Sunk

“You may find this image useful for your blog,” David said, in sending me the shot above. “I saw these signs sprouting on Bantry Ave in Richmond Hill this morning… the end must be near in the 905. An $80k loan, interest only payments at 10.32%, ‘rates subject to change’…”

Well, as stated here last week, with 25%-30% declines in housing values across York Region these days, including the smoky epicentre of R-Hill, we’ll soon be needing teams of Médecins Sans Frontières to treat an epidemic of heart palpitations. And the war has just begun.

The good news is the fat loan rate on the eighty grand won’t increase this week. The Bank of Canada’s gone poodlish again given what’s just happened. That includes (a) a budget from Mr. Dressup obsessed with gender parity but doing nothing to combat investment-sucking US business tax cuts, (b) NAFTA-killing tariffs the protectionist American president is preparing against Canadian steel (and 9,000 jobs in Hamilton alone), (c) disastrous housing numbers soon to be released in the country’s biggest market, impacting consumer confidence, (d) moaning and piddling on Bay Street (the TSX is down 5% this year) as the headwinds mount, (e) the deflationary agenda of Comrade Horgan in BC where brutal new taxes are about to tank household net worth and, of course, (f) a giddy 7% increase in the amount of money people just borrowed against their houses – which appear destined to fall in value. Great strategy.

So, no bank rate increase this week. Let’s hold at 10.32%.

Today’s post is dedicated to financial morons. They may be the kind who borrow money based on lawn signs from a guy named Vito whose office is a used Hummer.

They may also be the kind Ned, from Calgary, describes.

“Within the last few days I’ve seen multiple posts online from landlords here asking if they should ditch their condo at a loss,” he tells me. “This is just a tragedy … these guys sound pretty young, how do they bounce back from a $50K loss when that number is probably their net income??? I wish more people read your blog and invested their money wisely. My RE aversion means my portfolio is still sitting at a double-digit gain… even after the recent ‘correction.’”

He sends along this post from a site which seems to be some kind of moronic support group:

“Just trying to wrap my head around capital losses and when it makes sense to sell an investment property. Bought about 6 years ago for 200k, 170k left on the mortgage, could maybe, if lucky, sell for 150k today. We get $1050 in rent for it, but our costs are about $1650 a month (atrocious condo fees)… so we’re trying to decide if we should wait it out for a few more years and hope that prices rise a bit so we can recoup some of our losses, or try and sell it and use the capital losses to offset the amount we would have to pay to get rid of it. Since $400ish of that goes against the principle, we’ve been trying to see it as only a $200 loss a month, but that only becomes true if we eventually sell it for what we payed for it… sure have better uses for that extra money every month. Looking for suggestions or examples of anyone in similar situations.”

Quel mess. Down payment gone. Negative equity. Underwater mortgage. Negative monthly cash flow. If this loser doesn’t sell he’ll suffer a $7,200 annual loss which will eventually be disallowed by the CRA. If he bails he’ll kiss his deposit goodbye plus have to take a fat cheque to the lawyer’s upon closing. Meanwhile the tenant is subsidized and happily grows her net worth. So much for the myth of real estate always going up, and the reduced risk posed by ‘affordable’ condos. More will be learning this lesson.

Finally, a nod to the moronic Mills surveyed by BeeMo who believe a TFSA is designed primarily “to save for a major purchase.” This is even worse that the reason a majority of Canadians cite having a tax-free account, which is “for emergencies.” Yikes. How did we ever go so astray?

There’s more, says the bank. Almost half think TFSA contributions are linked to income (thank T2 for that one), while 60% don’t actually know the annual limit. Over 80% of people fail to max the amount put in and ‘not having the money’ is the main reason. Given that the contribution limit is a paltry $450 a month, this tells you plenty.

There is only one vehicle – universal to all, regardless of income – within which gains are free of tax, from which a taxless stream of money can be drawn, completely unreported to government, and therefore not affecting benefits, pensions, investments or savings. No, it isn’t for buying an ‘investment’ condo.

We may be about to get the country most people deserve. Won’t they be surprised.

238 comments ↓

#1 Old Ron the Realtor on 03.04.18 at 2:07 pm

TREB prices are down about $185,000 average from April 17 peak. All of the damage was done between April and August 2017, which was the market low for the year.

The prices have been unchanged in recent months. I am curious to see if the short supply of listings has a positively effect on price. I am not betting on it, but I am looking forward to the TREB data dump @ 9 a.m.

August 17 (low) – $731,622

December 17 – $735,888

January 18 – $736,783

February 18 – ???

#2 BC LANDLORD on 03.04.18 at 2:08 pm

Lot’s has been written here about the hazards of investing in rental residential properties. Like how they are net money losers especially for recently purchased properties.

One overlooked new rule is a new big hazard for those wanting to invest in residential rental properties in BC. Many landlords were using a “vacate” clause on fixed term leases. This was done to drastically increase rents once the tenant’s term is over or force them to vacate. With a less than 1% vacancy rent in the lower mainland, rents are rising a torrid pace, and this was basically the Landlord’s insurance policy against it. Renters all over Vancouver, Victoria and Kelowna were either forced or their rents increased very substantially.

Well that’s all over. As of December 11th 2017, the NDP abolished the use of new “vacate” clauses. And current leases that had “vacate” clauses written in them are null and void. Landlords can now only increase rents once per year by the Government declared rate which is currently 4% (most past years have been less).

Imagine the thousands of landlords that were expecting to threaten their current tenants with eviction to drastically increase rents but now can only increase by a minor amount.

For those individuals thinking about becoming landlords in BC – beware.

#3 Tsx is junk status on 03.04.18 at 2:13 pm

Other than the banks, what can you buy on this junk tsx market
and not lose money every day? I’m fed up with this country and this monkey trudeau running it into the ground. Effing disgrace this country has become, tsx is the proof.

#4 Ray on 03.04.18 at 2:17 pm

Canada’s next PM will be Jagmeet Singh. He will be voted in by the financially challenged millennials and overspent Boomers who are desperate to get some economic relief. Jagmeet will focus on income redistribution and focus particularly on anyone that is anywhere near financially comfortable. Income taxes will rise and the TFSA will either be abolished, or capped at say $250,000 where growth over this will be ‘Income taxable” There will be no where to hide.

#5 For those about to flop... on 03.04.18 at 2:18 pm

Here are some stats for detached sold listings yoy in the sort of places that matter…

M43BC

Last weekend

Richmond…..-79%

Vancouver….-56%

Surrey…..-64%

Burnaby….-47%

West Vancouver….-66%

This weekend

Richmond…..-79% (same)

Vancouver….-63%

West Vancouver….-84% (only 8 sales during the last month)

Burnaby….-56%

Surrey….-65%

Detached sales year over year.

#6 Trev on 03.04.18 at 2:21 pm

Ha! I saw that post. Even better was one just before that asked:

I am thinking of selling my rental condo this year for various reasons and I will likely lose 25k after costs. I entered it in hypothetically into turbo tax for this year and it didn’t change my refund at all. Would this show up for next year as a tax dedication? Is there any better strategy for dealing with this situation?

#7 EmmEmm on 03.04.18 at 2:27 pm

Probably first :)

been following Garth’s advice for 14 months now.. my portfolio grew crazily by 22% last year.. and ALL is TAX FREE .. take this house horny idiots!!

https://imgur.com/a/AcUei

#8 paulo on 03.04.18 at 2:28 pm

Couple of interesting cases to share:
couple purchased sfd in Nov/16. went in with a bully bid of 80K better than fair market value to snag it.
bank of mom financed the down,one of the big 5 holds the paper. closed in Jan/18. took 1 year fixed on expectations rates would fall… November 2018 husbands contract not renewed=loss of 60% of income to household. currently the bank has agreed to accept mtg payments for 90 days,with the implied undertaking of the purchaser to list and sell within that period.keep you posted on this one.
Next couple purchased in Jan/18 again took 1 year fixed with well known “B” lender @6.9% appraisal 3X coming in 45K short to meet 80% equity. Generous “B” lender has offered new 5 year @[email protected] and a in house second for 2 Years @ 15.25% for 40k plus a ton of fees
gets our poor greater fools to 68% gds….. cat food and kraft dinner anybody? and this shit storm has just started.

#9 paulo on 03.04.18 at 2:32 pm

make that NOV 2017 husbands contract no renewed.. im going to kill this spell checker

#10 paulo on 03.04.18 at 2:36 pm

18;s are 17;s sorry

#11 Alex on 03.04.18 at 2:37 pm

I’d suggest that landlord send some jingle mail to the bank, given that their in Alberta. Though I’m not sure if that works with less than 20% down. Still having 170K left after 6 years suggests maybe 5% down. Don’t over extend, folks!

#12 Nick B on 03.04.18 at 2:39 pm

We got lower than expected Q4 GDP growth of 1.7%. We have lots of headwinds for real estate and as a result the economy. I expect one or less rate hikes in 2018 for Canada. Real estate represents a significant portion of Canada’s GDP, once it starts to roll over, all bets are off for rate hikes. The Canadian CB is too dovish to hike into any trouble.

#13 Flop is Fake on 03.04.18 at 2:41 pm

#5 For those about to flop

“West Vancouver….-84% (only 8 sales during the last month)”
————————-
Actually 24 detached properties were sold. Like most of your posts – another exageration.

#14 Nick B on 03.04.18 at 2:41 pm

#6 Trev. If it’s a capital loss (likely), then it only applies to capital gains but you can carry it back 3 years or forward indefinitely.

#15 jess on 03.04.18 at 2:45 pm

vix manipulation? spoof quotes for S&P options?

https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/r8LCxXQ4CfqU/v0

https://www.bloomberg.com/news/articles/2018-02-13/vix-manipulation-costs-investors-billions-whistle-blower-says

#16 Stan Brooks on 03.04.18 at 2:46 pm

I think the movie that should win the Oscars should be titled:
“Retirement – Mission Impossible”.

‘The not so golden years’ — a quarter of retired Canadians in debt, survey suggests

https://ca.finance.yahoo.com/news/apos-not-golden-years-apos-090000333.html

https://ca.finance.yahoo.com/photos/10-best-encore-jobs-retirees-slideshow-wp-194604955/

First they spur inflation – M2 (so monetary inflation) expands by 8 % compound yearly since 2009,
but they tell you that their inflation (so called CPI is 1.5 %)
so you lose 7 % yearly in purchasing power of savings and pensions with real Negative Interest Policies of BOC (thanks Poloz).

Then they tell you that saving nothing is your fault and that you are living too long /the blame is on you.

Then they tell you that you have to look for job while ‘in retirement’.

The ideal worker? The one who expires 1 week prior to starting to collect benefits.

Mind-boggling that there is no reaction on this blog or elsewhere on the issue – you work until you die if lucky to find a job and will never retire practically while government ‘reduces’ your dues with accounting tricks.

#17 DON on 03.04.18 at 2:48 pm

“Sinking in Debt” 10%

Yikes! I hope the demand is low for this type of loan, but someone sees a market there – enough to print signs. The loss of real estate related jobs may be offset by the gain in strong arm collection jobs? HGTV to be replaced by “Repo Wars”.

Is this the moment when people on the beach start to see the water being sucked from the shore yet remain standing on the beach? Have we lost our danger instincts to group think. This is a very sad thing.

The pendulum seems to be barreling down on us. Don’t worry though as group hope will stop it. Yes we all will suffer to some extent. I remember a time in the 90’s when house prices were low, yet the banks were scrouges when it came to giving out credit (recession – right after the housing busts).

At least sanity will return for some.

#18 Mark on 03.04.18 at 2:50 pm

“#107 ex-Van on 03.04.18 at 11:59 am
Isn’t it the case that dividends subtract from money that would otherwise be spent on R&D or otherwise reinvested in the company, which in the long term is reflected in its valuation? For long term investors, it seems that dividend-paying stocks are a zero sum game. My momma taught me that chasing yield is folly.”

If payout ratios are consistently greater than 100%, then it could be argued that the firm is depleting its capital over the long term, and that eventually the firm will cease to be a going concern. How long a firm can sustain a >100% payout ratio is a function of the type of underlying assets. A tech firm in a competitive environment may not be able to sustain capital stripping for long. A pipeline, mine, or even some RE ventures whose assets are very long term in nature and for which depreciation in book value may not properly reflect the actual depreciation on the asset (Enbridge, for example, is recently cited as such an example) may be able to get away with it for a very long time and remain a perfectly viable going concern.

The most successful approach appears to be a balance between the creation of shareholder value (ie: dividends and buybacks), and re-investment in the business. The income trust model, which was 100% payouts of net cashflows, was discredited (no, it was not Flaherty’s fault that the income trust sector crashed!). The 0% payout ratio model, “growth” hasn’t particularly proven to be successful either although there are a few notable examples where capital discipline was adequately maintained (Berkshire Hathaway, for example).

Lots of the TSX is fairly high yielding these days simply because the TSX is so incredibly out of favour. To get 3% after-tax when 30-year GoC debt trades for less that roughly pre-tax is pretty much unprecedented in at least my lifetime (granted, I’m not even that old!).

#19 Mark on 03.04.18 at 2:57 pm

“I am thinking of selling my rental condo this year for various reasons and I will likely lose 25k after costs. I entered it in hypothetically into turbo tax for this year and it didn’t change my refund at all. Would this show up for next year as a tax dedication? Is there any better strategy for dealing with this situation?”

The sale of a condo would be at a capital loss. Capital losses are only deductible against capital gains with few exceptions.

The capital loss you claimed will be noted on your Notice of Assessment, and can be carried forward indefinitely for use against capital gains you may incur in the future. You can also carry back capital losses three years by filing appropriate paperwork with the CRA if you have previously declared capital gains.

So follow some of Garth’s advice, invest in a balanced portfolio, and over time you probably have capital gains against which you can apply the capital loss you experienced with the condo.

Also, depending on your situation, you may have CCA recapture, and perhaps even some expensable items relating to your business of operating the rental.

#20 For those about to flop... on 03.04.18 at 3:15 pm

18 at 2:41 pm
#5 For those about to flop

“West Vancouver….-84% (only 8 sales during the last month)”
————————-
Actually 24 detached properties were sold. Like most of your posts – another exageration.

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

Here, you might wanna take a look at this.

Actually they only accounted for 7 detached sales during the past month ,but since I’m such a nice guy I gave them the benefit of the doubt.

I will put in a good word for you next time I speak to your boss.

You are a good servant…

M43BC

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

#21 broader mind on 03.04.18 at 3:25 pm

There are two vehicles you just described. TFSA and principle residences.I believe most have already spent all the equity in their homes. Must be time to smear some porkers. God I love those words. OK i’ll get over it.

#22 Stan Brooks on 03.04.18 at 3:26 pm

Loonie/aka the northern pesso is down again 1 % against Euro, 0.45 % against USD on Sunday alone.

brought to you by Carl;s Jr. (sorry, that is from the movie Idiocracy), actually from Stephen Poloz.

El maestro finanziario.

This is getting as embarrassing as T2 statement on tariffs but much much more painful.

f..k TSX. I don’t need their ‘returns’

#23 BC vs. Jacinda on 03.04.18 at 3:34 pm

Did anyone else miss this important announcement about the tax hitting BC owners too? Who cares about Albertans and their whine (though we will love their tax in our coffers).

http://vancouversun.com/opinion/columnists/vaughn-palmer-speculation-tax-caveat-makes-b-c-property-owners-antsy

This has to be the most effective way of putting renters in homes I have ever heard of. I think the NDP (I didn’t vote for them) is actually pretty smart with this one.

I can’t get used to all these whiners thinking that home equity is the new norm for making money and their derived entitlement to that wealth. It’s like everyone that bought a lottery ticket thinking they were entitled to the pot.

#2 BC Landlord’s revelation is another nail in the coffin of real estate porn.

Time to work and pay tax like the rest of us. My kids will live to buy a home yet.

#24 A Great PM on 03.04.18 at 3:38 pm

#4 Ray – your talking about the guy who stiffed Canada by not getting legally married here. They flew off to Mexico where all legal marriages are Civil, and all documentation is sealed from the public. Why did they not have a legal Civil marriage in Canada, and honeymoon in Mexico? Could it be that the licensing documentation of the family facts needed to be hidden?

#25 SVM on 03.04.18 at 3:38 pm

#18 Mark on 03.04.18 at 2:50 pm
The most successful approach appears to be a balance between the creation of shareholder value (ie: dividends and buybacks), and re-investment in the business
*******

Mark, you must have missed the morning mail:

https://www.theatlantic.com/politics/archive/2015/02/kill-stock-buyback-to-save-the-american-economy/385259/

#26 Dee on 03.04.18 at 3:38 pm

Assets dont remember the price you bought at. If it’s low (based on your own gauge) doesnt mean it has to go up. It can hover at current price longer than you think & may still go down.

Nothing worse than chasing & hoping for a dead asset to make a move. Much rather the gyrations of bitcoinmania *sarcasm but maybe some truth to it*.

Basically, screw the tsx. It does not know it is “down”

#27 crowdedelevatorfartz on 03.04.18 at 3:40 pm

@#3 tsx is junk status
“Other than the banks, what can you buy on this junk tsx market
and not lose money every day? I’m fed up with this country and this monkey trudeau running it into the ground. Effing disgrace this country has become, tsx is the proof.”
++++++++++
Spoken like a true “screwed canadian millenial”.
Dont let the door hit you on the way out.

#28 Daryle Steadman on 03.04.18 at 3:41 pm

Trudeau and Co. is placing the TSX ON SALE for investors to buy low and when Mr Scheer takes office there will be capital equity appreciation. SALE PRICING on now!

#29 Chaddywack on 03.04.18 at 3:43 pm

I never thought I’d say it since he’s been teflon so far, but I think T2 might actually be cooked next election.

The Liberals put all their political capital in one person and the risk there is once the veneer comes off the entire ship sinks with him.

Trudeau formed a cabinet based on how it looked, not on the competency of the ministers and he’s paying for that inexperience.

He may come back somehow, but I think he went way too far left for most Canadians (except maybe parts of Quebec, Toronto, and East Vancouver) kind of like how Harper went too far to the right.

Libs are done in some ridings they won last time (Calgary, Kelowna, many parts of Ontario, Quebec City region)

It will be interesting to see how the markets react to his gender balanced budgets. I’m still waiting to be hit with higher taxes for being a man :)

The Liberals need to dump this drama queen if they have any hope of salvaging 2019.

ABL 2019

#30 Flop is Fake on 03.04.18 at 3:46 pm

Well now I understand the problem. Your stats come that most reliable source Zolo.

I suspect you also watch Sean Hannity and listen to Milli Vanilli

#31 Warning: some math on 03.04.18 at 3:51 pm

Over 80% of people fail to max the amount put in and ‘not having the money’ is the main reason.
*************

Just to be clear, 17% of those Canadians with TFSA’s fail to maximize their contribution, but 18% of those who are eligible (age 18+) do not have TFSA’s.
working out the guzzintas ……. 17 * 82/100 = 14%

So only 14% of Canadians maximize their TFSA contributions, and 86% do not. Not a strong argument for raising the contribution limit, IMHO.

Under my tax plan, each Canadian would accrue an annual $1100 credit to offset any type of investment income (a reasonable 20% of $5500). The amount can be carried forward and used solely for investment income.

The CRA would cease their crackdown on TFSA overachievers. The TFSA industry paper pushers would disappear, as would many of the tax accountants, advisors, and voodoo tax schemers. Canadian dividend paying stocks would subside to their natural, unsubsidized level, like the sand on the beach where I sell sea shells ……. Vote for me and all your dreams will come true.

Over 90% of allowable RRSP contributions are not made. Should the government cut that contribution limit by 50%? – Garth

#32 DON on 03.04.18 at 3:58 pm

#12 Nick B on 03.04.18 at 2:39 pm

We got lower than expected Q4 GDP growth of 1.7%. We have lots of headwinds for real estate and as a result the economy. I expect one or less rate hikes in 2018 for Canada. Real estate represents a significant portion of Canada’s GDP, once it starts to roll over, all bets are off for rate hikes. The Canadian CB is too dovish to hike into any trouble.
*************

What affects fixed rate mortgages? (i know but do you?).

#33 Ex-Cowtown on 03.04.18 at 4:05 pm

Mr. Dressup…***snort*** ….Mr. Socks….***tee-hee***

Our Soy Boy PM wants to solve imaginary problems because real ones are just so…harsh!

#34 Foo Fighter on 03.04.18 at 4:06 pm

A wise man once said “Never exit an asset class.”

With all the coming head winds evident for Canada’s economy, should we at the very least be reducing exposure to Canadian Equities?

Garth, your recommendation was decrease exposure to US equities (take profits) and increase Canadian a few months back. Stay the course?

Canada’s cheap. The question is whether you are a six-month investor or a 10-year one? – Garth

#35 Stan Brooks on 03.04.18 at 4:08 pm

Interesting, the sucker apparently is expected to go down further 20 % from here in case of NAFTA failure.

https://www.poundsterlinglive.com/cad/8295-canadian-dollar-downside-is-growing-as-nafta-and-interest-rate-risks-pile-up

#36 Ex-Cowtown on 03.04.18 at 4:15 pm

OK, I’m willing to risk banishment into the nether regions of this blog, by passing this one along, but here goes:

A guy I work with recently complained about cultural appropriation. He’s Eastern European (Slavic) and was complaining about the cultural appropriation of the word “Slave”. His argument (in jest of course) is that his progenitors were the original slaves, so long ago that the word “slave” was actually named after his ancestors (Slavs). He wants other people to stop using his word and go find their own.

The point being made was that there is no end to the Social Justice rabbit hole. Once you descend everything and anything goes and lunacy rules.

Personally I find it ironic that Mr. Dressup’s dad once stated that a government has only the duty to be just init’s own time. It has no place trying to correct past injustices. Too bad Mr. Dressup was on the potty when his daddy said that one. He missed a remarkable insight.

#37 Adam on 03.04.18 at 4:27 pm

80% of people don’t have the money to max the annual and you think the government is dumb for restoring the TFSA limit to what it was before Harper used it to try and buy his way to winning the last election (which obviously failed).

Government has made a ton of questionable decisions, restoring the TFSA limit was not one of them.

TFSA room is cumulative – for your whole life. The more opportunities a government gives ts citizens to save, invest and be financially independent, the better. How can anyone argue with that? – Garth

#38 dakkie on 03.04.18 at 4:35 pm

Canada Will be the Most Impact by a Steel Tariff

http://investmentwatchblog.com/canada-will-be-the-most-impact-by-a-steel-tariff/

#39 If we all dress up like T2 on 03.04.18 at 4:36 pm

Then no one will know who is bluffing. It’s going to be quite epic for those pimps in Vancouver that professed that re always goes up. Even worse for those that built a house of cards like Eike Batista.

#40 Sitting on the toilet thinking on 03.04.18 at 4:40 pm

#12

If the the fed raises 4 times this year how long do you think BOC can hold off increasing rates before our dollar gets killed

#41 mark on 03.04.18 at 4:49 pm

Not everyone is making the money as a lot of people are on here, so ya for a lot of people 450 bucks a month is a lot of money!

Lets get a reality check from la la la land…………

mark.

#42 Michael King on 03.04.18 at 4:49 pm

Reporting from Vancouver Kitsilano (Westside). With the arrival of March, there are noticeably far fewer RE “For Sale” signs than there were mid-February. This applies to all categories. The Lower Mainland market has definitely turned south and prospective sellers must be thinking they will wait out a downturn. Next stage will be panic, when sellers realize the market isn’t coming back any time soon. Then there will be signs on every block. Seen it before in this city.

#43 Rubber dakkie on 03.04.18 at 4:52 pm

I thought you banned that dude for posting that robotic gobbledygook. Lol.

#44 Bill Ferguson on 03.04.18 at 4:54 pm

Well, the latest REBGV data dump last Friday certainly did not point to things going “swimmingly” for the Metro Vancouver SFD market with a piddly 621 SFD sales…

And, as I often mention on my FB site called, “Metro Vancouver Housing Collapse” (feel free to join, we now have 392 members and counting, since last Nov, 11) the SFD market segment that one sets the trends in every RE market both UP and “D-O-W-N…

So, come Spring, I think people will be surprised by the velocity of sales declines along with price reductions as B-20 REALLY kicks in.

Thanks for the comment but stop selling your FB page. – Garth

#45 Bill Ferguson on 03.04.18 at 4:55 pm

“…is the one that sets the trends…”

#46 Regional District along the Salish Sea on 03.04.18 at 5:01 pm

It doesn’t get much better than that. We are definitely due for a real estate depression.

https://www.nanaimobulletin.com/news/director-will-ask-again-for-a-name-change-for-the-regional-district/

#47 Scared Canadian Millenial on 03.04.18 at 5:01 pm

What happens to our Canadian dollar? Will we have to reintroduce a $1,000 pink note to buy a loaf of bread at Loblaws?

IS OUR LOONIE GOING TO CRASH OR NOT?

No. – Garth

#48 Debtslavecreator on 03.04.18 at 5:02 pm

Ray # 4
You are on the right track – governments all go broke eventually and the majority of the financial illiterate in this country will vote in an even bigger neo Marxist crook on promises of “fairness “
The rules will be changed suddenly and the game will be to confiscate and prevent anyone from escaping the theft
The government is not rational and will use tools of the trade known as currency debasement, using the “law” to steal at will even with the use of suspicion, and once the sovereign debt crisis really gets going in 2020-2021 then it goes into overdrive with the excuse to steal being “national emergency “
The general path we are on is well worn and all countries go through this
We are in the early stages of an Argentina/ Iceland / russian style economic re set that will be in our history books for centuries
We will survive but for most a total wipeout
Those who’ve been prudent / smart / lucky will suffer the most cruel outcome with most of their assets and income taken from them via currency destruction / taxes on imaginary gains and outright extortion actions through the brute use of government force

#49 For those about to flop... on 03.04.18 at 5:05 pm

Flop is Fake 04.18 at 3:46 pm
Well now I understand the problem. Your stats come that most reliable source Zolo.

I suspect you also watch Sean Hannity and listen to Milli Vanilli

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

So you are another person who wants to use one set of numbers on the way up and another set on the way down?

Haven’t you heard,Cabbage Patch Clark is gone,it is o.k to tell the truth again in B.C.

You got one thing right in your posts though.

Milli Vanilli….they were fake…

M43BC

#50 Bill Ferguson on 03.04.18 at 5:06 pm

Okey dokey!

#51 Sebee on 03.04.18 at 5:18 pm

Dog photo streak ends!

Let’s have a cat photo tomorrow Garth. I dare you!

#52 Mark on 03.04.18 at 5:28 pm

“Mark, you must have missed the morning mail:
https://www.theatlantic.com/politics/archive/2015/02/kill-stock-buyback-to-save-the-american-economy/385259/

Nothing wrong with buybacks. There’s very little that’s currently investible in the USA. And with a giant labour surplus due to extreme unemployment/underemployment, just how would wages rise?

Buybacks, rather than deploying capital wastelessly may very well be what is saving the US economy at this point.

The problem of wealth concentration is largely an issue of tax and economic policy, not corporate behavior.

#53 Andrew Woburn on 03.04.18 at 5:35 pm

#4 Ray on 03.04.18 at 2:17 pm
Canada’s next PM will be Jagmeet Singh. He will be voted in by the financially challenged millennials and overspent Boomers who are desperate to get some economic relief.

===========

Respectfully disagree that Boomers will trade a lightweight with fancy socks for another lightweight with fancy hats. With the Trump chaos train in full flight and the swooning real estate market, I expect Boomers will choose apparent financial stability which the Conservatives will attempt to sell them. Also don’t discount that the “Deep Liberal Party” has years of political experience and may engineer a shuffle of T2 advisers to save its own skin.

#54 Mark on 03.04.18 at 5:35 pm

“TFSA room is cumulative – for your whole life. The more opportunities a government gives ts citizens to save, invest and be financially independent, the better. How can anyone argue with that? – Garth”

People can save, invest, and be financially independent without a government ‘program’. The TFSA might be setting back the savings and investment plans of Canadians by giving them a ready-made tax shelter, rather than forcing them to look into the way they do their investing — ie: that GICs are tax inefficient, common equity or preferred shares held for the long term are more tax efficient.

The TFSA/RRSP/RPPs/RESPs essentially allow Canadian investors to get away with higher than natural concentrations of fixed income. Which may very well have created the conditions giving rise to the contemporary housing bubble — an excess of borrowable funds available to finance leveraged housing investment.

Also, there’s the glaringly obvious problem of the inequity caused by the cumulative nature of such accounts, that the elderly, who have had years to accumulate gains in such accounts are allowed to avoid more tax than the young who simply haven’t had much time in the market.

You have written copious amounts on this blog. That was the among the worst. – Garth

#55 conan on 03.04.18 at 5:40 pm

#38 dakkie on 03.04.18 at 4:35 pm

Trump is doing a Hail Mary on the NAFTA file. Canada will get an exemption, and a free trade deal.

Two economies, as intertwined as Canada and USA, can not be pulled apart without mega damage to both sides.

Trump needs to listen to his economic advisers. Maybe learn some history.

https://www.youtube.com/watch?v=pjP8zh_mOco

#56 Adam on 03.04.18 at 5:44 pm

It’s citizens aren’t saving, they are becoming more indebted every day (mostly due to poor choices). But giving people who don’t save more savings room to not take advantage of is hardly useful, and actually, in the current environment only serves to increase an ever widening wealth gap.

Encouraging saving isn’t working, so policies to discourage irresponsible borrowing (both on the part of lenders and borrowers) are needed, although the horse has left the barn on that one, at least for this cycle.

If you think it won’t serve a government to help (force?) its citizens save themselves from themselves, you’re dillusoonal.

#57 Andrew Woburn on 03.04.18 at 5:48 pm

#107 ex-Van on 03.04.18 at 11:59 am
Isn’t it the case that dividends subtract from money that would otherwise be spent on R&D or otherwise reinvested in the company, which in the long term is reflected in its valuation?
=====================

Warren Buffet doesn’t pay dividends because he believes he can efficiently reinvest the money and he is right. However, the subsidiary companies pay dividends to Berkshire.

There is no right answer to this question. If you can sell off shares in an appreciating company to meet personal cash needs, it has the same net effect as a dividend.

However I like prudently managed dividend paying companies because you cannot game a dividend. You have to actually earn cash to pay it. It requires planning and discipline to steadily grow dividends. As a professional accountant, I know too well how easy it is to create the illusion of growth in a company’s “assets” or to hide its liabilities off balance sheet. Think Enron.

#58 SoggyShorts on 03.04.18 at 5:52 pm

#23 BC vs. Jacinda on 03.04.18 at 3:34 pm

Time to work and pay tax like the rest of us. My kids will live to buy a home yet.

************************
I don’t even own property anywhere and I’m still disgusted by envious loser posts like this.
Just because you fail to afford a summer home, anyone who can should pay more tax to make up for your shortcomings?
Pathetic.

#59 Victor V on 03.04.18 at 5:55 pm

Report: Most popular kink among millennials is role-playing as a couple that owns a house

https://www.thebeaverton.com/2018/03/report-popular-kink-among-millennials-role-playing-couple-owns-house/

BURNABY, BC – A published study out of Simon Fraser university on generational sexuality has found that the most popular sexual kink among millennials is roleplaying as a couple that owns a house.

While older generations have often used role-play as a way to simulate various power dynamics or unlikely encounters, millennials are using the popular kink to indulge their own implausible fantasies, both sexually and monetarily.

“Nothing gets me more hot and bothered than imagining I own a two storey home that isn’t ruined by noisy upstairs neighbours,” explained Jill Catalania, 26. “When my partner first suggested we give homeowner role-plays a try, I was a bit hesitant at first. It seemed so naughty to put on a sundress and pretend I was reading a book in a yard that I paid for, while my spouse sat in the living room filling out homeowners insurance applications. But ever since that first night, it’s done wonders for our sex life.”

We’re doomed. – Garth

#60 Dead Cat Bounce on 03.04.18 at 6:05 pm

West Vancouver Stats at bottom of page for Feb 2018

https://www.realestatenorthshore.com/stats/

WEST VANCOUVER REAL ESTATE MARKET
STATS + TRENDS // February 2018

West Vancouver Listings and Sales Stats
Feb-18 Feb-17 % Change
New Listings 204 149 36.9
Total Inventory 588 478 23.0
Sales 41 56 -26.8
Sales/Listing Ratio 0.070 0.117 -40.2
Average Sale Price [SF] ($) 2,855,000 3,210,000 -11.1
Days on Market 18 17 5.9

#61 Dog in The Fight on 03.04.18 at 6:08 pm

The crocuses are coming up in my yard and I am trying to decide if purple ones are nicer than the red ones? I sent the first half of my life in Alberta and the second half in BC. Next week I will start golfing. Boy, I miss winter.

#62 jim on 03.04.18 at 6:22 pm

“NAFTA-killing tariffs the protectionist American president is preparing against Canadian steel ”

Well, the main target is China, not Canada. I think Canadians try to flatter themselves, but the big bogeyman in trade here in the USA is not Canada.

As for investing in properties, I looked into it a bit last summer and decided it isn’t worth the hassle right now. Searching for a property, dealing with mortgage issuers, finding a property management company worth its salt. Plus the price/rent ratios make it hard to get a decent rate of return.

I think Canadians were gunning for property price increases, thinking that the future would always be like the past. If you go by expert advice on investing in rental properties, I think the vast bulk of purchases in Canada were losers. You simply cannot get rich by subsidizing renters, or soaking up massive condo maintenance fee increases / special assessments.

In case of a downturn or a good opportunity, I would allocate some of my savings to a rental, but it is not something to jump into without significant research. I think I’d make more money using that time and effort to run a side business.

China is not even in the top 10 steel importers into the US. Canada will be hardest hit. – Garth

#63 common sense on 03.04.18 at 6:35 pm

TFSA’s excellent IF the future gov’ts do not need cash and change the rules somehow….maybe putting a cap on it, changing the base rate of taxes, etc. But who knows..the only sure thing is there are no sure things.

Like Mr. T always says, be balanced and diversify your assets well just in case of future surprises.

#64 Yo Yo SoggyShorts on 03.04.18 at 6:35 pm

#58 You have your eyes on the wrong balls. The objective is housing affordability and BC livability. My kids will need both and so will we in our retirement. If it takes taxes to stop the porn, then so be it. Vote Trump and be free or play dress up like T2 and come out of closets.

#65 Lee on 03.04.18 at 6:47 pm

#34 Foo Fighter,

For cheap CDN stocks look no further than Enbridge and Transcanada COrp.

#66 akashic record on 03.04.18 at 6:49 pm

China is not even in the top 10 steel importers into the US. Canada will be hardest hit. – Garth

Canada #1, China #10

https://www.reuters.com/article/us-usa-trade-factbox/factbox-top-steel-exporters-to-the-united-states-idUSKCN1GE10I

I meant ‘top 9’ of course. – Garth

#67 Zapstrap on 03.04.18 at 6:49 pm

I’m just glad we have our two free Loblaw cards salted away for a “rainy day.”

#68 Warning: some physics on 03.04.18 at 6:52 pm

Over 90% of allowable RRSP contributions are not made. Should the government cut that contribution limit by 50%? – Garth

**********
Not just yet. Let’s get this Phoenix mess sorted first, and see how much we actually need for salaries next year. By then, even fewer will remember Harper’s desperation move.

———
TFSA room is cumulative – for your whole life. The more opportunities a government gives ts citizens to save, invest and be financially independent, the better. How can anyone argue with that? – Garth
********

I’d never argue with that statement, but financial literacy is the key to the treasure box. I would suggest that the CRA’s arbitrary limits on how much one can earn in a TFSA demonstrates that it is just another shell game with rule changes – TBA. I don’t pretend to know the tax code, but every time I read anything in-depth about taxation I feel queasy.

The charity work you do here is much appreciated by all. If I may suggest one improvement it would be with respect to gender diversity. I am partial to brunettes, but perhaps we could vote??

Re Mark
He could be the next Copernicus, but I always indulge in a double Manhatten when I read Mark’s Fables. When the cherry is gone, and the glass slips from my paralyzed hand hitting my toe, I remember Newton.

#69 crowdedelevatorfartz on 03.04.18 at 6:52 pm

@#62 Jim

Ya might wanna rethink your stats there buddy.
This weeks Economist mag. Page 62 . Title ” Steel Yourself”

US Imports in Millions of Tonnes to Oct 2017

Steel from:
Canada 5.9 million tonnes
Brazil 4.5 million tonnes
S Korea 3.75 million tonnes
Mexico 3.5 million tonnes
Russia 3.25 million tonnes
Turkey 2.25 million tonnes

Aluminum from
Canada 3 million tonnes
Russia 0.8 million tonnes
UAE 0.75 million tonnes
China 0.70 million tonnes

28 % of US steel making capacity lies dormant.
61% of US aluminum smelting capacity lies dormant.
Canada is, by far, the largest supplier of both metals.
Trade Tariffs will hit Canada the hardest.

The arguement that the US should be able to make its own “strategic supply of these metals for national security is a bit of a stretch when one considers Canada is an ally and a reliable supplier.

Should be interesting watching US products made from steel or aluminum rise in price due to the tariffs.

OR is this just another NAFTA negotiating bully tactic?

#70 Smoking Man on 03.04.18 at 7:05 pm

Haha just won 18k San Manuel Casino near a big bear mountain. There taking my photo right now. Joke. Made ten times that in the last two weeks when Mr Renko Chart said reverse you Short Long USDCAD.

I love life. Ya I know it will catch up to me one day. But until that. Fun fun fun till daddy takes the Tbird away.

#71 NAFTA est morte on 03.04.18 at 7:08 pm

Trump had the FBI investigate Lorne Michaels, exec. producer of SNL. They discovered that he is Canadian.

You can blow out a candle
But you can’t blow out a fire
Once the flames begin to catch
The wind will blow it higher
(Biko)

#72 Spock on 03.04.18 at 7:09 pm

Has SCM been busy organizing protests upon being banned ?

https://www.thestar.com/news/canada/2018/03/04/mob-dressed-in-black-damages-vehicles-smashes-storefronts-on-hamilton-street.html

#73 Long-Time Lurker on 03.04.18 at 7:15 pm

#30 Flop is Fake on 03.04.18 at 3:46 pm

Where’s your proof against Flop’s data? Put up or shut up.

You’ll be looking for a new gig soon, realtor.

#74 TurnerNation on 03.04.18 at 7:15 pm

So I logged into to check Futures and I see this…the ultimate red pill wake-up.

Kanada in one sentence:

“Elite unionistas fail to shake down enough citizenry to fund fellow elites’ spending habits”

http://www.cbc.ca/news/canada/saskatoon/deficit-city-hall-drivers-speeding-1.4561801

“The City of Saskatoon says it may post a $3.1 million deficit for 2017, and it’s blaming slumping revenues from parking tickets, traffic violations and the city dump.”

If you don’t think most taxation is totally a scam…let’s say hi to some scared cattle:

– Our military…sent overseas not protecting our borders. People walk straight into Canada illegally. Whereas, us legal folk deal with yet another elite layer of expensive uniforms, Border Guard Unionistas, which hassle and degrade us at our own crossing.

– Hospitals? Good luck getting a bed at the best of times, even now T2 lets in untold thousands of related oldsters for care. And your Doc likely worked 20hrs straight before seeing you. Sweet dreams.

– Roads? G&M said QC roads costs something like 30% more per KM than elsewhere. Due to the graft and mob.

Need goverment paperwork? Pay again…pay more…for drivers lic, passport, building permits, health card, and so on. All in support of layers and layers of unions and blank cheques.

Remember, if they do not spend their budget (our money) in full they do not get more. The system is broken, get out before you’re broke.

#75 Smoking Man on 03.04.18 at 7:15 pm

Before we got to the casino wifypoo wanted to do a drive by the academy awards. LA is trully a shit Hole. Pathetic celebrity worshippers makes me want to puke.

A back drop of tent cities of the homeless. many Vietnam vets. I said let’s park and give them some loot. Hear there stories.

Tragic. Limo liberals all around. Tons of loot and they never do what I just did.

Karma bitches. Tonight will be the lowest ratings of the Oscars will I got slapped by Karma. 18k worth.

That’s how life works. You give to the truly needy. Virtue signaling don’t count.

It comes back in spades.

Starting to think there is a high likely hood that god is real.

Imagen me thinking that. Next thought in my head is, is dementia setting in or have I made a interesting discovery.

Need more proof.

#76 Chico on 03.04.18 at 7:19 pm

Today’s photo, combined with the screen shot last week of the Toronto moms talking about fallen house prices, is sobering. Even though the tumble down from insane house prices was expected by some, myself included, it’s still somewhat surreal to see the numbers in real time, black and white.

I don’t think I felt much pity for those who took on massive debt, whereas now, I do…somewhat. It’s seems like a good example where knowing the truth isn’t a pleasant thing, because others who ignore it, will get hurt.

#77 Lost...but not leased on 03.04.18 at 7:20 pm

Way I see it….Justintime Turdeau should inform the US we will re-enact the War of 1812.

Best 2 out of 3…

Winner gets Eastern Canada..

errr LOSER get Eastern Canada

#78 waiting on the westcoast on 03.04.18 at 7:24 pm

#62 Jim…

Governments don’t often tell the truth about their motives. They may be pointing at China but consider us the threat without pointing at us specifically.

https://uk.reuters.com/article/uk-usa-trade-factbox/factbox-top-steel-exporters-to-the-united-states-idUKKCN1GE12X

#79 Andrewt on 03.04.18 at 7:24 pm

#59 Victor V on 03.04.18 at 5:55 pm
Report: Most popular kink among millennials is role-playing as a couple that owns a house

https://www.thebeaverton.com/2018/03/report-popular-kink-among-millennials-role-playing-couple-owns-house/

BURNABY, BC – A published study out of Simon Fraser university on generational sexuality has found that the most popular sexual kink among millennials is roleplaying as a couple that owns a house.

—-
That’s a satirical news site, btw.

#80 RE_Investor on 03.04.18 at 7:37 pm

NO FOMO….lol

GTA RealEstate Bidding Wars:
54 Decarie Circ, Toronto; List: 749k, Sold: 830k
14 Lavina Ave, Toronto; List: 769K, Sold: 950k
59 Warren Cres, Toronto; List: 889k, Sold: 950k
4651 Dundas St. W, Toronto; List: 928k, Sold: 1.15mil
42 Sellmar Rd, Toronto; List: 999k, Sold: 1.12mil
151 Roe Ave, Toronto; List: 995k, Sold: 1.65mil

Wish me luck folks (not that I need it). Placing an offer this Wednesday. Probs go for > 930k
https://www.realtor.ca/Residential/Single-Family/19126086/219-ST-MARKS-RD-Toronto-Ontario-M6S2J1-Lambton-Baby-Point
List: $799k, Sold: xxx?? I let you know on Thursday what it sells for.

#81 broader mind on 03.04.18 at 7:43 pm

Re-Mark #54 As an elder,I resent that the TFSA is a rather new vehicle. I will not have time to stuff this thing into a monster. My sons and daughters however will handily reach a million in 25 short years. Inequity to youth, certainly not.

#82 OttawaMike on 03.04.18 at 7:44 pm

I wonder what the tribunal court for NAFTA will say?
We are still under that trade agreement.

Thanks for the input Old Ron. Appreciate your posts. Right up there with Smoking Man as the go to comments.

#83 Smoking Man on 03.04.18 at 7:55 pm

The Warren Buffet story.

While in collage he read a book on gambling. Paid his way through collage. When he graduated read a book on arbitrage. You know the story from here on in.

Bottom line. Read a good book can’t advertise mine because phyco socialists will burn down Garth ice cream store.

Gamble you animals. It’s the only way to get rich fast. And if you hit. Give most of it to a balanced portfolio that Garth preaches.

Just leave a bit out for more gambling.

One more wine and I’m going on periscope live. @smokingman if you want to see a really bad set of shit teeth.

#84 akashic record on 03.04.18 at 7:55 pm

#79 Andrewt on 03.04.18 at 7:24 pm

#59 Victor V on 03.04.18 at 5:55 pm
Report: Most popular kink among millennials is role-playing as a couple that owns a house

https://www.thebeaverton.com/2018/03/report-popular-kink-among-millennials-role-playing-couple-owns-house/

BURNABY, BC – A published study out of Simon Fraser university on generational sexuality has found that the most popular sexual kink among millennials is roleplaying as a couple that owns a house.

—-
That’s a satirical news site, btw.

If the new shades of grey is having sex as couple in your own home would not be surprising in the lights of ‘Rent-For-Sex’: Landlords Exploit Thousands Of Broke Millenials.

https://www.zerohedge.com/news/2018-03-03/rent-sex-landlords-exploit-thousands-broke-millenials

#85 Lost...but not leased on 03.04.18 at 7:59 pm

I submitted a while back that Canada’s auto industry past prosperity was based on Canada’s Commonwealth status which allowed it entry to other Commonwealth markets.

When the US was savvy to this ” advantage “, it expanded production in Canada.

Imports from foreign countries sounded the deathknell…..does Easter Canada seriously think it can avoid being Detroit 2.0

If one does even more research..the manufacturing hub of Canada was in the Maritimes, until Gov’t as per usual picks “winners and losers” in the classic battle for votes and other prostitutable commodities in our pseudo- democracy.

#86 Tony on 03.04.18 at 8:03 pm

Re: #19 Mark on 03.04.18 at 2:57 pm

You can’t increase a loss with CCA. Sounds to me like he loss money every year. Resale condos have fallen in price by about 40 percent in Calgary since 2008. In reality he will lose quite a bit more than 25 thousand dollars if he sells the condo.

#87 Nice RE deal on 03.04.18 at 8:07 pm

#80 RE_Investor – The best of luck with your offer. Its only a semi with the dam on the elbow of the Humber River nearby, so pray there is no flooding. No bus service or goods and services anywhere. Next door be watchful of the pit bull too.

#88 Reynolds531 on 03.04.18 at 8:12 pm

Am I the only one to point out Garth’s got too much faith in humanity? That loan won’t be tied to prime! It will be tied to the inverse square of whatever the f..k Hummer boy wants to jack it to.

Seriously these people will be North of 15% by the time the grass is green around their mcmansions.

#89 Stone on 03.04.18 at 8:12 pm

#72 Spock on 03.04.18 at 7:09 pm
Has SCM been busy organizing protests upon being banned ?

https://www.thestar.com/news/canada/2018/03/04/mob-dressed-in-black-damages-vehicles-smashes-storefronts-on-hamilton-street.html

———

Release the hounds!

#90 oncebittwiceshy on 03.04.18 at 8:13 pm

#80 RE_Investor on 03.04.18 at 7:37 pm
NO FOMO….lol

GTA RealEstate Bidding Wars:

<<<<<<<<<<<<<<<<<<<<<<<<<<<<

That is so cute … kinda like the "bears" posting under asking prices in 2016.

#91 Old Ron the Realtor on 03.04.18 at 8:17 pm

Hey Garth are you concerned about Donald Trump channeling Willis Hawley and Reed Smoot ? Because it sure has my attention.

#92 VICTORIA TEA PARTY on 03.04.18 at 8:19 pm

OUR REAL ESTATE, AND MORE: CRASHING ON THE REEF OF NORMAN’S WOE

I must compare the plight of those real estate-bound Mills and others, who failed to take the advice of St. Garth of It’s So Over, to the epic poem “The Wreck of the Hesperus” by Henry Longfellow, 1842.

Read the poem and see the parallels between the fate of that ship’s egotistical captain and discovery of the body of his daughter found after the storm still tied to his ship’s mast.

It is the novelized story of hubris gone mad, just like recent participants in Canadian real estate, I have coupled it with other more ominous economic realities now rattling us bigley.

In real estate, epic risk has been taken by fools who didn’t have enough intelligence to know better.

They can’t even bail out from their wave-wracked reef of debt-addled properties, Norman’s Woe indeed.

Soon they will have no more trips to warmer climes, trips to ANYWHERE, except to their lawyers.

Sidewalk cafe culture will take a serious gut punch.

Discretionary spending habits will evaporate…soon.

TO BE SOLD DOWN THE RIVER?

Now other critical factors: the most important, the “future” of NAFTA.

As I’ve written in this space before Canadians have been called upon to help Make America Great Again, by President Trump, of course.

He hasn’t asked us directly, he’s just assuming we’re gonna play in his sandbox. And he’s probably right! He says he likes Justin. Why? A soft touch? Are we awaiting a “deal we will not be able to refuse?” Don’t have any idea. Holy Moley.

On top of that there is last week’s aluminum and steel tariffs, added to softwood tariffs.

We seem to be nothing more than a wealthy American colony, fronted by a bright enough political hood ornament a certain Captain Costume, who is being hit upon by The Donald to essentially agree to sell us out to his MAGA dream.

Will we be sold out?

Our PM has said “no” kind of, sort of, but I still need to see some brass here. I also need to see what the two Opposition party leaders think! Silence so far.

Meanwhile, Big American Environmental is still campaigning for Canadians to leave our hydrocarbons “safely in the ground”; not for environmental protection but for future US pillaging.

Our politicians and NAFTA “negotiating” team have come up with nothing of substance other than disjointed talk.

Riddled with PC feminist dialectic, in its deliberations, this group probably can’t even order a restaurant breakfast without fearing some sort of legal retribution from their underage sychophantic table servers.

In our elite’s overweaning pride, and its feelings of superiority over Trump, we have been led into the buzzsaw of the true Yankee Trader, an avaricious man who spent 50 years screwing the competition to make his billions.

Now he’s turned those hard-won and highly-polished skills into screwing the hell out of the rest of us.

Look at the staffers he’s got arrayed against our’s!

No competition. Frightening, especially Trade Representative Robert Lighthizer, and Commerce Secretary Wilbur Ross. Canada has no similar folks, not even close.

Where to from here? Some guidance is needed from our “betters”.

Quickly.

#93 Samon Nights on 03.04.18 at 8:21 pm

Holy biased blog, Batman.

Funny how this blog continually slams the left-leaning (Comrade? seriously?) political landscapes of this country as a disaster in waiting, when its common knowledge that the entire world blew its financial brains out in 2008 under a right-leaning political landscape.

Neither the left nor the right in this country have a monopoly on political corruption.

#94 ITguy on 03.04.18 at 8:29 pm

Garth, the connection to your site is not secure. Need an SSL certificate or something.

#95 akashic record on 03.04.18 at 8:29 pm

I meant ‘top 9’ of course. – Garth

—-

Obviously :)

The surprising is #1 Canada. I didn’t know that.

#96 crowdedelevatorfartz on 03.04.18 at 8:30 pm

@#80 RE Investor
“NO FOMO….lol”
+++++

I’m quite sure the only people happier than the buyers…….were the sellers.

Greaterfool is the title of the blog.
You should wikipedia the definition.
Then go look in a mirror.

#97 fishman on 03.04.18 at 8:36 pm

Pretty quite with the west side Van coffee clutch crew. Everybody out of any residential that wanted out. Nobody caught the top, but of course the richest guy was closest. Nobody’s getting rid of commercial,its smokin hot.

Money is trying to go downhill but encountering a new wrinkle. Canadian company needs some investors so offers a 1st on some commercial R/E stateside. Letter comes back to lawyer drawing up the deal They want history of business , 3 year business/tax history of principles lending & 3 year personal tax returns of principles. Thats a lay down for the IRS!
Any blog dogs seen that for the lender ever, anywhere? Don’t worry, I don’t think you’ll miss the show. Its coming to a theatre near you soon.

#98 -=jwk=- on 03.04.18 at 8:45 pm

ne overlooked new rule is a new big hazard for those wanting to invest in residential rental properties in BC. Many landlords were using a “vacate” clause on fixed term leases. This was done to drastically increase rents once the tenant’s term is over or force them to vacate.

Indeed, how dare the scum bag peasant non-property owners dare to rise up against the gods who own property. They – that is the renters- MUST BE MADE TO PAY for this! They will not be treated as humans because they aren’t. They are, and always will be, ‘renters’. Next thing you know, they will want to be able to vote! or drive cars! How would property owners be able to visit their properties if renters are clogging up the roads?

#99 Capt. Serious on 03.04.18 at 8:46 pm

#63 common sense on 03.04.18 at 6:35 pm
TFSA’s excellent IF the future gov’ts do not need cash and change the rules somehow….maybe putting a cap on it, changing the base rate of taxes, etc. But who knows..the only sure thing is there are no sure things.

Well, given practically nobody is using the thing to its full extent, and people are still stuffing it with GICs, I’m not seeing a big incentive for the government to change the rules. It’s not tenable to start charging tax on something called a tax free savings account. They can’t change the general tax rate (specifically to target this) because that would piss everyone off, not just TFSA savers. I am not worried.

#100 Christy Clark loves Toronto RE Crowd on 03.04.18 at 8:47 pm

Clark’s Toronto real estate speech closed to media

Special exclusive on how to line gummbermint pockets and be too big to jail, while enjoying the profits of corruption spun through real estate.

http://thebreaker.news/news/closed-door-clark/

#101 Newcomer on 03.04.18 at 8:47 pm

One reason that Canadian rates are expected to rise is that a very low CAD would annoy the Americans. I wonder if that is less of a consideration now that the Americans have indicated that they just aren’t that into us anyway.

#102 Dog in The Fight on 03.04.18 at 8:57 pm

Trump, ever the real estate dude. Is getting ready for the greatest RE deal of all time. Canada.

#103 Ronaldo on 03.04.18 at 9:02 pm

#19 Mark on 03.04.18 at 2:57 pm

“I am thinking of selling my rental condo this year for various reasons and I will likely lose 25k after costs. I entered it in hypothetically into turbo tax for this year and it didn’t change my refund at all. Would this show up for next year as a tax dedication? Is there any better strategy for dealing with this situation?”

The sale of a condo would be at a capital loss. Capital losses are only deductible against capital gains with few exceptions.

The capital loss you claimed will be noted on your Notice of Assessment, and can be carried forward indefinitely for use against capital gains you may incur in the future. You can also carry back capital losses three years by filing appropriate paperwork with the CRA if you have previously declared capital gains.

So follow some of Garth’s advice, invest in a balanced portfolio, and over time you probably have capital gains against which you can apply the capital loss you experienced with the condo.

Also, depending on your situation, you may have CCA recapture, and perhaps even some expensable items relating to your business of operating the rental.
—————————————————————–
Am not certain on Terminal Loss would apply in the case of a condo but I had a situation some years ago when I sold a home which had been my principal residence and which I rented out after having purchased another home in a different city. Once I rented the home it was deemed to have been sold. When I finally sold the home some years later for less than the appraised value at time that I rented it, I was able to claim both Capital loss and Terminal Loss. (land and building) The terminal loss was applied against my other incomes. You may want to explore this further with CRA.

#104 Karma on 03.04.18 at 9:03 pm

Anti-Euro party 5-Star Movement is the largest party in Italy.

https://www.theguardian.com/world/live/2018/mar/04/italy-goes-to-the-polls-general-election-live

But people seem to care more about dresses at the Oscars.

#105 Laughing Stock on 03.04.18 at 9:03 pm

Trudeau trying to explain US steel & aluminum tariffs:

https://twitter.com/LeaveEUOfficial/status/970267703809380352/video/1

We are doomed.

#106 Chris on 03.04.18 at 9:19 pm

#Chaddywack

Women have faced discrimination for the past few centuries and still continue to face discrimination. Women still earn 60 cents for every dollar men make. Sexism and racism is still rampant in Canada. Trudeau took one small step to fix the problem and the Privileged White men in this country are up in revolt. Pathetic.

#107 Nonplused on 03.04.18 at 9:20 pm

Well, that’s what you get for ignoring your grandma. 3-4 times your family income was a rule of thumb for what you could afford to spend on a house for a reason. That way there was some cushion for rate hikes, equity losses, repair bills, etc., the vagaries of life. Oh well she had a lot of other nonsense advice I never followed either like “no sex before marriage” (do you mean with my wife or in general?), “nothing good ever happens after midnight” (see the previous), “get a government job it is secure”, “if you don’t need it today wait for a sale”, and “10% to God, 10% to savings, and the rest you can spend”. Good lord people who lived through WWII were prudes. May she rest in peace though her heart was in the right place.

#108 Mark on 03.04.18 at 9:27 pm

“Re: #19 Mark on 03.04.18 at 2:57 pm
You can’t increase a loss with CCA. Sounds to me like he loss money every year. Resale condos have fallen in price by about 40 percent in Calgary since 2008. In reality he will lose quite a bit more than 25 thousand dollars if he sells the condo.”

My point was, its not cut and dried that the impact to his taxes upon disposition is *just* a capital loss. He (and/or his professional advice) would need to do the calculations accordingly.

I get 2011 as being the peak of the Calgary RE market (the Canadian national peak being 2013, Canada being dominated numerically by GTA/GVR). So 40% off of 2008 prices sounds a bit exaggerated to me. Calgary’s “cheaper” but not dirt cheap, and if, like myself, you spend time there, in the GVR, and in the GTA, its apparently obvious that the quality of the housing stock constructed is substantially poorer in Calgary.

#109 Myra Andrews on 03.04.18 at 9:29 pm

The Real Estate Board of Greater Vancouver and Zola have different numbers.

I think I might know why. The REBGV includes Howe Sound as well as West Vancouver. Howe Sound includes Bowen Island, Lions Bay, Squamish etc.

So could this explain why Flop quotes 8 which may be only West Vancouver, while 24 is for West Vancouver/Howe Sound.

41 sales in West Vancouver/Howe Sound in Feb 2018 and 24 of them were detached houses per REBGV.

https://www.rebgv.org/sites/default/files/REBGV-Stats-Pkg-February-2018.pdf

#110 Ronaldo on 03.04.18 at 9:34 pm

TFSA room is cumulative – for your whole life. The more opportunities a government gives ts citizens to save, invest and be financially independent, the better. How can anyone argue with that? – Garth
—————————————————————–
And the fact that the TFSA in cumulative for your entire life is what makes it so great for everyone, young and old. The best savings vehicle ever. Why is it so difficult for some people to figure this out?

Because they were lied to. – Garth

#111 stage1dave on 03.04.18 at 9:36 pm

Best closing lines yet, couldn’t agree more…

#59 Victor; “we’re doomed”

Hahaha…that was pretty good too.

Wish I didn’t hate popcorn so much, it just isn’t the same watching, reading, and listening to all this while munching on oatmeal raisin cookies…

Nature’s perfect food, btw

#112 toronto1 on 03.04.18 at 9:41 pm

Love the terms of the loan, wonder what the collateral required will be as no one is giving 80K unsecured at 10%, would love to see the terms.

#55 Conan
i think you are mistaken, i believe that Canada will not be exempt from the steel tariffs…….

T2 was told directly and indirectly to not sign into the TPP agreement if he wanted to keep NAFTA alive– well he signed onto the TPP anyway so the US really has no other choice left

by signing onto the TPP, Canada is basically allowed a backdoor of all kinds of goods from those nations into the US (if NAFTA exists) and to make the arbitrage (spread) on those products. Pretty hard to tell if steel was made in China or Canada? tons of other products that can be purchased overseas, shipped into US through NAFTA- it happens every day and the US is wise to the scam…….

I dont see a way for the US to exempt Canada from Steel Tariffs as long as Canada is in the TPP

#113 Paul on 03.04.18 at 9:41 pm

That post in Garth’s blog entry is from the Personal Finance Canada Reddit community. It’s actually a great resource for personal finance related questions. Many of the members are well versed in accounting, finance, taxation, law etc. Highly recommend checking it out if you have something worthwhile to add to the community or are curious about personal finance in general.

The “moronic support group” made me giggle though. You sure have a way with words Garth. Lol

#114 Ronaldo on 03.04.18 at 9:43 pm

”Also, there’s the glaringly obvious problem of the inequity caused by the cumulative nature of such accounts, that the elderly, who have had years to accumulate gains in such accounts are allowed to avoid more tax than the young who simply haven’t had much time in the market”
——————————————————————
I thought I’d heard it all but this one takes the cake.

#115 Bart N Zombie on 03.04.18 at 9:50 pm

https://ca.yahoo.com/news/masked-mob-dressed-black-vandalizes-161524935.html

Hamilton has come along way since the good old days of the Barton Street Gang….seems the zombie gangs have been gentrified.

#116 Terry on 03.04.18 at 9:51 pm

“Speaking on ABC’s “This Week” on Sunday, Commerce Secretary Wilbur Ross said that Trump has spoken to world leaders about his planned tariff hikes on steel and aluminum and is not considering any exemptions to the measure.”

Here come the Trade Wars. Trump is doing exactly what he was elected to do and that is to look after the interests of the U.S. As I’ve said many time before …….. Canada only has the standard of living it has because of what the U.S. allows it to have! We are not that important and we need America more than America needs us. Canadians will find out just how much as the month and years continue to unfold.

#117 Karma on 03.04.18 at 9:51 pm

#42 Michael King on 03.04.18 at 4:49 pm
“Reporting from Vancouver Kitsilano (Westside). With the arrival of March, there are noticeably far fewer RE “For Sale” signs than there were mid-February. This applies to all categories. The Lower Mainland market has definitely turned south and prospective sellers must be thinking they will wait out a downturn. Next stage will be panic, when sellers realize the market isn’t coming back any time soon. Then there will be signs on every block. Seen it before in this city.”

I live in a Yaletown condo building that has a unit for sale. The realtor dude has been having an open house what seems to be every day this week. It’s been listed for a while so I’m not sure why there’s an open house so often. I’ve seen him just sitting there reading his phone. It’s quite sad now.

If I see him again tomorrow, I will ask him how stubborn the owner of the unit is on the price.

#118 Bart N Zombie on 03.04.18 at 10:05 pm

Canada’s cheap. The question is whether you are a six-month investor or a 10-year one? – Garth”

Garth still waiting for the punchline from Ryan column yesterday on which preferred ETF to buy…..that tease ending was not cool. Got a cool 500k to invest and waiting to pull the trigger

#119 Dead Cat Bounce on 03.04.18 at 10:06 pm

#109 Myra Andrews on 03.04.18 at 9:29 pm

Thank-you for posting Myra, that probably explains the difference in numbers. Flop always provides solid numbers, facts, and links when he can.

Unlike certain crabby pants Flop haters that haven’t made any commission sales in a few months and have to return the Audi soon.

Your info is valuable to many Flop !
Thanks for your research and time !!!

M54BC

#120 common sense on 03.04.18 at 10:15 pm

#99 Serious
Good points.

However, if invested in GIC’s, nor even if not much is invested Canada wide, it’s still money to access/tax if needed.

If the government needs money to pay debts, etc they know exactly where the $ is, who has it and how much they have invested.

#121 Bobs ur uncle on 03.04.18 at 10:28 pm

#57 Andrew Woburn

Enron did pay out dividends…

#122 D C on 03.04.18 at 10:42 pm

OMG, if it wasn’t for the 905 area code, that picture reminds me of March Break in the Tampa FL area ~4-5 yrs ago.
This won’t end well…

#123 Yorkville Renter on 03.04.18 at 11:01 pm

#114 Ronaldo…
I had to search the page to figure out how I could miss such a post, then realized why – it was from Mark, and I always skip ’em.

#80 RE_investor…
If those places listed for $100k, would you still yell Fomo? what are the comparables selling for…more or less?
buying that property to invest in how? no chance rent covers expenses and you couldn’t flip that and make $$$ either.

#124 renter in Surrey on 03.04.18 at 11:06 pm

#106 Chris

Women have faced discrimination for the past few centuries and still continue to face discrimination. Women still earn 60 cents for every dollar men make. Sexism and racism is still rampant in Canada. Trudeau took one small step to fix the problem and the Privileged White men in this country are up in revolt. Pathetic.

——————————————————————————–

Women was privileged class for past few centuries and having more and more privileges nowadays.
Suicide rate for males is three times higher than the rate for females.
Work fatality rate for male is nine times higher than the rate for females.
Homelessness rate for male is three times higher than the rate for females.
There is no wage gap.
There is no racism in the West except against white men.
You and Trudeau are pathetic.

Enough. – Garth

#125 Blacksheep on 03.04.18 at 11:11 pm

“Trudeau took one small step to fix the problem and the Privileged White men in this country are up in revolt. Pathetic.”
—————————————
I’ll address as a ‘Privileged White man’ that even voted for this goof. It’s not a problem that Trudy attempted to change things for the better, as you suggest.

It’s that he is spending 75% of his time, obsessing over this cause, flying around the planet making an ass of him self and our country, while brutally neglecting the real leadership role that he should be playing.

The next election can’t come fast enough to rid us of this embarrassing man child. His father must be rolling in his grave.

#126 meslippery on 03.04.18 at 11:16 pm

#67 Zapstrap on 03.04.18 at 6:49 pm

I’m just glad we have our two free Loblaw cards salted away for a “rainy day.”

Ok but $50.00 tax free for spouse and I why not ?
No really why not ?? Maybe I”am missing something.

#127 The Home Moaner on 03.04.18 at 11:20 pm

Everyone will get exactly what they deserve in a housing correction in this country. This is why it needs to happen. By the way this is why I voted NDP here in BC since you asked the other day what BCers are thinking. They’re thinking the NDP can’t fix anything, but can be counted on to haplessly trigger the correction.

#128 SW on 03.04.18 at 11:26 pm

So…people were lied to? That happens quite a bit.

Why wasn’t it called the Tax-Free Investment Account instead?

#129 Yuus bin Haad on 03.04.18 at 11:38 pm

OK – this is spooky – I’ve been working on a cynical comment that opens with: “Just trying to wrap my head around capital losses …” and here it is verbatim in today’s post!????

#130 YVRchick on 03.04.18 at 11:40 pm

http://vancouversun.com/business/local-business/more-than-80-per-cent-of-new-west-pre-sale-condo-buyers-chose-higher-prices-to-keep-contracts-alive
This is insanity. It baffles me that it is legal to change the terms of a contract like this. This is where the government should step in and do something. Instead their only technique seems to be creating more market distorting taxes.

#131 Smoking Man on 03.04.18 at 11:46 pm

What woman or man for that matter would want to be someones bitch in the first place.

Working sucks. Making good margend bets is what it’s about.

The whole wage gap thing is hallarious to me. I don’t do wages. Neither should anyone with 1/2 a brain

I have so much work to do down here with dumb ass humans.

#132 Karma on 03.04.18 at 11:49 pm

#106 Chris on 03.04.18 at 9:19 pm
“#Chaddywack

Women have faced discrimination for the past few centuries and still continue to face discrimination. Women still earn 60 cents for every dollar men make. Sexism and racism is still rampant in Canada. Trudeau took one small step to fix the problem and the Privileged White men in this country are up in revolt. Pathetic.”

Chris,

Listen to these:
http://freakonomics.com/podcast/the-true-story-of-the-gender-pay-gap-a-new-freakonomics-radio-podcast/

http://freakonomics.com/podcast/what-can-uber-teach-us-about-the-gender-pay-gap/

#133 EmmEmm on 03.04.18 at 11:57 pm

#94 ITguy on 03.04.18 at 8:29 pm
Garth, the connection to your site is not secure. Need an SSL certificate or something.
—————————————————————
No offence but Why ? is this blog requesting any PII data, and/or passwords ? or is it having a payment gateway ?

Purchasing an SSL key for this website would be equivalent to buy the winter tires during winters in Florida.

#134 Smoking Man on 03.05.18 at 12:34 am

35 years married coming up in May. Wow.
Two wierd people that connected.

She still looks the same as the day I met her. LSD helps.
https://youtu.be/URwX1oWdnUY

#135 Smoking Man on 03.05.18 at 12:45 am

Globalists hate men. That’s why teachers trying to make them go away

For obvious reasons.

Don’t know how lead belly got into the picture but he’s one of my hero’s.
https://youtu.be/ye2N_2ce3QE

#136 Deplorable Dude on 03.05.18 at 12:46 am

‘China is not even in the top 10 steel importers into the US. Canada will be hardest hit. – Garth’

Simplistic view….

China uses Canada and Mexico as proxies to get their steel manufactured products into the US, bypassing tariffs. Canada does not produce steel of any noticable quantity. It imports it from China and then via satellite factories manufactures products. Ditto Mexico. Big reason why Auto manufactures based in Mexico. More profit due to cheaper Asian parts…also why the big Nafta fuss over rules about ‘point of origin’ for auto makers.

Chinese Billionaire Mr. Liu Zhongtian Has 6% of the world’s Aluminium stock stored in Mexico, for tarrif free import into the US.

https://theconservativetreehouse.com/2018/03/02/unhappy-canada-vows-retaliation-for-steel-tariffs-nafta-steel-tariffs-and-an-introduction-to-liu-zhongtian/

#137 Smoking Man on 03.05.18 at 12:52 am

David Hoog blocked me after I hit him with logic

https://youtu.be/VZ8i6EGH4FI

#138 What I don't know on 03.05.18 at 1:09 am

Interest rates in Canada will NOT increase substantially. Simply because they can’t. In fact, the last two piddly increases may be reversed and we could possibly even go lower.

#139 Stan Brooks on 03.05.18 at 1:30 am

#47 Scared Canadian Millenial on 03.04.18 at 5:01 pm
What happens to our Canadian dollar? Will we have to reintroduce a $1,000 pink note to buy a loaf of bread at Loblaws?

IS OUR LOONIE GOING TO CRASH OR NOT?

——————————–

No need to ‘crash’ in Venezuelan style.

It is already 45 % down from the top against major currencies, like USD and Euro.

The sliding is accelerating due to NAFTA
Down against Euro 6 % in just 2 months the year alone.

Indication on another likely 20 % down against the USD.
Down against gold and frigging bitcoin (! 30 % + lately).

Down when oil prices stabilize.

Ironic that there is more trust in bitcoin apparently, in some bunch of hacks and gamblers than in Poloz, T2, wild bill ‘policies’.

Smoking man is kind of right, pick anything except bolivar and loonie and it rises.

2nd worse performing currency lately.
Rates should be 8-10 %.

#140 A J on 03.05.18 at 1:47 am

Enough. – Garth

Thank you Garth, sincerely.

#141 SoggyShorts on 03.05.18 at 1:50 am

#64 Yo Yo SoggyShorts on 03.04.18 at 6:35 pm
#58 You have your eyes on the wrong balls. The objective is housing affordability and BC livability. My kids will need both and so will we in our retirement. If it takes taxes to stop the porn, then so be it. Vote Trump and be free or play dress up like T2 and come out of closets.
******************
You can only tax the successful so far. If you push it too high, either there isn’t enough incentive to work extra hard to be exceptional and we all end up mediocre , or the truly dedicated and skilled just leave, taking their wealth with them.

I plan to retire very comfortably in a few years, and the way things are going in Canada it doesn’t make sense to do it here. If my wealth is just going to get more and more “redistributed”, I think I’ll take it elsewhere.

M38AB

#142 SoggyShorts on 03.05.18 at 1:59 am

For all of those who post here with a “BC houses are for BC people” attitude, and think foreigners are responsible for 10 or 20% of the housing purchases, let me ask you this:
If you are right, since the BC economy is 25% real estate related, how do you think that removing all foreign capital won’t hurt? Would knocking 20% off the price of a house help you if you lose your job?

People complain about foreign investment so much on this blog, not realizing that it also means bringing money in, not just soaking up places to live. Money spent = jobs. So what if some dude wants to buy and teardown a crackshack. He hires a bunch of Canadians to build the house, using materials bought from stores in Canada where more Canadians work etc etc

The best part about foreign capital being spent here is that we didn’t pay to create it; they didn’t use our taxes to get educated, they didn’t use our infrastructure to run their business etc. Some other country paid for all of that, and then they take their wealth out of that country and spend it on Canadians.

#143 jane24 on 03.05.18 at 2:43 am

Unfortunately there will be many more of these soon to be bankrupt immature landlord losers. There always is when the market turns and I should know as in my 30’s I was one. You learn fast though and it never happens to you again.

What is the real story on Richmond Hill please anyone? I know the suburb well since it was farmers’ fields. My cousin lived there until 10 years ago when she moved out due to her child being the only non-Chinese one in her class. As she said she welcomed ethnic minorities to Canada but didn’t want her Canadian born child to be the ethnic minority token child for the school herself. She wanted a more mixed environment for her. Went to Newmarket.

So if Richmond Hill is almost entirely Chinese and house prices have gone down 30% after China clamped down on illegal money leaving their country surely that makes a mockery of the govt report that out of country money was not goosing the Toronto RE market.

Am I tying these thoughts together wrongly guys? Are there other things happening in Richmond Hill, TO that makes it the poster child of the housing bust. Richmond Hill is not that far out, well connected and has mature community facilities. It is far from being another Milton.

#144 Dolce Vita on 03.05.18 at 2:58 am

Pretty depressing posts today about people that made bad RE decisions and those that feel sorry for them.

I do not.

They took HUGE amounts of money out of the economy, over leveraged themselves investing in RE assets at peak values that are now or destined to lose value and add to that, amateur Landlords with “investment” properties saving face, full of ego and hubris and loathe to admit they financially messed up badly but want to continue the charade (a.k.a., Extend & Pretend) – must be Millennials that were told by their parents they can do no wrong and got a trophy for just showing up.

These individuals will be purged from borrowing large sums of money in 2018 and the years to come as RE corrects and if the posts here are accurate and I believe them to be, crashes (you to Camelot YVR – Merlin finally left town).

Good ridden.

That money could have been put to BETTER use as such as investing, RRSPs, TFSAs etc., as Garth has been posting about for what seems to be millennia and yet, they think they are smarter…why they post on Reddit hoping somebody will tell them they did the right thing and what good boys and girls they were after all (ego stroking from like over leveraged birds of a feather)…Greater Fools indeed.

It will be GOOD to seem them go and out of the economy for a decade or more, so they can do no more damage.

And, I hope they take those that encouraged, advised them to behave badly as economic players…they too are to blame and should bare the consequences (idiot parents and the greedy and shameful, full of avarice from the FIRE GDP sector).

#145 Dolce Vita on 03.05.18 at 3:31 am

#69 crowdedelevatorfartz – NICELY researched. Agree with Trump supporting his industry and not that of others especially with all the capacity not utilized that you cite – economically inefficient to say the least.

#116 Terry – SO TRUE. Have been saying that before NAFTA. Good to read others think the same…most will ridicule you for saying as much – goes against the Lefty hate anything Trump narrative (a bunch of sore losers pining for Hillary that managed to lose an election with a 5 MM vote plurality = the World’s Dungiest Manager alive, yet, they wanted her as President…boggles the mind).

Canada is in a vulnerable position economically with America.

For decades we have prospered largely due to the largesse of America, being mostly under their radar (working at GE, Canada considered a 51st state in terms of market size, like CA basically) and from benevolent Presidents wanting to look the good global citizens (and of course, having bought into their Economists: Purchasing Power Parity horse manure that created their Rust Belt, the latter being later labeled a poster child for the Rule of Unintended Consequences, a Village Idiot could of told you that you would happen).

Trump is correct to employee Americans first and encourage investment in America with facilitating policy become law such as his Tax reforms.

Pity we have no one on the horizon in Canada willing to do the same and take the heat from the Social Scientists that have never bought steel or aluminum in their lives but yet, have much to say on Twitter and Facebook on the subject NOR and the same book fed Economists that have never started a business and/or held a profit/loss Management position in their proselytizing philosophical lives.

One Commenter had it right that voted for T2 but the next election cannot come soon enough to oust him…T2 is a manchild without his handlers, then again, look at his ADD resume (not as in +, as in the medical condition) and add to that he is a Trust Fund baby…what did people expect he was going to do?

Whom his replacement will be had better toughen up and stop trying to please everyone, all of the time…in the end, you please no one.

#146 under the radar on 03.05.18 at 4:19 am

#112 – second mortgage for starters , plus whatever additional security that has any value. (likely none),plus lender and legal fees.

#147 Victor V on 03.05.18 at 7:32 am

#143 jane24 on 03.05.18 at 2:43 am

Richmond Hill is ground zero in the GTA for greed, speculation and mortgage fraud. Some of this comes from foreign money, but most transactions have been from locals…the market in SFHs, in particular, has collapsed and the worst is yet to come.

#148 Gravy Train on 03.05.18 at 7:36 am

It just suddenly hit me like a bolt out of the blue!

Smoking Man reminds me so much of the character Charlie Gordon from the book Flowers For Algernon, but only at the very start and end of the book. :)

SM, you have no clue what I’m writing about, do you? :)

#149 Rooster on 03.05.18 at 7:38 am

#118 Bart N Zombie on 03.04.18 at 10:05 pm
Canada’s cheap. The question is whether you are a six-month investor or a 10-year one? – Garth”
Garth still waiting for the punchline from Ryan column yesterday on which preferred ETF to buy…..that tease ending was not cool. Got a cool 500k to invest and waiting to pull the trigger
**********
You have more than enough $$ to qualify at Garth & Co. He’s only elitist when he’s at work.

#150 Warning: some sad news on 03.05.18 at 7:55 am

#66 akashic record on 03.04.18 at 6:49 pm
China is not even in the top 10 steel importers into the US. Canada will be hardest hit. – Garth
Canada #1, China #10
********
I meant ‘top 9’ of course. – Garth
————
It takes a big man to admit he is only half right.
I erred when I opined that financial literacy is the key to the treasure box.

Roger Bannister RIP

“He banked his treasure in the hearts of his friends.”

http://www.bbc.com/sport/athletics/43273249

#151 Grass roots, stems and seeds on 03.05.18 at 8:21 am

Liberal/Russian Collusion?

Reports that an increasing number of rural Canadians are experiencing flakey internet connections under specific conditions* suggests to gifted amateur political scientists that this is meant to suppress the Conservative voice in online debates.

* Uploading only on WiFi with ADSL connection & latest, greatest Windows 10.

Direct wired ethernet connections are unaffected, but cable length limits means the suggested “fix” is applicable to hobby farmers only (i.e. Liberal sod busters).

Bell claims interference from the neighbour 1/2 km away. I think the interference is coming from further away than that ;-) Is Matt here today??

#152 crowdedelevatorfartz on 03.05.18 at 8:28 am

@#92 Victoria Tea Party
“Look at the staffers he’s got arrayed against our’s!
No competition. Frightening, especially Trade Representative Robert Lighthizer, and Commerce Secretary Wilbur Ross. Canada has no similar folks, not even close…..”
++++++

Yep.
When the Canadian NAFTA trade negotiators lined up to discuss such lightening rod issues as gender equality…the Yankees knew they were going to have a field day.
Its like the NFL playing against a small town highschool football team thats never heard of the NFL.

Bulldozed and left bleeding on the field without any idea what just happend.

The Canadian economy is about to get a NAFTA enema.

But look on the bright side.
In about two years when the housing , dollar and economy have tanked……. Sox the Clown wont have any more tricks to show the voters come election time.

#153 Stan Brooks on 03.05.18 at 8:37 am

loonie is holding good today, only 0.6 % down against USD/Euro in pre-trade hours, 1 % down yesterday/Sunday alone.

7 % down YTD.

keep up the good fight.

#154 John Dough on 03.05.18 at 8:50 am

#91 Old Ron the Realtor on 03.04.18 at 8:17 pm
Hey Garth are you concerned about Donald Trump channeling Willis Hawley and Reed Smoot ? Because it sure has my attention.
————-

Donald Trump is no Herbert Hoover – he’s more like a Dyson – sucking everything in and down.
I think the the word is ‘smite” – present tense.

#155 NOSTRADAMUS on 03.05.18 at 8:54 am

4 ACES A LAY DOWN

Real Estate for years, has been a double down lay down 4 aces bet. Its been a great run. I am a card counting Mississippi boat gambler. I only bet on a sure thing. What could possibly go wrong? Try a Royal Flush you never saw coming in your wildest dreams. Oh the horrors . A lot of Real Estate speculators, and lets be honest we are all speculators to one degree or another , will be experiencing a bad hair cut day. Shortly, and for a great number of fellow river boat gamblers the hair will not grow back .

#156 PC Party Pollster on 03.05.18 at 9:01 am

Due to the complete absence of votes from our rural constituency, we are calling the election early in favour of Doug Ford, based on the urban poll results. We will wait to see if the farmers complain about the smell.

#157 Penny Henny on 03.05.18 at 9:16 am

9:15 am and still no news on TREB’s website

#158 We can't go on like this on 03.05.18 at 9:20 am

SoggyShorts … me again.

BC did just fine when the successful had vacation properties and there was no internet porn – real estate nor you know what. Let’s say 10+ years ago. There was a good balance of those employed in home construction, sales, etc.

There is no way most people can save $400K for a down payment on a $2M house and there’s no way that people can qualify for $1.6M in mortgage requiring $300K annual income. Not even the 1%’ers are stupid enough to dive into that scenario.

Anyone that thinks that is sustainable or healthy is delusional. RE Speculating over the breakfast table and making bets way beyond ones means is a disaster as we are about to witness. Know your limit and play within it is far gone. Even the BC Lottery thieves probably think so.

Limited foreign investment makes tremendous sense. Wiping out the locals and leaving them with no sustainable way to live makes no sense.

#159 Cottingham a bargain on 03.05.18 at 9:26 am

#147 Victor V on 03.05.18 at 7:32 am
#143 jane24 on 03.05.18 at 2:43 am

Richmond Hill is ground zero in the GTA for greed, speculation and mortgage fraud. Some of this comes from foreign money, but most transactions have been from locals…the market in SFHs, in particular, has collapsed and the worst is yet to come.
———

Richmond hill no worse then anywhere else . If there is a rebound ( not saying there will be or not .. nobody knows) it will be among first to rebound

#160 Old Ron the Realtor on 03.05.18 at 9:27 am

Well with POTUS playing the Apprentice, and throwing up trade barriers on everything, it is doubtful IMO that the Bank of Canada will be touching rates. A weak Loonie may be one of Canada’s weapons to counter tariffs.

#161 Smoking Man on 03.05.18 at 9:32 am

Italy just voted in Anti Globalists.
EU going nuts. Congrats Italian Deplorables.

#162 Eyestrain on 03.05.18 at 9:46 am

#145 Dolce Vita on 03.05.18 at 3:31 am
#69 crowdedelevatorfartz – NICELY researched. Agree with Trump supporting his industry and not that of others especially with all the capacity not utilized that you cite – economically inefficient to say the least.
#116 Terry – SO TRUE. Have been saying that before NAFTA. Good to read others think the same…most will ridicule you for saying as much – goes against the Lefty hate anything Trump narrative (a bunch of sore losers pining for Hillary that managed to lose an election with a 5 MM vote plurality = the World’s Dungiest Manager alive, yet, they wanted her as President…boggles the mind)…….
Trump is correct to employee Americans first and encourage investment in America with facilitating policy become law such as his Tax reforms.
***********

Agree in principle and still willing to bend, to a degree.
So your version of Capitalism is encouraging competition within one’s own borders. What about interProvincial trade – should we tighten that up too? Not the most efficient use of capital, but if it keeps the kids off the street it might be OK. In Hamilton, Dofasco modernized and Stelco did not (insider information), and the results speak for themselves. If it weren’t for global competition, almost everything you buy would be inferior and more expensive. Not my version of utopia.

The US is numero uno in external debt:
https://en.wikipedia.org/wiki/List_of_countries_by_external_debt

Is this really a good time to rankle those who hold your IOU’s ? How about Trump flys in all the car maker again and asks them why they still build death machines with “stow and go” seats? Japanese cars built in America by American workers will get you there and back. Never blame the workers – always blame the management.

Ayn Rand be damned.

#163 waiting on the westcoast on 03.05.18 at 10:08 am

Following up to #61 Jim

Trump is using the steel and aluminum tariffs as leverage for NAFTA deal with “better” terms for US…

https://www.cnn.com/2018/03/05/politics/trump-tweet-tariffs-nafta/index.html

#164 TEMPLE on 03.05.18 at 10:17 am

…the deflationary agenda of Comrade Horgan in BC where brutal new taxes are about to tank household net worth

I find it funny that you deliberately miss the point of Horgan not letting oil money turn all of BC into a bigger version of Banff. When locals can’t afford to live where they are…er…locals, then every step has to be taken. Sure, the root cause is mostly Harper’s ten year rate cut madness and general financial illiteracy, but that still doesn’t mean out-of-province “investors” should be allowed to throw gas on our fires in BC. Every little bit counts and if ownership costs and rents are through the roof, we can’t pretend that a bunch of vacationers spending a few bucks at Subway in the summer offset the damage they are causing. Housing in BC clearly cannot persist as a free market and you are going to have to come to grips with your right wing fantasies.

No more free market? You know what that’s called, right? – Garth

#165 dharma bum on 03.05.18 at 10:27 am

#110 Ronaldo

Why is it so difficult for some people to figure this out?
——————————————————————–

I guess because, as Garth points out in today’s blogpost, that for the most part the population of this country is comprised of financial morons. The extent of their moronic behaviour, I’m afraid, extends well beyond financial knowledge.

This is why I worry that, although our current government leadership is sad, pathetic, dangerous, and economically destructive, the majority of current Canadians are just as stupid and ignorant as our leader, and will no doubt either re-elect the idiot, or vote in someone just as useless, whose garbage promises and pseudo-philosophy will be gobbled up in droves.

The concepts of practicality and reality do not dawn on this generation of losers. We now officially reside in a confederacy of dunces.

May DOG have mercy on their souls.

Arf.

#166 TEMPLE on 03.05.18 at 10:34 am

No more free market? You know what that’s called, right? –

Why are you so afraid of regulated markets, Garth? I call Horgan’s tax fair and rational and the little that is overtly socialist about it is (gasp!) actually intended to benefit the people who live here instead of rich Albertans further distorting our property markets. We live next door to disproportionately wealthy Albertans (largely because they don’t have to pay for their environmental mistakes) and Horgan is obligated to protect BC for BC residents. Do you really think Clark did better for residents? I can’t even finish typing that without laughing.

#167 Rooster on 03.05.18 at 10:44 am

#164 TEMPLE on 03.05.18 at 10:17 am
…the deflationary agenda of Comrade Horgan in BC where brutal new taxes are about to tank household net worth

I find it funny that you deliberately miss the point of Horgan not letting oil money turn all of BC into a bigger version of Banff. When locals can’t afford to live where they are…er…locals, then every step has to be taken. Sure, the root cause is mostly Harper’s ten year rate cut madness and general financial illiteracy, but that still doesn’t mean out-of-province “investors” should be allowed to throw gas on our fires in BC. Every little bit counts and if ownership costs and rents are through the roof, we can’t pretend that a bunch of vacationers spending a few bucks at Subway in the summer offset the damage they are causing. Housing in BC clearly cannot persist as a free market and you are going to have to come to grips with your right wing fantasies.

No more free market? You know what that’s called, right? – Garth
—————

At Subway, they call it Ontario Healthcare. Coming soon to an operating theatre near you:

http://www.lfpress.com/2018/03/03/londoner-stuart-cline-dies-after-mexican-hospital-saga

#168 paul on 03.05.18 at 10:45 am

#157 Penny Henny on 03.05.18 at 9:16 am

9:15 am and still no news on TREB’s website
——————————————————————–
Must be an I.T. issue, just be fixed by the end of the mouth! lol

#169 Victor V on 03.05.18 at 11:04 am

Loonie slumps to near 8-month low as Trump squeezes NAFTA partners

https://www.bnn.ca/loonie-slumps-to-near-8-month-low-as-trump-squeezes-nafta-partners-1.1017821

TORONTO – The Canadian dollar weakened to a nearly eight-month low against its U.S. counterpart on Monday after U.S. President Donald Trump used proposed tariffs on steel and aluminum as a bargaining chip in talks to revamp NAFTA.

Trump is expected to finalize the tariffs later in the week. He appeared to tie possible exemptions for Canada and Mexico to a “new” North American Free Trade Agreement as well as other steps.

Canada is the largest supplier of both steel and aluminum to the United States. Its commodity-linked economy could be hurt if NAFTA were to collapse or if more protectionist trade policies were to lead to a slowdown in global trade.

At 9:18 a.m. EST (1418 GMT), the Canadian dollar was trading 0.7 per cent lower at $1.2976 to the greenback, or 77.07 U.S. cents. The currency touched its weakest since July 7 at $1.2982.

#170 Sardonic Lizard on 03.05.18 at 11:06 am

>> #7 EmmEmm on 03.04.18 at 2:27 pm

Wow, that’s a pretty impressive portfolio you got there.

Care to share your holdings with us? Please don’t tell me you have crypto in there.

#171 fancy_pants on 03.05.18 at 11:17 am

You can be assured when everything melts, those drowning in debt will be bailed by the metro-sexual messiah riding the economic camel.

The fiscally responsible will be fleeced to pay for the fiscally irresponsible, but of course all in the name of unity and social responsibility because we are all important.

and that is how the budget ‘balances itself’.

#172 TheDood on 03.05.18 at 11:31 am

#158 We can’t go on like this on 03.05.18 at 9:20 am

…..Limited foreign investment makes tremendous sense. Wiping out the locals and leaving them with no sustainable way to live makes no sense.
__________________________________________________

Too many jumped off the fiscal cliff to buy overpriced RE they could not afford. Cheap credit, RE marketing (FOMO) and “everyone else was doing it” being the reasoning. Some have the cash and credit to ride out the storm, those that don’t, too bad.

If all net worth is in RE, you should have seen the storm rising a long time ago and got your money out. If you didn’t, then you rolled the dice and will probably lose. Getting RE back to reasonable price makes all the sense in the world. For those who’ve treated RE like an investment, no sympathy whatsoever.

#173 Steven Rowlandson on 03.05.18 at 11:41 am

Sunk? Try not launched yet. Still waiting to get started.

#174 Old Ron the Realtor on 03.05.18 at 11:42 am

TO PENNY HENNY :

Was told this a.m. that the data will take 3 or 4 business days to process. Today being Day # 3. My “9 a.m. call” was construed from a phone call last week. Nobody actually guaranteed 9 a.m. I will be more careful next time.

#175 Zapstrap on 03.05.18 at 11:46 am

#150 Warning: some sad news on 03.05.18 at 7:55 am

Roger Bannister RIP

“He banked his treasure in the hearts of his friends.”

Remember my Dad telling me he took my Grandfather (on my Mothers side) to see the miracle mile at Empire Stadium. Frequently talked about it. One of his highlights. RIP

#176 T on 03.05.18 at 11:49 am

Stan Brooks, Mark, SCM,

None of you provide any value. You are all just monotonous characters, repeating the same garbage, polluting this blog with your blitherings.

Mark – real estate values in YVR and GTA did not peak in 2013. Ross Kay never said they did, you are hearing what you want to and misrepresenting his point of view to support your failed argument. With the information you often present here I feel you have the same problem in every aspect of your life. Learn to learn.

Stan, I have yet to find any value in any of your posts. I get it – you think everything is falling apart, you hate your life and everything is bad. Thanks.

SCM, I hope you are never allowed to post again. You are truly incompetent and a waste of time. Anyone who believes SCM is providing some type of valid point of view needs their head examined. SCM is / was here to troll, plain and simple.

Now about the current re and debt debacle, and the ‘warning signs’ starting to be seen around town such as the one featured as the pic for this post. I’ve been seeing these exact signs up around Yorkville Mall for almost a year, since about peak gta RE last April.

Here’s another warning sign; big name developers are stating to pay large commissions to agents. Rarely do these developers compensate realtors, now it’s becoming the norm, and more than a few points on the deal. New construction home sales are dead.

#177 Steven Rowlandson on 03.05.18 at 11:54 am

Re#47
You won’t need a $1000 to buy a loaf of bread. You will however run the risk of having to import your bread because we are apt to lose the ability to grow the ingredients here in Canada due to the mini ice age or worse and you might not be fully employed or well paid which means that you might have to do some gardening (root and cold crops) or hunting and fishing to help put food on the table. Things come full circle over time.

#178 Damifino on 03.05.18 at 11:55 am

#128 SW

Why wasn’t it called the Tax-Free Investment Account instead?
—————————-

I think it was the late Jim Flaherty’s idea to call it a savings account. Using the word ‘investment’ would have confused a lot of voters and sound too much like something only for the one percent.

#179 Renter's Revenge! on 03.05.18 at 11:56 am

#37 Adam on 03.04.18 at 4:27 pm
80% of people don’t have the money to max the annual and you think the government is dumb for restoring the TFSA limit to what it was before Harper used it to try and buy his way to winning the last election (which obviously failed).

Government has made a ton of questionable decisions, restoring the TFSA limit was not one of them.

TFSA room is cumulative – for your whole life. The more opportunities a government gives to its citizens to save, invest and be financially independent, the better. How can anyone argue with that? – Garth

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

It’s such a ridiculous argument, based purely on jealousy and envy. I don’t know why it keeps rearing it’s ugly head. The existence of the TFSA and the fact that 80% of people don’t have any money to put in it have nothing to do with each other.

80% of Canadians are unwilling to move for economic opportunities. Maybe that’s why they don’t have enough money to fill their TFSAs:

https://www.theglobeandmail.com/report-on-business/rob-magazine/canadians-refuse-to-move-to-find-workand-its-hurting-theeconomy/article38027802/

#180 Guy in Calgary on 03.05.18 at 12:00 pm

#19 Mark on 03.04.18 at 2:57 pm

Generally not the best idea to claim CCA on a rental property.

#181 Duke on 03.05.18 at 12:03 pm

#176 T on 03.05.18 at 11:49 am
Stan Brooks, Mark, SCM,

None of you provide any value. You are all just monotonous characters, repeating the same garbage, polluting this blog with your blitherings.

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

You don’t have right to judge them, dude. The only person who can is Garth because this is his blog. As long as he allows them, it is fine. Don’t we have freedom of speech in Canada?

#182 Old Ron the Realtor on 03.05.18 at 12:10 pm

HEY T

Can’t comment on most of your post, but Developers have been paying Brokers/Sales Reps to sell their “new” inventory for some time. It is a business decision and not related to specific market conditions.

Their business models have figured out that they can add tens of thousands of sales people to the sales team for a commission. It is worth it for them.

Having said that Toronto Home Builders said the sales for January 2018 were 48% lower than January 2017, which I think was your main point.

Too many posts, got to get to work. ORTR out.

#183 Mark Baum on 03.05.18 at 12:12 pm

Loonie getting wrecked today. Hopefully the BOC has 2-3 interest rate hikes in their holster this year.

#184 James on 03.05.18 at 12:38 pm

#148 Gravy Train on 03.05.18 at 7:36 am

It just suddenly hit me like a bolt out of the blue!

Smoking Man reminds me so much of the character Charlie Gordon from the book Flowers For Algernon, but only at the very start and end of the book. :)

SM, you have no clue what I’m writing about, do you? :)
______________________________________
Is he the mouse or Charlie?

#185 young & foolish on 03.05.18 at 12:47 pm

The loonie is falling off a cliff …..

#186 JohnnyBoy on 03.05.18 at 12:52 pm

#70 Smoking Man on 03.04.18 at 7:05 pm

Haha just won 18k San Manuel Casino near a big bear mountain. There taking my photo right now. Joke. Made ten times that in the last two weeks when Mr Renko Chart said reverse you Short Long USDCAD.

I love life. Ya I know it will catch up to me one day. But until that. Fun fun fun till daddy takes the Tbird away.
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
My god that place is pathetic. My wife’s uncle lives near there in San Bernadino. The Bee slots up on the second floor they are the only ones that ever paid. Had the seafood buffet it was good, drinks ok people who work in there are nice and fast haven’t tried the Rock and Brew yet next time I’ll check it out. Slots are the tightest in the entire state though, most smart people in Cali apparently go to Vegas why there?

#187 Dogman01 on 03.05.18 at 12:53 pm

China produces 49% of world steel……

http://money.cnn.com/2018/03/02/news/economy/steel-industry-statistics-us-china-canada/index.html

Trump saw that the rival Global hegemon pretty much has it in the bag…..

Now that China also has a “president for life”

Trying to figure out how to get America’s mojo back….

Now I for one am glad to have lived most of my life under the American hegemon, I just do not think the China hegemon will be so benevolent.

#188 IHCTD9 on 03.05.18 at 12:54 pm

#4 Ray on 03.04.18 at 2:17 pm
Canada’s next PM will be Jagmeet Singh. He will be voted in by the financially challenged millennials and overspent Boomers who are desperate to get some economic relief. Jagmeet will focus on income redistribution and focus particularly on anyone that is anywhere near financially comfortable. Income taxes will rise and the TFSA will either be abolished, or capped at say $250,000 where growth over this will be ‘Income taxable” There will be no where to hide.
__________________

Indeed, Jagmeet has to be getting more popular in voters’ minds as of late. Regardless of who gets in, trying to fix things via wealth distribution schemes is dooming Canada to more economic and financial trouble. We’re really getting pounded with the extreme left ideological based economic and financial policies of T2. Jagmeet would be more of the same.

There is always an escape though. That’s why wealth distribution never works. Governments move at a glacial pace, and the wealthy can avoid paying longer than the economy can stay afloat.

Speaking for myself, there is only two ways any government can seriously hope to extract a significant new portion of revenue from me – both lead to political suicide.

Their call. I can outlast 95+% of the general population before grabbing my pitchfork and torch. Many who hope to benefit from robin hood politics won’t because they make too much (ie over minimum wage), then it’s bull run time.

For todays highly mobile youth, leaving the country is an easy option. For the retired, there is no low hanging fruit and no blood in stone. The wealthy retired can leave even easier than the youth. Canada is jam packed with folks with dual Citizenship.

Understanding what is coming, and planning for it; is all a guy/gal needs to do.

#189 A J on 03.05.18 at 12:54 pm

It’s actually comical reading some of these comments, as you all get worked up about things that haven’t even happened yet or may never happen. You all need to take a deep breath and take this one day at a time. It’s okay to speculate, but calling people “idiots” for something that hasn’t even happened, is a bit much. I didn’t realize that so many people in this country have it out for their fellow man. Amazing what happens when the political landscape shifts a bit. Everyone is out for blood. Nothing is constant. Markets go up and down. But the evil sentiments some people tout here is mindboggling to me.

#190 Penny Henny on 03.05.18 at 1:19 pm

174 Old Ron the Realtor on 03.05.18 at 11:42 am
TO PENNY HENNY :

Was told this a.m. that the data will take 3 or 4 business days to process. Today being Day # 3. My “9 a.m. call” was construed from a phone call last week. Nobody actually guaranteed 9 a.m. I will be more careful next time.
//////////////

I see that January numbers were not released until Feb 6th, so it would perfectly reasonable for Feb numbers to come out March 6 or tomorrow

#191 Guy in Calgary on 03.05.18 at 1:27 pm

#103 Ronaldo on 03.04.18 at 9:02 pm

If you change the use of your property from primary residence to a rental, there is a deemed disposition at FMV when the change occurs.

#192 Penny Henny on 03.05.18 at 1:32 pm

#181 Duke on 03.05.18 at 12:03 pm
#176 T on 03.05.18 at 11:49 am
Stan Brooks, Mark, SCM,

None of you provide any value. You are all just monotonous characters, repeating the same garbage, polluting this blog with your blitherings.

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

You don’t have right to judge them, dude. The only person who can is Garth because this is his blog. As long as he allows them, it is fine. Don’t we have freedom of speech in Canada?
???????????????????

Huh? We don’t have the right to judge?
Is that what the teacher told you?
Maybe what you meant to say was it is up to Garth if he wants to cut them off at the knees.
By the way T has made some good points.
Mark is delusional.
Stan is suffering from depression.
SCM is a troll.

#193 Stone on 03.05.18 at 1:43 pm

#185 young & foolish on 03.05.18 at 12:47 pm
The loonie is falling off a cliff …..

———

Ain’t a globally balanced and diversified portfolio grand? Hooray!

#194 Stan Brooks on 03.05.18 at 1:50 pm

#176 T on 03.05.18 at 11:49 am
Stan Brooks, Mark, SCM,

None of you provide any value. You are all just monotonous characters, repeating the same garbage, polluting this blog with your blitherings.

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

No value?

I told you in my last few posts that:

1. The loonie will go further down/it does, 2 % down since Saturday

2. That TSX will underperform and why.

3. What the real inflation is.

4. How you are going to get screwed on your pension and will never retire.

and that is not of a value to you?

It is economy/real estate blog. What do you expect, porn?

I surely hope these posts are of a value to someone, if not you, too bad.

Can not satisfy the sensitivity and sophistication of all the frozen brains out there, hopefully at least some will unfreeze.

#195 Old Ron the Realtor on 03.05.18 at 1:50 pm

PENNY: They will be here when they gets here I guess.

Sales volume will be brutal, prices not sure yet.

#196 Stan Brooks on 03.05.18 at 1:51 pm

#193 Stone on 03.05.18 at 1:43 pm

Ain’t a globally balanced and diversified portfolio grand? Hooray!
==========

It won’t help your pension.

#197 Ed. on 03.05.18 at 1:51 pm

#189 A J on 03.05.18 at 12:54 pm
It’s actually comical reading some of these comments, as you all get worked up about things that haven’t even happened yet or may never happen. You all need to take a deep breath and take this one day at a time. It’s okay to speculate, but calling people “idiots” for something that hasn’t even happened, is a bit much. I didn’t realize that so many people in this country have it out for their fellow man. Amazing what happens when the political landscape shifts a bit. Everyone is out for blood. Nothing is constant. Markets go up and down. But the evil sentiments some people tout here is mindboggling to me
*************

Don’t sweat the small minds. Most of them are just paid robo-callers. If I could get Fibe I’d jump at that gig too. The other ones couldn’t even spell their own names on a resume. Is that considered hate speech?

PS I happen to know Garth keeps many of the love letters to himself.

#198 jess on 03.05.18 at 1:52 pm

Canada Will be the Most Impact by a Steel Tariff?

https://www.evraz.com/products/business/constructional/evraz_na/
EVRAZ North America is a leading steel manufacturer built on the pedigree of successful steel companies – formerly known as Oregon Steel, Rocky Mountain Steel and IPSCO. In 2016 EVRAZ North America produced more than 1.6 million tons of flat, long, and tubular steel products for major markets including infrastructure, defense, energy and rail.

The company is headquartered in Chicago, Ill., and its six manufacturing facilities are located in Portland, Ore.; Regina, Saskatchewan; Pueblo, Colo.; Calgary, Camrose and Red Deer, Alberta. EVRAZ North America also has 18 fully-owned scrap operations throughout Canada and the United States.

In North America, EVRAZ is the No. 1 producer of rail, largest producer of large diameter (LD) pipe and a leading producer of steel plate. EVRAZ is the No. 1 producer of LD and small diameter (SD) pipe in Canada.
2006 – Abramovich pays £1.6bn for 41% of Evraz
How a Russian Steel Oligarch and Putin Ally Is Profiting from the …
https://www.desmogblog.com/2017/02/13/abramovitch-putin-keystone-xl-steel

Feb 13, 2017 – DeSmog has uncovered that 40 percent of the steel created so far was manufactured in Canada by a subsidiary of Evraz, a company 31-percent owned by Russian oligarch Roman Abramovich. Evraz has also actively lobbied against provisions which ..

#199 chopstix on 03.05.18 at 1:52 pm

#2 BC LANDLORD on 03.04.18 at 2:08 pm
Lot’s has been written here about the hazards of investing in rental residential properties. Like how they are net money losers especially for recently purchased properties.

One overlooked new rule is a new big hazard for those wanting to invest in residential rental properties in BC. Many landlords were using a “vacate” clause on fixed term leases. This was done to drastically increase rents once the tenant’s term is over or force them to vacate. With a less than 1% vacancy rent in the lower mainland, rents are rising a torrid pace, and this was basically the Landlord’s insurance policy against it. Renters all over Vancouver, Victoria and Kelowna were either forced or their rents increased very substantially.

Well that’s all over. As of December 11th 2017, the NDP abolished the use of new “vacate” clauses. And current leases that had “vacate” clauses written in them are null and void. Landlords can now only increase rents once per year by the Government declared rate which is currently 4% (most past years have been less).

Imagine the thousands of landlords that were expecting to threaten their current tenants with eviction to drastically increase rents but now can only increase by a minor amount.

For those individuals thinking about becoming landlords in BC – beware.
——————————————-
perhaps not so fast…i was reading (globe and mail last week?) that many landlords in toronto are getting around this and are evicting tenants by saying they’re moving into the unit themselves(also read of this happening alot in maple ridge bc)…then i guess in a few months or so they ‘move out’ and open the suite again for a higher rent.
crazy situation all around driven by greed.

#200 Heloguy on 03.05.18 at 1:56 pm

Financial literacy is the key to the treasure box.

Just too many uninformed people out there with no desire to learn.

#201 jess on 03.05.18 at 1:57 pm

Aluminum prices have risen more than 20 percent in the last three years

The aluminum F-150
A Ford plant in Louisville, Ky., has started making two aluminum-bodied sport-utility vehicles as well as Super Duty trucks.

https://www.nytimes.com/2018/03/01/business/ford-f150-aluminum-trucks.html

#202 A J on 03.05.18 at 2:02 pm

#197 Ed.

Haha fair enough. All you people outraged at everything, watch this….
https://youtu.be/UL67FQ_uGBg

The media is keeping you outraged on purpose. Do you actually really care about Trudeau’s outfits in India? Or did the media tell you you care? Think about it.

#203 Victor V on 03.05.18 at 2:08 pm

#160 Old Ron the Realtor on 03.05.18 at 9:27 am
Well with POTUS playing the Apprentice, and throwing up trade barriers on everything, it is doubtful IMO that the Bank of Canada will be touching rates. A weak Loonie may be one of Canada’s weapons to counter tariffs.

=======

Notwithstanding what the B of C does with the overnight rate, with the US Fed raising 3-4 times this year, fixed mortgages in Canada are headed north.

#204 jess on 03.05.18 at 2:10 pm

Toronto condo owner discovers unit listed on Airbnb behind her back — with more than 70 reviews
Units rented out without owners’ consent can violate condo, tenant legislation, experts say

http://www.cbc.ca/news/canada/toronto/condo-rentals-airbnb-investigation-1.4560076

#205 I’m stupid on 03.05.18 at 2:13 pm

#195 Old Ron the Realtor

Treb has spent the entire morning trying to put lipstick on that pig. I don’t think there’s enough lipstick on the planet to make that pig beautiful.

#206 Newcomer on 03.05.18 at 2:13 pm

#164 TEMPLE on 03.05.18 at 10:17 am
… Housing in BC clearly cannot persist as a free market…
——-

It never has been a free market. Governments decide what land can be used for what purpose and set the conditions for borrowing money to buy that land. I think you mean an open market.

#207 Mark on 03.05.18 at 2:31 pm

“Mark – real estate values in YVR and GTA did not peak in 2013. Ross Kay never said they did, you are hearing what you want to and misrepresenting his point of view to support your failed argument. With the information you often present here I feel you have the same problem in every aspect of your life. Learn to learn. “

You’re certainly entitled to your opinion, however wrong it is. However, I came to my conclusions independent of Ross Kay based on research into the markets. I didn’t even learn of the existence of Ross Kay’s research until years later, which basically corroborated my own. 2013 was the peak of Canadian RE, with only a few minor exceptions (ie: Calgary 2011, Edmonton 2007, etc.). Alleged increases since then have been sales-mix and quality-change driven, ie: not something that an individual owner of an individual unit could ever realize through a sale. As a result, in the post-2013 era, there was a profoundly deflationary macro force in Canada’s economy due to credit expansion to individuals no longer being systemically possible and credit spreads have expanded, as they ordinarily do in stagnant asset prices.

The rest of your comment, completely out of line. There’s some posters here that I wouldn’t mind spitting on at times, but I limit my attacks of them to the argument or claim they make, not to their person.

#208 Rooster on 03.05.18 at 2:33 pm

#200 Heloguy on 03.05.18 at 1:56 pm
Financial literacy is the key to the treasure box.

Just too many uninformed people out there with no desire to learn.
**********

I respect your opinion, but I beg to differ. I believe that financial illiteracy exists because there is no money to be made in showing people how to get ahead. DIY learning takes a lot of time that many people do not have, and math is something that most people shun because schools excel at teaching the wrong things to the wrong people at the wrong time. Forget the trig and algebra and statistics at least until grade 10, and focus on interest and compounding and amortization. What else matters to the 95%?
I learned more on this blog in 6 months than I have in 50-odd years. And I was a ‘Junior Achiever’ – I only lasted a year though – it was dead boring.

How about a blog for kids Garth? With prizes!!

#209 My dog has issues on 03.05.18 at 2:42 pm

Smoking man #75

Proverbs 19:17

Good on you old smoking man

#210 Rooster on 03.05.18 at 2:46 pm

Can I get a late slip?

And another thing:
Schools got rid of Grade 7/8 shops hoping to turn us into a nation of STEM grads.
What we have instead is a cohort of people who would have enjoyed working with their hands, but can only sling coffee at McDonalds and Starbucks.

Fini

#211 Stan Brooks on 03.05.18 at 2:47 pm

#176 T on 03.05.18 at 11:49 am

some relevant I hope news:

To every realtor and hopeful of Amazon headquarter ending up in Toronto:

http://www.businessinsider.com/top-5-amazon-hq2-picks-according-to-bank-of-america-2018-3

And with that disclaimer in place, BofA predicts that top five contender cities, listed alphabetically are:

Atlanta, GA,
Boston, MA,
Denver, CO,
Raleigh, NC
Washington D.C. (incl. Montgomery County, MD and Northern VA).
———————-

So now relax, chilax and find another intended use for that roof, garage, basement – it won’t be hosting Amazon’s engineers.

#212 Matt from So Long Toronto on 03.05.18 at 2:47 pm

People putting sign posts to lend money at 10%.
This is just amazing.

Even more amazing, this weekend, someone in the auto-loan department of one of the big banks told me that they lend to subprime borrowers at 29%, for the first year. You read this right: 29%. When they look at applications, they know when a profile won’t be able to pay for long, but they lend the money anyways. When they stop paying, after the first warning, they send a company to take the car away.

The best part. Those sub-prime borrowers don’t take loans at 29% to have old cars. They get new cars. That might explain why there are so many Audis on the road.

I just put up blog #2. It’s the tale of our move to L.A during the 2008 financial crisis. Car pictures are included.

#213 Victor V on 03.05.18 at 2:51 pm

BlackRock predicts Bank of Canada will increase interest rates only once more in 2018

https://www.thestar.com/business/2018/03/05/blackrock-predicts-bank-of-canada-will-increase-interest-rates-only-once-more-in-2018.html

The world’s biggest money manager is breaking from consensus, saying the Bank of Canada will increase interest rates only once more in 2018 — if that.

While none of the 21 analysts surveyed by Bloomberg expects a hike at Wednesday’s central bank announcement, strategists and traders remain convinced that officials are on course to raise rates at least two, and potentially three more times before year-end.

Yet concerns over household debt, investment activity, business formation, and trade will prompt BOC governor Stephen Poloz to stand pat until the second half, according to Aubrey Basdeo, head of Canadian fixed income at BlackRock Inc. Even then, he predicts one rate hike at most before the year is out. That would be a change of pace for a central bank that’s tightened monetary policy at three of its past five meetings, spurred on by strong growth and a surge in employment.

#214 T on 03.05.18 at 3:02 pm

182 Old Ron the Realtor on 03.05.18 at 12:10 pm
HEY T

Can’t comment on most of your post, but Developers have been paying Brokers/Sales Reps to sell their “new” inventory for some time. It is a business decision and not related to specific market conditions.

Their business models have figured out that they can add tens of thousands of sales people to the sales team for a commission. It is worth it for them.

Having said that Toronto Home Builders said the sales for January 2018 were 48% lower than January 2017, which I think was your main point.

Too many posts, got to get to work. ORTR out.

—————

Completely agree, some developers do co-operate.

However there are a few developments in the east of the gta paying out much higher commissions then normal, double digits. If you have time would you be able to contact a few for more details? I hear this is very hush hush and only promoted to realtors as to not let it get out to the media. I would start with developments in Ajax.

#215 jess on 03.05.18 at 3:17 pm

Former Russian spy critically ill in UK ‘after exposure to substance’

Sergei Skripal, 66, and woman in 30s found unconscious on bench in Salisbury shopping centre

https://www.theguardian.com/world/2018/mar/05/salisbury-incident-critically-ill-man-is-former-russian-spy-sergei-skripal

Skripal’s sudden and unexplained illness will invite comparisons with the poisoning in 2006 of another Russian spy, Alexander Litvinenko.
Christopher Steele – then a senior MI6 officer and the subsequent author of the Trump dossier – led an inquiry by government into the killing. He swiftly concluded that the Kremlin was behind the assassination. Only Russia had the capacity to produce polonium, which can only be obtained from a nuclear reactor.

#216 jess on 03.05.18 at 3:26 pm

“Financial literacy is the key to the treasure box.”
quants with algos)

=

How is financial literacy taught in Ontario schools?
http://www.edu.gov.on.ca/eng/parents/financial.html

#217 A J on 03.05.18 at 3:43 pm

#212 Matt

Will check out your newest post, thanks Matt!
—————————
Also, governments don’t want their citizens to be financially literate. If they were smart with money, they wouldn’t spend, spend, spend and then work, work, work to pay it all off. Financial illiteracy keeps the economy rolling (at least for a time).

#218 X on 03.05.18 at 3:47 pm

re#37 Adam-“80% of people don’t have the money to max the annual and you think the government is dumb for restoring the TFSA limit to what it was before Harper used it to try and buy his way to winning the last election (which obviously failed).

Government has made a ton of questionable decisions, restoring the TFSA limit was not one of them.”

TFSA room is cumulative – for your whole life. The more opportunities a government gives ts citizens to save, invest and be financially independent, the better. How can anyone argue with that? – Garth

Most people fail to realize that it would be nice to have the contribution room. They only see the day to day picture. When my father passed, it would have been nice for my mother to avoid a few additional dollars of taxes to shelter in a TFSA. They are quite far from the 1%ers T2 pitched to voters when he said he wanted to cut this tax.

#219 Stan Brooks on 03.05.18 at 3:47 pm

#213 Victor V on 03.05.18 at 2:51 pm
BlackRock predicts Bank of Canada will increase interest rates only once more in 2018

https://www.thestar.com/business/2018/03/05/blackrock-predicts-bank-of-canada-will-increase-interest-rates-only-once-more-in-2018.html

The world’s biggest money manager is breaking from consensus, saying the Bank of Canada will increase interest rates only once more in 2018 — if that.

While none of the 21 analysts surveyed by Bloomberg expects a hike at Wednesday’s central bank announcement, strategists and traders remain convinced that officials are on course to raise rates at least two, and potentially three more times before year-end.

Yet concerns over household debt, investment activity, business formation, and trade will prompt BOC governor Stephen Poloz to stand pat until the second half, according to Aubrey Basdeo, head of Canadian fixed income at BlackRock Inc. Even then, he predicts one rate hike at most before the year is out. That would be a change of pace for a central bank that’s tightened monetary policy at three of its past five meetings, spurred on by strong growth and a surge in employment.

—————————————-

That is no news, I already stated it (BEFORE Black Rock)

Max one more rate hike in 2018 for BOC.

Loonie creamed, TSX nonperforming.

#220 X on 03.05.18 at 3:48 pm

edit…..not ‘tax’. ‘this investment vehicle’

#221 SimplyPut7 on 03.05.18 at 3:52 pm

#213 Victor V on 03.05.18 at 2:51 pm

If National Bank’s Chief Economist and Strategist, Stefane Marion says it’s only one rate hike, then I will believe it.

Otherwise, I think it will be three and the Bank of Canada will try to justify why they need the rate hikes when homeowners who bought in GTA and YVR in the last couple of years will barely be able to make the payments.

http://www.greaterfool.ca/2018/02/02/the-ride-5/

See #73 SimplyPut7 on 02.02.18 at 7:29 pm

#222 Paul on 03.05.18 at 4:05 pm

#2 BC LANDLORD on 03.04.18 at 2:08 pm

Lot’s has been written here about the hazards of investing in rental residential properties. Like how they are net money losers especially for recently purchased properties.

One overlooked new rule is a new big hazard for those wanting to invest in residential rental properties in BC. Many landlords were using a “vacate” clause on fixed term leases. This was done to drastically increase rents once the tenant’s term is over or force them to vacate. With a less than 1% vacancy rent in the lower mainland, rents are rising a torrid pace, and this was basically the Landlord’s insurance policy against it. Renters all over Vancouver, Victoria and Kelowna were either forced or their rents increased very substantially.

Well that’s all over. As of December 11th 2017, the NDP abolished the use of new “vacate” clauses. And current leases that had “vacate” clauses written in them are null and void. Landlords can now only increase rents once per year by the Government declared rate which is currently 4% (most past years have been less).

Imagine the thousands of landlords that were expecting to threaten their current tenants with eviction to drastically increase rents but now can only increase by a minor amount.

For those individuals thinking about becoming landlords in BC – beware.

POS Landlords got what they deserved.

#223 Steven Rowlandson on 03.05.18 at 4:08 pm

Given that the contribution limit is a paltry $450 a month, this tells you plenty.

That is a weeks pay for skilled tradesmen especially wood workers , stair builders, framers ect. That is the real world and not the privileged world of government or trade unions.

#224 Stan Brooks on 03.05.18 at 4:19 pm

https://www.cnbc.com/video/2018/03/02/kevin-oleary-if-tariffs-are-a-negotiating-tactic-im-worried.html

Apparently Shell moved 12 billion investment from Calgary to Texas and Conoco Philips – 17 billions due to higher taxes, including carbon taxes in th elast few months alone.

The country is shell shocked.

Not just non-competitive corporate taxes, but also brutal personal taxes.

There is a lot of people running around worried.

========

Apparently not the socks boy and the chateau kid.
Nor Mr, BOC (strange red spots on his face though, I bet he will be retiring due to illness soon).

They are well set to retire in their catsles/french villas/BIS lucrative jobs once the thingy hits the fan.

#225 LivinLarge on 03.05.18 at 4:23 pm

“There’s more, says the bank. Almost half think TFSA contributions are linked to income (thank T2 for that one), while 60% don’t actually know the annual limit.”…blame T2 for all you wish, he’s diametrically opposite to you philosophically but anyone who is so ill informed about the basics of TFSA rules has only themselves to blame for the foolishness. It’s not like TFSAs are brand new instruments…we’ve had them long enough and they’re simple enough to comprehend.

If you really need to blame someone then blame the rocket scientist who named them tax free “Savings Accounts”. Even calling them “Tax Free Retirement Savings Accounts” would have gone a long way toward avoiding the misconceptions.

#226 jess on 03.05.18 at 4:26 pm

millennials and their BLOOD plasma (what is their cut)
selling to the boomers

So far, they’ve treated a hundred individuals with blood plasma donated by 16 – 24 year olds.
….study at Stanford University to test the safety and feasibility of giving young blood plasma to people with mild to moderate Alzheimer’s Disease.
http://www.cbc.ca/radio/quirks/detecting-the-first-stars-young-blood-rejuvenates-old-brains-acoustic-tractor-beam-and-more-1.4557129/the-vampire-molecule-scientists-discover-why-young-blood-helps-reverse-aging-1.4557132

e.g.
https://www.ambrosiaplasma.com/

PROCEDURE

Young blood is an exciting new therapy which shows promise for aging and the reversal of conditions such as Alzheimer’s disease. Our patients have reported improvements in areas such as energy, memory, and skin quality. The treatment is an outpatient procedure and takes about 2 hours.

1 liter treatment for $8,000

2 liter treatment for $12,000

#227 Blacksheep on 03.05.18 at 4:48 pm

Don’t know if its already been said:

Trump is all bluster on this one, he has no intention of putting 25% & 15% tariffs on incoming metals.

It’s a bargaining chip to get what they want from NAFTA.

The T’s will be drastically reduced or eliminated altogether, as long as things go his way.

#228 Gravy Train on 03.05.18 at 4:55 pm

#131 Smoking Man on 03.04.18 at 11:46 pm
“Working sucks. Making good margend [sic] bets is what it’s about.

“The whole wage gap thing is hallarious [sic] to me. I don’t do wages. Neither should anyone with 1/2 a brain.”

Oh, that’s your secret! (You have half a brain.)

#229 I’m stupid on 03.05.18 at 5:10 pm

Treb must be waiting until it’s to late for the papers to publish in tomorrow’s paper.

#230 I’m stupid on 03.05.18 at 5:13 pm

My prediction is that Old Ron the realtor is refreshing this blog so he can post an early pump piece early in comment section of next post.

#231 Ronaldo on 03.05.18 at 5:20 pm

#191 Guy in Calgary on 03.05.18 at 1:27 pm

#103 Ronaldo on 03.04.18 at 9:02 pm

If you change the use of your property from primary residence to a rental, there is a deemed disposition at FMV when the change occurs.
—————————————————————-
From my post at #104 I stated:

”Once I rented the home it was deemed to have been sold.”

I had the property appraised just prior to renting it out and was the value that was used to determine the Capital and Terminal loss after I sold it a few years later for a price less than the appraised value. The terminal loss was applied against my other income which helped to lessen the pain.

#232 Guy in Calgary on 03.05.18 at 5:21 pm

#166 TEMPLE on 03.05.18 at 10:34 am

Do you actually think rich Albertans (a lot of which came from BC to work) are having a large enough affect on BC property valuations that the tax is justifiable?

The rich will pay the tax or sell. The middle class will get eaten alive and have their properties vulched by rich people, not the “locals” as some seem to think. Their equity and savings gone as the province goes into recession. Sounds fun but worth it in the name of fairness.

I understand why BC’ers are mad to an extent. Being priced out of your home sucks. I’m from GTA and know how it feels. GTA not even remotely close to as beautiful as BC. Sucks that some of my friends that have owned property in BC for 5+ years now have to pay tax for the privilege. At the end of the day Kelowna is a tourist town, like Whistler. Take away the tourism and you will be hurting the locals, not helping. Crushing home values and crushing jobs.

Market decline of 50% and you are still paying $1M for a lot of houses in Vancouver. Is that when those that are priced out come in and sweep up the deals?

#233 Ronaldo on 03.05.18 at 5:34 pm

This is what had been envisioned prior to the current TFSA being implemented in 2009.

”In the 2003 federal budget,
Ottawa signalled that it may add a new
retirement savings option that will work
better than RRSPs for many low-
income Canadians: tax prepaid savings
plans (TPSPs).” (from report by Richard Shillington)

http://www.advisor.ca/images/other/ae/ae_0104_rrspalternative.pdf

#234 Beso on 03.05.18 at 5:38 pm

For so it had come about, as indeed I and many men might have foreseen had not terror and disaster blinded our minds. These germes of real estate disease have taken toll of humanity since the beginning of things–taken toll of our pre-human ancestors since life began here. But by virtue of this natural selection of our kind we have developed resisting power; to no Bank or realtor do we succumb without a struggle, and to many our living frames are altogether immune. Our brave allies (Garth) began to work their overthrow. Already when I watched them they were irrevocably doomed, dying and rotting even as they went to and fro. It was inevitable. By the toll of a billion posts on Greaterfool.ca man has bought his freedom right of the financials, and it is his against all comers; it would still be his were the Banks and realtors ten times as mighty as they are. For neither do men live nor die in vain.

(revised version of War of the World ending). :-)

#235 Ronaldo on 03.05.18 at 5:54 pm

A study by the C.D. Howe Institute where they stated that Canadians were being shortchanged in retirement savings options and needing better choices. (Feb. 27/01)

https://www.cdhowe.org/sites/default/files/attachments/research_papers/mixed/kesselman_%26_poschmann2.pdf

#236 NEVER GIVE UP on 03.05.18 at 5:56 pm

#208 Rooster on 03.05.18 at 2:33 pm
#200 Heloguy on 03.05.18 at 1:56 pm
Financial literacy is the key to the treasure box.

Just too many uninformed people out there with no desire to learn.
**********

I respect your opinion, but I beg to differ. I believe that financial illiteracy exists because there is no money to be made in showing people how to get ahead. DIY learning takes a lot of time that many people do not have, and math is something that most people shun because schools excel at teaching the wrong things to the wrong people at the wrong time. Forget the trig and algebra and statistics at least until grade 10, and focus on interest and compounding and amortization. What else matters to the 95%?
I learned more on this blog in 6 months than I have in 50-odd years. And I was a ‘Junior Achiever’ – I only lasted a year though – it was dead boring.

How about a blog for kids Garth? With prizes!!
=================================
I was the President of a Junior Achievement Company When I was in Grade 10, I loved it, and we made the most per share payout of all the companies started that year.
I learned a lot but learning is ongoing and people like Garth are making the difference.
Sadly, our school system will not take the reigns and teach basic Stock market mechanics and company formation.
It does not have to be partisan nor eco friendly. It just needs to teach like a monopoly game the basic mechanics of how to place a trade and how to save money. What you get when you make 7% as opposed to 10%. Once you expose a thousand students to this you will get 100 great financial geniuses out of it and 500 good savers that you otherwise would not have had.

#237 crowdedelevatorfartz on 03.05.18 at 6:00 pm

@#229 Im Stupid.

Yep.
I think you’re right.
TREB is waiting for Garth to post before handing out their dismal numbers……..
May the power of Christ compel them!

Happy Housing Crash everyone!

#238 Old Ron the Realtor on 03.06.18 at 8:41 am

TREB RAW NUMBERS:

Prices rise 4.3%. Sales rise 29.3%. Listing 10,520.
January 2018 vs February 2018

AVERAGE PRICE in GTA:

January $735,557

February $767,818

Number of Sales in GTA

January 4,003

February 5,175

And the number of listings is still historically low.

I see the foundations of a decent market, going forward.

DOOM-OFF.