The gamble

Remember Derek? The poor blog dog went from euphoria to apoplexy in the space of three days. On April 2nd he and his squeeze sold their north GTA McMansion for a whopping $2,250,000, broke into the drawer with the special underwear and table-danced til dawn (this is common in Toronto).

But on the 5th the buyers said they’d changed their minds, would not be putting down the second installment of the deposit and had no intention of closing. Spitting words were exchanged, lawyers engaged but the buyers (she’s a realtor) were unmoved. No deal.

Dejected Derek had no choice but to list again after negotiations failed and the buyers didn’t even respond to the lawyer’s demand letter. So, a month after the big celebration, the For Sale sign went up again. Since then, crickets.

The market is dead. Kaput. Silent. Deceased. Comatose. Pooched. Virtually no showings. Certainly no offers. And the latest missive from Derek’s lawyer to their lawyer is clear:

Our clients are taking reasonable steps to mitigate their damages but, as you appreciate, the market has changed significantly since the date of your client’s breach. Consequently, it appears that our clients will sustain significant damages. If we obtain judgment against your clients, there will be no upside moving forward and every dollars spent on litigation is a dollar lost forever.

We are offering your clients an opportunity to trade the dead-end avenue they are traveling for a route that will bring an upside, as they will own an asset rather than a judgment. Our clients are prepared to revive the agreement, permit your clients to pay the second deposit, and complete the agreement in accordance with its original terms. Our clients will forego any claims to costs thrown away and other damages. Our with-prejudice offer is open until June 9th. If it is not accepted we intend to issue an action on June 12th.

“So, we’re moving forward with assuming property is sold,” says Derek, bucking up the courage. “We have found awesome rental and hope to take possession on Aug 1. The market has certainly changed. We got the top, but not the right buyers.”

What next? We’ll let you know, but odds are a judgment will be sought and received. When the house eventually sells for less, the case will move ahead. Damages claimed will be the difference between $2.25 million and the final selling price (maybe $1.8 million?), plus legal expenses and stress money. The delinquent buyers may bob and duck, but it’s tough to escape a judgment on a clear breach-of-contract matter when you’re a registered professional. So by not closing it’s conceivable the scared purchaser could end up paying half a million with nothing to show for it. In which case Derek’s lawyer may be spot on – at least they could end up with an asset.

This is just one house, of course. One couple selling and one buying. Derek hustled and got on the market knowing full well he was hitting the moment of peak house (he read it here, after all), and the result was exactly as he wished. The property went, literally in hours – no conditions – for full price. The buyers within 48 hours were consumed with remorse. And now the lawyers feast.

This scenario is playing out right across the region. Law offices are seeing deals break down by the hundreds in certain areas, somewhat reflected in the deluge of listings which continues. In the last seven days, another 10,000 properties hit the market in the Greater Golden Horsehoe region.

That market, as the Bank of Canada shouted out again on Thursday, is “unbalanced” and increasingly dangerous when combined with the staggering debt households carry (see the yesterday’s pathetic post).

Said the beleaguered bank boss, Stephen Poloz: “The two most important vulnerabilities for Canada’s financial system — the elevated level of household indebtedness and imbalances in the Canadian housing market — have moved higher over the past six months.” You bet. Borrowing was out of control until about four weeks ago, when lenders everywhere saw the tap turn off. But the damage, says the central bank, has already been done.

The majority of people taking mortgages in the GTA over the past year have debt now equal to 450% or more of their incomes. And a whack of them are subprimes, at rates which top 7%.

Says the bank’s latest financial conditions report: “Where house prices have grown at a faster pace than can be readily explained by fundamentals — such as in the Toronto and Vancouver areas — there is an increased likelihood of a price correction that could lead to financial stress.”

Right. Stress. Derek knows all about that. So do the deadbeat buyers. For months to come they’ll be in a costly, adversarial, bitter fight. In the end, lots of money will change hands. A few tears will be shed. Maybe some lessons will be learned. The fool who follows is the greater fool.

226 comments ↓

#1 For those about to flop... on 06.08.17 at 7:11 pm

Pink Pollen falling in Coquitlam.

This one I have posted before,it was removed for a while ,but just like the one that I posted yesterday is now back up all shiny and new without any history of their travails.

As you can see by the date stamp below,these guys have been at it since last November and now have it priced at 1.19 ,but they’re into it 1.27.

The listing states that a lake is four doors down ,which could make it an attractive summertime purchase.

Or potential buyers might just go jump in the lake…

M42BC

653 Lakeshore Drive, Coquitlam

Nov 1:$1,350,000
Feb 23: $1,299,000
Change: – 51000.00 -4%

Now asking 1.19 as of today
Paid 1.27

https://www.zolo.ca/index.php?sarea=653%20Lakeshore%20Drive,%20Coquitlam&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAzWExYQw==

#2 RANDY on 06.08.17 at 7:15 pm

I love stories with a happy ending

#3 Ex-Cowtown on 06.08.17 at 7:18 pm

“We got the top, but not the right buyers.”
++++++++++++++++++++++++++++++++

So far then, you have squat. Nothing. Anytime you go to court it’s a crapshoot, regardless of what your lawyer might tell you.

Looks to me like you missed the top. The guys that CLOSED on April 2. THEY got the top.

#4 Victor V on 06.08.17 at 7:19 pm

#193 He Said, He Said on 06.08.17 at 3:08 pm

So, deplorables, who is more likely telling the truth: Comey or Trump?

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

Depends what your definition of is is.

#5 Keith on 06.08.17 at 7:22 pm

This is a situation where investor psychology, human nature and recency bias will come into play. Imagine you had come to our blog dog Derek five years ago, and told him that his property would someday sell for 1.8 million dollars. Imagine the disbelief, and euphoric thoughts that what if this was true.

But the amount in his mind, is 2.25 million. With almost perfect timing, he hit the market at what may be the peak, for some years. The 1.8 in his mind, isn’t a gain. No sir, it’s a loss with costs and damages, of over half a million. This should be a time of celebration, of collecting the gain from being astute, self disciplined, lucky and having great timing. A watershed moment of moving on in life. Instead, even if they “win,” there could be many months of stress and uncertainty.

I hope we get to hear the end of this scenario. Lessons here for our children and grandchildren. There are many tales from the mists of time in the early eighties, of 21 percent interest rates and keys on the local bank branch managers desk. The new story may be starting.

#6 THREE FINGERS WATSON on 06.08.17 at 7:23 pm

So what is Poloz doing to fix the problem ? NOTHING. This is just a brief lull in the action while the market takes a little break. Carry on folks…..

#7 technical analysis? on 06.08.17 at 7:24 pm

maybe Poloz could have averted all this by NOT lowering rates when he did. i guess he doesn’t want to blame himself.

#8 Happy Housing Crash Everyone! on 06.08.17 at 7:25 pm

All those buyers in winter are now drowning in deep loses. Many speculators face going bankrupt. Al saint clair on CP24 and his gang of shills are in an all out panic. Prices DOWN, sales down and buyers wanting out of deals. The housing ponzi is crashing right now . No doubt about it. Happy Housing Crash Everyone Everyone! :-)

#9 scooby doo on 06.08.17 at 7:26 pm

Hi Garth. Where do you think the CDN $ is headed in the second half of the year?

#10 Debtslavecreator on 06.08.17 at 7:27 pm

Bankers give u an umbrella when’s its sunny and take it away when it rains
Credit has been tightening for many marginal borrowers and a recent change where credit scores are checked on renewal can act as an accelerator when the inevitable correction and recession begins to add even more stress to credit scores
People need to consider the fact that houses are capable of dropping 40-50% in nominal terms over the next 3-5 years if we have a deep recession (very likely)
Who cares if Derek wins his judgement which is certain
It’s one thing to win another to collect

#11 i'm not stephen poloz on 06.08.17 at 7:27 pm

Said the beleaguered bank boss, Stephen Poloz: “The two most important vulnerabilities for Canada’s financial system — the elevated level of household indebtedness and imbalances in the Canadian housing market — have moved higher over the past six months.”

————————————-

Poloz really wants a 50-cent Loonie!

#12 Oh boy on 06.08.17 at 7:27 pm

But when more than half of the country is a greater fool, perhaps our government (which consists of many greater fools) will see no alternative but to relax mortgage condiotions even further, to prevent a mega recession. It suck to live in a country of entiltled greater fools who do not understand the relation between risk and reward; they want the reward without the risks, for free, an indeed fell entitled to it. Entrepreneurs are seen as preying on the system. It is the world upside down. How has it come to this? More importantly, how do we get out of this mess? Ah, time for a dinner at Joe Beef, surrounded by a hundred tax-payer funded security folks – bring the wine, and crack some jokes!

#13 Hawk on 06.08.17 at 7:27 pm

Getting a judgement is one thing, enforcing it and collecting it quite another, in our unjust legal system. I know as after I successfully obtained a judgment once, for unpaid dues, the opposite party simply ignored the court order. I was luckily able to collect only by shaming them with negative publicity on social media.

Ofcourse the amounts involved were minuscule compared to Derek’s case, but the point is that judgments are a joke because defaulting on them does not result in automatic arrest and / or seizure of the guilty party’s property.

Therefore sadly winning a judgement, is just a small part of a struggle in getting one’s money. The whole legal system needs revamping to facilitate meaningful justice.

#14 I'm stupid on 06.08.17 at 7:28 pm

Getting a judgment and actually getting paid are two different things. The buyer being an agent doesn’t change anything. There are thousands of amateur realtors in the Gta that have never done a deal. I bet the buyers never pay the debt. Please keep us informed.

#15 Happy Housing Crash Everyone! on 06.08.17 at 7:28 pm

Btw as Garth pointed out REALTORS are getting out of deal as they have top knowledge that housing prices are CRASHING. Happy Housing Crash Everyone! :-)

#16 AK on 06.08.17 at 7:29 pm

“But on the 5th the buyers said they’d changed their minds, would not be putting down the second installment of the deposit and had no intention of closing.”
——————————————————————
It’s too bad that I don’t have the option of doing the same thing, when I overpay for a stock purchase.

#17 Arto on 06.08.17 at 7:32 pm

Well, looks like a hung parliament in the UK. The UK is screwed big time and it couldn’t happen to a more deserving country. Sorry my British friends, but England was the biggest meddler and exploiter of people in the modern era and karma is a bitch.

Their selfish meddling created the biggest geopolitical disasters we face today. The Middle East, Iran, Israel/Palestine China/Hong Kong, India/Pakistan and a slew of others. The only that turned out OK was Canada. Scotland will leave and eventually so will Northern Ireland. All the poor subjects of the Colonies they exploited in the past are now taking their revenge turning the UK into a HUUUGE mess. All that will remain is a little, divided inconsequential country.

#18 Doug t on 06.08.17 at 7:33 pm

Stick it to them Derek

RATM

#19 crdt on 06.08.17 at 7:33 pm

As I drive around to the elementary school here in Langley BC, houses are selling as fast as they are listed, seriously. Somehow the meltdown in TO is not something that bothers these buyers, Vancouver is better you know.. No idea when the elation will wear off, but when it does I suspect it will be the same here. Can’t wait to see the signs stay a while longer for a change.

#20 Pete from St. Cesaire on 06.08.17 at 7:34 pm

Spitting words were exchanged, lawyers engaged but the buyers (she’s a realtor) were unmoved.
———————————————————
She (the buyer) is a realtor! That speaks volumes.

#21 Ace Goodheart on 06.08.17 at 7:36 pm

They’re both nuts (Derek and his buyer). Time to go talk to the Superiors about what the equitable solution is. Just lots of legal fees really. If they run a trial on this, they are uber-nuts. Throw them another 100k and walk. Lose your deposit plus your seed money. Oh well. Otherwise, the only folks who are getting rich off of this are the lawyers.

Been buying up shares in Aimia. This is going to generate flames. “what the f*ck are you buying that for, it is going to go to zero”. Maybe. As of today I get a 37% dividend from a company that is still capable of paying it (but maybe not in 2020?).

Why am I doing this? I have an Airmiles card. I use it every time I buy stuff. I strategically go to stores and gas stations and restaurants that give Airmiles points. I avoid those who don’t.

Why is this important? Because I never use a single “Air Mile” to actually fly anywhere. I use them mostly to purchase Zoo tickets (the strike is over!!!).

Unless Aimia’s current CEO is a total doofus (which he isn’t, btw) then they will figure this out. And pay me my 37% dividend (but the share price will go back up again).

In other news, Trumpster is doomed. He is a really nice guy. I like the Dude. He inherited a lot of money, and he parlayed it into a cool hotel career, reality TV, tons of hot babes and now he is Prez. His single fault is that he underestimated the stodgyness of the establishment. He thought that he could “Trump” these peeps. They are going to flambey him. And he really doesn’t deserve it. He is a doddering old rich fool, living the last few years of his life in his final accomplishment as President of the United States.

The unfortunate thing about the whole situation is this guy has a viral following who are both violent, narrow minded and fiercely loyal. The powers that be in the USA have to understand this. These people are armed and dangerous. If you attack their leader, you are at risk. I hope they see this. Otherwise it will be “Handmaid’s Tale” in 3D. Stay tuned.

#22 prairie person on 06.08.17 at 7:38 pm

Today, I received and invitation in the mail. I was invited to Flip Victoria. Tarek & Christina. It is by private invitation only and my special VIP gift package will include an mP3 player and an educational CD, however, I have to book a seat immediately. Although I haven’t met them, Tarek and Christina consider me a dear friend.

#23 For those about to flop... on 06.08.17 at 7:38 pm

For my buddy Freedom First.

Don’t take the money…

M42BC

https://m.youtube.com/watch?v=B06qqB7bp-w

#24 k on 06.08.17 at 7:43 pm

Greed has been replaced with fear. Lots are swimming naked and it will end in tears for many . But hey they had hundreds of thousands of dollars in theory at some point !

#25 Joe Schmoe on 06.08.17 at 7:43 pm

I count myself lucky that I was born in Canada and in the early 70s.

I caught a lucky wave based strictly on timing.

My parents “survived” the 80s and passed on some good prudent financial patience.

The house lust never really kicked in hard until I was slightly ahead of savings etc and understood the value of money. It was easy to stay out of the fray.

I am not smarter than people today, just lucky to see things from a different perspective based on time.

People are going to get crushed and it will be hard to watch.

#26 just say no on 06.08.17 at 7:48 pm

I see a great idea for HGTV all about when buyers overpay and walk….stress, anger the really dark side of housing. Scare the life out of any one even thinking of buying.

#27 the Jaguar on 06.08.17 at 7:49 pm

Patience is a virtue. But if you have it inevitably the pay off will arrive. The lawyer will issue the action. Get judgement. File a writ of execution and attach to assets the purchaser has, i.e. other property. That’s where the patience part comes in. It might take a while, but peoples lives change. They will sell the property at some point and then Derek will get paid. Not just money, but more importantly -satisfaction. Don’t get mad, get even. It’s as old as the beard of Moses.
I like that tie and shirt combination Garth has on for the cover of Advisor. It says “I’m serious, but like a little fun and colour in my life”.

#28 Kidney Brown on 06.08.17 at 7:49 pm

And a very delicious and tasty feast it will be for the lawyers.

#29 Pete from St. Cesaire on 06.08.17 at 7:50 pm

For #20 Ace Goodheart: Why do think that it is Trump’s supporters that are violent? Cause it ain’t.

As for comey:
Comey destroyed himself today. Today it was confirmed that Trump did not interfere with anything and is guilty of nothing and that Hillary is well protected. It was confirmed (after Comey said he met with Obama twice, ) that he in fact met with Obama many times. It is confirmed that Comey had a hatred for Trump.
Comey basically completely fell apart. He hit several conflicts in his words that proves he lied all the way through the testimony. If Trump wanted late-in-the-game ammo to use at the best possible time, Comey just handed it to him. Additionally, it is now confirmed that Trump was never under investigation over Russia, and that the media lied about every single bit of it.
House Democrats have begun drafting articles of impeachment for Trump, and made it formal a day before Comey’s testimony. No doubt they were expecting to get what they needed during that testimony. And they got NOTHING but a Trump check mate. I am actually stunned by how miraculously badly this went for the enemies of Trump, rather than make Trump look bad, Comey’s testimony bolstered Trump strongly. Trump is not going to get impeached, he’s going nowhere but back to the white house.

#30 Figure it out on 06.08.17 at 7:52 pm

“the second installment of the deposit”

Just add that to the list of things I thought you had to pay cash for, upfront, all at once. I remember when deposits were called “serious money” as in proof that you were serious about closing, because you’d lose them if you didn’t. Then they morphed to an amorphous thing that mainly ensured that the brokers’ commissions got paid, and now they’re ON THE INSTALMENT PLAN?

Serves the seller right getting burned, if he’s going to sell his house like The Brick sells sectionals.

#31 rewards cards scam on 06.08.17 at 7:53 pm

#20 – wait, so the reward card company pays dividends and is listed on the stock market? That’s hilarious. I can’t believe people agreed to “reward” cards instead of cash-back on credit cards, but i’m laughing now that I know all the actually money is being paid to shareholders. We’re really sheep as a whole.

#32 Livin Large on 06.08.17 at 7:55 pm

Ahhhh, poor Derek again. It still sucks to be in the right AND sucking hind teat at the same time.

In 3 years, if he’s really really lucky and the ex-buyers aren’t bankrupt already, Derek will have shelled out $10 large and have a judgement to put in an Ikea frame and hang on his livingroom wall. If he’s really, really, REALLY lucky his main squeeze won’t have dunped him for having chased the rabit down the whole with that $10 large.

Derek’s absolutely correct, it’s a binding contract and in OZ he would get paid.

But unless he has some leverage via the buyer’s RE license and livelihood the this is a slooooooowwww boat to nowhere.

#33 Mark on 06.08.17 at 7:59 pm

Next Bank of Canada interest rate announcement on the 12th of July.

How far will the BoC allow themselves to get behind the curve on this before they finally cut again?

Poloz really wants a 50-cent Loonie!

He’ll be darn lucky if he can even keep it at current levels, and not see some sort of massive surge back to parity as deflation takes hold.

#34 InvestorsFriend on 06.08.17 at 7:59 pm

The Home sales contract MUST be enforced

Enforcement of contracts is one of the absolute necessities of a well-functioning democratic and (sort-of) capitalist system.

It IS hard to enforce through courts. Most minor contracts are honored because people are honest and there is a lot of social pressure to honor such things.

In our system we trust that contracts will be honored. In fact if you think about it, trust is at the very center of our system. Without trust we would have to be totally self sufficient and live a meager existence off the land.

Our monetary system is all about trust. We trust the government not to allow rampant inflation. We trust that electronic money will be accepted by all merchants. We trust that others cannot simply take what is ours by force.

Trust is the grease of the economy. Absolutely essential.

The whole home buying /selling system would totally fall apart if people could walk from valid purchase contracts.

#35 Greg on 06.08.17 at 8:00 pm

So what did Poloz expect would happen with year after year of emergency rates? What other outcome did he envision?

#36 paul on 06.08.17 at 8:01 pm

A house sold though my office 60 days ago for $870,000. The appraisal was done last week came in at $810,000 closing in three weeks.
Anyone out there have $60,000 for a subprime second mortgage?
The banks are tightening for sure.

#37 ANON on 06.08.17 at 8:01 pm

In the end, lots of money will change hands.

A bit skeptical about this…lots of money must be borrowed somehow, no other way has been invented or will ever be invented. Money don’t grow on trees, since they would be worthless flat pieces of pulp. Can the sellers be forced (not scared into) to borrow somehow, yet?

#38 Al on 06.08.17 at 8:01 pm

What if Derek gets judgement and the buyers declare bankruptcy – Derek is left with with paper and a large legal bill.

#39 Horseshoe on 06.08.17 at 8:05 pm

Lol, “horseshoe region”, Garth, but I prefer your version.

#40 Damifino on 06.08.17 at 8:05 pm

In 1975 my band played six nights at a club in Nanaimo for a contracted price of $1000. It was a very sparse room indeed. On the last night we got $400 cash plus a check for the remaining $600 which bounced like a tennis ball. We took them to small claims court and were awarded a judgment of $600. We never saw a cent of it, but it was a fantastic learning experience.

#41 ANON on 06.08.17 at 8:07 pm

@#36
Buyers being forced…sry, buttery fingers from the bottom of the popcorn pail.

#42 Daughter of Ponzi on 06.08.17 at 8:08 pm

Derek is a greedy and amoral POS. The buyer should just disappear (as will many). He must have bought his particleboard shack for less than 500k few years ago and 1.8 million s not enough for him now. What did he do to earn this huge amount of money by any standard? This country is full of crooks and con artists like him. Hard working people here are just slaves and can dream about this much money.Thanks you Garth for writing about this.

#43 akashic record on 06.08.17 at 8:17 pm

#193 He Said, He Said on 06.08.17 at 3:08 pm

So, deplorables, who is more likely telling the truth: Comey or Trump?

=====

New York Times statement about Trump’s lawyer’s claim:

Kasowitz is mistaken re NYT stories on Comey memos. We never quoted memos prior to Trump’s 5/12 tweet re tapes; 1st story doing so was 5/16

New York Times article published on 5/11

https://mobile.nytimes.com/2017/05/11/us/politics/trump-comey-firing.html

You tell me…

#44 Bonhomme Carnaval on 06.08.17 at 8:19 pm

@ #10 Debtslavecreator on 06.08.17 at 7:27 pm

Well said, sir !

@ #12 Oh boy on 06.08.17 at 7:27 pm

It was at Liverpool House, not Joe Beef. Same owner, right next door to each other.

Oh, and the entire restaurant was bought out for security reasons.

#45 Keep Calm and mow the lawn on 06.08.17 at 8:28 pm

Well, it happens once a year, it’s called Summer.
This year every level of ‘government’ worked hand in hand to end the spring market a month early. See ya’ in the fall.

#46 chopstix on 06.08.17 at 8:29 pm

DELETED

#47 Lumpia on 06.08.17 at 8:30 pm

Government tied down the limbs with 16 ropes, but the heart of the problem is still there. LOW interest rates. How will the herd react in a couple of months?

Meanwhile, the pigeon box agent sent me this:

1604-8 Mercer street (Across future NOBU) listed at 449k sold at 427k today.

#48 Doghouse Dweller on 06.08.17 at 8:31 pm

“Maybe some lessons will be learned.”
~~~~~~~~~~~~~~~~~~~~~~~~~~~~
$ CAD doomed for the foreseeable future. Got me some US cash today and cursed Poloz all the way home.

#49 Terry on 06.08.17 at 8:32 pm

I have no pity for greater fools let the hurt begin.. Greed has consequences.

#50 Smoking Man on 06.08.17 at 8:33 pm

House on 38 street that sold 3 weeks ago back on market.

Like I said before top bay street laywer to send the you’re so screwed letter if you don’t close.

The fact that Dereks buyer is an Re Agent. They are screwed if they don’t close. They should buy it. Wait for all this madness to die down sell it next year for a profit. When BOC goes negative. Wynee will obviously resind her 16 point screw real estate bill.

#51 DON on 06.08.17 at 8:37 pm

@ Derek

You recently sold for 2.25 Million and if I remember correctly you bought for a hell of a lot lower. 1.8 or 1.6 Million is still a big win for you isn’t it. Just hang in there – focus on selling for now (IMO) – then get down to legal action.

Good luck!

#52 dr. talc on 06.08.17 at 8:41 pm

What a mess.
If the seller gets an offer he wants to accept
he has to get first buyer to sign a mutual release.
Buyer won’t sign unless she get’s her deposit back.
Can the first buyer say ‘I’ll sign a release if it says you won’t sue me?” ask a lawyer

Did someone say seller agreed to a ‘second installment of a deposit’? big mistake. not enough ‘good faith’ at the table

“if you can’t come up with the money, you’re not for real”

A breached contract is broken. No mutual release required for the aggrieved party to try and mitigate damages. — Garth

#53 Chaddywack on 06.08.17 at 8:43 pm

Talking to my dad today:

D: Housing in Vancouver will always go up, I’ve never lost money and don’t remember a time when it ever dropped.

Me: What about the 1980s?

D: Interest rates were 21%, the government will never let that happen again. That’s the only reason there was a drop and even then some areas like the west side of Vancouver just stayed flat for a couple of years, they never fell.

Considering I was an infant when rates were 21% who am I to judge? Any dogs remember Vancouver in the 80s? Is that actually true that it just stayed flat? Should I hold off mailing my father’s day card? :)

Daddy needs a polygraph. — Garth

#54 Centre Wing on 06.08.17 at 8:44 pm

#35 Paul
——
I’m an aspiring PT mortgage agent and could hook you up with a broker.

#55 Ex-Cowtown on 06.08.17 at 8:45 pm

All Trump did was show naivete. He didn’t realize that Comey was part of the swamp until it was too late. When he did, he canned his keester.

Comey was off the reservation several times over his tenure and felt that the federal laws didn’t apply to him. Hence Comey’s need for self-serving “memos” and his CYA behavior as soon as he left the Oval Office. Trump? Guilty of being naive, but I’m sure he’s over that now.

#56 Eating quinoa in Vancouver on 06.08.17 at 8:46 pm

Derek, you may have another avenue for recourse. I assume that since the buyer acted as her own agent she has errors and omission insurance which All licensed real estate agents must purchase. Have your lawyer look into that. He should have known that from the get go.
Check out: reco.on.ca

#57 DON on 06.08.17 at 8:47 pm

“but the buyers (she’s a realtor)”

Is this a new detail?

A realtor backing away…hmm, adds another twist. Yikes!

Sell Derek Sell!!

#58 Derek's Greedy on 06.08.17 at 8:49 pm

Derek is a greedy jerk, who is trying to hold the would be buyers hostage. If someone goes bankrupt, good luck trying to cash in the judgment. There are so many ways people can appear to have nothing, that even if he does get a judgment, he probably won’t collect a cent. Good, because greed kills. Sorry Derek no sympathy from me, if your house is so wonderful, why don’t you just stay put? Anywho many judges may side with a “cooling down” reason, that the buyers after a cooling down period realized they cannot realistically pay for their purchase. Most judges will consider the mental health of the person making the decision and it is very easy to get medical documentation saying the person was making a purchase under duress / stress or without sound mind.

Hahahahahah Derek, you loose – because win or loose, lawyers always win!

Speaking of mental health checks… — Garth

#59 GFD on 06.08.17 at 8:49 pm

#14 Happy Housing Crash Everyone! on 06.08.17 at 7:28 pm
I wouldn’t be so sure, most of them are as dumb as it gets…..driven by same emotions as FOMO and worst…..speckers, ’cause they think they know more than the average dummy.

#60 DON on 06.08.17 at 8:50 pm

#26 the Jaguar on 06.08.17 at 7:49 pm

Patience is a virtue. But if you have it inevitably the pay off will arrive. The lawyer will issue the action. Get judgement. File a writ of execution and attach to assets the purchaser has, i.e. other property. That’s where the patience part comes in. It might take a while, but peoples lives change. They will sell the property at some point and then Derek will get paid. Not just money, but more importantly -satisfaction. Don’t get mad, get even. It’s as old as the beard of Moses.
I like that tie and shirt combination Garth has on for the cover of Advisor. It says “I’m serious, but like a little fun and colour in my life”.
*****************
Nice! Pleasure to read.

#61 Derek's Greedy on 06.08.17 at 8:51 pm

Hahahhahahah Derek the jerk gets nothing!!! Whoopeee, yahooooo, Derek will learn his lesson, that when you rip of people – karma will bite you in the greedy rump! Yeah Derek, you loose.

How did the seller possibly ‘rip off’ anyone? — Garth

#62 GFD on 06.08.17 at 8:52 pm

Nobody will blame Poloz, he did nothing. . . . . I think is his strategy for keeping his job.

#63 MF on 06.08.17 at 8:54 pm

Hard to feel “sorry” for Derek whose overpriced property has artificially appreciated so much, along with everyone else’s here in the GTA. The buyer also most likely rode this wave of artificial ZIRP induced stupidity on the way up too. Boo hoo. I couldn’t care less.

Anyways,

#16 Arto on 06.08.17 at 7:32 pm

Still better than the imperialist record of the French, Spanish, and Italians.

#34 Greg on 06.08.17 at 8:00 pm

Poloz knew exactly what he was doing. His mandate is to keep the party going for as long as he is in office, and then he can pass on the problem to the next guy/girl. Remember, this is the same guy who said our young should work for free to “get experience”. He’s proven himself as incompetent.

MF

#64 Happy Housing Crash Derek :-) on 06.08.17 at 8:54 pm

Hey Derek maybe someone will buy your house – NOT!

Happy housing crash Derek :-)!!

#65 Bob on 06.08.17 at 8:54 pm

Garth please explain.. how is that a household has a debt of only 450% of their income if most of the families I know of have an income of ~150k and a mortgage of ~1mil? This is about 660% of their gross income, not 450%…

#66 MF on 06.08.17 at 8:57 pm

#28 Pete from St. Cesaire on 06.08.17 at 7:50 pm

The whole Russia thing has got to be THE most tired, boring, nauseating witch hunt Washington has ever embarked on.

It’s getting way more attention than it deserves.

Believe me when I say nobody cares.

MF

#67 Mark on 06.08.17 at 9:01 pm

“So what did Poloz expect would happen with year after year of emergency rates? What other outcome did he envision?”

I think the hope was, at least to some extent, that people would take the low interest rates and bid up assets other than real estate and fixed income. Yet here we are, the stock market is still at an index level basically first reached in 2008, industry hasn’t seen much investment, and there’s been little to no movement towards investing in productivity-enhancing technology that will help Canada as it moves into a much stronger CAD$ era.

Most of these policy failures are due to the actions of the government, not the Bank of Canada. For instance, instead of using the cheap credit to reduce debt in reflection of the aging demographics and future increased dependency on government, the Government of Canada went on a large spending spree, running huge deficits under both Harper’s final year of reign, as well as under Trudeau.

#68 GFD on 06.08.17 at 9:03 pm

#31 Livin Large on 06.08.17 at 7:55 pm

Don’t forget about deposit with the offer awaiting in trust account. That’ll be released upon favorable judgment. Legals be more than 10 grand, but I’m sure there’s more waiting in deposit with the offer. Nothing to worry Derek, go, go, go.

#69 Weenerman on 06.08.17 at 9:04 pm

Aimia is Aeroplan, not Air Miles. Sheesh…

#70 Wise Old Owl on 06.08.17 at 9:05 pm

For Arto #16.
I give you an honours mark, definitely in the nineties. You were very close to 100%.
Your one misstep, Canada/Quebec.
I’m Irish and when a country votes 26 counties to leave “The Empire” and 6 vote to stay would you not agree that is an overwhelming majority. And yet they still partitioned “The Auld Sod”. May didn’t even get that
margin to act on Brexit.
I’m seventy one this year and I still follow the mantra “Burn everything British except her coal”.
Poblact Abu!!!

#71 Pete on 06.08.17 at 9:05 pm

My sympathy is with neither Derek or the buyer, a realtor. I hope they have a good fight and spend $$$ on legal fees. That will boost the economy.

#72 DON on 06.08.17 at 9:05 pm

#34 Greg on 06.08.17 at 8:00 pm

So what did Poloz expect would happen with year after year of emergency rates? What other outcome did he envision?
***********

And last month housing wasn’t in a bubble…this month it’s serious…’but we never saw it coming’. At some point people need to borrow to keep up the lifestyle. I have friends who are using their HELOCs to fund vacations abroad.

#73 MF on 06.08.17 at 9:07 pm

#24 Joe Schmoe on 06.08.17 at 7:43 pm

This is a good comment. As I have said a few times on here, Gen-X is sneaking by in this whole housing bubble thing blameless.

Gen-x:

-Entered the workforce pre-2008 disaster, usually mid to late 90’s.
-Purchased in early 2000’s. Rode this thing from bottom to the top.

From my experience, this group is the most house horny/delusional of all. They believe the cannot lose and that they are a little geniuses. They use their “equity” and mid-management salary to buy buy buy and renovate much as they can.

Gen-X mortgage brokers, realtors are the scummiest. The sorta old, slime ball looking realtor you see at the bar with a sports car parked outside, who cannot stop talking about his 3 rental properties while he hits on millennial women who he disgusts is Gen-x.

These guys are all over the GTA.

MF

#74 Internal Auditor on 06.08.17 at 9:09 pm

This is exactly why we had a 3 week closing date on our condo, we sold it last month. Listed May 5, bully offer May 10 (offers withheld until the 11th but no one else was going tonmake an offer because we only had 5 viewings) then closed May 30th. I was nervous the entire time because i couldn’t believe how much the buyer paid for our place. I though “she’s gonna walk away someone’s going to convince her she overplayed”….but the deal closed. This leveraged game brings a lot of emotions with it.

#75 Ace Goodheart on 06.08.17 at 9:11 pm

#53 Weenerman on 06.08.17 at 9:04 pm
Aimia is Aeroplan, not Air Miles. Sheesh…

I get that. Sheesh. I was making a point. If Air Miles can make money NOT booking flights, so can Aeroplan.

Concrete thinkers…….

#76 Pete on 06.08.17 at 9:14 pm

#38 Mark on 06.08.17 at 9:01 pm

Mark is right. Canada’s stock markets are sick, TSX is about 4% higher than in 2008. In 2008, average Toronto housing was sold for $380k. It rose 142% to hit $920k in April 2017.

In the same 9 years from 2008 to 2017, housing price up 142% while stock price up 4%. Why? because you can’t pay 5% down for stocks and get a 95% loan from banks at 3% interest rate.

Only reason. It is going to be so ugly after the housing bubble is burst in Canada.

#77 Realtors wanting out of deals? on 06.08.17 at 9:14 pm

Realtors are shysters and liars. HOUSING market is a fraud and anhuge house of cards. Very telling when realtors want out. Looks like prices can come crashing down FAST.

#78 Hotdogs from Heaven on 06.08.17 at 9:15 pm

#43 MF on 06.08.17 at 8:57 pm
#28 Pete from St. Cesaire on 06.08.17 at 7:50 pm

The whole Russia thing has got to be THE most tired, boring, nauseating witch hunt Washington has ever embarked on.

It’s getting way more attention than it deserves.

Believe me when I say nobody cares.
—————————————————
It’s interesting that nobody at CBS, CNN, etc have done stories on all the U.S. money that was spent by organizations in Russia to interfere with their last 2 presidential elections.

Sure it was pointless and the money wasted, but there is little doubt that the U.S. has consistently interfered in the elections of countries all over the world for decades now.

This is simply the chickens coming home to roost.

#79 GFD on 06.08.17 at 9:16 pm

#41 Derek’s Greedy on 06.08.17 at 8:49 pm

Speaking of mental health checks… — Garth

LOL Garth! So much said by so little.

#80 DON on 06.08.17 at 9:17 pm

#40 MF on 06.08.17 at 8:54 pm

“Poloz knew exactly what he was doing. His mandate is to keep the party going for as long as he is in office, and then he can pass on the problem to the next guy/girl. Remember, this is the same guy who said our young should work for free to ‘get experience’. He’s proven himself as incompetent.”

MF
***************

Incompetent could be harsh or warranted. Definitely something isn’t right!

#81 Weenerman on 06.08.17 at 9:18 pm

Sure Ace. Just speaking as an expert on their business and getting their product name wrong doesn’t help your credibility.

It would be like me saying I love Whoppers and that’s why I’m buying MacDonald’s stock.

#82 derek will end up with nada on 06.08.17 at 9:19 pm

so the buyers bailed two days later and derek waited a whole month to list again? why not wait a year for the price to go down further so he could sue for more? derek waiting will put the amount owed in question. the lawyers will love this. draw it out and make tonnes. derek not so much.

Don’t know much about contract law, do you? — Garth

#83 NoName on 06.08.17 at 9:20 pm

#122 Karma on 06.07.17 at 11:07 pm

#156 NoName on 06.07.17 at 6:22 am
“Interesting read

https://www.theatlantic.com/business/archive/2017/06/can-americas-farms-survive-the-threat-of-deportations/529008/?single_page=true”

Great way to stir inflation.
——-

Maybe, dont know.
Few years back (2012) when SM was just troll, not free software sails man, i made chart food and other selected items, average reatil price percentage increase from 2008 to 2012, chart was interesting item that most increased in price was, wait for it toothpaste.
So i had some time on my hand, struggled with data labels, but luck was on my side today, copy and paste worked flawlesly. i clock on a run and data labels appired. Toothpaste is not hot item to have ani more, grapefruits are.
But whats interesting first chart (2008-2012) that i made had only 1 item out of 50ish decreased in price, while new (2013-2017) chart had 15 items out of 56 that went down in price.

1st chart 2008-2012
2nd chart 2013-2017

#84 Danny on 06.08.17 at 9:21 pm

You hard nose Trump supporters ….he can do no wrong….now he is a saint?…let’s face it we peasants know very little about his real life……all we see is a facade.
Let the chips fall where they may ….he is really nobody’s friend.
There are greater fools everywhere

#85 paul on 06.08.17 at 9:22 pm

#58 Derek’s Greedy on 06.08.17 at 8:51 pm
Hahahhahahah Derek the jerk gets nothing!!! Whoopeee, yahooooo, Derek will learn his lesson, that when you rip of people – karma will bite you in the greedy rump! Yeah Derek, you loose.

How did the seller possibly ‘rip off’ anyone? — Garth
—————————————————————–
Must be a full moon tonight !!

#86 CP24_DRAMA on 06.08.17 at 9:22 pm

CP24 Hot Property needs to find another sponser. Or better, pay someone with unbiased opinions about the RE market to share valuable insight.

Tired of listening to a two faced Al . Not long ago complaining about a shortage of supply and now with more supply coming in, telling sellers and other agents to calm down and hold off selling.
The other idiots are the same, nothing hot about your properties boys. Stop feeding people bull****. Sad to see people believing these scums.

#87 GFD on 06.08.17 at 9:22 pm

#54 Eating quinoa in Vancouver on 06.08.17 at 8:46 pm
Who said it’s easier to fight insurance company than some schmuck?

#88 Real estate is a problem but... on 06.08.17 at 9:25 pm

I know you guys like this and that’s to be admired. I only hope your wise enough to draw the line on accepting the ms13 gang members and convicted felons that we’re trying to get rid of.

http://www.seattletimes.com/seattle-news/hundreds-of-immigrants-use-washington-state-to-sneak-into-canada-for-asylum/

#89 Smoking Man on 06.08.17 at 9:26 pm

Why are you losers chripping Derek.

My sence basement dwellers, sat on the side lines all these years because of the fear of risk. Now rejoicing at the temporary miss fortune of others.

My advice stay away from Forex. Requires balls of steel and a kick ass herdomitor.

Started writing my financial book on Herdonomics. Ryan, Doug, and Garth pre ordered. Who wants a copy?

#90 NoName on 06.08.17 at 9:26 pm

But whats interesting first chart (2008-2012) that i made had only 1 item out of 50ish decreased in price, while new (2013-2017) chart had 15 items out of 56 that went down in price.


12 not 15 items out of 56 that went down in price.

#91 Realtors will go bankrupt on 06.08.17 at 9:28 pm

Derke will win but will win nothing as the broke and gambling on debt realtor will go bankrupt. Every speculator in the GTA are gambling and if they lose will go bankrupt in mass. BoC is stupid for not understanding people will borrow and gamble until they are bankrupt.

#92 Danny on 06.08.17 at 9:31 pm

Garth – learning a great deal from you….and these days many of us need to open our eyes and get facts as they come out from reliable sources….there are more snake oil sales people in this modern world that just want someone else’s money or “loyalty “!
For years I have been very suspicious of the Toronto Real Estate monopoly of misleading information….Garth keep them honest.

#93 White Crock BC on 06.08.17 at 9:34 pm

Pete from St. Cesaire on 06.08.17 at 7:50 pm

Trump is not going to get impeached, he’s going nowhere but back to the white house.
======================

Yeah, yeah it’s the “failing NY times but..”

https://nyti.ms/2rZWVpv

I think we’ll let Bob Meuller have the last word.

#94 InvestorsFriend on 06.08.17 at 9:44 pm

AGAIN, people believe what they want to believe

#28 Pete from St. Cesaire on 06.08.17 at 7:50 pm said:

As for comey:
Comey destroyed himself today. Today it was confirmed that Trump did not interfere with anything and is guilty of nothing…

****************************
Apparently different viewers saw things completely differently. People see what they want to see, hear what they want to hear and most of all believe what they wish to believe.

#95 Dr Strangelove on 06.08.17 at 9:51 pm

Smokey! Send us a book, I bought you last one you can’t leave me out of this!!!

#80 Smoking Man on 06.08.17 at 9:26 pm
Why are you losers chripping Derek.

My sence basement dwellers, sat on the side lines all these years because of the fear of risk. Now rejoicing at the temporary miss fortune of others.

My advice stay away from Forex. Requires balls of steel and a kick ass herdomitor.

Started writing my financial book on Herdonomics. Ryan, Doug, and Garth pre ordered. Who wants a copy?

#96 Daughter of Ponzi on 06.08.17 at 9:51 pm

It’s a very bad karma to live in a house where such a greedy person like Derek lived. Buyers should just stay away a let the particle boards rot. On the other hand the realtor who bought it, probably just deserves something like this. Oh Canada, what a great country we live in!

#97 Daughter of Ponzi on 06.08.17 at 9:58 pm

Smoking Man, you are beyond pathetic. You lost your pretend job and now live on credit cards. You sold your home to pay gambling debts. Your kids are high school drop outs and drug addicts. Stope lying and stop drinking. This is not funny any more.

#98 mathman on 06.08.17 at 9:59 pm

Derek sold his home for what some greater fool thought it was worth. Not his fault, and he should be entitled to the full sale price, as it was agreed to in good faith. I would go public with the name of the Realtor if you are not getting anywhere through doing the right thing – ruin their reputation and their career. In my line of work, if you did something like (back out of a contract at the same time as being an active licencsed participant in said market) this you would be banned for life.

Without rule of law, all contracts become worthless – this should be enforced, garnishments against the couple that are reneging in perpetuity till Derek is paid in full.

The foundation of the system is trust – people being able to get out of deals without recourse is a very slippery slope.

#99 Old Man Too on 06.08.17 at 10:03 pm

#28 Pete from St. Cesaire
Now we know who creates fake news…Didn’t you hear what Comey said?

#100 mathman on 06.08.17 at 10:04 pm

I always laugh hysterically when people compare Toronto to NYC. These are people who;

1. Have never been to NYC
2. Failed grade 9 geography
3. Who will never be invited to be the keynote speaker at the Mensa convention.

I lived in NYC for many years, incomes are extremely high relative to Toronto for the same work. Lawyers, Finance anything is 2X + what people make here. You can also find houses under $500k a 30 minute train ride in three directions.

This is realtor BS – If you think we have a land issue take any Porter flight out of the island, close your eyes on the take off for 10 minutes – open them and tell me we are running out of land.

#101 Smoking Man on 06.08.17 at 10:06 pm

#95 Daughter of Ponzi on 06.08.17 at 9:58 pm
Smoking Man, you are beyond pathetic. You lost your pretend job and now live on credit cards. You sold your home to pay gambling debts. Your kids are high school drop outs and drug addicts. Stope lying and stop drinking. This is not funny any more.
….

Do you not now see what a great fiction writer I am.
My words moved you toward sympathy. I’m good.
I need an agent.

#102 jane24 on 06.08.17 at 10:06 pm

Garth it may be that with the drop in value those buyers can no longer obtain financing. As each week passes their chance of getting a valuation at the original price goes down. If they can’t get a big mortgage and don’t have cash in the bank then Derek can scream all he wants. They will not be closing. The saying that you can’t get water from a stone is true, I have the scars.

Suspect that the RE agent buyer will get out of the business anyway as many only hold a licence to make money on their own deal.

Derek needs to decide is he staying in that house or selling at 1.7 million. These are the only two options that will obtain a result. The 2.25 million dream is gone.

#103 Sir James on 06.08.17 at 10:16 pm

May called the election to throw a wrench in Brexit.

#104 Jimbo on 06.08.17 at 10:18 pm

The only way out of such a contract would be if the seller had a pre-existing mental condition that would make them legally unfit to sign real estate contracts.

The buyer is obligated to pay in any other non-conditional cases.

The buyer SHOULD pay in this case because it was speculators and realtors who drove prices up to unreasonable levels to begin with. It’s poetic justice.

Under the assumption, she was going to flip the house in 6 months, it was an investment and not a home.

We are now returning to a time where houses will be homes and not short term investments.

#105 WUL on 06.08.17 at 10:20 pm

Re: Litigating For Fun And Profit

Many months ago, it struck me that our host would have made one helluva an attorney. Resolute, crafty and meaner than 12 miles of old logging road.

But he is too smart to sell time for money. Time is limited. If you are selling something, try to make sure there is lots of it. Like Widgets.

#106 Smoking Man on 06.08.17 at 10:27 pm

DELETED

#107 Rargary on 06.08.17 at 10:34 pm

#89… True true. People could go bankrupt in the 80’s on their mouses..but not so anymore. Cmhc follows you now as do banks … am I wrong here?

#108 Stomper on 06.08.17 at 10:46 pm

FFS what have the Canadian regulators been doing – did they learn NOTHING from Ireland and the US?

And to think, over here in Australia, we are following down the exact same path!!!!

#109 Liberal Snowflakes on 06.08.17 at 10:51 pm

#40 Daughter of Ponzi / #56 / #80

Derek is a greedy and amoral POS…..

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

^^^ Spotted the broke Liberal/NDP Snowflakes ^^^

Derek entered a legal contract to sell with mutually agreed terms & price, not his fault the buyers backed out and the market fell since then.

But no big deal right? He should just be happy with what he gets and enjoy his $500k haircut through no fault of his own. Spoken like someone who doesn’t have a dime to their name.

#110 OttawaMike on 06.08.17 at 10:54 pm

http://www.macleans.ca/economy/economicanalysis/why-ottawa-should-bail-out-homebuyers-if-house-prices-tank/

#111 Ponzius Pilatus on 06.08.17 at 10:59 pm

#16 Arto on 06.08.17 at 7:32 pm
Well, looks like a hung parliament in the UK. The UK is screwed big time and it couldn’t happen to a more deserving country. Sorry my British friends, but England was the biggest meddler and exploiter of people in the modern era and karma is a bitch.

Their selfish meddling created the biggest geopolitical disasters we face today. The Middle East, Iran, Israel/Palestine China/Hong Kong, India/Pakistan and a slew of others. The only that turned out OK was Canada. Scotland will leave and eventually so will Northern Ireland. All the poor subjects of the Colonies they exploited in the past are now taking their revenge turning the UK into a HUUUGE mess. All that will remain is a little, divided inconsequential country.
————-
Amen, bro.

#112 Ponzius Pilatus on 06.08.17 at 11:11 pm

#99 Smoking Man on 06.08.17 at 10:06 pm
#95 Daughter of Ponzi on 06.08.17 at 9:58 pm
Smoking Man, you are beyond pathetic. You lost your pretend job and now live on credit cards. You sold your home to pay gambling debts. Your kids are high school drop outs and drug addicts. Stope lying and stop drinking. This is not funny any more.
….

Do you not now see what a great fiction writer I am.
My words moved you toward sympathy. I’m good.
I need an agent.
————
Classic response, Smokie.
You are my hero.

#113 Mark on 06.08.17 at 11:15 pm

“True true. People could go bankrupt in the 80’s on their mouses..but not so anymore. Cmhc follows you now as do banks … am I wrong here?”

CMHC lines up with the other unsecured creditors in the bankruptcy process for any deficiency that they have to pay the banks when the bank files a subprime mortgage insurance claim.

Its not like publicly sponsored student loan debt that does survive bankruptcy with some exceptions.

#114 Joe2.0 on 06.08.17 at 11:16 pm

Re Comey.
What if the Russians were on Hillarys side but she still lost?
And why do you have to swear under oath?
Does that mean you can lie if not under oath.
And who do you swear this oath too?
And exactly what did the ruskies do?

#115 YYC Geer on 06.08.17 at 11:20 pm

#110 Ponzius Pilatus on 06.08.17 at 11:11 pm
#99 Smoking Man on 06.08.17 at 10:06 pm
#95 Daughter of Ponzi on 06.08.17 at 9:58 pm
Smoking Man, you are beyond pathetic. You lost your pretend job and now live on credit cards. You sold your home to pay gambling debts. Your kids are high school drop outs and drug addicts. Stope lying and stop drinking. This is not funny any more.
….

Do you not now see what a great fiction writer I am.
My words moved you toward sympathy. I’m good.
I need an agent.
————
Classic response, Smokie.
You are my hero.
———
+1 LOL :)

#116 pete on 06.08.17 at 11:20 pm

#98 mathman on 06.08.17 at 10:04 pm
You can also find houses under $500k a 30 minute train ride in three directions in NYC

In Newark, New Jersey, 30 minutes train ride directly to world trade center in downtown NYC, you can find a 2000 sf house for US$200,000

#117 Miller Time on 06.08.17 at 11:41 pm

At least the buyers are in Canada. A foreign buyer walking away would be worse.

#118 jay on 06.08.17 at 11:42 pm

http://www.businessinsider.com/chinas-international-real-estate-shopping-spree-is-officially-dead-2017-6

#119 Ponzius Pilatus on 06.08.17 at 11:50 pm

I’m trying to keep up with current affairs, but again I find myself thinking WTF.
Listened patiently to Comey’s testimony and then to Trump’s lawyer’s rebuttal.
And for what?
Obviously, the great USA is no longer functioning.
Same goes for the once mighty UK.
In other news: Merkel is in Argentina, trying to quell any suggestions that she should become the leader of the free world.
While the US and Britain are self destructing, the rest of the world moves on.
And so it should be.

#120 Way to go UK! on 06.08.17 at 11:54 pm

What a spectacular clusterf…. that sure clarified things….

A chunk of London votes labour.. half of scotland dumps SNP and votes conservative..

hilarious chaos!

#121 People are strange on 06.08.17 at 11:56 pm

Re: Mtl and Qbc City
Wait until this time next year. These foreign buyers are so easy to figure out.
Go ahead and bury your head in the sand.

#122 People are strange on 06.08.17 at 11:59 pm

Sorry. I can’t say foreign.
I meant speculators.

#123 Fool on 06.09.17 at 12:08 am

I know this is a crazy question but is this a good time to buy? I hate my current house and would love to get into a better house. House on my street recently sold for $850000. If I could get another house for 1.1 and sell for at least 800000, I could afford the difference. Or should I wait? My house looses money too if the market is going down. What to do if you are hoping to trade up? Maybe wait it out another year? Ugh.

#124 Rentin on 06.09.17 at 12:19 am

Its different here in Vancouver. People still piling into condos and townhouses. Things are in limbo right now. You can find stories to support either side right now.

Only one fact remains undisputed. Money is cheap and houses are expensive; direct correlation. As long as money stays cheap, nothing will change.

http://business.financialpost.com/personal-finance/mortgages-real-estate/vancouver-real-estate-market-heating-up-again-as-sales-and-prices-rise

#125 Pete from St. Cesaire on 06.09.17 at 12:23 am

May called the election to throw a wrench in Brexit.
—————————————————————
You got it. Everyone else seems to have missed that. I hope she is forced to resign.

#126 Lord Buckethead on 06.09.17 at 12:34 am

Lord Buckethead gets a record 249 votes… beating out the monster raving loony party but not enough to take down May… a sterling victory for PM Mayhem

https://twitter.com/LordBuckethead/status/873006103562473474/photo/1

Batten Gerard Joseph -UK Independence Party (UKIP) 871
Buckethead Lord 249
Hailemariam Yemi Independent 16
Hill Tony Liberal Democrats 6540
Hope Howling ‘Laud’ The Official Monster Raving Loony Party 119
Knight Andrew David Animal Welfare 282
May Theresa Mary The Conservative Party Candidate 37,718

#127 Freedom First on 06.09.17 at 12:51 am

#22 Flop

Flop. Enjoyed the song. The video, the groom got off easy.

Myself. I don’t do weddings. None. Too depressing. What this groom got I always imagine coming to every groom. Sooner or later.

Like I said, this groom got off easy.

All weddings are all about the bride. Just like the marriage will be.

Freedom First
Master of Freedomonics.

ps. and trust me, there is no Mrs. Freedomonics, Rosy. But don’t anyone get their hopes up.

#128 NEVER GIVE UP on 06.09.17 at 1:03 am

#7 technical analysis? on 06.08.17 at 7:24 pm
maybe Poloz could have averted all this by NOT lowering rates when he did. i guess he doesn’t want to blame himself.
==================================

Anytime Government interferes with the marketplace they create a distortion.

Emergency interest rates are one of the longest running distortions of the marketplace that I can recall.

The root cause is Governments seeking to retain power by pandering to their base voters and to their contributors who are developers.

Also keeping the ruse going keeps the general economy on steroids long after it should have calmed down.

#129 conan on 06.09.17 at 1:08 am

Well if it is pre-flop, then that dog, has pocket aces.
Post-flop, then that dog, has a boat.

If that was my dog, I would name it “Big Tell,” and not let him/her play poker, ever.

#130 Long-Time Lurker on 06.09.17 at 1:12 am

Lessons.
I’d walk.

The Gambler by Kenny Rogers
https://www.youtube.com/watch?v=Jj4nJ1YEAp4

#131 Russ on 06.09.17 at 1:39 am

crdt on 06.08.17 at 7:33 pm
As I drive around to the elementary school here in Langley BC, houses are selling as fast as they are listed, seriously. … No idea when the elation will wear off, but when it does I suspect it will be the same here.
===============================

Whoa Dude.

Tone down the driving to Elementary Schools thing. Not healthy for anyone.

Oh well.
Say what you will about pedophiles, at least they slow down in a school zone.
.
.

#132 Russ on 06.09.17 at 1:47 am

Damifino on 06.08.17 at 8:05 pm
In 1975 my band played six nights at a club in Nanaimo for a contracted price of $1000. It was a very sparse room indeed. On the last night we got $400 cash plus a check for the remaining $600 which bounced like a tennis ball. We took them to small claims court and were awarded a judgment of $600. We never saw a cent of it, but it was a fantastic learning experience.
—————————————————

Hey Dami,

Who was the band and what was the room?

I was probably there on the weekend… in from “the bush” with (soon to be) lost wages.

La, la la-la. “… when I wore a younger man’s clothes.”

#133 Former Fool on 06.09.17 at 1:56 am

Not to defend the deadbeat buyers – I think what they did is unacceptable – but listening to one of Ross Kay’s interviews recently, he did mention he could get a buyer out of a purchase contract if it wasn’t written by a lawyer. In a nutshell, Kay argued, it came down to whether the buyers had genuine truthful information regarding the state of the real estate market, or if the realty board was feeding fake data to buyers. One could argue that both parties to a contract have the right to all relevant data so they have the full capacity to enter said contract. Interesting point of view. Nonetheless, hope Derek wins.

#134 nubbers on 06.09.17 at 4:51 am

I have previously argued the case for Derek’s buyer, but now that I hear that she is a realtor, I find myself wondering just what was she up to?

It’s not impossible that she believed her own lies and was buying for herself. Yeah, right. Or was she planning to sell on to another greater fool to make a quick profit, but got caught out when the music stopped.

I now hope Derek gets some sort of compensation, but, I don’t see a realtor being willing or able to cover half a million with the crash coming. Realtors can be very creative in their dealings, so perhaps she is playing for time while she plans her escape.

#135 Evan on 06.09.17 at 6:22 am

It’s amazing that so many people have put so much money into housing in order to try to get some investment income.

Garth is absolutely right in his assessment… investors should have put their money into low priced income generating assets which are much safer…

https://www.brokenleginvesting.com/rare-dividend-stocks/

…but most people get swept up in the buying frenzy when prices rise… only get get crushed by the crowd when prices fall back to earth. The whole thing amounts to cult behaviour.

http://www.netnethunter.com/housing-vs-net-net-stocks-weighing-housing-death-cult/

Evan

#136 maxx on 06.09.17 at 7:32 am

“We got the top”

Sorry mate, you got jack-spit. Getting “the top” is when you have actually crystallized your gains.

You got the lop.

#137 Susanna on 06.09.17 at 7:37 am

#124 Freedom First on 06.09.17 at 12:51 am

#22 Flop

Flop. Enjoyed the song. The video, the groom got off easy.

Myself. I don’t do weddings. None. Too depressing. What this groom got I always imagine coming to every groom. Sooner or later.

Like I said, this groom got off easy.

All weddings are all about the bride. Just like the marriage will be.

Freedom First
Master of Freedomonics.

ps. and trust me, there is no Mrs. Freedomonics, Rosy. But don’t anyone get their hopes up.

————————————————————

That is so sad :(

You’ve never had the chance to be the bride, only the bridesmaid. I feel for you Mrs. Freedom. If I was you, I wouldn’t go to anymore weddings either, too depressing. I’m so glad you shared you’re feelings with us today. You’re a very special girl!

#138 The Technical Analyst, CSTA, CPD on 06.09.17 at 7:46 am

NO DEREK LOVE, SORRY.

This is a hard lesson Derek, but one you’ll have to learn and not pass off onto others.

Derek pushed for top dollar, he got burned. Now the old-buyers don’t want to close, fine. They can do that, this isn’t South Sudan.

“Bulls make money, bears make money, Pigs, like Derek, get slaughtered”

Let the old-buyers go, do you REALLY want to ruin their life via your greed?

Why is a contract not a contract? Because one party sold high? — Garth

#139 MF on 06.09.17 at 7:52 am

#116 Ponzius Pilatus on 06.08.17 at 11:50 pm

The UK has been basically “collapsing” since WW1. WW2 just put a stake in it. However Brexit will ultimately turn out to be the right move when they watch the EU break up from afar. It’s not really in the news right now, but the problems of the EU are still there: several members basically insolvent, unelected beaurocrats calling the shots, the risk of terrorism, low economic growth.

Sentiment changes largely based on what the prevailing news story of the day is. Wait until the next EU financial crisis hits and watch everyone give a nod to Brexit.

And I disagree about the US. The country has minor issues: racial issues, debt levels, partisanism, but there is no one in the world who comes close to the US in terms of economic might and power, and won’t be for a long long time.

The reason is most of the rest of the world, when looked at as a whole, shows how primitive human beings are. Corruption is everywhere, people do not trust one another, war and tribalism persist, and the class divide is huge.

MF

#140 Darryl on 06.09.17 at 7:53 am

#62 Happy Housing Crash Derek :-) on 06.08.17 at 8:54 pm
Hey Derek maybe someone will buy your house – NOT!
Happy housing crash Derek :-)!!
——————————————————————
Not sure if its the lack of sleep or two large coffees but I got a good chuckle at this one .

You know you come across as being a prick though EH?

:)

#141 DebtFree on 06.09.17 at 7:58 am

#107 – Very well said. LOL

#142 MF on 06.09.17 at 8:00 am

#78 DON on 06.08.17 at 9:17 pm

Yup. And another person who gets to skip blame is Carney.

Back in 2008, the dropping of rates was necessary to keep the economy functioning. It’s a partial reason of why we came out largely unaffected. However, when the world started moving forward again (around 2010/2011), Carney should have started normalizing but he didn’t. The debt binge therefore continued unabated. He’s now in the UK dropping rates and creating the same problem in his wake.

#76 Hotdogs from Heaven on 06.08.17 at 9:15 pm

It’s just so tiresome. Nothing but a witch hunt to try and blame Trump for something stupid. Do these guys think it’s the 1960’s? Russia? Really.?

MF

#143 crowdedelevatorfartz on 06.09.17 at 8:06 am

@#122 Peter from Ceaser
“May called the election to throw a wrench in Brexit.
—————————————————————
You got it. Everyone else seems to have missed that. I hope she is forced to resign.”

********

And I guess her calling the election now.

2 years ahead of schedule had absolutely nothing to do with the fact that her party was 18 points ahead in the polls and if she called the election 2 years from now when it was expected … it would have been right after Brexit and the financial “sh*t storm” that will be unleashed….

I guess we all missed that.

#144 crowdedelevatorfartz on 06.09.17 at 8:08 am

@ Daughter of Ponzi

Soooo you chose the blue pill when Neo offered it?

#145 maxx on 06.09.17 at 8:13 am

#12 Oh boy on 06.08.17 at 7:27 pm

“Entrepreneurs are seen as preying on the system.”

They always have been – especially by those who’ve found themselves indebted to them.

Their success is often the object of criticism. RE is currently one of the most successful entrepreneurial targets because there are so many stupid people buying at prices that would never fly were they remotely cognizant of the value of money.

In any given transaction, either the seller or the buyer walks away with residual value, ie, pay full retail, or anything close to it, and the seller walks away with residual value. Pay seller cost or less and the buyer walks away with residual value.

Capitalism would not exist without sellers walking away with residual value. A consumer’s job is to narrow that gap.

Mercilessly.

#146 soost on 06.09.17 at 8:27 am

Realtors are forgetting the golden rule of Toronto Open Houses.

50s Kitchen + Pellegrino = Profit!

MOAR PELLEGRINO!

#147 Rational Optimist on 06.09.17 at 9:14 am

51 Chaddywack on 06.08.17 at 8:43 pm

“Daddy needs a polygraph. — Garth”

That wouldn’t work in this case. As George Costanza stated in reference to beating a polygraph: “it isn’t a lie, if you believe it.”

#148 Victor V on 06.09.17 at 9:15 am

Canada’s jobs growth soars above expectations with surge in full-time employment

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/news/economy/canadas-jobs-growth-soars-above-expectations-with-surge-in-full-time-employment&pubdate=2017-06-09

#149 maxx on 06.09.17 at 9:15 am

#25 just say no on 06.08.17 at 7:48 pm

“I see a great idea for HGTV all about when buyers overpay and walk….stress, anger the really dark side of housing. Scare the life out of any one even thinking of buying.”

Maybe it could be called “Hurl, Gag, Throw up and Vomit…:-)

#150 X on 06.09.17 at 9:16 am

Another Fed move next week is another step towards Canada having to follow and increasing the cost to borrow…..

#151 Ole Doberman P. on 06.09.17 at 9:27 am

#51 Chaddywack on 06.08.17 at 8:43 pm

Talking to my dad today:

D: Housing in Vancouver will always go up, I’ve never lost money and don’t remember a time when it ever dropped.

Me: What about the 1980s?

D: Interest rates were 21%, the government will never let that happen again. That’s the only reason there was a drop and even then some areas like the west side of Vancouver just stayed flat for a couple of years, they never fell.

Considering I was an infant when rates were 21% who am I to judge? Any dogs remember Vancouver in the 80s? Is that actually true that it just stayed flat? Should I hold off mailing my father’s day card? :)

Daddy needs a polygraph. — Garth
——————————————————–
Sorry to say but rates going from 2.5 to 5% is just as lethal as from 10 to 21% like the 80’s – still a 100% gain from current levels.

#152 Ole Doberman P. on 06.09.17 at 9:29 am

#56 Derek’s Greedy on 06.08.17 at 8:49 pm

Derek is a greedy jerk, who is trying to hold the would be buyers hostage. If someone goes bankrupt, good luck trying to cash in the judgment. There are so many ways people can appear to have nothing, that even if he does get a judgment, he probably won’t collect a cent. Good, because greed kills. Sorry Derek no sympathy from me, if your house is so wonderful, why don’t you just stay put? Anywho many judges may side with a “cooling down” reason, that the buyers after a cooling down period realized they cannot realistically pay for their purchase. Most judges will consider the mental health of the person making the decision and it is very easy to get medical documentation saying the person was making a purchase under duress / stress or without sound mind.

Hahahahahah Derek, you loose – because win or loose, lawyers always win!

Speaking of mental health checks… — Garth
———————————————————
I can see this happening, the thousands of dead beat buyers will set a new precedent for what happens when you buy a house without thought in an over heated market. If it was one or two ok, but not with the thousands of law suits coming down the pipe.

#153 X on 06.09.17 at 9:30 am

re #56 + 59:

Not sure if you are insinuating that the buyer could be bankrupt, in which case they probably should not be shopping for 2 million plus homes.

IMO, Derek isn’t greedy at all. The buyer made the offer. Signed the contract. Then reneged. Shame on the buyer. They should be held accountable.

#154 Missed the top on 06.09.17 at 9:30 am

Derek has missed the top by waiting too long or in other words being greedy and trying to time the market.

The buyer is most likely to declare bankruptcy by moving all his assets overseas. Good luck going to International courts.

#155 Ponzius Pilatus on 06.09.17 at 9:30 am

#123
“Lord Buckethead”.
Only in Britain.
Pity.

#156 cramar on 06.09.17 at 9:48 am

Or you can find a lost Jackson Pollock in your garage.

http://www.cbsnews.com/news/jackson-pollock-found-in-arizona-garage-may-be-worth-15-million/

#157 45north on 06.09.17 at 9:51 am

Lumpia: Government tied down the limbs with 16 ropes, but the heart of the problem is still there. LOW interest rates. How will the herd react in a couple of months?

exactly! the heart of the problem is still there but the thing is how will the herd react right now? Thinking of cows in a herd, sudden movement gets their attention. Derek’s buyers decision to renege counts as sudden movement.

#158 Calgary Rip Off on 06.09.17 at 9:53 am

Housing cost and area determine how properties sell and the marketing and the selling procedure.

Of course in Toronto an expensive property such as above has a different selling procedure.

This post is only applicable to the area and cost bracket listed.

It does not apply to median detached houses in Calgary. Why? Rentals are about the same if not more for a similar mortgage. Both rentals and mortgages are expensive relative to what you will get.

So the argument rent forever is very personal. How long until retirement? How is the market, will the place sell if you need to leave quickly and will you lose money? Do you prefer to not have maintenance costs? Do you prefer the bank over a person who owns and rents to you?

This “housing crash” may happen in certain areas, it does not apply at all to Calgary. After living in Calgary since 2007, the housing has not returned to pre 2005-2006 levels where housing was more reasonable.

The housing is outrageously priced. Is it affordable? Yes if you have a normal income. Normal in Calgary is six figures plus. The main thing is surviving and dont come here unless you make six figures plus.

Rent and home ownership costs in Calgary are only equal if you’re math-challenged. Add in insurance, property tax, closing costs, maintenance, repairs, mortgage insurance, water & sewer charges, mortgage payments (which will increase) and the lost investment power of your equity and renters have a far superior cash flow. With capital appreciation (which the Calgary market has not delivered for years), owners are clearly disadvantaged. But, of course, you can paint the walls chartreuse. — Garth

#159 };-) aka Devil's Advocate on 06.09.17 at 10:06 am

Derek is pissed because the Peak of the Market Buyer is reneging on their promise to buy.

Did Derek have a deal himself on a replacement property? Having done so he would have changed his economic position and the Buyer of his property would have been that much more liable.

Or was Derek simply being greedy knowing this is a market peak and speculating that selling now he would be able to replace later at reduced expense? There is a risk in all speculation.

We have passed through the “catch up” phase, through the “irrational exuberance” phase and are now in the “greed” phase of this most recent real estate cycle.

#160 cash flow positive on 06.09.17 at 10:26 am

Skin in the game……lol

1.) Oh well GTA prices down 6.6% month/month….lol
2.) I’ve have rental properties that have no mortgages since 2002….lol
3.) The rental income collected is more than the purchase prices of the houses….lol
4.) Folks need a place to live so renters are easy to find…..lol
5.) Interest rates will go up soon….lol (I sure hope so).
6.) I can’t wait for the housing market bubble to finally pop!!!
7.) I have enough cashable investments to buy more rental properties (please crash).

lol….Happy Housing Crash…..lol that guy is so funny, he doesn’t have any skin in the game, but I’m on his side for my own reasons!

#161 Smoking Mans Realestate Broker on 06.09.17 at 10:35 am

#48 Smoking Man on 06.08.17 at 8:33 pm
House on 38 street that sold 3 weeks ago back on market.
Like I said before top bay street laywer to send the you’re so screwed letter if you don’t close.
The fact that Dereks buyer is an Re Agent. They are screwed if they don’t close. They should buy it. Wait for all this madness to die down sell it next year for a profit. When BOC goes negative. Wynee will obviously resind her 16 point screw real estate bill.
__________________________________________
Which one? There are two. There is a beauty on 36th as well. Now you have to plop down some cash to find a new den for your dogs.

https://www.realtor.ca/Residential/Single-Family/18253296/70-THIRTY-EIGHTH-Street-Toronto-Ontario-M8W3M3-Long-Branch

https://www.realtor.ca/Residential/Single-Family/18266580/69-THIRTY-EIGHTH-Street-Toronto-Ontario-M8W3M2-Long-Branch

https://www.realtor.ca/Residential/Single-Family/18263595/33-THIRTY-SIXTH-Street-Toronto-Ontario-M8W3L1-Long-Branch

https://www.realtor.ca/Residential/Single-Family/18263441/89-JAMES-Street-Toronto-Ontario-M8W1L7-Long-Branch

#162 Stan Broock on 06.09.17 at 10:39 am

#125 NEVER GIVE UP on 06.09.17 at 1:03 am
#7 technical analysis? on 06.08.17 at 7:24 pm
maybe Poloz could have averted all this by NOT lowering rates when he did. i guess he doesn’t want to blame himself.
==================================

Anytime Government interferes with the marketplace they create a distortion.

Emergency interest rates are one of the longest running distortions of the marketplace that I can recall.

The root cause is Governments seeking to retain power by pandering to their base voters and to their contributors who are developers.

Also keeping the ruse going keeps the general economy on steroids long after it should have calmed down.

—————————————-

Markets?
What markets?

Price of ‘money’ is determined by BOC, not by money markets – as risk based contracts between lenders and borrowers as it should be.

Credit risk is outsourced to CMHC.

There are no markets.
The above pretty much transforms the CAD from market based money to term expiration coupons.

If not for BOC and CMHC interest rates would be at least at 5-6 %, houses at 25 % of current valuations, credit manageable, economy much more efficient and competitive.

When the dust from this credit supper bubble settles we will be probably around 30-40 (maybe 50) th place in terms of wealth in the world.

Considering our natural resources, G7 status, and the fact that we where attracting educated people from around the world, the last 20 years will prove to be a period with very, very bad mismanagement of the economy.

I would say criminal but that word does not have any meaning any more anyway.

It takes very creative politicians and complacent society to get to the point of having 1.5 million ‘affordable’ SFH in a country with so much land mass

Sad. Pathetic. Moronic.

#163 Doug in London on 06.09.17 at 10:45 am

Personally I hope Derek successfully sues the buyer who backed out for the difference. Why? It was idiots like that buyer, bidding prices up to such unrealistic values, who are largely responsible for such ridiculously high house prices in the first place. If Derek loses then what next? I recently bought XEG and ENB, and the prices of these stocks and ETFs have fallen further since then. Does the brokerage firm I bought these investments from owe me the difference? I KNEW I was taking a risk and was willing to accept that risk when I bought these investments in the first place. What ever happened to abstract ideas like accepting binding contracts and actually taking responsibility for your actions?

#164 Calgary Rip Off on 06.09.17 at 10:48 am

“Rent and home ownership costs in Calgary are only equal if you’re math-challenged. Add in insurance, property tax, closing costs, maintenance, repairs, mortgage insurance, water & sewer charges, mortgage payments (which will increase) and the lost investment power of your equity and renters have a far superior cash flow. With capital appreciation (which the Calgary market has not delivered for years), owners are clearly disadvantaged. But, of course, you can paint the walls chartreuse. — Garth”

Thank you for this information. I am math challenged definitely and repairs of any mortgaged property are a given. The flashing on the purchased mortgage was installed incorrectly and that was paid for. I have painted the deck in 2011 and will repaint somewhat this summer. The garage door must be replaced as the thin metal does not allow for proper mounting of the electric opener.

Given that my rent was around $1800/month, the mortgage is $1700+utilities+insurance, and both the rental and the mortgage require utilities, renters insurance and no rental agreement, and I would be renting for a very long time, this is why I got the mortgage. In some areas in Canada it is indeed preferable to rent as the cost separation is much larger. Not so in Calgary, and in many cases the rents are higher than the mortgage. Of course, yes, with upkeep the costs of the mortgage may in fact be more.

This is risky yes, because one day ultimately you will, or may, sell the property and were all the extra costs worth it? Maybe. And if you pay it all off and are still alive when that happens you are housing costs free except for insurance, taxes on the property and utilities and maintenance.

In places like Vancouver, renting is the only option. Dont know about Toronto. Calgary for the time being, renting and getting the mortgage are about the same, both being too expensive, compared to places with higher property taxes, like Houston, Texas, which is cheaper but with lesser wages median to match.

There is no clear answer to the rent vs mortgage acquisition idea. The idea of renting and being able to move is appealing. Also appealing is not having to negotiate lease renewal with a person.

#165 Doug in London on 06.09.17 at 11:03 am

I don’t understand. With all these listings and lower prices why aren’t there more buyers rushing in to take advantage of the situation. Here are a few comments from “expert” posters here.

1) Now, it’s the millennials that are buying, and who will absorb the inventory. There is apparently no longer any downward demographic pressure on a real estate. Throw in the generous immigration, temporary foreign worker, and refugee system, and any excess inventory gets further eaten up.
I am not seeing any great external factors putting pressure on the market in the coming years. These prices have been unsustainable for years in all parts of the country, and yet despite crushed oil prices, a technical recession, stagnant incomes, and rising US rates, we keep moving onward and upward in prices.
As a prospective buyer with a nice down payment, these are my serious comments.
After being an ardent bear for the longest time, I am looking at the market with a new lense . When you see even farming communities come suburbs like King Township and East Gwillimbury post near 100% gains after 3 or 4 years, the GTA and YVR seem unstoppable.
Garth stop selling your fear! R/E won’t come down in TO, it’s the new norm. Could of should of make alot of money.

2) According to the Globe expect more bidding wars in Toronto. According to the FP expect interest rates to stay low for a long, long time, largely due to the aging population who tend to save more. I say average SFH in Toronto will be about 1.6M by about 2020. About 3.0 M by about 2025. There is an old saying when it comes to investing: don’t wait for bad times to invest or time itself will pass you by. Nobody can afford significantly higher rates so it simply won’t happen. We will see about another 1% increase over the next ten years. Politicians care about now.

3) Real estate values in most parts of Canada will never drop, and in many areas, will only keep rising. Why?
– Canada is the “best country in the world”
– Canada has a generous immigration and refugee policy – they all gotta live somewhere
– the crisis in Syria, Iraq and Afghanistan will only accelerate the number of people wanted to migrate to Canada, and with a new Liberal PM, the numbers allowed in will increase
– interest rates will stay low for a long, long time, maybe rise a 1/4% this year, maybe 1/2% next year – maybe
– Boomers and other wrinklies are hanging on to their real estate for much longer
– many wealthy Canadians are speculating on real estate, buying up condos, multi-unit rental accomodations, houses, cottages, some wealthy people own 5 properties or more
– the rich foreign investors (China, US, Russia, UK) are buying up houses and large plots of land for development.

4) There is no way to prick the housing bubble.
It is already 7-8 years too late. They have to inflate further or die.
A house in Toronto would be worth 30 % more 2 years from now. (Posted in March 2016)

5) In the end, it’s clear that Vancouver, Toronto, and connected real estate markets have outperformed all other investment strategies in Canada for the past decade. There is every sign this will continue for the foreseeable future as there will be no interest rate hikes, mortgage rule tightening, CMHC curbs, foreign ownership regulations, or any other form of regulatatory action to rationalize the rush. The goose is laying golden eggs. Sure, bubbles collapse but why not join in the party. This is a very balanced market when factoring in foreign capital, lax lending and low interest rates, CMHC pumping, government inaction. All this kvetching is pointless.

You see? House prices in the GTA will NEVER go down because all these new buyers will fill the void.

#166 Stan Broock on 06.09.17 at 11:06 am

Unfortunately Canada has become lately very, very unattractive to top talent from around the world largely due to the ultra expensive unaffordable standard of living.

The baby boomers living in 1.5 million CAD SFH will soon find out that there will be big shortage of people willing to change their adult diapers while living in basements, eating expensive GMO crap, paying huge taxes and being skinned alive by greedy FIRE sector and countless monopolies and oligopolies.

#167 stock picker on 06.09.17 at 11:13 am

Dereks ‘realtard’ was sooooper stupid. The deposit should have been baked in liquidated damages…..a clause a more experienced pro would have activated in such a hyper market scenario. The idea they let an incremental deposit clause pass the smell test was gross incompetence. A deposit of 25% non refundable would have served as a strong deterrent. The ‘realtard’ buyer was obviously a flipper with non Canadian experience in law…..if she thought that non response was a viable tactic…..strictly third world…..so we learn more about who’s involved by the actions they take. These two week courses in real estate sales as jobs for novice Canadians really should be monitored more closely.

Nobody gets a real estate license in two weeks. You advice is useless, as usual. — Garth

#168 Ace Goodheart on 06.09.17 at 11:15 am

RE: #80 derek will end up with nada on 06.08.17 at 9:19 pm

“so the buyers bailed two days later and derek waited a whole month to list again? why not wait a year for the price to go down further so he could sue for more? derek waiting will put the amount owed in question. the lawyers will love this. draw it out and make tonnes. derek not so much.”

-The damaged party is supposed to “mitigate”. So Derek has to try to re-sell to someone else, to reduce the amount of financial harm he will otherwise encounter. That is one of the tenets of contract law, you always have to try to mitigate your losses, you can’t just sit there and do nothing.

The purchaser is actually very lucky. This could have been the perfect storm. Imagine for a minute if Derek had purchased another house, in another city, where he had just accepted a new position at six figures, and his wife and family had already moved there, waiting for the house to close so Derek could follow them. Why not? He had a firm deal, no conditions. He could have used it to get bridge financing on his new place.

This could have been a total sh*t storm the likes of which would have financially buried the purchasers for life. As it is, they’ll probably lose a few hundred thousand dollars, which seems like a lot, but really it could have been way, way worse for them.

Moral of the story? (I hate morals, but the word fits), don’t sign for sh*t you don’t plan on doing, and never made big decisions for emotional reasons.

#169 Smoking Man on 06.09.17 at 11:23 am

#158 Smoking Mans Realestate Broker on 06.09.17 at 10:35 am
#48 Smoking Man on 06.08.17 at 8:33 pm
House on 38 street that sold 3 weeks ago back on market.
Like I said before top bay street laywer to send the you’re so screwed letter if you don’t close.
The fact that Dereks buyer is an Re Agent. They are screwed if they don’t close. They should buy it. Wait for all this madness to die down sell it next year for a profit. When BOC goes negative. Wynee will obviously resind her 16 point screw real estate bill.
__________________________________________
Which one? There are two. There is a beauty on 36th as well. Now you have to plop down some cash to find a new den for your dogs.

https://www.realtor.ca/Residential/Single-Family/18253296/70-THIRTY-EIGHTH-Street-Toronto-Ontario-M8W3M3-Long-Branch

https://www.realtor.ca/Residential/Single-Family/18266580/69-THIRTY-EIGHTH-Street-Toronto-Ontario-M8W3M2-Long-Branch

https://www.realtor.ca/Residential/Single-Family/18263595/33-THIRTY-SIXTH-Street-Toronto-Ontario-M8W3L1-Long-Branch

https://www.realtor.ca/Residential/Single-Family/18263441/89-JAMES-Street-Toronto-Ontario-M8W1L7-Long-Branch
…..
I’m at the starting age where the juggle wants you gone. Done with the rat race.

I’m pulling a Garth.

Buying or starting an ice cream shop. Bar is to dangerous for me. Looking at Antigua and St Marteen. At leased it will be open all year with a few stoppages during hurricane season.

#170 Keith in Calgary on 06.09.17 at 11:32 am

I want to know, and maybe I missed it, but how much deposit did Derek have ?

And why did he not get the deposit paid into his lawyer’s trust account to his credit (like I did when I sold my father’s house) instead of doing it the stupid way and letting the agency hold it ?

The brokerage always holds the deposit, per the listing agreement. — Garth

#171 The Reel Me on 06.09.17 at 11:48 am

Why on earth shouldn’t Derek’s buyers be obliged to close or compensate him for bailing out?

Putting aside the nonsense from the buyer’s shills (yeah, you, Daughter of Ponzi) — the buyers voluntarily entered into the contract and need to be held to its terms. It’s doubtful that this was a fitness club/timeshare hustle which is one of the few contracts eligible for a cooling off period.

As the buyer is a realtor, they would be deemed a sophisticated buyer as they’re (by their own definitions), real estate experts and arguably have more power and knowledge than Derek.

To sue for specific performance would be interesting (that the buyer close on the transaction), but as other posters have suggested, it’s likely that the buyer doesn’t have the money or credit to close and is taking their chances on waiting it out.

There are ways of collecting judgments legally. It may take a while, and come with costs, but with a potential $500K recovery, that investment would be worth it.

#172 n1tro on 06.09.17 at 11:52 am

Excuse the ignorance but if a deposit is always held by the brokerage and the buyer walks away, does the seller get to keep the deposit? If not, what’s the point of a deposit?

#173 MPM on 06.09.17 at 12:02 pm

Poloz Pain Pill

Irony Canadian style – Poloz fears for the economy so he drops rates. Canadians go to the trough of debt and put the economy at bigger risk than Poloz was trying to prevent.
Your grandma was right. You can never avoid taking your medicine, only delay it. And now it may be way way worse than ever imagined.

If only history cared about the BOC Governors.

#174 Livin Large on 06.09.17 at 12:06 pm

This is marginally off topic but I haven’t been watching financial news for a couple of weeks.

Why have the banks been on such a tear in the last two days?

The bond rating downgrade not that long ago clearly put the boots to their collective SPs but they appear to be about to reverse that kicking.

Is the market just saying, “well the sky isn’t really falling so now let’s get back to normal”?

#175 Ace Goodheart on 06.09.17 at 12:27 pm

This could be significant:

http://www.repmag.ca/news/brokers-weigh-in-on-torontos-cooling-market-226579.aspx

Apparently this Burlington house is now worth 18% less than it was in February. Sold for $1,065,000 on February 28th, 2017, now appraised at $875,000.00

That is basically the entire down payment, if they put 20% down (which is not likely in this market).

This is serious stuff. This basically means that anyone who bought a house in the GTA between around December 2016 to March 2017 with less than 20% down is likely underwater right now. People who put 20% down are now in the position of having 2% equity in their houses (which will get eaten up by the 5% real estate commission if they sell).

This is brutal. Worse than what happened in Vancouver.

We need a 20% upwards price correction over the course of 2017 just to break even…….

#176 bdwy sktrn on 06.09.17 at 12:38 pm

+1
he is really something, even more bitter than mark.
——————–

#157 cash flow positive on 06.09.17 at 10:26 am
Skin in the game……lol

….

lol….Happy Housing Crash…..lol that guy is so funny, he doesn’t have any skin in the game, but I’m on his side for my own reasons!

#177 TnT on 06.09.17 at 12:42 pm

#135 The Technical Analyst, CSTA, CPD on 06.09.17 at 7:46 am

Let the old-buyers go, do you REALLY want to ruin their life via your greed?

Wow… the “Gold Star” generation is active today…..

Derek’s listed his house and some “Greater Fool” bought it. Now this “Great Fool” is a “Dead Beat Loser”.

“Dead Beat Loser” just ruined Derek’s retirement.

“Dead Beat Loser” ruined an opportunity for someone else to buy on offer day by playing big man and buying the house full asking no conditions ensuring no other offer would be considered.

Sue their a$$ off and then some….

#178 Bobby on 06.09.17 at 12:48 pm

For #167 Keith in Calgary, this is one of the problems with the existing system, the deposit is held by the brokerage. The first thing that comes out of it is their commission.
I sold my house privately, for much more than my realtor suggested, with the intent that my lawyer held the deposit. Our contract included quite a sizeable deposit once the conditions were removed as I wanted to ensure I was protected should the buyer change their mind. From my experience, a good lawyer is better than a realtor for most of the time.
The existing listing agreements seem to be written to protect the realtors, not the people they supposedly represent.

#179 Ponzius Pilatus on 06.09.17 at 1:09 pm

Interesting analysis from the British election.
A very large portion of the 18 to 34 year old actually voted this time. Most voted for Labour.
Maybe the Millenials are not as jaded as the boomers like us to believe.
After all the talk about countries going right; are we seeing a revival of the left?
Time to read some Hegel, Bucketheads.
Maybe

#180 Rexx Rock on 06.09.17 at 1:11 pm

You bet!Its all about timing.The smart ones bought years ago knowing full well the central bank wants everyone to own a home at the lowest interest rates in 5000 years.Lots of people will retire early as millionaires as they unload real estate which is good for the millenials as there will be many job openings coming up.!Happy retirement to all the new millionaires!!

#181 paul on 06.09.17 at 1:18 pm

169 n1tro on 06.09.17 at 11:52 am
Excuse the ignorance but if a deposit is always held by the brokerage and the buyer walks away, does the seller get to keep the deposit? If not, what’s the point of a deposit?
——————————————————————–
The deposit is supposed to good faith, it stays in a trust account till closing or other disposition of the agreement. ie the buyer and seller come to terms and settle or the courts decide who is the injured party and orders it paid out.
To make everyone happy here the agent gets nothing no closed agreement no commission paid.

#182 Smoking Man on 06.09.17 at 1:24 pm

Attention VB.Net and VBA developers Microsoft will be introducing surface phone. Meaning all your desktop apps will now run on phones. Macro buttons touch screen.

This is huge. Point of sale aps, inventory aps, invoice aps, trading apps. All connected to your computers via share point or one drive.

Get building and get into the Microsoft store.

http://www.trustedreviews.com/news/microsoft-surface-phone-release-date-news-specs-price-rumours

#183 Xbox Economist on 06.09.17 at 1:24 pm

Look at me, I’m a victim because:

– Poloz kept rates too low.

– Gen-X rode the bubble up.

– Realtors make commissions.

– Derek’s a greedy seller.

Seems there are lot of whiners here. No wonder we ended up with Trudeau.

#184 Long-Time Lurker on 06.09.17 at 1:44 pm

JIM ROGERS: The worst crash in our lifetime is coming

http://www.businessinsider.com/jim-rogers-worst-crash-lifetime-coming-2017-6

Rogers: I learned very early in my investing careers: I better not invest in what I want. I better invest in what’s happening in the world. Otherwise I’ll be broke. Dead broke. Well, what’s going to happen is it’s going to continue. Some stocks in America are turning into a bubble. The bubble’s gonna come. Then it’s gonna collapse and you should be very worried.

I think Bill Gross said the same thing. If I have time later, I’ll look for the link.

Rogers is a nutbar. — Garth

#185 TurnerNation on 06.09.17 at 1:45 pm

Got VIX? I’m a buyer. Eom.

#186 bdwy sktrn on 06.09.17 at 1:51 pm

home capital doubles off the bottom.

anybody have the guts to get this at 6bucks???

#187 InvestorsFriend on 06.09.17 at 2:00 pm

What determines interest rates?

Stan Broock above at 159 says:

Markets?
What markets?

Price of ‘money’ is determined by BOC, not by money markets – as risk based contracts between lenders and borrowers as it should be.

************************************
There is clearly much truth to that since central banks are buying bonds to drive rates down.

But mega institutional bond holders are also buying ten year bonds to HOLD until maturity at like 2%.

Interest are determined by the supply of money to lend and the demand to borrow. Central banks are pushing up demand pushing down rates. But big institutions are also accepting the low rates. Everyone is accepting low deposit rates. WHY?

In spite of massive borrowing there is also massive savings. What is stopping the holders of deposits from shopping for higher interest rates or taking the deposits and paying off any loans they have? (which lowers the money supply)

I get back to the notion that the western world is largely “built out” We just don’t need that much investment. We are not seeing enough borrowing to invest to push up the demand for loans and push up the interest rate.

I also get back to the observation that the old people have mega wealth. There are not enough young people to borrow it unless we have rock bottom interest rates that entice the young to borrow massive amounts and sop up the available savings of the old people.

The lending markets perceive almost zero risk of borrower default. That’s because we keep lending people new money to make payments on old debt. When that music stops and defaults rise then interest rates will rise.

If you want higher interest rates, pray for higher loan delinquencies.

#188 IHCTD9 on 06.09.17 at 2:02 pm

The new path to success in Ontario:

Quit High School at 16, take job at Timmies for the new minimum wage rate of 15.00/hr. Live at home like all your friends, but invest 250.00 per week, every week, and make 6%, then reinvest the proceeds.

Do this until 65, and retire with 3+ Million in the bank – better than every last home owning white collar individual in the entire GTA.

He who laughs last, laughs best…

#189 bdwy sktrn on 06.09.17 at 2:39 pm

big FANG selloff going on 3-5%

i’d love love to get some google cheap.

it seems to be leading the broader mkt down.

#190 The Technical Analyst, CSTA, CPD on 06.09.17 at 2:43 pm

Why is a contract not a contract? Because one party sold high? — Garth

Sold high? Not at all. There are 5 conditions to a legal contract in Canada, all 5 must be met. They could easily declire “under physical or moral duress” and walk away:

To be valid and therefore legally binding, five conditions must be met. First there must be the mutual consent of both parties. No one can be held to a promise involuntarily made. When consent is given by error, under physical or moral duress, or as a result of fraudulent practises, the contract may be declared null and void at the request of the aggrieved party. In certain types of contractual relationship, the law demands that the consent of the party be both free and informed. This is the case, for instance, with contracts involving medical treatment.

The second is contractual capacity – the mental ability to keep the promise one has made. A young child, a person suffering from a serious mental disorder and sometimes even a minor are all considered incapable of contracting.

The third condition is that the contract should have an object or a purpose; it must concern a specific and agreed-upon good or service.

The fourth condition is “lawful cause” in civil law or a “valuable consideration” in common law. In this area, important technical differences exist between the two legal systems. Briefly, according to this fourth condition, the promise made must be serious and each obligation assumed by one of the parties must find a corresponding, but not necessarily equivalent or equal, promise made by the other party. A person may thus legally sell goods at a price that does not represent their actual market value. The contract would still be a valid one.

The fifth condition, which is not required in all cases, is the compliance in certain circumstances to formalities provided by law such as, for instance, a valid written instrument. In general, this condition holds for contracts that may have serious consequences for the parties, or those for which certain measures of publicity are required.

#174 TnT on 06.09.17 at 12:42 pm: “Wow… the “Gold Star” generation is active today…..”

No idea what that is. Sorry.

#191 Penny Henny on 06.09.17 at 2:45 pm

Maybe Derek’s buyer, the Realtor, was going to do an assignment and it fell through.

#192 Squirrel on 06.09.17 at 2:49 pm

THE GOVERNMENT has caused tremendous issues for clients and the brokers community. We need Home trust back in the market. Presently, no one is qualifying with the banks due to increased CMHC premium, lending restrictions and lenders requirement…it’s killing clients, not helping them!

Private first residential mortgage in the GTA is now being offered at 8.99 to 9.99% RATE – 65% LTV to 75% LTV. You’ll obtain 80% if you’re lucky and be prepared to pay higher rate and fees. The fees are 3 to 4% on a first now on private – This is INSANE. In fact, many private lenders are out of capital. Options are minimum! These changes only affects clients and everyone having a tough time to close. Brokers are scrambling now to find alternative option for their clients since Home Trust is not funding and many other lenders who depended on Home trust money are stuck as well. How can a broker get by when they have to place their clients in an expensive private mortgage? There’s no room for us to charge a fee so pretty much we are all affected. Only the big banks are benefiting from the Government change and yet they themselves are losing business as no one can fit their qualifying requirements. Banks are pressuring their BDM to originate business – how can they when the Government ridiculous change affects the entire mortgage industry? Originating business is easy but closing deals have become horrid and clients pocket is feeling it.

http://mailchi.mp/56a7e6928dc0/clients-are-stuck-and-brokers-are-scrambling-what-is-the-government-doing

#193 bdwy sktrn on 06.09.17 at 2:50 pm

quickly turning into panic sell off aapl-5.7 nflx-6.5 and more…

#194 WelcometoSlurrey on 06.09.17 at 2:53 pm

Talked to someone who sold their house in slurrey for 1.1 mill ……….. i was a bit envious as they were happy about their windfall gain (bought for 700 prior) …….until they told me they bought another house for 1.2 . I’ve heard this many times before. I’m curious how much of the housing market is move up buyers. I wonder how many people are actually cashing out or just buying more house.

#195 For those about to flop... on 06.09.17 at 2:54 pm

Pink Pollen falling in Burnaby.

These guys could only afford to shave one percent off as they are already pretty much down to break even territory.

Burnaby is in an upward trend at the moment but as in a lot of cities it is the condos and townhome market that is driving the numbers.

Anyway, they are into it 1.30 and it is assessed at 1.35 ,sandwiched in between the two numbers.

Hey ,why did I say sandwich ,now I’m hungry…..Lunchtime…

M42BC

4582 Sunland Place, Burnaby

Oct 15:$1,399,000
Jun 7: $1,380,000
Change – 19000.00 -1%

https://www.zolo.ca/index.php?sarea=4582%20Sunland%20Place,%20Burnaby&ptype_condo=1&ptype_house=1&filter=1

https://evaluebc.bcassessment.ca/property.aspx?_oa=QTAwMDAzV0ZFOA==

#196 HCG Head Fake on 06.09.17 at 3:02 pm

So what happened to the collapse of Home Capital Group?

All those that bought when the price was down 60% just doubled their money – seems the share prices just keeps going up – now over $11.

If this is the canary in the coal mine for the subprime market, I think the canary just did a head fake and stayed alive.

The company will be acquired. Obviously. — Garth

#197 For those about to flop... on 06.09.17 at 3:07 pm

O.k ,one more before I tuck into my kangaroo patties for lunch.

This one is not Pink Pollen,but is significant in the regard to the disparity between the asking and the assessment.

Despite being assessed at over 20.5 million these guys will be lucky to get anything over 15m as this segment of the market is in tatters.

These guys will still make hay at some point if they want to ,but they don’t have the same stress as the guy’s on Point Grey Rd who are trying to get a similar number for their house but are into it 15million.

I wonder if rich people’s sweat smells the same as poor people’s?

Paul Allen never let me get that close to find out…

3333 The Crescent, Vancouver

Mar 2:$18,880,000
Jun 7: $16,888,000
Change: – 1992000.00 -11%

https://www.zolo.ca/index.php?sarea=3333%20The%20Crescent,%20Vancouver&ptype_condo=1&ptype_house=1&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=RDAwMDA2RlNRQg==

#198 jess on 06.09.17 at 3:08 pm

shared services?

BT drops PwC following Italian accounts scandal

BBC News · BT appoints KPMG
as auditor as PwC is ousted after 33 years in wake of Italian scandal

Telegraph.co.uk · BT replaces PwC with KPMG as auditor after accounting scandal

Accounting Today · 19 hours ago
More for bt scandal italy
BT Cuts 4,000 Jobs, CEO’s Pay After Italy Accounting Scandal …
https://www.bloomberg.com/…/bt-takes-aim-at-executive-pay-over-italy-accounting-s…
May 10, 2017 – BT Group Plc is clawing back management pay and eliminating 4,000 jobs as it seeks to rebuild investor confidence and overhaul the division involved in an accounting scandal in Italy. The cuts involve scrapping bonuses for Chief Executive Officer Gavin Patterson and former Chief

=
Republicans take aim at Dodd-Frank financial rules
especially the consumer protection branch

The U.S. House would undo those protections in H.R. 10, or Financial Choice Act, that would let Trump fire Richard Cordray, director of the bureau. No president has ever successfully fired an appointee with “for cause” protections that Cordray has, which protect against firing for political reasons. Officials in those positions can only be fired for inefficiency, neglect of duty or malfeasance. Consumer Financial Protection Bureau.

Republicans loathe Cordray and the agency, which has forced predatory and abusive companies to return $11.7 billion to consumers they stiffed.

The U.S. House would undo those protections in H.R. 10, or Financial Choice Act, that would let Trump fire Richard Cordray, director of the bureau. No president has ever successfully fired an appointee with “for cause” protections that Cordray has, which protect against firing for political reasons. Officials in those positions can only be fired for inefficiency, neglect of duty or malfeasance. Consumer Financial Protection Bureau.

Cordray, a former Ohio attorney general, is being targeted in a lawsuit brought by PHH Corp., a mortgage lender the bureau sanctioned for collecting $109 million in illegal kickbacks. PHH, which lost $67 million during the first quarter, is appealing that penalty. Trump’s lawyers at the Justice Department have sided with the company to argue that the bureau is too powerful
========================
=============
hard up?
Theresa May to form new government with support of ‘friends and allies’ in the DUP

From climate denial to abortion: six DUP stances you should know about ?
https://www.theguardian.com/politics/2017/jun/09/from-climate-denial-to-abortion-heres-six-dup-policies-you-should-know-about
=========
treaty shopping

New multilateral instrument to limit damage done by tax treaties
June 7, 2017 Blog, Tax Treaties

Today sees the signing ceremony of a new multilateral instrument (MLI) to limit the extent to which bilateral tax treaties create the conditions for large-scale multinational tax avoidance. The OECD’s Pascal Saint-Amans told the Financial Times (£) that “treaty shopping will be killed”.
http://www.taxjustice.net/2017/06/07/multilateral-instrument-tax-treaties/

#199 Rexx Rock on 06.09.17 at 3:13 pm

#163 You got it.Many people in Canada with money will just pack up and leave for a more affordable place to live.Also the smart ones will come to Canada flat broke and live of our system that was 10x better where they came from.

#200 d'Edmonton on 06.09.17 at 3:15 pm

#150 X on 06.09.17 at 9:30 am
re #56 + 59:

Not sure if you are insinuating that the buyer could be bankrupt, in which case they probably should not be shopping for 2 million plus homes.

IMO, Derek isn’t greedy at all. The buyer made the offer. Signed the contract. Then reneged. Shame on the buyer. They should be held accountable.
————————————————————-
My 2 cents:

What if the market was different and Derek’s home was worth 10% more at closing.

Would the buyer say: ‘Hey Derek I release you from your contract to sell me your house at the original price, here’s another 225,000’?

Or would the buyer turn the full heat of the contract on Derek?

#201 Lee on 06.09.17 at 3:43 pm

#172 Ace,

With full time jobs roaring back this month don’t expect housing in Toronto to drop. What’s holding the prices back right now is that buyers are just acting with a but more caution. There still there. They’re just holding three money for a bit longer.

#202 Mike in Edm on 06.09.17 at 3:45 pm

#155 Calgary Rip Off on 06.09.17 at 9:53 am

It does not apply to median detached houses in Calgary. Why? Rentals are about the same if not more for a similar mortgage. Both rentals and mortgages are expensive relative to what you will get.

This “housing crash” may happen in certain areas, it does not apply at all to Calgary. After living in Calgary since 2007, the housing has not returned to pre 2005-2006 levels where housing was more reasonable.
**************************************
What are you talking about? Renting in Calgary is insanely cheap compared to buying, but just recently (A few people on here mentioned a couple weeks ago) there was a huge flood of condo’s for $100k less than before listed.

There has been about a 40% price drop in rents over the last couple years. This comes from one of my best friends who lives in the Keynote building. And he calculates it to be over 50% for larger houses. He said he can rent a nearly new $1million+ house (3700sq ft), over looking a valley for $2000/month right now.

And I know tons of other friends that are massively subsidizing their tenants. The basic storey goes that 2 people are now married, both owned a house/condo/whatever, so they live in one, and can’t sell the other b/c they’re underwater on it and would lose money, so instead of taking like a $20k haircut now and pulling that bandaid off fast, they lose hundreds per month, AND have to deal with renters which pretty much every single one of them hates. And I fully agree. I was a landlord once and never ever ever again.

#203 Lillooet, BC on 06.09.17 at 3:56 pm

#181 Long-Time Lurker on 06.09.17 at 1:44 pm
JIM ROGERS: The worst crash in our lifetime is coming

****

JIM ROGERS is full of BS.
Pay attention to what W Buffett says …

#204 Lillooet, BC on 06.09.17 at 3:57 pm

Rogers is a nutbar. — Garth
***************

bingo!

#205 Hollywood Jack on 06.09.17 at 4:00 pm

#193 HCG Head Fake on 06.09.17 at 3:02 pm

So what happened to the collapse of Home Capital Group?

All those that bought when the price was down 60% just doubled their money – seems the share prices just keeps going up – now over $11.

If this is the canary in the coal mine for the subprime market, I think the canary just did a head fake and stayed alive.

The company will be acquired. Obviously. — Garth
——————————————————–
Didn’t Bank of America acquire Countrywide and lose billions on it?
Why would someone make the same mistake with HCG.

#206 Keith in Calgary on 06.09.17 at 4:01 pm

The brokerage always holds the deposit, per the listing agreement. — Garth

————————

Incorrect. You write your own listing agreement on their form. If the realtor won’t agree to it, you walk them, and get another one who will.

I struck all clauses regarding who holds the deposit, made sure the deposit cheque was payable to me, and kept by my lawyer, and was my property if the contract did not close, and I was the one who would lose. As well as, I struck all clauses pertaining to them getting paid for delivering a binding contract, regardless of whether or not it actually closed.

No close, no commission payment.

They fought me tooth and nail and I said if you don’t sign I’ll get someone else who will. They signed and it sold.

My lawyer could not believe it when he saw what I did. Having said that, I was a mortgage banker in my past life as I have posted here before.

#207 Ole Doberman P. on 06.09.17 at 4:02 pm

#181 Long-Time Lurker on 06.09.17 at 1:44 pm

JIM ROGERS: The worst crash in our lifetime is coming

http://www.businessinsider.com/jim-rogers-worst-crash-lifetime-coming-2017-6

Rogers: I learned very early in my investing careers: I better not invest in what I want. I better invest in what’s happening in the world. Otherwise I’ll be broke. Dead broke. Well, what’s going to happen is it’s going to continue. Some stocks in America are turning into a bubble. The bubble’s gonna come. Then it’s gonna collapse and you should be very worried.

I think Bill Gross said the same thing. If I have time later, I’ll look for the link.

Rogers is a nutbar. — Garth
——————————————————-
Didn’t Rogers team up with Soros to build the highest earning fund of all time: The Quantum fund

And now they are billionaires, maybe we should take note of his dire warning.

#208 n1tro on 06.09.17 at 4:11 pm

Large sums of (smart?)money went out of big name stocks which are in a lot of people’s mutual funds and ETFs. 1 day profit taking or reversal of the Nasdaq?

#209 Harvey Burger on 06.09.17 at 4:17 pm

#20 Ace Goodheart

————————————

Ace…I wish you good luck with your Aimia shares. That 36% yield will wither to nothing because the company is run by a bunch of charlatans who haven’t come up with an innovative idea ever. The epitome of corporate Canadian self-entitled douchebaggery.
Only in Canada could you have a company sit as a service provider between two oligopolies (card issuing banks and airlines), fund hundreds of millions of dollars in useless ‘Miles’ from interchange fees (2% off every credit card purchase) then expire 18% of the miles every year from their members’ accounts. Parasitic Canadian corporatism at its finest.

#210 conan on 06.09.17 at 4:20 pm

TEFLON test for Theresa May coming up. Heard she was done in by a growing Anti-Politics group. A bad move, on her part then, to propose lifting the ban on fox hunting.

The next Thatcher if she wiggles out of this?

https://www.youtube.com/watch?v=swWYEXLa_lI

#211 MF on 06.09.17 at 4:38 pm

#180 Xbox Economist on 06.09.17 at 1:24 pm

Any of those observations incorrect according to you?

Lol @ Trudeau

MF

#212 Howard on 06.09.17 at 4:47 pm

#207 conan on 06.09.17 at 4:20 pm
TEFLON test for Theresa May coming up. Heard she was done in by a growing Anti-Politics group. A bad move, on her part then, to propose lifting the ban on fox hunting.

The next Thatcher if she wiggles out of this?

https://www.youtube.com/watch?v=swWYEXLa_lI

—————————————–

She was done in by an extraordinarily concerted effort to get out the vote of students, SJW types, marxists, anarchists, anti-UK elements, etc.

Jeremy Corbyn has ties to terror-mongers and Holocaust-deniers. Really shows the utter hypocrisy of the Left. While they invent outlandish claims about innocuous centre-right politicians (as occurred here in Canada with Mr. Harper), they ignore REAL unsavoury facts about their own.

I think May will stay on to serve the term and negotiatie Brexit but almost guaranteed she will not lead the party into the next election.

#213 Stan Broock on 06.09.17 at 4:48 pm

#184 InvestorsFriend on 06.09.17 at 2:00 pm

But mega institutional bond holders are also buying ten year bonds to HOLD until maturity at like 2%.

Interest are determined by the supply of money to lend and the demand to borrow. Central banks are pushing up demand pushing down rates. But big institutions are also accepting the low rates. Everyone is accepting low deposit rates. WHY?

————————–
1. Pension funds are the one buying ‘safe’ bonds. Mandated in many cases by law/formal government guidance.

————————–

In spite of massive borrowing there is also massive savings. What is stopping the holders of deposits from shopping for higher interest rates or taking the deposits and paying off any loans they have? (which lowers the money supply)

——————————-
2. Why would a bank need money from you when it can get it from BOC at 0.5 % cost?

Wrong about the wealth in savings. All private savings are 800 billions, all private debt – over 2 trillion.
——————————-

I get back to the notion that the western world is largely “built out” We just don’t need that much investment. We are not seeing enough borrowing to invest to push up the demand for loans and push up the interest rate.

I also get back to the observation that the old people have mega wealth. There are not enough young people to borrow it unless we have rock bottom interest rates that entice the young to borrow massive amounts and sop up the available savings of the old people.

The lending markets perceive almost zero risk of borrower default. That’s because we keep lending people new money to make payments on old debt. When that music stops and defaults rise then interest rates will rise.

If you want higher interest rates, pray for higher loan delinquencies.
—————————–
3. You don’t understand the monetary system of credit money.

Most of the ‘wealth’ you mentioned is marginal, high valuations based on artificial policies.

Very few people I know have savings. Clearly with cheap money policies cash is no wealth.

It is pretty much a coupon system detached from markets.

#214 Howard on 06.09.17 at 4:53 pm

#198 Lee on 06.09.17 at 3:43 pm
#172 Ace,

With full time jobs roaring back this month don’t expect housing in Toronto to drop. What’s holding the prices back right now is that buyers are just acting with a but more caution. There still there. They’re just holding three money for a bit longer.

—————————————

This seems to be pulled out of you-know-where.

If the economy and job market is allegedly improving, it puts more pressure on Poloz to finally raise rates.

Oh and by the way, how much do those new full-time jobs pay relative to real estate in Toronto?

#215 conan on 06.09.17 at 5:28 pm

One more Brit election post, then I am done, not.

“Insiders also said Australian strategist Lynton Crosby was to blame for the result.”

That name rings a bell.

#216 akashic records on 06.09.17 at 5:33 pm

Rogers is a nutbar. — Garth

—-

I wouldn’t mind to be a nutbar like that.

#217 Lee on 06.09.17 at 5:47 pm

#211 Howard

With interest rate increases inching along from historical lows I guess you guys are ready to wait another nine years for a crash. You might not have Garth to blame by then.

#218 Daughter of Ponzi on 06.09.17 at 5:59 pm

All of you believers in contracts, let me remind you that your ancestors raped and pillaged this continent and had Indian chiefs sell their land for glass beads at the gun point. Off course they also had to sign on the piece of paper. Tt was such a brutal game. Stop babbling about your contracts and laws, they are a joke. Better bow to your queen and kiss her behind.

#219 Howard on 06.09.17 at 7:30 pm

Lee #214. Oh I’m sure not a single buyer will be affected when this so-called inching up of rates translate into a DOUBLING from 0.5 to 1.0 over the next year. We know how little debt Canadians hold.

#220 steerage steward on 06.10.17 at 12:20 am

There is a down side. They can’t make movies like this ever again

https://www.youtube.com/watch?v=cEVTQHiAQRA

#221 ozy - the trend MOVING forward on 06.10.17 at 1:21 am

Current stats: market tanked 9% in more than a month since May 1st

slower drops will continue, by OCT we will be sitting at ZERO appreciation since OCT 2016. Then it will flatten… backlog of buyers soooo large.. It will slowly creep up in NOV DEC by JAN the buyers will lose patience and market moves up 5% past December. My March, we are back to March 2017 levels then crash 20% again in May and never recover for another decade.

SELL SELL SELL (in January-February)

note: this is a honest, independent review from industry insiders. not standing to benefit from up or down in house prices, no mortgage, no second properties, just an honest opinion, etc

#222 steerage steward on 06.10.17 at 2:44 am

https://www.youtube.com/watch?v=cEVTQHiAQRA

#223 steerage steward on 06.10.17 at 2:49 am

https://www.youtube.com/watch?v=5WXVaChA3Q0

http://www.timescolonist.com/rising-debt-sizzling-housing-markets-leave-canada-more-vulnerable-central-bank-1.20475278

#224 steerage steward on 06.10.17 at 4:26 am

Canada’s housing market on the brink of ‘severe downturn,’ warns Capital Economics

http://www.bnn.ca/canada-s-housing-market-on-the-brink-of-severe-downturn-warns-capital-economics-1.774787

https://www.youtube.com/watch?v=Ik-RsDGPI5Y#t=110.88677

#225 Jonah on 06.10.17 at 4:27 am

Question is would buyer have backed down had this gone up to 2.5 million? No he had not. Time to sue the buyer not just for the difference in price but also stress, waste of time and breach of contract.

Buyer should have taken extreme care when putting forward the firm offer. Good luck Derek

#226 steerage steward on 06.10.17 at 4:37 am

BC NDP, poised for power, preparing for snap election
https://www.theglobeandmail.com/news/british-columbia/bc-ndp-poised-for-power-preparing-for-snap-election/article35279567/

https://www.youtube.com/watch?v=cNAEwTISqQ4