Born this way

Poor moisters. Coming into life’s rutting season when real estate has never cost more and emergency interest rates are collapsing. Worse, smug Boomers own all the houses and aren’t selling. So why can’t these wrinklies just take their Bowie, Stones and Prince CDs and waddle off the end of a pier? Isn’t it time the Huggies people replaced the Thirsty Undies crowd?

 Seriously, there’s a housing standoff happening. It’s unlikely such a situation has existed in the past since the biggest-ever generation (born 1946-64) has just been surpassed by an even-bigger one (born 1981-1997). Homeownership levels between the two groups is wildly divergent. Not even close.

The latest census data (just released) shows 71% of Boomers aged 65 to 74 own real estate while just 27% live in multi-family structures like apartments or seniors residences. (The other 2% may be dead but have yet to realize it.) And while we don’t seem to have data on what portion of all Boomers are homeowners (aged 53 to 71), it’s likely not far off US numbers. Americans 55 and older currently own 53% of all owner-occupied houses – which is up bigly from 43% a decade ago.

Here’s the shocker. The Mills (to age 35) currently hold just 11% of houses – only half of what the Boomers owned when they were the same age. This probably explains why a certain pathetic blog is overrun some days by a whiny pack of moisters moaning about inequity.

It also explains why a third of all people between the ages of 20 and 34 still live with their parents (says StatsCan), and why this has been increasing steadily for the past 16 years. The thing-in-the-basement situation is most acute, as you might surmise, where houses cost the most. For example, in the GTA a stunning 50% of Millennials under the age of 34 hang with their parents.

Says National Bank economist Krishen Rangasamy: “So, depending on how you feel about living with your boomerang kids, you may want to thank (or curse) the Bank of Canada for the extended period of low interest rates which has allowed average home prices to more than double over the last 12 years, thereby pricing many young adults out of the housing market.”

Is this going to change any time soon?

The Altus Group, a real estate research outfit located in TO, says no. Ain’t gonna happen for a long time – until the Boomers hit their eighties. For example, today about six in ten of all the senior wrinklies 75 to 84 still live in their houses, and but a third are in apartments. Given that the bulk of the Boomers are in their early 60s, it suggests Millennials could be pushing 50 by the time the housing market finally breaks down based on demographics.

No wonder the kids are pissed. To make it worse, the ancient ones are rapaciously greedy. Real estate’s ascent has given them an easy path to net worth, and those who decide to bail are expecting top dollar. It’s made for an historical anomaly – the massive transfer of wealth from children to parents as the geezers cash out and the kids shoulder fat mortgage debt.

Governments, naturally, have made things worse. Not only were interest rates crashed, then held in place for so long that a housing bubble formed, but seniors have been showered with gifts encouraging them to stay in their homes. A great example is the way Boomers in BC can essentially avoid paying property tax. The nearly-dead at 65 may be sitting on $1.6 million in real estate and the province still hands over up to $1,045 in pogey to help keep the lights on. Amazing. No wonder the sprouts hate us.

The good news, sort of, is that all will soon change, tilting in the opposite direction. The threats to Canadian residential real estate are mounting rapidly, as this site has been chronicling. Rising interest rates and new mortgage hurdles are just the latest obstacles. Sentiment has morphed dramatically. Mindless property appreciation has turned into the rapid erasure of equity. Suddenly a house doesn’t seem like the secure bastion of net worth it did six months ago. Legions of home-rich and asset-poor Boomers will have little choice but to consider cashing in, turning houses into needed cash flow. And that would be incredibly wise on their part. Waiting means losing.

Meanwhile, kids, don’t buy. The correction has just begun. The last thing you will want in five years is a 500-foot condo. And neither will anyone else.

226 comments ↓

#1 Randy on 08.09.17 at 5:31 pm

I still blame the Boomers

#2 And I Quote on 08.09.17 at 5:38 pm

“Do you think we enjoy hearing about your brand-new million-dollar home when we can barely afford to eat Kraft Dinner sandwiches in our own grimy little shoe boxes and we’re pushing thirty? A home you won in a genetic lottery, I might add, sheerly by dint of your having been born at the right time in history? You’d last about ten minutes if you were my age these days.”
― Douglas Coupland, Generation X: Tales for an Accelerated Culture

#3 TheSpangler on 08.09.17 at 5:39 pm

@#1 Randy

Who are mostly in government positions now and have significant real estate holdings. #conflictofinterest

http://bc.ctvnews.ca/b-c-minister-s-properties-surge-after-he-passes-foreign-buyers-tax-1.3426516

#4 Dolce Vita on 08.09.17 at 5:43 pm

“The other 2% may be dead but have yet to realize it.”

Classic Garth.

Sweet.

Still killing myself laughing as I type this.

#5 Banned Canadian Millenial on 08.09.17 at 5:47 pm

STILL BANNED

#6 Mike on 08.09.17 at 5:48 pm

.
Prices will be booming soon in GTA and all of Canada. Blip!! Blip!!

When the OSFI B-20 changes are kicking in? Oh, they wont change much….forget it.

#7 Are Millennials Stupid? on 08.09.17 at 5:50 pm

We all know Millennials are well educated and yet very stupid. Are they smart enough to wait boomers outs who are house rich but cash poor. You know that boomers would NEVER have paid these stupid prices. Boomers secretly laugh at millennials including realtors who can’t believe they can out smart educated millennials with their grade 10 education. Millennials are the reason for high housing prices because they are stupid.

#8 -=jwk=- on 08.09.17 at 5:51 pm

If they are gonna crash it, they got to do it fast so the pain subsides by next election. Boomers vote. GenX, largely, doesn’t.

They won’t. OSFI will blink. And when they do, this summer blip will be just a warm memory by Christmas with thousands wishing they had bought right now. Full speed ahead for Toronto….

#9 LOL at Toronto Housing Crash! on 08.09.17 at 5:52 pm

Naw Garth, I don’t hate you as a Millennial who is living in one of the worst times in Canadian history.

However, if you were an overpaid public sector unionised teacher spouting division among generations while teaching students how to snitch on their own parents for political viewpoints, then yes, me and Smoking Man may send you hate mail :-)

#10 Dave on 08.09.17 at 5:57 pm

Financial Post – Home building is booming
http://business.financialpost.com/news/home-building-is-booming-in-canada/wcm/67811145-147b-4774-8cda-de414a66e8b0

Things are looking great for real estate

#11 crowdedelevatorfartz on 08.09.17 at 5:57 pm

@#2 And I whine

“You’d last about ten minutes if you were my age these days.”
― Douglas Coupland, Generation X: Tales for an Accelerated Culture

++++++

Hard times AUTHOR Dougie would have lasted 10 seconds if he was my age in the High unemployment Recession 70’s and early 80’s working with his dirty, calloused hands at crappy low paying jobs …….
Denial is not just a river in Egypt.

It’s life.
Get over it.

#12 Millenial Matt on 08.09.17 at 5:57 pm

Gosh, I hope you’re right. It would be nice to afford a modest home before I produce spawn of my own.

#13 ANON on 08.09.17 at 5:59 pm

Whatever the future, one thing is certain: there will be no shortage of houses, and probably cars (and blame-game, by the looks of it). Whether the energy to heat the former and move the latter will be there when demand plunges, is opened to debate (well, not really, but let’s leave it at that with this picture of a cute mammal, often seen surfacing in these situations).

#14 Auzz on 08.09.17 at 6:08 pm

Gotta say, I had the urge to buy in Victoria starting in November last year. I figured, damn, I’m finished school, I’ve started a career in my field of choice. Time to step up and stop renting. I found this blog by chance but soon stopped reading as it wasn’t telling me what I wanted to hear – don’t buy. I looked at one place in Vic, 450k, 1000 sqft, yadda yadda. I was pre-approved for at least that much. Put an offer in but was beat out by someone else. Following that near death experience, I’ve since come to my senses and am now putting away a little over half of my bi-weekly take home (I work out of town so expenses are limited to my rent and sub $15 phone bill). Now, plans are to save, save, save. Occasional splurge maybe build up another mountain bike next year, or fix up an old truck to fill my semi-retirement phase during the winter when I’m laid off and drawing pogey

My only true desire is to have a dog of my own

#15 Dolce Vita on 08.09.17 at 6:09 pm

If BoC keeps hiking rates and Greenspan is correct about bond yields going up, by a lot, sometime soon…then lookout, RE prices are going to continue to drop since both variable and fixed mortgage rates will continue to increase.

Obstinate single asset strategy Boomers will pay the price as many workplaces have mandatory retirement…and that for the Boomer peak is just a few years away.

That’s when the Millennials may well have the last laugh, pick and choose from a large inventory of homes and at a price they can live with.

Crazy times. Uncertainty beyond anything I have experienced since the early ’80s.

Garth’s double edged sword:

Boomer’s sell now, Millennials wait them out. Great advice either way.

What a Blog this is, fantastic.

#16 FLHTK on 08.09.17 at 6:17 pm

I’m on the cusp of the millennial age group 34, I bought a house and she ain’t in Toronta but pretty close that means I’m in the 11% bracket…big deal, it’s still debt and a money pit and as Garth pointed out in the blog 2 days ago debt is debt!
Guess I’m just going to sit tight and watch that 11% shrink even further…as I ride the Harley of course.

#17 Debtslavecreator on 08.09.17 at 6:19 pm

Great piece Garth
I see this daily as most of my clients are retired public sector and related agencies and private retirees
It is not the person but the system I marvel at
Most of the wrinkles paid nothing for their houses, pensions, education, and will progressively chew up more and more of the budget for health care and oas and eventually subsidized retirement homes
This cohort also gets to split income and credits to lower their effective tax rate to well under 20% when they are contributing to major health care expenses and when quite a few retired in 55-60 area
The question is how does anyone fix this and get re-elected ?
This old and older generation also leaves us with the greatest government debt ever and it is a mathematical certainty that interest charges will consume more than half the tax dollars no later than the mid 2020’s or so
I would eliminate the OAS above 50k, eliminate all pension credits and income splitting and institute a health care tax on all assets upon death capped at 10%
Everyone’s income taxes for income under 75k could be cut to 0 or no more than 5% and all deductions and credits eliminated for all with the HST then raised slowly to 18-20% and all households with under 30k getting a payment to offset all HST paid
No perfect way as many will fight any tax reform
Too many hands in the jar and it will take an extremely serious crisis to enact major changes
And yes the proper corporate tax rate is 0
Tax all people at the individual level and base tax rates in all sources of income with no one paying more than 25-30 % income tax rate
The system is out of control and will end up bankrupt within 20 years on this path

#18 The real Kip on 08.09.17 at 6:25 pm

I like this blog so much more now that it’s back to basics blaming the Boomers for everything. And as me me? That’s right, it’s my fault! It’s all my fault! You’re welcome!

#19 Crazy Pills on 08.09.17 at 6:30 pm

Anecdotal evidence, i know. But an observation of late.

I’ve noticed a marked increase in classism from boomer’s lately. They way the look down at me scornfully, in an “i’m better than you” kind of way. It has happened to me several times just this year. I’ll be minding my own buisness and wham! lectured about how hard they worked to get where they are, and how much of a failure Gen Xers are, yada yada yada. All the while knowing nothing about my actual financial position, just judging me by my age alone, and assuming i’m another broke ass Gen Xer.

Maybe its just a coincidence, but i’ve noticed it happening more and more frequently as of late. I think the bloated house prices are getting to their heads.

#20 Bob Dog on 08.09.17 at 6:31 pm

The government of Canada has in effect waged war on the young over the last 15 years. I often wonder why the young don’t fight back. Use your social networking skills to form a union of sorts and organized a general strike. What would happen if ~15 million victims of the bank of Canada simply chose to stop paying rent and stop going to work all on the same day. The legal system could never handle the evictions. The economy would crash instantly. Nobody asked for class warfare. The young have every right to end it swiftly.

Demand a return to equality. Justin would be proud.

#21 Old Ron the Realtor on 08.09.17 at 6:34 pm

This is a bogus argument. If the kids today get into a house in the next few years, like we did in out mid to late 20s, it will be worth a fortune when you pay it off in 20 to 25 years. There is nothing age specific about managing your money.

Each generation has its unique challenges. You have Trump, we had Nixon. You have very high prices, we had 20% interest rates. It all balances out.

The key thing is that we, like our parents got into a house and paid it off. It wasn’t easy and sometimes it was nip and tuck at the end of the month. But when you reach the age of 55 and you haven’t re-mortgaged it,you will be as comfortable as the many Boomers are today.

I think most of todays younger people get that, but a few complainers need a whole lot more financial planning and a whole lot less HGTV. Live within your means and then get into housing in your own way, on your own terms, in your own time. You do that and trust me, at the end of the day you will be fine.

#22 nick on 08.09.17 at 6:43 pm

It really is astounding when you look at the housing stats based on age.

Cant wait for the 2016 census housing data to be out. Its going to be ugly.

#23 Guy in Calgary on 08.09.17 at 6:45 pm

“7 Are Millennials Stupid? on 08.09.17 at 5:50 pm
We all know Millennials are well educated and yet very stupid. Are they smart enough to wait boomers outs who are house rich but cash poor. You know that boomers would NEVER have paid these stupid prices. Boomers secretly laugh at millennials including realtors who can’t believe they can out smart educated millennials with their grade 10 education. Millennials are the reason for high housing prices because they are stupid.”

You saying you would not buy at these prices is like me saying I would not buy with mortgage rates at 20%. At the end of the day neither of us know what we would do if the roles were reversed so stop acting so smug.

I do not understand why people are blaming millenials and called us stupid when the post says we account for 11% of home ownership. People are buying but obviously, it ain’t us. I am 28 and a proud millennial.

#24 active on 08.09.17 at 6:45 pm

32 yr old mill here, NW $575K, no RE, no debt. lovin’ it. life is good. feel sorry for other mills just hangin on. actually, no, i dont feel sorry.

#25 Paul on 08.09.17 at 6:46 pm

Wow 50% of millennial’s still live at home!
Talk about an untapped supply of home buyers.

#26 Damifino on 08.09.17 at 6:46 pm

#2 And I Quote

A home you won in a genetic lottery, I might add, sheerly by dint of your having been born at the right time in history?
——————————

A quote from a novel written in 1991. Relevant.

I don’t recall getting notice about winning a home.

I do recall saving until I was 34 to get a down payment on a crappy little rancher while working at scuzzy jobs and paying rent to unpleasant people.

Then I recall a mortgage at about 10% for quite a few years. Then I recall selling and investing properly.

And if I’m not mistaken, I now rent again. Yep, just checked with my wife. We rent. Someone else is now assuming RE risk. But they’re more pleasant now.

#27 Prairieboy43 on 08.09.17 at 6:50 pm

If a Civil/World war arise. Boomers are going to front of the line.
PB43

#28 Crazy Pills on 08.09.17 at 6:51 pm

#21 Old Ron the Realtor

You might want to take off those blinders and look at some real numbers one day.

Do me a favour, and take the price you paid for your house and the year you bought it. Divide the price by the salary you made that year.

Now look up what the equivalent house today costs, and divide that by the equivalent salary for the same job.

And tell me those two ratios are the same!

#29 Banned Canadian Millenial on 08.09.17 at 6:52 pm

STILL BANNED

#30 Renter's Revenge! on 08.09.17 at 6:54 pm

#20 Bob Dog on 08.09.17 at 6:31 pm

“I often wonder why the young don’t fight back. Use your social networking skills to form a union of sorts and organized a general strike. What would happen if ~15 million victims of the bank of Canada simply chose to stop paying rent and stop going to work all on the same day.”

Wasn’t that what the Occupy movement was about?

What would be really funny is if all 15 million reached FIRE on the same day and left the Boomers holding the bag (no one to sell their houses to and unable to retire).

#31 Asterix1 on 08.09.17 at 6:54 pm

All these realtors posting on this blog are ridiculous! They bring zero analysis, no thought, exclude reality and economic fundamentals.

A few months ago, these same people were telling you to keep buying, prices will never go down, its up, up and up. No worries..

Prices are now down an average of:
-12% in Oakville
-16 in Brampton
-19% in Toronto
-26% in New Market
-31% in Richmond Hill
etc…

Yet, its just a “blip”, prices will go up in September they say (no analysis). You just said prices would never go down a few month ago.

Keep quiet and send out some resumes!

#32 dakkie on 08.09.17 at 6:55 pm

Canada Looking to Tax Small Business 93%?

http://investmentwatchblog.com/canada-looking-to-tax-small-business-93/

#33 Mike in Toronto on 08.09.17 at 6:57 pm

#9 LOL at Toronto Housing Crash!

“…as a Millennial who is living in one of the worst times in Canadian history.”

I hope you’re joking.

Boomers might have won the housing lottery, but you really need to get some perspective.

We’re in one of the longest, safest periods of prosperity in Canadian history.

#34 Vlad on 08.09.17 at 7:14 pm

I generally agree with Garth that this is a large miss by the Canadian government. By neglecting to balance priorities with the needs of younger generation, they have impacted future Canada with via lower birthrates and emigration. You can’t complain about “brain drain” when anyone with one sees that Canadian future isn’t all that promising.

#35 Lee on 08.09.17 at 7:15 pm

There you go people. No crash coming. Your waiting was pointless.

#36 Dissident on 08.09.17 at 7:22 pm

LOL:

– (The other 2% may be dead but have yet to realize it.)

– #5 Banned Canadian Millenial on 08.09.17 at 5:47 pm
STILL BANNED

…Last two posts have been great. I was waiting for the OSFI thingy (however you spell it) and nice analysis of the Boomers vs Millennials (including the Gen Xers). It really makes you see how difficult and awkward this huge gap has become, where Boomers (and let’s be honest, the Gen Xers too), have inflated the home prices, and now they’re trying to unload those inflated properties on some schmuck so they can have a fancy retirement. At some point, nobody is going to be biting. Will that be sooner than later? Who knows.

Just met an older Gen X couple this weekend and they sold their house in Newmarket for over a million, and then rented a very nice, large family house in a nearby neighborhood. Their two kids (24 and 26) still live with them. In their words, “We saw the market was doing well and we just decided to sell. We’re glad we did.” If only everyone had such deft timing and opportunity.

#37 Cowtown Deathwatch on 08.09.17 at 7:24 pm

Garth, any update to the Cowtown Deathwatch? I’ve been building my savings and looking to buy in Calgary for ~2 years now as I’ve managed to keep my job. The implosion has not come. Surely this is an interesting enough situation to warrant a post? How can rents implode (40%+) and unemployment skyrocket without much impact to the housing market between 2014 and today?

#38 Troll more subtly on 08.09.17 at 7:28 pm

#7 Are Millennials Stupid? on 08.09.17 at 5:50 pm

Seriously, you need to do better than that.

#39 Ben on 08.09.17 at 7:29 pm

Daily price index!

Is not possible to take the days sales data and compile a daily gta home price index? Has anyone ever sen this.

#40 down and out on 08.09.17 at 7:30 pm

Had this old Boomer scared until I found my pulse,feeble but still ticking ,now to sell and get out of Dodge (old boomer cowboy talk for a bad lawless place) .

#41 Newcomer on 08.09.17 at 7:30 pm

#21 Old Ron the Realtor on 08.09.17 at 6:34 pm

You have very high prices, we had 20% interest rates. It all balances out.

——————

Not even close. The percentage of income going to the mortgage in the first year might be similar, but uhe high interest-rates went with high inflation, which ate at the principal in real dollars. If you borrow a small sum while everyone’s income is increasing, it’s easy to pay off. If you borrow a large some while everyone’s income is stagnating, it’s hard to pay off. Five years in, most boomers owed a year’s income on their houses. Millenials buying now won’t be in that position for twenty years.

#42 Dissident on 08.09.17 at 7:31 pm

#7 Are Millennials Stupid? on 08.09.17 at 5:50 pm

Millennials are not stupid. They just want the same things as you did at their age. Difference is, you have it, and they don’t. Want to raise a family in a 900 sq ft apartment? (And that’s on the large size for an apartment). Neither do they. Not sure why that’s so hard to comprehend.

Why, I can even hear the neighbors’ baby squealing from next door, and their 900 sq ft unit has been on the market for over a month. Obviously the loft concept with no walls that meet the ceiling, save the bathrooms, is not an ideal place to live with an infant.

#43 Mike in Toronto on 08.09.17 at 7:35 pm

#21 Old Ron the Realtor

I’m in my 40’s. Housing has increased every year at more than 4x my aggressive savings… since I was in high school. maybe with the exception of 2008.

I bought a crappy pot-house on a major street in my 20’s and couldn’t deal with the noise. Now I can’t even afford that.

Tell you what? I’ll give you 500k for your house at 30% I’d take userous interest over insane prices any day.

#44 crowdedelevatorfartz on 08.09.17 at 7:36 pm

@#19 Crazy Horse Pills
“I’ve noticed a marked increase in classism from boomer’s lately. They way the look down at me scornfully, in an “i’m better than you” kind of way. It has happened to me several times just this year”
++++++

Ask your Doctor for a new prescription. The pills are making you paranoid.
Those looks arent scorn. Just disbelief.

#45 Dissident on 08.09.17 at 7:36 pm

#17 Debtslavecreator on 08.09.17 at 6:19 pm

C’mon dude, you’re making this Xennial kinda depressed. Yet another reason to shake the fist at the Boomers. Talk about sponging.

#46 jim on 08.09.17 at 7:36 pm

“The thing-in-the-basement situation is most acute, as you might surmise, where houses cost the most. For example, in the GTA a stunning 50% of Millennials under the age of 34 hang with their parents.”

Wait a minute, you can’t use Toronto as an example without controlling for other variables. Here, the most obvious is the large south asian population. In certain cultures it is normal for multi-generational families to share the same dwelling (which, incidentally, has some advantages).

Yes, high housing prices are definitely part of it, but watch out for other factors.

#47 jay#2 on 08.09.17 at 7:38 pm

What about immigration ,the government will just increase immigration until real estate starts selling again,they don’t care about Canadians.

#48 dosouth on 08.09.17 at 7:40 pm

Just tired of the GenXer’s (aka:Milli’s) and GenYer’s (aka: GencrYer’s) crying and whining about their “right” to “own” a home.

My parents both worked had a large family and it was not until the 1970’s when in their 50’s that they could afford a $16k little place with a $15k mortgage.

Earn it and stop looking for everyone else to blame. How about looking at your parents and what they had, they started somewhere or didn’t get anywhere.

You most certainly are not entitled to anything – unless you are a supporter of the politics of certain parties that tell you you are. Then again they probably were brought up in “your generation” ….

Get some fries with your “Wahhhburger..

#49 nick on 08.09.17 at 7:45 pm

When bringing up the impact of the aging demographics, a friend of mine actually said “Who cares about the boomers? The millennials are bigger and need houses, so they will buy them from the boomers!”.

Riiiiight. All the boomers have homes in the core areas of the GTA. What millennial is going to afford those homes, when they can barely afford shit places in the middle of nowhere like Milton/Bolton (no offense to the Mayor of Milton)?

Its ludicrous to think millennials can absorb those homes when housing is at the worst affordability levels ever. Even 150K incomes have trouble buying (plus it doesn’t make financial sense to do so even if you could).

#50 Dissident on 08.09.17 at 7:48 pm

Here’s some first-hand, fresh news from the trenches of the Millennial/Xennial job market – WAGE STAGNATION:

Thanks to a brief midlife crisis, I thought it was a good idea to ditch my boring, dead-end desk job and go back to school for a year. Well, that didn’t turn out as I expected.

But that means I get to report to y’all that 24-year-olds (your fave Millennial demographic) are being hired at starting salaries of $35,000.

That’s the SAME starting salary as 2007, when I got my first full-time office job. Now, its 2017. Given inflation rates, I am fairly sure that this starting salary should be higher than what it was 10 years ago. (Granted, its a media company, so their salaries are on the lower side, but still).

Its no wonder the younger generation can’t save for a down payment. Not without the bank of Mom and Dad…you know, those people who inflated the house prices in the first place.

#51 Freedom First on 08.09.17 at 7:49 pm

#7 Are Millennials Stupid?

#7. You do not understand the combination of nesting, hormones, the Herd, and money.

The Boomers were the same. this virus is world wide. Fact.
……………………………………………………………………..

Freedom First
Master of Freedomonics

#52 Chaddywack on 08.09.17 at 7:52 pm

$3M for a house that is nothing special in East Van….or as Garth says “Where the poor people live”

I can almost get a house on the westside for that price…..if I were in the market what is the appeal of this one?

Am I missing something obvious here?

https://www.realtor.ca/Residential/Single-Family/18411639/2735-OXFORD-STREET-Vancouver-British-Columbia-V5K1N5

#53 conan on 08.09.17 at 7:54 pm

Word coming out now that Trump’s Fire and Fury comment was completely unscripted. None of his advisers knew he was going to say that.

https://youtu.be/53VUs8dlUt4?t=4

#54 Happy Housing Crash Everyone! on 08.09.17 at 7:58 pm

Asterix1 on 08.09.17 at 6:54 pm
All these realtors posting on this blog are ridiculous! They bring zero analysis, no thought, exclude reality and economic fundamentals.

A few months ago, these same people were telling you to keep buying, prices will never go down, its up, up and up. No worries..

Prices are now down an average of:
-12% in Oakville
-16 in Brampton
-19% in Toronto
-26% in New Market
-31% in Richmond Hill
etc…

Yet, its just a “blip”, prices will go up in September they say (no analysis). You just said prices would never go down a few month ago.

Keep quiet and send out some resumes!

___________________________________________

This is why I HATE realtor shysters. They are uneducated high school drop outs who should be locked up in jail for financial crimes against Canadians. The government needs to regulate this shady industry. I have emailed from T2 to my local MP. I suggest some of you should spend some time complaining to those who can make changes. Together we can make sure they will financially suffer for the rest of their lives. Happy Housing Crash Everyone!

#55 nick on 08.09.17 at 7:58 pm

#21 Old Ron the Realtor on 08.09.17 at 6:34 pm
You have very high prices, we had 20% interest rates. It all balances out.

Not really. Housing affordability in the GTA is at an all-time low. That includes the days of high interest. Granted, in 1989/1990 housing affordability was also very low. However, we passed that level in June 2017.

If you’re unsure, run a few mortgage calculators and see :-)

#56 Freedom First on 08.09.17 at 8:17 pm

#20 Bob Dog

BD, you have yet to learn that the only time people stick together is when they are having sex.

A lot of Boomers had the same envy and anger when it was their elders who held all the a$$ets and money.
I was there. But I never cared what other Boomers said or thought. Thank God.

Heard Boomers spouting this same nonsense as you BD.

#57 Bonhomme Carnaval on 08.09.17 at 8:27 pm

@ #7 Are Millennials Stupid? on 08.09.17 at 5:50 pm

Dear sir, your arguments are repeated, and do not support your thesis statement.

Grade: F

@ #12 Millenial Matt on 08.09.17 at 5:57 pm

Umm, you don’t need to ‘own’ a house to reproduce. I believe that’s covered in Sex Ed. 101.

@ #14 Auzz on 08.09.17 at 6:08 pm

Brah, you’re my hero! DIY bike, pick-up truck make-over, and part-time silly-servant. Sweet!

@ #17 Debtslavecreator on 08.09.17 at 6:19 pm

+ special fee / tax on Viagra / Cialis.

@ #19 Crazy Pills on 08.09.17 at 6:30 pm

No, it’s the ‘crazy pills.’

@ #24 active on 08.09.17 at 6:45 pm

Don’t spit too high… Lady Life has a way of smacking that smirk of yer face.

#58 Tony on 08.09.17 at 8:28 pm

Re: #7 Are Millennials Stupid? on 08.09.17 at 5:50 pm

The strangest thing is it only pertains to the Canadian Millennials not the Millennials in the rest of the world. It seems only the Canadian Millennials are the stupid ones.

#59 Nonplused on 08.09.17 at 8:28 pm

Just wait until the millennials figure out what happened to them on the government debt side of things as well.

http://www.zerohedge.com/news/2017-07-01/horrific-catastrophic-court-ruling-send-illinois-financial-abyss

This is Illinois not Venezuela. Any government that continues to borrow money ends up here eventually and Canada will be no different. Unfortunately, there are limits to what you can tax (or earn) but no limits to what you can spend, if you aren’t smart enough to be able to connect the two, which most people aren’t. Especially not politicians. The quickest way to make sure you are an “ex-politician” is to run on a platform of balancing the budget. Nobody wants that.

So, not only did the boomers get to use up all the cheap oil, run up house prices, enjoy a robust economy with lots of jobs, etc, they also got to take the national, provincial (or state), and civic debt from manageable levels to their current unimaginable levels. Their plan is of course to be dead before anyone comes to their house with a bill, but should that happen right now, it’s about $17,800 per person just at the federal level, or if you have a stay at home wife and 2 kids you need to come up with $71,200 just for the federal. If you live in Ontario and have to include provincial debt your problem is far, far worse. You can more than double that number.

http://www.debtclock.ca/

I think it was the great (sic) economist Keynes who said, when asked about the long term affect of government deficits, “In the long run we are all dead.” Ya, but what about the kids? They won’t be dead for a while yet. Well, that’s where you pull out a French phase that roughly translates: “First me, then the deluge” (reference to Noah’s flood ending the world).

Sad fact is that when push comes to shove, most people are perfectly willing to eat their kids, and that’s what we are doing right now. Or at least if they won’t eat their own kids, they will eat the neighbor’s kids.

And it’s always been that way. Ever wonder why we send our 18 year olds to war and not our 40-50 year olds? Well first you have to be 18 to be stupid enough to think the army is a good career choice, a 40 year old won’t go even if they are in good shape. But it’s also because the generation in power always puts it’s burdens on the younger generation where they can.

Not all societies have always been like this. For example in the glory days of Rome if you owned land you were in the army and father and sons fought together. Which makes sense it’s your land you are defending and why have your son killed when you are near end of life and done breeding? Better you die so your son can live. But we don’t think like that anymore.

Today, we straddle our kids with unpayable student loans (or in Canada just add the money to the national debt which the kids will have to pay eventually) just so tenured professors can make $150,000 a year to teach English studies or music. “Basket weaving” we used to call it. Then we’ve made houses affordable, racked up unpayable government debt, and sent all the jobs to Asia. What are these kids going to do, as they work for $9 an hour at Starbucks, spend 50% of that on rent and they are sharing occupancy, and they just ignored another notice as to how far behind they are on their student loans? Of course they are angry.

One of Garth’s favorite topics of course is Harley’s, but Harley is in trouble and they know it. They’ve finally made a decent engine in the Milwaukee 8, sort of almost as good as what Japan was making 10 years ago but not quite, (the V-Rod was a good motor but nobody is buying it so it goes this year because it’s still not as good as what they can make in Japan for half the price). However Harley was never about the technology (actually that is not true, in the 40’s they had the best bike you could buy but then they never really changed it), it’s about brand. Here is their problem: The demographic that buys bikes is typically mostly men who don’t yet have a family or are through the child raising years. Or rich. Well, the young guys are increasingly buying smaller displacement bikes from offshore. They always have, but it’s a real problem for Harley now. Millennials simply cannot afford a Milwaukee 8, and they’d rather have a KLX 250. Although I have to say Harley did a pretty good job with the Milwaukee 8, but they ain’t going to sell 107 ci to anyone under 40 that isn’t in a gang. To little, too late. Most of the +40 crowd that wants and can afford a big bore already has one. “Market Saturation” is the term. And unfortunately bikes are not like cars, unless they get crashed they literally last the life of the owner.

#60 Joe Schmoe on 08.09.17 at 8:35 pm

I still get confused on the theme of this blog/comments some days.

Main theme: Balance of assets

Regardless of generation, keep your eyes on the prize.

My grandparents owned one car, my parents one.. and then two when the whiny kids turned 16, and then back to one. My wife and I own 4 (two are “toys”)….but the toys don’t require debt to service.

RE is the same.

No one is right, it was about what was deemed desireable/affordable

Investment for retirement and other “savings” (kids school, home renos, new car, whatever)

Spend the rest how you want, it doesn’t matter.

The issue is few get the investments before spending the rest…

People will argue how hard it is to save, but I doubt their arguments would uphold a brief audit.

#61 Higher form of life on 08.09.17 at 8:35 pm

Most higher forms of life look after their offspring.

30-year-olds are adults. When does it stop? — Garth

#62 -=jwk=- on 08.09.17 at 8:36 pm

@#19
and assuming i’m another broke ass Gen Xer….
Glass houses dude. Remind me who’s slagging the gen xer, the old guy or you?

#63 Ian on 08.09.17 at 8:44 pm

Anyone staying at home, saving, and refusing to take on absurd debt is simply smart. I did it myself for a long time.

Defintely frustrating for those millennials going through it now, but they will be very thankful they did. Also, once this donkey festival finally bottoms, they will have much better metrics to buy into if they so want.

#64 offsprings on 08.09.17 at 8:49 pm

#60 Higher form of life on 08.09.17 at 8:35 pm

Most higher forms of life look after their offspring.

30-year-olds are adults. When does it stop? — Garth

—–

It’s not a matter of age.

Assuming that the offspring is not a dog.

#65 Bob on 08.09.17 at 8:59 pm

Mom and Dad had no problems letting me move out when I was 20 years old…that was back in 1982. I certainly felt like an adult then although I was broke financially… But I never thought to lean on them for anything. Never occurred to me plus they would never have allowed it to happen.

This country and our society have really changed since then…where will it go from here?

#66 TurnerNation on 08.09.17 at 9:04 pm

Only a middle klass Kanadian has 750k-1mill of debt as a mortgage or Heloc. Nowhere else in the World!
At this level it’s unpayable-backable. An ultimate Sinking Fund to the bank.

Anybody buying a tiny pre-con kando priced
550-850k will face ruinous cash flow. Like slaughters to the Lamb.

Happy Cwash Wealtors.

#67 jess on 08.09.17 at 9:07 pm

189 Alistair McLaughlin on 08.09.17 at 1:42 pm

what kind sorcery is this?

Extract from
15: THE FINANCIERS AND THE NATION

by The Rt. Hon. Thomas Johnston, P.C., ex-Lord Privy Seal 1934; republished in 1994 by Ossian Publishers Ltd.

CHAPTER VI — USURY ON THE GREAT WAR
https://archive.sustecweb.co.uk/past/sustec12-6/extract_from_the_financiers_and.htm

Until July 2015, perhaps the oldest bonds still outstanding as a result of war were the British Consols, some of which were the result of the refinancing of incurring debts during the Napoleonic Wars, but these were redeemed following the passing of the Finance Act 2015.[1]
http://www.dmo.gov.uk/index.aspx?page=gilts/about_gilts

UK bonds that financed first world war to be redeemed 100 years later

Treasury’s redemption scheme stretches all the way back to Napoleonic and Crimean wars and Irish potato famine
https://www.theguardian.com/business/2014/oct/31/uk-first-world-war-bonds-redeemed

..”The bonds were sold to private investors in 1917 with the advertisement: “If you cannot fight, you can help your country by investing all you can in 5 per cent Exchequer Bonds … Unlike the soldier, the investor runs no risk.”

itty bits of dx?
The bonds are known as perpetuals because they have no redemption date.
https://www.theguardian.com/business/2014/oct/31/uk-first-world-war-bonds-redeemed
==================================
http://edu.bankofengland.co.uk/knowledgebank/why-are-retail-banks-being-ring-fenced-and-how-will-this-affect-me/

Separating retail banking services is just one aspect of reforms to make the system safer.

Looking ahead, banks may still get into financial difficulties – it is impossible to eliminate all risks entirely – but it is now easier to sort out banks that get into trouble. And, crucially, the costs of dealing with a bank that goes bust will not fall on taxpayers.
http://edu.bankofengland.co.uk/knowledgebank/can-you-stop-a-bank-from-going-bust/

#68 the ryguy on 08.09.17 at 9:07 pm

Yup..nailed it one the head.

Im 34, only debt is my vehicle (yeah yeah whatever), 150k/year and in no hurry whatsoever to fund a boomers retirement by getting a dilapidated shack.

#69 jess on 08.09.17 at 9:09 pm

Canada’s Catalyst, one of North America’s largest distressed investors, under scrutiny in wake of whistleblower complaints

https://twitter.com/jacquiemcnish/status/895372438774665217

#70 People watching people on 08.09.17 at 9:10 pm

2 more viewing requests for my condo with a view that I rent and is for sale. One cancellation, the other a young moister with a Bank of Mom escort, South Asian decent. So, about 22 viewings, 6 cancelled/no show. Of those that showed up in the last 5 weeks, vast majority have been Moisters of European decent, with only 4 visits from Asians (South or otherwise). Not too hopeful for a HAM rescue.

As an addendum to Garth’s words (praise to the Garth), BIS has recently published a provocative working paper that suggests, amongst other things, aging causes inflation (BIS working paper 656). http://www.bis.org/publ/work656.pdf

If the brains behind the paper are correct, there be some massive inflation coming.

Oh and one last bit, housing starts rise when the SHTF. Why? Builder spent lots of time and money buying and preparing a build site (doesn’t happen overnight) and then sold the houses. Builder wants to get paid before it gets bad enough that builders miss the payment at the end. Once the ball is in motion, you have to put up a sawdust shack or risk losing money. Builders want their happy ending.

2 cases in point: acquaintance works for a medium/large developer in the back office. All new projects shelved and no new land purchases. Current projects full steam ahead and then they will be shuttering the company for good in 12-18 months or so. A friend trying to be a micro developer has land and has put off trying to build indefinitely. Resigned to servicing the land until the next generation will try to build on it.

#71 Suede on 08.09.17 at 9:12 pm

Being a homeowner is awesome.

Friends and family respect us again.

We rented a house worth 1.7M for 2500/mo. Pure genius. But people thought we were Losers.

I cut my own grads again and have to unclog my own toilets.

But dammit, people respect me now when they come over.

One day, owning won’t be cool. Prices will correct accordingly. Probably sometime during Trudeau’s second term. His theme song should be the Everything is Awesome song from the Lego movie.

What a thief.

Ugh

-11%er

#72 april on 08.09.17 at 9:23 pm

According to Ross Kay what is happening in Toronto will impact all of Canada.

#73 MF on 08.09.17 at 9:29 pm

#7 Are Millennials Stupid? on 08.09.17 at 5:50 pm

Trolololol?

The millennials that purchased houses did so with boomer equity “gifted” to them.

Look in the mirror?

MF

#74 Long Branch Apprentice on 08.09.17 at 9:32 pm

#58 Nonplused

That’s one of the better comments I’ve read on here in a while. My generation was willingly sacrificed on the alter of short sightedness. To add insult to injury, anyone who complains is branded a whiny snowflake. Ah well, just gotta be smarter than the competition, same game as always.

I ride an SV650, great bike. Harley’s are definitely a Boomer brand for pensioners who want to give off the persona of a rebel.

Doesn’t matter what you ride, what matters is that you do.

#75 Habbit on 08.09.17 at 9:32 pm

Hi all. Please everyone chill out. I am a boomer and love my millennial kids. Lots of their grandparents stopped fascism for a time and they paid with their blood. So before we go on bashing each other think of what really is important. That’s right our families rich or poor. Parents usually want the best for their kids. My beautiful wife and I have helped our kids as much as we could and now think how can we leave them something as we have modest assets but feel very fortunate to live in this great country. I’ve often told friends with some$ to give to the younger folk now when they could make better use of it.We need to be together and help each other. None of us are entitled. Do your best for your family. If there is any cash left give to so many less fortunate than we are.

#76 Pete from St. Cesaire on 08.09.17 at 9:36 pm

You saying you would not buy at these prices is like me saying I would not buy with mortgage rates at 20%. At the end of the day neither of us know what we would do if the roles were reversed so stop acting so smug.
———————————————————–
I knew when I was 13 that I’d never buy a house unless somehow I became filthy rich. A house isn’t worth it.
I predicted the future back then.
I told my parents that the savers will be punished.
I told them that the majority will retire with nothing, yet they will be ‘bailed-out’ by those who saved.
I told then that houses weren’t worth it.
I told them that too many people were attending university and it no longer meant anything.
I told them that there would be very few good jobs.
I told them that the economy was done for. (The 0% interest rates since 9-11 are the only reason the whole thing didn’t go down in 2002.)
I told them that the only way to preserve wealth is to physically hide it (precious metals, et al), certainly not RRSP’s and the like where the socialists will get it.
I told them that they should spend their time wisely since it’s the only money they truly have. The only way to win in the end is to have lived a life where you have had all the years of your life to do what you wanted, enjoy family and friends, follow your passions, and find contentment within the precious joy of living.

So, whoever says that we wouldn’t know what we would do in the future………. I did.

#77 acdel on 08.09.17 at 9:38 pm

I am a Gen-Xer so piss off; you think that it was easier for us then ##&&@@ off.

Anyways on a lighter note; one has to admit that this is pretty funny!

http://www.dailymail.co.uk/news/article-4776722/Trump-like-inflatable-chicken-stares-White-House.html

#78 AB Boxster on 08.09.17 at 9:39 pm

Millennials have it tougher in many ways but they are also clueless when it comes to money.

Today it seems that there is no such thing as a want.
Everything is a need.

Need to own the newest smartphone at $80 a month with the data plan.
Need to have subscription to spotify, Netflix, best internet plan- another $100 a month.
Need to have a Starbucks or timmies 3 times a week-$35 a month.
Need to eat out at least twice a week – $120 a month.
Need to have a gym membership – $40 a month.
Need to see a movie every couple of weeks – $50 a month

Total for these ‘needs’ so far: $425 a month

Growing up boomers never had these items.
TV was free.
Who needed a cell phone?
Eating out was rare.
Coffee was something you made yourself.
You listened to a cool device called a radio for music and recorded your own tapes.
Movies were cheap.

Somehow we survived,without all the crap that is a need today.

Oh, and invest that $425 a month ($5100) a year at 5% for 20 years, and have $150,000 in savings after 20 years.

Or, perhaps just continue to complain about how the boomers have screwed you over, and how difficult it is to survive today.

#79 Mark on 08.09.17 at 9:42 pm

“How can rents implode (40%+) and unemployment skyrocket without much impact to the housing market between 2014 and today?”

Get a better Realtor. Calgary pricing is down ~30% from the 2011 peak.

#80 Ben on 08.09.17 at 9:57 pm

Love it when the boomers trot out the high rate stuff. Innumerate lot. Step into the crosshairs gramps, it’s time.

#81 Pete from St. Cesaire on 08.09.17 at 9:57 pm

It’s happening as I predicted. Yesterday I was talking with distant relatives (early 30’s) from Orillia. RE came up and they told me that although many of the people they know have bought houses, they themselves weren’t going to and neither were many of their friends. Their reasoning is astounding. She said that we all have a responsibility to fight climate change and even more so now that Trump has left the Paris accord. Encouraging developpers to build houses is wrong. It adds to our carbon footprint. We must learn to live with the earth.

Now, I don’t have much use for these cousins of mine, but consider the ramifications of such a mindset taking hold. Suddenly the PC thing to do is to NOT own a house.

#82 TurnerNation on 08.09.17 at 9:58 pm

Yup yup a passage apparently from Carl Sagan’s 1995 book. I have seen the enemy; it is us.

https://i.imgtc.com/RU1UHPm.jpg

Just buya da house.

#83 Rargary on 08.09.17 at 10:12 pm

When will you write about Calgary and Kelowna?

When they matter. — Garth

#84 Smoking Man on 08.09.17 at 10:13 pm

Biggest story of the year James Damore.

No one knows about it. Earth shaking. The femanizs in an all out panic. Teacher Feminized little boys desover they have nuts.

Divirsaty and Inclusion the real agenda brought to light.

Nobel prize for james. Oh damn that’s a gobalist trophy.

Sorry James. No soup for you. Sue the bastards hard.

#85 Waiting in Kelowna on 08.09.17 at 10:15 pm

Waiting patiently for pricing to go down in Kelowna but I think it’s different here… when will it happen…. when?

#86 crowdedelevatorfartz on 08.09.17 at 10:17 pm

@#60 Higher Form of Life
“Most higher forms of life look after their offspring.’
++++++
Humans are a “higher form of life”? Have you watched tv lately?

99.99 % of ALL life eventually sents its offspring packing….so they can make more. Survival of the species and all that.
Only humans let their brood return to the clutch time and time again.
Time for tough luv? Take away their Iphones and cancel their contracts!
The horror.

#87 AB Boxster on 08.09.17 at 10:25 pm

#83 Smoking Man on 08.09.17 at 10:13 pm


Biggest story of the year James Damore.

—————————————————
James Damore was interviewed by Jordan Peterson.

One could feel the disruption in the dark side as a million SJW heads began to implode.

#88 SquareNinja on 08.09.17 at 10:28 pm

“Owning” a home is such an outdated mode of thinking, anyway. It’s for old people who like to cut their grass and mow their lawn after their hour-long commute home from their soul-crushing office job. Millenials may want to own a home, but Gen Z does not and will not want to.

#89 crowdedelevatorfartz on 08.09.17 at 10:43 pm

@#58 Nonplused
Some excellent points.
I was helping a GenX’er last weekend build a fence at his rental apartment( he got a break on the rent for the month).
He’s self employed, as is his Millenial wife.
I asked them if they were able to put money away for retirement………crickets.
But his absolute FURY directed towards garanteed pensioned workers of federal, provincial and municipal govts was frightening.
“Our govts are all running deficits, 25% of all workers are employed by govt, these people stymie my company at every turn’, on and on and on.
There are a lot of very angry people out there and it runs through ALL generational levels.
Govt leaders better get their s#it together or this ponzi scheme of deficit budgets is gonna blow……big time. I always respected Paul Martin for balancing the budget ….unfortunately that fiscal ethic escapes todays voter….young or old.
Financial Armageddon before North Korea starts lobbing nukes at Guam…
And it will start with retired govt employee pension plans that need taxes to be raised again and again and again to pay for it all……

#90 Hugo on 08.09.17 at 10:47 pm

Why are people still so obsessed with buying real estate? Rent, travel, move around, enjoy life instead of shovelling your small driveways for your houses which look identical to everyone else’s on your street.

Embrace individuality. Don’t spend your weekends at Home Depot or Lowes (lol).

#91 Sold out in Vancouver on 08.09.17 at 10:47 pm

#84 Waiting in Kelowna

Check the Residential average price Okanagan Mainline graph (5th one down on the left ) Link below:
You’ll notice that prices always drop up there in the fall, Dec and Jan best time to buy. Every year, same percentage drop. Yes prices have gone up, but wait until the fall… (season) don’t buy what the realtors are saying. They don’t always have your best interest in mind.
http://creastats.crea.ca/okan/

#92 Mattl on 08.09.17 at 10:50 pm

Wait, you mean millenials with 100k family income are driving the market, buying 1mm homes? Anyone that believed that meme was wildly out of touch with the RE market.

#93 Baloons n Bubbles on 08.09.17 at 11:03 pm

I wanted to share the cute linked image of affordable downtown GTA housing with Y’All.

#94 MF on 08.09.17 at 11:09 pm

Great post tonight. I would add that we millennials are, on average, more distrusting of large institutions than older cohorts.

For an example, I think the CMHC should be abolished and the BoC is completely inept.

#58 Nonplused on 08.09.17 at 8:28 pm

A great comment. Thank you for that.

#57 Tony on 08.09.17 at 8:28 pm

Lol just lol at this comment.

I am starting to think you don’t know any millennials at all or have never met one. Honestly.

MF

#95 MF on 08.09.17 at 11:12 pm

#88 crowdedelevatorfartz on 08.09.17 at 10:43 pm

Tell him to go move to Mogadishu. There are much fewer government workers there so he will be happy for sure.

MF

#96 Do not understand Millenial logic on 08.09.17 at 11:12 pm

Talking to a millenial who is looking to buy a townhome in Richmond Hill with her boyfriend soon. She owns a condo, he owns a house. They are planning to rent out both rather than selling.
All I can think about this situation is 1) Lose 2) Lose and 3) Lose
Did anyone say Millenials are smart?

#97 M-cube on 08.09.17 at 11:14 pm

I just don’t see any viable scenario where a 500sq.ft condo in Toronto will be worth less in 5 years? I’m not talking about areas outside of Toronto.

So long a foreign investors or new citizens under the investor-class immigration program purchase upwards of 75% of all available new build units, I don’t see any downward pressure on prices.

I moister buying a 500sq.ft condo today may not get 10% price appreciation every year, but they can reasonably anticipate 4%+ increase each year which is still amazing considering they are earning money on money borrowed at around 2.5-3%

#98 waiting on the westcoast on 08.09.17 at 11:22 pm

30-year-olds are adults. When does it stop? — Garth

~~~~~~~~~~~~~~

In Italy, it never stops! Thank God I’m Italo-Canadian… ;-)

http://www.independent.co.uk/news/world/europe/rise-of-the-mammone-two-thirds-of-young-italian-adults-live-at-home-with-their-parents-10034641.html

#99 Danny on 08.09.17 at 11:25 pm

Garth your blog just keep getting better.
Great insight in a sociological perspective.
Yes boomers are definitely along with low interest factors in unprecedented skyrocketing real estate costs.

In Orangeville…my two young neighbors…both teachers could not find teaching jobs….while teachers work beyond 65…and those that retire come back as supply teachers.
Time for us boomers to give the younger ones a chance.

Also those boomers in Etobicoke with ranch bungalows built in the 50s….who sold last year from 2 to 2.5 million….put in high bids for senior type Condos in Etobicoke….driving up those condo prices higher like never before. …the suburbanite privileged becoming richer because of real estate….Very happy real estate Cartel members in Etobicoke last year.

#100 MF on 08.09.17 at 11:27 pm

#77 AB Boxster on 08.09.17 at 9:39 pm

I like your posts, but I take issue with this one. We are actually a lot more money savvy than your post makes it seem.

We often find creative ways to save money. Technology is also allowing for some past expenses to now be obsolete.

1) people who have netflix do not have cable. Cable $110/month, netflix is around $10.
2) I used to buy tapes and CD’s in the 90’s for 20 bucks each. Most songs are now free on the internet or can be bought for $1.25 on iTunes
3) Almost everyone I know has a side job to make up for the part time contract “real job” in an office that pays 35k/year. Boomers had it better in this regard (often 1 career for life).

“Oh, and invest that $425 a month ($5100) a year at 5% for 20 years, and have $150,000 in savings after 20 years.”

You are right, of course. But we have seen some houses appreciate that much in 6 months. It often seems hopeless and unattainable so we would rather enjoy an experience (like eating out with friends).

By the way, I would spend 120$/month on my gym membership if I had to. It’s a non negotiable in my books. I would cut everything else before that.

MF

#101 When the Whip Comes Down on 08.09.17 at 11:34 pm

#28 crazy pills/#23 Old Ron
I agree crazy pills – further to your comments, old Ron, tell me what your cohort was getting annually in the form of wage growth when your interest rates were 20 percent. Yah what I thought….a heck of a lot more than what people are getting annually today, so wage gains were also in your favour. Wurd!

#102 Smartalox on 08.09.17 at 11:46 pm

Here’s the solution to the problem:

Millennials swap housing with the boomers.

Forget the numbers, just trade, straight across.

The boomers get manageable spaces, close to amenities, the Millenials get the real estate status that they covet.

You’re welcome

#103 Nonplused on 08.09.17 at 11:47 pm

#73 Long Branch Apprentice

I don’t mean to dis Harley riders. It’s a great brand with a steeped history and there is more to a motorcycle than air-cooling and overhead cams, and that “more” is the part Harley always got right. There isn’t much cooler than Harley culture.

I also don’t mean to dis either boomers or the millennial “snow flakes”. I’m gen X so I’ve seen both sides. And I don’t know what the solution is. Obviously the boomers cannot and never could pay off the debt (which is why they ran it up) but the millennials can’t either and don’t look to gen-X because we are barely scraping by after we make our payment on the house and the Harley.

#104 Nonplused on 08.09.17 at 11:58 pm

#88 crowdedelevatorfartz

Unfortunately, we are all guilty of what has happened (except maybe the millennials). We all in our own way voted for goodies from the government that someone else was supposed to pay for, and then those other people in turn voted for goodies we were supposed to pay for, and then in the end of the day none of us could pay for any of it, so they ran up the debt.

It doesn’t matter whether you voted for tax cuts or a rise in the minimum wage or got yourself a government pension, you were voting for goodies some other person was supposed to pay for and now it is apparent it was one big circle-jerk.

#105 Ponzius Pilatus on 08.10.17 at 12:12 am

My son had some issues with his High School French teacher.
I asked him why do you bother with French anyway.
Unless you wanna work for the Government.
I told him to switch to Mandarin, the language of the future.
Turns out I was right.
According to the census, Mandarin is spoken by more families than French.
Right behind English.
Teach your children well.

#106 Nonplused on 08.10.17 at 12:13 am

#93 MF

“#58 Nonplused on 08.09.17 at 8:28 pm

A great comment. Thank you for that.”

Thanks. I love commenting on Garth’s blog because he and Ryan and Doug always bring up the best material and it gets me thinking, plus many of the respondents are of similar mind so Garth has assembled a bit of a “think tank”. Not very many of us agree with each other on everything or even with Garth on everything but the community is at least all able to understand the subject, which these days I find to be a rare thing.

And of course I love a little positive feedback as well. Just go up to a Harley rider some time and tell him what a nice bike he has, specifically comment on what you can tell are the customizations, and you can see how it works. It’s just a bike, after all, but how we make them ours is how we make ourselves special. I suppose tattoos are no different but I’d far rather spend my money on a Harley. At least you can ride that or sell it in a pinch. Never heard of anyone selling a tattoo. Still I am staying with my paid for V-star, although I quite like the Milwaukee 8.

Anyway I digress thanks for liking my comment.

#107 lol on 08.10.17 at 12:23 am

Buy ? They CANT . Too expensive . They are priced out . Homes prices and salaries have diverged ,

And if anyone thinks that a ‘crash ‘ will lead to $265,000- $400,000 in the greater Toronto area ? NO

Rent for life or move This is the new normal

#108 DON on 08.10.17 at 12:33 am

Repost: Must have sat in the forest fire smoke too long too many spelling mistakes.

#97 DON on 08.09.17 at 11:54 pm

Come on blog dogs!

Garth planted some mines and some of you happily walked into the field. This happens every once in a while on this blog.

Idiocy transcends all generations. Don’t pick an us vs. them side based on age.

Shake hands and move on! Where’s Happy Housing Crash to give you some perspective.

Garth must have a special post coming soon. End of September? Keeping the troops entertained. Nice!

#109 Newcomer on 08.10.17 at 12:46 am

#96 M-cube on 08.09.17 at 11:14 pm
So long a foreign investors or new citizens under the investor-class immigration program purchase upwards of 75% of all available new build units, I don’t see any downward pressure on prices.
————

When that happens, send us a link.

#110 crowdedelevatorfartz on 08.10.17 at 1:09 am

@#94 MF
“Tell him to go move to Mogadishu. There are much fewer government workers there so he will be happy for sure.”
******

Give it a decade.
With the tax money baby Trudeau is burning through…..
We’ll look like Mogadishu.

LGBTQQ+ washrooms for everyone!

#111 Dave on 08.10.17 at 1:38 am

Hopefully most boomers don’t get a windfall from their homes, they don’t deserve it. Lottery wins are meant to be spotty, not payout for an entire generation.

Millennials need to band together and reduce spending while demanding higher wages. If you keep spending on crap, the economy controls you and you make China richer. If you limit your spending you can control the economy and weaken the Chinese economy, and have an impact on the markets.

#112 The Dude on 08.10.17 at 2:01 am

#25 Paul

Exactly.

#113 The Dude on 08.10.17 at 2:26 am

#77 AB Boxster
“Oh, and invest that $425 a month ($5100) a year at 5% for 20 years, and have $150,000 in savings after 20 years.”
——
Wow $150,000 in 20 years! Amazing (face in palms). Seems like you need to revisit this classic video. Although the numbers are a bit outdated (on the low side now).

https://www.youtube.com/watch?v=wcAMtvNfp78

#114 Rent & Live on 08.10.17 at 2:31 am

The charts reinforce my beliefs – lots of people are fooling themselves thinking they own but really just owe. No thanks I will keep renting.

#115 Squish on 08.10.17 at 2:34 am

#7 Are Millennials Stupid?

You seem nice.

#116 Dolce Vita on 08.10.17 at 3:39 am

One heck of a murky crystal ball for RE but if you look at Boomer finances, the murkiness disappears somewhat with the reality of retirement finances.

Most Boomer’s do not have an additional pension other than CPP & OAS (50% of Canadian couples between 55 and 64 have no employer pension between them, 50% have only enough savings to last for one year).

-Feb. 2016 Broadbent Institute, (Globe & Mail link below).

If rates continue to go up and RE prices continue to correct, HELOC amounts diminish and their cost increases – so that door gets slammed shut to 50% of the Boomers, again 50% of them cannot last 1 year on their savings alone.

Borrowing or credit card kiting out of the question with current debt loads.

50% of Boomers wanting a financially comfortable retirement may well have to sell their homes to have this.

That means Boomer homes flooding the RE market in the next 1 to 10 years IF the 55 to 64 year old’s seek a comfortable retirement lifestyle. Many workplaces have mandatory retirement at 65 years of age. Even if these Boomers continue to work, unlikely they will be rehired at full time permanent employee benefits.

To add insult to accident, you need only look at how many people by age in the < $44,701 tax bracket in 2015 (CRA link below). This tells you that many have only a single asset strategy, their home.

RE prices are still very high in YVR and 416, 33% of 50% of Millennials are still living at home and seem reluctant to saddle themselves with high debt from a mortgage (I do not blame them).

This cannot end well for RE prices across Canada over the next 10 years or so if 50% of the Boomers are forced to sell to maintain retirement lifestyle.

No conjecture here, just the reality of 50% of Canadian Boomer retirement finances and their current tax bracket levels.

https://www.theglobeandmail.com/globe-investor/retirement/retire-planning/many-canadians-entering-retirement-with-inadequate-savings-study-says/article28761394/

https://www.canada.ca/content/dam/cra-arc/migration/cra-arc/gncy/stts/itstb-sipti/2015/tbl4o-eng.pdf

#117 Reality 1 on 08.10.17 at 5:05 am

to comment # 96 M cube

I see why Toronto condo prices could be lower.

for starters :

1) It’s called depreciation.
This takes the form of higher maintenance fees as the building ages (and modern built crap actually ‘falls apart’ much faster than 40 year old builds). Also “special assessments” don’t make your building better – they are costs generally to MAINTAIN or RESTORE the building to its original parameters. It taints the building as any thinking potential would wonder if the building is in decline and when the next “special assessment” will hit.

2) Competitive depreciation.
When prices plateau or drop, why would your multiyear old unit (with higher condo / strata fees) be worth more than a brand new build with low initial condo / strata fees. Your condo would be of ‘depreciated’ value by comparison.

3) Oversupplied market depreciation.
This can occur by the overbuilding of condos , especially in close proximity to yours ! The densification itself makes your multiyear old condo a different proposition than when you bought it – it is now less desirable as more crowded area now.

Foreign money comes when it sees opportunity – regulations like the recently dropped 16 point housing plan in Ontario give investor buyers pause as they seem to happen hastily – what comes next they wonder ?

Your numbers on the foreign resident investor buyers are way off anything reported by reputable sources.

Besides, do you think Toronto is / will be the only destination or available choice for international RE investors?
Especially when the government is rapidly changing regulations and likely to restrict usage. (16 point plan for example)

Where do you get this regular 4 % appreciation number from?
And do you really think the mortgage will be at 2.5 to 3 % – its already higher than that for many people and, proportionately , rates are rising fast.

I suspect that you own a central Toronto condo and are either hoping and wishing or are sobering up from your real estate kool-aid binge.

I genuinely hope not for your sake.

#118 Reality 1 on 08.10.17 at 6:04 am

to # 58 Nonplused

Good rant.

You are correct about Harley market ‘saturation’.

I have had 2, driven others, so I have had “the experience” of Harley ownership.
No thanks.

Sold them 15 to 20 years ago because I thought they were goofy and frankly, embarrassingly badly built.

These tattooed middle aged squids that put on a Harley t-shirt and a pair of leather chaps and delusionally transform into ‘tuff guys on Harleys’ like Clark Kent to Superman in a phone booth.
Just silly and sad – poseurs !

Allover Europe, especially Italy and Spain I see Honda 750fours from the mid / late 1970’s still in regular use – original motors (some rebuilt) and electrics.

I talk to a few riders if I see them near their bikes and every one is proud to own theirs.
They feel those motorbikes changed motorcycling forever – made it affordable, convenient and thrilling while being so dependable.
They get the true “Zen” of riding. (and in one heck of a pretty context)

I drove a Kawasaki KZ 1000 / Z1R (first 1/4 fairing in production, extended swing arms ) as my very first street bike, now long gone and I’m wistful from time to time.

Great time of life, maybe the best era mankind has ever known for an average testosterone filled young man!

KZ 750 H2, KZ 750 Turbo, GPz 1100 DFI, 650 Katana – all great, if scary, bikes of the 1980’s and 90’s.

#119 Dan.t on 08.10.17 at 6:42 am

#84 Waiting in Kelowna on 08.09.17 at 10:15 pm
Waiting patiently for pricing to go down in Kelowna but I think it’s different here… when will it happen…. when?
———————-

When money cost something and Canadians don’t have access to boat loads of money at 2% and can speculate by hoarding all supply to flip of rent out. Housing is a commodity.

The banks and gov policies made this mess- give everyone, even those with no money access to 95%-100% leveraged free money all at the same time… give incentives to buy 1 asset class that is limited in supply…

you inflate demand 1000x and supply stays limited there you go. Bubble of mass proportions.. if gov didn’t intervene in 2015 by dropping rate again, whatever they knew what would happen by keeping rates artificially low for 8 years.

So until speculation stops in okanagan, or people out right refuse to pay some speculator that bought a condo 13 months ago an extra 100k or the speculator who bought 10 kelowna properties and extra 100-200k profit because he held a property for 2 years then will keep going on.

I’m all for boycotting. Just don’t buy or participate but Canadians can’t do that… can’t be poor renter and Canadians have turned into the most house horny people on the planet.

How many speculators are not declaring rental income? How many Canadians own multiple houses, condos , etc?

I like the comment about all renters stop paying, crash overnight since so many over leveraged speculators would go bankrupt very fast or try to sell asap.

Until no one wants to buy overpriced house, or they no longer can simply afford without bank of mom dropping 150k for the down then u need to wait for sentiment and Canadians mentality to change or until credit is restricted and that seems to be on the way. Don’t worry the gov has it all under control… ask how that worked out in YVR or GTA.

#120 Here's The Deal on 08.10.17 at 6:50 am

#61 Higher for of life

“Most higher forms of life look after their offspring.”

RESPONSE: 30-year-olds are adults. When does it stop?
— Garth
—————————————————————-

HERE’S THE DEAL:

If possible, it never stops.

That’s what keeps the rich getting richer. The wealth continuously passes down from one generation to the next, and builds along the way.

Offspring are offspring. Age is irrelevant. 10 years old, 20 years old, 30 years old, 40 years old, 50 years old – if the parents have dough, and the “kids” need and/or want it, the folks keep dishing it out.

The final transfer of the assets occurs at death.

Then the cycle continues.

So, you see, it never stops.

Perpetual dependence. Is that the goal? — Garth

#121 Dan.t on 08.10.17 at 6:54 am

Also seems everything gets pushed out from van… forgot to add that we should forget about Canada being for sale to oversea buyers… sure that doesn’t add fuel to the fire.

Many new condos are already sold overseas in Richmond for example it was documented …. so no the world wants Canadian real estate as well… isn’t that nice. Sucks if are in your 20s and want a good life in a major city. Oh right, suck it up or move to rural Manitoba- boomer advice.

#122 The Very Best of Times -Reality 1 on 08.10.17 at 8:01 am

Us younger (late?)Canadian Boomers had absolutely the BEST OF TIMES, hands down !
(age context: High school age in the mid 1970’s , almost six decades gone by now)

We were born into an incredibly serendipitous time – at the confluence of many beneficial trends – societal, cultural, financial, technological, musical, sexual, social mobility, diversity awareness, etc. – and the abundant opportunities that accompanied them.

All fueled by a shy wonderment, awakening, awareness, and profound optimism as we rode securely on the sturdy ‘shoulders of giants’ of the “Greatest Generation” and their industrious forebears.

We had it made like NO generation before or after.
But, we did lay about revelling in our abundance – we took the baton and ran -not walked – into the future while dragging the entire globe to a better place in the process.

We could reasonably expect a good, if not great, life and to have more than our parents and to start to indulge in an affordable smorgesboard of hedonistic pursuits and pleasures.
We worked on that.

We got to break the rules and help rewrite them in the context of our realities (and at times, favour).
Were we unfair at times in our new rulebook ? Occasionally, but we went back and corrected much of it as needed.

We tried to make it FAIR for all and enshrined this effort in groundbreaking new legislation.
We didn’t just talk about it in partisan endless inquiries.

We walked the walk, didn’t just talk the talk and we dealt with the consequences of our decisions – and our mistakes.
We got things done.

To the greatest extent possible in human history, we were free (or certainly felt like it).
In retrospect, a magical time for those who embraced the life on offer.

And we had BIG fun, unencumbered by Political Correctness, ‘social justice’ overload and the ‘nanny state’ of today.

Were we irresponsible, narcissistic and self centered sometimes ?
Absolutely ! – But it didn’t become our ‘lifestyle’ or our raison d’etre nor our escape from reality.
We did not live in delusion nor fantasy nor did we attempt to replace facts with ‘feelings’.

Flawed as we were, we were pragmatically authentic !

Men, women, gays, straight, boy, girl – we knew who we were and deep down inside, we were cool with it.

But we always knew what REASONABLE meant.

We knew what civil society was and what it took to keep it and nurture it. We began to embrace diversity and shun racism and bigotry, but we didn’t lose our reasonable perspective.
We fought discrimination against the minority, but did not exalt nor promote them to the disadvantage of the majority.
We had a quirky sense of what was right and wrong and we punished those who we caught defiling our sense of civilization most harshly.

But we (and our taxes) still built the hospitals, schools, universities, etc. and PRIORITZED the common good, the standard of living and its improvement at many levels.

We cared.
We cared about the world enough to organize, protest, regulate, raise money for charity and foreign aid and causes , created private bodies of inquiry and constantly drove for change where needed. And we succeeded, not always, wildly.

We polished that monolithic rock of civilization into a multifaceted jewelled fortress , creating a hospitable bedrock for all to find their own perch (with a little work) and to feather our own nests in the way we saw fit while not fouling others’.

We weren’t perfect, no doubt, but we were the “transition team” that pushed that societal envelope in many ways to deliver advances that Millennials and all future generations do / will take for granted.
We didn’t live on Facebook.

This is not a “dis” to any generation, but a challenge to Millennials and everyone that comes after them to ‘up your game’ and strive for the world and life you want while you are still young and resilient enough to do so.

If you read this, then I thank you for your indulgence as this late Boomer vents his spleen.

Thank you Garth and blog devotees for allowing free expression here.

It is a privilege indeed and one that I hope I have not abused.

#123 nick on 08.10.17 at 8:14 am

#102 Smartalox on 08.09.17 at 11:46 pm
Here’s the solution to the problem:

Millennials swap housing with the boomers.
_______________________________________

Doesnt work. Most of the boomer’s retirement funds is in their homes, and will have to be accessed at some point.

#124 SilverSon on 08.10.17 at 8:17 am

#102 Smartalox on 08.09.17 at 11:46 pm

Certainly one way of looking at it and not a bad notion at all. Since 2008 I have been asking people “isn’t this crazy Canadian real estate thing really just parents/boomers taking absurd amounts of money from each others children?” I suppose it makes them feel less guilty than taking it from their own children … like the story behind the movie Throw Momma from the Train. Most of the parents of the Millennials that I know would say they’d never take $1-million from their own children, but somehow they are gladly selling their houses to someone else’s Millennial kid for $1-million more than what it should sell for given what it actually is.

That said, if Millennials simply said “no” to paying those prices, the prices wouldn’t be as high as they are. Obvious Greater Fool principle in action. Boomers may have owned the gas for this fire but it’s the Millennials that lit the match. I think Millennials need to be far more patient than they are being. They’re driving up their own prices because they don’t want to wait and/or don’t feel like they should have to. Patience is why it took me 15 years before I had a house that wasn’t a fixer-upper. Millennials don’t seem willing to accept that – they seem to feel entitled to have their dream house as their starter house, and if they can’t buy it directly, they buy junk and immediately load up a HELOC with renovation costs to make it their dream house before they’ll agree to move in. Watch any of the HGTV shows about residential real estate and you’ll see them doing it. I suppose this is the result of helicopter parenting – it’s bred entitlement and with that has come some very high expectations for standards of living.

#125 Smoking Man on 08.10.17 at 8:21 am

T2 loves to dance with words like post modernism.

If you watch this clip then every word that this scum sucker farts out of his mouth you will understand why I despise the little prick so much.

https://youtu.be/wLoG9zBvvLQ

#126 NoName on 08.10.17 at 8:28 am

#118 Reality 1 on 08.10.17 at 6:04 am

I never had bike but always wanted one…
Gikes that wanted are Honda RC51 or VFR800. Good thing they are not made any more, so half of there craving is gone… Or is it.

https://s-media-cache-ak0.pinimg.com/originals/1e/fd/88/1efd88a22c4bd643b2a49e0f5b67d328.jpg

http://www.2040-motos.com/_content/cars/images/34/47434/001.jpg

But my old employer did everything wrong, but somehow they sponsored good bike.

https://www.youtube.com/watch?v=uhdbeG575SE

#127 SilverSon on 08.10.17 at 8:30 am

#111 Dave on 08.10.17 at 1:38 am

Boomers won’t get windfall gains if Millennials simply stop doing what they’re doing and learn to be as patient as the generations before them. I said it before … Boomers might be the ones that own the gas in this fire, but it’s the Millennials that lit the match. Both are to blame for the fire and the government is to blame for fanning the flames. But again … if the Millennials would just stop and exercise some patience and planning for much longer than they are accustomed to (i.e. 5 years, not 5 weeks or 5 months) things will normalize.

#128 crowdedelevatorfartz on 08.10.17 at 8:30 am

@#98 waiting on the westcoast for mangiacakes

“In Italy, it never stops! Thank God I’m Italo-Canadian… ;-)”
+++++

Just curious.
When you visit Italy do you tell them you’re Italian or Canadian?
Hypenated Canucks?

#129 NoName on 08.10.17 at 8:31 am

#118 Reality 1 on 08.10.17 at 6:04 am

I never had bike but always wanted one… Honda RC51 or VFR800. Good thing they are not made any more, so half of the craving is gone… Or is it.

https://s-media-cache-ak0.pinimg.com/originals/1e/fd/88/1efd88a22c4bd643b2a49e0f5b67d328.jpg

http://www.2040-motos.com/_content/cars/images/34/47434/001.jpg

My old employer did everything wrong, excepr one thing, somehow they managed to sponsored good bike.

https://www.youtube.com/watch?v=uhdbeG575SE

#130 maxx on 08.10.17 at 8:34 am

#66 TurnerNation on 08.09.17 at 9:04 pm

“………….Wealtors.”

Perfect word craft.

#131 crowdedelevatorfartz on 08.10.17 at 8:38 am

@#102 Smartalox
“Millenials get the real estate status that they covet”
++++++

Nah. Wont work.
It will drive the price of houses into the toilet and be blamed on everyone from Boomers on down.
Then there is the “unfairness” of property taxes, maintenance, heating bills, electrical bills, garbage collection, leaky roofs, leaky windows, on and on and on.
As the old saying goes, “Much wants More” so if you give and give and give….. Its never good enough.

Work hard for it.
Earned ownership. A “new” poltically incorrect concept shocking millions.

#132 SilverSon on 08.10.17 at 8:39 am

#123 nick on 08.10.17 at 8:14 am

“Doesnt work. Most of the boomer’s retirement funds is in their homes, and will have to be accessed at some point.”

True, but it’s unreasonable for Boomers to saddle Millennials with the financial outcome of their poor financial planning. If Boomers were more fiscally responsible they wouldn’t need their houses to fund their retirements. Boomers shouldn’t be this comfortable passing the buck either, and Millennials shouldn’t be so darn eager to take the buck.

Perhaps this is why so many Millennials are living with their parents these days. Maybe this is fate’s way of teaching Millennials patience while making sure Boomers’ retirement is not all champagne and caviar at the Millennials’ expense.

#133 Sprawl on 08.10.17 at 8:41 am

Stellar blog post demographics are amazing for big picture insight.

#134 WUL on 08.10.17 at 8:49 am

How to be a successful landlord with a great return on an Edmonton condo? Become a member of the legislature.

Derek Fildebrandt, MLA for Strathmore-Brooks (crackpot Wildrose Party – now the UCP) receives taxpayer money for Edmonton accommodation and rents the place out.

Did he not rise to prominence with the Canadian Taxpayers Federation?

“Members of the Legislative Assembly from outside the capital region are entitled to a maximum of $23,160 in a fiscal year to own or lease a property in Edmonton, or $193 per night for a hotel while in the city on official business.”

http://calgaryherald.com/news/politics/fildebrant-renting-out-his-government-subsidized-apartment

Principled fellow.

#135 Headhunter on 08.10.17 at 8:51 am

Great post and some kool comments.. just to set the record straight I was born at the tail end of the baby boom.

The people that were born in the boom did have it somewhat easier although they may have had less trinkets.. cells, internet etc. It was’t as prohibitive to live.

Kid #2 Apprentice electrician almost has ticket. Need car to get to work as he works all over the place. Couldn’t move out of is Mom’s for the longest time. Car Insurance $400 month let alone price of reliable car fuel and upkeep.

Lets all him Dave a candidate we are working with relatively new grad 1 year exp. Still in basement cant move out. Car insurance reliable car to get to work fuel and upkeep take the lions share of his take home pay. Everyone cant live of work off the subway line

basically 2 kids that have to work for nothing (indentured servitude) for the 1st few career years.. we haven’t even touched upon school loans

Buy a house 10X your income?
now you see why some of the Millennials are prone to say “why bother”

#136 Reality 1 on 08.10.17 at 8:58 am

to # 126 NoName

Perhaps you could rent one from time to time ?

Or get a motorscooter to start and see if you like the sensation – not intimidating at all and kinda fun to start off with.

Or when on vacation, where they don’t require the appropriate motorbike license ?
That is the only time I really ‘ride’ anymore.

Motorcycle riding is an unbelievable feeling, even at slower speeds – it always made me feel like I was flying.

Funny thing is I have piloted a few light plane flights (with some instruction) and it didn’t do it for me.

#137 Victor V on 08.10.17 at 9:03 am

Another way boomers will tap into the equity in their homes. Trend tells the tale:

https://trends.google.com/trends/explore?date=today%205-y&geo=CA&q=Reverse%20mortgage

#138 Derek on 08.10.17 at 9:08 am

Garth, if 6 in 10, 75-84 year olds still live in their homes, then why would they need to sell them now that price increases have stopped? They clearly don’t need the money.

#139 Asterix1 on 08.10.17 at 9:17 am

#124 SilverSon on 08.10.17 at 8:17 am

“Watch any of the HGTV shows about residential real estate and you’ll see them doing it”
____________________________________________

Sure for HGTV! But watch any porno show and you’ll also see everyone doing it!

#140 Are you kidding me? on 08.10.17 at 9:20 am

The short-lived “new listings” Tsunami in T.O. is over. TREB sitting at only 2 months of inventory. Meanwhile, the nation enjoys robust employment and GDP numbers.

No significant RE correction is possible without a recession.

It just doesn’t happen.

#141 IHCTD9 on 08.10.17 at 9:29 am

#17 Debtslavecreator on 08.09.17 at 6:19 pm

The question is how does anyone fix this and get re-elected ?

___________________________________________

Should be easy – it’s the Millennials who put guys like Trudeau (who incinerate cash like Smaug) in power with a majority.

Of course, guys like Trudeau are future destroyers for the 99% and all youth, most Millennials obviously haven’t figured this out yet – but eventually, they will…

#142 Ole Doberman on 08.10.17 at 9:40 am

#37 Cowtown Deathwatch on 08.09.17 at 7:24 pm

Garth, any update to the Cowtown Deathwatch? I’ve been building my savings and looking to buy in Calgary for ~2 years now as I’ve managed to keep my job. The implosion has not come. Surely this is an interesting enough situation to warrant a post? How can rents implode (40%+) and unemployment skyrocket without much impact to the housing market between 2014 and today?
——————————————————-
yes, this!

We’ve already burned through all the theories like EI and severance packages running out.

Unless everyone is just hanging on for dear life and sitting ducks for rising interest rates.

#143 Prairieboy43 on 08.10.17 at 9:43 am

Skip the Harley purchase. Rent for a weekend $300.00. There you have your fill of HD. They fun, loud, heavy. However they leak oil, expensive to fix, and insure.
Buy Honda, or Yamaha, maybe BMW. Skip the rest (quality control issues). Had a couple VFR, probably Perfect road bike ever made. Light, smooth, great handling, quiet, 55 mpg, did I mention handling (why you bought two wheels in first place), cheap to fix (Honda parts inexpensive) cheap to insure $400.00.
Millenials dream machine?
PB43

#144 SilverSon on 08.10.17 at 10:06 am

#131 crowdedelevatorfartz on 08.10.17 at 8:38 am

“Work hard for it.
Earned ownership. A “new” politically incorrect concept shocking millions.”

Well put!!!

#135 Headhunter on 08.10.17 at 8:51 am

“basically 2 kids that have to work for nothing (indentured servitude) for the 1st few career years.. we haven’t even touched upon school loans”

I’m an X not a Boomer, but didn’t most people do that for the first few career years prior to the early 2000’s? My car at the time cost $2500 and I had to learn to do the maintenance & repairs myself because I couldn’t afford to pay someone else to fix it on top of the cost of parts and insurance. It took up a lot of time and was difficult. And we DIDN’T have the Internet back then, so no YouTube videos showing us how to do such things and nowhere to publicly whine about it trying to make everybody feel sorry for us. I also worked throughout going to university (even during the school year) and I used the money to minimize loans instead of leasing a Kia and going to Starbucks daily. Times were much harder back then on those sorts of things but we were patient, earned our stripes, and worked hard for the things we wanted.

This is why I think the plight of the Millennials is so ridiculous. It’s completely unreasonable for them to expect anything different in this day and age. They are not owed anything. They made their own situations and they need to spend their time planning a way out of their situations as we all did. They need to gain patience, grow a set, and be accountable for themselves. Bitching about things online and blaming any other generation doesn’t resolve anything. The only people that might care is their parents so they should go whine to them.

#145 Eks dee Sipal on 08.10.17 at 10:13 am

HCG was the canary. Now, they are looking for the 2nd Buffett bailout to the tune of 4 Billion in dilutive capital. What a slow-motion train wreck. I just can’t stop looking.

Next alt lender on the block: Catalyst Capital and its affiliated Callidus.

https://www.wsj.com/articles/canadian-private-equity-giant-accused-by-whistleblowers-of-fraud-1502307145

Canada is a banana republic when it comes to securities fraud. It was “Born This Way” from the get go. Canada was a banana republic when it came to Big Oil. That ship has sailed. We’re 81 years younger than the US, so we have a lot of growing up to do. We’re still a banana republic when it comes to mining. We’ve got our tentacles in mines all over the world. Anyone have interests in Southern Lithium? The EV ride is just getting started. I hope you’re ready. – XD

#146 Eks dee Sipal on 08.10.17 at 10:20 am

CMHC has ruined the lives of a generation. Banks essentially get a guaranteed bailout as soon as the mortgage is issued at under the arbitrary threshold. This is not free enterprise. This is not capitalism. It is predatory profits backstopped by socialized losses.

Boomers have all of their wealth in their 4 walls and slanty roof. The gov’t cannot willingly allow housing prices to fall. As evidenced with HCG, they will do everything, including secret talks with private US equity to keep the circus going for as long as they can… until such a time as they cannot any longer. That time is now. Good luck to all.

#147 Penny Henny on 08.10.17 at 10:34 am

#81 Pete from St. Cesaire on 08.09.17 at 9:57 pm
It’s happening as I predicted. Yesterday I was talking with distant relatives (early 30’s) from Orillia. RE came up and they told me that although many of the people they know have bought houses, they themselves weren’t going to and neither were many of their friends. Their reasoning is astounding. She said that we all have a responsibility to fight climate change and even more so now that Trump has left the Paris accord. Encouraging developpers to build houses is wrong. It adds to our carbon footprint. We must learn to live with the earth.
////////////////////

Wow that blew me away.
The brainwashing worked.

#148 HaHaHa on 08.10.17 at 10:41 am

Reality check time. The term ownership. Owning a home in my opinion is having clear title. I am a boomer. Status OWN my humble home. Age 54. Retiring next year. Portfolio 1.5 million and in that does not include my home. Now my point is a lot of people my age are still paying a mortgage. If you fall into this category please get off your high horse about other money illiterate generations. If this is too preachy well it is. I am sick and tired of meeting 60 year old retards telling me I am too young to retire. Go jump on your financed Harley and work till your death. Millenials quit listening to these idiots about money. Advice is stay invested and do not spend more than you make. That is it. Look beyond the fancy house and cars and ask your parent’s if you can see their bank statement. They are probably living a lie. Bring on the hate boomers.

#149 Gabriel on 08.10.17 at 10:48 am

RE: #19 / Crazy Pills

“I’ve noticed a marked increase in classism from boomer’s lately. They way the look down at me scornfully, in an “i’m better than you” kind of way.”

—–

Yes, I’ve noticed it as well. As a cohort, boomers are incredibly arrogant.

Won the demographic lottery. Supported by generous government policies their entire lives, from great public schools to highly subsidized university education through to generous tax policies. Massive, sustained inflation of their portfolios from a gamed financial system. Now they’re RE rich from a decade of free money policy. They benefit from all that and they think they’re geniuses.

As I like to remind one of my older friends (hey Robert), very soon, we’re going to decide what medication they’re on.

Personally, I prefer the cheap ones from India.

Cost cutting you know. Doing more with less.

Just like the way they ran their corporations.

#150 IHCTD9 on 08.10.17 at 10:57 am

#33 Mike in Toronto on 08.09.17 at 6:57 pm
#9 LOL at Toronto Housing Crash!

“…as a Millennial who is living in one of the worst times in Canadian history.”

I hope you’re joking.

Boomers might have won the housing lottery, but you really need to get some perspective.

We’re in one of the longest, safest periods of prosperity in Canadian history.
______________________________

If you want to be honest about it, Millennials have it WAY better than any previous generation, unless they insist on working, living, and owning a home in a metropolis.

The whining is undoubtedly coming from those wanting to live in a big city, or maybe feeling entitled to live there more likely?

Small town Millennials are doing way better than any GenX/Boomer ever did at the same age. Home ownership by early 20’s, nice truck out in the driveway, 1-2 quads in the garage, boats and fishing gear galore. Buddies, barbeque and beer every weekend. 1000-1500.00/month mortgage payment and 50+K/year tradesman income by 25 with all the OT you can eat. They make more income, and pay less for essentially everything.

For those who want to live in the GTA/GVRD, you really have no reason to point fingers at anyone. You are sticking it to yourselves.

#151 AB Boxster on 08.10.17 at 11:00 am

#113 The Dude on 08.10.17 at 2:26 am

Wow $150,000 in 20 years!
——————————————–
The point is that a lot of money is being pissed away on things that really mean nothing.

The example also shows the power of compound interest on savings , which many millennials (and sadly many others including boomers) have no clue about.

So many people (of all generations) whine and complain that they will never own a house or can never retire, or that anyone with a DB plan is ripping them off.

I fully agree that that housing prices in major centres is a national disgrace. Politicians and bureacrats all levels have been asleep at the wheel for the past 10 years and for that they should all be vilified, and made redundant. Perhaps they should also forfeit their pensions.

But fact is, that life is about choices.

Choose to buy ‘new’ vehicles every 5 years of your life, that gets lousy gas mileage, and I will show you how over the extent of your life that this choice will cost you tens of thousands more than if you were to buy quality used cars, that get great mileage and drive them for 10 years.

Choose to get the biggest mortgage you can qualify for at low rates and amortize at the maximum years, and I will show you how this will cost you multiple hundreds of thousands of dollars over your life.

Choose to go on the expensive vacation every year, rather than every 5 years (as the boomers did when they were young) and I will show you how this will cost you hundreds of thousands of dollars over your lifetime.

Choose not to save 10% of your salary in RRSP and TFSA’s, but instead ‘live for today’ and piss it away on some bizarre crap from China , and I will show you how you have missed out on 30 years of compound interest and how you have not accumulated a portfolio of hundreds of thousands of dollars.

The example I gave was a simple one, to show how things that are ‘obvious needs’ in today’s society, were not ever part of a boomers budget.

Again life is about choices.

Live a life within your means.
Save 10% of your gross salary at all times and invest it.
Purchase housing you can afford and pay off all debt as soon as possible. Otherwise rent.
Try buying what you need, rather than what you want.
Experience life through doing things, not by owning things.

And after 30 years retire with your accumulated wealth. Which will be very substantial.

Or Not.

#152 Headhunter on 08.10.17 at 11:08 am

#144 SilverSon on 08.10.17 at 10:06 am

“me thinks you protest too much”

my examples are of kids WHO WANT TO WORK
never did they complain its just reality.

Now that we are on that subject at least you can wrench on a pre 2000 car.. try that today.. times were much easier “back in the day” one income could take care of an entire family

Ever heard of Eatons? My ex’s grandpa had stay at home wife and 3 kids.. he sold shoes at eatons.. sold shoes!!

try harder next time “Silverson”

#153 IHCTD9 on 08.10.17 at 11:12 am

#41 Newcomer on 08.09.17 at 7:30 pm
#21 Old Ron the Realtor on 08.09.17 at 6:34 pm

You have very high prices, we had 20% interest rates. It all balances out.

——————

Not even close. The percentage of income going to the mortgage in the first year might be similar, but uhe high interest-rates went with high inflation, which ate at the principal in real dollars. If you borrow a small sum while everyone’s income is increasing, it’s easy to pay off. If you borrow a large some while everyone’s income is stagnating, it’s hard to pay off. Five years in, most boomers owed a year’s income on their houses. Millenials buying now won’t be in that position for twenty years.
________________________

23 year old bought “starter home” down the road from me for same price I paid for my house in 2000. His mortgage payment is 50% of what min was 17 years ago. That difference represents how much money the bank skinned off me compared to him.

If you’re trying to say millennials are screwed because houses cost a million, you’re wrong. Anyone paying a million for a regular house was an idiot from the start and doomed to fail at life.

#154 IHCTD9 on 08.10.17 at 11:15 am

#42 Dissident on 08.09.17 at 7:31 pm
#7 Are Millennials Stupid? on 08.09.17 at 5:50 pm

Millennials are not stupid. They just want the same things as you did at their age. Difference is, you have it, and they don’t. Want to raise a family in a 900 sq ft apartment? (And that’s on the large size for an apartment). Neither do they.
_________________________________

Right, I’ve heard this story before.

The story I haven’t heard is the one where the millennial actually did something about it and moved out of the 900sf box he parked his family in.

Got any stories like that?

#155 Looney Baloney on 08.10.17 at 11:21 am

Speaking of horny, is it mating season for dogs? The one next door has suddenly come into the habit of howling all night. Probably triggered from the scent of the two yapper bi*ches upstairs. Wondering if Bandit is going through the same thing? Ah the many joys of renting…

#156 TheDood on 08.10.17 at 11:21 am

#37 Cowtown Deathwatch on 08.09.17 at 7:24 pm

Garth, any update to the Cowtown Deathwatch? I’ve been building my savings and looking to buy in Calgary for ~2 years now as I’ve managed to keep my job……..
___________________________________________

Patience Mr. Deathwatch. There is no new investment going into O&G in AB. The industry as we knew it is gone forever. All the big international players are gone and are not coming back. No new projects on the horizon either. It’s going to take some time before this carries over into RE. Don’t forget that Calgary was (by a large margin) the highest paying city in Canada for decades, and now, 30% of downtown is vacant. People who own RE in that fine city have deep pockets. Calgary is not immune to what’s going on. Eventually, those big severences will run dry and lots will be forced to sell at whatever the market is willing to give them. Keep saving and don’t be in such a rush.

#157 BoomerKid on 08.10.17 at 11:22 am

Many boomers don’t have any retirement savings. They are counting on cash from their houses to make up the difference between OAS/CPP and their expenses.

They still have cashflow now, either because they are still working or because they are borrowing money from HELOCs.

The reason they don’t want to sell yet is because they are hoping for a couple more years of price appreciation (“another $500k just by waiting 2 years would be great for my retirement!”). Some have even leveraged their primary residence to buy even more property (because they’ll make twice as much, of course, and that would really help them retire!).

The moment the music stops (aka no more cashflow) – either because they are forced to retire or when house prices start declining or credit tightens on HELOCs, they will be selling in droves. Unfortunately, when it rains, it pours and quite likely all three things will happen at once.

If you’re a boomer counting on your house to bail you out of your non-existent retirement plan, you might want to beat the crowds. If you’re a millennial – well, granite countertops and fake fireplaces are more enjoyable when they cost less than 12x your salary.

#158 Asterix1 on 08.10.17 at 11:24 am

#140 Are you kidding me? on 08.10.17 at 9:20 am
The short-lived “new listings” Tsunami in T.O. is over. TREB sitting at only 2 months of inventory. Meanwhile, the nation enjoys robust employment and GDP numbers. No significant RE correction is possible without a recession. It just doesn’t happen.
____________________________________________

Yes, the economy is doing great, that is exactly why the government will allow this real estate correction to continue. There are solid bases all over the economy to sustain this present deflation of the RE bubble.

Don’t want to scare you but a “correction” has already happened! Toronto down -19%, other GTA areas down between -16% to -35%. At this point its time to consider if its going to be crash territory for the next few months.

#159 Calgary Rip Off on 08.10.17 at 11:27 am

This post is correct in some of its views.

There are also other views. 1)Sometimes other people’s lives look better than our own. This is not necessarily correct. Unless you live in someone else’s body, you dont know for sure what their life is like. There are numerous variables related to physiology and experiences and that interplay that affect how one feels. And its very very complicated.

2) Given #1 above, why not choose to accept the current situation? Sometimes, “improvement” can make things worse because every time an advantage is sought, this requires energy which open whichever system is being used to vulnerability. It is best to evaluate steps for any situation which can be permanent, as some decisions arent easily retracted. Other situations which are reversible, a person should just do something and wait and see what happens because learning leads to valuable experiences. Wisdom is the key in knowing the different decisions in which someone should make decisions more easily, and others in which decisions should be made with caution.

There are solutions to whatever situation a person is in. First is acceptance of what is, and then making decisions and evaluating what happens after those decisions by really listening and seeing what is happening from all angles, even those angles in which the decision is made to look questionable, in varying degrees so the decision make is not overwhelmed.

#160 Eric on 08.10.17 at 11:38 am

@ #7
Not stupid, just pushing mid thirties, starting to have families and wanting a secure home to raise them in. Prices are crazy but we can’t wait forever. If we wait for you old bags to all move out of your 4 bedroom homes and open up supply our kids will be off to University before we can buy the home to raise them in…

#161 rainclouds on 08.10.17 at 11:45 am

Pretty sure this replicates the experience anyone who is now financially independent has already lived.

Nose to the grindstone early in working life to reap rewards much later. Or put another way, enduring a shitty job to achieve financial goals.

PS: Note the job and gender.

https://www.thebillfold.com/2017/08/i-saved-40000-in-two-blue-collar-years/

#162 conan on 08.10.17 at 11:45 am

#125 Smoking Man on 08.10.17 at 8:21 am

Could you give us a quick synopsis of that video that you posted? Here is some deep thought music to help you out.

https://youtu.be/DGfgMzVDalw?t=10

#163 Vancouver on 08.10.17 at 11:45 am

Garth, thanks for making me laugh.
But who is buyin ( or was) all these houses if every 3rd Millenial is staying in his parent’s basement?

#164 Lee on 08.10.17 at 11:46 am

Folks, old people are not leaving their homes unless their health forces them to. People struggle tooth and nail to retain their homes. I live in an area where there are a ton of oldies. None of them are even talking about selling. In fact, most don’t want their married kids moving back in. They like their privacy, which they lose in a condo or nursing home, private or otherwise. And remember, boomers are typically married, whether they care to be or not anymore, and therefore it is the longer lasting oldie you’ll have to wait out. With most women being the oldest living of a married couple, that means waiting until people on average hit 90 before the house hits the estates market. Not to mention with many homes, when both parents pass, one of the kids typically moves in and buys our the other kids. Moral of the story is this market in Toronto and surrounding region aint never crashing. I am still waiting for someone to show me that sfh in Forest Hill or $750,000.

#165 IHCTD9 on 08.10.17 at 11:51 am

#52 Chaddywack on 08.09.17 at 7:52 pm
$3M for a house that is nothing special in East Van….or as Garth says “Where the poor people live”

I can almost get a house on the westside for that price…..if I were in the market what is the appeal of this one?

Am I missing something obvious here?

https://www.realtor.ca/Residential/Single-Family/18411639/2735-OXFORD-STREET-Vancouver-British-Columbia-V5K1N5
___________________________________

That’s called fishing for stupid.

Real stupid

Love that carpet.

#166 Keith in Calgary on 08.10.17 at 11:55 am

#152 Headhunter……….

Now that we are on that subject at least you can wrench on a pre 2000 car.. try that today.. times were much easier “back in the day” one income could take care of an entire family

—————–

Actually you gotta go as far back as the 70’s for that to be true.

#167 FLHTK on 08.10.17 at 12:14 pm

#148_HaHaHahA
you must have a cushy government job!

#168 bdwy sktrn on 08.10.17 at 12:25 pm

#152 Headhunter on 08.10.17 at 11:08 am
#144 SilverSon on 08.10.17 at 10:06 am

Now that we are on that subject at least you can wrench on a pre 2000 car.. try that today..
—————
dont understand why ppl keep repeating this.

newer cars are not really any different than old ones except they have this nifty helper computer which straight up tells you exactly what is wrong , so you can go buy the part before even popping the hood.

with youtube and a cheap code reader it’s way easier to do cars now than ‘back in the day’

do you like to f with points, timing, carbs?

#169 hard winds on 08.10.17 at 12:34 pm

Mother of all stock market bubble is about to burst…

It has more cheap money wind to blow than any other asset class.

Stock values are tied to earnings, which are bounding ahead. Lots to worry about. This is not one of them. — Garth

#170 waiting on the westcoast on 08.10.17 at 12:35 pm

#128 crowdedelevatorfartz on 08.10.17 at 8:30 am
“Just curious. When you visit Italy do you tell them you’re Italian or Canadian? Hypenated Canucks?”

I have dual citizenship so I identify as Italian when entering/exciting Europe.

#171 Braj on 08.10.17 at 12:37 pm

#61 Higher form of life on 08.09.17 at 8:35 pm
Most higher forms of life look after their offspring.

30-year-olds are adults. When does it stop? — Garth

Most people don’t become adults until they stop viewing themselves as the most important person in their lives. This usually happens when a child is born.

#172 bdwy sktrn on 08.10.17 at 12:43 pm

#152 Headhunter on 08.10.17 at 11:08 am
#144 SilverSon on 08.10.17 at 10:06 am

Ever heard of Eatons? My ex’s grandpa had stay at home wife and 3 kids.. he sold shoes at eatons.. sold shoes!!
——————–
and how many iphone plans, concert tickets, new car payments and overseas vacations was he paying for?

a one income family can easily make it, just cut out the fat. even a shoe salesman (all very good sales ppl get paid well) , even in vancouver (condo).

it does a world of good for the kid(s)

#173 James on 08.10.17 at 12:52 pm

#84 Smoking Man on 08.09.17 at 10:13 pm
Biggest story of the year James Damore.
No one knows about it. Earth shaking. The femanizs in an all out panic. Teacher Feminized little boys desover they have nuts.
Divirsaty and Inclusion the real agenda brought to light.
Nobel prize for james. Oh damn that’s a gobalist trophy.
Sorry James. No soup for you. Sue the bastards hard.
……………………………………………………………….
Not bad only four spelling mistake that my 10 year old daughter can easily spell.

James Damore goes on to argue that the left-bias of Google is causing it to miss what he believes are personality differences between men and women that cause the gender gap in tech:
Openness directed towards feelings and aesthetics rather than ideas. Women generally also have a stronger interest in people rather than things, relative to men (also interpreted as empathizing vs. systemizing).
These two differences in part explain why women relatively prefer jobs in social or artistic areas. More men may like coding because it requires systemizing and even within SWEs, comparatively more women work on front end, which deals with both people and aesthetics, saying women on average have more.
Extraversion expressed as gregariousness rather than assertiveness. Also, higher agreeableness.
This leads to women generally having a harder time negotiating salary, asking for raises, speaking up, and leading. Note that these are just average differences and there’s overlap between men and women, but this is seen solely as a women’s issue. This leads to exclusory programs like Stretch and swaths of men without support.
Neuroticism (higher anxiety, lower stress tolerance).This may contribute to the higher levels of anxiety women report on Googlegeist and to the lower number of women in high stress jobs.
He also wrote that men have a “higher drive for status,” saying, “We always ask why we don’t see women in top leadership positions, but we never ask why we see so many men in these jobs. These positions often require long, stressful hours that may not be worth it if you want a balanced and fulfilling life. Status is the primary metric that men are judged on, pushing many men into these higher paying, less satisfying jobs for the status that they entail.”

If you agree with him the your an idiot. I don’t agree with google either.
While I personally do not like a forced policy of inclusiveness as it feels phony I also don’t have a fit when I hear about it. Perhaps it is needed in some good old boy vocations. I have told my daughter that she can do anything and be anyone that she wants. I will support her 100%. Right now she is leaning towards a doctor and I have to say I personally think she will be a leader. Some people are natural born leaders and some are not including a lot of men.
So while you’re sitting in your drunken stupor in the Caribbean think about your own future offspring and their opportunities.

#174 SimplyPut7 on 08.10.17 at 12:56 pm

The article below is interesting. Only 1 full-time resident in a small building of 9 units in Montreal.

http://www.cbc.ca/news/canada/montreal/airbnb-folo-plateau-mont-royal-1.4238765

It kind of reminds me of Florida during their crash, when only one family lived in the entire building.

https://www.thestar.com/news/world/2009/08/02/living_alone_in_32storey_tower_like_a_scary_movie.html

The GTA has a similar problem, if half (47%) of young adults aged 20-34 live at home in Toronto, and everyone seems to know several people who bought one or more condos as investments with no interest in renting them out for long-term use; who lives in all of the buildings that keep popping up in the GTA?

If these are local speculators with homes sitting on their credit line, the banks are eventually going to ask people to pay back the HELOC and as Garth said, no one wants those 500 sq ft concrete boxes with windows looking into another condo building 50 feet away.

#175 Dolce Vita on 08.10.17 at 12:59 pm

#164 Lee

Different generation Lee. That is the Silent Generation, not the 55 to 67 year old Boomers; however, I hope you are correct.

From the Boomer retirement planning and tax bracket numbers it will be difficult to comprehend how the Boomers can achieve what the Silent Generation did in their retirement.

But wait, when you can’t sell your Boomer home to anyone else for what you think it is worth, heck, sell it back to the bank (new strategy in BC):

http://vancitycondoguide.com/vancouver-homeowner-refinancing-surges-27-year-year/

#176 A Reply to #159 Calgary Rip Off on 08.10.17 at 12:59 pm

A spot-on and well-written post!

It reminded me somewhat of the following saying: “God grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference.” — Reinhold Niebuhr

#177 paul on 08.10.17 at 1:02 pm

#54 Happy Housing Crash Everyone!

This is why I HATE realtor shysters. They are uneducated high school drop outs who should be locked up in jail for financial crimes against Canadians. The government needs to regulate this shady industry. I have emailed from T2 to my local MP. I suggest some of you should spend some time complaining to those who can make changes. Together we can make sure they will financially suffer for the rest of their lives. Happy Housing Crash Everyone!
—————————————————————–
Wow YOU e-mailed Justin man we going to see action now.
Man you are the guy who screams at the weather man because it’s raining ! lol

#178 Old Dog on 08.10.17 at 1:06 pm

#168 bdwy sktrn
“with youtube and a cheap code reader it’s way easier to do cars now than ‘back in the day’

do you like to f with points, timing, carbs?”

Have to disagree with you there #168 bdwy sktrn.
Just trying to get at the part now takes 4 times as long. Plus nothing is rebuilt anymore. Just take off the part and throw it away, very wasteful.Problem solving on an old car was much easier. A fraction of the systems to deal with. Setting points was no problem, but pointless ignitions have been in for years. You didn’t have to set your timing anymore than you do now, which is never. A carb would go many years before needing a rebuild. Plugs needed to be changed more regularly. If you’ve ever worked on old cars from the 50’s and 60’s they were a breeze compared to the new computerized monsters.

#179 jess on 08.10.17 at 1:08 pm

car vending machines no salesperson needed

Alibaba plans to plug its vending machines into its online system that incorporates financing and data about a car buyer’s credit rating, the FT reports. Buyers with a high enough credit rating from Alibaba’s scoring system will be able to drive off in their car after providing a 10pc deposit, paying monthly installments thereafter.

Singapore ‘vending machine’ dispenses Ferraris, Lamborghinis
http://www.reuters.com/article/us-autos-singapore-idUSKCN18B1KM
May 15, 2017 – U.S. company Carvana also uses vending machine-like towers to sell used cars. In March, it opened an eight-floor structure that holds up to 30

#180 bdwy sktrn on 08.10.17 at 1:19 pm

IHDC9
If you’re trying to say millennials are screwed because houses cost a million, you’re wrong. Anyone paying a million for a regular house was an idiot from the start and doomed to fail at life.
————————————–
if i may respectfully offer a slightly different take on this…

a regular house only costs a mil in 2 cities. but in those cities are many tens of thousands of quite/very highly paid jobs which simply do not exist elsewhere.

looking at my immediate neighbours in east van, their jobs are forensic accountant, HR executive(very large orgs), rcmp computer mapping geek, big development co mgmt, 3 professors, ubc med researcher, tech machinery sales, cbc anchor, etc.

there are zero jobs for them at their level in small towns or cities that don’t have a 604/416 area code.

the dentist, teacher and phyiso could do fine anywhere.

buying a house worked our really well for all of them. even the ones who paid 1m for a duplex (nice ones are now 2m)

van is floated by cash from all over the world. this will not change in my child’s lifetime.

soon we rent out the city house for 6k/mo and go live in nice small towns all over the world!

#181 IHCTD9 on 08.10.17 at 1:19 pm

#59 Nonplused on 08.09.17 at 8:28 pm
Just wait until the millennials figure out what happened to them on the government debt side of things as well.
________

Good post. I’ll add that Millennials fully support their own destruction via their voting habits, so when they do figure out they will be retiring on 200.00/month CPP starting at 75, with a 100.00 or so is OAS, they will probably not be saying too much about the bed they’re lying in.

Harper already had OAS eligibility booted back to 67 years ago as it has to happen due to demographics. Trudeau put it back to 65. That’s great for me as I’m not too far away from retirement, but it’s bad for the millennials who voted Trudeau in with a majority as all the boomers and most of Gen X will have sucked the system dry by the time their turn comes.

Millennials just don’t think too much before they vote, but I guess I should shut up, carry on; and count my blessings. T2 has even added 50% to my Child benefits, and I didn’t even vote for him. I guess I should thank the millennials and keep encouraging them to vote? They just trust government way too much.

Looking forward, new immigrants should take note of our direction. Millennials marry less, and are probably the generation least interested in raising kids overall in all of Canadian history. Immigration will eventually hit a half Million per year, and it may well be these poor folks who slave and pay ever increasing taxes to keep the system afloat. Hopefully they don’t figure out what’s going on either.

Those professors you mentioned already owe a big debt for their plump salaries to foreign and immigrant families sending their kiddies for Canadian education. I’d bet in 20 years, well over 50% of the students in any popular Canadian University will have parents who were not born in Canada.

As far as Harleys and Kawasaki’s go, I’m in that 40+ crowd, and I will pass on the HOG and go for a Yamaha (Grizzly 700 SE to be precise).

#182 Dolce Vita on 08.10.17 at 1:20 pm

So, why stress about a HELOC when you can simply walk across the street to another lender and refinance your home; thus, no demand loan worry, no worry that your home price will be going down and HELOC amount, your HELOC interest will cost you more and best of all, you debt rate is locked in for at least 5 years at current low rates.

Yes, welcome to the World of Refinancing, doing booming business in BC and 416 according to CMHC.

Desperate Boomers trying to finance retirement or lavish lifestyles they cannot afford.

Give credit to those crafty Abbotsford/Mission people whose new found equity wealth will not be allowed to slip thru their fingers:

http://vancitycondoguide.com/vancouver-homeowner-refinancing-surges-27-year-year/

CMHC report:

https://www.cmhc-schl.gc.ca/en/hoficlincl/observer/observer_171.cfm?obssource=observer-en&obsmedium=link&obscampaign=obs-20170808-homeowners-debt?utm_source=twitter-main&utm_medium=link&utm_campaign=mac

#183 Quotable Quote on 08.10.17 at 1:21 pm

Students spend four or more years
Learning how to dig data out of the library
And other sources.
But it rarely occurs to them
That they should also apply
Some of the same newfound research skill
To their own benefit—.
To looking up information on companies,
Types of professions, sections of the country,
That might interest them.
— Professor Albert Shapiro, The Ohio State University (d. 1985)

#184 SilverSon on 08.10.17 at 1:28 pm

#152 Headhunter on 08.10.17 at 11:08 am

Jump to conclusions much? My daily driver is currently model year 2001 and I still work on it. It’s also worth $2500 if that. Nobody is forcing people to drive newer vehicles – that’s a choice. I’ve also got a 2009 vehicle that I don’t use as much but I still work on it myself with a $200 OBD reader and looking up codes on the Internet to see how to fix it. The Internet has lots of repair instructions to fix most of the common problems on common cars. So contrary to what you imply, I know from experience that it’s all very doable – you just have to decide to do it. Of course BMW, Mercedes, Audi, Range Rover, Jag, and those sorts of cars are more complex though; I’ve owned and worked on three of those brands and while also do-able, they are more confusing to work on and not worth it in my opinion.

I also remember Eaton’s well. Was in their Santa Claus Parade as a kid once. Last time I was in there was in 1996 at the store in Yorkdale Mall – bought a suit to attend the company Christmas party. Then I moved to SF Bay area in California and somewhere since then Eaton’s folded.

Point is, please don’t jump to conclusions. I have many Millennials working for me now and deal with them and their issues daily. Great bunch of people and I like every one of them, but they complain a lot that the world treats them badly and they have a noticeable aversion to getting dirt under their fingernails (figuratively speaking). One of them even pays Ikea to assemble the furniture that he buys there because he doesn’t want to do it. He said he used to but found it too much of a hassle. Notice how that implies that he buys a lot of furniture? Then he complains that he can’t afford a house because the raises we give him aren’t enough. Our company has over 200 engineers so how we can’t be too out to lunch on salaries or they wouldn’t agree to work here. We aren’t telling him how to spend his money – he chooses that.

#185 Headhunter on 08.10.17 at 1:31 pm

#168 bdwy sktrn on 08.10.17 at 12:25 pm
dont understand why ppl keep repeating this.

100% accurate. If you are handy you can figure it out.. back in the day and now. Reading and understanding codes is not for a novice. Depending on the rig may need special tools. German models come to mind.

#172 bdwy sktrn on 08.10.17 at 12:43 pm
a one income family can easily make it, just cut out the fat

Also I feel 100% accurate my kids had a stay at home mom for quite along time.. as long as the one working can bring home enough juice. Easily I’m not so sure. Only thing money cant buy is poverty

#186 IHCTD9 on 08.10.17 at 1:32 pm

#172 bdwy sktrn on 08.10.17 at 12:43 pm

…a one income family can easily make it, just cut out the fat.

_________________________

Yep, our family would get by fine on one income. We don’t live in the GTA, so life and most costs carry on in normal fashion much like decades past. Life is probably even easier to pay for now a days.

As it is, my feminist wife would have no part of being a stay at home Mom when we first started out. If she did not work and remain financially independent, she would then be prey for the patriarchy – of course, can’t have that.

So she works, and I buy ATV’s, tractors, trucks and track loaders.

Could be worse.

#187 Graeme on 08.10.17 at 1:35 pm

Whiny moisters? I am currently financially helping a couple of younger people who work 12 hour days and can barely afford a roof over their head. They aren’t my kids. Their parents are dead or financially strapped.

Someone needs to grow up here and it isn’t Genxer’s or Millenials working their butts off in the service sector, or in the trades, forced to keep up with inflation in areas where their skills are in demand.

If anybody is whining and snivelling it is boomers who don’t get out much and are only exposed to the offspring of the wealthy.

#188 bdwy sktrn on 08.10.17 at 1:42 pm

#52 Chaddywack on 08.09.17 at 7:52 pm
$3M for a house that is nothing special in East Van….or as Garth says “Where the poor people live”

I can almost get a house on the westside for that price…..if I were in the market what is the appeal of this one?

Am I missing something obvious here?
—————————–
yes.
it’s a 48′ lot, but it’s still overpriced
over there it will prob get 2.1-2.2m , lot value only.

#189 bdwy sktrn on 08.10.17 at 1:45 pm

single lot (33′) here, just off the drive, sold yesterday for 1.63m. lot value.
the ask was 1.9.

#190 Dolce Vita on 08.10.17 at 1:46 pm

Garth, if you want, delete prior post about Refinancing as I was not clear enough.

Here is one way to beat the stress of a HELOC demand loan with correcting RE values and higher interest rates.

Welcome to the World of Refinancing.

I was floored when I read the CMHC report. Crafty, crafty people.

In 2016 Refinancing had this market share of TOTAL mortgages (staggering):

Refinances = 21%
Multiple Mortgage Holders = 14%

35% of ALL MORTGAGES in 2016!

REFINANCE:
Consumer had a mortgage in the previous quarter, opened a mortgage in the current quarter, the address did not change, the total mortgage balance increased by more than 10% and the number of mortgages on the report is the same.

MULTIPLE MORTGAGE HOLDERS:
Consumer had a mortgage last quarter, opened a mortgage this quarter, the address is the same, total mortgage balance increased by more than 10%, and the number of mortgages increased.

The above fastest growing mortgage categories in BC and ON. Concentrated in areas of new found home equity wealth:

Census Metropolitan Areas (CMAs) bordering Toronto, including Hamilton, Oshawa, Barrie, and St. Catharines- Niagara.

And in BC, same thing in bordering areas, including YVR (see column chart):

http://vancitycondoguide.com/vancouver-homeowner-refinancing-surges-27-year-year/

__________________________

Well now I know how low income Boomer home owners will finance their lifestyles into retirement.

#191 IHCTD9 on 08.10.17 at 1:49 pm

#168 bdwy sktrn on 08.10.17 at 12:25 pm
__

Sometimes that nifty ECU sticks it to you. Like changing out the air suspension on an W211 E55 AMG. You have no choice afterwards but to flatbed it to a dealer to get the ECU set up for the new hardware so it will start working.

Or changing out a couple direct gasoline injectors on a BMW 135i TT engine. Make sure you flash the ECU with the correct software to match the revision level of those new injectors – oops dealer only unless you like to moonlight learning automotive electronics and software – or go to an underground “guru”.

I like OBD1 vehicles, they get the job done way better than a carb and distributor, but don’t throw a CEL because a mosquito got into the air box.

#192 KLNR on 08.10.17 at 1:51 pm

Hmmm, anyone know what the current year over year price decline in Toronto is?

#193 SilverSon on 08.10.17 at 1:55 pm

#168 bdwy sktrn on 08.10.17 at 12:25 pm

100% true in my experience. Newer cars in many ways wayyy easier to work on. Technology makes the ignition and fuel stuff pretty much maintenance free – plus the computer can tell you what sensor readings it doesn’t like and with the help of the Internet you can find what needs to be fixed. I think it’s just that nobody “feels like it” anymore. Hey – I don’t enjoy going to work on Monday morning with black around my fingernails and cuts on my hands & forearms, but we have been a single income family for 15 years and we are happy that way.

#172 bdwy sktrn on 08.10.17 at 12:43 pm

Agreed. My family has been single income at less than half of 1%er income for 15 years simply by trimming the fat. Includes old cars we bought used and repair ourselves, don’t eat out much, borrow DVDs and BluRay discs from the library for free, bought used furniture where we can, have older appliances at home, Formica countertops, leaving the 20-year old kitchen cabinets as they are, etc. My wife is great with that coupon app on her iPhone too – I almost can’t believe how much food, booze and clothing she gets for the $1200 per month she spends on such things. Granted some of the food is a little weird and some things we have to eat it right away before it goes bad, but we always end up having a good laugh about that. Latest was the dairy-free Bailey’s she picked up … I tried to like it but frankly I found it just awful. I have 3/4 of the bottle left if anybody wants it.

#194 HaHaHA on 08.10.17 at 2:01 pm

Dear HLFTK or whatever. Ever work a job on call 24/7 7 days a week? For 34 years. Not able to drink as on call? Drug tested? Miss Xmas with kids and family? If not shut the hell up. That’s your problem. Whiner and not necessarily a milleniel. The railroad is hiring. Try it out for the next 35 years, then spout off. Oh and I was smart enough to get on the stock option when offered. Ya you should be jealous. But bet you couldn’t handle what I have been through for the last 34 years. Try it out. Most quit and get divorced. Whats your story? Do tell.

#195 Well if you don't like it here on 08.10.17 at 2:01 pm

I’ve heard two comments recently regarding the high cost of living in Toronto and real estate. 1. Can’t afford to buy here? There’s lots of other places to live in Canada. 2. Ownership is a privilege not a right.

#196 Wrk.dover on 08.10.17 at 2:02 pm

I am turning 64 and for the record; fact, not opinion, generations before me don’t stand a snowballs chance in hell, in emulating my charmed life.

As for Harleys, monkey see monkey do.
No heterosexual North American male alive has not lusted after one at some point.

I do much better prefer operating stuff that is harder to lay down on its side when avoiding an accident caused by another motorist. Cars and trucks come to mind. I am taking a break right now from replacing the block and pistons only, in my ’69. Oh what fun, dirty elbows!

#197 jess on 08.10.17 at 2:08 pm

???

https://www.therecord.com/news-story/7496083-saskatchewan-s-brad-wall-retiring-from-politics/

#198 SilverSon on 08.10.17 at 2:09 pm

#187 Graeme on 08.10.17 at 1:35 pm

“Whiny moisters? I am currently financially helping a couple of younger people who work 12 hour days and can barely afford a roof over their head. They aren’t my kids. Their parents are dead or financially strapped.”

I have a few of those at work too and commend them for their perseverance, but for every hard working moister with dead or poor parents I have at least 5 that are whiny. Also I have a friend currently in his late 40’s that lost both parents when he was 15 so dead parents is nothing new – but I agree that helping kids pull themselves out of a situation like that is the right thing to do. Good on you Graeme – not everyone would do that.

“Someone needs to grow up here and it isn’t Genxer’s or Millenials working their butts off in the service sector, or in the trades, forced to keep up with inflation in areas where their skills are in demand.

If anybody is whining and snivelling it is boomers who don’t get out much and are only exposed to the offspring of the wealthy.”

No argument there, but we GenX-ers and the Millennials are giving them the power to do this. If we ignore the wrinklies noises, forget what they do or don’t have, and don’t buy their overpriced crappy properties they become powerless over us. The trick is to not envy/desire what they have because they can tell and it’s not beneath them to use it against us.

#199 Brett in Calgary on 08.10.17 at 2:18 pm

Yes… this. Remember, a house is not life, but you will get your chance… as will I.

#156 TheDood on 08.10.17 at 11:21 am

#37 Cowtown Deathwatch on 08.09.17 at 7:24 pm

Garth, any update to the Cowtown Deathwatch? I’ve been building my savings and looking to buy in Calgary for ~2 years now as I’ve managed to keep my job……..
___________________________________________

Patience Mr. Deathwatch. There is no new investment going into O&G in AB. The industry as we knew it is gone forever. All the big international players are gone and are not coming back. No new projects on the horizon either. It’s going to take some time before this carries over into RE. Don’t forget that Calgary was (by a large margin) the highest paying city in Canada for decades, and now, 30% of downtown is vacant. People who own RE in that fine city have deep pockets. Calgary is not immune to what’s going on. Eventually, those big severences will run dry and lots will be forced to sell at whatever the market is willing to give them. Keep saving and don’t be in such a rush.

#200 OttawaMike on 08.10.17 at 2:23 pm

Double top?

https://www.bloomberg.com/news/articles/2017-08-10/vancouver-housing-on-fire-with-biggest-price-gains-since-1990

#201 waiting on the westcoast on 08.10.17 at 2:30 pm

From my post at #170…

“identify as Italian when entering/exciting Europe.”

Swype fingers strikes again… But this time it works! ;-)

#202 IHCTD9 on 08.10.17 at 2:34 pm

#180 bdwy sktrn on 08.10.17 at 1:19 pm
IHDC9
If you’re trying to say millennials are screwed because houses cost a million, you’re wrong. Anyone paying a million for a regular house was an idiot from the start and doomed to fail at life.
————————————–
if i may respectfully offer a slightly different take on this…
______

Of course you are correct. I have no issue with folks chasing their career dreams and so on.

It’s the new Marine Biologist with 100K in student debt working at Ripley’s Aquarium for 75K/yr finding out that owning a home in the GTA is impossible due to the cost. That is where the trouble starts for me.

Your professional buddies obviously had the coin to get in the RE market at the time, and now own and have since gained some nice equity. No problem. I know a few in the same big city boat.

It’s that Marine Biologist who starts griping about not being able to buy in. Buddy needs to clam up and get happy about renting, or do something about it. All of the MB’s problems were known prior to ever making a single commitment to any kind of education, work, or city.

“If you could kick the person in the pants responsible for most of your trouble, you wouldn’t sit for a month.”

-Theodore Roosevelt

#203 crowdedelevatorfartz on 08.10.17 at 2:43 pm

@#149 Gabriel
“As a cohort, boomers are incredibly arrogant”
*******

May I generalize too?

As a cohort Millenials are incredibly whiny.

I cant imagine how you’d whine if the economy tanked like it did from the mid 1970’s to the mid 1980’s.
All while interest rates were 15% to 22% for loans or mortgages.
You just keep whining about the unfairness of it all. I’ll buy the cheese.

There…… I feel better now.
Ba Da BOOMer

#204 crowdedelevatorfartz on 08.10.17 at 2:45 pm

@#161 rainclouds.
Interesting link to a person that “gets it”

Work hard, sacrifice, get ahead.
Whiners need not apply…..

https://www.thebillfold.com/2017/08/i-saved-40000-in-two-blue-collar-years/

#205 Bob on 08.10.17 at 3:02 pm

The Toronto market may bounce right back just like Vancouver. No RE crash party.
https://www.bloomberg.com/news/articles/2017-08-10/vancouver-housing-on-fire-with-biggest-price-gains-since-1990

#206 IHCTD9 on 08.10.17 at 3:17 pm

#74 Long Branch Apprentice on 08.09.17 at 9:32 pm

I ride an SV650, great bike. Harley’s are definitely a Boomer brand for pensioners who want to give off the persona of a rebel.
_________

I always liked HD’s, but that was before you passed 16 of them driving into town. I would feel weird on a Harley these days, like I’m not “old enough” to be on one. I’m Liking the Triumph Thruxton 1200R these days.

#207 Graeme on 08.10.17 at 3:41 pm

#198 Silver Son,

I don’t know any whiners, myself. I just do the math. Entry level ‘homes’ where I live start at 400,000.00. Rental space is in such demand, a tiny room in a shared house starts at 600.00. Renting a dumpy house (there are no condos) will run you at least 2,000.00 a month, if you can find one.

Trades people are having a tough time — even those working full time — if they have kid or kids.

The ridiculous thing is, people move here because it is the low cost alternative to anything anywhere near Vancouver or Victoria.

All boomers needed to get ahead was a pulse. I am so tired of hearing the cyclical fiascos of the 70’s and 80’s compared to the structural economic problems we have today.

I am all for a basic human wage because it is beyond stupid what is going on today. I don’t give a flying you know what if my taxes double. It will relieve me of the burden of directly subsidizing hard working youth who are really desperate.

There, I said it. Go to it, Boomers! Whine away about the 70’s and 80’s when you skied and or travelled to Europe while on unemployment insurance! Talk about hypocrisy!

#208 Smoking Man on 08.10.17 at 3:44 pm

173 James on 08.10.17 at 12:52 pm

Part of your post. Perhaps your daughter can help out next time.

“If you agree with him the your an idiot.”

Bahaha.

Not only do I aggree, I don’t think he went far enough.

#209 James on 08.10.17 at 4:14 pm

#208 Smoking Man on 08.10.17 at 3:44 pm

173 James on 08.10.17 at 12:52 pm
Part of your post. Perhaps your daughter can help out next time.
“If you agree with him the your an idiot.”
Bahaha.
Not only do I aggree, I don’t think he went far enough.
________________________________________
Agree spelled “AGREE”
My daughter would most definitely help you as she is the quintessential person of perfection in a world filled with a lack of decorousness, unrestrained animosity and malevolence. She would first and foremost assist you in the literary skills that you so aspire to attain but that are just out of your comprehension and grasp. She is nevertheless at this specific interval in summer camp undertaking what most 10 year olds like to do, chasing butterflies and catching frogs. She can dream and she has a whole life ahead of her. You my friend are timeworn and the end is nigh.
Enjoy the South as the North doesn’t need you anymore.

#210 jess on 08.10.17 at 4:14 pm

how many are employed losing money?

…”according to a report that studied the business models of 350 MLMs, published on the Federal Trade Commission’s website, 99% of people who join multilevel-marketing companies lose money.”

https://qz.com/1039331/mlms-like-avon-and-lularoe-are-sending-people-into-debt-and-psychological-crisis/
https://qz.com/1049408/becoming-a-social-media-influencer-is-the-new-unpaid-internship-and-just-as-exploitative/

#211 Smoking Man on 08.10.17 at 4:15 pm

#162 conan on 08.10.17 at 11:45 am
#125 Smoking Man on 08.10.17 at 8:21 am

Could you give us a quick synopsis of that video that you posted? Here is some deep thought music to help you out.

https://youtu.be/DGfgMzVDalw?t=10
…..

I have never loathed anyone more than I loath T2
How’s that for quick.

#212 Bonhomme Carnaval on 08.10.17 at 4:15 pm

@ #125 Smoking Man on 08.10.17 at 8:21 am

Whoa! That PoMo stuff will age you, fast!

You’re better off reading Hunter S. Thompson.

#213 Ex-Pat Geoff on 08.10.17 at 4:24 pm

To my fellow moisters still stuck north of the wall. If you are skilled. If you are educated. If you are confident in your abilities and would like to keep what you earn. Vote with your feet. Sticking around means you will be a minority shareholder in your own life (taxed over 50%). Come on down the America, it’s still the land of opportunity. Once you commit, you’ll never look back.

#214 SilverSon on 08.10.17 at 4:30 pm

#191 IHCTD9 on 08.10.17 at 1:49 pm

“Sometimes that nifty ECU sticks it to you. Like changing out the air suspension on an W211 E55 AMG.”
“Or changing out a couple direct gasoline injectors on a BMW 135i TT engine.”

This is simple – don’t buy Mercs or Bimmers. This is why I stopped getting them. I recommend that everyone research the high end stuff like Mercs, Bimmers, Range Roger, Audi, and Lexus before buying them. Either me or one of my friends have had all these kinds of cars and in every case the dealer has his hands in the owner’s pockets throughout the lifespan of the car. If you still want to buy them anyway, then do so knowing full well that the dealer will have his way with you sooner or later. My advise is simply don’t buy them – it’s not a requirement in life to have a luxury car. I find it’s a relief not having one.

#215 NoName on 08.10.17 at 4:39 pm

You want to pilot, try glider! Even chakoslovakian blank from mid 70s with instructor is unbelievable. But german dg505 is thing to put on bucket list near the top.

#216 april on 08.10.17 at 4:41 pm

#205 – You believe the Real Estate Board spin?

#217 SimplyPut7 on 08.10.17 at 4:42 pm

#140 Are you kidding me? on 08.10.17 at 9:20 am

You are almost as delusional as the boomers with large mortgages and no savings/pensions who think they will be able to stay in their homes in retirement and have enough cash to pay their monthly expenses.

Many people in the GTA, took their houses off the market and are waiting to list their homes after the long weekend in September; and now I hear realtors say the real test will be next March to see if prices come back – I thought September was the real test?

For the boomers, unless you have savings and a defined benefit (not a defined contribution) pension to go with your OAS and CPP, you may not have enough money to stay in your home in retirement. It’s not easy to find a job after the age of 60 to supplement your retirement income; unfortunately age discrimination is a real problem in our society. Your HELOC or reverse mortgage can only cover so much.

A lot of commenters on this blog seem to be birds of a feather and save for a rainy day and are prepared for retirement. But how many of your boomer friends, family and coworkers can say they have enough money to stay in their homes for the next 25 – 35 years after retirement at 65?

They can’t eat their homes and trying to sell their house at a certain price, to fund their retirement doesn’t always work – just ask the people in Toronto.

#218 OttawaMike on 08.10.17 at 4:47 pm

James

Why are you so mean to Smoking Man?

#219 NoName on 08.10.17 at 4:51 pm

#136 Reality 1 on 08.10.17 at 8:58 am

something better than flying gliding. Try glider, usually there are some aero clubs around take people for up in glider around, generaly in check made Blanik, ask do they have german dg505.

definitely something to try!

#220 SilverSon on 08.10.17 at 4:57 pm

#207 Graeme on 08.10.17 at 3:41 pm

“I just do the math. Entry level ‘homes’ where I live start at 400,000.00. Rental space is in such demand, a tiny room in a shared house starts at 600.00. Renting a dumpy house (there are no condos) will run you at least 2,000.00 a month, if you can find one.”

Your math is correct, but home prices have, in large part, been driven this high because of the need to “have it now at any cost” attitude of those that buy them (along with the availability of cheap credit and overall lack of discipline when it comes to buying within one’s means). House horniness is what Garth calls it I think. It’s a very recent problem in the GTA anyway because up until July 2016 I was renting a 1200 square foot house for $1120 per month that was 25 minutes from Toronto International Airport. I left there for work reasons, but landlord immediately changed the rent to $2500 per month when I left (just because he can).

Anyway, people just need to stop worrying about buying houses – they’re trying to put out the fire by pouring gas on it. That said, it’s a shame it’s become so bad for the millennials that you work with that they are having trouble putting a roof over their heads when they specifically are not the ones that caused the sudden spike in housing costs. But like all millennials, they would do well to just be patient, do some financial planning, and get themselves into the best position they can in preparation for housing costs to return to something sustainable. What we have now is not sustainable – it’s far too messed up financially to stay the way it is.

#221 Tulips on 08.10.17 at 5:02 pm

#217 SimplyPut7 on 08.10.17 at 4:42 pm

They can’t eat their homes and trying to sell their house at a certain price, to fund their retirement doesn’t always work

—————————————————-

I have some boomer friends who are just a few years into their retirement (which they were forced into simultaneously at the age of 60 and 70 due to health reasons). They are very secretive about their finances, but they recently started asking me about how reverse mortgages work. They don’t buy the sell/invest/rent idea even though I rent a much nicer place than they own, at a fraction of the cost. But nonetheless, reverse mortgages could be the way of the future for most of these boomers. Sucks for their kids who are left with nothing at the end, but the kids should be used to that.

#222 Lee on 08.10.17 at 5:17 pm

#217,

The government is really going to have to do something about age discrimination in employment. When people were having kids at 18, by 60 your children were not in need. There is no shortage of 60 years olds today with 15 year old kids, not to mention 30 year old kids, who still need some help.

#223 Dissident on 08.10.17 at 6:46 pm

#154 IHCTD9 on 08.10.17 at 11:15 am

Completely missed the point. What a worthless comment.

– “got any stories like that? (where the millennial moves out of the 900 sq ft box)”

a) sure;
b) if they could afford to move out of the ‘900 sq ft box’ in the first place…which is why we’re here discussing the overheated housing market.

#224 Reality 1 on 08.10.17 at 7:11 pm

to # 219 NoName

Good suggestion – for someone else.

Lost a second cousin in a glider accident 30 years ago – real tragedy for the family.

Never interested after that.

I also don’t like powered light aircraft lke Cessna 152 and 170. The smallest I go now (unless no alternative) is a King Air turboprop with me in sitting nervously in the back – they won’t even let me see the cockpit (LOL)

You considering that Vespa / motorbike ride ?
Warning – its addictive – just ask Garth, he’s been riding a long time.

#225 natrx on 08.11.17 at 11:39 am

As a homeowner, when rates go up, we cut back on certain things. That $450 family cottage rental weekend we were thinking of to Sauble Beach (also hoping to stop by your Store on the way up)? We can do just as well at home and our local park. Maybe just a day trip and picnic out to Cobourg.

That new door? We’ll just stick with the current one for a lot longer. Our tired original 80s en-suite update to walk in shower? We’ll just keep the current one more tidier. Sure there are many people stretched, but unless rates go up 2% or so, many will cut back on planned luxury/discretionary expenses. Yes, it’s negative, like what happened around 2013 when rates trended up and froze the market. But many will get by barring any big job losses.

As a variable rate payer for 10 years, the differential between variable and fixed has actually allowed probably 10s of thousands in interest rate savings too.

#226 Shawn on 08.11.17 at 12:16 pm

It’s time to underweight international and Canadian equities and overweight the S&P500 and Nasdaq.

Buy USD also.