Lesser together

On May 15th, Moody’s downgraded all the big Canadian banks on fears of a potential housing crash. (Six days later the same ratings agency did the same thing to all the major Australian banks. Same reason.)

Yes, the banks have huge mortgage portfolios making them vulnerable to a real estate correction of, say, 30%. But they’re also financial behemoths. If the credit crisis of 2008 couldn’t bring ‘em to their knees, a property plop won’t either.

Wish I could say the same for the credit unions. Smaller, less regulated, more aggressive, these guys have been major players in many markets, spinning off unconventional and weirdo mortgages that the Big Six would shun. Vancity, Meridian, Duca – outfits like these could pose more risk going forward than a Home Capital Group ever did. And look at all the spray HCG shot on everyone.

Take Duca, for example. The credit union has 15 branches on Ontario now and about 60,000 members. Like its peers, it’s absolutely addicted to residential real estate. Currently it has a portfolio of $1.14 billion in outstanding residential mortgages, of which more than half ($595,741,000 worth) are not insured. No CMHC. No Genworth coverage. If house prices in its key markets – Brampton, Mississauga, Burlington, Orangeville, Whitby or Newmarket – take a hit and borrowers find trouble, then a company with only $13 million in earnings could be in the soup, too. (The Big Six banks together will pocket about $40 billion this year.)

Well enough about Duca’s financials. Let’s talk about its misguided clients.

One of the up-and-coming loan products is apparently the More Together Mortgage. Like Vancity in YVR, the credit union is actively pushing the idea of real estate crowdfunding. In this case the crowd can contain up to seven people, all of them on title and mortgage. Is this a cool idea in a world where Millennials think a ‘sharing economy’ works, or are the kids just idiots?

Well, it’s good for the lender, of course. When six or seven people take out a loan together, each is entirely responsible for the whole amount should one or all of the others default. So, presto, Duca has seven chances to collect a debt, instead of just one or two. Clever.

Anyway, here’s the sales pitch:

Home prices in Ontario are skyrocketing, seemingly putting ownership out of reach for many potential homebuyers. Not all hope is lost! There are alternatives to consider such as real estate co-ownership. Real Estate co-ownership allows you to share the cost of buying a home with friends, roommates, co-workers, or family members.

The key benefits claimed: buy a house with others that you couldn’t afford yourself, sooner. Get a bigger down payment to avoid mortgage insurance. And be able to split the substantial costs of owning among the other people wandering around your house.

Co-ownership is catching on for exactly these reasons. These are people, after all, who share cars, jobs and bicycles. Why not property? Well, there are good reasons, all of which fall under the longstanding GreaterFool rule: Never buy Real Estate with Anyone you do not Sleepeth With.

For starters, there’s the borrowing obligation factor mentioned above. If anybody walks, the other owners are immediately shackled with more debt and higher payments. And what is somebody loses a job, gets sued, marries a Kardashian or befalls another personal tragedy?  They might want out, meaning the other partners would have to buy that equity (for which financing would be difficult to find) or sell the property itself. Messy.

And taxes could be a tough go. Unless the whole gang lives in the place and claims it as their own personal residence (good luck with that) any gains upon the sale would be tax-free to the residents but a taxable capital gain for the others. The same applies to losses, of course. If the house is disposed of at a loss, then the resident-owners would be out of pocket entirely while the others could claim a capital loss and use it to offset taxable gains.

What if someone stops paying their share of property tax, insurance, maintenance, utilities or refuses to chip in for a new furnace? There has to be a locked-down co-ownership agreement in place with strict financial obligations set out. But if your roomy-owner doesn’t have a lot of assets, what’s stopping her from declaring bankruptcy and yet still living there? You can’t just throw her out, unless you really like cops.

Renewal? What happens if one of the six or seven people decides they can’t afford the higher rate, and bails? The lender might refuse to renew without more security, forcing a sale under miserable circumstances. And do you really know the history of your co-owners? What if one of them has a jilted spouse who makes a claim against the property over spousal support? Then Tiffany becomes everybody’s problem.

This is a lame, dangerous idea. There’s a reason the big guys wouldn’t touch it.

Where do you bank?

179 comments ↓

#1 Gregg in Victoria on 06.13.17 at 5:02 pm

Marrying a Kardashian would be a rather wise move, financially, no??

#2 waiting on the westcoast on 06.13.17 at 5:02 pm

Garth – do these products allow 5% down, etc., Rather than a 25% that a typical investment mortgage would expect? Do they all have to live at the residence?

#3 Ole Doberman P. on 06.13.17 at 5:05 pm

It’s clearly a ploy to target those brain washed into believing houses will never correct so might as well buy, anyway you can.

#4 technical analysis? on 06.13.17 at 5:08 pm

I’m surprised you haven’t said anything about the turnaround in BoC policy the last 2 days…

Yesterday. Try to keep up. — Garth

#5 Ole Doberman P. on 06.13.17 at 5:10 pm

some of my posts don’t seem to go through – anyone else having same problem?

this will be a test

#6 sharing economy on 06.13.17 at 5:14 pm

Makes you wonder what else these people are sharing… germs anyone?

When do people ever stop and think for themselves? Ouch, I’m asking for too much in this sharing economy.

Apparently they all share a few brain cells too!

It will catch on of course because it’s so cool and hip. Gotta have it and share it.

Doesn’t matter in the end. They’re all screwed anyway when SHTF. Good luck getting out “alive” when they’re expecting we all “share” our resources.

#7 Smoking Man on 06.13.17 at 5:16 pm

Garth you’re sweating the small stuff as indicated up top.

This is the crap that keeps me awake and addicted to good bourbon.

The trick in making safe passage for your loot is finding the right country.

Trudeau swallowed this bitter idea whole. Only trump can stop this insanity he’s my president.

https://www.thenewamerican.com/tech/environment/item/22267-un-agenda-2030-a-recipe-for-global-socialism

#8 Raging Ranter on 06.13.17 at 5:18 pm

‘Delores’ the Millennial. HAHAHAHAHA! Pretty sure you meant Kayleigh. Or Hayden, Jayden or Brayden if he’s a guy.

#9 Lee on 06.13.17 at 5:19 pm

Except as part of an investor group, I’d be surprised if more than .5 percent of house deals go this route. If it’s an investor group it’s no different than buying vacant land.

#10 TCContrarian on 06.13.17 at 5:31 pm

Sounds like ‘fun’ !! Let’s all get a place together GF dawgs!

As long as I get the master BR … and no chores! :-)

TCC

#11 EJ on 06.13.17 at 5:32 pm

RE #5 SM
Are you the “New American”? The guy is not even your president (not that he is anybody’s, except the ‘I just had a lobotomy’ club). You could just get your mythical riches together and book a flight to Mars; it will condition you as to what Earth will look like in a few years. Have fun enjoying your loot then (not that you have any).

Here’s how smart the New Americans are: (Go Sam Houston!)
http://www.houstonpress.com/news/houston-media-pranked-by-alt-right-facebook-trolls-9488700

#12 Dave on 06.13.17 at 5:38 pm

If one of the credit unions hit financial distress someone larger will just take them over. If there are folks interested in HCG then surely someone will be interested in Vancity.

#13 Andrewski on 06.13.17 at 5:38 pm

Equally scary is this other option through VanCity:

https://www.vancity.com/Mortgages/TypesOfMortgages/SpringboardProgram/

“Purchase a home worth up to $300,000 with no down payment.
Qualify for a loan with no prior home ownership experience.”

Say what!!

#14 Howard on 06.13.17 at 5:44 pm

#4 sharing economy on 06.13.17 at 5:14 pm
Makes you wonder what else these people are sharing… germs anyone?

When do people ever stop and think for themselves? Ouch, I’m asking for too much in this sharing economy.

Apparently they all share a few brain cells too!

It will catch on of course because it’s so cool and hip. Gotta have it and share it.

Doesn’t matter in the end. They’re all screwed anyway when SHTF. Good luck getting out “alive” when they’re expecting we all “share” our resources.

————————————-

You don’t get it.

Young people today seek experiences, not material goods like the Boomers did. They don’t give a rat’s behind what kind of car someone drives or what sort of handbag one is carrying. Boasting still has its place, but it has to do more with an interesting course one has taken, or picking up a new hobby, or finding a neat hole-in-the-wall restaurant that serves great palak paneer… to make one seem interesting. Flashing a new $2000 Hugo Boss suit won’t do it; you just end up looking like a douche.

Boomers just don’t seem to understand it. For them life was a never-ending materialistic competition with their neighbours. The younger generation doesn’t see life that way.

I do agree with Garth’s rule though, although I’d edit it to read : Never buy Real Estate with Anyone you do not Sleepeth With *Regularly*.

#15 Doug t on 06.13.17 at 6:09 pm

These institutions will have us by the short hairs once crypto currencies become the norm – no physical cash, no privacy, no control, no power, more fees, more charges, less and less options – big brother knows what they want and we seem to be incapable or apathetic to do anything about it.

RATM

#16 Trez on 06.13.17 at 6:12 pm

Hey garth. How do you feel about blue shore financial ( formerly north Shore credit union)?

#17 Daughter of Ponzi on 06.13.17 at 6:16 pm

It was a pleasure commenting on this blog last few days. I leave you now and wish you all happy housing crash! And happy Festivus for the rest of us. Ta-ta

#18 buyer remorse on 06.13.17 at 6:20 pm

Creative way to get out of buying contract.

http://www.movesmartly.com/2017/06/detached-home-for-sale-is-actually-linked-to-property-next-door.html

http://www.movesmartly.com/

#19 fred stranwick on 06.13.17 at 6:24 pm

People share hair buns?

#20 Lulu on 06.13.17 at 6:27 pm

Let the rates rise like a tsunami, Poloz finally waking up, savers may finally able to taste some good jello.

No way jose that I’ll share a mortgage with strangers, nope, nah, not gonna happen EVER!! Only my SO will be in the chair since we share everything( if you know what i mean) :)

If someone that stupid fall for that crap, well, let them have it and when the shtf, they can have a WWF on every major headline news….LOL

#21 JSS on 06.13.17 at 6:28 pm

Them Ukrainian credit unions in Manitoba are pretty good I hear

#22 Millennials are good obedient puppets on 06.13.17 at 6:29 pm

Millennials think a ‘sharing economy’ works, or are the kids just idiots?

Millennials are by far the most educated but the dumbest generation im history. They are puppets of education propaganda in believing they are so smart when in reality they are stuuuupid puppets. Who else would buy $400k houses for $1.4 million?

#23 Smartalox on 06.13.17 at 6:31 pm

These ‘Co-Mortgages’ may be marketed at Millennials, but they’re really designed for groups of ‘specuvestors’.

An “investment club” of current homeowners leverages their equities by taking out HELOCs. They pool their HELOCs to make up more than 35% of the purchase price of a million-dollar tear-down, in a decent neighbourhood, then get one of these group mortgages for the rest of the amount, plus tear-down costs and renovation budget.

The members of the club (the co-mortgage holders) make the payments while the new home is being built (each carries a portion of the monthly mortgage payment, so it’s easily manageable) and for some time after – say a year – where documents like cable or phone bills arrive at the house, to establish each family’s ‘residency’ in the property.

Then the newly built-but not lived in – house is sold for double or triple money, the co-mortgage is either paid off, or if you’re really ballsy, ported by the club to a new property, and the cycle repeats.

Any profits drawn from the sale of the improved property go into the pockets of the club members (who may or may not use their copies of utility bills to each bolster claims of residency, and therefore a principal residence exception), or are used to finance more or larger down payments on other properties that the ‘club’ invests in.

Seven members each put $75k on HELOC for $525k

#24 SimVan on 06.13.17 at 6:38 pm

A couple of years ago, when people still went to Canucks games, my brother-in-law had two lower bowl season tickets that he shared with his best friend. They split the tickets which I understand at that time cost between $15,000 and $20,000. This set up went on for a number of years. Then all of a sudden the friend stopped paying for his tickets and started avoiding my brother-in-law’s calls. My brother-in-law had to cover the entire season by himself. The next year my brother-in-law gave up his season tickets and their friendship has never been repaired.

Now replace that $15,000 to $20,000 with $1.2 million and what would happen if you were dumb enough to go into a house with a deadbeat friend.

#25 Fake News on 06.13.17 at 6:49 pm

Of course there will be no problems with the Canadian banks. The BOC will just “give them” 140 billion dollars of freshly printed out of thin are money at interest like they did in 2008. Nothing to see here move along.

#26 lala on 06.13.17 at 6:49 pm

Lala don’t share things after a dude stole my sandwitch when I was 5.

#27 Smartalox on 06.13.17 at 6:53 pm

Sorry, I hit submit too early.

Seven members each put $75k on HELOC for $525k. Figure $400k for a 35% down on $1.15M fixer-upper, a $850k mortgage, split 7 ways, for a 24 month term, you’re looking at about $500 per month, per member, or about $12k in payments over 24 months.

At the end of that time, the club sells the property for $2.5M. One or more of the club members handle the deal (i.e.: they’re realtors), so commissions are reduced. Pay off the rest of the mortgage ($850k – (7 x $12,000) = $766k),

And split the remainder among the club members($1.7M / 7 = $242k). Even if you deduct the initial buy-in ($75k), each member is still netting $167k, or $80k per year,

And if you play your cards right, it’s:
1) Tax-free (remember the part about two years’ worth of utility bills and claiming the personal residence exemption?) and
2) Not counted against your professional income – especially if the ‘club member’ is a “student” or a “home maker” with little reportable income, and who is listed as a owner by marriage on the property used to obtain the HELOC for the initial buy-in.

#28 Kevin on 06.13.17 at 6:53 pm

I didn’t know you could claim a capital loss on a house as it is considered personal use property. It’s one of those one way street things with the CRA – losses are yours only, and gains are shared with the government.

#29 Garth's and Gibbs' Rules on 06.13.17 at 6:57 pm

“… the longstanding GreaterFool rule: Never buy Real Estate with Anyone you do not Sleepeth With.”

The above is similar to one of Gibbs’ rules (from NCIS): “Rule number one: Never let suspects stay together.”

Do you have a complete list of rules, Garth? :)

#30 Binder Dundat on 06.13.17 at 7:01 pm

@ Raging Renter

“Delores’ the Millennial. HAHAHAHAHA! Pretty sure you meant Kayleigh. Or Hayden, Jayden or Brayden if he’s a guy.”

I have neighbour who is a teacher, and last year her class of 23 students included the following names: Aiden(male), Ayden(female), Brayden, Drayden, Jayden, and Kayden. Even worse, there was a Steelynt. No kidding.

#31 BlogDog123 on 06.13.17 at 7:02 pm

But those DUCA radio ads have a catchy tune, make me feel so loved! I gotta get me a house, before I miss out! The wife’s been nagging that we’re losers living in this apartment!

Thanks DUCA for lending me the money when I obviously cannot afford to carry this property. But my wife insists I make it happen.

#32 the Jaguar on 06.13.17 at 7:04 pm

Mercy. Garth has given us a kitty photo today. An orange one as well. Like all redheads, being slowly ‘phased out’.
Speaking of photos….picked up a coffee table copy of the recent Advisor magazine cover today in the bowels of some financial institution. How on earth does Doug Rowat fit into a little tiny Porsche? His feet are huge. Part kangaroo, I reckon.
On a more financial note, good read on the back page of the National Post this morning. Marc Cohodes providing a little more enlightenment on the Home Capital debacle. 45 mortgage brokers fired along with two inside employees. 6400+ mortgages underwritten with fraudulent employment information. Holy Dinah! That’s a lot of mortgages. Once again, a lack of oversight and supervision the real culprit, not OFSI regulations. Pass all the laws you want OSFI.. it doesn’t replace “boots on the ground”.

#33 RentYVR on 06.13.17 at 7:11 pm

This is simply just a joint investment vehicle. But yeah, it’s crazy to tie yourself to others when you could get left holding the bag.

And for the record, I’m still saying the next BoC move is down not up. There is no chance that they raise rates when real estate starts to correct, no gov’t is going to let that happen and face the wrath of angry homeowners/voters.

#34 Smoking Man on 06.13.17 at 7:18 pm

9 EJ on 06.13.17 at 5:32 pm
….
Chirp all you want. Imagine what you will.

Take a trip to Cuba, that will be Canada in 10 years from now less the great weather. Maybe sooner.

What troubles me is you lefty loons have no idea whats in store for you when shit hits the fan. When you realize in mass that you have been dupped.

Brown shirts won’t be coming for me. They will be going after all the loyal mindless followers that wake up and serously are pissed off. The lefties are the one’s filled with hate and demonstrate tendancey for violance, Antifa.

They are the true danger to the machine. And will be eliminated first.

PS. Mars. Been there done that.

#35 MSM-Free Zone on 06.13.17 at 7:20 pm

Always wondered what kind of intelligence it takes to elect an insecure, self-absorbed, thin-skinned serial liar with the attention span of a seedless watermelon as one’s personal saviour and POTUS.

Then I discovered how the parents of the victims of the Sandy Hook incident have since been continually harassed and bombarded by conspiracy theorists who perpetually claim that the incident was a complete fabrication to advance gun control in the country.

Only then did the U.S. election then make perfect sense to me.

#36 Michael Francis on 06.13.17 at 7:25 pm

Lesson#1. Do not buy property with a person you do not sleep with.

Lesson#2. Do not buy property with a person you do sleep with.

#37 crowdedelevatorfartz on 06.13.17 at 7:30 pm

@#15 Ponzi’s daughter
“I leave you now and wish you all happy housing crash….”
*******

Wait! Waaaaaaait!
We have a prize for just participating…..cuz thats what the world has devolved into….
Its a black ribbon attached to a rusty tire rim.

It think it should fit over that self important head of yours.
Enjoy that politically correct Festivus celebration. I’ll be thinking of you next Dec. when I’m singing Joy to the World the angels sing…..Not very PC but what the Hell…..we cant all be expected to be nonpolitical, non religious, androdgynous, vegetarian bores…

Dont let the LGBTQ2 bathroom door hit you on the way out.

#38 Wrk.dover on 06.13.17 at 7:31 pm

I see Felix is back.

43 years ago we rented our commune. Paid 6 months in advance. Money had no part in the resulting equation.

The Loser Corps should read history, or at least the first 60 issues of The Mother Earth News, if they want to get it right.

You can’t homestead in the city, Folks. And you won’t a find life worth living there either. Just recurring expenses.

Money earned off property gets spent off property.

#39 Daughter of Ponzi on 06.13.17 at 7:33 pm

this:http://www.zerohedge.com/news/2017-06-13/dead-giveaways-imperial-decline

#40 Ace Goodheart on 06.13.17 at 7:36 pm

If you live long enough you learn to see the silly investment decisions that people make as a group. You learn to watch the herd detached from it and you learn to strike at the right times. There is a lot of really good money making opportunities right now.

#41 Fish on 06.13.17 at 7:36 pm

Me myself and I, sounds just about right

#42 Nonplused on 06.13.17 at 7:37 pm

Buying a house with someone else (or 7 someone else’s) is about the same thing as being married to them. If they aren’t sleeping together they may as well.

I’d be up for the arrangement but it’ll have to be me and 6 ladies. Well hopefully not true “ladies”, but you get the idea. Better take out a HELOC and get a hot tub too.

It does highlight a point though. In this day and age every living arrangement needs to be covered by a 75 page legal document, even marriage. All of the above potential pitfalls Garth highlights of “co-ownership” now currently apply to marriage as well. The courts have gone crazy and everything is about dividing assets and income, even if one of the parties doesn’t even work! If you have a son, buy him a vasectomy and a motorcycle for his 18th birthday. He might still get a rash, but at least that can be treated. Better than having a kid he’s not allowed to see but has to spend all his disposable income on.

It is no wonder that the marriage rate is falling. It’s a total crap shoot and most of them fail catastrophically.

#43 i'm not poloz on 06.13.17 at 7:46 pm

I actually do believe that Mark is right about the Loonie….It’s at $75.5 cents US….I wonder which Gulf country is hoarding all of those $20 Canadian and $100 bills?

Poloz still wants a 50-cent loonie, but I hope he isn’t planning on doing anything crazy other than scaring investors about devaluing the Loonie to boost exports….At least Poloz isn’t planning to drive any large vehicle the wrong way.

#44 Game Changer on 06.13.17 at 7:51 pm

#12 Howard

You don’t get it.

Young people today seek experiences, not material goods like the Boomers did. They don’t give a rat’s behind what kind of car someone drives or what sort of handbag one is carrying. Boasting still has its place, but it has to do more with an interesting course one has taken, or picking up a new hobby, or finding a neat hole-in-the-wall restaurant that serves great palak paneer… to make one seem interesting. Flashing a new $2000 Hugo Boss suit won’t do it; you just end up looking like a douche.

Boomers just don’t seem to understand it. For them life was a never-ending materialistic competition with their neighbours. The younger generation doesn’t see life that way.

I do agree with Garth’s rule though, although I’d edit it to read : Never buy Real Estate with Anyone you do not Sleepeth With *Regularly*.
———–

Despite professing to want the ‘experiences of life,’ millennials are chomping at the bit to buy real estate – and they have been one of the biggest market movers in this bubble.

While professing their desire to be free and creative and have meaningful work, they are the first to sign up for the ‘death contract’ of a mortgage as soon as they can. They willingly tie an albatross around their neck through their purchase of real estate in their 20s.

They are just like their parents – except they want, expect, and demand what their parents have right now.

Sorry, but they love the bling and all the material ‘experiences’ it can bring…

#45 Andrewski on 06.13.17 at 7:55 pm

Re: #33 MSM… Google Alex Jones, a total nut bar. Then add Donald Trump in to that search. POTUS Bufoonus!

#46 Sitting on the toilet thinking on 06.13.17 at 7:59 pm

#12 Howard

You don’t get it.

Young people today seek experiences, not material goods like the Boomers did. They don’t give a rat’s behind what kind of car someone drives or what sort of handbag one is carrying. Boasting still has its place, but it has to do more with an interesting course one has taken, or picking up a new hobby, or finding a neat hole-in-the-wall restaurant that serves great palak paneer… to make one seem interesting. Flashing a new $2000 Hugo Boss suit won’t do it; you just end up looking like a douche.

Boomers just don’t seem to understand it. For them life was a never-ending materialistic competition with their neighbours. The younger generation doesn’t see life that way.

I do agree with Garth’s rule though, although I’d edit it to read : Never buy Real Estate with Anyone you do not Sleepeth With *Regularly*.
————————————————————–

Except for the selfies they take advertising the new hole in the wall that serves avocado salad to die for that costs 19 dollars. Instead of bringing some leftovers for lunch and actually saving some money

#47 Bob Dog on 06.13.17 at 8:01 pm

DELETED

#48 choptstix on 06.13.17 at 8:02 pm

Business in Vancouver:
”Political lock puts B.C. landlords in limbo
Potential changes could affect sales, competition, demolitions”

https://www.biv.com/article/2017/6/political-lock-puts-bc-landlords-limbo/

#49 HCG is finished on 06.13.17 at 8:03 pm

Dave on 06.13.17 at 5:38 pm
If one of the credit unions hit financial distress someone larger will just take them over. If there are folks interested in HCG then surely someone will be interested in Vancity.

No one is interested in HCG. You believe in propaganda. Why do you think they got a 2B loan @ 15-22% interest backed by 5B in assets? HCG is a dead man walking.

#50 A Reply to #31 RentYVR on 06.13.17 at 8:04 pm

“There is no chance that they raise rates when real estate starts to correct, no gov’t is going to let that happen and face the wrath of angry homeowners/ voters.”

You were obviously not alive in 1981. Boomers really should educate their millennial children.

#51 rainclouds on 06.13.17 at 8:05 pm

#12 Howard

Really. the moisters aren’t materialistic?

Guess u don’t live in Van. McLarens, lambos, Maseratis, Driven around with N’s on their rear bumpers. Mommy gets by with the Mercedes, Range rover, Beemer.

Who is buying the condos ?

Sure …..experiences.

#52 Damifino on 06.13.17 at 8:11 pm

#49 rainclouds

Nailed it.

#53 choptstix on 06.13.17 at 8:11 pm

#4 sharing economy on 06.13.17 at 5:14 pm
Makes you wonder what else these people are sharing… germs anyone?

When do people ever stop and think for themselves? Ouch, I’m asking for too much in this sharing economy.

Apparently they all share a few brain cells too!

It will catch on of course because it’s so cool and hip. Gotta have it and share it.

Doesn’t matter in the end. They’re all screwed anyway when SHTF. Good luck getting out “alive” when they’re expecting we all “share” our resources.

————————————-

You don’t get it.

Young people today seek experiences, not material goods like the Boomers did. They don’t give a rat’s behind what kind of car someone drives or what sort of handbag one is carrying. Boasting still has its place, but it has to do more with an interesting course one has taken, or picking up a new hobby, or finding a neat hole-in-the-wall restaurant that serves great palak paneer… to make one seem interesting. Flashing a new $2000 Hugo Boss suit won’t do it; you just end up looking like a douche.

Boomers just don’t seem to understand it. For them life was a never-ending materialistic competition with their neighbours. The younger generation doesn’t see life that way.

I do agree with Garth’s rule though, although I’d edit it to read : Never buy Real Estate with Anyone you do not Sleepeth With *Regularly*.
———————————————————-

too easy a generalization…i see many young people wanting to drive the coolest $$ beamers, audis etc.
and they sure do believe in flash.

#54 choptstix on 06.13.17 at 8:13 pm

#12 Howard

Really. the moisters aren’t materialistic?

Guess u don’t live in Van. McLarens, lambos, Maseratis, Driven around with N’s on their rear bumpers. Mommy gets by with the Mercedes, Range rover, Beemer.

Who is buying the condos ?

Sure …..experiences.
——————————
exactly!

#55 Dan.t on 06.13.17 at 8:19 pm

What is all this junk about millennials? If they were smart they would not be buying 800k crap houses … then again when mommy and daddy fork over couple hundred K, it makes it much easier.

millennials In my opinion are a messed up and undisciplined and financially illiterate bunch.

How are people ok with paying 200+ thousand to others who simply bought a year earlier, painted a wall and are cashing out at your expense or in BC, giving some boomer 1.5 mil to fund their retirement while you the buyer (normal working Canadians) get to serve the big banks for 30 years if you are lucky and rates stay at 0%.

This housing fascination in Canada is unreal. If government actually cared about affordable housing, they would end speculation, actually enforce laws, go after tax evaders, and regulate the real estate industry but too much money is being made. Screw the people. Government works for government.

#56 she who must be obeyed on 06.13.17 at 8:19 pm

Garth, Can you do a piece on Equitable Bank and the high interest rates they pay? My Dad is pushing me to open an account with them because I can get a whopping $25 for doing it. Sheesh……

#57 Editrix on 06.13.17 at 8:21 pm

Lesson #1 is never buy property with someone you aren’t sleeping with or could Lesson #2 be never buy property with someone who didn’t conceive you?

#58 Habitt on 06.13.17 at 8:24 pm

Back in the sixties my grandparents had a three story duplex in what is know as lowertown in Ottawa. On the top floor was an aunt her husband and three children. The middle floor housed my grandparents uncle Bill and and an uncle and his wife. There were spaces for others should the need arise. They had no car and half of them worked. The rest of the family would meet there every Sunday for a meal. People today might say that’s poverty. Not. They were happy with real values and everyone had a role. How we doing now eh? People happy? Perhaps we are going back to those days. Didn’t seam so bad and folks had respect for others. Just saying

#59 AGuyInVancouver on 06.13.17 at 8:25 pm

#1 Gregg in Victoria on 06.13.17 at 5:02 pm
Marrying a Kardashian would be a rather wise move, financially, no??
___________________________
Financially maybe, psychologically no.

However, I have a more pressing question for Garth. Is the rule still valid if I make it a mission to sleep with all my friends before buying with them? I’ll only choose the hot ones to buy with, of course.

#60 MF on 06.13.17 at 8:28 pm

#20 Millennials are good obedient puppets on 06.13.17 at 6:29 pm

It’s a dumb move no doubt, but where can we find a house for 400k? Not in the GTA.

I think a lot of us millennials are just trying to adapt to the situation. Remember, people took on huge debt because it was encouraged and enabled through major institutions (BoC, CMHC, big banks etc.). All of these are currently headed by boomers.

The current options are:
-spend too much on rent and watch your landlord make capital gains (so far).
-spend too much and go in debt, but hopefully make capital gains (so far).

MF

#61 bigrider on 06.13.17 at 8:30 pm

Seriously Garth, what do you think all these furnace fornicators and three-car garage threesome seekers in the GTA going to do if the housing market here really implodes ??

I got a guess for you. They will be calling their financial advisors to redeem liquid assets in order to make good on over extended mortgages and second properties they thought they were going to flip and now have to close on.

Be careful what you write and wish for.

#62 CV5 on 06.13.17 at 8:43 pm

“If the credit crisis of 2008 couldn’t bring ‘em to their knees, a property plop won’t either”

The awful truth is that Canadian banks were stealthily
bailed out in the amount of $114 Billion. That was then. Tragically, this present day uber-bubble is beyond reckoning.

“at some point received aid more than the value of the BANKS THEMSELVES…” @5:10

https://www.youtube.com/watch?v=9K_N0uOXkQA

We are pooched this time around folks. Better prepare for the worst.

#63 MF on 06.13.17 at 8:46 pm

#42 Game Changer on 06.13.17 at 7:51 pm

It’s difficult to lay blame. The CMHC and BoC are all headed by boomers who have created horrific policies.

As for millennials and debt. I guess it makes sense. A changing job market means most positions are contract, temporary, and with lower pay. RE has provided tremendous leverage that has meant big gains on the way up in the midst of such a market (so far).

The big job market game changers were:

1) NAFTA
2) Continued globalization
3) 2008

Things were getting bad by the mid 2000’s as education inflation increased and outsourcing caused many jobs to just disappear, but 2008 put a stake it in it. People still are able to find work, and often do well, but it’s different than pre 2008.

That being said, I understand it was never easy though. My dad was unemployed for a long time even after getting a PHd from U of T in the mid 80’s as an example. But you cannot deny that the job market has changed here in North America over the last two decades, and that our struggles are different than the ones faced by our boomer parents.

MF

#64 Fake News on 06.13.17 at 8:48 pm

#43 Andrewski on 06.13.17 at 7:55 pm
Re: #33 MSM… Google Alex Jones, a total nut bar. Then add Donald Trump in to that search. POTUS Bufoonus!

______________________________________

Google the Clinton Crime Family then tell us how crazy Alex Jones and Trump are. Please I beg you.

#65 Bob dog on 06.13.17 at 9:05 pm

Physical slavery requires people to be housed and fed. Financial slavery requires people to feed and house themselves.

#66 Guillaume on 06.13.17 at 9:18 pm

As you’re mentioning credit unions – why no mention of the biggest of them all by far, Desjardins? Though I suspect this one’s much more solid…

#67 young & foolish on 06.13.17 at 9:20 pm

Hey … what’s with all the attacks on young people? You better show some respect, or we’ll balk when you’re ready to hit the sell button!

#68 young & foolish on 06.13.17 at 9:22 pm

BTW … still waiting for a response from one of you geniuses regarding the alleged weaknesses of passive investing (ETFs) … any takers?

#69 Doug t on 06.13.17 at 9:24 pm

#37

I thought you were leaving

But thanks for the “of two minds” article I read hint regularly

#70 Dee on 06.13.17 at 9:25 pm

The only thing that held this sucker up was fraud. You cant tell me banks lent out blindly. Even after accounting for cmhc the numbers didnt make any sense. I finally figured it out in 2016 and it put me at peace. The party is over now. It all started with home cap.

#71 Hans on 06.13.17 at 9:35 pm

@ #30 Jaguar….

Cohodes is a joke. A rich joke but a joke nonetheless. Look at the business model. If he didnt get airtime with the media who loves a good corruption story, he wouldnt make anything. Like Carson Block. If investors truly want to look at accounting deceptions….heck, I hate to paint the whole industry but thats what accounting is. Hcg isnt a criminal organization. Several broker engaged in falsified letters…..no real surprise. Key is delinquencies. Cmhc is saying that the delinquency rates are low and have stayed low. So wheres the smoke? Panic causes a run, Cohodes loves it bc finally his short is coming thru and then he throws some inflammatory fuel to the fire by saying hes been talking to regulators. Sure you have Cohodes. Sure you have. Im surprised these short and distort characters can do what they do without getting completely nailed in court.

#72 acdel on 06.13.17 at 9:50 pm

Interesting read.

http://investmentwatchblog.com/2017-is-going-to-be-the-worst-retail-apocalypse-in-u-s-history-more-than-300-retailers-have-already-filed-for-bankruptcy/

#73 InvestorsFriend on 06.13.17 at 9:54 pm

IRONY

#23 Fake News on 06.13.17 at 6:49 pm

Of course there will be no problems with the Canadian banks. The BOC will just “give them” 140 billion dollars of freshly printed out of thin are money at interest like they did in 2008. Nothing to see here move along.

**********************************
Fake 2008 news. The banks sold mortgages to receive that cash. The government made money on the deal as the mortgages got paid off with interest.

Did you buy and banks stocks between then and now?

#74 EJ on 06.13.17 at 9:54 pm

RE Smoking Man
Yes, I believe you are still on Mars. A great thinker once said,”If someone thinks they have been to another planet, let them think that. In fact, encourage it; this contains the illness to a harmless arena. Once the illness spills into the street, everyone suffers.”…

And the name-calling, classy–you should really take it up on twitter. Maybe you can write (when sober, not stoned, or semi-in touch with really) something really profound like “Pfffft!”

Anyway, I only read and occasionally comment here because I get a kick out of Garth trying to educate those who really cannot be educated. Is there intelligent life out there? Not here.

#75 cramar on 06.13.17 at 9:59 pm

#44 Sitting on the toilet thinking on 06.13.17 at 7:59 pm

Except for the selfies they take advertising the new hole in the wall that serves avocado salad to die for that costs 19 dollars. Instead of bringing some leftovers for lunch and actually saving some money

——————–

Right on! The Millennial life is soooooo overrated!

This Boomer enjoys an avocado salad most every day with a large variety of organic greens from my garden. Cost is for 1/2 an avocado, a few grape tomatoes and sunflower seeds, feta goat cheese, with organic balsamic vinegar and cold-pressed extra virgin olive oil. (Just wait until the heritage tomatoes come.) Total cost probably about a loonie. Enjoying this with lots of savings invested is all the more enjoyable.

#76 Vanrentor on 06.13.17 at 9:59 pm

The new millennial theme song

https://www.youtube.com/watch?v=g9Aaf1fWdLQ

#77 Syd Cixel on 06.13.17 at 10:08 pm

I am a member of a credit union, and it does not offer any product resembling the described mortgage.

#78 lala on 06.13.17 at 10:09 pm

Talk no more, lala knows better. Here is the reason why we will have a crash. https://trends.google.ca/trends/explore?q=Toronto%20housing%20bubble

#79 Smoking Man on 06.13.17 at 10:09 pm

#72 EJ on 06.13.17 at 9:54 pm
RE Smoking Man
Yes, I believe you are still on Mars. A great thinker once said,”If someone thinks they have been to another planet, let them think that. In fact, encourage it; this contains the illness to a harmless arena. Once the illness spills into the street, everyone suffers.”…

And the name-calling, classy–you should really take it up on twitter. Maybe you can write (when sober, not stoned, or semi-in touch with really) something really profound like “Pfffft!”

Anyway, I only read and occasionally comment here because I get a kick out of Garth trying to educate those who really cannot be educated. Is there intelligent life out there? Not here.
…..

Ed. I have a wierd sort of skill set. See the future, mind you its always a bit foggy when its totaly clear.

Deplorables will save the human race. Obviously you never purchased a copy.

No enlighten meant for you.

#80 Debtslavecreator on 06.13.17 at 10:20 pm

Hans- you don’t know what you’re talking about
HCG is a corrupt FI
Well known place for shady brokers. Default rates remain low there as well as most of Ontario due to the late stages of the greatest debt bubble in history. The rate of growth in debt,especially RE debt which is unproductive, has far exceeded the ROG in labour force growth , productivity and capital investment
This massive debt bubble temporarily increased GDP/ incomes and also asset prices which permitted even larger mortgages to be issued
Word out there is that possibly 30 % of alt lender mortgages are fraudulent
Now that the massive debt bubble has ended or at least stalled the GDP/income will stall very shortly and asset prices will come down
In the US defaults hit about 10% of all mortgages for a typical FI and loss rates on the fraud mortgages will be much higher
Home Trust is levered about 16-1
A loss of 10 % 2-3 years out will wipe them out
Cohodes is totally correct
These alt lenders funded enough mortgages to unqualified borrowers to seriously impact many markets in the GTA. Prices are set at the margin
And no, DONT blame the majority of lenders who acted within the law for the upcoming BUST
Every borrower CHOSE to apply out of their free will and borrower the money
Even if the borrower or broker cheated or the lender cheats it does not change the fact that 99.9% of the blame rests with borrowers
The other .1 look at the BofC and government and senior executives at lenders
Nobody forced you to borrow !!!!

#81 Smoking Man on 06.13.17 at 10:22 pm

#74 Vanrentor on 06.13.17 at 9:59 pm
The new millennial theme song

https://www.youtube.com/watch?v=g9Aaf1fWdLQ
….

I have a problem with this. Getting baked after 9pm and sharing tunes is my shtick.

Carry on my wayword son.

https://youtu.be/2X_2IdybTV0

#82 Bottoms_Up on 06.13.17 at 10:35 pm

#228 -=jwk=- on 06.13.17 at 3:56 pm
————————————–
Hotel east of vanier in Orleans:

https://m.ihg.com/hotels/holidayinnexpress/us/en/hoteldetail/yowor?cm_mmc=GoogleMaps-_-EX-_-CAN-_-YOWOR

#83 Smoking Man on 06.13.17 at 10:40 pm

Youth today. Not taught real stuff. A failed George Soros screen play. Money don’t make you smart. Smart makes you money.

Kids. The 600 sqft pie in the sky and a memeber ship card to the green cyclist sociatiy don’t make you smart. The tunes of my youth do.

Learn. Lessons on GF between 9pm and Midnight

https://youtu.be/y4RyZpFfIYY

#84 tri-guy on 06.13.17 at 10:48 pm

if real estate has a 10% correction will mpac give us a 10% rebate on property taxes…assessed market value

#85 Smoking Man on 06.13.17 at 10:51 pm

No longer fit in DM world. Im off script.

In August, dogs come sail away with me. It will be a good escape when you are on you knees, head facing east while thrives are going through you wallet in the change room. Focus on the word change.

https://www.youtube.com/watch?v=7rMlwqdonj0&sns=tw via @youtube

#86 T-Rev on 06.13.17 at 10:53 pm

At ATB, mainly, being the unapologetically enlightened Albertan I am. I use one of the Big 5 for self directed investment. Long live the crown corporation that is Alberta Treasury Branches- the service is beyond great.

#87 Smoking Man on 06.13.17 at 11:09 pm

Coal miners.

This is for you. Back bone of life. Family men.

https://m.youtube.com/watch?v=Y9HnjeJwm9A

#88 Smudgekin on 06.13.17 at 11:25 pm

“Moody’s downgraded all the big Canadian banks..”

They’ll be fine, being their patch and their doing.
For those of us who know ropes: The Brits are a Civil Service. Canada is 6 banks.

#89 Jamal on 06.13.17 at 11:40 pm

“GreaterFool rule: Never buy Real Estate with Anyone you do not Sleepeth With.”

Good opportunity for credit worthy members of Swingers Canada Club

#90 conan on 06.13.17 at 11:55 pm

Cats have out of this World Ninja skills, but once you start looking at it, or freaking out on it, then it turns into an over the top klutz.

Source: I have owned several.

https://www.youtube.com/watch?v=9NM_4njNUjU

#91 ShawnG in TO on 06.14.17 at 12:47 am

thanks Mark for answering my questions. they made things clear now, sortta, maybe.

but hey, i really like your other answer. since Canadians are so loaded with debt payments, we will have a lot less money to spend on other things including any imports. so instead of fancy European vacation, you can only afford ice cream at Belfountain. instead of a German power house with top grain leather, you can only get a Kia with faux leather, still an import, but for a lot less money. etc etc

there is still some time before people are forced to pay back their debt, ’cause their heloc still has room. (no interest payment necessary, just roll your interest into principal, how scary!)

banks are scared, so they are already lowering the credit limit on some people’s heloc.

banks are also not stupid, they are forcing those who can pay first, and easing others slowly into higher payments. the banks know very well that it’s better to have some people pay back slowly, and not shock them into bankruptcy.

many credit unions in bc and ont are toast.

#92 Freedom First on 06.14.17 at 12:52 am

#12 Howard

Howard. Your editing needs a freedom first edit:

Never buy RE with anyone.

Every wise freedom first person will already know this.

Fact. Truth.

Freedom First
Master of Freedomonics

#93 Sam the Sham on 06.14.17 at 1:10 am

#12 Howard

“For them (Boomers) life was a never-ending materialistic competition with their neighbors.”
—————————————————-
Howard, You obviously nothing about the “Boomers”. Boomers were the hippies of the sixties. There was a complete rejection of materialism, the materialism of their parents. Life for the Hippie-Boomers was one of freedom, discovery and experience. True, as they got older this changed. Life travels in cycles and in reality every generation experiences the same stages in life. The young believe they are unique but it’s really the same.

#94 Victor V on 06.14.17 at 1:12 am

Average payments on new mortgages climbing faster than inflation, CMHC says

http://www.bnn.ca/average-payments-on-new-mortgages-climbing-faster-than-inflation-cmhc-says-1.777683

#95 Blowing Smoke on 06.14.17 at 1:17 am

Smoking man never shoulda outed himself. His comments had an air of mystery before, like the character of the same nickname on the X-Files, but now he just seems like a shmuck who would be right at home in a basement playing xbox all day, growing his own weed, and reading up on the latest news on the Chupacabra before retiring for bed. Let Smoking man be a lesson to all men that some things are better just kept a secret no matter how courageous you feel ‘in the moment’. Cause’ once that genie is outta the bottle, you ain’t gonna stuff it back in.

popcorn TV – lovin’ it!

#96 domain on 06.14.17 at 1:28 am

Where do I bank?

Well Garth, it isn’t with a credit union anymore, not since I first read in Q1 of 2014 that Central 1 was designated a D-SIFI – domestic systemically important financial institution, for those who do not know what the acronym is for.

I had moved a 6-figure corporate balance over to Interior Savings in 2013 thinking that they would be ‘safer’ for not being part of the Bail-In framework that Canada has adopted, which was first run as a pilot project in the Cyprus banking crisis.

So the day I came across the obscure mention of Central 1 becoming a D-SIFI in 2014, I quickly learned that Central 1 was some kind of umbrella for Credit unions in BC and Alberta, such as Vancity and Interior Savings, etc. So the following week, I moved the money from Interior Savings and put it into TD Bank, which is also a D-SIFI, but not as badly entangled in crazy BC mortgages as a portion of their overall business.

I personally believe that Canada will see the execution of the Bail-In framework for one of our major domestic financial institutions, maybe even Central 1.

Given how risky these credit unions are behaving, with their exotic (insane) products and heavy reliance in BC on mortgages for business, combined with the insanity of peak house and peak low interest rates, I can’t help but feel that the May announcement of Central 1’s CEO (Don Wright) stepping down smells a bit like a Rat fleeing a sinking ship…

#97 Freedom First on 06.14.17 at 1:38 am

True story.

Talking with a millennial:

Millennial: I hate money.
Me: is that because you have no money?
Millennial: Yes.

I had to admire his honesty.

Freedom First
Master of Freedomonics

#98 Karma on 06.14.17 at 1:45 am

#62 Fake News on 06.13.17 at 8:48 pm
“#43 Andrewski on 06.13.17 at 7:55 pm
Re: #33 MSM… Google Alex Jones, a total nut bar. Then add Donald Trump in to that search. POTUS Bufoonus!

______________________________________

Google the Clinton Crime Family then tell us how crazy Alex Jones and Trump are. Please I beg you.”

Lol. Your name says it all. Believe what you want. Your opinion is nothing.

#99 Freedom First on 06.14.17 at 3:44 am

#58 MF

MF. Think creative. Think Positive. Think solutions. Think responsibly. Kill self-pity, expectations, entitlement, negativity and ya-buts. It’s your mind. It’s up to you.

I’m really not all that bright, but living by sound principles in every area of my life has worked and is working well for me. I had to do my homework.

Circumstances(excluding some disabilities) can always be overcome. I refuse to give up.

Plus, I’m tired of your whining.

Freedom First
Master of Freedomonics

#100 Oh, Donny Boy! on 06.14.17 at 6:47 am

Donny Trump is now saying that the House health care bill is “mean” and “harsh”, and that they should build a “more generous” and “more kind” version of the American Health Care Act. Several news outlets have reported this story, but the link below is to Fox News, just in case any of the deplorables think that I’m making this up!

http://www.foxnews.com/politics/2017/06/13/trump-tells-senators-house-health-care-bill-is-mean-source-says.html

#101 MF on 06.14.17 at 7:00 am

#97 Freedom First on 06.14.17 at 3:44 am

FF:

I’m actually a member of the Freedom First fan club. Your posts about women are and life are, for the most part correct.

Positivity is great.

Stating facts is not “whining”, however. My post was about dealing with the current job situation.

The facts are:

Rent is high 1 and renters have missed out on capital gains (so far).

This is fact in the GTA.

Anyhow, you post daily about how to deal with the current state of relationships and marriage in the western world, and how you navigate the situation. As someone who is in a loving relationship with a feminine, sexy, caring woman myself…and who has never had any problems with women…I can say that sometimes your posts can be seen as whiny too.

99% of the “problems” guys complain about when it comes to women are a reflection of their own issues.

Good for thought.

MF

#102 Tor star today on 06.14.17 at 7:15 am

https://www.thestar.com/news/canada/2017/06/14/big-sacrifices-and-a-plan-can-pay-off-for-younger-real-estate-shoppers-teitel.html

#103 maxx on 06.14.17 at 7:39 am

@ #35

My sentiments precisely.

#104 lala on 06.14.17 at 8:05 am

https://trends.google.ca/trends/explore?q=Toronto%20housing%20bubble,Vancouver%20housing%20bubble

#105 Millmech on 06.14.17 at 8:10 am

#59 Bigrider
What investments,most Canadians live in their investment.

#106 crowdedelevatorfartz on 06.14.17 at 8:12 am

@#93 Blowing Smoke
“Let Smoking man be a lesson to all men that some things are better just kept a secret no matter how courageous you feel ‘in the moment’. Cause’ once that genie is outta the bottle, you ain’t gonna stuff it back in. …”
+++++++

Total agreement.
Thats why I have instructed the lawyers in charge of my massive Trust to reveal my name on the day of my death OR same day as the Kennedy Conspiracy papers are finally released to the public…..I figure the media circus will allow my family a modicum of anonimity a la author pseudonim Richard Bachman
You’ll just have to wait a bit longer for my reveal.
Unless, of course, You’re on an elevator that I was just riding……
Patience my friends.

#107 maxx on 06.14.17 at 8:33 am

#58 MF on 06.13.17 at 8:28 pm

“I think a lot of us millennials are just trying to adapt to the situation. Remember, people took on huge debt because it was encouraged and enabled through major institutions (BoC, CMHC, big banks etc.). All of these are currently headed by boomers.”

ROTFLMAO………….do you honestly think that anything will change once you lot assume the helm? That everything in the corporate arena will be kumbaya and fairness for one and all?

Go on, pull the other one. It’ll be status quo, at very minimum and your turn in the “hate the boomers” chair is waiting for you.

Now that’ll be an “experience”, won’t it?

#108 Xbox Economist on 06.14.17 at 8:57 am

Bond markets are signalling today’s rate hike could be a policy error. 10yr TSY looking particularly scary this morning. Will we get another “dovish” rate hike?

#109 Centre Wing on 06.14.17 at 8:57 am

“Where do you bank?”

We bank with PC. Just renewed last fall at a 5yr, 2.44% clip.

#110 Figure it out on 06.14.17 at 9:13 am

HCG defenders:

It matters little what their mortgage default rate is. Plus we can’t even trust those numbers, because they quickly sold bad mortgages to the CEO’s daughter’s company so they’d be off the books by end of quarter.

The boss told employees and shareholders that he was aiming for 20% annual growth, meanwhile they had weak internal controls (i.e. they weren’t verifying income, but said they were). Real estate agents and mortgage brokers quickly discovered that HCG would say yes to anything. One agent was quoted as saying “they’re our lender of last resort.” And they were subprime lenders to begin with. With a business model like that, the question isn’t “is there fraud,” but rather “how much?”

Now their funding model is busted. Their daily press release shows they’re losing an average of $12 million/day in deposits, yet they claim their liquidity situation is actually improving. I.e. they’re not writing any new business to replace maturing mortgages. They’re basically in runoff mode, except with all the overhead of a going concern, plus a $1.7bn loan at credit card interest rates and 2.x times overcollateralization that they can’t seem to refinance. Busted business model.

Reduced to leaking that Catalyst Capital might be interested, after every banker in the country has said “I wouldn’t even touch that one with YOUR balance sheet!” — sad! When Newton Glassman gets involved with companies, he wipes out the shareholders, meaning basically that they were already wiped out, they just didn’t know it yet. You can read the case studies on Catalyst’s own website and see how shareholders did.

#111 TurnerNation on 06.14.17 at 9:23 am

Got Gold?

Thank you Fed may we have another? :-(

#112 Hollywood Jack on 06.14.17 at 9:39 am

I can’t take it anymore, first houses are going down and things don’t look good, now we’re seeing record prices in May!

What gives, which is it?!

http://www.bnn.ca/toronto-housing-market-stays-hot-as-canadian-home-prices-rise-in-may-1.778739

You now know why this is a highly flawed indicator. Always has been. — Garth

#113 Ole Doberman P. on 06.14.17 at 9:48 am

Looks like that was a head fake rally by HCG – now it’s time to make the next leg down to $1.00

#114 n1tro on 06.14.17 at 10:00 am

@Howard #12

Agree with you on the part where millennials want new experiences. Where this is bad is that they are doing it in the corporate environment. Lots of millennials jumping jobs every 2-3 years for new “experiences” not mastering anything. Once nimble, profitable companies are brought to their knees with the 30 something “directors” or “vice presidents” making strategic decisions.

#115 PM on 06.14.17 at 10:04 am

#110 Hollywood Jack

I can’t take it anymore, first houses are going down and things don’t look good, now we’re seeing record prices in May!

What gives, which is it?!

http://www.bnn.ca/toronto-housing-market-stays-hot-as-canadian-home-prices-rise-in-may-1.778739

You now know why this is a highly flawed indicator. Always has been. — Garth

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

CREB stats are meaningless, this is because they are reporting numbers based on closing in May. The contracts for these closings were likely signed three months prior. To see actual May, 2017 numbers, you will have to wait until August, 2017.

#116 Calgary Rip Off on 06.14.17 at 10:10 am

This is an interesting article.

If you were a young person and rents and mortgage were the same, what would you do?

Math challenged or not, either way you will be paying for housing for a long time. At the end of renting you have nothing. And that is the reality.

And this is likely why young people do end up acquiring mortgages.

At the same time if the area you live in the mortgage is so much more than renting of the same property, of course you either leave the area or rent for a little while until you can escape the area.

In Calgary consistently since 2006 the rents are about the same as the mortgages, although now the rents are in many instances more than the mortgage.

Yes the cost increases on the properties in the short term have not grown, maybe even gone down a bit. So say you stay in the place for 25 years, the property value is likely to go down in a big city, right? That seems quite a gamble either way to rent or acquire a mortgage.

So unless interest rates skyrocket or there is a mass exodus in Calgary, although the city is an entire rip off, it still makes more sense to get a mortgage, unless you want to be able to move soon or retire. Either way rent or mortgage, you will not have enough cash to rent/mortgage and invest, some people who rent say you can have a good portfolio from the money saved by renting. Maybe in Ontario but not in Calgary.

#117 Musty Basement Dweller on 06.14.17 at 10:34 am

Several years ago in the 80’s my brother was an early adopter of this house sharing idea. Didn’t end well, he’s one of the few people I know who lost money dealing in Richmond real estate.
Him and two buddies bought a house on Comstock Road, (for $108k) all with good intentions to hang in for a long term investment. I guess the banks could smell a rat, wouldn’t give the three a mortgage. The three thought they knew better, and went to HFC for their financing (21%!!)
18 months later one of the buddies got a new girlfriend, who moved in, then this new couple moved out wanting their own place. The two who were left couldn’t afford it and had to sell at a loss. ($100k.. plus a huge fee $10k I think for bailing from the HFC mortgage)
Too bad as it turned out to be an amazing long term investment, easily worth millions now although it’s torn down already.
I know these are small numbers nowadays, but the point is that a relatively minor and predictable issue brought the whole thing crashing down.

#118 MarketPundit on 06.14.17 at 10:39 am

This article just illustrates that RE industry in Canada became TOO BIG to FAIL. With record amount of household debt (which is, by the way, according to today’s article in BNN has “decreased” a bit in Q1) and somewhat 15% to 20% contribution to GDP, the Government as well as RE participants will do everything in their power to prevent any sizable correction. Discussing 20%-40% correction at this point does not make any sense. Any sizable RE correction will wipe this country away. Period!
Majority does not understand how this article is flawed, but it is headlines that matter. No one will even remember how the market truly was just a week ago. NOw, the masses will be back to the market bidding up the prices, because:
1) Supply is LIMITED (they say)
2) Rates are going up – so you better buy now to lock in the rate.

HCG has “failed”, but there are “10” more players that are willing to take its place and cater to the those that are not approved through the BIG ONEs.

http://www.bnn.ca/toronto-housing-market-has-record-may-as-home-prices-rise-nationwide-1.778739

Too many jobs depend on this market. Almost 70% home ownership in Canada.
Ruling party will never allow for RE to fail during their watch.

#119 Mike in Edm on 06.14.17 at 10:45 am

Boardwalk rentals here in Edmonton are now offering people 2 free months of rent if people sign a whole 12 month lease! Prior to this, they were offering people things like free cable.

#120 Unbalanced Housing Market on 06.14.17 at 10:46 am

“The Bank of Canada warned last week that rising consumer debt levels and an unbalanced housing market have raised household vulnerabilities.”

What makes the housing market unbalanced: the debt levels or the debtholders?

#121 IHCTD9 on 06.14.17 at 10:49 am

The “plight of the Millennials” is usually told through the context of the urban dwelling, well educated versions of same.

Big education, big debt, big city, big housing costs, crap job market and possibly crap pay. That’s the GTA reality for anyone looking to live there. Their choice, so really, none of these folks should be bellyaching about their “situation”. The fact is they stuck it to themselves by choosing to live there.

Outside the concrete jungle, Millennials are doing about the same as any other generation, if not better. Notable differences are their desire for toys. If I drive by a house with a lifted 4×4 in the driveway, and a quad+ sideXside in the garage, I know roughly how old the homeowner is :).

Millennials out in the hinterland get by just fine. Now – what they do for a living constitutes bottom feeding, ego flattening careers like working as a Mechanic, Machinist, Millwright, Carpenter, DSW’s, RPN’s, even as [email protected] if you can believe it. No Lawyers or scientists to be found.

But, a married couple both working doing the above jobs still can pull down 100K/yr in a small town, and buy a starter home for 100-200K, a nice place for 250-300K, or brand new beautiful digs for 400-500K.

Most seem to opt for the sub 250K digs and fill the garage and driveway – instead of filling the bank with mortgage interest.

Really, the tearful Millennials you’ve read about in the news are not too prevalent outside the urban centers.

#122 Alistair McLaughlin on 06.14.17 at 10:59 am

True story.

Talking with Freedom First:

Freedom First: I hate sex.
Me: Is that because you never get any?
Freedom First: Yes.

I had to admire his honesty.

#123 Balmuto on 06.14.17 at 11:07 am

“#110 Hollywood Jack on 06.14.17 at 9:39 am
I can’t take it anymore, first houses are going down and things don’t look good, now we’re seeing record prices in May!

What gives, which is it?!”

The Teranet numbers adjust for the sales mix, whereas the TREB numbers do not, so go by the Teranet numbers. Prices on identical properties continue to rise.

#124 InvestorsFriend on 06.14.17 at 11:10 am

Home Capital

Figure it Out at 108 lays out the situation nicely. Agreed they are in runoff with all the costs of a going concern. Plus the emergency funding costs. Plus costs of defending charges against them. Very scary investment even at the current big discount to book value.

#125 InvestorsFriend on 06.14.17 at 11:16 am

Why Interest Rate are so low

I have speculated here in the past that it is becasue there is lower demand for borrowing money to invest in profitable activities.

The western world is in good measure already “built out”.

Case in point, guy on BNN reports that USA has not built an airport in 22 years. Well, that’s in good part becasue none were needed, they were already built.

For years we have heard that there had been no new gasoline refineries built in the USA for many many years. NIMBY is part of the reason. But so is the fact that there were already enough gasoline refineries.

With the western world being largely built out in this way we may never again seen the very high interest rates of decades past.

Warren Buffett has said he knows of no large profitable investment ideas that have been delayed for lack of funding. The world is awash in funding. Credit abounds. It’s demand for profitable borrowing that is lacking.

#126 IHCTD9 on 06.14.17 at 11:26 am

#99 MF on 06.14.17 at 7:00 am

99% of the “problems” guys complain about when it comes to women are a reflection of their own issues.
______________________________________

I’ve been with the same woman since 1991 as an 18 year old. We’ve mentally and emotionally matured together as a couple. We started out together as kids, now we’re adults and parents.

I’d have to say based on what I’ve learned over the last 26 years, is that Women have just as much (if not more) propensity for “problems” as Men.

Also, I’d have to advise you as a Man in the Western World – to be on your guard for your Masculinity. Trust your gut. Follow logic, not the Matriarchal falsehoods injected into our society. Understand that there actually is a right and wrong answer to most any question. Your Woman is indeed wrong about many things – assertions that she can back up via media and academia, while you will find nothing for your own assertions.

Doesn’t change reality.

I’d have an honest conversation with yourself regarding that 99% number. Just you, your balls, your logic, and your conscious. You’ll probably find out women aren’t all that good, or all that smart as you were carefully led to believe – either that, or you need to start working on your T levels… quick.

#127 Rational Optimist on 06.14.17 at 11:35 am

100 Tor star today on 06.14.17 at 7:15 am

The first line in that article tells me that the journalist is not a critical thinker:

“When it comes to Toronto real estate, there are roughly two kinds of people: those who own a home in the city and fear (or vehemently doubt) that a crash is upon us, and those who don’t own a home in the city and pray with all their might that a crash is upon us.”

Nearly no one is actually one of those two kinds of people. Plenty of people own a home and fear a housing crash, given what it might do to the wider economy.

Plenty of others own homes and simply understand that a sharp correction has to happen.

This writer is obviously doing much of her “research” in internet forums much less sophisticated than this one.

#128 mike from mtl on 06.14.17 at 11:39 am

Man good thing I didn’t lapse of reason and overreact by changing hedging – poloz peso strikes again!

Knew this was temporary.

#129 Xbox Economist on 06.14.17 at 11:46 am

“Trump or no Trump, the States is sliding into a wage-price dance that will bring more inflation and mortgage increases.”

Bond market is not buying it. Let’s see how the Fed calls it.

Hey Ace, how are you liking your Aimia shares?

#130 TnT on 06.14.17 at 11:48 am

Shocking turn of events in my neighborhood

These 3 house sales speak volumes of a crashing market.

All 3 houses are stone throw away from each other. Same square footage, lot & location etc….

Early May – House A – 2 bedroom – totally dated – list – $899k – sells $1.1 million
http://www.mongohouse.com/soldrecords/59279c5f1120cc8318fec623

Mid May – House B – 2 bedroom – totally renovated – list – $899k – sells $1.1 million
http://www.mongohouse.com/soldrecords/5930dca01120cc67df258ae2

Early June – House C – 2 bedroom – totally renovated – list – $899k – sells $900k
http://www.mongohouse.com/soldrecords/594098464df2c4c60aee33ba

Houses went from $1.1 million dollar tear down to $1.1 million dollar renovated to $900k renovated in 30 days.

Shocking…..

#131 Trumpty Dumpty on 06.14.17 at 11:58 am

“Trump blocks Stephen King on Twitter, but J.K. Rowling comes to the rescue!”

http://news.nationalpost.com/arts/books/trump-blocks-stephen-king-on-twitter-but-j-k-rowling-comes-to-the-rescue

#132 MF on 06.14.17 at 12:17 pm

#105 maxx

Come on maxx where did I say I “hate boomers”?

If you’ve read any of my previous posts I always talk about my boomer parents and how they have given me everything.

The post was about adapting to the current situation.

Do you disagree that today’s job market is different than the one from decades ago?

You yourself always remind us that these huge institutions like the boc and Cmhc are responsible for this disaster with their ZIRP.

MF

#133 Chris on 06.14.17 at 12:27 pm

Hi Garth,

I tried looking up the debt exposure for one of the larger credits unions on the west coast (Coast Capital) and can’t seem to distill all those numbers into something meaningful. What should I be looking for?

Thanks

#134 Contrarian Coyote on 06.14.17 at 12:27 pm

“Home prices in Ontario are skyrocketing, seemingly putting ownership out of reach for many potential homebuyers. Not all hope is lost! There are alternatives to consider such as real estate co-ownership. Real Estate co-ownership allows you to share the cost of buying a home with friends, roommates, co-workers, or family members.”

===

This is like timeshare and taken to a whole new level of crazy. If consumers would pause, breathe, and take a step back, many (I hope!) would realize just how many things can go wrong. A couple living together have enough variables to contend with to make mortgage payments or even rent. Income, health, and most of important – do you even want to remain together.

I sincerely hope this ‘co-ownership’ mortgage idea doesn’t go mainstream and become widespread. It seems more like a desperation sales pitch from those offering mortgages during the last gasp of a dying bubble.

#135 There is no YVR Bubble on 06.14.17 at 12:40 pm

People think housing is un-affordable now? Wait 5 years.

Metro Van is going to grow by 250K over the next 5 years.

It takes 5-6 years just to build a tower that holds 300 people.

The 450 acres on the False Creek Flats are earmarked for just 1,400 units (3 homes per acre in a prime residential area)

Do the math.

Its entirey a supply issue, and NIMBYs are running the show.

#136 Bubbleboy on 06.14.17 at 12:41 pm

Why is the Globe and Mail so biased. Am I missing something? Maybe its run by realtors.

House prices post record rise in May as Toronto chill yet ‘to be seen’
AMP – 3 hours ago

https://www.google.ca/amp/s/www.theglobeandmail.com/real-estate/the-market/house-prices-post-record-rise-in-may-as-toronto-chill-yet-to-be-seen/article35306052/%3Fservice%3Damp

#137 TSX on 06.14.17 at 12:42 pm

Is red ytd

Who knew

#138 bdwy sktrn on 06.14.17 at 1:01 pm

10-Yr Bond (^TNX)
Chicago Options
2.11-0.097 (-4.40%)
As of 12:41PM EDT. Market open.

—————
mr market does not agree with auntie yellen.

The consumer price index fell for the second time in three months, while prices excluding volatile food and fuel had the smallest year-over-year gain since May 2015, Labor Department data for May showed. Retail sales decreased last month by the most since the start of 2016, according to the Commerce Department,

#139 Ole Doberman on 06.14.17 at 1:02 pm

Well looks like oil will keel over soon, next stop $30ish

#140 Looney Baloney on 06.14.17 at 1:04 pm

#99 MF
“As someone who is in a loving relationship with a feminine, sexy, caring woman myself…”

Extolling those virtues in a woman is sexist. A butch dyke is as much, if not a lot more woman than your sqeeze(at least per square inch). And don’t forget the LGBTXXYYZZ. 90% of them are a male -> female transitions (I wonder why).

#141 A Reply to #123 IHCTD9 on 06.14.17 at 1:08 pm

“Just you … your logic, and your conscious.”

Did you mean to write “conscience”, “consciousness”, or some other noun? Was this just an autocorrect?

#142 maxx on 06.14.17 at 1:12 pm

#77 Smoking Man on 06.13.17 at 10:09 pm

“No enlighten meant for you.”

Smoke, you’re a strange member of the dawgie pack, in a scruffy, wizened sort of way, but your word craft is often wonderful.

#143 Damifino on 06.14.17 at 1:18 pm

There are calls for Theresa May to “soften”Brexit.

I don’t get it. Is it not a binary function? Aren’t they either in the European Union or not?

Can a flipped coin come up ‘mostly’ heads?

Does a zero still have a small amount of one in it?

#144 Happy Housing Boom Everyone on 06.14.17 at 1:24 pm

Yeah, Teranet House Price Index just got out with the numbers for May 2017.
And it is a scorcher month (for prices, not for volume.)
https://housepriceindex.ca/2017/06/may2017/

Every so often, “Happy Housing Crash Everyone” dances of joy that the long awaited crash has finally come.
A n d I t N e v e r H a p p e n s.

Toronto had record price growth in May: +3.6% compared to April, and +28.7% compared to a year earlier.

If you ask me: Toronto did a mirror-image of Vancouver.
Sales volumes down, but the stuff that does sell (lower end) sells for absolute record prices.

Now, queue Mark, saying Teranet is useless. Don’t listen to him though.

#145 Farm Wife on 06.14.17 at 1:41 pm

Hot Property is an anarchic satire for ‘generation rent’. An un-romantic comedy about love, greed and psychotic estate agents. Set amid London’s deranged property market and self-parodying hipster culture.

#146 jess on 06.14.17 at 2:03 pm

https://www.therecord.com/news-story/7369071-kitchener-residents-blast-city-after-vacant-house-burns/

#147 IHCTD9 on 06.14.17 at 2:14 pm

#138 A Reply to #123 IHCTD9 on 06.14.17 at 1:08 pm

Did you mean to write “conscience”, “consciousness”, or some other noun? Was this just an autocorrect?

__________________________________

Conscience

#148 Smoking Man on 06.14.17 at 2:25 pm

Get well Steve Scalise.

You knew it was only a matter of time before the looney unhinged left started shooting people.

A trump head. A trump kill em play on Broadway., A madona arsonist MSM inuendo and encouraging violent acts.

Roomers have it that the shooter was a Bernie staffer or follower.

Again Hitler, Stalin, Castro, all socialist fasists.
When the calls you a name they project whats in there mirror.

#149 Al on 06.14.17 at 2:38 pm

US Fed just increased rate by 0.25%

#150 Ogopogo on 06.14.17 at 2:40 pm

Fed just raised rates again. Sweet!

Another nail on the slowly descending coffin of our housing market. Also, more excrement in the face of rate-raise deniers, some of whom pretend they never pegged their reputations (for what they’re worth, lol) to rates staying low forever.

Realtors, better get used to saying “Do you want fries with that?”

#151 Ace Goodheart on 06.14.17 at 2:42 pm

Fed just announced another rate hike. Canada will likely follow with It’s own hike soon. Days of cheap money are coming to an end.

Re: Aimia shares: they’ll go down before they go up. I bought for $2.20 a share anyway which is less than book.

There’s another dot com bubble on the horizon and this time It’s an electric car company. ..

#152 Ron Maiden on 06.14.17 at 2:50 pm

Does anyone know why everything is collapsing?!

Fed is hiking, then unwinding – all liquidity will be sucked from the system, the gold bugs have been right after all!

Brace yourselves.

#153 Don't Worry About It! on 06.14.17 at 2:52 pm

“Donald Trump to mayor of island sinking due to climate change: Don’t worry about it!

“Despite scientists saying climate change has caused the island to shrink both Trump and the mayor want to ignore it!

“Virginia’s Tangier Island is shrinking at a rate of 15 feet each year, the Washington Post noted, and the Army Corps of Engineers has said the cause is from ‘coastal erosion and rising sea levels.’ But that wasn’t enough to convince the president, or even the island’s Mayor James Eskridge.

“’Donald Trump, if you see this, whatever you can do, we welcome any help you can give us,’ Eskridge told CNN. ‘I love Trump as much as any family member I got.’

“Scientists have said the island’s 450 residents, who overwhelmingly supported Trump in the November election, may need to completely abandon the island in the next few decades. Many of the residents are descendants of its first settlers back in the 17th century, according to the Post.”

http://www.salon.com/2017/06/14/donald-trump-to-mayor-of-island-sinking-due-to-climate-change-dont-worry-about-it/

#154 pBrasseur on 06.14.17 at 3:01 pm

#134 TSX

Is red ytd

Who knew

Not a problem for those of us who buy individual shares of great companies!

Dollarama up 25% YTD

#155 the great short on 06.14.17 at 3:25 pm

The TSX

the perfect storm; a housing debacle, and OIL to break $45

even a blind squirrel finds a nut…now and then..:)

#156 AK on 06.14.17 at 3:47 pm

31 Rainsford Road – Markham Ontario

May 04, 2017 —- $1,189,000.00

May 15, 2017 —– $1,080,000.00

June 14, 2107 —– $898,000.00

#157 SWL1976 on 06.14.17 at 3:50 pm

#145 Al

US Fed just increased rate by 0.25%

———–

This will make things all that much more interesting when their dysfunctional government has to deal with upping the limit on their credit card this fall

#158 Smoking Man on 06.14.17 at 3:51 pm

Yellen

“I have official guidance that a party is on through 2030”

Hmm Agenda 2030?

#148 Don’t Worry About It! on 06.14.17 at 2:52 pm
New Orleans is sinking too. Its not clime change you ninne, is geology.

The over schooled is all im saying. They are Agents for global govt that wants to eventually kull the herd.

What the hell happend to JFKs party?

#159 isuckless on 06.14.17 at 3:53 pm

“Virginia’s Tangier Island is shrinking at a rate of 15 feet each year,”
This is NOT caused by the rise of the sea level. Please check your data, not listen to MSM (and “scientists”).
Are we all so brain washed that we now accept science (with and without quotes) as religion and nobody questions information coming from it. Scientist are humans and they are not different from anyone else when money is in question, i.e. they are capable of generating models and getting data that supports whatever their sponsors want. If your grant depends on toeing party line, not too many will not follow it.

#160 mike from mtl on 06.14.17 at 3:56 pm

#134 TSX on 06.14.17 at 12:42 pm
Is red ytd

///////////////////////////////////////////////////////

Half true, yty is quite in the green. Over longer term which is more important is definitely positive.

Besides who cares about the tsx? anyone that puts much into TSX with everything bad against it needs their head examined.

#161 Simplyput7 on 06.14.17 at 3:59 pm

When does Canada get a rate increase?

#162 GAV on 06.14.17 at 4:00 pm

148 Don’t Worry About It! on 06.14.17 at 2:52 pm

Seawell Point, not far from Tangier Island has consistant sea level rise of 4.44mm/yr for the last one hundred years. There are a lot of geological dynamics in an estuary area, none of which have nothing to do with climate change.

When you quote “scientists” you really mean “activists”.

Get a life.

https://tidesandcurrents.noaa.gov/sltrends/sltrends_station.shtml?stnid=8638610

#163 bdwy sktrn on 06.14.17 at 4:02 pm

#147 Ace Goodheart on 06.14.17 at 2:42 pm
Fed just announced another rate hike. Canada will likely follow with It’s own hike soon. Days of cheap money are coming to an end.
———–
check the us 10yr – staying cheap

There’s another dot com bubble on the horizon and this time It’s an electric car company. ..
——————-
100x yes – the question is when to act on it. any input greatly appreciated

#164 bdwy sktrn on 06.14.17 at 4:04 pm

#149 pBrasseur on 06.14.17 at 3:01 pm
Not a problem for those of us who buy individual shares of great companies!

Dollarama up 25% YTD
————————
costco 20% with 4.5% spec div.

#165 bdwy sktrn on 06.14.17 at 4:08 pm

notice: inverted yield curve ahead

#166 Freedom First on 06.14.17 at 4:16 pm

#99 MF

I state a problem. Then I state a solution. Keep it simple MF.

And the 99% of your reply is not the truth. Fact.

#167 LP on 06.14.17 at 4:25 pm

#157 GAV on 06.14.17 at 4:00 pm
148 Don’t Worry About It! on 06.14.17 at 2:52 pm

There are a lot of geological dynamics in an estuary area, none of which have nothing to do with climate change.
****************************
Too funny – you just proved his point. Unless you meant to say “anything” to do with climate change, which is a different kettle of fish entirely.

#168 april on 06.14.17 at 5:16 pm

#132 – Metro Van is growing all the time and we still have housing booms and busts. No different this time but you hope…. realtor.

#169 april on 06.14.17 at 5:22 pm

#120 – Teranet?? Google Ross Kay if you want to know the truth about Teranet, also Ross Kay at Howestreet.com

#170 Nuke #3 from Government Arsenal on 06.14.17 at 5:24 pm

http://www.mortgagebrokernews.ca/business-news/brace-for-a-possible-tax-on-speculative-home-purchases-crea-chief-economist-226856.aspx

#171 Don't Worry! Be Happy! on 06.14.17 at 5:51 pm

#153 Smoking Man on 06.14.17 at 3:51 pm
#157 GAV on 06.14.17 at 4:00 pm

Did’t you find any humour in the article? Did you make your comment without first having read the article? That seems pretty deplorable. :)

From the article: “Trump and the island’s mayor both agreed that sea level rise is not a concern of theirs. ‘Like the president, I’m not concerned about sea level rise,’ Eskridge told the Post. ‘I’m on the water daily, and I just don’t see it.’

“The main concern for Eskridge as well as many other residents on the island is ‘about the erosion caused by the Chesapeake’s water pounding on the island’s shores.’ He said he believes this is why his home is disappearing at an alarming rate, the Post reported. Trump seemed to agree with him and suggested that he may stop by so the two could discuss it.”

Don’t worry, folks. “[Trump] alone can fix it!” ;)

https://www.theatlantic.com/politics/archive/2016/07/trump-rnc-speech-alone-fix-it/492557/

#172 jess on 06.14.17 at 6:26 pm

“Found here are the weather and climate events that have had the greatest economic impact from 1980 to 2017. The U.S. has sustained 208 weather and climate disasters since 1980 where overall damages/costs reached or exceeded $1 billion (including CPI adjustment to 2017). The total cost of these 208 events exceeds $1.1 trillion.”

…”In 2017 (as of April 6), there have been 5 weather and climate disaster events with losses exceeding $1 billion each across the United States. …”

https://www.ncdc.noaa.gov/billions/

=============================
Houston built on a bog today est. cost of 26Billion to fix flooding problem

http://www.houstonchronicle.com/local/explainer/article/The-trouble-with-living-in-a-swamp-Houston-7954514.php

http://nca2014.globalchange.gov/report/our-changing-climate/heavy-downpours-increasing

#173 AGuyInVancouver on 06.14.17 at 7:55 pm

#130 Chris on 06.14.17 at 12:27 pm
Hi Garth,

I tried looking up the debt exposure for one of the larger credits unions on the west coast (Coast Capital) and can’t seem to distill all those numbers into something meaningful. What should I be looking for?
_________________________________
People seem to forget, the BC government guarantees all BC credit union deposits (since the Great Recession). As long as Coast Capital, Vancity etc. stay within the charmed circle of the Best Place on Earth they’re OK.

#174 Where's The Money Guido? on 06.14.17 at 8:27 pm

Re:#130 Chris on 06.14.17 at 12:27 pm
Hi Garth,

I tried looking up the debt exposure for one of the larger credits unions on the west coast (Coast Capital) and can’t seem to distill all those numbers into something meaningful. What should I be looking for?
Look Here!
https://www.cccu.ca/SharedContent/documents/CorporateReports/CCCUConsolidatedFinancialStatement2016.pdf

#175 Where's The Money Guido? on 06.14.17 at 8:55 pm

Coast Capital shows more loans outstanding than assets. They too are gonna pop!!!!
Happy bankruptcy everyone!!!!! Why, cuz they won’t cover your assets when TSHTF, neither will BC gov’t cuz when the NDP gets in, they will find the cookie jar empty and with $160 billion in debt obligations and BC’s gov’t utilities raped for all the cash in their jar, who is gonna CYA.
I was listening to the local radio station in BC and could not believe what I was hearing; completely Liberal biased to the point of the host cutting off a caller mid-sentence who was thoughtfully and respectfully explaining his NDP slanted point, and the next caller they allowed just lambasted the NDP for 5 minutes without getting cut off.
The second caller was unbelievably brutal but the station (CKNW and host Mike Smith, who used to be unbiased, guess the payoff was too hard to resist) just let him yammer on. I will never listen to that scumbag station ever again…..
I feel for the citizens of BC, we are going to get even more screwed once the Liberals find some sleazy way to get back into power, supported by CKNW and Vancouver MSM (CTV included).
Former CTV host Linda Steele (whom I respected there), and is now the afternoon host (Steele & Drex) on CKNW, has certainly bit hard on the moneybag. I couldn’t believe the biased hosts today, couldn’t listen after a half hour, it was so bad. It was so obviously brutal.
There is no unbiased reporting in Vancouver anymore, just bowing to the donors everywhere (bowing supplanted by another more descriptive word).
BC’s elites will not stop until we’re all debt slaves while they dine on caviar and helicopter everywhere with a private photog (who is paid $1 million/year by Clucky). Tell me, who should get away with that? Those people (and I use that begrudgingly), should be pounding rocks.

#176 maxx on 06.14.17 at 8:58 pm

#82 tri-guy on 06.13.17 at 10:48 pm

“if real estate has a 10% correction will mpac give us a 10% rebate on property taxes…assessed market value”

Not even close. We once had been assessed at an increase of 34% in a single year. Called for an explanation and hopefully some kind of reduction. STONEWALL!!!!! Whatever the decline in re, there is no way municipal property taxes will drop.
Ever.

#177 Ace Goodheart on 06.14.17 at 9:28 pm

RE #158 I’m calculating it for a big short. I figure right now over priced by $125 US per share but don’t quote me on that E&OE. Going to make my play this week for the 2018 short. Will post what I figure will be in the money June 2018.

Share price likely will start to crash Sept to Oct 2017 and spiral down from there.

The trick is figuring out what short will be in the money this time next year…..

#178 Where's The Money Guido? on 06.15.17 at 12:43 am

And now the games begin!!!
Realtor returns $50k deposit on $1 mil condo and now on the hook plus along w/purchaser:
http://www.theprovince.com/news/local+news/construction+company+sues+realtor+over+sale+that+fell+through/13448069/story.html

#179 AGuyInVancouver on 06.15.17 at 2:51 pm

#169 Where’s The Money Guido? – CKNW has been a BC Liberal/Socred mouthpiece for years. That explains their plummeting ratings as their listeners die off.