Fake news

On Saturday, when I go riding and let one of the fancy portfolio managers blog, poor Ryan caught grief for suggesting you might want to have $1.25 million in your jeans when you tell the boss to shove it. The deplorables in the comments section suggested he’s an elitist, Porsche-driving dilettante hopelessly out of touch with real people. Of course, only part of that’s correct.

So, do you really need seven figures in your RRSPs, tax-free and non-reg accounts to retire? Depends on the kind of life you want, of course. You can live in the woods, collect government pogey, and smoke ‘coons over the campfire Friday nights, or you can get by like a regular person. All it takes is money. Cash flow.

What’s the biggest reason millions will retire without enough to get them through to the end? Residential real estate, of course. For decades of their lives, people who have bought houses they could not really afford will see their cash flow sucked off in (rising) mortgage payments, property tax, insurance, new roofs & furnaces, granite countertops, commissions, fees and overhead. If properties stop going up in value perpetually (it’s already happening) the whole idea your house is your retirement plan goes kaput. You end up being 60 or 65 with a crappy pension and the bulk of your net worth in a single asset at one address that could be illiquid. If the real estate market sucks the year when you need money, you lose.

Well, this is not about Ryan’s hurt feelings, or even retirement. Today we dump from a great height on realtors and the shameless, lazy Canadian media that enable them. Together they lead so many Canadians into the morass of debt and entanglement, condemning them to golden years defined by KD, Costco and used Hyundais. Shudder.

Here’s what I mean. Look at what CTV and the Canadian Press just reported:

Is Montreal real estate ‘sizzling’? It’s a meme the media’s been trying to craft since BC, then Ontario, adopted anti-bubble measures to chill Vancouver and Toronto (it’s working). Local realtors are stunned and delighted. Just look at the statement days ago from real estate board spokesguy Mathieu Cousineau: “For single-family homes, market conditions for resales are increasingly favouring sellers, which explains why price increases have been more sustained in recent months.”

And here’s what the nation’s biggest news agency just reported:

“Canada’s hottest housing market these days may be Montreal. The Greater Montreal Real Estate Board released data Friday showing that 3,075 homes were sold in July, an increase of 16 per cent compared with a year ago and the most for the month in eight years. That contrasts with Toronto, where sales last month plunged 40.4 per cent while in Vancouver they dropped 8.2 per cent. The price of homes in Montreal was also higher, albeit still well short of levels seen in Vancouver and Toronto. The median price of a single-family home in Montreal rose to $323,000, up eight per cent from July 2016.”

Wow. Seller’s market. Sales surging. Best in eight years. Prices rising. Eight per cent increase. Sizzling!

Based on reports like that, buyers start thinking they should rush in and snap up properties which are bloating in value, certain to increase their net worth and puffery. And that’s precisely the point of realtors twisting, torturing, manipulating and squeezing  data until it squirts out the desired conclusion: It’s a good time to buy. What is there to lose?

Here are the facts.

In July 3,075 properties sold in urban Montreal – the second-biggest real estate market in the nation. That was a disaster – 22% fewer than in June. In fact in that prior month 3,952 houses changed hands, which was a 21.8% crash from April (5,057 deals). July sales ended up being 36% less than during the spring. (Yes, it’s a slower time of year, which makes ya wonder why CTV says it is ‘sizzling’.)

Prices? They’re stuck in the mud. The average detached house fetched $323,000 in July, which was actually down $5,000 (or 1.5%) form June. Values have remained in in the $310K to $320K rage now since the spring, right through the period when Toronto was collapsing and (supposedly) gobs of money were flowing into La Belle Province.

So while the realtors and the media say one thing, the numbers say another. Sales have declined monthly since May. In the last 60 days the volume has fallen drastically – more than 20%. Prices have increased by about 4% since the end of March, or not enough to cover the cost of buying or the commission on selling. And the average price of a detached in the region is 73% less than in the GTA, which should tell you something.

Now, Montreal’s a great city. In many ways it makes Toronto look like Timmins on a Tuesday. But it’s not the same. In Montreal only 55% of people own homes, because they prefer to rent. (They don’t really like getting married, either.) In Toronto the home ownership rate is 68% and people get horny about Wolf stoves.

The bottom line is that there’s no real estate frenzy in Quebec. They save their hormones for what matters. You should try it.

 

 

176 comments ↓

#1 Randy on 08.06.17 at 12:54 pm

Maybe if we gave Quebec more equalization and transfer payments home ownership would rise…….baha

It’s all going to Ontario. — Garth

#2 crowdedelevatorfartz on 08.06.17 at 1:05 pm

Gee.
More spin from the “news” media and the Real Estate cartel that pays for it all……
How surprising.

#3 For those about to flop... on 08.06.17 at 1:08 pm

Pink Lemonade stand in Langley.

Nothing as dramatic as the price reductions I showed in Richmond yesterday ,but these guys must be starting to wonder if they bit off more than they can chew.

Bought in March 2016 for 1.74 with an assessment that came in later that year at 1.63,they have one thing in their favour that some of my cases yesterday did not and that is the fact that the house was built this decade…

M43BC

22977 Coulter Court, Langley

Jun 2:$2,000,000
Aug 2: $1,899,000
Change: – 101000.00 -5%

https://www.zolo.ca/index.php?sarea=22977%20Coulter%20Court,%20Langley&ptype_house=1&max_price=1300000&min_price=600000&filter=1

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

#4 The Lesser Fool on 08.06.17 at 1:11 pm

Has there been any talk of lowering real estate fees? 5%, or whatever it is, may have made sense with a mean price of say 150k, but maybe not so much with a mean price of say 800k. Perhaps a minimum fee to account for smaller markets and a maximum fee for the outrageous.

#5 TurnerNation on 08.06.17 at 1:19 pm

This weblog needs a day off :-)

IBD says this convert bond ETF beat S&P5-o this year: CWB.US

#6 Mean Gene on 08.06.17 at 1:23 pm

REALTURDS®

#7 Stone on 08.06.17 at 1:33 pm

#82 Curious from yesterday.

Not married or have kids. If I had gotten married, a dual income would have made financials work better and faster. With kids, it would probably be a wash as second income would have been spent on them.

#8 NoName on 08.06.17 at 1:34 pm

Science Sunday (off topic, as usual)

Woman vs Man brain
https://stanmed.stanford.edu/2017spring/how-mens-and-womens-brains-are-different.html

#9 dumpster fire on 08.06.17 at 1:44 pm

#114 Spock on 08.06.17 at 10:58 am
Response to #101 haven’t they taken enough on 08.06.17 at 8:05

There is the average tax rate and then there is the marginal tax rate.
* * *
People seem to confuse the two very often. I’ve even heard of people declining raises because they believed they would have to pay more in tax in the new bracket than the raise gave them.

Here is a chart for the average tax rate in for Ontario:
http://i.imgur.com/2wucxjmh.jpg

So even if you are making bank, your average tax rate will generally be under 40%.

#10 For those about to flop... on 08.06.17 at 1:52 pm

Pink Lemonade stand in Vancouver.

This condo owner in Kerrisdale is in a scrap to get their money back.

Picked up late last year for an even 900k with an assessment that is a little higher at 911k maybe it won’t be long before they call 911.

“Hello 911, What’s your emergency?”

“Hi ,I live in Kerrisdale and I spent my life savings on a 30 year old condo that no one wants”…

M43BC

401 2189 W 42nd Avenue, Vancouver

May 17:$988,000
Aug 2: $968,000
Change: – 20000.00 -2%

https://www.zolo.ca/vancouver-real-estate/2189-w-42nd-avenue/401

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMFM3VQ==

#11 Greater Fool Fake News Team on 08.06.17 at 1:57 pm

BREAKING NEWS!!!!!!!

GARTH TURNER INVESTIGATED BY POLICE!!!!!!!!

(Mr Turner was driving his Kia through a radar trap this weekend. He was not stopped.)

BUT…..what was the REAL story!!???

Remember, Police can investigate for many reasons:

GARTH TURNER COULD HAVE COMMITTED:

MURDER!!!!

FRAUD!!!

DOG MOLESTATION!!!

IMPERSONATING STEPHEN HARPER ON TINDER!!!

SLANDER OF OUR GORGEOUS PM!!!

PUBLIC INDECENT ACTS WITH BRAD LAMB!!!

(er,…but this time it was just doing 55 in a 60 zone in his Kia)

BUT ANYTHING IS POSSIBLE!!!

DON’T TRUST THE MSM!!! THEY ARE LIARS!!!

HILLARY IS A WITCH!!!!

CLIMATE CHANGE IS A HOAX!!!

GARTH TURNER IS NOT WHAT HE PRETENDS TO BE!!!

———————————————————–

We’ll be right back, after a message from FOX and CREA.

#12 Doug in London on 08.06.17 at 1:59 pm

What’s wrong with Timmins on a Tuesday? Timmins may not be dirt cheap, but it’s not an outrageously expensive place to live either, so you can more easily build up that 1.25 million dollar portfolio. You like going to the cottage? That short drive to places like Opishing Lake sure beats the hell out of fighting stop and go traffic to get up to Muskoka, and Highway 101 west is quiet with very little traffic, especially on Tuesday.

#13 Ronaldo on 08.06.17 at 2:10 pm

#3 Flop

More fools who came to the party late and now face a major loss. Will be interesting to see what it sells for. Going to be many more like this one. Look out below.

#14 nobody on 08.06.17 at 2:14 pm

#4 – in a free capitalist market realtors would simply drop their fee and get more business and therefore make more money.

I assume it is due to the intrinsic sense of duty and fairness in the real estate profession that prevents them seizing this opportunity to become rich and powerful.

#15 Greater Fool on 08.06.17 at 2:25 pm

Hey Garth, how do you explain these news?
http://www.cbc.ca/beta/news/canada/british-columbia/vancouver-real-estate-market-unfazed-by-foreign-buyers-tax-one-year-later-1.4236138

Fake as well?

#16 the ryguy on 08.06.17 at 2:25 pm

#4
Back when I bought and sold houses I always said upfront Im not paying full price on fees. I said I do all the searching and pick the houses Im interested in, Ill even drive the realtor so there is no BS.

Some said no, thats great, move on to a smarter one that realizes one in the hand > two in the bush.

#17 NoName on 08.06.17 at 2:40 pm

Australian RE agents listing commercial.
https://www.youtube.com/watch?v=K_50_-lW7mo

#18 For those about to flop... on 08.06.17 at 2:46 pm

CONFIRMED PINK DRAWS.

Here are a few more cases that have trickled in.

I would like to you guys some heavy hitters,but I can only report what comes in,when it comes in.

As you can see all three cases sold for more than bought,but no real money was made.

Who knows if the thrill was enough or they decide to go again…

M43BC

8933 149 Street, Surrey

Paid 800k

Sold 860
7.5% gain roughly before expenses.

Oct 9:$899,000
Apr 20: $869,000
Change: – 30000.00 -3%

https://www.zolo.ca/index.php?sarea=8933%20149%20Street,%20Surrey&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA3ODg0Qw==

14510 78 Avenue, Surrey

paid 885k

Sold 943k

6.5% gain before Expenses.

Oct 20:$987,000
Jan 26: $977,000
Change: – 10000.00 -1%

https://www.zolo.ca/index.php?sarea=14510%2078%20Avenue,%20Surrey&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA3N1FaMg==

304-1762 Davie st.

Paid 1.35

Sold 1.45

7.4% gain before expenses

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

#19 Millennial Investor on 08.06.17 at 2:46 pm

Love your blog, Garth, but there is a ton of fear mongering here…Median family income in Toronto is what, 65k/year? Advising people to save $5million so they can earn $200k/year when they are retired is unnecessary.

As a pharmacist, I see tons of retired people on a daily basis. They often complain of their aching joints, the cocktail of drugs they take, and plain old loneliness. Retirement income is usually the least of their concerns.

Where did I suggest you need $5 million? Are you on drugs? — Garth

#20 YVR Update on 08.06.17 at 2:51 pm

DELETED

#21 I believe everything on television on 08.06.17 at 2:52 pm

someone here said they missed H

here ya go

http://video.policyconference.org/watch/dH5MnbWv53KwWBTKPgy9jG

#22 paracho on 08.06.17 at 3:07 pm

I know a few people over 50
Who did the sensible thing. They sold their GTA homes purchased over a decade ago and moved to Montreal and Ottawa.
They pocket thesurplus and purchased similar or even larger houses for a fraction of the selling price in Toronto and invested the rest for a dividend income .
Montreal is a great city but the numbers are deceiving. The media seem to pump out sensationalist headline es with misleading statistics. I am always wary at the use of the median versus an arithmetic mean . This is quite deceptive .

#23 Ronaldo on 08.06.17 at 3:32 pm

#10 Flop

Holy crap. Over 4200/mo. to own what? Air space? When are people going to finally wake up and realize they’ve been had? Total Ponzi scheme.

#24 Michael King on 08.06.17 at 3:36 pm

Great column today. I would like to recommend this new book to all and it’s a quick read. Keen is one of the few who predicted the late 2000s crash. He has wise words about private debt and Canada is on his list of “The Walking Dead of Debt”. The Vancouver library system has four copies. http://ca.wiley.com/WileyCDA/WileyTitle/productCd-1509513728.html

#25 A Reply to #22 paracho on 08.06.17 at 3:56 pm

“I am always wary at the use of the median versus an arithmetic mean. This is quite deceptive.”

I prefer to see both sample statistics—and even the mode, if applicable. It’s better to have too much info than not enough.
https://en.m.wikipedia.org/wiki/Mode_(statistics)
https://en.m.wikipedia.org/wiki/Median
https://en.m.wikipedia.org/wiki/Mean

#26 For those about to flop... on 08.06.17 at 4:11 pm

Ronaldo 32 pm
#10 Flop

Holy crap. Over 4200/mo. to own what? Air space? When are people going to finally wake up and realize they’ve been had? Total Ponzi scheme.

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

Hey Ronnie,not just any air space….stale air space!

Anyway I showed a condo the other day that went for 3 million for a place in Richmond which is nutso and they took a 300k plus bath ,but I thought you might be interested in this case below I have had on my books for a while.

As stated they are on the hook for 1.58 and if you put 5% down and with the maintenance fee puts you near the $7500 mark each month for a ten year old condo with what appears to be an o.k view of other indebted people…

M43BC

902-1277 MELVILLE ST VANCOUVER. Paid 1.58 ass 1.4

Feb 21:$1,650,000
Jul 26: $1,598,000
Change: – 52000.00 -3%

https://evaluebc.bcassessment.ca/Property.aspx?_oa=RDAwMDA5RUtDSw==

https://www.zolo.ca/vancouver-real-estate/1277-melville-street/902

#27 Dan.t on 08.06.17 at 4:20 pm

Criminal what is allowed to pass as news in Canada. Again, only in the All Mighty Real Estate world can you pump this S##t.

How about this, Headline “Stock XYZ pumping hard” after abc slumps, XYZ is on FIRE”…up over 8.9% and not looking back! Investors are flocking to XYZ after management just closed a massive 1.8 billion potential deal with the republic of China!”…Peter Puck from Puck investments says” with China on board, we see a 135% increase in gross revenues in the next 12 days!”….. Globe and mail says, ” buy now because you will never get XYZ stock so cheap in your life time”.

How does that sum up the BS real estate board in Canada? Do that in any industry and you are fired, banned, disbarred, crucified, scolded and then paraded through the streets as a fraud and scammer…but in the real estate world, it’s just good business.

Criminal and the Canadian gov lets it go on and on and on. Don’t even bother Garth. You can’t make this s**t up. Canadians want to believe their crap don’t stink. That everyone on the planet wants to buy a 1973 1.4 mil POS in New Westminster BC because..well it’s Canadian Real Estate and that’s just what happens.

How does the real estate board or the “news” papers have a right to print hype and hand picked stats while financial industry and any other industry gets drilled/fined/disbarred/ for making subjective and misleading statements to the public. I guess it pays to be able to lie cheat and steal in Canada…if you can do it with a straight face.

#28 enarhem on 08.06.17 at 4:38 pm

#15 I would explain it by saying the CBC are not necessarily shining lights of real news.

#29 Asterix1 on 08.06.17 at 4:38 pm

G&M is one of the worst at pumping fake realtor press releases/propaganda and transforming them into an official G&M article. This one took the cake a few days ago!

“Toronto real estate market picks up after lull”
https://www.theglobeandmail.com/real-estate/toronto/toronto-real-estate-market-picks-up-after-lull/article35861587/

Get ready for it, yes, three people were quoted in this useless, lying and deceiving article. All three realtors!

The G&M section called “DONE DEALS” is also pure garbage. They keep showing deals that were done 120 to 60 days ago. They do not even have the courage to mention those dates in any paragraph.

The RE section of the G&M, TStar, TSun, CBC and National Post should all be labelled “SPONSORED CONTENT”!

#30 Dan.t on 08.06.17 at 4:38 pm

Serious question, do people actually believe the Real Estate board?

They must. Man, it is so easy to sway the herd in Canada. It it is all true why not give every Canadian the right to see past prices, asks, bids, time on the market (without deleting, re-listing, re-numbering or whatever the board does to hide true stats) and make everything transparent.

Why is that such an issue? I don’t get it. YVR is extremely unaffordable yet, all the herd gets to see is doctored up stats, RE paid for headlines and water cooler wisdom.

If I am wrong…please someone explain the fundamental drivers in Canadian Real Estate. I’m all ears…How does the average BC family afford a 700+k townhouse. Is that just pocket change to BC people?

I am not being silly here. I would like to know how a 2 person household pays 600k+ for a condo or 700k+ more for a townhouse based on, lets say above average BC wages (add in a kid or two). Explain it to me please and do the math like I am a grade 10 student. I would be very grateful.

#31 Penny Henny on 08.06.17 at 4:44 pm

#121 macduff on 08.06.17 at 12:31 pm
Hi all,
As for Canadian online retirement calculators, I highly recommend the following: http://www.retirementadvisor.ca

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

hey macduff,
I had a look at that retirement calculator you recommended and I think it is complete hooey.
One of the first questions is “how much do you earn now”. What does that have to do with anything?
The question should be “how much do you need to live on”.
So once again I will advise one and all to have a look at

#121 macduff on 08.06.17 at 12:31 pm
Hi all,
As for Canadian online retirement calculators, I highly recommend the following: http://www.retirementadvisor.ca

It helped me retire a few years earlier than I thought I could (that and the rising GTA market which I cashed in on).

Please say a prayer for my Penny (boarder collie/sheltie). She is at the animal hospital and things don’t sound good. :(

#32 Tony on 08.06.17 at 4:55 pm

I seem to read everything in The Globe and Mail online first. The Canadian Millennials seem to be brainwashed into believing anything.

#33 Markam Mayhem on 08.06.17 at 5:19 pm

Next thing they are going to say is that Winnipeg is ‘sizzling’ in February. But then again, their Football Team is on the up and up. Go Blue!

#34 Angry Migtow on 08.06.17 at 5:20 pm

DELETED

#35 Penny Henny on 08.06.17 at 5:21 pm

My apologies,
I meant to include this link for the retirement calculator.
https://financialmentor.com/calculator/best-retirement-calculator

#36 TurnerNation on 08.06.17 at 5:28 pm

Welp all caught up on the markets and Smoking man’s Periscope feed @ Seneca. AKA the Mile Low Club. Glub , club.
It’s gonna be a September to Remember in all asset classes. Just in time for Jan TFSA buying.

#37 Cloudy on 08.06.17 at 5:31 pm

Garth I wrote a flattering post ducking up to you, Ryan and Doug for doling out free financial advice for the good of the masses but my awful cell service lost it as I tried to submit. Please keep leading the horses to water, some us take a grateful drink. Rest assure when the whiny entitled millenials retire you will be dust and the few among us that save and are prudent will pick up the tab when the government takes pity on them. Back to beer and camping for now.

#38 Andrew Woburn on 08.06.17 at 5:32 pm

Perhaps this will catch on. We can only hope.

“A retired Virginia Beach attorney is so angry that Republicans failed to repeal the Affordable Care Act that he’s suing the GOP for raising millions of dollars campaigning on a pledge that they knew they wouldn’t be able to fulfill, per The Virginian-Pilot. The lawsuit was filed in U.S. District Court Thursday by 70-year-old Bob Heghmann.”

https://www.axios.com/gop-donor-sues-over-failed-aca-repeal-2469153410.html

#39 mouldyinYVR on 08.06.17 at 5:35 pm

“The bottom line is that there’s no real estate frenzy in Quebec. They save their hormones for what matters. You should try it.”
‘sans blague’

#40 MF on 08.06.17 at 5:35 pm

I’ve been to Montreal a few times. Nice place and people, but Toronto has it beat in every way except history.

The energy in Toronto is higher. Montreal is more European in that respect. The French aspect can be offputting if you don’t speak French well, but Montrealers are usually bilingual.

Garth is using sound logic, but the biggest obstacle to his strategy is rising rents. Everyone I know of complains about the cost of their rent being too high relative to their salary. Along with the idea that real estate will always go up, is the idea that if you are paying most of your money on rent you might as well pay a mortgage (nobody cares about their down payment opportunity cost because the average person does not trust stocks and bonds for good reason).

MF

And now you know why most people fail. They think like you. — Garth

#41 crowdedelevatorfartz on 08.06.17 at 5:43 pm

Hello Reators out there.

Meet #27 Dan.t
He is what the future will bring when this whole ponzi real estate house of cards collapses.
Hundreds of thousands if not millions of greaterfools led to the financial slaughterhouse by commissioned salesmen and their dubious sales practices….
And if you think the politicians will be in your corner when the voters are waving torches and pitchforks…….
Good luck with that.

Realtor = zero credibility

#42 Lee on 08.06.17 at 5:54 pm

I think a couple who is retired and collect almost fully in CPP and oas ($40000 combined) and own their home are fine with $600000 invested and yielding $24000 with some capital growth. This assumes kids have finished school. That’s a tax-free $64000 Per year and about $45000 per year almost tax free for the surviving spouse. You can even have a travel holiday now and then, as long as you don’t insist on flying in the Ted Danson plane.

#43 crowdedelevatorfartz on 08.06.17 at 5:59 pm

@ The Flopster.

You’ll be happy to know I have loaded up on Pink Lemonade(on sale at Safeway) for my vodka slurpies.
Nothing like a lemonade slurpie with a bit of a kick to get one through the heat wave currently smouldering in the lowerbrainland.

#44 Andrew Woburn on 08.06.17 at 6:08 pm

A long but interesting take on the some of the forces driving factory automation in the US.

“But as one factory in Wisconsin is showing, the forces driving automation can evolve — for reasons having to do with the condition of the American workforce. The robots were coming in not to replace humans, and not just as a way to modernize, but also because reliable humans had become so hard to find. It was part of a labor shortage spreading across America, one that economists said is stemming from so many things at once. A low unemployment rate. The retirement of baby boomers. A younger generation that doesn’t want factory jobs. And, more and more, a workforce in declining health: because of alcohol, because of despair and depression, because of a spike in the use of opioids and other drugs.”

https://www.washingtonpost.com/national/rise-of-the-machines/2017/08/05/631e20ba-76df-11e7-8f39-eeb7d3a2d304_story.html?undefined=&utm_term=.5a98d502c690&wpisrc=nl_most&wpmm=1

#45 Freedom First on 08.06.17 at 6:23 pm

#40 MF

I just love your Posts MF.

It’s like you purposely tee it up for Garth.

And we always end up getting a great message from Garth when he slams it.

#46 MF on 08.06.17 at 6:24 pm

And now you know why most people fail. They think like you. — Garth

Those that purchased real estate in the last ten years are not failing. They are often way ahead in terms of net worth (if they sell of course) and options.

Mortgage rates are rising yes, but when your equity is 700k on a 1 million dollar house, the paltry .25% raises are negligible.

My boomer parents have a paid off house we grew up in, and that they still enjoy their retirement in. The house was purchased for 200k cash in 1992. This house is now “worth” about 1.2 million (if someone were to want to buy it). They also have a large portfolio.

The daily maintenance, property taxes, and utility fees are all easily covered by the portfolio’s income. It can be argued that same portfolio was allowed to grow so strongly due to the lack of expensive rent for 25 years.

Point is, rising rents cannot be discounted since they harm anyone’s ability to save and invest. We are at a point where the average rent is getting to be a large total percentage of income, and people either pay rent forever or take out a mortgage and try to pay it off and enjoy the asset in retirement.

Renting + saving a lot + investing = solid strategy
Renting + saving nothing + not able to invest + not paying off any asset = worst of all worlds.

That’s all I was trying to say.

MF

#47 Nero on 08.06.17 at 6:24 pm

New neighbour at the condo we rent jsut sold her house in Tsawwassen. Listed @ 0800AM and sold @ 1500PM same day. No subjects, Asian investors…Good for her!
Imagine if this becomes a thing?!!….LOL. :)

#48 Dolce Vita on 08.06.17 at 6:28 pm

#15 Greater Fool

Ya, it’s fake.

Google how the Benchmark price is calculated and explain it to the rest of us – especially the stats part and where in the absence of data they’ll just fudve in.

Flop (surprised you have not read his posts), Ross Kay and many others say to the YVR RE Cult the party is over and has been since Oct. of last year. Go here and enjoy how well YVR RE is doing with actual data and not the Realtor BS, Susie Q. at CBC is requoting:

http://www.myrealtycheck.ca

It’s called:

Death by a 1000 cuts and getting worse.

#49 Sebee on 08.06.17 at 6:28 pm

I’ve reduced my intake of news significantly since newspapers went behind paywalls and I cut off cable. So much time saved not listening to this news machine. So many fewer ads watched too.

Quality of life has improved significantly. I highly recommend it.

#50 LH on 08.06.17 at 6:31 pm

I have north of cad 3mio of stocks (on top of real estate),
yet I eat Kraft Mac&Cheese bought from Costco (favorite store on earth)

Korean cars though? NO thanks.

#51 MF on 08.06.17 at 6:33 pm

#32 Tony on 08.06.17 at 4:55 pm

Incorrect again.

Millennials more than anyone else look to non mainstream online sources, like this blog, for their news over traditional sources like The Globe and Mail. The Globe website contains the same articles as the print.

Remember we created Facebook.

MF

#52 For those about to flop... on 08.06.17 at 6:42 pm

Crowded House 59 pm
@ The Flopster.

You’ll be happy to know I have loaded up on Pink Lemonade(on sale at Safeway) for my vodka slurpies.
Nothing like a lemonade slurpie with a bit of a kick to get one through the heat wave currently smouldering in the lowerbrainland.

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

Hey Crowdie, I guess you’ve also noticed the Pinkish hue over the city as well.

The realtors will spin it as Pink sky at night ,sailors delight.

Pink sky in the morning,good time to buy a house…

M43BC

#53 Timmy on 08.06.17 at 6:44 pm

There’s really nothing driving Montreal. It is a great city and fun to live in, but good luck in finding a decent paying job. They say that all of the suits went to Toronto and the creative types stayed in Montreal. That’s why it is fun but also why the economy sucks. Other than a bit of aerospace, pharma, and hi tech, there are not many decent paying jobs. Throw that in with the miserable weather in the winter and it is a recipe for slow growth.

#54 crossbordershopper on 08.06.17 at 6:54 pm

BANNED

#55 TurnerNation on 08.06.17 at 7:03 pm

Livin’ life by the Drop: Stevie Ray Vaughan.

https://www.youtube.com/watch?v=ihoudTTcWp4

Drop the beat, savour the heat; trip the well – fantastic. 50 years to go (The sky is trying).

M41ON

#56 Eric on 08.06.17 at 7:04 pm

Doug in London is correct. Timmins is where it’s at. Low cost of living….unfortunately relatively high property taxes but overall a great place to live. We have a pretty good ice cream shop….but we could use a second one Garth….if you’re willing to expand.

#57 Spectacle on 08.06.17 at 7:04 pm

Now that was funny! Great writing Flop! Keep it up.

“#3 For those about to flop… on 08.06.17 at 1:08 pm
Pink Lemonade stand in Langley.
……..they have one thing in their favour that some of my cases yesterday did not and that is the fact that the house was built this decade…

M43BC”

#58 For those about to flop... on 08.06.17 at 7:07 pm

#45 Freedom First on 08.06.17 at 6:23 pm
#40 MF

I just love your Posts MF.

It’s like you purposely tee it up for Garth.

And we always end up getting a great message from Garth when he slams it.

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

Hey Freedom ,that’s why I nicknamed Garth,Thor Turner ,he drops the hammer on people when he thinks they need it.

He used to drop it me a lot when I first arrived on the blog, and then I explained although they look similar from a distance being a total moron and being Tasmanian has subtle differences.

It’s a tough love thing.

NoName has been giving it to MF lately and I’ve got a lot of time for both these posters.

One is an immigrant like myself that was more disadvantaged with language than I was ,that is kicking my ass investment wise, and I have always had a soft spot for MF as he is a younger guy that gets his head turned occasionally but works hard for his money and seems to respect it but his patience is wearing thin ,which I somewhat understand.

On here we all run our own race ,over different distances,but that doesn’t mean we can’t jog a few laps together and have a laugh at the same time…

M43BC

#59 Kim on 08.06.17 at 7:08 pm

The “average price” in YVR has been dropping by 5k-15K a day for the past month, accelerating quite rapidly.

Now, the “average price” I’ve always argued is a poor barometer for how the market is doing. But the realturds had no problems using it when it was being inflated rapidly. Now that it’s dropping, everyone reverts back to using the fake REB “benchmark” price which is fudged.

With enough properties changing hands, the “average” is good but not as good as the “median” which NEVER gets reported in Canada but does in the US. That’s because the “median” is almost always lower than the “average”. And dumb Canadians are so stupid because rather than attending math class they were out smoking pot or taking some social justice warrior class.

https://www.zolo.ca/vancouver-real-estate/trends

“Average” price is 1.131 in YVR and rapidly dropping. Screw the “sales mix”. Detached aren’t selling. List your bungalow for 20 million. If it doesn’t sell, IT’S NOT WORTH 20 MILLION.

#60 ulsterman on 08.06.17 at 7:13 pm

I’m in the Ireland visiting my retired Dad and being the retired, nerdy engineer, he tracks his spending. He has a paid-off house and car. He doesn’t take foreign trips. He gets a free bus/train pass and uses his bicycle when the weather is decent.

I’ve noticed that most things are cheaper here in Northern Ireland than in Vancouver: houses, cars, insurance, alcohol, tv/internet/cell packages, and food.

I asked him how he managed to live on the state pension and a extremely small private pension. Easy he said. He spends 440 pounds (C$705) on everything. He’d written it all out on a spreadsheet and i couldn’t find any obvious missing expenses.

I think i may be retiring back in the UK! Just a simple example of the affordability over here vs rip-off BC. I went into Carphone Warehouse and was offered a no-contract 30 day SIM card for my phone for C$8/month. It included 500 minutes talk, 5000 texts, and 1.5Gb data.

My dad doesn’t eat out at restaurants, buy new clothes, or travel abroad, but he’s shown that it is possible to live on a very modest pension. I want to have more than he does in retirement, but he claims to be very happy with his lot. C$1,250,000 is just a joke to him.

#61 ulsterman on 08.06.17 at 7:14 pm

i meant to say that is C$705/MONTH

#62 Tony on 08.06.17 at 7:18 pm

Re: #51 MF on 08.06.17 at 6:33 pm

The Millennials are the only age bracket that would believe everything the Globe and Mail online states.

#63 Smoking Man on 08.06.17 at 7:32 pm

MSM blowing sunshine on real estate as I predicted.

On a savage gambling road trip to bankruptcy. Going dark for a bit. Mississippi tomorrow. Then New Orleans.

They call me Jimbo but Dr Jimmy only comes out when this shit happens. It’s not Gin. JD

https://youtu.be/ZE097BPAPeE

See you in a few weeks dogs. I’ll sign in again when I back track to Atlantic City. Got to put all the spy wear divices into storage. Feds after me huge. I’ve pissed off alot phyco librals. And they are vindictive little pricks.

Cash only for next 10 days.

#64 Viorelli on 08.06.17 at 7:35 pm

I am nearing my 60’s in Vancouver, done well being from am immigrant family who run away from ussr in the late 80. Own two detached properties which are worth millions in a good part of Vancouver. Have investments in USA, gold and silver, other currencies. Two kids, one 20, the other is almost sixteen. The oldest is in school and working part time, the youngest lives at home ( basement dweller), rent free, as he goes to school. I don’t pay for education, but provide housing, food, etc. They have to do good in school and help with house chores like cutting the grass, washing cars, driving to grocery, stores, repairs and maintenance. Nonetheless, I am realizing that the yonger generation has it much harder now days as their future prospects making it on their own from scratch in this country are very dim. I am increasingly researching other options of businesses with my relatives in the former ussr and Thailand. The country run by the socialist hucks will soon explode, many of my ex business partners who have done well in Canada had already strategically positioned themselves overseas.

#65 For those about to flop... on 08.06.17 at 7:36 pm

#48 Dolce Vita on 08.06.17 at 6:28 pm
#15 Greater Fool

Ya, it’s fake.

Google how the Benchmark price is calculated and explain it to the rest of us – especially the stats part and where in the absence of data they’ll just fudve in.

Flop (surprised you have not read his posts), Ross Kay and many others say to the YVR RE Cult the party is over and has been since Oct. of last year. Go here and enjoy how well YVR RE is doing with actual data and not the Realtor BS, Susie Q. at CBC is requoting:

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

Hey Dolce Vita or as I think when I read your title Danny De Vita,firstly I want to thank you for your support I have noticed you mention me several times and I think I get more if a kick out of it when someone from Europe,Asia ,GTA or Nova Scotia thanks me for my efforts because it’s just not a local thing that had been foisted on Vancouverites it goes a lot deeper than that.

Secondly ,as I stated the other day the problems that Vancouver is currently suffering from hit a point of no return in the Spring of 2016.

The two areas that had been chewing down the hotdogs like Joey Chestnut at the 4th of July eating competition got stomach cramp and tapped out.

Westside of Vancouver and West Vancouver.

This has caused the market to look for a new champion and Christy Clarke tried to supply more water to ease the hotdogs down but the way it’s looking at the moment it’s all going to come back up.

Vancouver could get hungry again but right now a lot of the city is too bloated and is just sitting at the booth wondering whether it was a wise decision to go back for seconds…

M43BC

#66 Smoking Man on 08.06.17 at 7:38 pm

51 MF on 08.06.17 at 6:33 pm
#32 Tony on 08.06.17 at 4:55 pm

Incorrect again.

Millennials more than anyone else look to non mainstream online sources, like this blog, for their news over traditional sources like The Globe and Mail. The Globe website contains the same articles as the print.

Remember we created Facebook.

MF
….

If that’s case why are most of your kind mind fd libtards.

I’m thinking the majority read the toronto star.

#67 DON on 08.06.17 at 7:50 pm

#49 Sebee on 08.06.17 at 6:28 pm

I’ve reduced my intake of news significantly since newspapers went behind paywalls and I cut off cable. So much time saved not listening to this news machine. So many fewer ads watched too.

Quality of life has improved significantly. I highly recommend it.
**************

Ageed!

#68 Sandra Van Zetten on 08.06.17 at 7:58 pm

In this video, Mr. Salbuchi gives an updated on the present status of 12 triggers that the Global Power Elite is using to drive the transition from Globalizatiion (which they are wrapping up), to the World Government they are ushering in. His e-Book “The Coming World Government: Tragedy & Hope?”

This blog is getting scary again. — Garth

#69 vulcan without ears on 08.06.17 at 8:04 pm

“in Quebec. They save their hormones for what matters. You should try it”

Hot womans and good wine…
That’s why the frenchs lost North America 250 years ago!

#70 Deplorable waste of space dust on 08.06.17 at 8:06 pm

#63 Smoking Man on 08.06.17 at 7:32 pm
MSM blowing sunshine on real estate as I predicted.

On a savage gambling road trip to bankruptcy. Going dark for a bit. Mississippi tomorrow. Then New Orleans.

They call me Jimbo but Dr Jimmy only comes out when this shit happens. It’s not Gin. JD

https://youtu.be/ZE097BPAPeE

See you in a few weeks dogs. I’ll sign in again when I back track to Atlantic City. Got to put all the spy wear divices into storage. Feds after me huge. I’ve pissed off alot phyco librals. And they are vindictive little pricks.

Cash only for next 10 days.
….
Run smokeyrun. Your the last hope the western world has. Trannies and the cra hot on your ass. Did you shoot thedogs?

#71 dr. talc on 08.06.17 at 8:08 pm

so the correction is here but its still not time to buy, ok.
but here’s how it really works
inflation is irreversible, that is just a fact because it’s built into the system, today’s deposits are like 1980s purchase prices
historically there is never any way back to ‘what was’
only two steps forward, one step back
governments are powerless
in fact all the BS floating from M, T2, Wynn Desouza OSFI etc is just to make you think they can control things, they can’t. they want to make you think the currency is better that Istanbul toilet paper,
prove me wrong,
inflation is everywhere, it’s just more visible in real estate, 5% at Tim Hortons is just an obvious example due to ‘rising costs’
what you are witnessing is a rush to hard assets.
HHCE! can type himself to death, all you need to know is that there are 10s of millions of people in houses that they can afford but may not even ‘qualify’ for, and as Ottawa wants to ‘stress test’ them if they move- port, up grade, re-locate, etc, many will stay put

#72 Bonhomme Carnaval on 08.06.17 at 8:10 pm

@ #46 MF on 08.06.17 at 6:24 pm

Lovely 2 bedroom apartment in Westmount, QC. At the corner of Sherbrooke Street West & Claremont Avenue, no less (Victoria Village)!

Includes heating, hot water, and four appliances!

http://cromwellmgt.ca/en/property/pickwick-arms-2-bedrooms/

This is on the high-end of the rental market.

Can I get a similar apartment, at the same price, in Rosedale?

FYI: Average monthly rents across Canada :

http://www.ctvnews.ca/canada/report-reveals-average-rent-prices-across-canada-1.2704967

Note: Quebec has some of the most Draconian rent controls in the free world, i.e. guaranteed affordable rent!

#73 Smoking Man on 08.06.17 at 8:10 pm

If any of you bastards thing I’m bull shitING about machine being after me. My last perescope feed. The audio was cut just as I was about to slice into the T2 tomato and out the SOB. Look at my hands holding the phone. I did nothing.

These commies are after me huge.

I’m an atheist but for you jesus freeks out there please pry for me. Need all the help I can get.

#74 DON on 08.06.17 at 8:19 pm

#58 For those about to flop… on 08.06.17 at 7:07 pm

#45 Freedom First on 08.06.17 at 6:23 pm
#40 MF

I just love your Posts MF.

It’s like you purposely tee it up for Garth.

And we always end up getting a great message from Garth when he slams it.

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

Hey Freedom ,that’s why I nicknamed Garth,Thor Turner ,he drops the hammer on people when he thinks they need it.

He used to drop it me a lot when I first arrived on the blog, and then I explained although they look similar from a distance being a total moron and being Tasmanian has subtle differences.

It’s a tough love thing.

NoName has been giving it to MF lately and I’ve got a lot of time for both these posters.

One is an immigrant like myself that was more disadvantaged with language than I was ,that is kicking my ass investment wise, and I have always had a soft spot for MF as he is a younger guy that gets his head turned occasionally but works hard for his money and seems to respect it but his patience is wearing thin ,which I somewhat understand.

On here we all run our own race ,over different distances,but that doesn’t mean we can’t jog a few laps together and have a laugh at the same time…

M43BC
*************

Great Post.

MF: Patience – just live life for now. Enjoy! as things change fast. There is about 30 years of Adult experience between you and Garth. He is on your side but knows he can’t hasten the pace, things nee to play themselves out. Listen to his strategy and enjoy life at this moment in time. Trust me from 35 to 46 I have seen change every year and I still have decades to go but the last 12 have been spent learning how all things interact.

I was the most impatient person I knew. I learned that sometimes it is good to wait it out and avert disaster. Don’t get caught up in the herd mentality.

A few laps – Perfect take on things.

#75 Bonhomme Carnaval on 08.06.17 at 8:25 pm

@ #53 Timmy on 08.06.17 at 6:44 pm

Question: What’s ‘a decent paying job?’

“They say that all of the suits went to Toronto and the creative types stayed in Montreal.”

Good, they can keep’em. Did, you ever hear of the Creative Class?

http://www.telegraph.co.uk/finance/yourbusiness/12110614/Creative-industries-are-driving-force-of-UK-economy-says-David-Cameron.html

https://www.gov.uk/government/news/creative-industries-worth-almost-10-million-an-hour-to-economy

https://www.uktech.news/news/businesses-believe-tech-and-creative-industries-will-drive-londons-growth-20140619

London. One of the world premier capitals and financial centers. Hummm…

” That’s why it is fun but also why the economy sucks.”

Unemployment in Quebec is at 5.8%, compared to the National average at 6.3%.

Quebec currently has a better credit rating than ON. And likely to improve, while ON is heading in the other direction.

“Other than a bit of aerospace, pharma, and hi tech, there are not many decent paying jobs.”

I think you mean ALL of aerospace. CAE and Bombardier are 1 and 2 in terms of R&D bucks.

Throw that in with the miserable weather in the winter and it is a recipe for slow growth.

Dunno where you’re living bud, but it’s cold, wet, and mostly ugly from coast, to coast, to coast!

https://en.wikipedia.org/wiki/Temperature_in_Canada

#76 TurnerNation on 08.06.17 at 8:26 pm

Buy a retirement REIT.

Poor snowflakes today. Growing up hearing: Your life matters! Then sinister HR telling them: You are our most valuable resource. Then…this: carboard box and catfood.

Cash flow matters. Period.

https://www.thestar.com/news/gta/2017/08/06/retirement-home-rents-soar-putting-some-seniors-in-limbo.html

#77 Wrk.dover on 08.06.17 at 8:29 pm

This blog is getting scary again. — Garth

It’s full moon. My wife taught kindergarten, she says full moon is a much noticeable time of crazy in the herd.

Note any change with Smoking Mans postings tonight?

#78 Wrk.dover on 08.06.17 at 8:31 pm

#73 Smoking Man on 08.06.17 at 8:10 pm

################################

I rest my case!

#79 Bonhomme Carnaval on 08.06.17 at 8:33 pm

@ #40 MF on 08.06.17 at 5:35 pm

“I’ve been to Montreal a few times. Nice place and people, but Toronto has it beat in every way except history.”

And number of Stanley Cup Championships.

“The energy in Toronto is higher. Montreal is more European in that respect. The French aspect can be offputting if you don’t speak French well, but Montrealers are usually bilingual.”

Maybe you should of paid more attention in your high-school French class. Last time I checked, Canada has two official languages.

#80 Ian on 08.06.17 at 8:36 pm

Ooooooo I am waiting for Happy BoC day part 2 in October and Happy 2% stress test! The bear is growling!!! More food please he says

#81 Danforh on 08.06.17 at 8:53 pm

1.25M was the suggestion…

I’ve been through a zillion retirement calculators, and developed my own really fancy excel sheet with lots of formulas etc…
I keep coming in at 1.3M, in 2027 dollars. For just me (for now). And that’s on top of a paid-for place to live. Life ain’t cheap!

#82 Free bird on 08.06.17 at 9:01 pm

To back up Ryan’s blog and home care/retirement facility costs:

https://www.google.ca/amp/s/www.thestar.com/amp/news/gta/2017/08/06/retirement-home-rents-soar-putting-some-seniors-in-limbo.html

From being in the health care industry for twenty years I can tell you these numbers are real and will rise. Have a plan. Too many we know have been taken off guard.

#83 Free bird on 08.06.17 at 9:06 pm

#31 Penny Hanney
Hope all goes well at the animal hospital and the full moon brings good energy.

Fb

#84 Eastender on 08.06.17 at 9:10 pm

Let us not discount opinions by others-
http://roubinieconomics.blogspot.ca/2017/07/what-central-banks-will-do-in-next.html?m=1

#85 Smoking Man on 08.06.17 at 9:20 pm

DELETED

#86 A reply to #25 by paracho on 08.06.17 at 9:26 pm

I do not disagree with you . Better to have more info than less, as long as the reader can comprehend the differences between mean , median and mode .
I notice how some articles mention median and others mention average ( mean ). Many readers do not understand the difference and associate median with mean . This is were the journalists are deceptive . They choose the statistic that work best to their interests.
Mean median and mode can be used depending on what message one wants to portray or the main objective one is trying to find .
These statistics have been skewed by some very deceptive groups .

#87 Terry on 08.06.17 at 9:36 pm

CTV news, CBC news, Globe & Mail news etc….. it’s all just more lying media. I stopped reading newspapers years ago. I’m now deleting most of my links to the lying online media outlets now. It’s mostly all just cut, copy and paste lying crap. I’m finding it’s better to go through life uninformed then to let these sleazy media outlets try to do my thinking for me like they do with most of the masses these days.

#88 Raging Ranterr on 08.06.17 at 9:53 pm

@#46 MF, they’re not failing.... yet. Give it time. So many people are dipping into their HELOCs to keep up with expenses. Their rising “equity” doesn’t matter. My wife used to work at a bank. She saw those people all day every day. Their cheque just went to pay down their HELOC, giving them enough room to live in it another two weeks.

You can’t eat home equity, unless borrow against it. If they look like they’re doing great, that’s what they are doing. Borrowing against their house. The equity is spent. It defies reason that you come here every day repeating the same stupid things. It’s like you see rising prices and boing else. There is so much more going on, and it will be exposed whenever a prolonged slump finally sets in.

Nassim Taleb tells a story about a turkey. Google it

#89 Smoking Man on 08.06.17 at 9:55 pm

New national anthom for canadians

https://youtu.be/wJVpihgwE18

#90 meslippery on 08.06.17 at 9:59 pm

Yes Dentist and Dog vets are good. Real estate agents only if my dog likes you. You guys might be liked better
if stopped gouging our asses. Way too much per hour…

#91 Fake News Again on 08.06.17 at 10:04 pm

#51 MF on 08.06.17 at 6:33 pm
#32 Tony on 08.06.17 at 4:55 pm

Incorrect again.

Millennials more than anyone else look to non mainstream online sources, like this blog, for their news over traditional sources like The Globe and Mail. The Globe website contains the same articles as the print.

Remember we created Facebook.

MF
_____________________________________

Non MSM sources sure…..but millennial’s do not use “this blog” which is made up mostly of public sector workers who like to complain (brag) “My wife and I who are both govt workers and make 350K (plus benefits and pensions paid for by the taxpayer) between us and can’t afford a house in………(some area)….because of our BMW and Mercedes payments……blah blah blah”

#92 meslippery on 08.06.17 at 10:10 pm

Reason I say some charge to much is $15.00 per hour is
crazy too much. But $600.00 for 45 mins is cool for some of this people with out benifits or pensions.

#93 Game Over on 08.06.17 at 10:15 pm

Timmins is like the last outpost in Apocalypse now, right before you go see Colonel Kurtz in Moosonee!

#94 crowdedelevatorfartz on 08.06.17 at 10:31 pm

@#52 the Flopster
“The realtors will spin it as Pink sky at night ,sailors delight.
Pink sky in the morning,good time to buy a house…’
********
Pink sky in the morning, good time for mourning…”
+++++++++++++++++++++++++++++++++++

@#60 Ulsterman
“I think i may be retiring back in the UK! ”
******
Wait until a few years AFTER Brexit. You may have new “borders” to contend with…….
++++++++++++++++++++++++++++++++++

@#77 Wrk.dover
“Note any change with Smoking Mans postings tonight?’
******
was thinking the exact same thing.

Cooking Curried chicken with basmati rice tonight. Everyones welcome but it would be advisable to leave early. I wash it down with beer and then ride the elevator til midnight.

#95 crowdedelevatorfartz on 08.06.17 at 10:35 pm

Good luck with the “art sale” at Belfountain tommorrow Garth.
The Stained Glass art looks interesting

#96 bigtowne on 08.06.17 at 10:44 pm

My Word besmirching “the woods and pogey” in the same sentence. As Canadians collectively and singularly we are affronted by you low racoon you.

Pointy Head.

#97 Fish on 08.06.17 at 11:00 pm

ok, two seniros, wait for house ING to dropt, or meet a man that owns a house

#98 DON on 08.06.17 at 11:10 pm

#88 Raging Ranterr on 08.06.17 at 9:53 pm

@#46 MF, they’re not failing…. yet. Give it time. So many people are dipping into their HELOCs to keep up with expenses. Their rising “equity” doesn’t matter. My wife used to work at a bank. She saw those people all day every day. Their cheque just went to pay down their HELOC, giving them enough room to live in it another two weeks.

You can’t eat home equity, unless borrow against it. If they look like they’re doing great, that’s what they are doing. Borrowing against their house. The equity is spent. It defies reason that you come here every day repeating the same stupid things. It’s like you see rising prices and boing else. There is so much more going on, and it will be exposed whenever a prolonged slump finally sets in.

Nassim Taleb tells a story about a turkey. Google it
***************
Yup…have a friend who took out a heloc to buy furniture and travel. Says everybody is doing it.

#99 Happy Housing Crash Everyone! on 08.06.17 at 11:19 pm

You dirty evil lying SHYSTERS. Garth exposes the lies again and again. you high school drop ours are nothing but uneducated liars. The government has to regulate your shady industy. Blog dogs email T2, Kathleen and whoever you can think of and let them know this shady industry needs to be regulated . I already fired off a few emails. This is why everyone hates realtors and the shills who run it.

#100 Smoking Man on 08.06.17 at 11:20 pm

95 crowdedelevatorfartz on 08.06.17 at 10:35 pm
Good luck with the “art sale” at Belfountain tommorrow Garth.
The Stained Glass art looks interesting
….
The hand painted image of smoking man might give it some value.

On a road trip south at the moment but my artist bitch
She nailed it.

Love her

#101 Leo Trollstoy on 08.06.17 at 11:20 pm

Having millions of dollars as an almost-dead senior while spending $700/mo is a psychological illness

#102 conan on 08.06.17 at 11:27 pm

Biggest fake news has to be climate change and the oil money being spent to deny it. It is like the tobacco industry spending big dollars back in the late 40s, and for years after, telling us that doctors prefer Camels.

The Earth is a living thing. Time to stop taking it for granted.

https://www.youtube.com/watch?v=BlfqXw13M7o

#103 NiceBeach on 08.06.17 at 11:30 pm

to #46 MF on 08.06.17 at 6:24 pm

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

So you’re saying that buying a house when interest rates are going down is a good idea, sure. Now it’s the other way around, interest rates are at the bottom and trending upwards so in 30 years what the situation will look like?, surely we won’t get the same outcome with your parents, won’t happen again here.

The only way for house prices to appreciate the same way it happened to baby boomers is for inflation to go up and if that happens interest rates will go up and those with tons of debt will lose, big time.

The other scenario is for inflation to remain low, so houses won’t gain as much as it did in the past, your 1 million dollar home might just sell for 1.25 million in 20 years, so basically gaining nothing…. buying something in the right way and time is the key. When inflation is high I would jump on a house, but still who knew in 1980 that the inflation won’t go to 80% instead of 20 something…, BUT it’s easier to know the bottom of interest rates, yup it’s zero and we were there…

#104 MF on 08.06.17 at 11:36 pm

Glad I could spur some good discussion here.

#45 Freedom First on 08.06.17 at 6:23 pm

Lol. I like the golf analogy. We are lucky Garth responds to our comments and moderates. That’s not only an obligatory suck up, it’s the truth.

#58 For those about to flop… on 08.06.17 at 7:07 pm

As always I appreciate the kind words. You are spot on with your thoughts. It’s never about investing VS buying a house, but it took 2 years for me to break even with my balanced portfolio. Nobody’s fault, just bad timing. It’s hard to work 7 days a week, sacrifice a lot and save as much as you can only to come out behind someone who purchased a condo with laminate flooring and stainless steel, did nothing for two years, and sold at a huge profit.

It is what it is. Like you said, we all have our own journey and mine is only beginning :)

MF

#105 45north on 08.06.17 at 11:38 pm

Government’s commitment to “evidence-based decisions”:

Arora also says the government “will support the adoption across the economy of high-throughput tools to analyze and visualize data,” and that it will ensure end-users, whether businesses or citizens, can make “evidence-based decisions from data.”

http://www.itworldcanada.com/article/canadian-government-buying-into-big-data-with-new-forward-thinking-vision/395281#ixzz4p2B6fpbh

Dan.t makes the point that there is no reliable data:

why not give every Canadian the right to see past prices, asks, bids, time on the market (without deleting, re-listing, re-numbering or whatever the board does to hide true stats) and make everything transparent.

why not distributed ledger technology? When a seller puts a property on sale a block is created: survey and plan, address, date and asking price. To which the municipality adds: zoning and last years taxes. To which utilities add last years expenses. To which MPAC adds assessed value. When the seller accepts an offer the seller’s real estate agent adds selling price and commission. To which the bank adds the mortgage. To which the municipality adds taxes owing and utilities add utilities owing. To which the seller’s lawyer adds funds received and his fee. To which the buyer’s lawyer adds funds given and his fee. When the transaction is complete, the check sums are added and all parties get a copy.

#106 MF on 08.06.17 at 11:46 pm

#62 Tony on 08.06.17 at 7:18 pm

Only generation? My boomer parents read The Star every day. My dad circles articles, cuts them out, and saves them for decades until the paper turns brown and starts to smell. Looks like he believes what’s written to me.

#66 Smoking Man on 08.06.17 at 7:38 pm

It’s easy. There are two categories of millennials:

The first type (type 1) understands nothing is free and is willing to work as hard as he can to get what he wants. He will cobble together three part time contract garbage stints to make it work. He’s got 3 side hustles and lofty goals. He respects successful wealthy people and wants to emulate them. He recognizes the danger and fallacy that modern Liberalism is, and thinks T2 is a clown.

The second type is a pot head and has been for years. He is Liberal leaning, lazy, shows up late for work, will look for excuses to get out of work, believes he is owed something, hates “rich people”, and voted for T2. Granted these millennials are usually younger (below 25).

If a millennial is over 25 and still belongs to type 2, he is a lost cause and can be described as brainwashed.

Most of my 34 year old friends are type 1. I like to believe I am type 1 as well.

MF

#107 NoName on 08.06.17 at 11:47 pm

@
#88 Raging Ranterr on 08.06.17 at 9:53 pm

and you know what funny, canada’s turkeys meet their maker month sooner, than us turkeys…

#108 Vanrentor on 08.06.17 at 11:51 pm

#90 meslippery on 08.06.17 at 9:59 pm
Yes Dentist and Dog vets are good. Real estate agents only if my dog likes you. You guys might be liked better
if stopped gouging our asses. Way too much per hour…

My realtor split $70K with the buyers agent. He had maybe 20 hours invested and the buying agent had less than 10. Is that too much per hour?

#109 MF on 08.06.17 at 11:54 pm

#74 DON on 08.06.17 at 8:19 pm

Thank you for the great advice. Time seems endless when looking forward but tiny when looking back. It very could be that 10 years from now house prices will be much more affordable and the investors will have done extremely well for waiting. Investing is the long game, and that’s the hard part. It’s hard to sit and wait for a decade when you can log in to your account and check the status from day to day. Mental gymnastics are required and I admittedly got soft.

#79 Bonhomme Carnaval on 08.06.17 at 8:33 pm

No hate against French. Just will be hurdle if it is not your first language. I actually wish I was fluent (serious).

#88 Raging Ranterr on 08.06.17 at 9:53 pm

Let’s hope so. If saving and investing is the key, then rising rents are the biggest hurdle (among many). I’ll be honest. Psychologically, I cannot stand having a “landlord” and I hate renting.

#91 Fake News Again on 08.06.17 at 10:04 pm

On the contrary, this blog is made up of people who complain about public sector workers who run into burning buildings or risk getting shot by criminals getting “paid too much for doing nothing”.

MF

#110 Ponzius Pilatus on 08.07.17 at 12:23 am

Completely off topic.
But from the You can’t make this up file:
Naked Las Vegas man threatening to kill himself shot by police.

#111 WIN not lose on 08.07.17 at 12:31 am

#73 Smokey

Watched your periscope.

I believe you pushed the mute button on your earbuds. A while later you pushed them again and the sound came on.

T2 doesn’t care about you. He’s on “personal” business in BC.

#112 Ponzius Pilatus on 08.07.17 at 12:37 am

I’ve noticed that around 9:30 p.m. every night Smokie posts a comment that get’s deleted.
Care to explain Smoking Man?

#113 Wilbur44 on 08.07.17 at 12:58 am

Actually most ppl aren’t worried about mortgage payments when they retire. MOST ppl have their places paid off and they are worth about 10 times what they paid because of other ppl that are dumb and willing to over pay so settle their house lust. I’m pretty sure places will be worth more than they are now 25 years from now…

#114 Edmonton on 08.07.17 at 1:38 am

Garth,

If home ownership was an affordable option, what price do you think house prices should be on an average person’s income(65K-75k/year)???

Thank you for the blog!

#115 NoName on 08.07.17 at 1:39 am

#91 Fake News Again on 08.06.17 at 10:04 pm

Non MSM sources sure…..but millennial’s do not use “this blog” which is made up mostly of public sector workers who like to complain (brag) “My wife and I who are both govt workers and make 350K (plus benefits and pensions paid for by the taxpayer) between us and can’t afford a house in………(some area)….because of our BMW and Mercedes payments……blah blah blah”

—-

let me give you some real fake news, politicians those town down the hall meetings are in lots of pain…

“We are testing a new civic engagement feature that shows people on Facebook the top posts from their elected officials,” this spokesperson said in a statement. “Our goal is to give people a simple way to learn about what’s happening at all levels of their government.”

The feature will appear, at most, once per week, and only for users who follow at least one local, state or federal representative from their area. Facebook knows who your local reps are if you handed over your address to use the company’s voting plan feature — or its “Town Hall” feature, which helps people find and follow their elected officials.

Otherwise, you’ll just see posts from politicians at the state and federal levels.

Facebook has been active in the past year about getting its user base more involved in politics. In addition to the features mentioned above, which were rolled out before the November presidential election, Facebook also let users register to vote via the social network, and CEO Mark Zuckerberg claims more than two million people did so.

https://www.recode.net/2017/8/4/16098364/facebook-politics-posts-news-feed-new-feature-state-local

#116 Nonplused on 08.07.17 at 2:32 am

Garth,

I must apologize for picking on Ryan’s $1.25 million plan for $50,000 per year earners yesterday. I just got back from youtube, and now realize the solution. Just raise the minimum wage to $50/hour. It’s as simple as that. In fact, if we raise it to $100/hour, the housing crisis is solved too. It’s the right thing to do morally, socially, and politically, even if it doesn’t make a lick of sense economically.

#117 Karma on 08.07.17 at 6:14 am

“But as one factory in Wisconsin is showing, the forces driving automation can evolve — for reasons having to do with the condition of the American workforce. The robots were coming in not to replace humans, and not just as a way to modernize, but also because reliable humans had become so hard to find. It was part of a labor shortage spreading across America, one that economists said is stemming from so many things at once. A low unemployment rate. The retirement of baby boomers. A younger generation that doesn’t want factory jobs. And, more and more, a workforce in declining health: because of alcohol, because of despair and depression, because of a spike in the use of opioids and other drugs.”

In other words, drug abuse in the US is meaningful enough to permanently lower the participation rate of the labour force.

https://www.washingtonpost.com/national/rise-of-the-machines/2017/08/05/631e20ba-76df-11e7-8f39-eeb7d3a2d304_story.html?undefined=&utm_term=.2cfe971d662f&wpisrc=nl_most&wpmm=1

#118 jess on 08.07.17 at 6:33 am

http://www.bankofcanada.ca/publications/books-and-monographs/why-monetary-policy-matters/2-inflation/

Canada’s Inflation Performance, and Why It Matters

One indication of the success of Canada’s monetary policy is that inflation—the rate of change of consumer prices as reflected in the consumer price index (CPI)—is much less newsworthy today than it was during the 1970s, when it was often a headline issue. Chart 2 traces the path of Canadian inflation from 1966 to 2004, showing what are often referred to as the “twin peaks” of Canadian inflation, when inflation rose to over 14 per cent in 1973 and to almost 13 per cent in 1979. 1 The chart also shows the sharp decline in inflation during the early 1980s, from over 12 per cent to 4 per cent, the modest increase from 4 per cent to 6 per cent over the balance of the 1980s, and then the reduction from just over 6 per cent in 1990 to roughly 2 per cent over the following few years. Since 1992, the rate of CPI inflation in Canada has fluctuated around 2 per cent.

For many young Canadians today, who do not remember the high rates of inflation in the 1970s and early 1980s, it is difficult to appreciate why inflation matters; they have only experienced a world of low and stable inflation—inflation so low and so stable that most probably ignore it completely. Even for those older individuals who experienced first-hand some of the inflation-related economic disruptions in the 1970s and 1980s, inflation remains a bit of a puzzle; while they may have an instinctive appreciation of why inflation is undesirable, they find it difficult to be precise about why inflation is a problem. Why does inflation matter?

#119 Wrk.dover on 08.07.17 at 7:29 am

#101 Leo Trollstoy on 08.06.17 at 11:20 pm
Having millions of dollars as an almost-dead senior while spending $700/mo is a psychological illness
_____________________________

But you’ve got to leave it the kids ! Like your parents didn’t.
_________________________________

The best retirement calculator is your own numbers.

Track what you are spending because you work, separate that from what you spend because you live.
See what you’ll need?
Plan to stay high rent for ever? Then you need high dough forever. Always had a car payment? Then you always will.
Wanna live where you could look out the front window after shutting down at 10:08 last night and watch the international space station hurtle out of the remnants of the sunset toward the east rising full moon through the back window, or in live the big city lights? Its cheaper to rural, and much more pleasant. Dave Chappelle mentioned on Colbert the other night, that his town of 3000 is like the Simpsons, where you know who everybody is.

I noticed some media images of massive concert gatherings over the weekend. Unlike like the Windsor NS Smokin Bluesfest attended by about 300 people a week ago. We camped two nights 250 feet from the front of the stage, and could come and go from the front row as we pleased. BYOB too! Cheap!

Enjoy a new week in the lined up city everybody!!!
Retirement could be a carrot on a stick for you.

( now who else can I piss off today?)

#120 maxx on 08.07.17 at 7:45 am

“…..right through the period when Toronto was collapsing and (supposedly) gobs of money were flowing into La Belle Province.”

Coincidentally, yesterday, the tossers on Open House, the real estate and mortgage show in Ottawa howled to listeners that buyers were now streaming in from T.O. and snapping up two or more properties. Multiple rental income for the same re buy don’t ya know. And condos? They’re selling like hot cakes.

Add in the stomach-churning sound of the forced, fake-confidence laughter (hyuck!!, hyuck!!, hyuck!!) and you’re ready to hurl. RE shill perfection.

Wonder how many gullible and innumerate twits were buying this fear-mongering crap?

OMG! They’re coming in from Toronto!!!!!!!!!!!!!!!!

#121 Bezengy on 08.07.17 at 7:58 am

Big shout out for the Porcupine Gold Camp, commonly referred to as Timmins. Just lit the wood stove to get the chill out of the cottage. 15k buys you a nice acre in the country up here. Can’t understand why we never make the best places to live list. Must be more fake news.

#122 WUL on 08.07.17 at 8:10 am

I’m cranky and it is only 6:04 a.m. Mountain Standard Time.

We complain about taxes.

Just keep doing what we are doing and it will get a lot worse while the 1% add to their fortune with privatized profit and socialized cost:

Cost to taxpayers of cleaning up Giant Mine at Yellowknife about same as value of all the gold it produced for private interests: $4B. Oh, the $5MM or so the feds pay each year to keep the toxins out of the NWT waterways and lakes will be spent in perpetuity.

BC’s Mount Polley tailings dam failure cost taxpayers $40M to clean up despite Imperial Metals earning $128.7M and getting $2M a month in tax breaks.

Simple solution. Just go take money from shareholders, by force if necessary.

Otherwise we deserve all the punishment we receive. Fools we are.

I feel better already.

#123 ANON on 08.07.17 at 9:25 am

The bottom line is that there’s no real estate frenzy in Quebec.

yet. The need for exponential growth, even with a lower percentage, guarantees it will be, of course unless the two big Delusias are careless again and lose some value, the search parties still cannot find it, in which case all bets are off, because we all (should) know what a fall in house prices really means, even if it does not make for polite conversation, and should not be uttered. And some suburban markets in Quebec are red hot little Delusias themselves.

Foreign buyers in Quebec = 1.3%. So 98.7% are locals. You’re just as funny as the fools on the left coast. — Garth

#124 ANON on 08.07.17 at 9:59 am

Foreign buyers in Quebec = 1.3%. So 98.7% are locals. You’re just as funny as the fools on the left coast. — Garth
I knew this was coming from the linked article, please allow me to explain, I am not into the foreign buyers narrative, but prices are set on the margins, so it is factor to consider in the local’s delusia. There is a reason this appears in the news and in the comments whether against or pro foreign buyers and immigrants.

1% is not a margin. It’s a dust bunny. — Garth

#125 A Reply to #116 Nonplused on 08.07.17 at 10:09 am

“Just raise the minimum wage to $50/hour. It’s as simple as that. In fact, if we raise it to $100/hour, the housing crisis is solved too. It’s the right thing to do morally, socially, and politically, even if it doesn’t make a lick of sense economically.”

The above is obvious sarcasm, but you seem to think that economists don’t have a range of policy options (besides the minimum wage).
https://en.m.wikipedia.org/wiki/Minimum_wage

Many economists—even U.S. free-market economist Milton Friedman—have advocated a negative income tax.
https://en.m.wikipedia.org/wiki/Negative_income_tax
https://en.m.wikipedia.org/wiki/Guaranteed_minimum_income
https://en.m.wikipedia.org/wiki/Basic_income

There are also other policy instruments—already in existence in the U.S. and the U.K.
https://en.m.wikipedia.org/wiki/Earned_income_tax_credit
https://en.m.wikipedia.org/wiki/Working_tax_credit

#126 FLHTK on 08.07.17 at 10:19 am

Been trying to get my wife to move to Timmons for years now! Likely won’t happen. I can see the east coast though….

#127 Reximus on 08.07.17 at 10:30 am

I am not being silly here. I would like to know how a 2 person household pays 600k+ for a condo or 700k+ more for a townhouse based on, lets say above average BC wages (add in a kid or two). Explain it to me please and do the math like I am a grade 10 student. I would be very grateful.

====

My new neighbors just paid 1.2m for their new home, (Toronto east) and they have NO mortgage…they are mid-late 30’s newlyweds with a kid due any day. When they met each had a condo, so she sold hers when they got married last summer and moved to his, they then sold that and bought the house across the street.

It’s not that complicated.

#128 Prince Polo on 08.07.17 at 10:34 am

Where did I suggest you need $5 million? Are you on drugs? — Garth

=================
Garth asks a pharmacist if he/she is on drugs! LOL.
Have you considered offering stand-up comedy lessons in addition to financial advice? One blog per month on witty come-backs, please!

#129 Ronaldo on 08.07.17 at 10:38 am

Realty stats according to Macdonald Rlty

https://twitter.com/Macdonald_Rlty/status/893149060693082113?mc_cid=bfda9e47cf&mc_eid=e5e7fe6f8e

#130 Ronaldo on 08.07.17 at 10:44 am

#114 Edmonton on 08.07.17 at 1:38 am

Garth,

If home ownership was an affordable option, what price do you think house prices should be on an average person’s income(65K-75k/year)???

Thank you for the blog!
————————————————————
All hinges on interest rates which are now at all time lows and nowhere else to go but up. Time will tell.

#131 Ronaldo on 08.07.17 at 10:48 am

#101 Leo Trollstoy on 08.06.17 at 11:20 pm

Having millions of dollars as an almost-dead senior while spending $700/mo is a psychological illness
—————————————————————-
We used to call it the ”depression mentality’. I knew a few seniors in this situation. Died rich and were afraid to spend. The ones that went through the depression of the 30’s. Sad.

#132 Casey on 08.07.17 at 10:58 am

#31 Penny Henny
Please say a prayer for my Penny (boarder collie/sheltie). She is at the animal hospital and things don’t sound good. :(

So very sorry that your Penny is not well. We lost our five year old sheltie, Flynn, to lymphoma four months ago and it absolutely devastated us… he was pure sunshine… miss him every single day.
Sending warm thoughts your way and wishing Penny wellness and peace.

#133 Oft deleted much maligned stock picker on 08.07.17 at 11:05 am

#7 Stone……almost buddy…..two people working lose one entire income to direct and indirect taxes……one kid in school and one in daycare eat up any disposable income from the remaining income. A couple needs to borrow to eat, lease two cars for work…..never mind all the other expenses. This is why an increased number of people voted Liberal last election…..because PM Prozac promise free baby sitting was coming…..that dope would be cheaper in ’18….but instead of the $300 dollar carbon tax rebate cheque going for giggle juice on the weekend…..Tru-phony jack up generals taxes $600 and screwed them all.

#64 Viorelli. Re: opening a business in Thailand. Dude….the Russian mob is way ahead of you…..and waiting to strong arm the foolish Russian dreamers who mistook Thailand for paradise and shake them down for protection money. But don’t feel lonely….the Jewish mob shakes down Jews….the African mob shakes down Africans….. The resort communities are now entirely controlled by the mob of some ethnicity or another…..even Hells Angels and an asset of other biker gangs controlling bars, liquor ….dope….and of course every group has prostitution….from Russia, China etc etc etc. What I’m saying is……don’t invest in Thailand if all you know is what you learned from a two week vacation. Come….live here at least two years….

#134 45north on 08.07.17 at 11:12 am

WUL: Cost to taxpayers of cleaning up Giant Mine at Yellowknife about same as value of all the gold it produced for private interests: $4B.

gold mining is an environmental disaster. The ad on “This Week in Money” brags about 32 grams per tonne! So you have to get a long ton of rock out of the ground, then refine it and then maybe you’ll get 32 grams of gold. What a disaster. I heard about some process where poor people in Indonesia use mercury to refine gold. Another disaster.

#135 context on 08.07.17 at 11:16 am

122 WUL on 08.07.17 at 8:10 am

Cost to taxpayers of cleaning up Giant Mine at Yellowknife about same as value of all the gold it produced for private interests: $4B. Oh, the $5MM or so the feds pay each year to keep the toxins out of the NWT waterways and lakes will be spent in perpetuity.

BC’s Mount Polley tailings dam failure cost taxpayers $40M to clean up despite Imperial Metals earning $128.7M and getting $2M a month in tax breaks.

—-

WTF ?!?! You can’t be serious… Links to sources, please?

#136 Dolce Vita on 08.07.17 at 11:25 am

#65 For those about to flop…

Continue to post, your Comment(s) always one of my first reads. Agree completely with your assessment today from all that I have read here from Garth, yourself, Ross Kay and others.

And thanks for the thanks.

I live in Italia, 85 km N. of Venice, got out of the YVR market before it peaked and looking in a few years to perhaps come back but not at the current prices. Why I follow the YVR RE market so closely and am informed by your unbiased, factual Comments.

#137 Inflation or the lack of on 08.07.17 at 11:27 am

#118 Jess

I think high(ish) inflation would help Canada in several ways.

1) it will wither away the mountain of debt, one way (devaluation) or another (defaults caused by higher interest)

2) people are less likely to delay purchases (would cost more next yr) thereby growing the economy.

#138 Dolce Vita on 08.07.17 at 11:37 am

#59 Kim

How dare you state the truth here about Median prices, shame on you.

You are going to make the YVR RE Cult Commenters here wet their pants.

Nicely said by the way. More grist for the mill:

Ross Kay, whom I trust, says the recent run up in prices of the YVR Condo market is 1st time buyers re-entering the market and purchasing expensive higher end condos (why prices up) AND that have no wish to purchase a Detached or Town Home.

Steve Sartesky has been touting Condo inventory struggling to meet demand in July. True, lower inventory but demand?

The same as it was a year ago and much lower than early 2016.

The YVR RE Cult is incredible to me, fanatics beyond all reason. The MSM like CBC as of late, just keep on repeating RE Marketing BS. So much for journalistic fact checking.

#139 Shoe Shine Boy Moment on 08.07.17 at 11:42 am

Our hairdresser in Vancouver gave us some unsolicited financial advice. She’s a lady in her 60s and through decades of hard-work running her little hairdressing shop and saving, she and her husband have paid off their house in GVRD, likely worth around $1.2-$1.5 million now. She had initially planned to downsize and retire within the next couple of years.

Instead, they came up with a new brilliant plan. She took a loan on her house (presumably a HELOC?) and bought a re-assignment on a pre-construction condo that won’t be built for a couple of years. She thinks she’s “made” $50,000 already and plans to do this a couple more times and have amazing rental income to live a retirement of ridiculous luxury. It’s really “easy” she says.

#140 nick on 08.07.17 at 11:44 am

Some common sense on cbc for once.

http://www.cbc.ca/player/play/961625667785/

#141 Casey on 08.07.17 at 11:48 am

https://mobile.twitter.com/CitytvNews/status/892420712979243009/video/1

Wow! The dude just never answers the question!! Hard to watch…

#142 I'm stupid on 08.07.17 at 11:50 am

#99 happy housing crash everyone

Your rant the other day made me laugh. I look forward to another rant. Very good entertainment thank you!

#143 Renter's Revenge! on 08.07.17 at 11:52 am

#118 jess on 08.07.17 at 6:33 am

Why does inflation matter?

I didn’t read the link (yet), so maybe the answers are already there, but two reasons I can think off the top of my head are that it represents an invisible transfer of wealth from savers to borrowers, and it distorts economic incentives.

#144 Tony on 08.07.17 at 11:54 am

Re: #114 Edmonton on 08.07.17 at 1:38 am

Morton Shulman always stated never pay more than three times the husbands gross annual income for a house. That was back in the 1970’s.

#145 Leo Trollstoy on 08.07.17 at 12:01 pm

Why is gold sucking?

http://www.marketwatch.com/story/gold-on-pace-for-longest-skid-in-7-weeks-2017-08-07

#146 I'm stupid on 08.07.17 at 12:02 pm

MF

You’re a dreamer, stop with the side gigs and focus on one thing. Be the best at it and you’ll find success. You can’t work for anyone and think you’ll realize your dreams. Being an employee sucks you give your blood sweat and tears and you’re only as good as what you did yesterday. Your treated like a child and have no freedom. Being a boss has its downside too but at least you’re in control of your own destiny. You have freedom to balance your work life and home life and you don’t need to ask for a day off!

#147 Long-Time Lurker on 08.07.17 at 12:12 pm

I read a funny comment today where the person called Justin Trudeau: PM Zoolander. I thought it was very apropos. “Justin, your make-up artist is ready!”

Flop, I tried to post pink mushrooms, last week. Maybe pink pot is more accurate for Van.

Alan Greenspan is predicting stagflation for the US. The source is MSNBC, I think.

Still lurking.

#148 jay#2 on 08.07.17 at 12:16 pm

Garth ,what do think of Bitcoin, is it a real investment or a scam ? http://www.businessinsider.com/how-to-buy-bitcoin-using-coinbase-2017-8

#149 meslippery on 08.07.17 at 12:31 pm

#108 Vanrentor
My realtor split $70K with the buyers agent. He had maybe 20 hours invested and the buying agent had less than 10. Is that too much per hour?
—————-
I know but your agent has no benifits or pension and has
to rent his desk.

#150 For those about to flop... on 08.07.17 at 12:51 pm

#138 Dolce Vita on 08.07.17 at 11:37 am

“Ross Kay, whom I trust, says the recent run up in prices of the YVR Condo market is 1st time buyers re-entering the market and purchasing expensive higher end condos (why prices up) AND that have no wish to purchase a Detached or Town Home.”

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

Hey Danny DeVita, I might have passed through close to where you are currently living when the wife and I took a train trip from Venice up to Vienna.
Udinese or something like that rings a bell in my empty head.

As far as your comment above from Ross Kay, I did a post a day or two ago showing how the cheaper detached options are not selling like they used to.

I do this about once a month to show how soft that part of the market is.

The hipsters are spending the same amount of money on a condo as they could on a fixer upper with no view and no coffee shop in the basement.

Priorities seemed to have changed.

The developers seem unsure that they can pick up a bulldozer for around 1.1 and build new and in a years time get 2.2 for it to make it worth their time.

And so that is why at the moment I believe these houses will continue to struggle to sell and they will slowly melt.

I live a small distance from one of the cheaper options in Vancouver that I showed yesterday.So far the elderly lady after 2 weeks took 25k off and then after another 2 months and 10 unsuccessful open houses took another 50k off.

The people on here waiting to vultch will say 75k off a house asking 1.3 million is nothing ,but the whole point is there was no need to do this in the past.

They were gone in a week or two now they just sit there working on their suntan.

I don’t wat to give the realtors any marketing ideas but…

Nicely suntanned fixer upper…

M43BC

#151 paul on 08.07.17 at 12:51 pm

Looks like he was trying suicide by cop. He had it coming.

http://globalnews.ca/news/3651227/naked-gunman-shot-las-vegas/

#152 NoName on 08.07.17 at 12:57 pm

#146 I’m stupid on 08.07.17 at 12:02 pm

Being a boss has its downside too but at least you’re in control of your own destiny. You have freedom to balance your work life and home life and you don’t need to ask for a day off!

—-

bit miss leading advice, especially part above, me personally i know fore working stiff with fu money than business owners doing same or similar job. what jobs/business are talking about?

MF don’t stop being dreamer if you are one!!!!

An ideas comes from “dreams” just think of google guy, he literally woke up in middle of the night one day and wrote his dream of organising internet… (bit of but you get a point.)

And even better think of my cousin Tesla, he did suffer some serious mental condition that was never diagnosed because at early age (9), he learned how to deal wit it, (just bear with me i’ll get to piont)
He would go off (sorry for luck of better explanation) every time he would see someone eating apple, especially red. He would get all funny and on top of that he would start drooling and acting funny, and wouldn’t be able to compose him self to stop, sometimes for days at the time.

Only way he could snap out of it if he in his mind “flys” to future and spends some time there, and brings ideas from it, to his present day and he would try to use technology of day to manufacture “things” and ideas he would brought back.
You know which way i am going with this one, basically there are few ways that you can achieve what you dream, some are more risky than another,
top most risky.

Trade forex leveraged 400-1
Trade stock market on a margin
Start your own business
Apply balanced approach

#153 conan on 08.07.17 at 12:57 pm

#122 WUL on 08.07.17 at 8:10 am

One just has to look at the facts to see that industry does not give a flying F about the Earth, or people. All changes that deal with protecting the environment, or people’s health, had to come from Government.

Private industry can not regulate itself, and this is a serious economic negative. Does not help that some Governments will gladly take industry money, and look the other way. Over time this creates shit Soufflé, just look around, the proof is in the pudding.

The solution might be the creation of a private sector entity, that uses a new form of economic modeling. Private industry might not know how to regulate itself, but when push comes to shove, they know how to create “win-win.”

#154 Keith in Calgary on 08.07.17 at 1:20 pm

http://www.newsday.com/business/real-estate-tech-company-aims-to-replace-agents-with-robots-data-1.13937907

Real Estate agents replaced with droids. While most here would not argue with the position that most RE agents are mindless bots to start with, it’s good to see this new development down in the US.

————–

A real estate technology company that aims to lower the cost of home-selling by using robots and “big data” instead of commission-based real estate agents has opened a Long Island office — its first outside of California.

REX Real Estate Exchange, which charges a selling commission of 2 percent instead of the usual 5 percent to 6 percent, launched its Long Island operation last week, when it started operating out of a co-working space at RXR Plaza in Uniondale. The Los Angeles-based company expects to start listing New York-area homes on its website, rexchange.com, later this week.

#155 MF on 08.07.17 at 1:23 pm

This one was painful to read (I know I know)

http://business.financialpost.com/real-estate/toronto-landlords-swipe-right-as-rents-near-hipster-brooklyns/wcm/4344b0c3-1a12-40f7-a3bd-504cb580beb5

Cliffs:

-Landlords have total control
-Lots of renters due to the housing bubble
-Renters are desperate
-Rents out of control

For all those who distrust the MSM like Tony. This is 100% in line with my experience here in the GTA.

MF

#156 DON on 08.07.17 at 1:27 pm

#135 context on 08.07.17 at 11:16 am

122 WUL on 08.07.17 at 8:10 am

Cost to taxpayers of cleaning up Giant Mine at Yellowknife about same as value of all the gold it produced for private interests: $4B. Oh, the $5MM or so the feds pay each year to keep the toxins out of the NWT waterways and lakes will be spent in perpetuity.

BC’s Mount Polley tailings dam failure cost taxpayers $40M to clean up despite Imperial Metals earning $128.7M and getting $2M a month in tax breaks.

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WTF ?!?! You can’t be serious… Links to sources, please?
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Just google and do some research – especially for Mount Polley. Stay away from the Province, Van Sun, National post, globe and mail if you want to get the true story and numbers. Mount Polley was just in the news on Friday. Provincial statute of limitations ran out, no charges from Province (under corrupt Christy Clark and her donations). An independent lawsuit was filed and supposedly the Province (new Gov) can take it over. The Feds can still fine using the Fisheries Act. Murry Edwards is the Mount Polley owner and is now living in London. Too hot to stay in Canada.

#157 MF on 08.07.17 at 1:38 pm

#146 I’m stupid on 08.07.17 at 12:02 pm

Fully agree. We as a country/society should reward business owners who take the risk, put their life savings on the line, and try to live our their dreams. I don’t know if I would consider myself a dreamer. I crave the stability of regular employment. How typical.

Problem with this dream, of course, is actually coming up with a viable business idea and then implementing it.

MF

#158 NoName on 08.07.17 at 2:08 pm

internet concept from 1904

http://www.huffingtonpost.com/w-bernard-carlson/did-al-gore-invent-the-internet_b_3581391.html

#159 For those about to flop... on 08.07.17 at 2:22 pm

If Amazon gets into the real estate biz like they are supposedly looking into,then that could change everything…

M43BC

Not in Canada. — Garth

#160 Boots on the Ground in Ptown on 08.07.17 at 2:26 pm

Got a kick out of the full moon crazies comments thx Wrk. Dover (PS sorry about the tree bugs your property got from China! coincidentally enough sort of ties into my point below)

people…do some research on the life cycles of parasites/moon cycle connection… (yep, we have parasites in developed nations, imagine that-they don’t stop at country borders much as the mainstream doc would like you to believe otherwise)
Gut / Brain connection huge-check out neurologist David Perlmutter

#161 Crazy on 08.07.17 at 2:38 pm

Hey Garth, RE: #73 is SmokingMan literally this insane in person too? or is this just an internet caricature?

#162 Russ on 08.07.17 at 2:53 pm

conan on 08.06.17 at 11:27 pm

Biggest fake news has to be climate change and the oil money being spent to deny it. It is like the tobacco industry spending big dollars back in the late 40s, and for years after, telling us that doctors prefer Camels.

The Earth is a living thing. Time to stop taking it for granted.
==========================

What if part of the grand plan is to return the Earth to favouring plant life.

The energy sector and auto consumers just might be doing god’s work… don’t miss out on “the last great oil boom”.

Seriously, I saw a “don’t miss out” headline like that in the financial section of a mainstream newspaper, circa ’90s.

#163 Wrk.dover on 08.07.17 at 2:59 pm

A couple years back Fifth Estate or a clone did a story that aligns with governments spending as much to deal with depleted mines as the miners had netted over time, on the mines.
The only pretend gain is in the wage distribution to mole wannabees needing industrial disease, and those particular people do indeed pay income taxes.

Apparently too, these companies only pay property tax on the above ground infrastructure, but not on the labyrinth of underground roads, some totalling hundreds of miles.

Guess who sells company housing to willing miners and local support population, sometime before the company shuts down operations. Then it’s downa downa.

#164 Fake News Again on 08.07.17 at 3:00 pm

#91 Fake News Again on 08.06.17 at 10:04 pm

On the contrary, this blog is made up of people who complain about public sector workers who run into burning buildings or risk getting shot by criminals getting “paid too much for doing nothing”.

MF

____________________________________

Sorry your wrong. The counter culture is just more vocal. They only time the majority of readers “write here” is when they are upset that their 350K combined pubic sector income can’t buy them something.

#165 art on 08.07.17 at 3:05 pm

More real estate crud to chew on.

If any of you real estate bashing fools were bright enough….you’d know there are alternatives to full service realtors. But you would bash them too. “You get what you pay for”….blah blah blah.

#166 Joe2.0 on 08.07.17 at 3:06 pm

Housing prices up “another” 4%

#167 jess on 08.07.17 at 3:11 pm

2017 Payout Analysis – 10 Largest Bank Holding Companies

https://www.fdic.gov/about/learn/board/hoenig/hoenigletter07-31-2017.pdf

Global Capital Index sept 2016
https://www.fdic.gov/news/news/speeches/spsep2016.html

#168 Ulsterman on 08.07.17 at 3:23 pm

Im sure many comments here deleted. A majority? possible. Why have we been so wrong on real estate in last 12 years? Especially Vancouver.

Roughly 1% of comments are deleted. The reasons have been set forth a number of times and almost always involve racism, anti-immigration, slander, foul language or ad hominen attacks. — Garth

#169 Wrk.dover on 08.07.17 at 3:25 pm

#167 jess on 08.07.17 at 3:11 pm

wowowowowowow

This stuff makes my head explode! Keep it coming, I guess?

#170 oncebittwiceshy on 08.07.17 at 3:57 pm

>>>>>>>>>>#165 art on 08.07.17 at 3:05 pm
More real estate crud to chew on.

If any of you real estate bashing fools were bright enough….you’d know there are alternatives to full service realtors. But you would bash them too. “You get what you pay for”….blah blah blah.<<<<<<<<<<<<<

You know what, Art, in a normal market very few people begrudge a real estate agent their commission.

The biggest problem that your industry suffers from is the magical numbers that your overlords developed to obfuscate the true nature of the markets.

In the current market that means sucking people into peak market values and probably a future of bankruptcy, possible divorce and hopelessness.

In my 35 years of buying and selling real estate I have actually run into one honest and sensible realtor who, unfortunately for a lot of people, has retired.

The fact that the number of real estate agents double and triple during these bubbles doesn't particularly endear your ilk to the common person.

There will always be a career for an honest and sensible real estate agent. However, very few people are going to find that unicorn.

#171 Damifino on 08.07.17 at 3:57 pm

#153 conan

One just has to look at the facts to see that industry does not give a flying F about the Earth, or people.
—————————-
One could say as much about the Earth. It doesn’t care about people, or itself, for that matter. Terra is wickedly hazardous to life and it’s only through the fantastic tenacity of fit organisms that were stand here to witness our own success in the face of environmental hostility lying wait for us in every corner the planet.

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All changes that deal with protecting the environment, or people’s health, had to come from Government.
——————————————

Nonsense. The government doesn’t organize much of anything. The are primarily concerned with their own self preservation. It’s private interests that cleared this world of smallpox, against an ocean naysayers.

If you want to thank someone for improving the plight of the human race look to people like Thomas Edison and Louis Pasteur. And don’t forget the people who bring us the cheap, abundant, reliable energy we need to fly to exotic locations and twitter-bitch about them.

#172 Dolce Vita on 08.07.17 at 4:32 pm

#150 For those about to flop…

Agree on hipsters.

6 years ago sold upscale condo to where it seemed empty nesters where buying into like crazy (New West).

Then saw what you saw, hipster trend, and sold next place I bought after a engineered stone, marble, tile and wood upgrade everywhere, for that high tech look…and bingo, like flies to dung.

I don’t blame the younger generation for wanting condos that are upscale as opposed to detached fixer uppers, as you say, at least at the basement level, you can get a doppio macchiato and biscotti. They want turnkey with ammenities.
______________________

You went right by my place, Pordenone, Italy. Trenitalia or ÖBB have trains that go past Udine into Austria, I think. They stop at Pordenone.

I love it here. Prosecco, Tiramisu & San Danielle country and when I get bored, I hop the train and in 1 hr 10 min I am in St. Lucia train station Venice. How good is that? Plus Alps 8 km away, fantastic beaches 60 km away that stretch for 50 km until you run into Venice…and, the food and wine here are pretty good.

Still, I may come back to Canada in a few years. Why I pay attention to your posts closely about pricing and trends in the RE market there.

#173 Penny Henny on 08.07.17 at 4:49 pm

Roughly 1% of comments are deleted. The reasons have been set forth a number of times and almost always involve racism, anti-immigration, slander, foul language or ad hominen attacks. — Garth

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I’ve had dozens of post disappear into the either for none of the above reasons.
I must have forgot to hit the submit button.

Bull. — Garth

#174 quote of the day on 08.07.17 at 5:39 pm

Back to basics…

Unlike the United Kingdom and the United States, Canada avoided charging an income tax prior to the First World War.

The lack of income tax was seen as a key component in Canada’s efforts to attract immigrants as Canada offered a lower tax regime compared to almost every other country.

Prior to the war, Canadian federal governments relied on tariffs and customs income under the auspices of the National Policy for most of their revenue, while the provincial governments sustained themselves primarily through their management of natural resources (the Prairie provinces being paid subsidies by the federal government as Ottawa retained control of their natural resources for the time being).

The federal Liberal Party considered the probable need to introduce an income tax should their negotiation of a free trade agreement with the United States in the early 20th century succeed, but the Conservatives defeated the Liberals in 1911 over their support of free trade. The Conservatives (Tories) opposed income tax as they wanted to attract immigrants primarily from the United Kingdom and the United States, and they wanted to give immigrants some incentive to come to Canada.

Canadian finance minister Sir Thomas White’s new temporary “income war tax act” Bill went into Committee of the Whole on July 25, 1917 but faced resistance.[3] Wartime expenses forced the Tories to re-consider their options and in 1918, the wartime government under Sir Robert Borden, imposed a “temporary” income tax to cover expenses. Despite the new tax the Canadian government ran up considerable debts during the war and were unable to forgo income tax revenue after the war ended.

With the election of the Liberal government of Prime Minister William Lyon Mackenzie King, much of the National Policy was dismantled and income tax has remained in place ever since.

#175 paul on 08.08.17 at 10:58 am

#173 Penny Henny on 08.07.17 at 4:49 pm

Roughly 1% of comments are deleted. The reasons have been set forth a number of times and almost always involve racism, anti-immigration, slander, foul language or ad hominen attacks. — Garth.
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Well Garth, I hope you realize you have really narrowed the topics down on your blog. Hell all that’s left is houses and investments.

You forgot the economy, hormones & canines. — Garth

#176 Mark on 08.08.17 at 12:08 pm

You know that all leasing agreements end on july 1st in Quebec, right ? Of course by July everybody has either bought or rent months ago already. Month by month stats provide almost no insight in this context.