Relationships

Well, after that moany, depressing epistle on Friday from blog dog Ken, a.k.a. Lonely in Lethbridge, another pack member wants to lighten the mood, plus gloat. And, yes, there’s a lesson in here. Maybe a few.

Iain says he started reading this blog in 2009, when the lights were going out, “in a classic case of confirmation bias.”

“I was convinced the classic rent/buy and income/buy ratios were forecasting a major collapse in housing well beyond the hiccup of 2008. Few would have forecast we’d have even lower rates today AND a further inflated bubble, but all the same when my girlfriend and I moved from Victoria to Halifax with secure government jobs we didn’t even consider a purchase, opting instead to rent a nice place in a great neighbourhood for less than what it cost just to service the debt on other similar houses trading hands in the neighbourhood. I kept a dorky spreadsheet on hand at all times, comparing the TOTAL costs (including opportunity cost of money trapped in a house) of owning vs renting with three projected appreciation rates for housing in our neighbourhood vs a 5% growth on a balanced portfolio, which reassured her she was being smart about renting when one of her simplistic friends would corner her about ‘throwing away’ money on rent. Instead of paying absurd property taxes and spending our weekends bickering over laminate vs hardwood like many of our condescending friends who were ‘building equity’, we locked the door and traveled lots, let the cranky landlord deal with repairs, I started working on a PhD in my spare time and we both invested the leftovers, which as young professionals in an affordable city like Halifax, piled up quickly. The result for me has been a dull, slightly underperforming portfolio of highly-liquid assets with little volatility that are tax optimized, maxing out RRSP and TFSA caps and building net worth a touch under $1M as I approach my 35th birthday.

“The girl and I split recently after 5 years and it was the easiest, most civil breakup I know of. Neither felt the other owed them anything and we remain close friends. There were no assets to split up and I don’t think we’d be in this position if we’d needed to sell or split a house. I’m questioning my desire to stay in the rat race and am considering blowing my life up, taking my million bucks and living off the investment income for a while, anywhere I please, while I finish off my degree remotely, surf and ski, and figure out what I want in life for love, ambition and happiness. I have this freedom because I’m not a debt slave needing to unlock my equity from a depreciating asset in a slowing market. Ain’t liquidity grand?”

You betcha, YHZ guy. That was a genius move.

The average detached Halifax house sold for $254,729 in July of 2012. Today the average is $301,982. That’s a gain of $47,253 in five years, or about $25,000 after buying and selling fees. The five year rate of return = around 1.9%. The five-year return on a balanced portfolio, meanwhile, has been close to 7% (depending on the mix). And with liquid investments there’s no property tax. No realtors, No condo fees, big insurance, maintenance or hardwood. Plus, if your ‘girl’ doesn’t work out, you can just change her. What’s not to love?

So, lesson one: all markets are local. In a majority of them across the nation people use houses as homes, not speculative assets. Real estate ownership in most places is, at best, a way to preserve wealth not to create it. We should all think that way.

Second, liquidity’s irreplaceable. With interest rates on a steady escalator, new mortgage restrictions about to be introduced, tighter credit and a population of debt-maxed financial illiterates, it’s risk-on with real estate. More than ever, it’s unwise to have the bulk of your net worth stuffed into a single asset, on one street, in one town. When markets turn (and they are), houses get illiquid and wealth becomes trapped. Trust me, you will never forget that experience.

Lastly, relationship advice (this is a full-service blog). Most break-ups are the direct result of money problems, and the bulk of those centre around the biggest asset couples ever own. Ironically, they think real estate and nesting will bring them together. But the cost is immense. Besides, mortgage payments and the endlessness of Groundhog Day in the same four walls are great tonics for the spontaneity of love.

Now, Iain, let’s conclude with your dorkiness, vanity and nauseating egocentricity.

Yes, I know you and the girl were unmarried. And, yup, in the event of a common-law relationship breaking down there’s no mandatory division of property (as with marriage). But there’s something called ‘constructed trust’ which recognizes that in a non-matrimonial but long-term relationship each party contributes to the economic well-being (or otherwise) of the union. If both you and she were making money and financing living costs, she has a claim against your liquid wealth. After all, her income helped facilitate it. That allowed you to save and invest.

Ending a common-law relationship is like winding up a business. Legally, you look at who brought what into the household, who contributed to enhance or maintain those assets, and how each person’s actions may have benefitted the other. Yes, it’s fuzzy when no cohabitation agreement exists, but you can be sure if the girl lawyers up, you’re screwed.

So, Iain, don’t be a deplorable. Be a man. Do the right thing.

169 comments ↓

#1 Love this Blog on 07.16.17 at 3:53 pm

Want to be wealthy? Do as Garth says, plus:

Do not get married
DO not cohabitate

Your bedroom will stay lively and your wallet will stay safe

You are welcome

#2 crowdedelevatorfartz on 07.16.17 at 3:58 pm

“Be a man. Do the right thing…..”
*******
Pay up and avoid thoughts of wood chippers?

#3 TurnerNation on 07.16.17 at 4:02 pm

Do the right thing…and leave the country??
(When both people contribute equally to living costs).
Two people with ‘secure govt jobs’ – and we have gender parity in pay as per the Lib govt, surely they would take case of their own before all else.

No one owes another a living unless they are infirm or a minor or economically dependent.

Paging FF to the blog…

#4 The Great Gazoo on 07.16.17 at 4:04 pm

“So, Iain, don’t be a deplorable. Be a man. Do the right thing.”

Great advice Garth, sign of true character.

Based on Iain’s account both parties felt neither owed the other anything, unless “the girl” ends up reading this pathetic blog and has second thoughts when she sees the boy has piled up $1 million. Iain better pray the girl doesn’t read this blog.

Also some interesting tweets from John Pasalis, indicating that foreign buyers represent 11% and 14% of the Toronto and York Region Market respectively. He also provides some commentary on the impact of foreign buyers on the RE market.

https://twitter.com/JohnPasalis

#5 Nemesis on 07.16.17 at 4:08 pm

#FriendsWithBenefits…

[ColonialTimes] – B.C.’s ex-MLAs get aid in transition to new jobs

…”The province will pay between $880,000 and $3.4 million to help former MLAs transition to new jobs.
Each of the 25 MLAs who was not re-elected in May is entitled to between four and 15 months of transitional assistance.

Eleven defeated MLAs and 14 who opted not to run again are eligible for the payments. The amount each receives will depend on when they get a new job, start collecting a pension or reach the 15-month limit — whichever comes first…

…Because assistance can be provided for up to 15 months, an MLA can receive up to $132,353 in transition pay…

…Former MLAs are also eligible for up to $9,000 for career counselling, education and retraining.”…

http://www.timescolonist.com/news/local/b-c-s-ex-mlas-get-aid-in-transition-to-new-jobs-1.21179704

#6 TurnerNation on 07.16.17 at 4:08 pm

A relative of mine got married then divorced at a late age a few years ago.
One was a Director the other a Senior VP. Big salaries. No kids.
Each had properties of their own. They had amicable and very cheap separation and went their own ways – nothing was exchanged at parting.

#7 Tony the Gino on 07.16.17 at 4:19 pm

Hi Garth

I bid 800,000 on 70 Tremblay Ave in Woodbridge last week as it was priced 888,000 for bidding war. Detached 2000sq very ugly inside and basic outside. Needs total upgrade. It didn’t sell. Back on market for 1,199,000.

Prices are still so very high. Even townhouses cost the same as detached. Price points are confusing me.
What do I do???????? I’m tired of waiting. The sellers keep winning. Even now during slightly softer market. They still win unless absolutely desperate. Even then they sell for a high price.

Do I have to wait another 10 years like I just did?

:-(

#8 Howard on 07.16.17 at 4:22 pm

$1M by 35…well done on finding public sector jobs (likely paying twice the going rate of the poor shmos in the private sector) in a cheap town like Halifax. Some people have all the luck don’t they?

Yes yes, I know, big deal, $1M by 35, easily done. Is it just me or does everyone here seem to claim to be fabulously wealthy by the time they hit puberty?

#9 Freedom First on 07.16.17 at 4:27 pm

Be a man. Do the right thing.-Garth
……………………………………………………….

This is a must for living a freedom first lifestyle.

I always strike a fair deal in every aspect of my life. Fair to me and the other party/person.

It is also a big reason why I live alone, although the biggest reason by far for me living alone is because I like to.

I have been honest with all of my girlfriends about my lifestyle from the get go. Honesty is the best policy in everything, or there is no freedom.

Living this way enables me to walk the planet without being afraid to run into anyone in the world.

I have made my mistakes, but then I must own it and make it right.

Freedom First
Master of Freedomonics

#10 SandyM on 07.16.17 at 4:36 pm

Thank you, Garth, for encouraging that self-absorbed twit, Iain, to recognize that he was in a common-law relationship and needs to look at an equitable split of the assets. There are laws regarding this, Iain boy:
——
“In Nova Scotia, common law partners who have lived together for at least two years may have responsibilities to provide financial support for each other. If you have a Registered Domestic Partnership there is no two year waiting period….”
https://www.legalinfo.org/family-law/common-law-relationships.html#8
——

And for #3, TurnerNation, gender parity in government employment doesn’t mean the woman in a relationship was well paid.

#11 Jocelyn on 07.16.17 at 4:50 pm

#49 Captain Obvious on 07.15.17 at 9:32 pm

I just figured out that this blog comment section is filled with sad, old, bitter, vaguely smug, white (possibly gay) men who are scared of women and the commitment of owning a house. You all found each other! Gotta love the bias.
<<<<<<<<

smoking man uses several names on here and over represents himself.

#12 Money Coach on 07.16.17 at 4:50 pm

I’m not sure where the idea came from that the “girl” in the letter didn’t come out of the relationship with a similar amount. Iain said “we both invested the leftovers” and it seems that they were both “young professionals”. The result for Iain was a “dull, slightly underperforming portfolio” there’s no mention what the result was for the “girl”. Perhaps her portfolio was exciting and overperformed :-) If she also left the relationship with around a million, it would certainly explain their amicable parting.

#13 Smartalox on 07.16.17 at 4:50 pm

I suspect that if Iain had a spreadsheet, and used it to track his and hers investments as a way of heading off their house horny friends, she knew precisely how much she had that was hers, and took her own amount away when they split.

If she had not been working and saving right alongside him, if this was a single-income couple the 1970s, or of he’d racked up student loans while she worked to pay his tuition, things might be different, but it does not sound like the case.

#14 SimplyPut7 on 07.16.17 at 4:50 pm

I don’t see why Iain owes her anything.

If they shared their living costs equally, then she could have invested her money the same way he did.

#15 Halifax??? on 07.16.17 at 5:19 pm

The average detached home costs over $300,000 in Halifax??? Man alive. Canada is one f*****-up country.

#16 Entrepreneur on 07.16.17 at 5:25 pm

Time for fun in the sun, Iain.

I think if each person has their own job, own bank account, basically an agreeable separation. As for the “constructed trust” my guess would be how was the wealth made and when, every odd case.

Most people do not want lawyers involved because they cost too much and do not have the extra funds to play this game. Unless revenge in play.

#5 Nemesis…I don’t recall in my lifetime ever getting anything for looking for another job. Oh, I got their okay to use their name(s) in a resume but mostly I was on my own.

But saw Larry Cohen on the news the other day and I agreed with every word he said. Googled more info on him and apparently on the board of “Our Revolution,” a grassroots organization (Bernie Sanders).

Will to look further but wonder if Canada has a similar one. Will google.

#17 BlogDog123 on 07.16.17 at 5:48 pm

Hypothetical situation:
Iain and girlfriend live together for 5 years without interruptions.
Iain makes $80k/year. Girlfriend makes $80k/year.
Both decide with a written agreement to split household costs evenly (rent, food, common nights out, common items). The agreement states that each decides that personal items/choices are each other’s “fun money” for things like shiny new clothes, cars, investments, education.

At the end of 5 years, Iain has spent his agreed fun money on ratty clothes, a beater of a car, 0.5 of PhD and his $1M net worth.
Girlfriend spendt her personal money on a Lexus lease, 1-900 tarot card readings, bogus unregistered charities, affair’s crack cocaine habit, Halifax casino losses and has -$40k credit card debt due to her spendthrift ways.

Question of the day: (A) Legally and (B) Morally, how much does Iain owe Girlfriend as they go their separate ways? Discuss.

#18 For those about to flop... on 07.16.17 at 5:50 pm

#98 SW on 07.16.17 at 4:42 pm
#78 For those about to flop… on 07.16.17 at 11:40 am
“…but she… has low standards when it comes to most things. After all, she married an idiot from Tasmania…”

Humility is a most attractive feature in any human. Let’s add that to wit, flexibility/resilience and stoicism :-)

Thanks for all your effort on your posts, btw. Very interesting; I always read them.

////////////////////////
Hey SW,
After doing a session this morning I was going to keep the dance floor clear for the other kiddies,but since you wrote such a kind message I just want you to know that I got your message and your support is appreciated.

Now that I am back at work, when I come home from dealing with development project problems all day the last thing I feel like doing is looking for Pink Snow,and so now the compromise is to do an hour or two each day of the weekend while I’m resting up for another punishing week at work.

It’s not like I’m suffering in a sauna or anything though,I put ice cream buckets of frozen water in a kiddies splash pool and post while my ankle swelling goes down.

On the plus side it keeps the Pink Lemonade cool as well…

M43BC

#19 Millenial on 07.16.17 at 5:50 pm

I don’t understand today’s blog post.

“Do the right thing.” ?

Give her money? Hire a lawyer?

He said it was the most civil breakup he’d ever experienced.

BTW, to hell with these government workers. 1 million in savings by 35? tons of time to travel? tons of time to do a PhD in spare time? Man, kiddies, aim for a government job and don’t look back. what a joke.

#20 Capt. Serious on 07.16.17 at 5:51 pm

I wonder what Iain’s saving rate was and his salary? Seems like he had quite the well paid government position and high savings rate. I don’t know what Iain had before 2009, but he would have been squirrelling away quite a sum per year to get to $1M by 35. In any case, his letter is mostly a lesson in how income outstripping expenses by a significant amount allows one to build wealth. Kind of basic.
And yes, even if Iain thinks he and his common law girlfriend were able to keep separate finances, a lawyer could make the case that some of their savings/investing gains should be split equally since they occurred after they joined houses. Maybe since he’s an admitted spreadsheet nerd he kept track of it all and made sure it was split evenly.

#21 FOUR FINGERS WATSON on 07.16.17 at 6:04 pm

So, lesson one: all markets are local. In a majority of them across the nation people use houses as homes, not speculative assets. Real estate ownership in most places is, at best, a way to preserve wealth not to create it. We should all think that way.
………………………
All markets are NOT local any more . The word is out about Canada: dependant on immigration, easy purchasing for foreigners, low interest rates, easy financing, government incentives, no capital gains tax, no stock market risks. It is a no brainer. Garth you are in denial.

#22 Smoking Man on 07.16.17 at 6:08 pm

Relationships. Simple, The Woman is always right.

#23 For those about to flop... on 07.16.17 at 6:10 pm

FFW07.16.17 at 6:04 pm
So, lesson one: all markets are local. In a majority of them across the nation people use houses as homes, not speculative assets. Real estate ownership in most places is, at best, a way to preserve wealth not to create it. We should all think that way.
………………………
All markets are NOT local any more . The word is out about Canada: dependant on immigration, easy purchasing for foreigners, low interest rates, easy financing, government incentives, no capital gains tax, no stock market risks. It is a no brainer. Garth you are in denial.

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

He said the majority.

You sound like the mayor of Dease Lake…

M43BC

#24 Stone on 07.16.17 at 6:19 pm

So, Iain, don’t be a deplorable. Be a man. Do the right thing.

——————-

So we assume automatically that the girlfriend makes less money and doesn’t invest like the boyfriend? That seems to be a bit of a primitive midset. Can we not assume she makes the same or more than him and probably invested in the same way as he did and has $1 million as well. I really enjoy the posts, including this one minus the last sentence though. Just wasn’t necessary.

#25 Wrk.dover on 07.16.17 at 6:34 pm

He says there were no assets to split up though they both invested the leftovers. Maybe she has a million bucks too. If she paid a bigger roll in his support than he is letting on, I will not be surprised. He does sound pretty full of him self. She gladly let him go, what does that say about Iain right there?

As for the Ken, he is only underwater by 40 grand, some will be jealous of him soon enough.

#26 cecilhenry on 07.16.17 at 6:42 pm

Yeah Iain: ‘Do the right thing’:

Always have a pre-nup with your assets protected.

(YOU worked and slaved and were taxed for it. KEEP it.)

That way ensure you marry a woman, not the state as is the current situation, with your economic enslavement by proxy.

(If you have nothing to offer, and never produce — you’ll be safe.) Just like with government.

If she loves you she will want to respect your interests now and in the future. You will find out if she loves you for your virtue, or your assets.

And then maybe women can go back to the risk and commitment of marrying a man, and not the state by proxy.

Be a hero, be fleeced.

Be ‘virtuous’, be fleeced AND despised. That is the reality of a corrupt and parasitic system.

The state has encroached in yet another area of freedom. Alas older generations have not real idea what they created. Hence the rhetoric and virtue signalling:

https://www.counter-currents.com/2011/06/rotating-polyandry-and-its-enforcers-part-1/

Its not nice, but the truth is what is needed or it will only expand. Its a big problem.

It doesn’t improve until its actually addressed.

#27 oncebittwiceshy on 07.16.17 at 6:42 pm

#21 FOUR FINGERS WATSON: “All markets are NOT local any more . The word is out about Canada: dependant on immigration, easy purchasing for foreigners, low interest rates, easy financing, government incentives, no capital gains tax, no stock market risks.”

You’re missing one finger, my man, but we’ve got you covered and we’re all showing it to you.

Grow up. Yes, the markets are somewhat influenced by foreign buyers but they sure as hell wouldn’t have taken off the way they did in Vancouver and Toronto without the realtor/speculator hyperbole.

It’s amazing (not really) how real estate agents pointed out that the Chinese were going to Toronto after Vancouver’s tax and voila, all of a sudden we had the yellow peril and bidding wars. Then when the taxes came to Ontario, Montreal was the next target. Happy housing crash just might be right about you guys.

Greedy marketing was used to suck in naive buyers in B.C. and Ontario helping to explain why they share some of the highest mortgages and debt in Canada.

I hope that you sucked some of your friends and family into this trap just so you have to deal with their pain.

#28 Wrk.dover on 07.16.17 at 6:42 pm

#15 Halifax??? on 07.16.17 at 5:19 pm
The average detached home costs over $300,000 in Halifax??? Man alive. Canada is one f*****-up country.

————————————————————–

And the average Halifax detached home is not in a gnarly overcrowded gridlocked dead air hell hole neighbourhood either. Nor are all of the major intersections framed by buildings blotting out the sky.

The best part is your cottage can be reached in under an hour. Or you can choose to live on a lake, in the municipality!

#29 Blobby on 07.16.17 at 6:43 pm

Last bit was a bit sexualist? How do we know she doesn’t owe HIM money?

#30 Halifax??? on 07.16.17 at 6:56 pm

#28 Wrk.dover on 07.16.17 at 6:42 pm
————————————————————————-

Hey a nice town for sure. But I sure as hell wouldn’t pay $300,000 to live there. Please don’t take offense but all of Canada is so ridiculously overpriced. I could live in Las Vegas for a lot less than that.

No fish. — Garth

#31 Howard on 07.16.17 at 6:57 pm

#19 Millenial on 07.16.17 at 5:50 pm
I don’t understand today’s blog post.

“Do the right thing.” ?

Give her money? Hire a lawyer?

He said it was the most civil breakup he’d ever experienced.

BTW, to hell with these government workers. 1 million in savings by 35? tons of time to travel? tons of time to do a PhD in spare time? Man, kiddies, aim for a government job and don’t look back. what a joke.

————————————–

Ah if only it were so simple. In this joke of a country, nepotism is a cancer spread throughout the public sector. Unless you are related to, or close friends with, someone in management or in HR, your chances are breaking into that elite-yet-mediocre crowd is next to nil. Also helps to be a Quebecker if applying for federal roles, naturally.

#32 FOUR FINGERS WATSON on 07.16.17 at 7:00 pm

#23 For those about to flop… on 07.16.17 at 6:10 pm
FFW07.16.17 at 6:04 pm
So, lesson one: all markets are local. In a majority of them across the nation people use houses as homes, not speculative assets. Real estate ownership in most places is, at best, a way to preserve wealth not to create it. We should all think that way.
………………………
All markets are NOT local any more . The word is out about Canada: dependant on immigration, easy purchasing for foreigners, low interest rates, easy financing, government incentives, no capital gains tax, no stock market risks. It is a no brainer. Garth you are in denial.

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

He said the majority.

You sound like the mayor of Dease Lake…

M43BC
……………………….
Read it again. Put yer glasses on this time.

The reference was to real estate markets, not financial ones. And, yes, every one is unique and local. — Garth

#33 Reximus on 07.16.17 at 7:02 pm

No fish. — Garth

Or healthcare you can afford, dont get sick in Vegas

#34 LOL on 07.16.17 at 7:10 pm

Do not get married
DO not cohabitate

Your bedroom will stay lively and your wallet will stay safe

You are welcome

………..

where do these people come from?

#35 MGTOW on 07.16.17 at 7:11 pm

I would genuinely like to have a beer with this man.

#36 Tony on 07.16.17 at 7:12 pm

Re: #7 Tony the Gino on 07.16.17 at 4:19 pm

Try a different city, Woodbridge is in the middle of nowhere so pick a different city in the middle of nowhere. 800 grand should get you something larger than 3,000 square feet in Whitby. You might be able to find a house 2,000 square feet in Pickering for under 800 grand. You have to remember you’re paying five times what these houses would go for in America and when the prices of Canadian homes falls in line with the price of American homes (dollar differences aside) you’ll lose your shirt. Long term housing is probably one of the worst investments you could possibly make as almost every variable points to homes appreciating at less than the inflation rate for the next generation in Canada.

#37 jess on 07.16.17 at 7:13 pm

He warns that his past can become your future.
Harrys Last Stand Episode 3 The world Before the NHS when the poor died worst than animals by Harry Leslie Smith
https://soundcloud.com/harry-leslie-smith/harrys-last-stand-episode-3

blogger
In Episode 3 of Harry’s Last Stand, 94 year old Harry Leslie Smith

#38 Fred on 07.16.17 at 7:14 pm

hopped on the Pinarello today, did a casual ride around mississauga (mostly medaowvale area)– a STUNNING number of ‘for sale’ signs out. And ‘showings’.

WOW

i thing the panic button has been pressed

#39 Freedom First on 07.16.17 at 7:26 pm

#22 Smoking Man

Exactly Smoke!

Explains a lot of why I live alone. Sooner or later they try to do my thinking for me. The End.

#40 common sense on 07.16.17 at 7:32 pm

#30 Halifax??????

“No Fish?” Garth.

Remember this is Vegas he was talking about…. suckers all over the place.

Lots of Fish, with a Capital F.

#41 Spend spend spend on the cheap credit on 07.16.17 at 7:35 pm

I went to one of the largest malls in Greater Vancouver area. I had a hell of a time parking. It was busy busy busy. You would not think that times were tough for people as rents and houses skyrocket.

#42 Timmy on 07.16.17 at 7:50 pm

Nice post. Now let’s hear the same from someone who bought in Vancouver in 2009. They would have a lot more than a million.

Also, he must have socked away 5 grand a month to have over a million in less than 10 years, or have started with a few hundred grand. Highly unlikely for most people.

#43 Nonplused on 07.16.17 at 8:02 pm

The greater question that comes to my mind is, how do government employees amass a million dollar portfolio by the time they are 35? Even renting doesn’t explain that. And do they also have government pensions? If so, what kind of job is this and where can I get one?

If we assume it’s some sort of job that requires a university degree, and for simplicity ignore the returns of the portfolio (which would have been small in the early years anyway), Iain either saved an average of over $76,000 a year after taxes and living expenses or he was invested in Tesla and Apple (or housing).

So I don’t buy the story. What kind of government job pays so much that you can save $76,000 after taxes and expenses? Every year since you were 22? Assuming $60,000 a year in living expenses and a 40% tax rate Iain had to be earning $191,000 per year ON AVERAGE for those 13 years, or somewhere thereabouts, as a government employee.

Therefore I conclude that Iain’s girlfriend probably earned half the money and therefore Garth’s keen instinct was right again and he owes her a substantial portion of the portfolio. And they still made a huge amount of money! If the portfolio was built over only 5 years the income required was closer to $365,000 per year on average. I guess maybe if they are both lawyers who were content to live on $60,000 a year combined. And the girlfriend still must have made half the money. I don’t know of any 30 year old government lawyers that make $365,000 a year.

Looks like you should keep the job for a while Iain. Probably until you get the pension.

And Garth you might want to contact CRA. The numbers don’t add up.

But on the other side of it maybe you got trolled because people making that much money usually don’t quit until they are told they have to.

#44 No Way on 07.16.17 at 8:07 pm

#10 SandyM

“In Nova Scotia, common law partners who have lived together for at least two years may have responsibilities to provide financial support for each other. If you have a Registered Domestic Partnership there is no two year waiting period….”
https://www.legalinfo.org/family-law/common-law-relationships.html#8

____________________________________

This rule talks to partner support (equivalent to spousal support). Not sure of the calculations in Nova Scotia, but in Ontario, the amount and duration of support depends on the length of time together as a couple and the difference between incomes.

It does not speak to a division of assets.
A VERY big difference.

Like Iain or not, he is not legally obligated to share his savings in a common law marriage. Nor is she. Nor should they be in their circumstances (not married, no children, young and employable).

#45 Celeste on 07.16.17 at 8:10 pm

At least there are a few people who aren’t completely sexist here. Assume makes an ass of you and me. But mostly you and sadly, most of the commenters.

#46 US politics are funner than any other country, BIGLY! on 07.16.17 at 8:11 pm

Ha, ha, Kid Rock just announced he was going to run for the senate and the democrats are panicked! How bad does it have to be when Kid Rock announces he is running for senate and as of the day of the announcement he is presumed to be the front-runner?

Also how are they going to take him down using the usual approach of slandering his personal life? “Kid Rock is a dope smoking womanizer misogynist who dates porn stars!” “Ya, thanks!” will be the response.

It must be some sort of joke.

#47 Mike in Toronto on 07.16.17 at 8:14 pm

“girlfriend”

You know, she can be a girl and she can be a friend, but that woman who gave you the 6-figure job when you were 18 and covered all your expenses until you could finish off your PhD before 35 is still your mom.

#48 Vankongshow on 07.16.17 at 8:14 pm

This guy Llian and probably the X-girl sound like he’s dialed. The envy on here is typical of Canadian mentality. Instead of cry because he’s done well maybe respect that the two of them were maybe disciplined and sacrificed in their youth. Skipped out on designer clothes, drug habits and fancy cars-dollars add up if one starts saving at a young age. I say get out of the Matrix and GO SURF! Only live once enjoy it while you can Good job—on that note 1M is a long way from ever owning a home in Lower Mainland so eff it and go play like a European.

#49 And I Quote on 07.16.17 at 8:15 pm

“Women cannot complain about men anymore until they start getting better taste in them.”
― Bill Maher

#50 Fake News Again on 07.16.17 at 8:22 pm

#8 Howard on 07.16.17 at 4:22 pm
$1M by 35…well done on finding public sector jobs (likely paying twice the going rate of the poor shmos in the private sector) in a cheap town like Halifax. Some people have all the luck don’t they?

Yes yes, I know, big deal, $1M by 35, easily done. Is it just me or does everyone here seem to claim to be fabulously wealthy by the time they hit puberty?

__________________________________

Mostly just the ones bragging about working for public sector. Too bad for them there is a giant pension liability bomb about to go off….

#51 the Jaguar on 07.16.17 at 8:37 pm

Relationships? While the following comments might seem a ‘diversion’ from the topic of real estate, the economy, and money in general, the Jag respectfully requests your patience.

6:15p.m mountain standard time. The wonderful military helicopter has just flown over the downtown area of Calgary on its nightly destination to the Calgary Stampede Grandstand. I love the sound. Just as I love the sound of the Jets that flew over earlier in the day. It makes me feel like my country is strong, proud, capable. I think overall this is true.
But in the alley behind the apartment where the Jag is temporarily camped out in, (which is an expensive area of the city) there is something more going on – less strong, less proud, less capable of raising my spirits.
A young man, not more than 35 has been rummaging through the garbage bins. For at least an hour. He cannot be good at his task to take such a long time. He must be high on some drug. My previous presumptions were that those in that situation were mostly older men, perhaps caught in a downward economic cycle. But these days the’bin’ people are much younger. Some women, too. Every Tim Hortons or Starbucks employs foreign workers. Seems like those that truly want to seek out employment may have opportunities. But still a lost generation roams the streets and alleys, looking for bottles, milk cartons, whatever.
It’s like the ‘Dirty Thirties’. If you read the news it is all about interest rates, the housing rebound or collapse or pipelines. Is it just me noticing what looks to be a ‘lost generation’?

#52 rainclouds on 07.16.17 at 8:46 pm

#30 Halifax?? “I could live in Las Vegas for a lot less than that.”

Las Vegas, ” why did they build it on the FACE OF THE SUN ?”

Perhaps that’s your answer……?

#53 Sandman MGTOW on 07.16.17 at 8:53 pm

That’s the beauty of not getting married. You don’t have a mess to clean up. That’s why more men than ever are going their own way in western countries. They are avoiding marriages and co-habitation. Keep your nest egg safe gentleman!

#54 SimplyPut7 on 07.16.17 at 9:04 pm

#7 Tony the Gino on 07.16.17 at 4:19 pm

You could just wait, until September/October, when people who didn’t list their homes back in April/May hoping the housing supply would have cleared by end of summer, list their homes in the fall and find out no one is in a hurry to buy until they can get a sense of how many rate hikes to expect in the near future.

For now, just relax and enjoy the journey. We are witnessing some interesting times. The media, realtors and mortgage brokers who encouraged people to bid overasking and told them rates will never go up, have now turned their backs on these people, and said ‘you’re on your own’.

After homeowners with fixed mortgages start to renew mortgages at a higher rate; the 30% of homeowners with variable mortgages, start to see their monthly payments rise; and rates for line of credits and home equity line of credits start to increase; more buyers in Woodbridge may not be interested in offering $800,000 or more for a home.

#55 BillyBob on 07.16.17 at 9:04 pm

Story doesn’t add up. Not the numbers, not the logic. I have more than a bit of experience amassing wealth from sheer earning power and investing, with the advantage of tax-free status to boot, and his story doesn’t pass the smell test. Not envy, just calling it out.

Iain may talk a big game about leaving his government job, but he won’t. Guaranteed. Deep down he knows he’d never have made it in the private sector and there’s no way anyone that self-absorbed will kill his golden goose. (A million at 35 won’t last another 60 years – sorry). I’ve met the type, always talking about how they’re going to leave the safety of their job and “find themselves”. They almost never do it. It’s just too easy and comfortable where they are. The very, very few who do, inevitably spend the rest of their life crying about how hard their life is now and how they could have retired if they’d just stayed, etc. Tiresome.

As far as the relationship advice part of the column goes, it IS a bit odd that it assumes he made and kept more than his share of the investment income. Or did I miss that part? Unless portions of the story are being deliberately withheld, in our enlightened age surely it’s more than possible that she owes him? “Man up?” He may be guilty of coming across as a shallow dick, but it’s a big leap to suggest she’s a victim. Seems more a chance to preach than to inform.

This is a weird one today. Part truth, mostly obvious trolling, and some misguided lecturing.

#56 Wrk.dover on 07.16.17 at 9:05 pm

#30 Halifax??? on 07.16.17 at 6:56 pm
#28 Wrk.dover on 07.16.17 at 6:42 pm
————————————————————————-

Hey a nice town for sure. But I sure as hell wouldn’t pay $300,000 to live there. Please don’t take offense but all of Canada is so ridiculously overpriced. I could live in Las Vegas for a lot less than that.

No fish. — Garth

———————————————-

So, Ms Halifax, as a new poster on here, please stay focused. This site is about Canada. I thought when you referred to $300,000 being _____ in your inaugural posting, you were maybe comparing Big Fog NS. to Big Smoke Ont., or Big Smog BC., which both cost four to five times as much for much less.

An average Halifax home is worth as much as or less and even much less than the build. Ask an insurer for verification if you won’t take my word.

Vegas homes, not so much.

#57 FOUR FINGERS WATSON on 07.16.17 at 9:05 pm

The reference was to real estate markets, not financial ones. And, yes, every one is unique and local. — Garth
……………………..”..
The real estate market in Moosephart Sask. is unique and local cuz no one wants to live there except the locals.
The real estate market is Vancouver is international. You should go to Vancouver some time Garth, check it out, chillax, light one up, put your feet up, have a screech, pet the dog.Ride that big hog of yours around the Lower Mainland and see who lives there.

Read it again. It’s okay to move your lips. Really. — Garth

#58 guru on 07.16.17 at 9:06 pm

Guru is back….This is very important: Banks will be jacking up their Fixed rates by 40-50bps next week as bond yields have shot up dramatically over the past few weeks (5yr bond yield is over 1.5% right now). Here’s a breakdown:

Since April 2017, the below has/will happen:

1) As of July 2017, prices have been down approx 20%
2) Next week, interest rates are going up by 40-50bps
3) As of Aug 2017, prices will be down by approx 30%
4) As of Sept 2017, prices will be down by approx 40%
5) In Oct 2017, BoC increase by 25bps again and will be announcing the new stress test
6) As of Nov 2017, prices will be down by approx 50%
7) As of XMAS 2017, prices will be down by 55-60%

Above is the scenario for all towns in Brampton, Newmarket, Guelph etc. Toronto will see slightly lower drops.

#59 mathman on 07.16.17 at 9:20 pm

re#43 – Bang on

My spider sense tells me he either had a running start (inheritance) and or ate cat food, make his on clothes and biked to work all year. (In Halifax)

I’m not hating on the success, but that is a hell of a lot to put away in a short period of time. I would assume gov’t jobs in Halifax would not pay much of a premium but hey he could be some type of scientist or something along those lines.

I’m a little older – I do well but was not making the kind of cheedar that I do now in my mid-twenties.

Just an observation. Lot’s of folks under 40 on this blog claiming to have buckets of cash, which is possible but not all that probable.

#60 Smoking Man on 07.16.17 at 9:21 pm

#53 Sandman MGTOW on 07.16.17 at 8:53 pm
That’s the beauty of not getting married. You don’t have a mess to clean up. That’s why more men than ever are going their own way in western countries. They are avoiding marriages and co-habitation. Keep your nest egg safe gentleman!
….

Marriage is s partnership. You got each others back. If you don’t have that you got nothing. Should have trust, and one bank account. If separate bank accounts you dont have a marriage.

Marriage = 2 become 1

Post moderism, NWO brainwashing seeks to destroy that concept. Destroy the family and culture easily take over the country.

Not on my watch you commies.

Dr Smoking Man
Hammered again in Niagara Falls NY.

Enjoying it for a few more weeks before we are out of range.

Gonzo Gone.

Destination still to be determined. Short listed to 4 towns.

Garth I’ll be up next weekend to chat over an ice cream.

#61 common sense on 07.16.17 at 9:24 pm

#51 the Jaguar

Big uptick in my southern Ontario town with at least 5-7 people a week going thru blue bins for bottles to redeem. Add the stress on local food banks, more food programs for children (not in school, thus not being fed), it is very sad….

#62 cmon, on 07.16.17 at 9:29 pm

The greater question that comes to my mind is, how do government employees amass a million dollar portfolio by the time they are 35? Even renting doesn’t explain that. And do they also have government pensions? If so, what kind of job is this and where can I get one?

………

of course it is BS. People fell for it?

#63 n1tro on 07.16.17 at 9:29 pm

Like Garth’s six pack, Iain’s $1 million may be a bit of an embellishment, perhaps a little liberal with the rounding?

In any rate, still good none the less. $1M is also my goal to quit the rat race and work for a charity for fun. Just don’t sacrifice “living” during the process.

#64 Halifax??? on 07.16.17 at 9:38 pm

Hey a nice town for sure. But I sure as hell wouldn’t pay $300,000 to live there. Please don’t take offense but all of Canada is so ridiculously overpriced. I could live in Las Vegas for a lot less than that.

No fish. — Garth

You can always hit the buffet at the Bellagio ;-)

#65 Smoking Man on 07.16.17 at 9:48 pm

Been watching clips on you tube about whats going down in Europe. No go zones

If Hunter S Thompson was alive today, he would be siding with the Jesus Freaks he so hated.

Some times the devil you know is far better than the alternative freaks.

Hunter I found my own voice. This is where we depart.

You would be rolling in your grave if you saw what the democrats have become.

#66 T on 07.16.17 at 9:50 pm

#10 SandyM on 07.16.17 at 4:36 pm
Thank you, Garth, for encouraging that self-absorbed twit, Iain, to recognize that he was in a common-law relationship and needs to look at an equitable split of the assets. There are laws regarding this, Iain boy:
——
“In Nova Scotia, common law partners who have lived together for at least two years may have responsibilities to provide financial support for each other. If you have a Registered Domestic Partnership there is no two year waiting period….”
https://www.legalinfo.org/family-law/common-law-relationships.html#8
——

And for #3, TurnerNation, gender parity in government employment doesn’t mean the woman in a relationship was well paid

———

It’s no wonder high earners and those of high net worth refuse to cohabitate and marriages end so often. The incentive on both sides is undeniable.

Unless there are children involved there should be absolutely no financial support after a relationship ends.

I am for splitting assets and wealth aquired after a marriage or a relationship qualifies for common law, but nothing earned previous to these relationship status changes.

This is a part of law which needs serious attention and updating for today’s realities. Sure you can get pre-habitation and pre-nuptial agreements if you want to kill the relationship by introducing trust issues.

You certainly sound trustworthy… — Garth

#67 T on 07.16.17 at 9:56 pm

Perhaps a large portion of Iain’s portfolio was obtained through an inheritance. Does his ex lady have rights to this?

#68 Smoking Man on 07.16.17 at 10:05 pm

#61 n1tro on 07.16.17 at 9:29 pm
Like Garth’s six pack, Iain’s $1 million may be a bit of an embellishment, perhaps a little liberal with the rounding?

In any rate, still good none the less. $1M is also my goal to quit the rat race and work for a charity for fun. Just don’t sacrifice “living” during the process.
….

As long as your job is a hobby you get paid for it, its not really a rat race.

Its when you do shit you hate that it becomes a rat race.

Through my own self idolization broadcasts to the world on here and especially linled in . I burned my hobbies.

Now I write.. Tourcher, dont come natural to me, and the pay is shit.

I fd up huge. No point stairing at the rearview mirror, you might get a glimpse of an ugly bastard, and miss the tree your car is headed for.

Its life, enjoy the view.

#69 John on 07.16.17 at 10:07 pm

Amazing how people who expose the criminal elite end up killing themselves just before they would testify

http://www.zerohedge.com/news/2017-07-16/haiti-official-who-exposed-clinton-foundation-found-dead

#70 TheDood on 07.16.17 at 10:11 pm

Just got back from our usual sunday afternoon “open house fest” in surrey-langley. Everything still WAY overpriced – detached, attached, condo. Some realtors still pushing the FOMO in a big way. Prices are not going to fall even a little in this area according to them. Even with rising interest rates, record household debt (with YVR area no doubt leading the way!), and the GreeNDP set to take charge. None of it matters, prices are not going down so no point waiting, you NEED to buy now!

#71 Happy Housing Crash Everyone! on 07.16.17 at 10:38 pm

#58 guru

Thanks for the update.

HappyHousing Crash Everyone! :-)

#72 Smoking Man on 07.16.17 at 10:46 pm

Hunter S Thompson . If you did not chicken out and took the ride. You would not have eaten a bullet now you are just dust in the wind. Dude the potencial of stuff you would be liking now not worth pain relef.

I’m your ghost on twiitter not even close to your skill set. But someoone had to take tbe tourch for spirit sakes.

I dident even know who you were till I found this pathetic chunk of real estate on the world wide web where its master never experienced the feeling of the big toe pole dancing a flip flop center.

Cowboy boats = stink foot. Daurathy is a special lady to put up witb that shit.

You are one cheap flip-flop from perdition. — Garth

#73 Victor V on 07.16.17 at 11:02 pm

“If you have too much debt, it’s definitely not good,” says Murshed Chowdhury, an associate professor of economics at the University of New Brunswick.

http://www.cbc.ca/news/canada/new-brunswick/hike-interest-rates-1.4205827

#74 Keith in Calgary on 07.16.17 at 11:05 pm

#67….

Inheritances are not divisible in a divorce unless the funds are pooled. So, if you get a check, DO NOT PUT IT IN A JOINT ACCOUNT or joint asset. Period.

And to think Garth ridiculed my wife and I for our financial and legal marriage arrangements a few threads back. If you don’t plan for the worst, it will find you when you least expect it.

#75 sam on 07.16.17 at 11:11 pm

not sure how you can compare the return. with the house your total investment about 10% you cannot have a portfolio of the same 400 k with that and achieve a higher return.. this guy made about 40k on the downpayment.

#76 Cici on 07.16.17 at 11:19 pm

#12 Money Coach

“The Girl” quite obviously did not accumulate near that much money, which is why Garth (who knows the whole story) is encouraging him in polite terms not to be a dick.

Her salary was probably a lot lower, yet the living costs were probably split equally. Worse, she probably assumed more of the household expenses (many of us gals cook, clean and decorate the living quarters for our men, all of which involves costs in materials and time). I know that I sometimes feel frustrated that my BF (who I love incredibly) has plenty of time to sit on his fanny playing videogames thanks to the fact that I cook and clean and take care of him to ensure that he doesn’t starve or die of some horrible staphylococcus. But at least he realizes that and does a lot of sweet things to try to compensate despite that parastic gaming addiction (unlike some of the blowhards on this blog who constantly sis women and think we are all frivolous, self-serving fashion victims who don’t know how to read or count).

So, how do you determine what’s fair? Gotta look at services rendered and monetize the contributions. Not very sexy, but Iain appears to get off on spreadsheets anyways.

#77 Cici on 07.16.17 at 11:22 pm

I meant “dis” not “sis” women…bloody iShit technology!

#78 Smoking Man on 07.16.17 at 11:35 pm

You are one cheap flip-flop from perdition. — Garth
….

You envious bastard

#79 Canadian in LA on 07.16.17 at 11:38 pm

I love you Garth but your math does indeed exhibit confirmation bias. According to your math, return would have been 50% of cash invested over 5 years.. I’ll need a calculator to figure out the annualized returns but probably around 8%. Of course that doesn’t include a whole bunch of expenses in the analysis but then principle residences isn’t really investments are they?

#80 Smoking Man on 07.16.17 at 11:59 pm

#39 Freedom First on 07.16.17 at 7:26 pm
#22 Smoking Man

Exactly Smoke!

Explains a lot of why I live alone. Sooner or later they try to do my thinking for me. The End.
..

The love less. I love you man and pray, I’m religious now, not sure what god yet. But if you find her.

It will complete you.

Happy hunting.

#81 Keith on 07.17.17 at 12:04 am

Iain should consider that as a federal government employee he may well have access to a perk that is denied the majority of the population – a one year leave of absence, without pay. With his resources, he can well afford to experience some adventure travel, practice surfing in cheap/interesting locations, meet some interesting people and take stock of his situation.

A professional government job with a gold plated pension is a major asset by the standard of most people’s lives, not something to be tossed lightly. One year of travel won’t completely ruin his retirement, once he has enough time along with his assets, he will be well funded. It is enough time to enjoy a carefree life, consider his options outside of his job and decide whether he can find enough meaning doing something else to sacrifice the job security and pension. However he became worth seven figures doesn’t matter at this point, he has choices that are afforded to very very few. Make the most of the opportunity.

#82 Karlhungus on 07.17.17 at 12:11 am

No fees on buying

Closing costs can be significant. — Garth

#83 T on 07.17.17 at 12:27 am

#66 T on 07.16.17 at 9:50 pm

You certainly sound trustworthy… — Garth

I most certainly am. Married, no pre-nuptials, and a fairly high net worth I worked extremely hard to obtain at an early age before meeting my wife. I believe I chose well and I chose for life, unlike many I know.

Facts are in today’s day and age, with hookup culture and the ill fate of most marriages, tinder, Ashley Madison, etc, there needs to be protection built into laws.

I’m not speaking solely of protection of men from women. I know many couples where the woman is the major breadwinner with a sizeable nest egg – and the guy is a total dbag. Wouldn’t it be nice if women in similar situations could walk out and keep all assets accumulated prior to the relationship? Wouldn’t that be a better world for many? I think so.

#84 smallcapsteve on 07.17.17 at 12:29 am

So lets say Iain, makes an average of 80k from the time he is 22 to 35. Approximately 13 years. Now lets say he is a VERY good saver and is able to save 20k of that every year.

Now at 5%, the number he quotes in his piece. What does an annuity of 20k w/ 5% work out to over 13 years?

354k…..

I ain’t buying this one….. At least not how he frames it…

#85 Smoking Man on 07.17.17 at 12:31 am

The shit I’m going through right now, just want to curl up into a ball a die. The easy way. Not how I roll.

I’m a writer now, It’s story that needs to be told.

Somewhere between a glass half full, and empty is where I find the truth.

And you know the truth lies.

Good night what a buzz.

#86 For those about to flop... on 07.17.17 at 12:32 am

Hey Colin ,or anyone on here with access to the Mls ,I would like someone to tell me what these two condos sold for last week to see how strong the condo market out in Richmond is.

Thanks in advance.

I think that there is a strong chance that they are drinking Pink Lemonade but they could be at River Rock Casino drinking Champagne …

M43BC

5001-5511 Hollybridge Way, Richmond Sold

Dec 18:$689,000
Jul 10: $578,000
Change: – 111000.00 -16%

5003-5511 Hollybridge Way, Richmond SOLD.

Dec 18:$689,000
Jul 10: $569,000
Change: – 120000.00 -17%

https://www.zolo.ca/richmond-real-estate/5511-hollybridge-way/5003

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

https://www.zolo.ca/richmond-real-estate/5511-hollybridge-way/5001

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

#87 Stock Picker on 07.17.17 at 12:50 am

Nobody wonders why civil service unions and crown corps spend millions lobbying for Liberal candidates. Ian never has to save a nickel with a government pension piling up. And kids…..we paid for his Ph.d……another perk they receive is free education upgrades. But…..for us lowly Canucks who don’t get to watch porn all day…..there are some fantastic opportunities lined up after this summer swoon……none of them in Europe with Italy threatening to open the floodgates of hundreds of thousands of warehoused ‘immigrants’. The EU is a suckers bet…….Maple looks good for the autumn harvest.

#88 AR on 07.17.17 at 12:51 am

No assets to split? What do you call a $million portfolio?? Unless she has her own $million portfolio it’s now worth $500,000 each.

If you’re still friends she must have half? Please confirm.

#89 Screwed Canadian Millenial on 07.17.17 at 1:41 am

DELETED

#90 grampa hindsight on 07.17.17 at 1:53 am

Thank god no more dog pictures
The last one must have gone through the chipper

#91 Slippery cricket on 07.17.17 at 2:49 am

I call bullshit ……1 mil while paying rent by the age of 35! Ya…..sure.

#92 Good calcs #43 Nonplused on 07.17.17 at 2:53 am

Yup, pretty good calcs. and reasoning I say.

Then again, there is an inheritance or a lottery win that can account for miraculous public servant savings of $1 MM at age 35 years. Maybe even a few huge stock market windfalls wins along the way.

Hard to say.

People talk a good story but do not tell you the source of their income.

Regardless, good to read curiosity and reasoning power strong in some like yourself.

#93 neo on 07.17.17 at 6:18 am

Garth,

So I noticed my variable rate hopped 25 basis points this week but my actual payment remained the same. Is the bank simply shuffling more interest in each payment and less principal being drawn down?

I think the majority of homeowners need to physically see their mortgage payments go up for the effect of these increases to change their psychology and behaviour.

#94 NoName on 07.17.17 at 6:31 am

Everything we saved this year went to my wifes accounts. I priclam me for the best husband of the year.

#ResistanceIsFutile

#95 Mike in Toronto on 07.17.17 at 6:48 am

#76 Cici

When I was in my 20s, I lived with a woman for 7 years. Our finances were completely and utterly separate. Yes, rent was split equally, but we *both* saved money splitting rent.

She frittered what she saved eating out for lunch every day, buying heaps and heaps of novels and clothes, constantly had a balance on her credit cards and student debt.

I brown bagged every day, even packed a thermos of coffee, didn’t spend a dime. I paid off my student debt and saved to buy a house. She knew what I was doing and only looked mystified at how I was saving. There wasn’t a big difference in our salaries. Sometimes she made more than I did. Then came an awkward situation. Do we split up just because I’m ready to buy? How does she contribute without any money?

Things didn’t last much after that. There was a house purchase, her name wasn’t on the deed. A cohabitation agreement involved. A lot of difficult plain conversations which went over far too easily with her. She could have forced the issue, but didn’t want to deal with the truth. Eventually I broke up with her. There were other issues which she didn’t want to deal with… like her video game playing.

My wife today? She was in terrible debt when we met. We moved in together and split rent.

Within two years, she paid it all off. Within 5, she’s built a private nest-egg. And she makes significantly less than I do. We only married recently.

Now she can never imagine carrying a debt on her credit card and we’re mingling our finances.

Oh and hey, I didn’t think about it, but my wife is always spending too much time cooking and cleaning. I try to get her out of the kitchen, but she’s drawn to it. She just loves the food and isn’t too fond of my cooking. I still brown-bag though, but she’s packing my sandwiches. She’s awesome.

So, should I go after my ex for all the cooking and cleaning I did for her? Hmm. Could be lucrative. … even joking about it makes me sick to my stomach, she’s doing fine and is a decent person. I don’t know how people can think it’s okay to be so mercenary. Take responsibility for your own finances, looking backwards and saying “oh yeah, all those dinners I made you will cost you” is just horrible.

#96 jess on 07.17.17 at 7:21 am

Can a building owner can deduct “lost rent” from their taxes as long as a space is vacant. And who determines how much rent is being “lost”?

“Under the current policy, if a storefront is vacant its property tax is reduced by 30 per cent.”
….”He thinks getting rid of the tax break will force landlords to adjust rents, fix up their properties to attract tenants or consider subdividing store fronts to lease out because otherwise, the tax break is like a “reward” for leaving a storefront empty.”
https://www.therecord.com/news-story/7425850-councillor-proposes-scrapping-tax-breaks-for-empty-storefronts/

=========
negataive gearing?

http://www.vacantnewyork.com/

#97 NoName on 07.17.17 at 8:09 am

It’s kinda funny same or similar comments when millennial rev. Both time when they came with 500k first and few.yrs later with their 1M.

Noone believed, comments were like inherited, stolen given to them, this and that… It’s not that difficult with out kids.

Initial deposit
1k
4.25k a month
6.5% anual
13 yrs
1.025M cad

#98 Scott Free on 07.17.17 at 8:15 am

Hub and I started out tabula rasa @ age 39 – had a miniscule savings that allowed for my self employed, single earning self (husband was new to Canada and not yet legal to work or own property or have any financial history) to put a deposit on a huge house in a cheap Canadian city. Through a series of brokers, family loans and helocs we clawed our way (together) into 3 additional investment properties. Long story shortish – we sold the grand home& are moving into one unit of our own rentals. I will never understand the concept of owning and working towards keeping a mil+ mortgage – we will work for a house that gives a financial return, was purchased below $200,000 and allows us to live a good life. Also – to all you relationship fraidy cats, we’ve been able to build our financial security together in a way that we never could have as individuals.

#99 Livin Large on 07.17.17 at 8:20 am

“I think the majority of homeowners need to physically see their mortgage payments go up for the effect of these increases to change their psychology and behaviour.”. So, so, so very true.

There are plenty of mathematical “facts” that even though 100% true, don’t also translate into reality when human nature is added to the scenario.

You’d think “fact” & “reality” would very well acquainted with each other but unfortunately you would be wrong.

The psychology of homeowners is less vital to market values than the psychology of potential buyers. And they’re getting spooked. — Garth

#100 MF on 07.17.17 at 8:40 am

The money must have come from somewhere else (inheritance perhaps).

A lot of people are completely misinformed on here. close family member works for the federal government amd makes about 47k a year. Almost all positions are contract with zero security. There are mass layoffs all the time like in the private sector.

There really is nowhere to hide these days.

MF

#101 IM in C on 07.17.17 at 9:03 am

Be a man?
OK here it is…
You are either married or you are not!

#102 Toronto Dweller on 07.17.17 at 9:23 am

I don’t get it this MGTOW movement to be honest and I am in my 30’s. Lots of playboys and solo men living out their hobbids is a not a way to build society. What I admire about many new immigrants is focus on a family a bedock of any society. World is global now, you don’t have to marry Canadian, but make sure the woman you choose is not a SJW, feminist but has a more traditional mindset. A woman you can have children with.

#103 maxx on 07.17.17 at 9:28 am

#20 Capt. Serious on 07.16.17 at 5:51 pm

“I wonder what Iain’s saving rate was and his salary?……. I don’t know what Iain had before 2009, but he would have been squirrelling away quite a sum per year to get to $1M by 35. In any case, his letter is mostly a lesson in how income outstripping expenses by a significant amount allows one to build wealth. Kind of basic.”

It’s always been a case of living below one’s means and some are able to live far below their means, leading to becoming MM’s at a young age. This often eventually leads to becoming a MMM as savings momentum has become established and is entrenched.

Many of those who get caught up in $ervicing their ego$ and engaging in lifestyle display almost always end up scratching their heads, wondering what gives? How the he\\ did s/he do it? Others spit venom at these self-made winners and fabricate nasty, loser excuses as to why they are now set for life….as though they have “cheated” their way to wealth.

Becoming rich has never been a big mystery. It’s never been sexy….but it sure looks that way in the rear-view mirror.

It’s beyond tragic to be underfunded, let alone in debt in today’s world.

#104 rknusa on 07.17.17 at 9:41 am

and you thought foreign buyers were a nonstarter

http://business.financialpost.com/business/dollar-must-go-up-more-to-kill-foreign-interest-in-canadian-real-estate/wcm/6834c95f-2b7b-46f5-8b6c-4b5c52476323

#105 Victor V on 07.17.17 at 9:58 am

Canada’s home sales plunge 6.7%, the biggest drop in seven years: The Greater Toronto area led the decline

http://business.financialpost.com/real-estate/newsalertjune-home-sales-fall-6-7-per-cent-biggest-monthly-decline-since-2010-2/wcm/2c58ae82-092f-4707-a63c-03788229293a

#106 Victor V on 07.17.17 at 10:02 am

June home sales fall 6.7%; Toronto sees third monthly decline

https://www.theglobeandmail.com/report-on-business/june-home-sales-fall-67-per-cent-biggest-monthly-decline-since-2010/article35706463/

“The recent increase in interest rates could reinforce a lack of urgency to purchase or, alternatively, move some buyers off the sidelines before their pre-approved mortgage rate expires,” Gregory Klump, CREA’s chief economist, said in a statement.

He said buyers who had bought a home before selling their existing home may also “become more motivated to reduce their asking price rather than carry two mortgages” as the falling market gives prospective buyers cold feet.

#107 Cici on 07.17.17 at 10:04 am

#95 Mike In Toronto

I actually totally agree with you in those circumstances, and my situation with the BF is very similar. We both had student debt, I had credit debt too, we both worked hard to budget, pay it all off (seperately, we don’t co-mingle our finances), save and invest.

I don’t know the size of my BF’s portfolio, but it’s probably bigger than, or at least growing at a faster rate. But we both make pretty much the same salary, and yes, he is more frugal than I am, but yes I do contribute more to the household spending and save him a lot of money with careful meal planning and budgeting, and have even changed my diet to due to his allergic restrictions and obscene need for red meat. BUT, I’m OK with that and would never go after him for cash in the event of a break-up, no matter what.

All I was really trying to say is that many women (not all, of course) contribute a far greater amount to household finances than many guys seem to realize. Some of the
guys on this blog seem to undervalue a lot of our “services” and not just on terms of cooking (free childcare, sex, counselling, housework, cleaning…the kinds of things that can add up for single guys). Of couse, many guys do their equal part in all of that, or make up for it in other ways (carpentry, yardwork, mechanics, etc.)

In anycase, I wasn’t suggesting that all women should have an automatic stake in their partners’ finances, and personally I don’t think common-law partnersips should be subject to the same provisions and contracts as marriages either. But I don’t think either partner should completely freeload off the other other for personal gain at the other’s expense either. I think that’s why Garth suggests choosing your partner well and being on the same page financially; he promotes co-mingling of finances as a way to ensure fairness, openess, accountability and responsibility towards shared goals. My partner and I prefer to keep things seperate, but the trust is there and we both benefit and we’re happy :-)

#108 Livin Large on 07.17.17 at 10:14 am

Here we go with the “mathmatical fact” vs “Reality” concept again:
“Initial deposit
1k
4.25k a month
6.5% anual
13 yrs
1.025M cad”

Who saves $4,250 per month after tax even as a couple? Yes, the calculation may be mathematically correct (too busy to pull up a compound interest calculator to confirm) but really? And over the last 13 years, how many real world folks have earned a consistent 6.5% compounded RoR? Yes, GT’s clients maybe but just because something is mathematically “possible” doesn’t mean it it realistically going to happen.

#109 Mike in Toronto on 07.17.17 at 10:31 am

#97 NoName

That’s $51k per year in after tax savings.

Sure easy to save a million when you’re earning well over $100k and living like a pauper for 13 years.

My first real job in 1997 paid $30k pre-tax. I was still able to pack away $6k or so. Even in 2004 I was only earning $55k.

#110 IHCTD9 on 07.17.17 at 10:42 am

#46 US politics are funner than any other country, BIGLY! on 07.16.17 at 8:11 pm

__________________________________________

I’d wait in line to vote for Kid Rock.

One thing’s for sure, you never met a MF’er quite like him.

#111 Stan Broock on 07.17.17 at 10:58 am

In many countries assets split after marriage breakup/divorce only applies to:
1. Assets acquired during the marriage.
2. Only for legal marriages/not common in law.

Notably in US and Canada this is not the case.

It is very logical for assets acquired by inheritance or prior to a marriage not to be split in case of a divorce.

What is the basis of a claim by the partner who has not contributed to the acquisition of these assets in first place?
None.

The introduction of the split of all assets, including in the case of common law partner has one single thing in mind and it is not justice:

It is to offload responsibility for the poorer/ disadvantage partner from the state to the richer former partner.

That’s it. The government is pretty much saying: when you are getting married and if you are rich, you release government from further legal obligations for your poorer spouse.

#112 IHCTD9 on 07.17.17 at 11:20 am

#76 Cici on 07.16.17 at 11:19 pm
#12 Money Coach

“The Girl” quite obviously did not accumulate near that much money, which is why Garth (who knows the whole story) is encouraging him in polite terms not to be a dick.

Her salary was probably a lot lower, yet the living costs were probably split equally. Worse, she probably assumed more of the household expenses (many of us gals cook, clean and decorate the living quarters for our men, all of which involves costs in materials and time). I know that I sometimes feel frustrated that my BF (who I love incredibly) has plenty of time to sit on his fanny playing videogames thanks to the fact that I cook and clean and take care of him to ensure that he doesn’t starve or die of some horrible staphylococcus. But at least he realizes that and does a lot of sweet things to try to compensate despite that parastic gaming addiction (unlike some of the blowhards on this blog who constantly sis women and think we are all frivolous, self-serving fashion victims who don’t know how to read or count).

So, how do you determine what’s fair? Gotta look at services rendered and monetize the contributions. Not very sexy, but Iain appears to get off on spreadsheets anyways.
______________________________

That’s a big stack of probablys there. I’m guessing you don’t really know how things went down at Iain’s house. What is most likely, is that Iain doesn’t have the million and won’t be quitting his job.

BTW, if you work full time, your BF’s gaming and happiness to allow you to be his Mom will come to a head 8-12 years into the relationship. You’re not going to get the “sweet things” compensation package for very long, nor will you be happy listening to Skyrim in the background as you mash the potatoes.

#113 Looney Baloney on 07.17.17 at 11:23 am

#17 Blogdog123
He owes her everything, naturally.
The reason she spent so much and was driven into debt was because of his oppression of being a straight male, and for society’s opression in the poor woman. Clearly, it isn’t her fault she is in financial trouble, but Ian, and everyone else around her. If you don’t agree with me, you are a sexist pig.

Additionally, he should also indefinitely send her half his paycheck after they split, because she has now become accustomed to her current quality of life, and it is his duty to support her. It is morally and legally the right thing to do.

Is this a great country or what? Where else in the world will you find such equality and fairness? No wonder 9/10 sex transforms are male -> female.

Now imagine the roles were reversed. H would still be would be the one who owes her, because equality.

#114 45north on 07.17.17 at 11:27 am

Toronto Island Airport:

Toronto Island Airport is the ideal spot to showcase Bombardier’s new C-Series. The Liberal Government banned the aircraft at the Airport but London City Airport thinks the C-Series is just right:

However, the arrival of the C Series is changing the playing field by increasing opportunities for LCY in two significant ways: First, it doubles the range that can be flown from LCY. Secondly, the excellent airfield performance of the C Series allows it to take off and land on the airport’s short runway and others like it around the world. With the perfect combination of steep approach, short-airfield capability and longer range, the C Series will open new opportunities for LCY. Additionally, because the C Series offers the lowest noise level of any commercial jet, LCY can accommodate more aircraft while meeting its noise restrictions and minimizing local noise.

http://mcaf.ee/90cbdu

( the original url was way too long )

this isn’t hard – the Liberal Government doesn’t have to negotiate with foreign governments to allow the C-Series at Toronto Island Airport. This is a simple step that would support the Canadian aircraft industry.

#115 Raging Ranter on 07.17.17 at 11:27 am

Nova Scotia was the first province where courts ruled – circa 2000 or 2001 – that certain common law relationships had to be settled in family and divorce court, and subject to division of property laws, just like real marriages. The argument was that since common law relationships now had equal footing before the law (e.g. spousal benefits, dependent spouse tax credit, etc.) they may have to be treated the same way in the event of a split. Iain better hope his ex also left the relationship with close to $1 M in assets. If not, he’d better hope she didn’t read the last paragraph today.

#116 paracho on 07.17.17 at 11:37 am

Numbers are in and TREB is not even hiding it in the respected Globe and Mail . They are trying to put a spin on it ( don’t blame them, it is their bread and butter!) but this is just the beginning.
https://www.theglobeandmail.com/report-on-business/june-home-sales-fall-67-per-cent-biggest-monthly-decline-since-2010/article35706463/

#117 paracho on 07.17.17 at 11:39 am

Numbers are in and TREB is not even hiding it in the respected Globe and Mail . They are trying to put a spin on it ( don’t blame them, it is their bread and butter!) but this is just the beginning.

#118 Money Coach on 07.17.17 at 11:56 am

#76 Cici on 07.16.17 at 11:19 pm

As someone who has “starred” many moons ago in one of Garth’s columns, I suspect that his information came from the letter Iain wrote and there was not a lot of additional information gathered. Now there could have been additional conversations and correspondence that Garth didn’t mention but like I said ” I don’t know where the idea came from” and it certainly wasn’t obvious.

The point of my comment was that the idea that the “girl” in Iain story was a victim hadn’t even crossed my mind. In many of the millennial couples that I work with the woman makes as much or more than her male partner – especially when there is no children in the picture.

This woman may have been a “frivolous, self-serving fashion victim who don’t know how to read or count” and who came out of this relationship perfectly content with nothing – It’s just that my default assumption, until given information to the alternative, is that she was a smart, well paid professional, who fully understood the concept of renting and accumulating a portfolio.

FBC45

#119 IHCTD9 on 07.17.17 at 12:00 pm

#102 Toronto Dweller on 07.17.17 at 9:23 am
I don’t get it this MGTOW movement to be honest and I am in my 30’s. Lots of playboys and solo men living out their hobbids is a not a way to build society. What I admire about many new immigrants is focus on a family a bedock of any society. World is global now, you don’t have to marry Canadian, but make sure the woman you choose is not a SJW, feminist but has a more traditional mindset. A woman you can have children with.
___________________________________

MGTOW is about Men stepping out of long expected traditional male roles in response to the changing dynamics in modern State controlled relationships. It is also about relationship math.

50/50 chance your marriage will fail. 90% chance of financial destruction for Men if they’re on the wrong side of that 50%. Does not matter what happened in the marriage to kill it.

I know a guy who worked his dingalings off his whole life building a business, investing, planning for the future. After 25 years of marriage, his wife (never had to work a day in her life) decides to hook up with an old high school flame for a week of hot sex in PQ.

This guy tried everything to save the marriage, lost like 30 lbs in 6 weeks from stress. Could barely focus on anything but his wayward Wife and the death of his family. He still loved her to pieces, but she “needed time to think (ie. bang her deadbeat affair partner a few more times)”

He went to counseling and listened to how the affair started because of his failures as a husband. He read books that taught him how to keep his Wife happy and content. He listened to his Wife blame her cheating on him while he promised to change.

He was about ready to put a bullet in his head when he finally just gave up, said “F-it”, and filed. He got DESTRYED financially, Court couldn’t care less what his story was.

Every Western Man alive knows at least 1 guy that this has happened to. Probably more. MGTOW is a philosophical lifestyle that generally embodies rejection of typical Male norms, and prioritizes safety from the Courts, and Financial independence and security.

I totally get it myself…

#120 yup on 07.17.17 at 12:07 pm

That’s $51k per year in after tax savings.

Sure easy to save a million when you’re earning well over $100k and living like a pauper for 13 years.

My first real job in 1997 paid $30k pre-tax. I was still able to pack away $6k or so. Even in 2004 I was only earning $55k.

……..

truth. Lots of flat out lies out there. End of the day the average canadian cannot tuck away 35-50% of after tax income. Add kids and its total NONSENSE (assuming not in top quartile of earners and GROSS fiscal conseravtives).

#121 MF on 07.17.17 at 12:31 pm

#102 Toronto Dweller

Yup. Just a bunch of bitter guys.

My gf is traditional and from a different country. Her friends are all the same. You should hear the stories her friends have with “men” here in the gta trying modern western dating tactics on them (being busy, evasive, showy, lying about money and worth etc.)

Huge turnoff for all of them who are more confused than anything else.

MF

#122 JRT on 07.17.17 at 12:34 pm

Great articles. Don’t know where you find the time to write and research. Where I live in the South Okanagan, they seem to think it’s Sunshine, lollipops, rainbows everywhere, to quote an old 60’s pop song.

#123 oncebittwiceshy on 07.17.17 at 12:44 pm

The Dupe: “Prices are not going to fall even a little in this area according to them. Even with rising interest rates, record household debt (with YVR area no doubt leading the way!), and the GreeNDP set to take charge. None of it matters, prices are not going down so no point waiting, you NEED to buy now!”

The funny thing is when that is actually happening Global News is touting it like they just discovered electricity. The only thing that I’ve been hearing lately is how a .25% hike in the prime rate could devastate people who are highly leveraged.

You are either an out of work realtor or a very stressed out “investor”. It’s tough to drink that koolaid and then realize that perhaps they didn’t actually use water in it.

#124 Dan.t on 07.17.17 at 12:46 pm

The psychology of homeowners is less vital to market values than the psychology of potential buyers. And they’re getting spooked. — Garth

Exactly, if new Canada buyers don’t have their head up their butts, they would see mortgage changes brewing, rising interest rates, the rolling over of a cycle and hopefully sentiment change with regards to over priced (criminally overpriced in YVR & all over BC) and stay the as far away as possible from those Poco, Langley etc…actually BC in general 350k 1 bedroom Condo pre-sales.

Doesn’t seem to be a shortage of fool out BC way though. They need a serious wake up call. Hope things change here and I hope the NDP actually have the guts to do what they say with regards to affordable housing initiatives.

#125 IHCTD9 on 07.17.17 at 12:57 pm

#107 Cici on 07.17.17 at 10:04 am
#95 Mike In Toronto

I actually totally agree with you in those circumstances, and my situation with the BF is very similar. We both had student debt, I had credit debt too, we both worked hard to budget, pay it all off (seperately, we don’t co-mingle our finances), save and invest.

I don’t know the size of my BF’s portfolio, but it’s probably bigger than, or at least growing at a faster rate. But we both make pretty much the same salary, and yes, he is more frugal than I am, but yes I do contribute more to the household spending and save him a lot of money with careful meal planning and budgeting, and have even changed my diet to due to his allergic restrictions and obscene need for red meat. BUT, I’m OK with that and would never go after him for cash in the event of a break-up, no matter what.

All I was really trying to say is that many women (not all, of course) contribute a far greater amount to household finances than many guys seem to realize. Some of the
guys on this blog seem to undervalue a lot of our “services” and not just on terms of cooking (free childcare, sex, counselling, housework, cleaning…the kinds of things that can add up for single guys). Of couse, many guys do their equal part in all of that, or make up for it in other ways (carpentry, yardwork, mechanics, etc.)

In anycase, I wasn’t suggesting that all women should have an automatic stake in their partners’ finances, and personally I don’t think common-law partnersips should be subject to the same provisions and contracts as marriages either. But I don’t think either partner should completely freeload off the other other for personal gain at the other’s expense either. I think that’s why Garth suggests choosing your partner well and being on the same page financially; he promotes co-mingling of finances as a way to ensure fairness, openess, accountability and responsibility towards shared goals. My partner and I prefer to keep things seperate, but the trust is there and we both benefit and we’re happy :-)

__________________________________________

Holy Cow you must be quite young.

“separately, we don’t co-mingle our finances”

“I don’t know the size of my BF’s portfolio”

This is probably not going to work out too good. I understand that today’s youth seems to prefer this, but you’ll never keep each other honest if this is the game plan.

“…and would never go after him for cash in the event of a break-up, no matter what.”

Really? What if he had sex with your sister? How about your best friend? I am provided a window into this kind of behavior that I will not get into, but among todays youth at a minimum – the above scenarios aren’t one in a million – not by a long shot.

“guys on this blog seem to undervalue a lot of our “services” and not just on terms of cooking (free childcare, sex…”

Sex? It’s a “service”?

Yikes!

#126 yorkville renter on 07.17.17 at 1:20 pm

TD rep says they expect a soft landing… will anyone in the media ask why they expect this, when this has never happened before?

#127 Looney Baloney on 07.17.17 at 1:20 pm

The fact of the matter is that marriage is obsolete.
We have to look at it in the same way we look at home ownership in today’s market.

We all know home ownership was a sure way to build wealth back in the day, but renting is a much better option in today’s market.
Marriage and relationships are the same. Back in the day, marriage was a sure bet to a stable family and healthy children. Not so much in today’s market. The total cost of marriage over the long run far outweights the total cost of renting out individual services (childcare, cooking, sex, etc that Cici has graciously listed for us), and as yesterday’s blog showed us.

Imagine 20 years ago, the bloke from yesterday had decided to live for himself. What are the odds he would still be 40 big ones in the hole, plus owe his ‘wife’ money indefinitely? What exactly did he get in return, except for an ungrateful woman he has pampered and coddled along the way, only for her to desert him when he needed her most. Instead, he would have a nice nest egg saved up, a home which meets all his needs, an array of beautiful women who would seek his companionship (as long as he takes decent care of himself), and freedom. If he wanted a kid, he could have always rented out the service of childbearing to some woman in some other country, brought the kid back and raised it himself. The kid would have ended up a much better person, instead of wanting to shack up with some loser at 18, just like it’s mom.

Be smart about it, kids. The only way to win this game is to stop playing. Your parents push marriage because it worked for them, the same way they push home ownership. But you know better. You know renting is cheaper, it affords greater freedom and flexibility, and allows you to swiftly part ways with your landlord (wife) should things start falling apart, without huge current or future repercussions, and having to deal with realtors (lawyers).

And remember, you aren’t a ‘real man’ if you ‘need’ a woman.

#128 TurnerNation on 07.17.17 at 1:25 pm

This weblog is now in full Red Pill lockdown.
#Beastmode

#129 IHCTD9 on 07.17.17 at 1:29 pm

#98 Scott Free on 07.17.17 at 8:15 am

Also – to all you relationship fraidy cats, we’ve been able to build our financial security together in a way that we never could have as individuals.
_________________________

This is the catch 22 of relationships. Without having married, my financial situation would have been pretty bleak. Enough to get by, but not enough to get ahead or bank on long term plans.

Being both decently employed, while living in a low cost area has essentially allowed us to dedicate one entire income to whatever we wanted. That really adds up over decades. We did private schooling for the kiddies, paying off the mortgage quick, and investing. What we have achieved would be impossible for just one of us alone.

Even if I made the same as my wife and I combined as an individual, the benefits of two people on the taxes and investing fronts would still have me falling behind as I’d be netting less income due to income taxes, and have quite a bit less tax shelter space available to me for investing within.

Don’t become too self-assured though, NO ONE is immune to having their marriage go up in a mushroom cloud of shattered hopes and dreams.

#130 paracho on 07.17.17 at 1:31 pm

No denying it anymore. Even the CBC wrote an article about it today. 10% down on average in canada since April . I think even this figure is smudged a bit and written in a rosey light.
http://www.cbc.ca/news/business/crea-housing-market-prices-1.4208256

#131 willworkforpickles on 07.17.17 at 1:48 pm

Like predictions?
Here’s 2
.,..Stock market crash late Sept 2017
.,..Recession Feb 2018

#132 Doodarg on 07.17.17 at 2:03 pm

#108 Livin Large on 07.17.17 at 10:14 am

Who saves $4,250 per month after tax even as a couple?

This is not as hard as it sounds – people who are disciplined enough to avoid debt at all costs (mortgage, car, etc) can easily find ways NOT to spend their money and maximize investment savings.

If you’re part of the typical “lemming” citizenry, who buy real estate because their parents and everyone else does, then you can kiss saving your way to a million good bye – unless you have an income well into 6 figures. Instead, you can buy an overpriced RE asset and try and time the market and sell at peak price. This methodology works too, but its much riskier and requires ludicrous market conditions – similar to what recently unfolded in TOR and YVR.

#133 jess on 07.17.17 at 2:16 pm

who went to jail ?

Pulitzer winner’s book shows how biz execs became ‘too big to jail’

By Kevin Dugan
http://nypost.com/2017/07/14/pulitzer-winners-book-shows-how-corporate-execs-came-to-be-too-big-to-jail/

deferred prosecution agreements (DPA)

http://www.transparencycanada.ca/wp-content/uploads/2017/07/DPA-Report-Final.pdf

yates memo

https://www.justice.gov/archives/dag/file/769036/download

SUBJECT: Individual Accountability for Corporate Wrongdoing

#134 Which One Is Correct on 07.17.17 at 2:17 pm

http://www.nationalobserver.com/2017/07/06/news/foreign-buyers-arent-flocking-montreals-cool-housing-market

http://montrealgazette.com/business/local-business/real-estate/chinese-property-buyers-increasingly-attracted-to-montreal-real-estate

Which one is it? I must say The Montreal Gazette has already lost all credibility to me. Fake news…

#135 Which One Is Correct on 07.17.17 at 2:21 pm

By the way, don’t believe the news that Montreal has not had a housing bubble. Over the course of the past 20 years, the average house has increased by a factor of 3 to 4. Not as much at all as in Toronto and Vancouver, but wages have nominally pretty much stagnated since then, and Quebec province is much like Greece if it weren’t for all those transfer payments.

#136 Slim on 07.17.17 at 2:41 pm

Iain, as Garth suggests man up. If you don’t, I just hope that she lawyers up and comes after you for her 50% share. Courts don’t care whether you think it’s fair or not. Too bad, so sad.

#137 Smoking Man on 07.17.17 at 3:02 pm

Now is the time to vulch. If you can find s desparte seller. Walked into a few open houses in the hood. Yeah they have been getting lowball offered. Sellers aint budging. In fact when you compair apples to apples using teranet the July set record prices.

The average prices from treb are not accurate. Example the plus million homes sales are down huge while the under 2 million haven’t been that bad making the average look alot worce than it is.

One of my Python web scrapers is indicating that listings have started retreating in Toronto. 3 months after Wynee kill real estate bill was announced. The usall duration for a listing agreement 3 months.

Massive job grouth in Toronto coupled with 2000 more people every week making the GTA home. Rental prices ridiculous.

Im calling for a strong Sept rebound in sales followed by good price gains into the new year.

#138 Fake News Again on 07.17.17 at 3:06 pm

#132 Doodarg on 07.17.17 at 2:03 pm
#108 Livin Large on 07.17.17 at 10:14 am

Who saves $4,250 per month after tax even as a couple?

This is not as hard as it sounds – people who are disciplined enough to avoid debt at all costs (mortgage, car, etc) can easily find ways NOT to spend their money and maximize investment savings.

If you’re part of the typical “lemming” citizenry, who buy real estate because their parents and everyone else does, then you can kiss saving your way to a million good bye – unless you have an income well into 6 figures. Instead, you can buy an overpriced RE asset and try and time the market and sell at peak price. This methodology works too, but its much riskier and requires ludicrous market conditions – similar to what recently unfolded in TOR and YVR.
_______________________________

Maybe if you are a bank exec or a senior govt public sector worker. No MOST people as in 99% of them can never save $4250 unless they are living in a 1 bedroom slum with no internet, cell phone and eat crackers and water.

#139 maxx on 07.17.17 at 3:09 pm

#27 oncebittwiceshy on 07.16.17 at 6:42 pm

“Greedy marketing was used to suck in naive buyers in B.C. and Ontario helping to explain why they share some of the highest mortgages and debt in Canada.”

There seems to be an endless supply of diddleables in Canaduh.

#140 maxx on 07.17.17 at 3:11 pm

#30 Halifax??? on 07.16.17 at 6:56 pm

” #28 Wrk.dover on 07.16.17 at 6:42 pm
————————————————————————-

Hey a nice town for sure. But I sure as hell wouldn’t pay $300,000 to live there. Please don’t take offense but all of Canada is so ridiculously overpriced. I could live in Las Vegas for a lot less than that.

No fish. — Garth”

True, but one heck of a lot of wishin’……;-))

#141 maxx on 07.17.17 at 3:15 pm

#31 Howard on 07.16.17 at 6:57 pm

….”Also helps to be a Quebecker if applying for federal roles, naturally.”

Noooooo…….it helps if you are fluent in Canada’s other official language.

#142 TalkingPie on 07.17.17 at 3:16 pm

I seem to be living in a province that’s quite progressive in this regard.

Under Quebec law, common law spouses have some of the benefits of being married, but being able to lay claim to another’s finances, residence, or personal property isn’t one of them, especially when there are no children involved. This strikes me as really reasonable. If you need the protections associated with marriage, then get married. If your partner refuses to do that, then it should be pretty clear on where you stand in the relationship and you are free to either accept or reject that.

My girlfriend and I split our living costs 50-50, with the exception of the cars, which are mine, the furnishings of the apartment that I lived in alone before she moved in, and the health and travel benefits that my job bestows upon her. Girlfriend doesn’t want a car, doesn’t use mine unless we’re going somewhere together, so of course doesn’t pay for them. Otherwise she’s willing to pay her fair share, and alarm bells would be going off for me if she weren’t. I earn more money and have more savings, but am a good bit older, so she has time on her side (she’s worth more than I was at her age, and our living situation leaves her with lower livings costs than I had).

We’re both happy where we are, and neither would expect any compensation from the other were we to split. I’m glad that the law here sees it the same way.

I know it’s common practice for Canadian blogs to pretend that Quebec doesn’t exist, but there really are some positive benefits to living in the country’s second biggest city, even for native English-speakers. The progressive laws and reasonable real estate market are two good reasons to pick up a second language.

#143 Justin Beaver on 07.17.17 at 3:49 pm

So many assumptions about Iain’s situation. It’s amusing how many people extrapolate their own situation and make bold statements about what other people should be doing. I need more information. A bit like buying real estate. It’s the shocking lack of objective information that makes buying such a crapshoot. I think it’s ridiculous that you need a realtor’s license to find out selling prices. Who wants to make a massive financial decision without that information at the ready? And no, I don’t just want to take my buying agent’s word for it.

I’ve been out of school 7 years, and amassed 500k between a family of three. 1 Mil in 13 years is very plausible.

#144 Justin Beaver on 07.17.17 at 3:50 pm

So many assumptions about Iain’s situation. It’s amusing how many people extrapolate their own situation and make bold statements about what other people should be doing. I need more information. A bit like buying real estate. It’s the shocking lack of objective information that makes buying such a crapshoot. I think it’s ridiculous that you need a realtor’s license to find out selling prices. Who wants to make a massive financial decision without that information at the ready? And no, I don’t just want to take my buying agent’s word for it.

I’ve been out of school 7 years, and amassed 500k – family of three. 1 Mil in 13 years is very plausible.

#145 Livin Large on 07.17.17 at 3:52 pm

Doodarg, I didn’t say anything about “impossible”, of course, someone makes $175,000 gross, lives at home, walks to work, takes their home made brown bag lunch, never goes out, buys clothes at the thrift shop etc. can likely save $51,000 after taxes every year but their at best in the top 20% of working folks.

http://www.macleans.ca/economy/money-economy/are-you-in-the-middle-class/?sa=X&sqi=2&ved=0ahUKEwj6n7-JiJHVAhXIgj4KHVp2BJoQ9QEIDjAA

The reality is that such a person is extremely rare, maybe 0.05% of the real folks in life. These examples of superlative investment prowess do nothing to address the real world lives of the remaining 99.95% of the working stiffs struggling to get by ecvery day.

#146 Justin Beaver on 07.17.17 at 3:55 pm

So many assumptions about Iain’s situation. It’s amusing how many people extrapolate their own situation and make bold statements about what other people should be doing. I need more information. A bit like buying real estate. It’s the shocking lack of objective information that makes buying such a crapshoot. I think it’s ridiculous that you need a realtor’s license to find out selling prices. Who wants to make a massive financial decision without that information at the ready? And no, I don’t just want to take my buying agent’s word for it.

I’ve been out of school 7 years, and amassed 500k – family of three. 1 Mil in 13 years is very plausible. Our household income has never exceeded 200k.

#147 InvestorsFriend on 07.17.17 at 4:01 pm

Dream Global REIT

This REIT has been mentioned on this Board. They were the landlord of the building I worked in when they changed their name to DREAM a few years ago. My immediate reaction was they were tempting the fates. As a tenant, they seemed okay but one could not help but joke that it might be more of a nightmare than a dream. What hubris!

I understand that they sold some buildings in Edmonton last summer for shocking low prices, less than half of what they had paid a few years earlier.

Today they are issuing shares.

I have always been a bit suspicious of REITs. They dividend money out one door and then raise it back through anther door. Sucking and blowing. Always seemed like a bit of financial engineering. REITS also seem to believe that depreciation is not a thing, buildings only appreciate in their minds. But it did seem to work. Some REITS seem great. RIOCAN has been great but I won’t predict its future.

#148 Howard on 07.17.17 at 4:07 pm

#144 Justin Beaver on 07.17.17 at 3:50 pm
So many assumptions about Iain’s situation. It’s amusing how many people extrapolate their own situation and make bold statements about what other people should be doing. I need more information. A bit like buying real estate. It’s the shocking lack of objective information that makes buying such a crapshoot. I think it’s ridiculous that you need a realtor’s license to find out selling prices. Who wants to make a massive financial decision without that information at the ready? And no, I don’t just want to take my buying agent’s word for it.

I’ve been out of school 7 years, and amassed 500k – family of three. 1 Mil in 13 years is very plausible.

—————————————–

You or you and your wife jointly?

This Iain dude seems to be saying that he alone has amassed $1M in little over 10 years, highly implausible unless he was gifted an inheritance or reaped a stock windfall. Why embellish or misrepresent one’s situation?

#149 NoName on 07.17.17 at 4:11 pm

#109 Mike in Toronto on 07.17.17 at 10:31 am

#97 NoName

That’s $51k per year in after tax savings.

Sure easy to save a million when you’re earning well over $100k and living like a pauper for 13 years.

My first real job in 1997 paid $30k pre-tax. I was still able to pack away $6k or so. Even in 2004 I was only earning $55k.


ok troll , here you have it

its freeking hard to save million even if you are earning well over 100k,, it feels imposible sometimes.

but it’s entirely possible, go re read those millennial guys blog and look at a tables, yeas above average income and extreme savings but doable in short period of time, if you are earning less just scale down.

I agree with you, you won’t be able to save much on a average family income, but that dude was above average income, and if you are living any of those “emancipated and affluent” places carrying 500k+ mrtg, liveing like jonses, you can forget about saving any…. We live on edge of the civilization where deplorables congrigate, Hummer. “Inexpensive” shalter alows you to have lots of stuff, only drowback where i live is that lcbo doesnt stock my favorite beer, but you can order it in, so not that bad.

In our house we are very dysfunctional and not much of the savers, we are in a war with money, we kick monies ass every day, every weak, week month, and yet we managed to save some, (re read IHTD9 post where he nicely explains pay your self first, and bill when you remember… or something along those lines)
We dont save not to the tune of 51k, every year but last year we come very close. Probably when you factor in contributions to pensions for both of us we last year probably went over that number. And that is with 4 of us, 2 decent incomes (similar to that dude). I won’t denied that lots of luck was involved but if you try not to be impulsive and to kontrol risk to some degri, it seems that everything will fall in place on its own. An having nolife is much more fun than you think. You can’t do what people around you are doing if you want to do better.

#150 jess on 07.17.17 at 4:34 pm

Trump and Congressional Republicans Sit on a Plan to Stop Invasive Asian Carp From Reaching the Great Lakes

By Sarah Okeson

Voracious Asian carp, which can grow up to 100 pounds, are eating their way up the Illinois River toward Lake Michigan, but the Trump administration and extremist Republicans have suppressed a report about how to try to keep the invasive fish out of the Great Lakes.

Conservationists and wildlife authorities were alarmed last month when an 8-pound, 28-inch adult silver carp apparently somehow got past electric barriers in the Chicago Sanitary and Ship Canal and was caught by a commercial fisherman just nine miles from Lake Michigan. No other fish have been found past the electric barrier.”…

https://www.dcreport.org/2017/07/13/somethings-fishy-in-illinois/

#151 NoName on 07.17.17 at 4:35 pm

oh i forgot to add we dont have a million yet.

#152 Stan Broock on 07.17.17 at 4:37 pm

And my 2 cents on Iain’s savings.

It is not probable (highly unlikely) to have 1 mil at age 35 on a government job. Period.

Most of the perks from a government job are in great benefits – pension, health care coverage but not in salary.

Most of the government employees I know save absolutely nothing, live hand to mouth and count on their benefits for retirement.

Most Canadians actually save nothing. 95 % of the people I know (individuals or families with 1 mil + in net ‘worth’) can not raise 50 k in cash unless they sell their house.

Most of our wealth is an illusion.
One needs 150 k + for a family of 4 just to survive in Toronto or Vancouver. Average family income there? 70-75 k. Pathetic.

Short of massive, and I mean really massive money expansion in one form or another (QE,…NIRP etc) we are toast to die economically and financially in the worst depression one can imagine.

Any expansion of that sort will kill the CAD.

Making 5 % on REITs measured in dying currency means nothing.

#153 Phil on 07.17.17 at 4:39 pm

“If this is a real sign Lamb is blatantly and knowingly in breach of REBBA . This would be one of the worst I have seen in Ontario.” – Ross Kay

Source: https://twitter.com/rosskay/status/886305747960836097

Garth, what does this mean?

#154 False Story on 07.17.17 at 4:55 pm

$1 Million portfolio with a government job at 35? I smell a fabricated story. With market returns being so weak it is impossible for this guy to have made that sum, unless he was fully leverage on margin…which is so unlikely. Just a guy with an active imagination.

The only part of the story that is probably real is the girlfriend and the PhD degree and the job.

#155 Dee on 07.17.17 at 4:55 pm

Now is the time to vulch. If you can find s desparte seller. Walked into a few open houses in the hood. Yeah they have been getting lowball offered. Sellers aint budging. In fact when you compair apples to apples using teranet the July set record prices.

The average prices from treb are not accurate. Example the plus million homes sales are down huge while the under 2 million haven’t been that bad making the average look alot worce than it is.

One of my Python web scrapers is indicating that listings have started retreating in Toronto. 3 months after Wynee kill real estate bill was announced. The usall duration for a listing agreement 3 months.

Massive job grouth in Toronto coupled with 2000 more people every week making the GTA home. Rental prices ridiculous.

Im calling for a strong Sept rebound in sales followed by good price gains into the new year.
——————————-

You are an idiot. You simply call for a continous bull market with no end. There is a small possibility that you are right (if some policy changes occur). Credit haschanged. Banks & shady lenders have tightened. No improvement in debt to income for canadians. Sales are just not happening as people dont qualify like they did in the past. Higher rates, new osfi changes coming etc. All these things put pressure on buyers. Also, potential buyers are hesitant to jump in. Immigration doesnt translate to higher prices, well paid citizens who qualify to purchase do

#156 IHCTD9 on 07.17.17 at 5:14 pm

Just a note on Iain’s “portfolio”. He actually said “net worth”, and “a touch under 1 Million”

That could mean 500k portfolio, 300k house (even if it’s not paid for…) and a 100-200k pension, cars, art, guitars, Exotic pets, you name it.

Net worth numbers can include some pretty abstract “assets”.

So many people get so diverted on this blog. — Garth

#157 Freedom First on 07.17.17 at 5:34 pm

#80 Smoking Man

Thanks Smoke!

#158 Potential buyer on 07.17.17 at 5:37 pm

I’m a potential buyer of GTA real estate. I placed 2 offers and both were not accepted. Sellers are holding firm. My offers had no conditions and came with a 35% deposit to show I was serious. Seller Real Estate agent told me to try 50k more. I didn’t. I hope this RE market isn’t like 2009 where a sharp decline in prices corrected back when CDN govt. assisted banks by taking mtgs off their books. I’m still looking for a deal, power or sale, seller needing to sell cause they bought, divorce sale, RE investor spooked by news. Send me Realtor.ca links and their story if you can please. Now seems like the appropriate time for me to buy cause GTA prices are down.

#159 Not bank exec on 07.17.17 at 5:37 pm

#138 Fake News Again on 07.17.17 at 3:06 pm

Maybe if you are a bank exec or a senior govt public sector worker. No MOST people as in 99% of them can never save $4250 unless they are living in a 1 bedroom slum with no internet, cell phone and eat crackers and water.

—-

You are Fake Deplorable…

Not exactly 4250, but if we cut down on guns, ammo, alcohol and tuna cans maybe we could get there…

http://imgur.com/a/Nynx4

some of my relativly cheap gastronomical masterpieces.
http://imgur.com/B4pQqA5
(Milo the dog, not ours but liked to eat with us) 7-15 per person,
http://imgur.com/wPs39GW
(fish with potato and Swiss chard) 10-15cad meal for 4
http://imgur.com/5W7Bprk
(craps with nutella) 7-10cad multiple brekfasts

#160 Entrepreneur on 07.17.17 at 5:38 pm

With all our smarts and technologies it is time to do some updating on laws: Marriages should only be for so many years then remarry if want to. And all assets and finances should be out front from the start. This should be the guideline for, and if, a separation.

When you have kids, another set of rules and topic.

Marriage laws is like going to the dentist: never changes after all these years. Still that tartar problem; marriage is until death or to some it is death, hehe.

And keep saying Climate Change at the end of the trade deals but keep flying those jets, an increase of 87% from 1990 to 2006.

#161 Leo Trollstoy on 07.17.17 at 5:39 pm

so much jelly for a government guy w $1m

sad

#162 InvestorsFriend on 07.17.17 at 5:41 pm

CRH Medical

Is the latest company to get pummeled, down about 28% on Friday.

This can be used as an example of why it’s dangerous to own individual stocks.

I think this is an opportunity and that it will likely provide an attractive return in the next few years. But I am totally biased since I already own it and bought at higher prices as well as a bit at this low.

I will not go into the plusses and minuses about the company because it would take pages to do that. I just point out it might be an opportunity. Consider it speculative however.

Did you just pump a stock you own? — Garth

#163 poly on 07.17.17 at 5:51 pm

Here’s one of NAFTA renegotiation goal:
Through an appropriate mechanism, ensure that the NAFTA countries avoid manipulating exchange rates in order to prevent effective balance of payments adjustment or to gain an unfair competitive advantage.

Interest rates to rise as US rises.

#164 Doodarg on 07.17.17 at 6:21 pm

#138 Fake News Again on 07.17.17 at 3:06 pm

#132 Doodarg on 07.17.17 at 2:03 pm

#108 Livin Large on 07.17.17 at 10:14 am

Who saves $4,250 per month after tax even as a couple?

This is not as hard as it sounds – people who are disciplined enough to avoid debt at all costs (mortgage, car, etc) can easily find ways NOT to spend their money and maximize investment savings.

If you’re part of the typical “lemming” citizenry, who buy real estate because their parents and everyone else does, then you can kiss saving your way to a million good bye – unless you have an income well into 6 figures. Instead, you can buy an overpriced RE asset and try and time the market and sell at peak price. This methodology works too, but its much riskier and requires ludicrous market conditions – similar to what recently unfolded in TOR and YVR.
_______________________________

Maybe if you are a bank exec or a senior govt public sector worker. No MOST people as in 99% of them can never save $4250 unless they are living in a 1 bedroom slum with no internet, cell phone and eat crackers and water.

_________________________________________

A gross income of 90k nets approximately 60-65K after tax. A spousal income of 50k nets approximately 35-40k after tax. In this scenario, net household income would fall into the 95-100K range. I am not a banker or a finance professional so if these numbers are way off then I will stand corrected.

Provided you stay out of debt, and live fairly modestly, why is it so difficult to imagine saving 4k per month?

And I don’t mean “living in a 1 bedroom slum with no internet, cell phone and eat crackers and water”, but instead making good decisions about what you need vs what you want. For example, buying last year’s 46″ TV used or on sale, instead of the latest greatest 60″ at full price, ordering the cheapest cable package or no cable at all, vs the mega sports-movie package that costs 3 times as much, eating out once or twice a month instead of once or twice per week, never exceeding your data/txt/call limits on the cheapest smartphone plan that meets your needs, or buying a used Corolla for cash instead of a brand new F150 4×4 on loan – even at a low or no interest.

Staying clear of debt also means renting and not drinking the maple flavored home ownership kool-aid. If you pay yourself first – say 4k per month – that leaves approximately 50K to live on, which is plenty.

This is not for everybody, but it can be done and its amazing how fast your money can grow once you hit a few hundred k, provided you remain disciplined about spending and saving, and balanced with investing.

#165 Reximus on 07.17.17 at 6:27 pm

You are an idiot. You simply call for a continous bull market with no end.

—–

No he’s not, he’s saying the same fundamentals, ie population growth, cheap borrowing costs, inventory problems, insane rent costs, that led to 10 years of price increases, are still in play… and he’s right.

When those factors change meaningfully, then the upward price pressure will abate. Only inventory has recently changed, but meaningfully, so far only in a few places (York region is a mess). Money is still cheap. Incoming population still up.

Like Vancouver, Toronto condos are booming in price, which means those condo sellers are flush with cash they didn’t have a year ago. They want a house.

#166 416 RE Large Drop in $ on 07.17.17 at 7:17 pm

Forget about %’s, Huff Post article yesterday quoting CREA talking cash:

June of 2016, there were $9.55 billion-worth of transactions.

June of 2017, that had dropped to $6.33 billion.

$3.2 billion out of the Toronto economy, year over year. That is a huge hit to the Toronto RE et. al.

1/3 of the money gone. That cannot bode well for jobs.

Surprisingly, 45.5% still think prices will go up in the next 6 months, down from 50%, 3 weeks earlier.

Article says YVRs recent RE recovery from last years measures has petered out.

I hope BoC Governor is correct that other sectors will do well.

#167 Mike in Toronto on 07.17.17 at 8:14 pm

#149 NoName

“I agree with you, you won’t be able to save much on a average family income, but that dude was above average income, and if you are living any of those “emancipated and affluent” places carrying 500k+ mrtg, liveing like jonses, you can forget about saving any…. ”

Dude, he’s 35 and has an undergrad (else he couldn’t do his PhD. That leaves him with about 13 years to save up $1M.

Remember he’s paying off his undergrad and paying for his PhD while saving this money too.

Assuming he worked off $24k in expenses while on his undergrad, his starting salary out of school was $80k and his finishing salary was $200k,

Assuming he can live off $12k/year after taxes (rent, utilities, food, clothes, transportation, etc.) (hey, he’s sharing, so if they’re in a 1br basement and bicycle to work from Scarborough, then his rent might be $500/mo… potatoes keep well in the cellar)

4 years of postgrad tuition running about $33k (don’t forget the books)

Then yeah, he could have saved a million. But his starting salary is still more than I was earning after 13 years of work experience.

#168 Livin Large on 07.17.17 at 10:21 pm

Mike, you have nailed it, kudos.

I spent 3 years at the CRA in the 90s when it was still Rev Can but that certainly doesn’t qualify me as any sort of authority on gov salaries.

What I do know however is that a freshly minted PhD without considerable research on his CV isn’t going to reach the level of Senior Scientist in the feds in 13 years. The regular attrition rate at that level of government is very very low and the jobs only get filled via a competitive board process.

I don’t think even the CEO of a Crown Corp like VIA Rail was making that sort of coin working up the ranks and VIA is one of the crown corps where there is minimal experiential cross over. You join VIA and you stay there till retirement.

#169 Jeremy on 07.17.17 at 10:38 pm

Why should he support somebody that he’s been in a 2 year relationship with? What a joke. I can understand dividing assets jointly earned together, but SUPPORT!? The laws need to be changed if some of these claims are true.