look out!

We need a new flush of Canadian leadership politically and financially and we needed it years ago. They didn’t serve you, Canada. If they had, you wouldn’t be in the position you are now.

#116 Tom Vu on 05.28.13 at 4:19 pm

I tink the blog photo is from Reservoir Dogs.

#117 Humpty Dumpt on 05.28.13 at 4:25 pm

Narcissism Epidemic: Why There Are So Many Narcissists Now

Narcissism contributed to the economic crisis. Many people had narcissistic overconfidence [when they said], “Yeah, I can afford that million-dollar house,” and lenders said, “Sure, I know you’ll pay off that loan,” and, well, fantasy collided with reality, and the consequences have been worse for the economy than anything since the Great Depression. Obviously, there were lots of causes for that, but I think an unrecognized cause is that narcissistic overconfidence.

http://health.usnews.com/health-news/family-health/brain-and-behavior/articles/2009/04/21/narcissism-epidemic-why-there-are-so-many-narcissists-now

#118 Kilby on 05.28.13 at 4:37 pm

Weird watching end of day optimism as stock markets rose “due to signs of stimulus from European and Japanese banks” Would be nice if the markets rose because of their brilliant business acumen not just feeding more government money everywhere, this can’t end well….

#119 Ray on 05.28.13 at 4:47 pm

Treasurys hit highest yield in 13 months.

The 10-year note yield closed 16 basis points higher at 2.170%, continuing to sell off through the end of the day as it hit its highest level since April 5, 2012, according to FactSet.

http://www.marketwatch.com/story/treasurys-fall-after-housing-10-year-nears-206-2013-05-28?link=MW_home_latest_news

#120 I am in C on 05.28.13 at 4:52 pm

Here’s news flash for you. There is not going to be any real estate crash in Canada. And rates are not going to rise signifigantly. People who have mortgages will hold on , somehow, some way. The real estate market will not continue to rise, so people whose plan was to get returns out of the increased selling price of theri home over time will be disappointed.
End result, 25 years from now we will have 2 classes of people, those who own and those who don’t. The women in the owners group , and the men in the renters group will be happiest.

#121 Chickenlittle on 05.28.13 at 5:02 pm

#89 Buy? Curious? on 05.28.13 at 10:20 am
Hey Garth! That picture of Flarety, Carney and the other guy looks like the Nerd version of The Hangover 4 with Flarety playing Zack Galafanatas, Carnery playing a balding Bradley Cooper and the other playing Ed Helms.

HAHAHA!!! It`s the reunion they have twenty years later.

#122 George Meadows on 05.28.13 at 5:11 pm

Compare this to Vancouver and Toronto propery values
http://www.nytimes.com/video/2013/05/27/nyregion/100000002245419/its-a-steal.html

#123 Old Man on 05.28.13 at 5:16 pm

Now will not keep you in utter suspence who the ethnic group was in Toronto buying up homes during the 1970’s like there was no tomorrow, as thought they were insane about it all. It is always in life that you would least suspect, as was involved in this all making money – it was the Portugese community who bought homes left right and center to rent out, for a hold to make future money, and they hooped a fortune over time.

#124 Tom Vu on 05.28.13 at 5:21 pm

#123 Old Man on 05.28.13 at 5:16 pm

well it could be worse…it could be the $#% or the &*#! or the ultra worst the $%#@*#….

#125 Ogopogo on 05.28.13 at 5:22 pm

#101 thiscountryisgoing down the toilet on 05.28.13 at 1:29 pm

This little Ozymandias fancies himself an investment genius.

Arrogance is often inversely proportional to intelligence. In this case if far outweighs it.

#126 Mr Buyer on 05.28.13 at 5:34 pm

Hey Garth your hyperlink to the UK Mark Carney story is missing a colon after the http (it should be http:)
Here is the link to the story…
http://www.spectator.co.uk/features/8915931/why-mark-carneys-canadian-success-story-may-be-about-to-fall-apart/

Thanks. Fixed. — Garth

#127 jess on 05.28.13 at 5:34 pm

bidding wars of a different kind
Friday May 24, 2013 12:16 pm
Mississippi =$1.3 Billion in Subsidies on Nissan did this bring the high paying jobs ?

http://www.goodjobsfirst.org/sites/default/files/docs/pdf/nissan_report.pdf

…workers, hired from temporary agencies rather than Nissan itself, now comprise 35 percent to 40 percent of the Canton workforce, according to worker estimates

#128 Dr. Hoof - Hearted on 05.28.13 at 5:36 pm

#108 Old Man on 05.28.13 at 2:35 pm

I am going to tell one of the best kept secrets in Toronto during the 1970′s. There was an ethnic group who was buying up first, second, and third homes; they kept one and rented out the others which were financed to the hilt on closing. Some of you will point and say it was this or that group, and you will be wrong, so who did this all?

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

In my travels, I have met lot of people , middle class, who owned a lot of revenue properties. The trick seemed to be to buy a house…early 1970’s was a prime time given inflation was taking off, where you could leverage the equity off the existing rentals as the price inflated.

I know people that would buy old homes near UBC, and rent them out to students to cover the mortgage…but couldn’t afford to live in the same home.

However, when the 1970’s ended, so did the rental game, as homes became far too speculative.

#129 Victor V on 05.28.13 at 5:55 pm

Short of cash? Stop paying your property taxes

http://business.financialpost.com/2013/05/28/short-of-cash-stop-paying-your-property-taxes/

Hey, seniors, there’s a banker out there ready to provide you with a low interest rate loan. That loan company is the government.

Depending on the province or municipality you live in, you might be able to get cash out of your home equity by deferring your property taxes. The movement that started with British Columbia’s tax deferral break to “seniors” 55 and older seems to be gaining traction.

Alberta has jumped in, offering tax deferral to people over the age of 65. And Ontario has gotten into the act as well though it only allows homeowners 65 and older to put off paying any increase in property taxes.

Still, every bit of cash helps in the world of rising taxes and shrinking cash flow that is old age. The disabled, who often face their own cash crunch, can also qualify for tax deferral programs in a number of provinces and jurisdictions.

“It can make a difference,” says Irene Martin, executive director of the Alberta Seniors Citizens Housing Association, noting about 78% of the province’s seniors live in their own homes. “Even in smaller communities taxes are $3,000 a year. A payment of $200 to $300 a month, those few hundred dollars a month can mean the difference between you living in your own home or not.”

#130 Old Man on 05.28.13 at 6:32 pm

Mark Carney was and will always be a fraud in life, as have more dirt on him than a garbage dump, so will say nothing, as he is off to England on a new gig in life, and wish him well with his beautiful wife at his side.

#131 Devore on 05.28.13 at 6:51 pm

Almost ten million own. Of the owners, 37% have no mortgage.

How many have a HELOC?

As for what Ukrainians think of real estate? Probably the same thing as Poles and Hungarians, who gorged on cheap mortgages denominated in foreign currencies. Turned out the lot of them were too clever by half.

#132 Mark on 05.28.13 at 7:09 pm

“Hey, seniors, there’s a banker out there ready to provide you with a low interest rate loan. That loan company is the government.”

Disgusting, and yet another example of the young subsidizing the old. And keeping the ‘good’ real estate, close to the jobs, off the market.

#133 Old Man on 05.28.13 at 7:42 pm

#128 Hoof- Hearted – there was no backdown with Real Estate during the 1970’s in Toronto, as no matter what just kept going higher, as the wages earned for employment went through the roof to cover any cost of a mortgage. In 1972 with a University degree the average wage was about $7,200 a year, but by 1981 was earning about $40,000 a year.

#134 Daisy Mae on 05.28.13 at 7:57 pm

#74World Traveller: “Here is the Spectator article. Pretty well researched and to the point.”

http://www.spectator.co.uk/features/8915931/why-mark-carneys-canadian-success-story-may-be-about-to-fall-apart/

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

Wow! Thank you! Can’t dispute this. We’ve known all along what the UK is just now realizing.

Garth was right…about everything…all along the way…as usual. :-)

#135 TurnerNation on 05.28.13 at 8:07 pm

Realtors in a panic! In my rental kando’s mail box I’m tossing two or three glossy realtor cards daily. Blue box fodder.

#136 Daisy Mae on 05.28.13 at 8:07 pm

#95 Post Haste: “Does anyone actual believe that Poloz has free reign on the direction in which this country should be headed – he’s a puppet to comfort the masses – why are people so blind to that fact.”

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

Nah, we’re not blind. He’ll be controlled just as the other two puppets are. Harper calls all the shots.

#137 Smoking Man on 05.28.13 at 8:12 pm

#133 Old Man on 05.28.13 at 7:42 pm#128

Hoof- Hearted – there was no backdown with Real Estate during the 1970′s in Toronto, as no matter what just kept going higher, as the wages earned for employment went through the roof to cover any cost of a mortgage. In 1972 with a University degree the average wage was about $7,200 a year, but by 1981 was earning about $40,000 a year.

…………

It’s going to happen again, trillion in student loans down south, un and under employeed youth world over,wage inflation is a coming.

#138 TakingResponsibility on 05.28.13 at 8:16 pm

Re: Photo — Interesting accessories – those ties. Symbolizes something – demasculation perhaps.

*I am not understanding why Vince in Edmonton cannot (re)sell his assignment to purchase prior to building. Was that a clause in the contract? Is the developer still trying to sell units and not wanting ‘competition’?

Vince is rightfully concerned about a falling market price and certainly an oversupply of condos in Edmonton. He has probably completed more due diligence research after his impulsive ‘right to buy’ assignment and realizes the pitfalls in pre-sales such as occupancy fees, length of time to build, buildmanship, arbitrary condo fees, etc.

While reeking of falling market risk; also reeks horribly of pre-sale condo risk.

#139 Gladiator on 05.28.13 at 8:39 pm

@137SM:
Maybe you mean that wage DEFLATION is coming?
A high supply of labour force causes it to fall in price.

#140 EIT on 05.28.13 at 8:39 pm

MORE CHEAP MONEY
MORE CHEAP MONEY

#141 willworkforpickles on 05.28.13 at 9:37 pm

Kris 104 > Starting with Wasaga Beach (sea of listings) and working your way north around lower Georgian Bay you will find many many listings. Can’t speak for the Muskoka’s or points beyond as i haven’t been to them yet this year (see mls) …but i would wait until Sept at least for the hurtin campers to drop their prices.

#142 DonDWest on 05.28.13 at 9:52 pm

#27 Bob Dog on 05.27.13 at 10:27 pm

“Will Flaherty and Carney ever be held accountable for what they have done to the standard of living of young Canadians. Will they ever be treated like the financial terrorists that they are?”

It’s a hopeless situation, try to bring it up and people just call you a whiner, loser, blamer, etc. The capitalistic propaganda of rugged individualism has taken it’s toll on us young folk. It’s a cancer.

Good luck getting a group of young people together to achieve a higher goal or justice -we’ve been sold a line that if we just keep our head down and toil there’s glory to be had at the end of the tunnel. We’re domesticated by our elders – creating a society with institutions that actually grant us some semblance of a future is just too much of a damn inconvenience for our elders who just want to retire in peace.

#143 Nancy on 05.29.13 at 9:48 am

Check this Vancouver rental out. It’s advertised as a “one bedroom with own ensuite” which is spin for the bed goes in the bathroom! $500 a month. No pets, no smoking.

http://www.vancitybuzz.com/2013/05/vancouver-rentals-a-bed-in-the-bathroom-why-not/

#144 Nancy on 05.29.13 at 9:51 am

…I should add, it’s just a bathroom in someone’s house that they are renting out. INSANE!