Orange crush

Poor Van. What a perfect storm brews. According to high-flying local brokerage Angell Hasman, it’s already here. Next week it gets worse. After that, the world-famous stoner West Coast smirk may be gone foreveh.

Here are some facts AH’s clients recently received under the headline, “The Truth about the Real Estate Market in 2017.” And what a truth it is… completely at odds with the meme carried by the mainstream media.

  • Total sales in West Van were the 3rd lowest since the 1980s. In North Van, the 5th worst year in three decades.
  • For thirty years sales on the West Van waterfront averaged 21 annually. Since the summer of 2016 there have been only 7. Gulp.
  • Selling prices are down between 10% and 12% this year
  • In January an average 54 houses sell in West Van. This year there were 3.
  • In North Van monthly sales have dropped from an average of 88 to 11; in Vancouver West, from 121 to 18.

What’s caused the collapse? “Government interference,” says AH. “The goal has been to drive the market down.” The anti-foreigner 15% tax was botched, he adds, while the property purchase tax was being raised. “The NDP and Green Party are now in power and Chinese buying has almost stopped. The real estate board has failed to inform the public or the government of how bleak the market really is.”

But it’s not just Chinese caught in this tax trap. “One example of tax costs: A lovely English lady lived here for years,” says the brokerage, “and was also a resident of England.  She made an offer of $2.5 million on an apartment and the total tax was $428,000.”

Tax, tax and more tax. It’s the orange crush way to squish a market, and next week’s NDP budget will bring more with the advent of a province-wide speculation tax. It’s the kind of levy that when used in Ontario decades ago, killed house sales and blew up prices virtually overnight.

The Left Coast Dippers made it clear in the Throne Speech this week that it’s coming. “Safe, decent housing is a right that is under threat by speculators, domestic and foreign, who seek windfall profits at the expense of people who work, live and pay taxes in B.C. The first step must be to address demand and stabilize B.C.’s out-of-control real estate and rental market.”

The specifics will come on Tuesday, but word is the tax will be a straight percentage of the value of a property if held by an owner (or related entity) for less than a specified period of time. Add that to the empty houses tax, the foreign dudes tax, the property tax increase, the federal stress test and rising mortgage rates. This is more than any market can take, especially one held together with the gossamer threads of FOMO and propaganda.

“I have heard some true horror stories on valuation declines in the high end,” says a long-time YVR financial advisor to the well-heeled, “but given the fact that the real estate industry keeps all the local newspapers, magazines and radio stations in business with advertising, it’s all Fake News when it comes to facts. It’s obscene that consumers can’t get data to make informed decisions as you have stated so many times.  Can’t wait for Zillow to show up!”

By the way, this is what the local realtors said in announcing results for the same month Angell says was a total bust:

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,818 in January 2018, a 19.4% increase from the 1,523 sales recorded in January 2017, and a 9.8% decrease compared to December 2017 when 2,016 homes sold.

Last month’s sales were 7.1% above the 10-year January sales average. By property type, detached sales were down 24.8% from the 10-year January average, attached sales increased 14.3% and apartment sales were up 31.6% over the same period.

“Demand remains elevated and listings scarce in the attached and apartment markets across Metro Vancouver,” Jill Oudil, REBGV president said. “Buyers in the detached market are facing less competition and have much more selection to choose.”

But, poor YVRlanders, don’t just blame Comrade Horgan or the Fake New Realtors. Save some hate for the former Christy Clark government’s nutty idea of making houses more affordable by giving people downpayments. A study by the provincial real estate association’s economist (Cam Muir) discovered the obvious – these interest-free and payment-free loans encouraged moisters to spend more, forcing real estate prices higher. In the first nine months of last year, it says, the scheme added 0.55% to the price of an apartment and 0.57% to townhouses. Yes, that’s only about $4,000, but it helps illustrate a simple fact: government just makes stuff worse.

Any doubt should vanish Tuesday.

228 comments ↓

#1 NoName on 02.14.18 at 6:12 pm

Addendum to my 1st post about tax cuts down south, tha I made some time ago when I stated (this sounds sirus) that last tax cuts companies used 90% of tax saving for share buybacks, today I learned that 90+ billion is allocated of trupm tax cuts is already allocated for buyback buy publicly traded companies.

#2 mitzerboyakaQueencityKidd on 02.14.18 at 6:18 pm

yes, sometimes emotion can try and hide the facts

#3 Zapstrap on 02.14.18 at 6:22 pm

We have a glorious day outside today here in the LM. There is actually sunshine here … I was beginning to think it wasn’t coming back. It’s not all bad. Depends how you look at it.

#4 Musty Basement Dweller on 02.14.18 at 6:25 pm

“It’s the kind of levy that when used in Ontario decades ago, killed house sales and blew up prices virtually overnight.”
That’s interesting, hadn’t heard of that. Does anyone recall what year that came in and how long it lasted? I assume they did it for the same reasons as BC right now?

#5 The Spillover on 02.14.18 at 6:26 pm

West Vancouver is not the rest of Metro Vancouver, the Fraser Valley, Kelowna or South Vancouver Island.

The spillover effects of the Vancouver market have driven prices up double digits in all these regions and price gains have not moderated; inventory has not swollen; and sales have far from collapsed. It remains an affordability crisis in these regions regardless of some softening of sales in a historically bubbly city of West Vancouver.

The BC government has rejected a foreign buyers ban and has outlined their desire not to hurt ‘hard earned equity.’

There will not be an Ontario style Fair Housing plan coming out that will prompt a correction, as BC has already seen what has happened.

Poll after poll shows that bold and decisive action on housing is wanted by the population – whether that arises next week is yet to be seen.

#6 Penny Henny on 02.14.18 at 6:27 pm

Van sales on high end properties way down and this has nothing to do with less foreign buyers. Hmmp

#7 Capital Controls on 02.14.18 at 6:28 pm

I agree Garth, governments did make it worse by removing capital controls decades ago. Time for governments to implement capital controls again for the sake of the majority.

#8 Vancouverite on 02.14.18 at 6:29 pm

Another major problem here in van is the number of people not declaring foreign income. The amount of money I pay in tax while other people make all their income overseas, but take all of our social benefits is ridiculous. The NDP have promised to crack down on tax fraud and everyone should be emailing their MP and mla

#9 I’m stupid on 02.14.18 at 6:29 pm

I do work or have done work for all the largest builders in the GTA. Many are telling me that sales have fallen off a cliff, many projects have been cancelled, prices are being slashed to try and get some sales. I was offered a home at a 40% discount from a small builder last week. It’s going to be one epic ride down.

#10 On the other hand on 02.14.18 at 6:30 pm

On the other hand, the hard (scientific as opposed to anecdotes) numbers show a different narrative.

Today, Teranet reported: Vancouver prices up hard from previous month.

https://housepriceindex.ca/2018/02/toronto-index-stopped-trending-down-in-january/

I guess both can be true:
Fewer homes sold, at higher prices.

Probably the last buyers rushing in to beat the OSFI deadline.

#11 YVR Comment on 02.14.18 at 6:36 pm

Garth,

This is all good, local citizens who have patiently waited for so many years to purchase a piece of shelter have been pushed back due to flipping, speculation and all the Black Money coming from overseas. I moved to Canada from a 3rd world country for better life, came with just $ 10,000.00 here , worked for few years and eventually bought a business which employs about 7 people, however to date I have not been able to afford a small place for myself and the primary reason for this the overseas money (with no taxes paid) that has made into the system. If my business makes money locally in Canada, for every $ we make what you get in your pocket is barely 55-60 cents. I am all open for challenge and competition, however when you get foreign money into the system on which no taxes are paid, we are not on even playing field. Once again, I come from a 3rd world country and I know all about Black Money and how it is moved and hidden by purchasing assets such as Houses , Jewelery etc:, seen it all. I have 4 eyes and big ears. I have seen it first hand in YVR and this article below summarizes it all:

http://www.macleans.ca/news/canada/the-battle-to-clean-up-b-c/

Please publish my comments, if you feel the need to edit it go ahead and do it.

Thanks for your tireless effort in bringing us the latest update day after day. All the best.

#12 TheSecretCode on 02.14.18 at 6:38 pm

Out-of-control real estate and rental market being publicly claimed by the .gov?

Get ready for one big concrete hammer to come down next week…

They have the numbers and know…that everyone working for an honest living has been screwed in Vancouver, now Victoria and starting to show in Kelowna…and leaving these areas.

Friday nights are dead downtown Vancouver. Yes there are cars and people, but no busyness anymore. Imagine being able able to hear a skateboarder from two blocks away at the Vancouver Library at 9pm on a Friday night…strangely quiet…ghost town like…never seen anything like it dt Van in 20 years. Not a one time thing been seeing it for awhile…peaceful sanctuary where you can meditate in silence now.

Well done Moonbeam.

#13 A Yank in BC on 02.14.18 at 6:39 pm

“The anti-foreigner 15% tax was botched, he adds”

Meaning that people easily found a way around it.. I assume. Entirely predictable.

Actually he said the opposite. – Garth

#14 TheSecretCode on 02.14.18 at 6:40 pm

This just out and Macleans did it again…

Metro Vancouver’s real estate market is now a dystopian tableau of panic buying, tax fraud, property flipping, overseas pre-construction condominium sales, stone cold speculation and elaborate, multiple-account money transfer rigmaroles that are the conduit of choice for drug cartel tycoons.

Not even the heaviest regulatory hands at the controls of the Chinese Communist Party’s surveillance state seem capable of shutting the networks down.

http://www.macleans.ca/economy/realestateeconomy/andy-yan-the-analyst-who-exposed-vancouvers-real-estate-disaster/

#15 bubu on 02.14.18 at 6:40 pm

How can a foreign student get a mortgage now if B-20 requires qualification also for those who put 20% down payment? How can a bank apply GDS and TDS to somebody with no income?

#16 Rooster on 02.14.18 at 6:40 pm

#260 Lost…but not leased on 02.14.18 at 3:06 pm
#253 Rooster…
Is your life’s mission…essence…being…spirit (and possible lack of “hen”..”chick” porn) based around starting nit-picking p*ssing matches ?
Warning labels have been on cigarettes for years….the health impact has been known for decades. Duhhhh
************

No need for porn at my age, I just watch the hockey (2-nite @10 pm- CBC). I don’t want to diss the USA, but I think the future for those hos is bleak.

Did you not write the following :
“… as hospitality staff at restaurants etc were exposed to 2nd hand smoke which had already been shown to be a carcinogen (BTW..a while back I read the natural”organic” tobacco is not the main problem, it’s the numerous chemicals used to grow tobacco.)”

Did you not mean to imply that “natural organic tobacco” is not carcinogenic, based on “something you read”? If you think that my quest to dissuade some moron from enjoying a free-range butt is nit-picking, then I’ll continue to stream my morning wasser in your general direction.
If I was mistaken, and your poor sentence structure is the issue here, then I leave you (and all the other un-fried chicken-littles) with a song:

Where there is desire, there is gonna be a flame
Where there is a flame, someone’s bound to get burned
But just because it burns, doesn’t mean you’re gonna die
You gotta get up and try, and try, and try
(Pink)

#17 Joe2.0 on 02.14.18 at 6:42 pm

Immigration remains high.
Locals moving out of the city because of high RE prices.
Quote from today’s Province newspaper.
Join the dots.

#18 TheSecretCode on 02.14.18 at 6:43 pm

Andy Yan is some kind of hero…the guy deserves as much recognition as possible.

Moonbeam, Rennie and Christy tried to shut him down…

73% of homes are $1 million or more deep into the suberbs of the lower mainland past langley..

“But what those maps don’t do is they don’t factor in transportation costs,” Yan said. “The top two expenditures of any Canadian household is shelter and transportation. God help you if you factor in child care. The whole map might as well be red. A number of factors have all come together to produce this catastrophic situation, but what was a small concentrated pattern in the west side of Vancouver has now metastasized to hit every single part of the region, and it’s similarly metastasized into the rest of the economy.”

http://www.macleans.ca/economy/realestateeconomy/andy-yan-the-analyst-who-exposed-vancouvers-real-estate-disaster/

#19 Nik on 02.14.18 at 6:43 pm

Less than 1% of households benefit from a decline in the high end segment so West van sales trend is immaterial. I don’t understand why Garth spends so much time on this segment. A 2 bedroom condo in New west 1000sqft goes for $700-$800k today compared to $400K three years ago. And yet condo sales are up 30%?? The provincial program that you refer to was used by about just 1200 households in th first threee quarters. That is hardly an issue we need to be worried about. Top reasons for this insanity in the market1. Home values appreciating and people using helocs to buy their investment property.2. Presale condo stock marketed in foreign markets driving additional demand 3. Airbnb taking up a big chunk of supply. 4. Purpose built rentals almost don’t exist.

Yesterday the bc realtor association’s “economist” was waxing eloquent about how great the BC economy is and how that is driving the prices. Now how he can correlate 2% wage growth with 30% increase in housing price is beyond me. The greed of developers, realtors and politicians just makes me sick.

#20 Vancouver Loser on 02.14.18 at 6:43 pm

I’ll believe it when I see it . . .

As someone who actually lives in YVR, I’ll bet the average working family sees approx. zero change. I find it hard to have any sympathy for “the nice English lady” dropping 2.5 million on an apartment; her taxes being a first world problem that the 99.9% of the rest of us will never experience because we don’t have 2.5 million (or even a million) to begin with.

I have said it before, and I will say it again . . . a 25% correction on prices that have bloated over 100% in recent years isn’t actually a “win” for the buyers out there. And if the 25% correction only really affects the high end of the real estate market, the 99.9% of us won’t even notice.

#21 maya on 02.14.18 at 6:45 pm

The Real Estate was goosed by unnecessary government intervention. I hope it will crash by govenment intervention again.

Either way people who will be victim will always be the middle class like us–not the very poor nor the very rich.

#22 Smoking Man on 02.14.18 at 6:46 pm

Ok Deplorables sign up and vote in Ford and let’s make the Toronto Star suisidle again.

https://secure.ontariopc.com/Partyjoin

#23 Screwed Canadian Millenial on 02.14.18 at 6:47 pm

Vancouver is a great example of how boomers only care about themselves and completely destroyed a once livable city, for future generations. The sheer malice and greed of a single generation has made life nearly impossible. Never has so much been ruined for so many, by so few.

#24 Doug t on 02.14.18 at 6:49 pm

For the love of gawd bring down victoria by 30% and wipe the smug off some people

RATM

#25 TheSecretCode on 02.14.18 at 6:53 pm

Come to BC Garth and check the housing out first hand!

Up and coming individuals looking to enter the housing market cannot break even making the median income in any town in BC that has a university anymore…the rents hover around 55% of gross earnings.

Vancouver isn’t the best place on earth when the only affordable accommodation is a box on the sidewalk of E.Hastings.

#26 Democracy Is Mob Rule on 02.14.18 at 6:53 pm

next week’s NDP budget will bring a province-wide speculation tax. It’s the kind of levy that when used in Ontario decades ago, killed house sales and blew up prices virtually overnight.

That’s exactly why people without houses voted NDP.

#27 BK on 02.14.18 at 6:54 pm

Well, whatever the catalyst I hope Vancouver housing and speckers gets crushed. Every local that makes “good money” has the right to home ownership. This is not even close to the case in Van.

#28 YVRpeasant on 02.14.18 at 7:00 pm

Well, the NDP have to do something. At least they are trying.

Whether you blame it on realtors, zoning laws, Chinese dudes, the Bank of Mom, money launderers, HGTV, etc., it’s clear that the BC Libs policy of doing nothing didn’t help the locals just looking for a roof over their head.

Letting the market sort itself out sounds great in theory, but it won’t happen before a good number of people are overcommitted and therefore ruined, or have just left out of frustration.

#29 Nik on 02.14.18 at 7:06 pm

#23 SCM

Why do you blame just the boomers? Gen X and millennial share the blame as well for driving up the demand. End of the day government policies need to solve this crisis and that won’t happen as long as real estate money is being funneled to The politicians. I bet the budget will have tame measures to decrease pricing and lot more emphasis on “affordable housing “. I don’t think even the working poor believe that affordable housing will yield any meaningful benefits. Not one of The liberal leadership candidates mentioned housing as top 3 issue. What more can you say about this corrupt lot of politicians who are awash with real estate money.

#30 $400K on 02.14.18 at 7:07 pm

We sold out in May 2016 from North Vancouver. My estimate is that homes are down about $400K for a home that may have got $2.1M then to what it is now (based on what I see selling). That’s about 19% down at face level; and would require a few percentage points more to get it back up to where it was. We were definitely in the silly money space when we sold out. My guestimate is that a $2.1M home in May 2016 will return to $1.2M over the next years. Once the cracks make it through to the populous, the hurt will accelerate.

#31 TheSecretCode on 02.14.18 at 7:10 pm

Those same Van connected developers like Rennie are over Kelowna along with the current unregulated pre-sale condo market =

Ella project in Kelowna – 2 bdrm 859k

The new level of price per square foot on all the new condo towers hovering around $630 per square foot.

Remind me again who has bought these already 90% sold out projects in Kelowna?

The .gov knows and they are now admitting it and realizing that BC could become the first ghost province in Canada.

Would anyone like to see Ren, Mbeam and Crusty face criminal charges?

https://www.realtor.ca/Residential/Single-Family/18802619/809-1588-Ellis-Street-Kelowna-British-Columbia-V1Y8L1-Kelowna-North

#32 Spock on 02.14.18 at 7:11 pm

Interesting article today GT.

Not sure why this learned scholar SCM who spews the same tirade towards Boomers every single day is allowed to post even 2 times.

I am not anywhere close to a Boomer in age and getting tired of waiting for SCM to provide proof which was requested few months back.

And why is no other country willing to accept this clown? We are all waiting.

————————–

#23 Screwed Canadian Millenial on 02.14.18 at 6:47 pm
Vancouver is a great example of how boomers only care about themselves and completely destroyed a once livable city, for future generations. The sheer malice and greed of a single generation has made life nearly impossible. Never has so much been ruined for so many, by so few.

#33 Joseph on 02.14.18 at 7:13 pm

This is all great bad news for real estate but home prices are still at insane levels. Maybe the Uber expensive ones have come down a bit but anything up to 1.2 million the prices are sticky. Nothing is affordable no matter how many “gulps” you take Garth.

#34 Spock on 02.14.18 at 7:14 pm

Regarding cap rates that GT talked about – I checked with around 12 clients and no one has cap rate even close to 4%. The lucky ones are at around 1-2% and most are completely underwater.

Forget taking the lost opportunity on the down payment into account. Better to buy an apartments REIT.

Pure Family REIT (RUF.UN) and Northview (NVU) and Killam are good value currently.

I am sure wild Bill will bail out all the folks who rushed in as he would really like to help the middle class.

#35 Price Gains! on 02.14.18 at 7:14 pm

These price drops are a joke! Here are two example of a home in Toronto. Look at the price gains!

https://toronto.listing.ca/55-wenderly-dr.htm

https://toronto.listing.ca/34-euclid-ave.htm

Foreign buyers tax will have zero impact unless it is 50%+ when buying and 50%+ when selling

#36 Demographics is Destiny on 02.14.18 at 7:15 pm

DELETED

#37 SoggyShorts on 02.14.18 at 7:19 pm

#23 Screwed Canadian Millenial on 02.14.18 at 6:47 pm
Vancouver is a great example of how boomers only care about themselves and completely destroyed a once livable city, for future generations. The sheer malice and greed of a single generation has made life nearly impossible. Never has so much been ruined for so many, by so few.

*****************************
Didn’t your near-mindless attacks on boomers usually come with links?
Where are the stats proving that all the specuvestors were/are boomers?

#38 Leo Trollstoy on 02.14.18 at 7:21 pm

Andy Yan… such a fraud

Good for him

#39 waiting on the westcoast on 02.14.18 at 7:23 pm

helps illustrate a simple fact: government just makes stuff worse…. Garth

~~~~.

So true!

SCM – why does my autocorrect always push SCAM… ;-)

Your cry baby attitude demonstrates why you will likely never be a success. I’m an early gen xr and we have had to be the tail of
the dog for a long time. We adapted and we found our niche. We probably also contributed to some of the problems and hopefully some of the solutions.

Forever complainers will never solve any problems. Best of luck… Hope you’re BF has a strong yoke to carry you to greatness.

#40 Nonplused on 02.14.18 at 7:24 pm

Just wait until they try and bring in a universal basic income. There is no way to do it without sending tax rates for working people higher.

Just once I’d like to see someone get elected that could do basic math. Oh wait, Garth got elected once. Ok, I’d like to see more people that can do math get elected. But it won’t happen because the majority of the electorate can’t do math either. I blame the schools. This “new math” thing where students are encouraged to “guess” just doesn’t work.

#41 tccontrarian on 02.14.18 at 7:28 pm

What’s caused the collapse? “Government interference,” says Angell. “The goal has been to drive the market down.”
+++++++++++++++++++++++++++++++++++++

But don’t forget that it was “Government interference” (with artificially low interest rates), that fanned the flames of this asset bubble (and others), in the first place!

Epic collapse in YVR RE is almost certain. Smug faces will be replaced by panicky ones – not a moment too soon!

TCC

#42 Glengarry Girl on 02.14.18 at 7:30 pm

Interesting, I wonder how People will react if housing prices come down.

http://www.windsorstar.com/health/local-health/housing+anxiety+drives+residents+seek+professional/16500325/story.html

#43 theoryAndPractice on 02.14.18 at 7:32 pm

“… Save some hate for the former Christy Clark government’s nutty idea of making houses more affordable by giving people down payments. …”
————————————————————————
I have checked the link for BC.
So the max purchase price is 750K , that requires 50K down and buyer must put 25K and plan supports max 25K. No repayment is required for 5 yrs.

….and What is the origin of 25K support money? (color-printers or collected-taxes )

#44 waiting on the westcoast on 02.14.18 at 7:33 pm

#24 Doug To… Raging against the Victoria machine… ;-)

You may recall that I recently moved back to Canada and specifically. I rent a house near UVIC. My landlord who is a great guy tried to sell last spring for around $1.1-1.2M and didn’t so he put it up for rent.

I pay $3500 in rent. He called me to ask if I would be interested in buying this year for 1.39… no, advise when Realtors arrive and I will find a new place. The outlying areas like Victoria and The outer Fraser Valley are peaking now… It’s over, watch the next 2-3 years. He bought for high 9 hundreds and needs to do at least 1.25 just to break even…

#45 Millenial-falcon on 02.14.18 at 7:34 pm

Talk to some realtors from anywhere other than the luxury markets in Van, sales and prices are hot. Burnaby new west Langley surrey east van maple ridge Coquitlam Port Coquitlam. Condos are bidding wars.
Sorry Garth not fitting your narrative

Of course it does. There are two markets – kids (who sadly know no better) buying condos, and experienced buyers buying nothing (because they know better). – Garth

#46 Hajrin on 02.14.18 at 7:37 pm

Received from my millennial daughter & always wanted to ask for opinion if BC Property Tax Deferral affected prices there?

http://www.macleans.ca/economy/realestateeconomy/b-c-boomers-have-lost-their-moral-authority-to-judge-millennials/

#47 chopstix on 02.14.18 at 7:38 pm

condo prices in Scamcouver are still nuts @ $1500+/sq ft.
they’re not going down anytime soon as specers and overseas presales are pushed.
Maclean’s Magazine today:
”Andy Yan, the analyst who exposed Vancouver’s real estate disaster
Hated by politicians, speculators and money-launderers, Andy Yan’s data on Vancouver housing has earned him the right to say, ‘I told you so’ ”

#48 bring_it_on on 02.14.18 at 7:40 pm

Couldn’t resist commenting on this on. As a late boomer with a paid off place in KITS, I really do hope that these aggressive changes actually do bring property prices down, and that the Gov’t goes after systematically the segment of society that have under-reported income from abroad. This has been a problem for 15 years in this city. I have no problem when my house decreases in value as it hopefully means that my kids (and their friends) have a chance to live in this city long-term. A large correction is needed, given that the liberal gov’t did nothing for 15 years to prevent run-away speculation. A proud Green (and NDP) supporter.

#49 crowdedelevatorfartz on 02.14.18 at 7:40 pm

@#23 SCM

Deep down I think you have some sort of freudian lust for Boomers.
You hide this lust with statements of disgust, hatred, envy, jealousy.
But, when the rest of us step back and look.
Its plain to see.
“So! You vant to make luff to your Muzza Ja?”

#50 crowdedelevatorfartz on 02.14.18 at 7:44 pm

@#26 Democracy is Mob Rule as Opposed to a dictatorship….

“That’s exactly why people without houses voted NDP.”
+++++++++++++++

Most people didnt vote for the NDP.
They voted against the Liberal corruption machine.

#51 Linda on 02.14.18 at 7:46 pm

‘Safe, decent housing is a right’ – well now, tell that to the homeless hordes, or anyone renting on the lower end of the economic scale. So is the government plan to provide such housing, or is the aim to ensure landlords do so? Plus, all these housing related taxes are being used to do what exactly? Pay for low income housing/ending homelessness or just thrown into general revenues, some of which presumably is spent on low income housing & ending homelessness? If the latter, then no matter how much socially conscious makeup you slap on that tax, it is still a tax & one that targets ‘the wealthy’, wealthy apparently being anyone who can afford to own a piece of property.

#52 Sebastien on 02.14.18 at 7:48 pm

What if the NDP gov’t next week just introduces a 2% “worldwide income based” property tax on the druglords and naked officials living in YVR?

The market wouldn’t budge a bit if that were to happen. The criminals would just pay it and shut up.

#53 John Dough on 02.14.18 at 7:48 pm

#1 NoName on 02.14.18 at 6:12 pm
Addendum to my 1st post about tax cuts down south, tha I made some time ago when I stated (this sounds sirus) that last tax cuts companies used 90% of tax saving for share buybacks, today I learned that 90+ billion is allocated of trupm tax cuts is already allocated for buyback buy publicly traded companies
—————————
When John Shad (SEC Chair) told Ronnie Reagan that the formerly illegal buybacks would trickle down, Ronnie forgot to ask what exactly would trickle down.

$90 billion is peenuts, they’ve been buying back ~ $400 billion a year since 2005. “They” being the corporate executives with stock options who gain the most from buybacks.

Details here:
https://www.zerohedge.com/news/2015-07-10/how-sec-engineered-every-stock-market-bubble-1982

No business of mine how they want to spend their money, but now 30% of buybacks are funded with debt issuance.
https://ca.finance.yahoo.com/news/share-buybacks-debt-funding-000000439.html

J-j-j-j-junk Bonds
Where’s your shame?
You’ve left us up to our necks in it
(Bowie)

#54 Dan.t on 02.14.18 at 7:53 pm

I find it sad. BC is coming out as one of the most corrupt government. The greed, corruption and blatant disregard for it’s citizens is actually quite impressive but on the flip side…

no one seemed or seems or seemed to care the last 16 years because those (and what is homeownership rate in canada? BC? like 75% or more) home owners, were also getting rich. Everyone knew what was going on but it is only now…

Now that younger generation has to leave or live in mouldy basements or rent for insane prices that they are taking to the streets?

Sounds about right. As a society, as long as i’m not getting screwed, leave it alone- that is the world we live it. It has to go to extremes to change anything now a days.

The real estate cartel, lies, foreign money, laundering, corrupt politicians, scams, immigration scams bla bla, known for years, but no one wanted to discuss it because everyone was getting rich on “hard earned equity”.

About time the younger generation spoke up. Boomers silents as a baby mouse ( they made out like bandits). But really, I don’t expect anything to change. I guess power really does corrupt- where is the formal liberal leader hiding – in a China mansion?

Who cares, really it is on every BC resident. No one speaks up, everyone lets it get to this point then accept the normal. Average people can’t live or buy anywhere near YVR. People are massively divided, no more communities, or are do Van residence like the way things are going? Now they are demanding change? Oh, right, just those who didn’t benefit from the all the poor policies that created this mess. Solution is…Deal with it. Don’t expect this to make the cut. Edit away.

#55 Bob Dog on 02.14.18 at 7:54 pm

Canada is a 3rd world country with clean streets.

Its time for a regime change. Not just an election that swaps out the figurehead puppet. I mean a complete overhaul of every part of the government. I estimate 60% of government jobs could be outsourced.

#56 M on 02.14.18 at 7:55 pm

..housing bust.. i have a tear in my eye.
Responsible for this are the central banks that printed money, governments that printed the IOUs and the morons that spent their miserable days on something that’s worth 15 times their meager take home.
..the rest is noise… and the crash of the century. Both good.
On the way, lots of people will learn new things (remember 2008 when “housing can’t go down everywhere at the same time” ?? :) )… new things like in…”volatility is NOT external to the system but a player in the field”…the mith of “balanced portfolio” in extremely leveraged markets , etc , etc ,etc.

..but..it can’t happen in Canada :)

PS Oh yeah… and the myth of corporations making lots of income…by buying their own shares (about 35% of the market :) )

#57 CanadianOne on 02.14.18 at 7:57 pm

Insider trading is well, alive and thriving

https://www.economist.com/news/finance-and-economics/21736561-one-study-suggests-insiders-profited-even-global-financial-crisis-another

#58 M on 02.14.18 at 7:59 pm

&#53 John Dough
With preferential interest rates…2.5% pop the stock 10%. Manager looks like a million bucks and his bonus 10X that.
All under the benevolent view of all. Nothing illegal about that. The bet is Uncle Sam will come to rescue.

PS Buybacks are in the trillions

#59 Smoking Man on 02.14.18 at 8:00 pm

#23 Screwed Canadian Millenial on 02.14.18 at 6:47 pm
Vancouver is a great example of how boomers only care about themselves and completely destroyed a once livable city, for future generations. The sheer malice and greed of a single generation has made life nearly impossible. Never has so much been ruined for so many, by so few.
……

It’s getting old. Boomers again. Your going to start losing fans.

How about a post on why steletos rock and how good you look in them.

#60 Timmy on 02.14.18 at 8:01 pm

You are blaming the NDP? lol…Corrupt Christy and her sleazy Liberals created an environment which encouraged massive money laundering through real estate. They buried a report highighting the concerns of casinos being used for money laundering. Read David Eby’s speech. NDP party are saints compared to those Liberal bozos, who helped make Vancouver an unaffordable city.

#61 Caleb Landry on 02.14.18 at 8:03 pm

Look – the nonsense out here is absolutely off the charts.

BC’s main export market is real estate. The PTT brings in more money to BC than oil royalties do in Alberta. It’s absolutely destroyed normal, working, middle and upper income professionals in Vancouver. It’s a totally distorted reality and the NDP is doing their MORAL and ETHICAL duty in forcing the dirty money out of the system. Canada has become a haven to offshore speculative capital that is tearing our society apart at the seems. It needs to END. RIGHT NOW.

Fine. But you did it to yourself. – Garth

#62 M on 02.14.18 at 8:06 pm

..it’s interesting how it actually works. When crap hits the fan…the pointing fingers game begins.
It’s like no mirrors were invented..

#63 crowdedelevatorfartz on 02.14.18 at 8:08 pm

@#46 Hajrin
The article was written by a Millenial renter.
No bias there.

Tell your daughter to borrow even more money for her tuition because Starbucks has raised its criteria. “BA’s need not apply…….

#64 Stacey Cronin on 02.14.18 at 8:14 pm

#44 Waiting on the Westcoast

We too are “waiting on the westcoast” and rent a house near UVIC – came from Vancouver last summer and rent an ok house for $3300 a month. I think 2018 is the year we will see changes in house prices as Oak Bay went down 6% and I’ve noticed nothing moves over a million. As much as I like this city it just doesn’t warrant the admission price

#65 Happy Housing Crash Everyone! on 02.14.18 at 8:16 pm

You dirty filthy lying POGarbage SHYSTERS. You disgusting vermin will sell out your own
pfamily for a dollar. You have no moral fiber and your evil oozes out of your pores. Your lies have ruined Canadians from coast to coast. You fight to kept facts hidden from the public. You have no shame you SHYSTER [email protected]

P.S I hate SHYSTERS

We get it. – Garth

#66 Ezzy on 02.14.18 at 8:17 pm

#23 Screwed Canadian Millenial

Hey dude (I assume, if not, sorry) you know, you can always buy a used Sprinter or Transit and convert them to a Tiny House on wheels, if you love Vancouverstan that much. Also, criticizing boomers for only caring about themselves is troll-bait and hypocritical.

But seriously, want some cheese with that whine?

#67 Chico on 02.14.18 at 8:22 pm

#43 bring_it_on on 02.14.18 at 7:40 pm

Couldn’t resist commenting on this on. As a late boomer with a paid off place in KITS, I really do hope that these aggressive changes actually do bring property prices down, and that the Gov’t goes after systematically the segment of society that have under-reported income from abroad. This has been a problem for 15 years in this city. I have no problem when my house decreases in value as it hopefully means that my kids (and their friends) have a chance to live in this city long-term. A large correction is needed, given that the liberal gov’t did nothing for 15 years to prevent run-away speculation. A proud Green (and NDP) supporter.

————————————————

Excellent point and one I have thought of many times when discussing the housing problem. Oh, before I go one, I lived for one glorious year on West 2nd and Arbutus, and it was grand!

We left Langley almost 2 years ago for the maritimes and it’s been great for all of us 5. While in Langley, I would wonder what the locals were bragging about when the crazy rise in prices was meaning that the neighborhoods were being destroyed because their children and grand children wouldn’t be able to afford to live there.

The saddest part of the LM is that fact that families and communities are being ripped apart due to astronomical costs of living. Our 20 year old can do basic math, and what is a young man like that going to do if he wants to strike out on his own, have a family, etc., when basic costs are so absurd?

My neighbor had his 25 year old still living at home because no matter how much he saved, he couldn’t afford to leave his parents home. My neighbor across the street, a lady in her 70’s, talked about how hard it was for people in her age bracket to sell, only to have to shell out massive amounts of money to live. Both of them were happy for us, that we were escaping the madness.

#68 ANON on 02.14.18 at 8:28 pm

We now interrupt our extraordinary popular delusion for some good old fashioned witch hunting.

#69 waiting on the westcoast on 02.14.18 at 8:29 pm

+1 to Smokey for stiletto comment…

Stacey – good luck and stuck it out. I love Victoria and I think the price point will get saner in the coming years. That said, variables have kept popping up that reduced my thoughts of correction for a few years now…

#70 -=jwk=- on 02.14.18 at 8:34 pm

@ #15
How can a foreign student get a mortgage now if B-20 requires qualification also for those who put 20% down payment? How can a bank apply GDS and TDS to somebody with no income?

There are special programs for new immigrants. When my wife stepped off the plane from China in 2007, she had 2 offers for 500k mortgage within a week. Yes, they call you and want to eb your friend, help you get settled etc. That was back when 500k actually bought something :). These mortgages are a special class, very lucrative for the banks, and almost certainly B20 exempt. Only the locals have to use B20, the others don’t. You can guess how well this is going to work for the locals…

#71 Jeff on 02.14.18 at 8:35 pm

I’m not a dipper, but it’s about time we saw leadership on Vancouver housing. We find our selves in a precarious position, where we’ve sold our future to foreign interests and crappy politicians.

Time for a change, bold change is required. Glad to hear that Horgan may have the cahoonies to make the change.

#72 Millennial- falcon on 02.14.18 at 8:43 pm

Of course it does. There are two markets – kids (who sadly know no better) buying condos, and experienced buyers buying nothing (because they know better). – Garth
———-
So experienced buyers only buy in shaugnessy, westvan and northvan ? Gimme a break , yes the luxury market dropped off after the FB tax. This is still
News ?

Detached home sales are w-a-y down right across the region. If you stripped out the ingenues snapping condos the market would be a smoky hole. – Garth

#73 Dobermanduke on 02.14.18 at 8:43 pm

#65 Happy Housing Crash Everyone! on 02.14.18 at 8:16 pm

You dirty filthy lying POGarbage SHYSTERS. You disgusting vermin will sell out your own
pfamily for a dollar. You have no moral fiber and your evil oozes out of your pores. Your lies have ruined Canadians from coast to coast. You fight to kept facts hidden from the public. You have no shame you SHYSTER [email protected]

P.S I hate SHYSTERS

———————————————————-

Makes it easy to post, just copy and paste

#74 Allan on 02.14.18 at 8:47 pm

At the end of the day, industry boards and stakeholders can point to any number of positive factors to justify further price growth, and any number of alleged inappropriate interventions by government or regulators.

But there is one fact. A large amount of the population is under pressure as their current and future wealth is being transferred to another part of the population via the mechanism of real estate.

This effectively is exhausting the potential of the current and next generation of youths, under the auspices of the country’s government. This comment is not targeting Canada, it happening in many places.

For those in Toronto and Vancouver trapped in this housing squeeze, your Anglo-sphered Londoners and Sydney-siders, they are going through the same predicament as you.

http://www.visualcapitalist.com/real-estate-bubbles-8-global-cities-risk/

It’s a big country. Move. – Garth

#75 the Jaguar on 02.14.18 at 8:50 pm

Mercy. I leave the country for a few weeks only to return and find SCM was let out of his cell again. There are no words. Bolt the doors and windows again the only remedy I suppose.
The Globe had an story today on cancelled condo projects (GTA) with purchasers left high and dry complete with “motive, means and opportunity” on the part of the developers (Perps) who pulled the rug out from under the purchasers. When one considers that story in conjunction with the comments here about fake news reports by mainstream media, and the level of indebtedness related to the housing market it really is pretty scary. When it all blows up there is going to be some serious ‘splaining to do’, as Ricky Ricardo used to say. How could so many in positions of oversight stand by and do so little? Real estate boards, government ( especially OSFI, who cannot close their eyes to issues that border financial institution governance), and especially the media. It’s like living in Chicago with Capone and the rest of the mob.
The Hauser photo is lovely. Wonder how he got Bandit to smile in such a cheshire cat like way…

#76 millmech on 02.14.18 at 8:52 pm

#45
Not buying it, I live in Langley, houses in my area relisting not moving at all. Get out look around because I do not see lots of sold signs out here, lots of for sale and open houses every weekend but no sales. Anecdotally it is because people can not get financing.
My two cents from my area in Langley

#77 conan on 02.14.18 at 9:00 pm

Tax the rich to house the poor. Or, we could think it through.

As usual, Government very late to the party. They could have built the poor modest housing 50 years ago, and then sold last year, for big dollars.

Hard to do that now at today’s land prices. Yet it is local government that plans the city. Not too hard for them to do a build that last 50 years, and put it in a spot, that is going to be worth much, much, more at that time.

https://www.youtube.com/watch?v=CpZjvbSC9_M

#78 bring_it_on on 02.14.18 at 9:00 pm

#67 Chico

I think we have the same viewpoint. I would really like that the next generation has a decent chance to set down roots in this city in the long-term. It does not mean that everyone will be able to afford a SFW in KITS on an average salary, but that it shouldn’t be a huge monumental struggle to buy some small place on the fringe of the LM (as it is now). How many years does it take a young couple to save enough $$$ to buy an 800K place big enough to raise kids in Langley? Turning Vancouver and the LM into Monaco will not help the social fabric except for the very few at the top of society.

#79 Fiendish Thingy on 02.14.18 at 9:00 pm

Happy renter in Maple Ridge waiting to vultch. I heartily applaud all these new laws and taxes. Those homeowners who bought in past few years stand to lose a lot, and will probably never vote NDP again, if they ever did, but those whose homes are paid off, or nearly so, will shrug and smile that their kids can finally afford to move out…

Detached market in Maple Ridge is stagnant, with homes sitting for months before selling, if they do sell. Hundreds of condos and townhomes coming online over the coming year; will be interesting to see how all these taxes and restrictions impact the flippers…

#80 Sexist Assumptions on 02.14.18 at 9:04 pm

Why do people naturally assume SCM is a dude? I don’t believe it has ever revealed its gender?

I personally think SCM started off as a woman and is in medically induced transition phase. But this is just an educated guess based on its writing style. Either way I think we should go easy on it out of a sense of compassion.

It (aka SCM) comes here to vent as a way to relieve the incredible pressures it must be facing from family and friends. Okay maybe just family pressures… you actually need friends to feel pressure from them.

#81 TheSecretCode on 02.14.18 at 9:05 pm

$3,300 to rent a house in Victoria? How affordable.

So, applying my 55% estimate let’s say you gross over 6k per month bringing you in line with a bit over 70k per year.

The thing is…one should not be spending over 32% of their income on housing, meaning that that house should be renting for around $1900ish.

#82 Canuck on 02.14.18 at 9:05 pm

#70

That gig is up.

As of Feb 1st CIBC discontinued its foreign income program!

No more 35% down with zero income verification mortgages.

Students be damned.

Other banks will likely follow.

Could have HUGE implications for pre-sale condos completing in the next 2 years

#83 Harsh as hash on 02.14.18 at 9:11 pm

Did no one else get a Valentine today?

#84 TheSecretCode on 02.14.18 at 9:13 pm

Same story with SFD stagnation in the interior…although it is too early to tell…as price adjustments down have been underway around the -50K price drop mark…but places still being scooped up once the adjustments happen.

There is still an insatiable appetite for debt in BC…

The only true RE market rocker will be increasing interest rates (which could be the perfect storm if rates continue increasing, considering all of the rule changes in the last year or so).

#85 Danny on 02.14.18 at 9:16 pm

Low interest rate is to blame……period …set in motion unrealistic understanding of debt.

It is too much for most people to understand…..the long term debt sentencing by whom…….the real estate Cartel.
They took their money…..laughing all the way to the bank….Why?…….because of the fools you talk about.

Fools in basic financial planning…..Not the government controls!

#86 robert james on 02.14.18 at 9:19 pm

Beware tax cheats….They are coming… http://www.cbc.ca/news/politics/cra-panama-papers-raids-vancouver-toronto-calgary-1.4535565

#87 ANON on 02.14.18 at 9:19 pm

Wife asked on V-Day: Is that a 10 year treasury rate in your pocket, or are you happy to see me?

#88 John Dough on 02.14.18 at 9:29 pm

#58 M on 02.14.18 at 7:59 pm
&#53 John Dough
With preferential interest rates…2.5% pop the stock 10%. Manager looks like a million bucks and his bonus 10X that.
All under the benevolent view of all. Nothing illegal about that. The bet is Uncle Sam will come to rescue.
————–

The kids’ futures are bleak too, but they don’t know the difference between avuncular and pedophelia.

#89 Parksville Prankster on 02.14.18 at 9:34 pm

In Parksville B.C., and, I’m confident, in a few other ‘retirement’ areas of the island, we’re seeing more and more ‘two for ones’. Basically, they sell out of the main land Vancouver area for say 2 million, and then move out to the island, drop a millski on a water front property, and pocket the rest. The ripple effect has been to escalate local property values. Retirees and service sector jobs don’t support the rapid upward pressure on local real estate, and yet, up she goes. Still affordable by lower mainland standards, but increasing none the less.

#90 maya on 02.14.18 at 9:37 pm

https://www.marketwatch.com/story/the-cities-on-the-verge-of-a-housing-bubble-san-francisco-isnt-one-of-them-2018-02-14

check out the graph.

#91 NEVER GIVE UP on 02.14.18 at 9:43 pm

So we are to swallow the greedy meme of Leave the Rich alone to do what they will with our cities?

The carpetbaggers have already had their way with our cities like a serial rapist.

Garth, You and many others who do not live in the lower mainland and have no children with a bleak future here, have no idea of the suffering over the last 10 years!.

You’re safe in your lifeboats and to hell with all the others in the water.

The Dippers will need revenue to replace the “lousy” housing market that will ensue when the housing market is back to NORMAL ! So why not tax those who can afford to pay the big bucks to flip.

I say tax a full 50% of the full resale price difference from the purchase price regardless of deductions for property improvements if the property is sold within 7 years.

Perhaps a graduated scale between 3 and 10 years would also work.
Say sell in 3 years and pay 75% of the price increase difference. 10 years maybe pay 20%

This will add stability to the market and offer reasonable pricing to those people who actually live here and spend money in local businesses while they are living here.
I am a businessman and I see a rout of this market going on that is immoral and offensive.

If the NDP fix it then I am a fan!

I thought the Business friendly Liberals were going to be
fair but they proved to be a gang of criminals. Good for really big business and as for small business. Who cares! Payola does not come from small players.

Surely you can comment without disparaging me. Seems small, petty. – Garth

#92 genbizx on 02.14.18 at 9:44 pm

Today’s list of shame:

CTV news for shoddy, unprofessional journalism – pc party and Patrick Brown should sue your corrupt arses

People who go 60km/hr in the on ramp acceleration lane then turn onto the highway at 80km/hr with 3/4 of the lane left – get up to 100 then merge idiots !

Same people doddle along in the fast lane at 110km/hr – move over and cooperate

People who ride bumpers when there is clearly nowhere to go – wait a minute you skinny jean wearing jackass.. Don’t make me stop this car and bully you till you stop believing you’re “world changing” special

Justin Trudeau constantly marketing himself as the saviour of everything

#93 Eyestrain on 02.14.18 at 9:44 pm

#87 ANON on 02.14.18 at 9:19 pm
Wife asked on V-Day: Is that a 10 year treasury rate in your pocket, or are you happy to see me?
_____________

In 1945? And you’re telling us now? Oh….. you meant today. Sorry.

#94 Peter on 02.14.18 at 9:44 pm

Hi Garth
100,000’s (millions?) of people thank you for persevering with this blog (and the comments section:)
Now that’s out of the way, I’ve got a friend who’s in the process of buying a $550k, 44 yr old, 2-br condo ($378/mo condo fee) w/ $300k down in North Van. She’s two kids & rents a 3-br now at $1900/mo but plans to live in the purchased suite though it comes with tenants with a lease to Oct this yr. She plans to live there for 2-yrs before getting out of this senseless city. Both the seller’s and buyer’s realtor are saying “no need for a building inspection, there’s no problems and anyway if there were they would be in the minutes”.
I’ve talked to her about preferreds and it’s otherwise hard to know where to begin here; but could the realtors be sued after the inevitable problems show up even though purchasing friend would never be able to get the realtors to put that “no inspections” comment in writing. The statements seem unethical to me and without further ado I’m thinking of writing a complaint to the Real Estate Council even though the comments are to me hearsay. Comments anyone :)

#95 april on 02.14.18 at 9:48 pm

#20- I agree. Those of us who are at the low end of not being able to buy even an old $300.000 condo couldn’t care less about the what’s happening on the west side though maybe it all starts at the high end. When we here about a 2 million dollar home dropping a few hundred thousand we have no sympathy. When we hear of $400.000 thousand dropping 25% now your talking.

#96 Infrared on 02.14.18 at 9:49 pm

Another example of government intervention – they raised Toronto property tax 2.91%.
While my cap as a landlord to raise rent is 1.8%
Why? Different inflation rates for different people?

#97 april on 02.14.18 at 9:52 pm

#31 – YES! Bring it on!!

#98 Mark on Vic on 02.14.18 at 9:56 pm

Anecdotal hearsay: Mid 70s parents just moved to a condo here in Victoria The lawyer that handled their transaction commented business has definitely slowed down the last month and prior to this many of his clients had no business buying a home due to their debt load but could. Condo market prices edged higher in Victoria but lots of price drops on single family in Victoria proper or barely over asking sales versus last summer where $100 – $150k over asking was the norm on an average listed $650k home.

#99 Selling to Asia on 02.14.18 at 10:00 pm

I used to live in W.Van when I was younger and knew some of the very fine Angell Hasman folks. They are very adept at marketing your home offshore, whether Iran, Hong Kong, Shanghai or wherever and everyone should look at the team on their web site. They are the best, ask anyone in HK or PRC.

#100 common sense on 02.14.18 at 10:02 pm

#86 Robert

Dylan said it best “Still a little and they throw you in jail…steal a lot and they make you king….”

#101 common sense on 02.14.18 at 10:06 pm

Mr. T:

When does hyperinflation come to a town near us?

Got to love the USA playing currency wars and they hold most of the cards…..

Long wheel barrels!

#102 TurnerNation on 02.14.18 at 10:10 pm

SCM is middle aged, female, tarries in the wine. And assigned to this blog. Gartho should be somewhat pleased this ilk are here I guess.

#103 common sense on 02.14.18 at 10:13 pm

The almighty Orange man down south came up with a great idea to pay for the infrastructure improvements he wants…a .25 cent/gallon gas tax….

With wages going through the roof in the USA and the low, low unemployment rate, I’m sure a tiny quarter per gallon will have no effect at all on people’s lives….

Hey Donnie, why not just add another TRILLON or so to the deficit instead?

When does the insanity end?

#104 Smoking Man on 02.14.18 at 10:15 pm

Canada.vs USA woman’s hockey right now.

I’m cheering for team USA. The thought of T2 having another opportunity to virtue signal is giving me nausea.

USA USA USA

#105 PupPatrol on 02.14.18 at 10:20 pm

#65 Happy Housing
The seething anger is getting annoying. We’re all a little ticked, but… maybe treat yourself to a drink and a warm bath.

#106 When the Whip Comes Down on 02.14.18 at 10:22 pm

#2 Spillover – i don’t believe the ndp can have it both ways. If they are desirous in effecting a policy to curb speculation, they have to accept said policy may erode equity gains, and potentially significantly. Now, how do you define hard earned equity. Just sitting over the last 3-5 yrs and realizing unheard of paper gains is not hard earned in my book. The only thing hard and tangible here is the debt taken on. I’m sure they have modelled out some scenarios and what effect said policies may have on peoples equity. I certainly expect they would be sophisticated enough try and make an educated guess on what these policies will do to peoples balance sheets if whatever they are proposing are implemented and have their desired effect. Guess we’ll see how big this hammer is soon enough. Might be more of a mallet.

#107 Millennial Realist on 02.14.18 at 10:37 pm

DELETED

#108 april on 02.14.18 at 10:58 pm

#94 – She’s a fool to be led by the seller and especially the buyer’s realtor telling her no need for an inspection. I bet if she asked to have that in writing she won’t get it. Go ahead and write to the RE board. RE industry the most corrupt industry in the world. Too many of us are too naive for our own good.

#109 Rooster on 02.14.18 at 11:11 pm

#104 Smoking Man on 02.14.18 at 10:15 pm
Canada.vs USA woman’s hockey right now.

I’m cheering for team USA. The thought of T2 having another opportunity to virtue signal is giving me nausea.

USA USA USA
——-+++++
Smokey’s needs help with the irregular plural possessive. Important to learn the language when urine in foreign country.

1-0 Canada, sweet!

#110 Pete on 02.14.18 at 11:11 pm

#94 Peter
—-
Why buy just to sell in 2 years? $300k will earn $30k in 2 years versus risking a downturn in real estate! If no inspection, at least ask for a status report. My guess is that there’s major expenses coming and fees will be going way up soon. Don’t trust agents – they just want the commission.

#111 conan on 02.14.18 at 11:12 pm

#104 Smoking Man on 02.14.18 at 10:15 pm

Not rooting for Canada?

Did not take you long to go into Joseph Willcocks mode.

Canada one nothing……….

#112 Ess Eff You on 02.14.18 at 11:12 pm

Andy Yan is Program Director of the City Program at Simon Fraser University (SFU). The City Program has been partially funded and supported by pro-development outfits such as the BC Real Estate Association; Institute of Real Estate Management; Parklane Homes; Polygon, Real Estate Institute of British Columbia; Real Estate Foundation of British Columbia; Real Estate Program of the Okanagan University College, Kelowna; Urban Development Institute — Pacific Region; Urban Development Institute — Calgary; Urban Development Institute of Alberta; and Urban Development Institute of Alberta. (source: https://www.sfu.ca/continuing-studies/about/program-units/city-program/partners.html) – see it for yourself.

If you think Yan is a “hero”, think again. He knows who feeds him and the City Program.

Talk about academic independence.

Yan is biased. City Program/SFU should re-think its academic and research autonomy! It has conflict of interest written all over it.

#113 Ess Eff You on 02.14.18 at 11:19 pm

… same for Tsur Somerville at UBC. His title is Real Estate Foundation of BC Professor in Real Estate Finance. Enough said?

His position is partially funded by the Real Estate Foundation of BC. Who feeds him, again?

Both Andy Yan and Tsur Somerville are fed by the real estate industry. Next time you see their names, you know their biases!

#114 Rooster on 02.14.18 at 11:22 pm

2 – 0

#115 Millennial-falcon on 02.14.18 at 11:42 pm

Detached home sales are w-a-y down right across the region. If you stripped out the ingenues snapping condos the market would be a smoky hole. – Garth
——————
Does not change the fact your using luxury markets stats to frame the Vancouver market as whole as “ collapsing” to your readers …
It’s still a sellers market for all types of sub 2 million housing , detached included. B20 has been a dud. The spec tax will be too ,
Calgary prices have barely budged with a jobs massacre b20 etc , you’ve said yourself prices at sticky. Nothing Gona change. every Watershed moment or rule change Harped on by greaterfool comes and goes and year by year the market keeps going. Focus on Toronto when it comes to Van Ur way off

#116 Yanniel on 02.14.18 at 11:58 pm

Feliz Día de los Enamorados Señor Garth.

#117 Spillover on 02.15.18 at 12:02 am

#106 When the Whip Comes Down on 02.14.18 at 10:22 pm
#2 Spillover – i don’t believe the ndp can have it both ways. If they are desirous in effecting a policy to curb speculation, they have to accept said policy may erode equity gains, and potentially significantly. Now, how do you define hard earned equity. Just sitting over the last 3-5 yrs and realizing unheard of paper gains is not hard earned in my book. The only thing hard and tangible here is the debt taken on. I’m sure they have modelled out some scenarios and what effect said policies may have on peoples equity. I certainly expect they would be sophisticated enough try and make an educated guess on what these policies will do to peoples balance sheets if whatever they are proposing are implemented and have their desired effect. Guess we’ll see how big this hammer is soon enough. Might be more of a mallet.
——–

Most pundits mock the ‘hard earned equity’ line of the old government because of exacty what you said – sitting on a house rising 20% per year without lifting a finger is not hard earned equity.

Yes, some modeling will have been done. A 25% correction has been deemed to be too much even though that will take owners back to less than a year ago when the NDP was first elected.

It will NOT be a hammer dropped on the 20th, despite the population wanting it. You have to remember they fear unintended consquences and any bold changes will have unintended consequences.

At the end of the day, they do not want to touch boomer equity as that is ‘retirement money’. Nor do they want to tick off China. The official minutes of the Legislature even shows that the Bank of China was telling a certain minister that they did not approve of the 15% foreign buyers tax. Yes, a foreign bank telling us that a measure designed to cool foreign speculation was not good, despite politicians and the development industry saying that foreign buyers had no impact. Its on record.

That is all you need to know about whose interests will prevail….

There will be a lot of disappointed individuals waiting and hoping for change come Tuesday.

#118 iogitra on 02.15.18 at 12:02 am

I can totally relate with #11 YVRComment.
I don’t want to have to tell my son 10 years from now to leave the country like I was in my 20s and came here.
I’m in ON and no matter my political views I will vote next provincial election with whoever crushes the craziness in RE prices.

#119 Stan Brooks on 02.15.18 at 12:07 am

I said do not underestimate T2

https://ca.finance.yahoo.com/news/governments-procurement-programs-help-female-154402405.html

between him, wild hairy bill and the poloz this country is doomed.

What a damage stupidity and arrogance of the leaders and the gullibility of the crowd can cause.

This place has nothing to do with what it represented 50 or even 20 years ago.
Amen.

#120 Newcomer on 02.15.18 at 12:09 am

I feel so sad for the lovely English lady who had to pay tax when shopping for an extra 2.5M condo to hang out in when she is here.

My Wednesday night run club route passes by one of the many camper and RV encampments that have grown up in Vancouver recently. I felt a little sad for them too, especially in the snow and all. But at least they don’t have to pay those awful taxes. I hope they are counting their blessings.

#121 SoggyShorts on 02.15.18 at 12:13 am

#94 Peter on 02.14.18 at 9:44 pm

Would you buy a car without an inspection?
How about a 44 year old used one for $550,000?
Are you insane?

And no, saying “but he said it was fine” won’t hold up in court. If your friend is so crazy as to buy into a dying market knowing she will leave in 2 years, she is almost guaranteed to lose money after commissions, taxes etc, so what more is a $400 inspection?

#122 DON on 02.15.18 at 12:21 am

#44 waiting on the westcoast on 02.14.18 at 7:33 pm

#24 Doug To… Raging against the Victoria machine… ;-)

You may recall that I recently moved back to Canada and specifically. I rent a house near UVIC. My landlord who is a great guy tried to sell last spring for around $1.1-1.2M and didn’t so he put it up for rent.

I pay $3500 in rent. He called me to ask if I would be interested in buying this year for 1.39… no, advise when Realtors arrive and I will find a new place. The outlying areas like Victoria and The outer Fraser Valley are peaking now… It’s over, watch the next 2-3 years. He bought for high 9 hundreds and needs to do at least 1.25 just to break even…
*******************

Market is definitely changing on the Island. Inflation creeping up in the US, higher interest rates and indebted households. Not fun.

#123 MaggieB on 02.15.18 at 12:29 am

#94 Peter
My husband and I were recently shopping for a condo (unsuccessfully). They are selling quickly here in Victoria, unconditional offers, no inspections. It feels like panic! I would not be coerced into making such a huge purchase without an inspection. What are people thinking?!!

#124 Smoking Man on 02.15.18 at 12:32 am

Wow great woman’s Olympic hockey.

Team USA wants it bad . Out worked the shit out of Canada were everyone gets a trophy now days.
USA got a goalie problem. I’m still calling Team USA WINS THE GOLD.

Bank it. T2 bringing bad karma to the entire country.

#125 For those about to flop... on 02.15.18 at 12:32 am

Pink Snow falling in Richmond.

These guys decided to have Valentines Day Blowout Sale.

I’m sure there’s nothing wrong with the market in Vancouver.

It’s the economy,Cupid…

M43BC

8060 Dalemore Rd,Richmond.

Paid 1.7 April 2017 asking 1.99 now 1.89 now 1.68

8060 Dalemore Road, Richmond

Jul 20:$1,899,900
Feb 14: $1,680,000
Change: – 219900.00 -12%

https://www.zolo.ca/richmond-real-estate/8060-dalemore-road

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#126 islander on 02.15.18 at 12:48 am

Finally, maybe now after all these years, the actual residents of Vancouver and surrounding municipalities will be able to afford a decent place to buy or rent! in this place we call home. And no, we can’t just all up and move to another province. We have families, friends and jobs and for those of us who are retired we mostly want and need to be near our loved ones.

#127 Protea on 02.15.18 at 12:50 am

#23 Screwed Canadian Millenial on 02.14.18 at 6:47 pm
Vancouver is a great example of how boomers only care about themselves and completely destroyed a once livable city, for future generations. The sheer malice and greed of a single generation has made life nearly impossible. Never has so much been ruined for so many, by so few.

Normally not a huge fan of SCM BUT his input today is correct in many ways. THE TRUTH HURTS and he is spot on . A lot of comments have attacked SCM viciously today out of personal greed and probaly a higher percentage of postings today from REALTORS GUILTY OF THESE COMMENTS,

H

#128 DON on 02.15.18 at 12:52 am

#89 Parksville Prankster on 02.14.18 at 9:34 pm

In Parksville B.C., and, I’m confident, in a few other ‘retirement’ areas of the island, we’re seeing more and more ‘two for ones’. Basically, they sell out of the main land Vancouver area for say 2 million, and then move out to the island, drop a millski on a water front property, and pocket the rest. The ripple effect has been to escalate local property values. Retirees and service sector jobs don’t support the rapid upward pressure on local real estate, and yet, up she goes. Still affordable by lower mainland standards, but increasing none the less.
**********
And then the music stops! and people panic.

#129 Smoking Man on 02.15.18 at 12:55 am

DELETED

#130 Lost....but not leased on 02.15.18 at 12:59 am

#16 Rooster

You clearly can’t read nor understand context.
Go waste someone elses’ time.

#131 Smoking Man on 02.15.18 at 1:10 am

On final truthfully hounest JD induced post.
Panama papers.

Never have anything of value in your name.
Catch me if can bitches I’m sure James forward my real name to CRA. Ha they audit me every year.. I play 10 dementional chess.

My death bed confession would be epic but no confession coming. Leaving it to my kids.

But to collect. They will need to leave Canada.

#132 Ray on 02.15.18 at 1:13 am

NEVER GIVE UP
———————————————————
My issue with your argument is there are people who made conservative financial decisions throughout their lives, who lived within their means and who obtained financial comfort. I ask, why should these people have to bail out the financially illiterate? Is an “A” student required to share grade points with the partiers so that everyone gets a C minus? Apparently, the Liberals would answer “Yes”
“Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, it’s inherent virtue is the equal sharing of misery”. Sir Winston Churchill.

So I say, Put your “Big Boy Pants “on, and Suck it up!!

#133 My dog has issues on 02.15.18 at 1:22 am

As promised, I found the long lost post that I still use as a benchmark when searching for properties. Check it out in Garths archives, august 13th/2014…

“I actually agree with the Motley Fool guy who days ago reminded me of a traditional and cardinal rule in ICI real estate (that’s commercial property). It’s simple: if you’re purchasing an income-producing piece of real estate, you should pay no more than eight times the annual gross rental income the property generates. It’s called the GRM, or Gross Rent Multiple.”

True gem

#134 Lost....but not leased on 02.15.18 at 1:39 am

Today’s blog article is bang on….

NDP’s only real option would be a speculation tax…..problem is many NDP ers are no different that Liberal supporters as they have RE holdings and do not want equity losses .

Metro Vancouver’s 20+ local gov’ts bypassed the traditional 5 year OCP…and have a regional growth strategy that has already designated zonings,..much of it from commercial to residential…the problem being when RE market collapses, the property owners will be stuck with higher and best use designations, exhorbitant property taxes but no market to developers, hence major financial difficulties..

The blog article again has a hidden warning re:NON detached,….the buyers are being funnelled into the strata market… create a bigger bubble and thus a bigger collapse/collateral economic damage.

#135 Big Daddy on 02.15.18 at 1:45 am

In addition to have dope infused apartments from the increase in legal grow ops and unrelenting smokefilled hallways and vent systems. There will be another YUGE issue for people passing into the USA where dope sensors and drug dogs have sensitivity detection set on extra high…..no pun intended. You might not be a doper but your clothing has probably picked up enough molecule trail to produce a reaction from a sniffer dog, swab test or molecule detector……just from walking down a hallway…..using a laundry facility or having vents and loose wallboard between units all smoke to pass through. You ARE going to be pulled aside and given an anal probe if your bldg has a high THC content. Put that in your pipe and smoke it. It might be a good idea to pack your own lube going through US customs…..

#136 My dog has issues on 02.15.18 at 2:08 am

#89 parksville prankster

Flying Phil still doing his rounds there? Left there years ago

#137 TheSpangler on 02.15.18 at 2:29 am

Interesting to see this out in full force in Whistler today.

https://www.facebook.com/photo.php?fbid=10155571047707547&set=pcb.1796229077075654&type=3&theater&ifg=1

#138 Widening Gyre on 02.15.18 at 2:30 am

#102 TurnerNation on 02.14.18 at 10:10 pm

Am I correct in my assumption that that is your way of insulting? SCM

F46BC

#139 Dolce Vita on 02.15.18 at 2:38 am

Poor YVR, I’ll believe it when I see it…well, just watch your local weather report and see whoose logo comes up on screen…you will never see it, but keep telling yourselves that.

And, keep burying your heads in the sand YVR RE fanatics…somebody has to polish the portholes on a sinking ship.

History is just starting to repeat. Greed and avarice never end well, never.

#140 My dog has issues on 02.15.18 at 2:56 am

BC real estate seems to have some serious issues, kinda like my dog. Glad I left there when I did.

I was born and raised on the lower mainland and Vancouver island. Loved it, grew up sailing and fishing in the Salish sea, steel heading and tubing in the rivers. Then went on to commercial fishing for 6 years doing various fisheries all along the coast, from desolation sound to Portland canal and most places in between. Even sold seafood off the boat at Steveston. But decided to bail for the prairies, where real estate was cheaper and I could make some good wages with a db pension. Sometimes you gotta make some tough choices and look for a better future for yourself and your family.

Would love to move back one day, these winters can be tough out here, especially when you earn your living outdoors.

#141 Big Daddy on 02.15.18 at 4:20 am

Was it the lube? Too much reality?

#142 buttercup on 02.15.18 at 5:11 am

“#23 Screwed Canadian Millenial on 02.14.18 at 6:47 pm
Vancouver is a great example of how boomers only care about themselves and completely destroyed a once livable city, for future generations. The sheer malice and greed of a single generation has made life nearly impossible. Never has so much been ruined for so many, by so few.”

You are an ignorant, jealous, parrot. Do you actually understand the issues? You spew hate and play the victim. You comtribute nothing to the planet with comments like this. Have you not heard that negativity only begets negativity? Life is what YOU make of it. It’s hard work a lot of the time, but guess where self satisfaction comes from? Were you raised by wolves?

Garth, I amend my vote to–No more SCM loser posts! He got a chance to clean up his act and play nice, but has blatantly squandered it. Disrespect should not be tolerated. Time to the plug!

#143 I Heart Lacasse on 02.15.18 at 5:28 am

A disciplined and hard-working Canadian squad squeaked out a win (2-1) over their talented US rivals.

Trump tweeted:
” A win’s a win, but Justin called and said he had his manicurist biting his nails. They got lucky 6 times folks, maybe I should invite them to the White House?
I hope the FBI checks birth certificates, Fox has proof two players are from Scotland. Must be stopped!

#144 John Q. Public on 02.15.18 at 6:07 am

#40 Nonplused on 02.14.18 at 7:24 pm
……Just once I’d like to see someone get elected that could do basic math. Oh wait, Garth got elected once. Ok, I’d like to see more people that can do math get elected. But it won’t happen because the majority of the electorate can’t do math either. I blame the schools. This “new math” thing where students are encouraged to “guess” just doesn’t work.
———————–

A fix is in the works. Just this week, my local school board flew a dozen principals (no teachers) to California to learn the “newer math”. (Is the airplane fuller or emptier ? ) Ontario property tax dollars at work.

#145 Rexx Rock on 02.15.18 at 6:53 am

Real estate is done in YVR,GTA and Victoria for middle class.The richer new immigrants will replace the poorer people having to leave these cities.
In Langawi Malaysia right now,beautiful tropical island,duty free to boot!Cheap food ,smokes,booze and good meals for $3 to $10.Many people are moving to South East Asia because of low cost of living and nice weather.Its funny I met a young French Canadian who just got a job in Hong Kong,was living in Monterey Mexico for 2 years doing teck work.All the friends he met in Monterey kept telling don’t go to Asia its to dangerous there.Leave Canada if your educated or have money,you won’t be sorry.The small freedoms you have in Asia is amazing.Walking down the street with a beer in your hand,if you smoke you can actually smoke in a bar or restaurant.Run with your dog on a beach with no leash.Not having cops hiding near stops signs to fine you not coming to full stop,catching you speed 10 km over speed limit.They don’t have road pirates like back home in Asia.

#146 maxx on 02.15.18 at 7:11 am

“This is more than any market can take, especially one held together with the gossamer threads of FOMO and propaganda.”

FOMO is rapidly being replaced by the bête noir of HOLE – Horror Of Losing Equity.

#147 NoName on 02.15.18 at 7:39 am

#144 John Q. Public on 02.15.18 at 6:07 am

A fix is in the works. Just this week, my local school board flew a dozen principals (no teachers) to California to learn the “newer math”. (Is the airplane fuller or emptier ? ) Ontario property tax dollars at work.

Tell me that a joke, California State that spends more money on policing and incarnation than schools. LOL

#148 Howard on 02.15.18 at 7:43 am

SCM makes one mildly provocative comment and about 20 people respond to him.

Now do you see why he doesn’t change his modus operandi?

#149 Hair guy on 02.15.18 at 7:43 am

Looks like someone’s finally making a policy that benefits the young. I’m starting to see the appeal of this ‘annoying your elders’ thing. Maybe after crashing the price of housing to where it makes sense to buy again, we could levy a tax on snowbirding?

#150 Rooster on 02.15.18 at 8:11 am

#130 Lost….but not leased on 02.15.18 at 12:59 am
#16 Rooster
You clearly can’t read nor understand context.
Go waste someone elses’ time.
………….
Lastly, but not leastly, hopefully…
You also claim to have an indepth knowledge of Vancouver.
Did you drove or did you flew?

#151 maxx on 02.15.18 at 8:19 am

#32 Spock on 02.14.18 at 7:11 pm

“Not sure why this learned scholar SCM who spews the same tirade towards Boomers every single day is allowed to post even 2 times.”

Free speech? Garth’s a fair and tolerant guy.

IMHO, it has either motive or income behind it:

– no wealth;
– no prospects – real or imagined;
– nothing better to do;
– seething with envy;
– an IQ that is sated by petty amusement (recalculating….recalculating….);
– a foaming-at-the-mouth raging lunatic.

or, possibly being paid to sit at a desk somewhere in the bowels of gubbmint, scratching one of his party’s itches by being fed ageist, pro-libtard data to barf endlessly onto a bothersome, brainy, avant-garde, quality blog that makes all of the wrong noises and polarizes far too much attention. Globally.

Ignore it with the contempt it deserves.

After all, you’re Spock! ;-)

#152 Ian on 02.15.18 at 8:52 am

Inflation is roaring, dogs.

Data putting Powell on point to raise rates right away in his new seat. All that cheap money supply in the Obama years is now taking hold.

We had the CPI picture yesterday. Now two more items this am premarket:

https://www.marketwatch.com/story/us-wholesale-inflation-hits-nearly-6-year-high-adds-to-case-for-fed-rate-hike-2017-12-12?mod=bnbh

https://www.marketwatch.com/story/philly-empire-manufacturing-gauges-show-continued-solid-growth-in-february-2018-02-15?mod=bnbh

#153 Classical Liberal Millennial on 02.15.18 at 9:30 am

SCM, is that how you’re going to spend one of your two daily posts? Blaming the Boomers like an idiot? At least learn how to spell first.

#154 Vanrentor on 02.15.18 at 9:52 am

Here is a link to Angell Hasman’s blog post from November 2016 predicting a 25% drop

http://blog.theangellgroup.com/how-to-become-a-realtor/the-truth-about-the-real-estate-market

#155 Rodrigo V on 02.15.18 at 9:54 am

It’s pretty clear that what propped up Canada real estate for the past decade or more was Chinese money, either as foreigners or permanent residents. Up to two thirds of all sales sometimes go to people with Chinese names. I just don’t know how it is racist to point that out.

http://www.macleans.ca/economy/realestateeconomy/andy-yan-the-analyst-who-exposed-vancouvers-real-estate-disaster/

#156 dosouth on 02.15.18 at 10:00 am

Probably beating a dead horse but what ever happened to earning a right to buy or how about being responsible for paying your own rent?

The low income housing build out has to be paid by someone and as usual it will be the middle income who will be paying for childcare, pensions, food-banks, reconciliation payments, mistaken arrested immigrant payments……and on and on.

One good thing, our house closes on the 28th and back to renting for a while. Travel here we come…of course after working and paying taxes and supporting all those poor who have a right to all the things we have to work for…something really wrong with this picture.

#157 Old Ron the Realtor on 02.15.18 at 10:03 am

Question for T2 Haters on this site. Quick now without thinking to much, what three things should Andrew Scheer do immediately upon taking office that would make things better for Canada ?

………….Crickets

#158 Alistair McLaughlin on 02.15.18 at 10:04 am

@ #70 -=jwk=-

Those programs are not B20 exempt, and are ending now:

https://betterdwelling.com/cibc-kills-foreign-income-program-makes-buying-canadian-real-estate-harder/

Right now it’s just CIBC, but you can bet the other big lenders will follow. CIBC was by far the most aggressive lender in this regard.

#159 Oakville Rocks! on 02.15.18 at 10:06 am

Just got this – might be of interest to those here who are in / around Toronto on March 1. Not sure if you have to be a McMaster Alumni to register.

https://www.degroote.mcmaster.ca/events/2018-real-estate-outlook/

#160 Duke on 02.15.18 at 10:11 am

#112 Ess Eff You on 02.14.18 at 11:12 pm

#113 Ess Eff You on 02.14.18 at 11:19 pm

You are spot on!!

#161 Ian on 02.15.18 at 10:17 am

US mortgage rates now at four year high:

https://www.marketwatch.com/story/mortgage-rates-rise-to-nearly-four-year-high-on-inflation-concerns-2018-02-15?mod=bnbh

#162 TurnerNation on 02.15.18 at 10:18 am

#138 only if you find insult in truth.

#163 Alistair McLaughlin on 02.15.18 at 10:18 am

@ Ess Eff You, the fact that Andy Yan is willing to deliver a message his sponsors hate makes him more independent, not less.

#164 Alberta Ed on 02.15.18 at 10:19 am

“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.” Winston Churchill

#165 Oakville Rocks! on 02.15.18 at 10:30 am

#129 Without a doubt the most disgraceful comment to ever show up on this blog. 17 people, mostly kids, die and guess which JackA$$ blogdog thinks it is time to make a political statement about guns (straight from the NRA) and a baseless ANTIFA accusation.

Garth, eventually the stench of such dreck will stick to you. Not sure how you let such a meaningless and stupid comment through.

My heart goes out to those families who lost their loved ones in this senseless violence. I hope it is true, that if there is a god, she reserves a special place in hell for those who seek to politicize events like this.
SICK & SAD! and I don’t care if this A$$ was drunk when he wrote it.

That comment slipped by me, should not have been published, and is now deleted. I have warned the poster he is on the verge of being banned. I apologize for not catching it sooner and thank you for the vigilance. – Garth

#166 Mattl on 02.15.18 at 10:38 am

The markets Garth highlights all had a significant amount of foreign buyers. As much as 25% reported, and likely much more unreported – loopholes were pretty easy to find. The foreign buyers tax crunched those markets. Because…hold for it… foreign buyers have had a major influence in high end YVR markets.

The next few years in YVR will be a mess. People that overbought, and speculators are going to get killed. Anyone that got in early, with reasonable down payments that can make their payments, will be fine and in 20 years we will all be marveling at the latest run up in YVR house prices.

#167 IHCTD9 on 02.15.18 at 10:44 am

#135 Big Daddy on 02.15.18 at 1:45 am

…where dope sensors and drug dogs have sensitivity detection set on extra high…..no pun intended.

_______________________________

Haha – good one. Was not too long ago a Canadian was denied entry into the USA simply by admitting to US border agents that he/she had smoked pot in the past.

The CBC wrote an article telling Canadians to just lie about it when trying to get into the US.

I can just imagine the shit show with parcels as well. Anything within 20′ of a pot plant, or pot smoker will become irrevocably contaminated. That goes for the goods, the packaging, the tape, and the shipping bill.

We can probably expect some Canadians who went through the wrong State without reading their laws first, to be tossed into State prisons semi regularly as well.

#168 Stan Brooks on 02.15.18 at 10:45 am

I admire the rich people living in Canada.

Apparently nobody cares that poloz’s ‘die Scheiße’ northern peso aka as ‘the loonie’ as at 5 years low again the euro and falls even against tanking USD with no intend whatsoever to ever increase rates!

I guess people operating in the millions in real estate virtual valuations do not care about the prices at the grocery stores.

But hey, how about people on fixed income who get 1.1 % indexing on their pension due to the ‘lack of inflation’?

I would expect at 20-30 % groceries increases in the last year alone people to revolt, but, hey, it seems everyone is rich and happy in this place.
Go Justin, Go!

#169 Victor V on 02.15.18 at 10:52 am

CIBC Kills Foreign Income Program, Makes Buying Canadian Real Estate Harder

Foreign buyers just got one of the most aggressive hurdles when buying Canadian real estate. The Canadian Imperial Bank of Commerce (CIBC) quietly notified its mortgage advisors the “Foreign Income Program” has ended.

The program was replaced on February 1, 2018, with a new program designed to ensure compliance with B-20 guidelines from OSFI. This change will have a drastic impact on those that use foreign income to qualify for a mortgage, from one of Canada’s largest banks.

#170 Ian on 02.15.18 at 11:10 am

#157 Old Ron the Realtor on 02.15.18 at 10:03 am
Question for T2 Haters on this site. Quick now without thinking to much, what three things should Andrew Scheer do immediately upon taking office that would make things better for Canada ?
———————————————-
I like you, but how many hours do you have?!?!

1) Reverse the ridiculous TFSA cutbacks so we stop punishing savers

2) Get back to fiscal balance right away and stop the absurd deficit damage the Liberals are doing

3) Make clear to the nation that attacks on free speech are not going to happen – defund any university that doesn’t understand that

4) Reignite an ultra hawkish position on Russia

5) Stop mindless political correctness and stop embarrassing the country by using words that don’t exist like Peoplekind

Shall I go on?

#171 Citizen on 02.15.18 at 11:12 am

Hi Garth,

What do think will happen in Ontario?
With the stress test, I would expect some impacts.

#172 Another Deckchair on 02.15.18 at 11:25 am

Just a little note about inflation and the food service industry in Ontario.

1) My “usual order” once every month or so I a visit to a local coffee shop – from $4.75 late 2017 to $5.25 last week;

2 Weekly group gathering at a local place for a quick bite, same food now $9.00, was $7.90 last week, last autumn was $7.00 (or less?)

It’s all minor stuff, but equates to approximately 10% increase since December 2017.

It’s chump change, but if indicative of how costs are flowing through the system, it may be of interest.

#173 Johnnyboy on 02.15.18 at 11:31 am

#237 RyYYZ on 02.14.18 at 12:47 pm

#201 Johnnyboy on 02.14.18 at 9:03 am

I’m not boomer and quite frankly I don’t give a rats ass if any of you want to fry your pathetic brains on pot. I don’t use the shit, and I don’t care if you want to use it or not. Here the point I don’t want to be sitting in back yard when the smell of that shit starts wafting over from a neighbors because there is a party on the next door neighbors deck. Some people will say whats the difference between that and manure? Firstly the smell is about the same, they both smell like shit. Secondly and more important though manure wont affect my brain if I inhale it. Pot will effect us just like second hand smoke.
So in answer to you SCM how would you feel if I sat next door to you while you were outside enjoying birthday party for your 5 year old and the little friends were over and I decide to bong it out with copious clouds of pot wafting over to the little ones? Quite legal right? Morally wrong though. You get what you wish for so with that large anus in Ottawa you got pot, should have wished for better jobs and a real leader.

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

Oh, please. Catching a whiff of pot smoke going by isn’t going to get you high, anymore than catching a whiff of cigarette smoke is going to give you cancer or emphysema. It’s a nuisance, nothing more, just like when your neighbour burns some horrible citronella torches, or some terrible crap in their outdoor fireplace.

If the fact that other people can do stuff that makes smells, or noises, or whatever, that annoys you, well you’ll have to find yourself a place on a square mile or more of land where your neighbours are well out of sight, sound, and smell range.
________________________________________
Some you are OK with exposing children to this shit?
Good thing for you that are not my neighbour.
ciò che viene in giro va in giro a capire

#174 IHCTD9 on 02.15.18 at 11:45 am

#157 Old Ron the Realtor on 02.15.18 at 10:03 am
Question for T2 Haters on this site. Quick now without thinking to much, what three things should Andrew Scheer do immediately upon taking office that would make things better for Canada ?

………….Crickets
________________________________

Hey Ron, have you hit the weights yet?

It’ll help you with your perspective, you know; like what is easy vs. what is difficult. Also it will boost your ailing T levels.

You’re wasting away physically and perhaps mentally. Best get on it soon, at some point your joints just won’t be able handle it.

Good Grief stop waiting Man. Now is the time for resolve, not more weakness.

#175 Guy in Calgary on 02.15.18 at 11:45 am

Trump blaming mental health and not guns for what happened in Florida yesterday.

Sad times for humanity.

#176 Max the Tax on 02.15.18 at 11:47 am

Garth, I loved the line:

“Tax, tax and more tax. ” it’s music to my ears.

I guess the rich English lady will have to choose between London and Van. Oh well. Maybe the average dude or dudette in Van will not have to choose between a cardboard box and a tent next year. Hurray for tax plans on Tuesday! Euro countries already have a tax on property flippers. eg. Hungary: Gotta hold your land for 5 years after buying or you get to pay the tax man. Makes people thing through it rather than rush into it.
Good job government – another prudent move.

#177 paul on 02.15.18 at 11:53 am

#165 Oakville Rocks! on 02.15.18 at 10:30 am
My heart goes out to those families who lost their loved ones in this senseless violence. I hope it is true, that if there is a god, she reserves a special place in hell for those who seek to politicize events like this.
SICK & SAD! and I don’t care if this A$$ was drunk when he wrote it.
—————————————————————–
Well I guess there will be a lot of folk’s from C.N.N.
and politicians in Hell. They started politicizing within in 20 mins. of the breaking news and it’s been going non stop.

#178 James on 02.15.18 at 11:53 am

#131 Smoking Man on 02.15.18 at 1:10 am

On final truthfully hounest JD induced post.
Panama papers.

Never have anything of value in your name.
Catch me if can bitches I’m sure James forward my real name to CRA. Ha they audit me every year.. I play 10 dementional chess.

My death bed confession would be epic but no confession coming. Leaving it to my kids.

But to collect. They will need to leave Canada.
*******************************************
I have to say could care less about your tax issues Smoking Man and its not my place to contact the CRA regarding your delinquency to taxes. SO if you get turned in its not on me buddy! I do know how the tax system works visa vie the USA having lived and worked there before.

You are deemed a non-resident for tax purposes if you meet ALL these criteria :

1. You do not own any fixed tangible assets in Canada, which includes property, a house or commercial building
2. You do not have ANY bank accounts in Canada.
3. You do not have a mailbox or any form of mail address in Canada
So my advice is don’t ever come back here and don’t try to get a new Canadian passport.

P.S. Hope you love America, AR-15’s, mass school shootings, and no-healthcare when you get shot. What the hell happened to America? Second Amendment was meant for Muskets you assholes, not assault rifles.

https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/when-you-money-collections-cra/you-refuse-pay-cooperate-canada-revenue-agency.html

#179 Joe2.0 on 02.15.18 at 11:55 am

https://www.zerohedge.com/news/2018-02-15/canadian-existing-home-sales-crash-january

#180 IHCTD9 on 02.15.18 at 12:00 pm

#170 Ian on 02.15.18 at 11:10 am

I like you, but how many hours do you have?!?!

1) Reverse the ridiculous TFSA cutbacks so we stop punishing savers

2) Get back to fiscal balance right away and stop the absurd deficit damage the Liberals are doing

3) Make clear to the nation that attacks on free speech are not going to happen – defund any university that doesn’t understand that

4) Reignite an ultra hawkish position on Russia

5) Stop mindless political correctness and stop embarrassing the country by using words that don’t exist like Peoplekind

Shall I go on?
____

#1 priority IMHO is to scrap the Impact Assessment Agency, scrap the new regulation heavy / go one forever process for approving new mega projects, and as a government – start sounding like you want business investment in this country.

Trudeau’s collection of idiots in Ottawa have already screwed up things so bad, that the CEO of Suncor has pulled BILLIONS of investment from this country and sent it elsewhere. We don’t need any more Liberal shit shows like this.

Much the same is going on with Auto and Steel industries in Ontario where (surprise!) Liberals have been running things into the ground for 14+ years. These industries are dead though, no longer repairable in the economic dystopia brought into being by Liberal blockheads both at the Provincial and Federal levels.

GM, Chrysler, US Steel, ESSAR etc.. will hang around as long as Trudeau keeps giving them our tax dollars to not move to the USA. When that stops, they’re gone.

#181 Steven Rowlandson on 02.15.18 at 12:12 pm

“Save some hate for the former Christy Clark government’s nutty idea of making houses more affordable by giving people down payments.”

Okay giving the poor more money for down payments is a nutty idea. It is also a waste of money and an immoral compromise with evil. It supports the extreme genocidal real estate prices and rewards real estate investing and more out of control greed. It is also mal-investment that does nothing substantial if anything to support a productive society or economy. Where would the economy be if 90% of the current value of Canadian real estate was invested in productive industries of all types in Canada? How many un employed and homeless people would we have?
I dare say that we would be living in a very different country and far fewer people here would be bitching about home prices. It would be a non issue.

The policy is nutty because it makes houses more expensive. Duh. – Garth

#182 Joe2.0 on 02.15.18 at 12:18 pm

131
Smokingman
Demential chess
Classic Freudian, cracked me up brother.

#183 Renter's Revenge! on 02.15.18 at 12:28 pm

#170 Ian on 02.15.18 at 11:10 am
#157 Old Ron the Realtor on 02.15.18 at 10:03 am
Question for T2 Haters on this site. Quick now without thinking to much, what three things should Andrew Scheer do immediately upon taking office that would make things better for Canada ?
———————————————-
I like you, but how many hours do you have?!?!

1) Reverse the ridiculous TFSA cutbacks so we stop punishing savers

2) Get back to fiscal balance right away and stop the absurd deficit damage the Liberals are doing

3) Make clear to the nation that attacks on free speech are not going to happen – defund any university that doesn’t understand that

4) Reignite an ultra hawkish position on Russia

5) Stop mindless political correctness and stop embarrassing the country by using words that don’t exist like Peoplekind

Shall I go on?

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

Go Ian, go!

#184 fancy_pants on 02.15.18 at 12:32 pm

By artificially suppressing the value of money for so long, gov’ts have created a ticking time bomb that will explode as hyperinflation. The collapse of more debt-driven economies is coming. Venezuela is just the precursor.

#185 Millmech on 02.15.18 at 12:54 pm

#170 Ian
Nailed it!

#186 TurnerNation on 02.15.18 at 1:03 pm

If Smoking man gets banned I will likely have to stop posting. :-(

Guess I’m just a wannabe rebel boomer: 4 on the floor, 8(track) in the deck, and 6(pack) on the front seat. :-)

There’s no replacement for displacement.

M42ON

#187 IHCTD9 on 02.15.18 at 1:04 pm

“CBC News has made repeated requests to speak with Brown but has received no response.”
___________

LOL! Good job Mr. Brown.

Looks like the accusers stories are “subject to correction” as it turns out.

With any luck, Brown will fry them all good and crispy in court.

If he succeeds in doing this, then he will also succeed in turning my opinion of him from that of a douchebag into one of great respect.

#188 conan on 02.15.18 at 1:11 pm

“I hope it is true, that if there is a god, she reserves a special place in hell for those who seek to politicize events like this.” – Oakville Rocks!

https://www.youtube.com/watch?v=b3QuSQUSvpY

#189 Where's The Money Guido? on 02.15.18 at 1:30 pm

Re: #50 crowdedelevatorfartz on 02.14.18 at 7:44 pm
@#26 Democracy is Mob Rule as Opposed to a dictatorship….

“That’s exactly why people without houses voted NDP.”
+++++++++++++++

Most people didnt vote for the NDP.
They voted against the Liberal corruption machine.
++++++++++++++++++++++++++++++++++++++++++++++++++
Well, the people of West Kelowna that voted for former BC Lieberal Premie Crusty (I never found a money launderer I didn’t like) Clark, have continued that corruption with the election of Ben Smith, the one who gave up his seat for Crusty when she was tossed from her handlers’ (West Van) district.
Seems people in BC are just giving up and voting for the most corrupt, as long as they get a couple crumbs that fall out of their masters’ pockets.
So BC, law biding citizens no longer wanted, should be also called BL, as in Bring Laundry instead of Bring Cash.
And yes, the majority of the former and present BC Lieberal mafia (including their bureaucrats, BC Rail and IPP partners, who colluded with those scams) should be in jail with all taxpayer pensions taken away……!
And how about tearing up those ridiculous IPP giveaways, set up by Guido and his compliance lawyer, who is now a Director at Coast Capital Savings in BC?
Coast, by the way, is involved in going federal and in turn, trying to set up as a bank, so they can sell shares on the stock market and ingratiate themselves when they get bought out by one of the big 5 banks. Same thing happened in Australia in the mid 2000s, where this lawyer is originally from, that ended up making the insider directors mutil-millions and screwing their members over.
Where is the law (RCMP) in all this mess? Oh yeah, sitting in their $billion house built with their own bar in Surrey, including 20 year gold-plated contract.
It’s all courtesy of Crusty and new BC Lib leader, former BC Premie Guido Scampbull clone, ‘Scamspew ‘Bilk-er’son’ (Andrew Wilkinson). Even today, Wilkinson wouldn’t produce the 2014 ICBC report on how bad it was financially and steps to improvement, leaving it to the media to release: http://theprovince.com/news/politics/read-the-icbc-report-the-b-c-liberals-didnt-want-you-to-see/wcm/550f6004-f6dc-4762-a049-a5d7e4e9e9bb
I guess the media has a new Lord to bow to now, since the Liebs and their masters, the-the RE cartel, aren’t going to be filling the coffers anymore.
More important is why they changed the laws and kept raiding ICBC’s in the black Optional Insurance, knowing by taking this money they were bankrupting the company. How is that not illegal?
We are screwed out west because the people in BC are so morally bankrupted and stupid, mezmerized by the cheap baubles proffered by Liberal lies through the years.
The lowest of the low.

#190 PastThePeak on 02.15.18 at 2:02 pm

#172 Another Deckchair on 02.15.18 at 11:25 am
Just a little note about inflation and the food service industry in Ontario.

1) My “usual order” once every month or so I a visit to a local coffee shop – from $4.75 late 2017 to $5.25 last week;

2 Weekly group gathering at a local place for a quick bite, same food now $9.00, was $7.90 last week, last autumn was $7.00 (or less?)

It’s all minor stuff, but equates to approximately 10% increase since December 2017.

It’s chump change, but if indicative of how costs are flowing through the system, it may be of interest.
==================================

I am seeing the same. Increases at the larger national / international quick service chains are relatively small, but the smaller shops have increased prices by at least 10-20% already, with more to come. One I purchased from yesterday has put notice on their websites about having to do it.

Trying to convince the wife of the need to eat out (or have take in) less now.

#191 Dan on 02.15.18 at 2:07 pm

#65 Happy Housing Crash Everyone! on 02.14.18 at 8:16 pm
You dirty filthy lying POGarbage SHYSTERS. You disgusting vermin will sell out your own
pfamily for a dollar. You have no moral fiber and your evil oozes out of your pores. Your lies have ruined Canadians from coast to coast. You fight to kept facts hidden from the public. You have no shame you SHYSTER [email protected]

P.S I hate SHYSTERS
——————–

Love and agree with the message but you should put it on a t-shirt. Your ranting on a blog is exactly why the situation is like it is and got to this point. Paid for real estate news drowns out everything and brainwashes the masses- they are the most powerful industry-probably the only industry left in Canada- the whole economy- Canadians buying houses from Canadians or selling houses overseas.

Put that message on a t-shirt, do a rally like they are finally doing in Vancouver, now that things are so dire- where was all that the last 10 years.

———-

on a side note and this is not boomer bashing but, ja, they have been silent, watching their kids generation get screwed, probably benefiting like no other generation by simply being born at the right time- silent as a mouse and voting in politicians that benefit them (of course- totally normal).

Wonder how most would do now as an under 30 grad in YVR- GTA or basically any Canadian city…student debt, outsourcing, competing with many well educated immigrants for decent jobs, and having to drop 400+k on a 1 bedroom box- 800+k houses, if lucky or pay insane rents, and so on… so I can understand the resentment and class divide in Canada. Still plenty of blame to go around, or am I being dramatic?

but I guess you can ask who has been buying the boomers houses and funding their retirement?

#192 Stan Brooks on 02.15.18 at 2:23 pm

Here it is, the world of oligopolies:

Weston family’s Choice Properties buying Canadian REIT for $3.9 billion

https://ca.finance.yahoo.com/news/newsalert-choice-properties-reit-buying-114640771.html

They split their retailer from the ownership of the stores/REIT business in order to redirect profit to the REIT part and earn income that is subject to preferred taxation.

So where is lil bill-the fairness-screw the small businesses-french villa-forgot the blind trust-conflict of interest-lucky seller-protector of suppressed women in business- guy on this one?

Silent as a smelly fart.

What a hypocrite.

#193 Penny Henny on 02.15.18 at 2:34 pm

bitcoin now trading over 10,000 usd

So it’s only down 50%? – Garth

#194 Stan Brooks on 02.15.18 at 2:35 pm

#184 fancy_pants on 02.15.18 at 12:32 pm
By artificially suppressing the value of money for so long, gov’ts have created a ticking time bomb that will explode as hyperinflation. The collapse of more debt-driven economies is coming. Venezuela is just the precursor.

———————-

friggin loonie is not worth anything real anyway, like 1/500 of a brick in a crappy shack?

backed by trust in T2/wild bill/poloz? Really?
and their ability to tax the overly indebted?

I put no trust in that whatsoever.

#195 Midnights on 02.15.18 at 2:42 pm

Interest…
Bank of Canada exploring closer ties with Ottawa to counter future economic slumps
And that debt word popped up again.

https://www.theglobeandmail.com/report-on-business/economy/bank-of-canada-explores-co-ordinating-interest-rate-relief-with-government-spending/article37992877/

#196 CRA knows everything on 02.15.18 at 2:44 pm

#131 Smoking Man on 02.15.18 at 1:10 am

On final truthfully hounest JD induced post.
Panama papers.

Never have anything of value in your name.
Catch me if can bitches I’m sure James forward my real name to CRA. Ha they audit me every year.. I play 10 dementional chess.

My death bed confession would be epic but no confession coming. Leaving it to my kids.

But to collect. They will need to leave Canada.
*******************************************
630 Newport Center Dr, Newport Beach, CA 92660, USA now we know.

#197 Stan Brooks on 02.15.18 at 2:52 pm

https://www.theglobeandmail.com/report-on-business/economy/bank-of-canada-explores-co-ordinating-interest-rate-relief-with-government-spending/article37992877/

hahaha

2 % inflation target?

delusional, pathetic. sad. tragic.
There will be no one to turn off the lights when it all blows up.
except the socks boy.

#198 MoneyHoney on 02.15.18 at 2:54 pm

DELETED

#199 For those about to flop... on 02.15.18 at 2:57 pm

Pink Snow falling in Port Moody.

Featured these guys once before last summer when they originally started to try and retrieve the bulk of their money back out of the market.

Like a lot of my cases, they took it off the market for the winter and now have put it back up for the same exact number hoping at best to get away with a Pink Draw.

Paid 1.89 which was well above the assessment at the time, they will be hoping to find a buyer and get out before the inventory explodes in the next month or so for Spring Fling 2018…

M43BC

211 Parkside Drive, Port Moody paid 1.89 ass 156

Jun 12:$2,088,000
Jul 27: $1,988,000
Change: – 100000.00 -5%

https://www.zolo.ca/port-moody-real-estate/211-parkside-drive

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

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#200 jess on 02.15.18 at 2:58 pm

closing the hole

How Hedge Funds Found a New Tax Loophole: DealBook Briefing

FEB. 15, 2018
Treasury races to end a hedge fund tax loophole

Hedge funds have been creating scores of shell companies to get around new restrictions on carried interest payouts, which are taxed at 20 percent instead of the higher individual rate.

The tax overhaul requires funds to hold onto investments for three years to qualify for the lower rate. They’ve been getting around it by creating single-member LLCs in Delaware to receive carried interest payouts.

More from Miles Weiss of Bloomberg:

Four LLCs have been created under the name of Elliott Management Corp., the hedge-fund giant run by Paul Singer. More than 70 have been established under the names of executives at Starwood Capital Group Management, the private-equity shop headed by Barry Sternlicht.

Steven Mnuchin has promised moves to close the loophole within two weeks.

#201 The New Math on 02.15.18 at 3:05 pm

If we can get back to investing for just a sec.?

Further to the discussions on stock buybacks, I had a look at Encana’s Annual Report today.

In 2016 they issued 1.24 million shares @ $9.35 and today announced a buyback of $400 M worth (current price is $11.15), so a net loss of $65M to provide a “Direct return to shareholders” is how they phrased it.

What worries me is that they have $327 M in “performance” stock option liabilities (TSARs, Performance Tsars, Sars, PSUs and RSUs – hence the buyback), $500 M in debt due next year (@6.5%), and recorded a provisional income tax expense of $327 M because of Trump’s tax cut, but they are not sure exactly how much they will need.

They have $700 M in cash and cash-ish, so the $4.2 B debt pile will not grow (nor subside).

I was considering dipping a toe in, because these jokers haven’t put a right foot forward in ten years. I was thinking they might be due just based on randomness. Does anyone know whether the effect of the US corporate tax cut is a one-time negative for a Canadian Corp. with cross-border operations? Blessings to all.

#202 For those about to flop... on 02.15.18 at 3:09 pm

Pink Snow falling in Vancouver.

The Twitter feed Lost pointed out to me has put up some more addresses ,some have already been put up on here by myself,but I will watch what happens to this one.

They have a couple of things in their favour, a newer product than most and a property with a laneway house ,and so they will likely attract an interested party but at current ask it is another one that will just break even after expenses and be classified as a Pink Draw.

Probably have the tough time of selling one of the nicer houses in a so-so part of town…

M43BC

258 e 55th ave Vancouver

Paid 2.42 April 2017 asking 2.59

https://www.zolo.ca/vancouver-real-estate/258-e-55th-avenue

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#203 David on 02.15.18 at 3:11 pm

It’s all going to be okay, says the bank,

carry on and keep borrowing.

http://www.cbc.ca/news/business/interest-rates-debt-consumers-1.4536744

#204 Stan Brooks on 02.15.18 at 3:13 pm

#200 jess on 02.15.18 at 2:58 pm
closing the hole

How Hedge Funds Found a New Tax Loophole: DealBook Briefing

FEB. 15, 2018
Treasury races to end a hedge fund tax loophole

Hedge funds have been creating scores of shell companies to get around new restrictions on carried interest payouts, which are taxed at 20 percent instead of the higher individual rate.

The tax overhaul requires funds to hold onto investments for three years to qualify for the lower rate. They’ve been getting around it by creating single-member LLCs in Delaware to receive carried interest payouts.

More from Miles Weiss of Bloomberg:

Four LLCs have been created under the name of Elliott Management Corp., the hedge-fund giant run by Paul Singer. More than 70 have been established under the names of executives at Starwood Capital Group Management, the private-equity shop headed by Barry Sternlicht.

Steven Mnuchin has promised moves to close the loophole within two weeks

——————————–

That is pretty impressive.
Now imagine when will the wild bill close the loopholes used by the really, really rich and wealthy in Canada?
(including promised stock options tax, tax offshore heavens etc)

Like never? Right answer.

He will say the doctors and plumbers are the rich and will tax them to death while coming with ridiculously nonsense propaganda on how is helping the middle class (by killing it) with the rolled up sleeves and cares for it so much and works so hard for it that he forgot to declare his french villa and blind trust fund. Small omissions his part, compensated with a great and generous part (as cheered by the paid for by our tax money media propaganda).

#205 Smoking Man on 02.15.18 at 3:14 pm

Due to get the fact the left is drifting from pure insanity to down right violence and threats I will not talk politics anymore.

I will how ever talk about critters in my Garen. Episode 1 tonight. The Cockroach and the worm with ugly socks.

#206 Stan Brooks on 02.15.18 at 3:14 pm

Small omissions his part, compensated with a great and generous heart.

#207 jess on 02.15.18 at 3:17 pm

‘The Trump slump’: Remington files for bankruptcy as gun sales tumble

NRA, Russia and Trump: How ‘dark money’ is poisoning American democracy

The FBI is investigating the National Rifle Association to determine whether Russians illegally funneled money through the organization to help the Trump campaign.
Beyond Russian meddling, this allegation illustrates a problem of even broader scope in our political system.

https://www.theguardian.com/us-news/2018/feb/13/remington-bankruptcy-guns-trump-slump-sales

Trump blaming mental health and not guns for what happened in Florida yesterday.

Sad times for humanity.

and the govey goes on fox to talk of their shared horror and sadness rather than face his own press regarding the lax gun ownership laws

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

https://www.bloomberg.com/news/articles/2018-02-12/cerberus-s-remington-will-cede-control-to-lenders-in-bankruptcy

Colt Holding Co. taking a trip through bankruptcy in 2015.

#208 jess on 02.15.18 at 3:25 pm

Citizen’s United

Common Cause New Mexico priority legislation HJM 10 passes the New Mexico State Senate

The “Fix it America” amendment, HJM 10, sponsored by Reps. Linda Trujillo & James Smith and Sen. Gerald Ortiz y Pino passed the Senate floor last night.

This national effort to repair the tremendous impact of the Citizen’s United decision, which has opened the floodgates of undisclosed money spent in our elections, and the effects of partisan gerrymandering, has begun right here in New Mexico. Our legislature now supports HJM 10, a Memorial to ask Congress to amend the U.S. Constitution with the following language:

Section I. Congress and State Legislatures shall regulate the role of money in elections and governance to ensure transparency, prevent corruption, and protect against the buying of access to or influence over representatives. No such regulation shall be deemed in violation of freedom of speech rights in the Constitution of the United States or its Amendments.

Section II. Legislative districts or districting plans shall not intentionally or unduly favor or disfavor any political party.

====
Political Advertisers Still Breaking Online Disclosure Rules

http://www.commoncause.org/democracy-wire/political-advertisers-still-breaking-disclosure-rules.html

Facebook’s Experiment in Ad Transparency Is Like Playing Hide And Seek
Starting in Canada, Facebook is rolling out a global program to prevent foreign meddling in elections

https://www.propublica.org/article/facebook-experiment-ad-transparency-toronto-canada

https://www.propublica.org/article/i-approved-this-facebook-message-but-you-dont-know-that

#209 Mark on 02.15.18 at 3:27 pm

“#201 The New Math on 02.15.18 at 3:05 pm …
I was considering dipping a toe in, because these jokers haven’t put a right foot forward in ten years.”

Why are you even bothering with individual securities? Can you really make a case that the individual security you are interested in will be able to sustainably outperform the index? Do you have the time to monitor a portfolio of a number of securities to achieve the sort of diversification that’s easy to achieve for a few basis points in an ETF? Stock picking is usually a fool’s game.

Having said that, you make a lot of great arguments for not wanting to touch such security with a 10 foot pole. However, investing based on such short-term emotion rarely leads to sustained outperformance.

#210 unbalanced on 02.15.18 at 3:29 pm

On the verge of getting banned? Let’s vote. This time Garth ( your blog,your rules) ban for 1 week. Second incident—gone for good! Exile the riff raff!

#211 For those about to flop... on 02.15.18 at 3:29 pm

Pink Snow falling in Vancouver.

Here’s another one from that Twitter feed that piqued my interest.

If you remember last summer when I was working on new residential construction in the Dunbar area I reported seeing building sites with absolutely nothing going on seemingly abandoned,something I had never seen in my previous 15 years of working in that part of town.

This case did not take it that far and stopped at having plans and permits drawn up.

You didn’t hear any complaints about having to line up at city hall for two hours to submit or alter plans when the market was out of control.

Minor inconvenience.

Standing in line for two hours to change something that won’t affect the amount of money you lose has lost its novelty real quick.

I have seen this happen more than a few times,particularly on the North Shore and of course the implications are that they didn’t see the projects returning enough of a profit to make it worth their while.

I wrote on here way back in 2016 that despite the euphoria of rising house prices,particularly in the first half of the year,some of the smaller developers I work for were not happy as the price of a block of land was now out of their comfort zone and was finding it hard to compete with the likes of Tavan.

These guys still want the double digit,but don’t listen to me as I’m a mental midget…

M43BC

2867 w 19th ave, Vancouver

Paid 2.41 June 2017 asking 2.69

https://www.zolo.ca/vancouver-real-estate/2867-w-19th-avenue

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#212 MaryJane Econ 101 on 02.15.18 at 3:32 pm

The cost of incarceration in Canada is ~ $120k per year. Add in the costs for the Keystoner Cops, the Judges, the Liars, and the dictatypist and your at $150k easy.

Nobody said it’s OK to shotgun your neighbours with a gigantic bong. Nobody smokes 2 packs a day of reefer. Legalization will save money, not lives. That should appeal to people here.

#213 Stan Brooks on 02.15.18 at 3:33 pm

https://www.youtube.com/watch?v=3GpmrIPER38

our glorious leader….

#214 Stan Brooks on 02.15.18 at 3:39 pm

The suicide note left by Fidel Castro’s eldest son has rocked the Cuban nation this week, with the most astonishing revelation being the claim that Canadian Prime Minister Justin Trudeau was his half-brother and the son of the late Fidel Castro.

http://yournewswire.com/justin-trudeau-fidel-castro-son/

The stuff you believe is mind-boggling. Stop reading Internet crap. – Garth

#215 Stan Brooks on 02.15.18 at 3:46 pm

#211 Stan Brooks on 02.15.18 at 3:39 pm
The suicide note left by Fidel Castro’s eldest son has rocked the Cuban nation this week, with the most astonishing revelation being the claim that Canadian Prime Minister Justin Trudeau was his half-brother and the son of the late Fidel Castro.

http://yournewswire.com/justin-trudeau-fidel-castro-son/

———————-
Of course that is a hoax.

There is no way Fidel was that intellectually limited.

#216 Stan Brooks on 02.15.18 at 3:46 pm

The stuff you believe is mind-boggling. Stop reading Internet crap. – Garth

Agree, that was intended joke.

#217 NoName on 02.15.18 at 3:50 pm

@james

In your opinion will banning at-15 cure mental illness or help some religion to keep up with a times?

#218 Canada First on 02.15.18 at 3:50 pm

Would it be possible to limit posting to Canadian residents only? I know all about IP spoofing, but maybe just a Captcha filter with hockey questions.

#219 45north on 02.15.18 at 3:51 pm

Old Ron: Quick now without thinking too much, what three things should Andrew Scheer do immediately upon taking office that would make things better for Canada ?

here’s a couple:

tighten up Revenue Canada without blaming small business for being small. I know a small business owner who has a cottage and a couple of boats on the Ottawa River. He charges the insurance against his business. Revenue Canada needs to look into this – the extra revenue would pay for the extra costs of auditing. Under the same heading, look for ways that Revenue Canada can be more of a partner and less of a toll.

raise the contribution limit on TFSA from $5000 back to $10,000

cut Shared Services and delegate Information Technology back to the departments. You could start immediately but it would take years – there are multi-year contracts with private businesses – you cannot just void the contracts. There are 1000 senior civil servants working for Shared Services – you cannot just fire them. A lot would resign and collect generous termination packages. In five years Shared Services would be gone except for maybe an office to co-ordinate co-operation among the departments.

help families who lose their homes due to bank action – like power-of-sale, foreclosure. Families would get $1000/month for a year. Encourage and support them by giving them financial and legal councilling.

allow MPs to be pro-life

increase the funding to entomology at Agriculture Canada. ( bees, grasshoppers and crickets )

#220 Mattl on 02.15.18 at 3:54 pm

Detached home sales are w-a-y down right across the region. If you stripped out the ingenues snapping condos the market would be a smoky hole. – Garth

Wrong, SFH in the Valley for instance are up 15 percent, benchmark price a hair under a million. Those crazy kids buying million dollar homes in Langley!

All due respect you are not dialed into YVR RE. Yes, high end areas are getting punished as foreign money holds tight. Homes closer to a million are moving very well.

And yes people are fools for buying million dollar homes in Maple Ridge but that doesn’t change the fact that there are LOTS of areas in the LML where SFH are selling very well. If you think that kids are driving the market out here you are out to lunch.

As for condos, the foreign tax comes in and sfh grind to a halt. No similar rules for condo pre-sales and condo sales go bonkers. Nothing to see here, must be those crazy kids buying multiple property’s and driving thin market with their limited buying power.

Only 600 detached homes sold in the entire Fraser Valley last month, a 10% plop from December. Prices were essentially unchanged. – Garth

#221 conan on 02.15.18 at 4:01 pm

On the verge of getting banned? Let’s vote. This time Garth ( your blog,your rules) ban for 1 week. Second incident—gone for good! Exile the riff raff! – unbalanced

Are you suggesting a circle of life vote for SM?

I second that.

https://www.youtube.com/watch?v=zNLnZPuI-zo

#222 Stan Brooks on 02.15.18 at 4:07 pm

#218 Canada First on 02.15.18 at 3:50 pm
Would it be possible to limit posting to Canadian residents only? I know all about IP spoofing, but maybe just a Captcha filter with hockey questions.
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No:

1. There are people outside this country who pay higher taxes than you. Restrict opinions based on residence? How about based on gender, religion?

2. One simple IP proxy will hide you origin, I always use proxies when on Internet.

3. Hockey questions? Really?
Here I died laughing.

Really, is that the intellectual baggage of an average Canadian? Trying to silence the opposition?

#223 Canada First on 02.15.18 at 4:18 pm

#157 Old Ron the Realtor on 02.15.18 at 10:03 am
Question for T2 Haters on this site. Quick now without thinking to much, what three things should Andrew Scheer do immediately upon taking office that would make things better for Canada ?
————–

Just got the one.
Allow any civil servant who can prove that his job is absolutely useless can get half-pay for life.

#224 SoggyShorts on 02.15.18 at 4:24 pm

#178 James on 02.15.18 at 11:53 am
You are wrong. You can have both a canadian passport and a bank account and still become a non-resident.
Property, spouse, dependents are generally a no-go.

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

#225 Shirley Anderson on 02.15.18 at 10:39 pm

SCM I am a boomer who rents. I have refused to buy at such inflated prices. If everyone did that, prices would come down. You can envy those boomers who got on the property ladder and made pots of money, but it isn’t boomers driving this current insanity. It’s anyone taking the bait and buying overpriced property instead of holding off and making sellers drop their price. Boycott. Rent. Put your money and energy into something else.

#226 Ex Realtor on 02.16.18 at 1:53 am

#94 Peter – Don’t recall all the rules from the Ontario real estate exam, but tell your friend to check the Reserve fund for the strata. I do know of an older, “prestigious” condo development on a golf course in Aurora, ON – the monthly strata fees were quite reasonable…until all the unit roofs had to be done, and everyone had to pay up $30,000 within 1 year or so to replace them. And of course the monthly fees were raised. Older developments were infamous for having very low, insufficient reserves…and the low condo fee you mention may be attributing to such a scenario. Strongly doubt there’d be any liability on the realtors. Wha….t is there a line-up for 44 yr old condos in North Van? Listen to everyone here, do NOT buy anything EVER without an inspection!

#227 Steven Rowlandson on 02.16.18 at 10:42 am

The policy is nutty because it makes houses more expensive. Duh. – Garth

Yes Garth that is right. It creates demand, more real estate investors who expect to profit. If it does stuff like that then it is a nutty idea because real estate is place to live and have families. Blocking that by fueling a speculative mania and price inflation stops people from having a proper place to live at a reasonable price to income ratio and blocks family formation hence the accusation of genocide….. Peoples lust for profit needs to be diverted to where it can do the most good and that is in the area of investing in production and trade instead of making life impossible for others.

That made no sense. – Garth

#228 Art Vandelay on 02.16.18 at 11:45 am

Canada.vs USA woman’s hockey right now.

I’m cheering for team USA. The thought of T2 having another opportunity to virtue signal is giving me nausea.

USA USA USA
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I can’t believe an entire nation is assuming the gender of our hockey team! It’s NOT the women’s hockey team, it’s the people’s hockey team!