Dr. Garth

The doctor is IN. Who’s first?

Hey Garth: I’m 30 and have been reading your blog since 2013, which has saved me from making too many major financial mistakes. So thanks for that.  Oh, except that I quit my job to travel for a year back in September.

I’m waiting out a Kenyan rainstorm and had a thought. Currently, I have about $85k in my RRSP and my TFSA is not topped up at around $45k. Both are balanced portfolios of ETFs as recommended on your blog. Since I’m going to earn $0 for the 2018 calendar year, it would be a good opportunity to move some of it from the RRSP to top up my TFSA, since my tax rate will never be lower. Right?

If I’m correct about that, can I transfer the holdings or do I have to sell, move the money out, then buy again in the TFSA? I would appreciate your sagely advice.

So you’re sitting in Kenya during a big break year worrying about your TFSA? What a hopeless case. Well, the answer is yes, sort of. As mentioned here before, RRSPs are not actually for retirement, but more for tax-shifting. They allow you to sock money away and get a tax deduction during years of employment – the higher your income the bigger the benefit – then to shift some of that income to other years when it can be removed at a lower rate of tax.

You’re a perfect example. Now, because you’re a hedonistic bum with no visible means of support, you can remove RRSP money tax-efficiently (the amount withheld when you cash the plan in will be returned after you file taxes) then insert it into your TFSA. But if you want to hang onto the ETFs in your balanced RRSP you must transfer them to a non-registered account. This will be considered income for 2018 (sorry). Then you can move the stuff into your tax-free account as a contribution in kind.

Next?

Hey Garth – Started reading your blog last year just in time. As I was sorting out my financial life, my husband decided to leave me.

So, here I am at 51 with two kids under 12 and have been staying at home for almost 11 years. I gave up a great federal government job with a pension to stay home. I started working part-time last year on a couple of provincial decision-making boards. No proper salary, but an honorarium when I work – about 3 days a week, sometimes more. I can easily earn about  $50K a year, but  no job security and no benefits. What was to supplement our family income has turned into my income. I know I need to sort this out and find a real job within the next while. I did take my pension early and receive just over $13K annually.

For the first time in my life I feel financially insecure — that’s the polite way of saying scared shitless. Our RRSPs are virtually the same ($150K each). I have a TFSA, but only about $10K in there. The kids RESPs are just about maxed out. We have a small mortgage on our house, and don’t have any other debt. The two big assets are the house, and his federal government pension (17 years service so far). Which should be more important to me and why?

Sounds like you’ve separated, but not divorced, so your question is in preparation to finding a settlement with the brute who walked out. I don’t know the value of his pension, nor the worth of the house, but if he’s about your age there’s another decade of working for the feds until his pension maxes. He could quit, retire or die. There is an element of uncertainty here, plus no income for you until he actually starts to receive it. The real estate, on the other hand, is real, immediate and (so far) has been an appreciating asset.

So, go for the house. With young kids you need one, anyway, to stabilize your accommodation costs until you’re able to land a full-time work gig. This also sounds like a case for big alimony, given your economic sacrifices. And don’t take him back.

Next?

Hey Garth, love the blog. My mom is single, 75, 13 years retired on a well-deserved nurses pension after 40 working years, collecting all the usual government benefits that go on top of it.  Financially she’s floating along ok, her main needs are covered but any surprise expenses are put on credit.  She lives in a townhome in beautiful North Vancouver worth just shy of 1 million bucks.  She’s in average health, but I think she’s going to need more help day to day down the road, and her split level townhome and garden are too much physically for her. I’m in Edmonton so not nearby to offer much help day to day.

She’s been active with her condo board and knows there’s a $20k+ special assessment coming in a few years that’s been pushed off for redoing the roofs. She wants to bail before this is on the books.  She has expressed no appetite for going back to the renter class, and is currently mulling over selling her townhome, clearing her debts… and buying a $900k condo down the hill in a 55+ building.  Her main reasons she states for not wanting to rent again is that she has bad memories of landlords selling out from under her, and stability.

Using the cashflow in retirement mantra you’ve hammered home over and over I’ve tried to raise all the alternatives that may exist for her beyond purchasing another home.  In home care costs, travel for pleasure, travel to visit grandchildren, no condo fees, property taxes, special assessments etc etc.  I think from her townhome sale her cashflow could be excellent, and it could more than cover rental costs indefinitely.

It drives me crazy that she’s sitting on a lottery ticket and carrying credit card balances, or putting somewhat menial home maintenance costs on credit and worrying about it.  I know there are obvious whiny kid things here about inheritances but this isn’t my concern, it’s her money, leave some leave none, that’s her call.  I don’t want her to be in a situation in a few years where she needs help in the home that she can’t afford with the only real asset being her currently ridiculously valued far from liquid condo.

Can you slice through this like you usually do, for what I’m sure are many people in the same scenario with aging parents at a crossroad in life?

If your mother can’t handle any unexpected expenses, has no cash reserve for years of poor health, is building up a credit card balance (at 19%) and knows a special assessment on her condo-townhome will crush her finances, then get her out! Sell the sucker. In North Van that’s considered an affordable home, and will probably go fast.

Buying a condo for almost the same amount in a restricted-use building is nuts. She’ll piddle away money on the transition, still face condo fees she cannot control and be invested in a development which excludes 90% of potential buyers (because of the age restriction). Wicked bad idea.

If she sells and invests in a balanced portfolio that should generate an extra $5,000 a month – plenty of money to rent a lovely condo apartment in a quality building, have extra money to handle unexpected expenses (or travel and enjoy her health), plus still keep a million bucks to finance the rest of her life. How is that a bad scenario?

The ball’s in your court. Do the right thing, guide her actions. When you were a kid, mom made good decisions for you. Now she’s old, it’s your turn. That’s love.

139 comments ↓

#1 Garth lied to me on 04.24.18 at 5:26 pm

Garth reeks of elitism, snobbery and absolute disdain for the vast majority of Canadians.

Did I make you come here? – Garth

#2 LOL on 04.24.18 at 5:30 pm

“The ball’s in your court. Do the right thing, guide her actions. When you were a kid, mom made good decisions for you. Now she’s old, it’s your turn. That’s love.”

Wicked Awesome!

#3 Panic Mode for BC and Kelowna Condo Towers on 04.24.18 at 5:39 pm

What’s new today?

Carole James says pre-sale condo assignments (flipping) may be done to avoid tax. Says new legislation will require developers to collect & report information on sales, BC gov and CRA will ensure taxes are collected.

It was good while it lasted. – unidentified Kelowna developer source.

F**k!!!!! – unidentified money speculator holding pre-sale contracts.

We may have to resort to selling to BC locals. – unidentified source.

One other surprise: Kelowna condos flattening out at 500k and having price reductions going into the busiest season of the year?

Tracking these right now.

The craze is over. When realtors out in the sticks start actually admitting the market it turning, take note. This is direct feedback from Okanagan realtors right now.
All this just 3 years after the dirty money ran wild under Christy Clark and now where is Christy and all the dirty money flows? Coincidence?

And as an added bonus, will the global money tightening, resulting stock market drops and pending recession save us or will it have a negative effect on housing too?

Good times ahead.

#4 Thinking of Becoming an Amateur Landlord in BC? on 04.24.18 at 5:43 pm

This might be a problem for rental squeeze profits, you know, taking the squeeze ability away on already net negative properties.

BC NDP looks to build 14,000 affordable rentals for just under $2 billion over 10 years

Local and municipal governments across British Columbia will soon have new powers to enact rental-only housing zoning.

Selina Robinson, the BC Minister of Municipal Affairs and Housing, introduced new legislation today to provide municipalities, including the City of Vancouver, with the authority to zone land for rental-only housing development.

And a third measure through a change to the Real Estate Development Marketing Act will require developers to collect and report information on pre-sale condominium assignments.

This mandatory process under the Property Transfer Tax Act is designed to ensure buyers are paying the appropriate taxes upon the completion of contracts.

https://globalnews.ca/news/4153388/bc-ndp-affordable-rentals/

#5 BC NDP on a roll on 04.24.18 at 5:47 pm

Keep her coming Hulk Horgan. Good job brotha.

NDP has launched another BCRE Council review on Regulations to do more tweaks.

The province on BC is launching another review of BC’s real estate regulators and looking to change more regulations among dirty shysters weaseling their way around current regs.

Submission for consideration of changes to squash more dirty shysters by June 15, 2018.

#6 crowdedelevatorfartz on 04.24.18 at 5:48 pm

@#1 Life lied to me

Would you like some more cheese with that whine?

#7 Winnipegger on 04.24.18 at 5:52 pm

Keep doing what you’re doing Garth. Hello from Winnipeg!
Merci.

#8 Christy Clark here on 04.24.18 at 5:59 pm

DELETED

#9 Still employed in AB on 04.24.18 at 6:03 pm

Another problem with precious metals http://edmontonjournal.com/news/local-news/thieves-nab-210k-worth-of-silver-bars-from-edmonton-area-acreage?utm_term=Autofeed&utm_campaign=Echobox&utm_medium=Social&utm_source=Facebook#link_time=1524595151

#10 TRUMP on 04.24.18 at 6:05 pm

GARTH made me come here!!

#11 Max the Tax on 04.24.18 at 6:06 pm

Garth, to tackle the global housing affordability crisis, what we need is more gov regs, such as this beauty:

bc moves to give local governments rental only zoning-power

“This will prevent rental buildings from being torn down for luxury condos that only a very small number of people can afford.”

http://vancouversun.com/news/politics/b-c-moves-to-give-local-governments-rental-only-zoning-power

#12 Rich Coleman on 04.24.18 at 6:08 pm

First off. I am awesome.

This coleman country. Coleman country is a society above the law.

Secondly, go Christy, go Christy, go, go, go!

Some people just like to get up in the morning and complain and whine.

#13 Heavy issues on 04.24.18 at 6:20 pm

Hey, maybe the nice lady just put on too much weight? in which case the separation is fully justified and hopefully the court will see that. A good marriage requires effort and maybe the husband just had enough of seeing no physical fitness effort on her part. There are always 2 sides to a story.

#14 LP on 04.24.18 at 6:29 pm

Garth: Now she’s old, it’s your turn. That’s love. ***************************************

Watch it whippersnapper! Who ya callin’ old. She’s only 75. Jeeesh.

F 70 3/4s ON

#15 Parksville Prankster on 04.24.18 at 6:29 pm

…thank goodness for Dr. Garth… my regular doctor does an exam that seems to be like a guy trying to get the last pickle out of the jar…

#16 FOUR FINGERS WATSON on 04.24.18 at 6:33 pm

bc moves to give local governments rental only zoning-power.
…………………………..

Can you spell g-h-e-t-t-o ?

#17 Penny Henny on 04.24.18 at 6:34 pm

#147 Mark on 04.24.18 at 3:27 pm
Also you note that you didn’t actually sell the house. So how do you “know” what its value might have been? Did you make the ‘rookie’ mistake of reading to a newspaper, noting that there was allegedly appreciation since 2013, and merely multiplying your previous “house price” by that?

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

Ha, ha the irony.
Mark speaks of ‘rookie mistakes’ in regards to buying or selling houses when he has never been involved in any end of such a transaction.

#18 Whatcha Minnie on 04.24.18 at 6:38 pm

I really enjoyed working with my last boss. She taught me the importance of sticking to deadlines and motivated me to perform at my best. I’m much better at time management as a result of working with her, and I’m really grateful for the opportunity to have her as an employer.

#19 Fred Jones on 04.24.18 at 6:41 pm

Hello,

I am a Realtor in Calgary that uses lead generation to secure new clients. Over the last week a greater preponderance of clients coming through lead gen. are from BC.

Stories about escaping the BC housing massacre to scared $2 per litre is coming at the pumps.

One buyer just purchased and was on his way home to tell friends the good deal he got in Calgary.

#20 Reality is stark on 04.24.18 at 6:44 pm

Lipsey, Sparks and Steiner. The famous economics 101 textbook.
France that wonderful bastion of socialism was the subject of an excerpt in the famous “bible” above. French politicians recognized that there was only one landlord but there were 1,000 tenants in each building. 1,000 votes versus 1 vote. So they brought in rent controls and forced landlords to fix up buildings even if they weren’t bringing in enough money to repair anything. The government forced the landlords into bankruptcy and eventually the buildings fell apart. This was seen as French economic genius that they believed the rest of the world would copy due to it’s conceptual genius.
Venezuela and now British Columbia are about to adopt the French model which speaks to the high level of intelligence of the progressive citizenry of these respective locales.
Remember it only took one generation to destroy Venezuela. I believe Canadians have the capacity to destroy this country at a faster pace.

#21 James on 04.24.18 at 6:44 pm

Dr. Garth, you’ve been hiding your biggest breakthrough from us ;)

Now at last there’s hope for Emasculated Smoking Turd and Freedom First!

http://www.bbc.com/news/world-us-canada-43873058

Dr. Garth, a truly gifted MD!

#22 Ontario's Left Coast on 04.24.18 at 6:55 pm

What’s going on with prefs lately?

#23 Spock on 04.24.18 at 7:02 pm

Good to see that the blog dogs are going through the obligatory suck in the first paragraph of the Qs.

:-)

Thank you GT for all the years of service.

#24 NOTHING SURPRISES on 04.24.18 at 7:03 pm

The ball’s in your court. Do the right thing, guide her actions. When you were a kid, mom made good decisions for you. Now she’s old, it’s your turn. That’s love. – Garth

********************************************

You could not have put it any better. Well stated!!

#25 Wrk.dover on 04.24.18 at 7:04 pm

#82 Wrk.dover on 04.21.18 at 8:27 am
After you die, and the last person that remembered you eventually dies, did you really live at all?

———————————–

I saw this same drivel in a current McClean’s magazine today.

No I do not plagerise. Glad nobody body checked me on the appearance of that though.

#26 dosouth on 04.24.18 at 7:07 pm

Poor Millennial Kenyan whiner….you got him/her on the nose. The wife not so much. Two sides to all stories and I hope, contrary to you, that he makes out alright as well.

The mom is lucky to have a child so caring, nice in this world of turmoil and me first’s….. Wonder what the writer considers “old” for her mother?

#27 BlogDog123 on 04.24.18 at 7:08 pm

Rent, rent, rent.
Mom just has bad impressions from her history. Show her some swanky rental places (some furnished executive rentals) close to everything in her life. After visiting a few places she’ll come around to the rental way.

#28 slick on 04.24.18 at 7:12 pm

I haven’t read todays column yet, because I’m still worked up over these peni that think Derek did an injustice to these scammers.
My guess is that they were renters, and figured they could pull a fast one on a house purchase, like they do to landlords. It is a different world outside of the protection of the Landlord/Tenant act.
Maybe they were frustrated that they couldn’t get a house, and just needed a ‘win’. I dunno.
If Derek had offer a vendor takeback mortgage, they would have moved in and quit paying. then what?
Even worse had Derek not closed and let them move in via a rental agreement, or a rent to own setup.
If Derek had lowered the price, they still would have scammed him out of the difference.
I dont think the buyers ever planned on closing, they were just looking to get the thin edge of the wedge in the door.
the buyers had no concern for Derek, or his next move. He could have been moving up to another house also. They didn’t give a rats ass about Derek, why should he cut them a break?
They didn’t even man-up to the fact they were gonna break a contract.
I have done deals for hundreds of thousands on a handshake. In my business you only screw somebody once. Word gets around, and your reputation is no good. too bad that Derek had to be the victim.
And people are flaming him on Garths blog? For shame.
I hope Garth is taking names.

Good for you Derek! you did the right thing and deserve every extra cent for your aggravation. These Liberal attitudes are gonna be the end of civilisation.

#29 Moses71 on 04.24.18 at 7:36 pm

Dear Dr. Garth,

Women need an Rx for a virile man in his 50s, as there may be a shortage.
Response to #13 lol And not balding with legs and chest like a woman.
Dr. Garth has lots of hair with lots of virility! Ha!!

#30 Amok on 04.24.18 at 7:39 pm

#20 Reality is stark

Thanks for your anecdotal false equivalency, and riveting history lesson. Here is a geography lesson: Venezuela is a country and B.C. is a province within the country of Canada. The French model? Do you actually believe your own bs?

Why do people here insist on segregating ‘Ontarians’ and ‘Albertans’ and ‘British Columbians’ as if we are all members of rival hockey teams. If this comment section was actually a fair segment of the Canadian population it would make us all seem like self serving morons who don’t really understand how our nation functions, and would be happy to cut off our nose to spite our face.

Canada’s new slogan:
“Hey, as long as I’m making a profit, f**k everyone else, eh”

#31 Lost...but not leased on 04.24.18 at 7:48 pm

NDP is the equivalent of crowdedelevatorfartz

Make ill -advised spontaneous decisions, bugger- off…then the majority suffers the collateral damage.

#32 Fake News Again on 04.24.18 at 7:57 pm

3 Govt Workers whining about their guaranteed incomes while the taxpayer struggles. Cry me a river…..

Government workers pay the same tax rates as you. – Garth

#33 Poor Christy on 04.24.18 at 8:03 pm

Not even Garth wants to hear anything she has to say lol

That was libelous. – Garth

#34 For those about to flop... on 04.24.18 at 8:04 pm

Countdown to a million.

Anyone who still doesn’t think that there is any softness going on at the bottom end of the Vancouver detached market should probably check out what these guys just did.

Despite being one of the cheapest houses in Vancouver proper already,these guys after one week on the market thought that it was necessary to chop 40k off the ask.

Didn’t wait to do it at the negotiating table,just lay the cards out for all to see.

It was picked up in 2002 and so its all gravy ,and the latest assessment is 1.07 and so even though it is low on the Vancouver totem pole in their eyes probably anything over one million is not giving it away.

No interior photos,probably due to the fact that it is currently being rented out but the exterior looks acceptable for a 112 year old house…

M43BC

2243 Ferndale Street, Vancouver

Apr 16:$1,189,000
Apr 23: $1,149,000
Change: – 40000.00 -3%

https://www.zolo.ca/vancouver-real-estate/2243-ferndale-street

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

Feel free to make a donation.

Flop For Fox Fund…

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

#35 -=jwk=- on 04.24.18 at 8:04 pm

#82 Wrk.dover on 04.21.18 at 8:27 am
After you die, and the last person that remembered you eventually dies, did you really live at all?

———————————–

I saw this same drivel in a current McClean’s magazine today.

No I do not plagerise. Glad nobody body checked me on the appearance of that though.
————–

That’s the plot of Coco. Good movie. Kids like it.

#36 The Secret Code on 04.24.18 at 8:09 pm

Re: #20 Fred Jones

Bingo!

I led the way on this march because the Secret Code chases yield and makes big bucks.

What you are seeing right now are early movers.

The herd avalanche is about to come. They always do about 1-2 years after me.

Also, a lot of young families in BC are eyeing up Calgary, which is seriously undervalued.

#37 CalgaryCarGuy on 04.24.18 at 8:15 pm

Re #80 by crowdedelevatorfarts from 4/23
@#66 Calcargrrry car Guy
‘In your dreams. How about 2.10/liter by June 15th”
+++++
Ahahahahaha,
Yer probably right my oil pumping, valve closing pal!
Bring it on!
I have a company gas card………

:)-

—————————————————————–
Yeah, I put a bit of thought into that guess. It might be about right. BTW Mr crowded, I actually do respect and usually enjoy your posts here—you’re one of the good guys. I got a chuckle out of the gas card comment. So you have a company vehicle? With a name like yours I sure wouldn’t want it after it’s traded in, LOL! :)
What I, and I believe many Albertans would love to see from the people on Alberta’s side in B.C. is for some of the pro-pipeline crowd out there to show up at the construction sites and give the protesters a hard time. Polls keep showing that a majority of B.C. people support the pipeline. Hopefully they can step up to the plate at some point.

#38 Bibi on 04.24.18 at 8:18 pm

The drop in RE sales is so significant that it already is affecting big chunk of Canadian economy: RE agents, mortgage brokers, builders and financial industry. As we are running out of greater fools, the boomers won’t be able to sell for astronomical prices and a lot less equity will end up in financial markets. And if the stock markets continue to decline they will be even less inclined to invest the loot in financial instruments. The party is over people. A hangover will not be pretty. It is going to take at least a decade for Canada to deleverage. The herd is already spooked and there is no going back.

#39 Marj on 04.24.18 at 8:20 pm

I come here for Whatcha Minnie now. Reminds me of those Grade 10 English paragraph homework i had to write for Sister Agnes back in the 80s. Who is this guy that writes like a 15 year-old girl? Fascinating readership here.

#40 Live in BC on 04.24.18 at 8:21 pm

The come clean CRA phone line is experiencing longer than normal wait times please hold while we file a warrant for your arrest regarding your BC pre-sale condo.

#41 espressobob on 04.24.18 at 8:22 pm

What’s going on with prefs lately?

The only reason to hold this asset class is for the yield. Along with common stock div and interest on bonds.

More for income investors who don’t care about market movements, just the distributions. Growth is secondary. Taxation is something worth a good study when those T whatever receipts come in the mail box.

Something I learned from one of Garths books.

#42 BC Real Estate going soft like ice cream out in the sun on 04.24.18 at 8:26 pm

Realtors are kind of bored right now in BC as they enter delusional denial phase.

Spring market has failed to show up.

Groundhog saw its shadow flipping in BC and passed out.

Now the market is dead and gone.

#43 Reality is stark on 04.24.18 at 8:28 pm

To #30 Amok.
Seems like I have struck a nerve.
For your information when a person makes a profit it finds it’s way to their tax return. This causes them to pay tax. These taxes are then redistributed to people like you Amok (in various forms). Profits are not evil.
You are a product of a unionized education system that believes in the power of socialism.
Go to Venezuela and see how well it works.

#44 Mark on 04.24.18 at 8:36 pm

“Mark speaks of ‘rookie mistakes’ in regards to buying or selling houses when he has never been involved in any end of such a transaction.”

Not true.

#45 Moh on 04.24.18 at 8:44 pm

Garth I’m depressed. Last weekend I had sit through an entire dinner of my relatives bragging how much money they made the last five years flipping condos. Meanwhile I have been saving since I discovered your blog in 2014 and hoping that the market bounces back to prices that are affordable. Needless to say it’s sad being a 32 year old IT Profesional in the GTA. I find my self fantasizing moving to a warm place like Tampa Bay where a decent townhouse goes for 180k. I guess the decision is on me and I need to figure what purpose I have staying in cold Toronto.

Stop going for dinner. Cheaper. – Garth

#46 MaxBerniersShorts on 04.24.18 at 8:52 pm

#19 Fred Jones
Nice try but nobody leaves BC for Alberta these days. When oil was booming we were able to send you are unskilled and uneducated, but sadly no longer.

#47 Lead Paint on 04.24.18 at 8:53 pm

Whatcha Minnie, has anyone ever told you you’re a little bit self absorbed?

#48 Madcat on 04.24.18 at 8:57 pm

‘Renter class’… I really dislike those kinds of snotty assholes LOL!

#49 Amok on 04.24.18 at 9:01 pm

#43 Reality is stark

I went to school in Germany, and I own my own business. Profits are not evil I agree, but disregard for the common good cuts pretty close.

Go to Sweden, Denmark, Norway, Finland, China, and the Netherlands to see how well socialism works.

#50 Fish on 04.24.18 at 9:07 pm

Whatcha Minnie, is just fine

#51 Catmandeux on 04.24.18 at 9:13 pm

Moh on 04.24.18 at 8:44 pm

Ask your relatives if they have been reporting the profits to the CRA on their tax returns, and if not, what they will do to buy your silence.

#52 conan on 04.24.18 at 9:33 pm

“because you’re a hedonistic bum with no visible means of support, you can remove RRSP money tax-efficiently…”
-Dr. Garth

The doctor is in.

https://www.youtube.com/watch?v=irntPM8vP04

#53 Fred on 04.24.18 at 9:43 pm

The Secret Code on 04.24.18 at 8:09 pm
“Also, a lot of young families in BC are eyeing up Calgary, which is seriously undervalued.”

—————
Undervalued ? Well aren’t you a dumbass
You realise unemployment is 8percent in Calgary
You must have some crap to sell
Shyster

#54 Pulp Faction on 04.24.18 at 9:49 pm

“Garth reeks of elitism, snobbery and absolute disdain for the vast majority of Canadians.”

Yes, that’s what we like about him.

#55 Ronaldo on 04.24.18 at 9:58 pm

#18 Whatcha Minnie on 04.24.18 at 6:38 pm

I really enjoyed working with my last boss. She taught me the importance of sticking to deadlines and motivated me to perform at my best. I’m much better at time management as a result of working with her, and I’m really grateful for the opportunity to have her as an employer.
———————————————————-
We’re happy for you.

#56 Wrk.dover on 04.24.18 at 10:01 pm

Whatcha Minnie, hatched from SCM’s banishment.
Different IP address, Different attitude. Same MO.

#57 Kastis on 04.24.18 at 10:10 pm

RE: #43 Reality is stark

You should google what socialism actually means, none of those countries are socialist, they have extensive welfare, but they as capitalist as they come, can you imagine Sweden has private health care, imagine the horror….

#58 Kastis on 04.24.18 at 10:10 pm

it was actually for #49 Amok

#59 SunnyDays on 04.24.18 at 10:31 pm

#49 Amok

Go to Sweden, Denmark, Norway, Finland, China, and the Netherlands to see how well socialism works.

I looked them up on this chart, and can confirm that socialism does work as intended. Households in these countries are going deep into debt to finance their lifestyles, until they ‘run out of other people’s money’:
https://data.oecd.org/hha/household-debt.htm

“The problem with socialism is that you eventually run out of other people’s money.”
― Margaret Thatcher

#60 Reality is stark on 04.24.18 at 10:36 pm

To #49 Amok.
You keep making big profits and employing more and more people and pay your taxes.
When Garth ran the CRA he knew where to put your tax money to provide for the common good without wasting it on frivolous programs.
We don’t employ politicians like that anymore.
Poll young people on the street in Sweden and find out where they would like to live. Most of them want to go to the USA.
Why you ask? For opportunity and the chance to prosper. People make strange choices. Why leave their Swedish paradise?

#61 burnaby guy on 04.24.18 at 10:39 pm

#147 Mark on 04.24.18 at 3:27 pm

Wow look at that big long post by 2013 peak RE Mark guy – good thing I was ready and quickly scrolled pass it because I know he has nothing new to say except repeating the same old 2013 apex sales mix theory and linking to the only guy that agrees with him – Ross Who.

#62 Porsche on 04.24.18 at 10:56 pm

Is that the same pic of the rat hanging on a stick yesterday. lol

#63 FOUR FINGERS WATSON on 04.24.18 at 11:10 pm

#18 Whatcha Minnie on 04.24.18 at 6:38 pm

I really enjoyed working with my last boss. She taught me the importance of sticking to deadlines and motivated me to perform at my best. I’m much better at time management as a result of working with her, and I’m really grateful for the opportunity to have her as an employer.
………………………

Sorry to hear you got sacked last night. Your last boss said your pole dancing sucked… she said your leopard skin tights made your butt look like two otters wrestling in a sack. Did you have to pay for the trapeze you broke ?

#64 Edward on 04.24.18 at 11:15 pm

#28 Slick
I haven’t read todays column yet, because I’m still worked up over these peni that think Derek did an injustice to these scammers.
My guess is that they were renters…

Actually, they were not. They were move up purchasers. But why are you guessing? The full story is out there for all to see (not just the one-sided version Garth shared here). All it takes is a little creative Google-foo.

#65 Leo Trollstoy on 04.24.18 at 11:28 pm

$US all day every day!

http://markets.businessinsider.com/currencies/news/us-dollar-getting-stronger-could-be-bad-news-2018-4-1022144703

You’re welcome!

#66 Leo Trollstoy on 04.24.18 at 11:35 pm

Chris speaks of ‘rookie mistakes’ in regards to buying or selling houses when he has never been involved in any end of such a transaction.

[ ] not rekt
[x] rekt
[x] really rekt
[x] tyrannosaurus rekt
[x] parks and rekt
[x] star trekt
[x] school of rekt
[x] catcher in the rekt
[x] great rektspectations
[x] rekt it ralph
[x] the shawshank rektemption
[x] forrekt gump
[x] finding rekt
[x] rektal exam
[x] shrekt
[x] rektium for a dream
[x] The Mummy Rekturns
[x] Pride and Prektudice
[x] erektile dysfunction
[x] rektroom
[x] continental brektfast
[x] Brektzit
[x] rektipe for success

#67 L on 04.24.18 at 11:35 pm

@ #13

Heavy Issues? What the heck!

#68 L on 04.24.18 at 11:37 pm

@ #13

Can’t believe I just read that!!!

#69 Smartalox on 04.24.18 at 11:54 pm

Flopper:

I don’t know what my neighbourhood is called – at least not what the Realtors call it.

I used to call it ‘the Submarine’ because it’s on the slope south of SE marine drive. Now I think they call it the ‘West Side of the River District’

#70 Mark on 04.25.18 at 12:18 am

“Meanwhile I have been saving since I discovered your blog in 2014 and hoping that the market bounces back to prices that are affordable. Needless to say it’s sad being a 32 year old IT Profesional in the GTA.”

My condolences on being in IT with the very poor salaries and dearth of positions. But if it makes you feel any better, a mere downpayment, invested in the TSE/TSX at the beginning of the 1990s, grew, with stock appreciation and housing depreciation, enough for an outright purchase within the decade.

In late 1980s Canada, the minimum downpayment for a house was roughly 25%. Today, the ratios of the housing market relative to the stock market are even more stretched and its quite possible that a 10-15% downpayment, invested, will yield enough within the decade for the purchase of GTA RE.

In a nutshell, you made the right decision not to buy, especially since it is well known that GTA RE peaked in 2013 and financial investments, particularly equities have outperformed since.

#71 Ronaldo on 04.25.18 at 12:18 am

#18 Whatcha Minnie on 04.24.18 at 6:38 pm

I really enjoyed working with my last boss. She taught me the importance of sticking to deadlines and motivated me to perform at my best. I’m much better at time management as a result of working with her, and I’m really grateful for the opportunity to have her as an employer.
—————————————————————
Plagiarize much?

Scroll down to “Sample Answer”.

https://www.livecareer.com/interview/questions/what-do-you-think-of-your-last-boss

#72 Nonplused on 04.25.18 at 12:36 am

Ladies, once you have to start shopping at plus size stores because Costco only goes up to size 16, don’t ask questions about why your husband left you. Ya, it is that simple. Humans don’t naturally mate with walruses. And they have motorcycles.

As for “My mom is single, 75”, stay out of it unless you have power of attorney because she is incompetent. Ya you think you know what’s best for her, but in fact you only know what’s best for you. Same as you should let the kids crash on their skateboards in the park, you don’t tell mom how to live either. You can say it’s stupid, hoping to influence her decision, but you can’t actually do anything about it but make yourself look like an ass.

Folks, work on your own problems first. As Christ said, and I am paraphrasing, “remove the log from your own eye first”. So I will give a new amendment to that classic instruction: If your net worth is less than $1 million, and by net I mean subtract the debts, don’t be giving anyone financial advice. The world would be a much better place if only those who knew how to be successful were giving advice on how they did it. Of course half those idiots like Elon Musk don’t know either, but still actual successes should be respected and all others should be put in the “read later” bin.

#73 Oft deleted much maligned stock picker on 04.25.18 at 12:47 am

Garth….help….I’m 63, wicked OK financially….so diversified I don’t give a flat flying puck what happens next, laying by the pool trading stock tips with the other punters who’ve transcended… I write bad novels…beer money mostly…practically all days are hot and sunny…and those dark days are perfect for getting a nice massage …when not travelling to local resorts in Thailand or taking long weekend trips around SE Asia…. Japan and India. The stink of Vancouver Island flophouse hippies is stuck in my nose and I had to flee ahead of the reefer madness. I haven’t seen a winter in more than a decade. The thought of going back to work in a tower might lead to think about a bungee. What do I do? Is this all there is left of the wild life? Everythings just awful.

#74 Smoking Man on 04.25.18 at 12:56 am

The driver.

This really messed me up. I have visions in my head. Total recall of when we lost our nephew. Thinking it was my fault because I was trash talking god. It was a stage of my life.

I don’t do that anymore just incase he’s real and listening and in a bad mood. I have kids.

When the rampage happened I instantly thought. Isis terrorist. I was wrong I think.

With in one hour of the attack. Govt officials said not terrorism. Then nothing for awhile.

Yesterday CBC suggested the dude hated woman, face book corroborated that narrative even though no one saw the deleted post.

A 25 year old has no twitter account. One post on linkedin one post on facebook.

Now the machine is pushing toxic masculinty as the motive.

I disagree. Come punch me out if you can at the general store last Sunday in may.

Got lose teeth , knock them out of my mouth and take a trophy home.

I never chicken out .

I found god. age I’m thinking.

#75 Bobby on 04.25.18 at 1:07 am

Yes, #5, the BC NDP are certainly on a roll right now. Rolling the province right into the toilet. Let’s be honest here, renter only zones. C’mon. I think in most major cities they are called the projects. Cheap, government run housing that most use solely as a last resort. I’m not sure how many aspire to live there.
Dealing with my lawyer these days on estate issues. Contrary to media reports, from her perspective all is not rosy in the economy. Things are turning for the worse.
For those who support this coalition of clowns here in Victoria, you may come to regret what you have wished for.
Remember they were turfed out unceremoniously 16 years ago, left with only 2 seats, and it wasn’t because of their sound stewardship of the economy.

#76 A on 04.25.18 at 1:24 am

#53 Fred
Calgary’s employment is back to 2014 levels. My parents just sold their house to a nice lady from Hong Kong. We see more sold signs going up.Juwai said interest in Calgary is growing. We still have some of the highest wages in Canada. The recovery is slowly happening. Nowhere in Canada , including Alberta , will see boom times again. The unfortunate lack of leadership in this country has made that abundantly clear. I respect all of Canada, but the BC NDP/ Green is a dismal failure. Basing government policy on disturbed drug users, professional protestors and socialist agitators is not wise.

#77 Myra Andrews on 04.25.18 at 1:50 am

Greater Vancouver Stats from realtor Paul Boenisch

April 24 New 323 Sold 136 TI 10,299
April 23 New 385 Sold 145 TI 10,180

April 20 no post from Paul
April 19 New 211 Sold 133 TI 10,006
April 18 New 266 Sold 128 TI 9989
April 17 New 297 Sold 120 TI 9898
April 16 New 377 Sold 191 TI 9799

April 13 New 152 Sold 137 TI 9727
April 12 New 199 Sold 112 TI 9748
April 11 New 248 Sold 101 TI 9709
April 10 no post from Paul
April 9 New 382 Sold 117 TI 9450

April 6 no post from Paul
April 5 New 268 Sold 164 TI 9264
April 4 New 324 Sold 154 TI 9204
April 3 New 538 Sold 131 TI 9104

Mar 26-29 New 793 Sold 455 TI 9032
Mar 19-23 New 1041 Sold 617 TI 8916
Mar 12-16 New 1147 Sold 682 TI 8743
Mar 5-9 New 1101 Sold 542 TI 8510

#78 Buy? Curious? on 04.25.18 at 3:34 am

Hey Garth!

How many of your readers have had sex in the last 18 months? Maybe they should stop being nerds about house prices/trends/predictions and start going out more. Instead of worrying about businesses, get out there and start getting BIZ-Eh!

#79 Howard on 04.25.18 at 3:50 am

These were better letters than the usual “I’m 28 and earn $100K/year as a public sector analyst and have $840K net worth and did it all by myself with no inheritance or other family help. How do I stay firmly planted in the 1% so I can keep bragging anonymously on blogs??” sort of mail you usually share with us.

#80 Proof ? on 04.25.18 at 5:34 am

to comment # 13 Heavy issues

Wrong !
There are 3 sides to every story.

1) Her side
2) His side
3) the TRUTH

#81 Wrk.dover on 04.25.18 at 6:36 am

#71 Ronaldo on 04.25.18 at 12:18 am
#18 Whatcha Minnie on 04.24.18 at 6:38 pm

I really enjoyed working with my last boss. She taught me the importance of sticking to deadlines and motivated me to perform at my best. I’m much better at time management as a result of working with her, and I’m really grateful for the opportunity to have her as an employer.
—————————————————————
Plagiarize much?

Scroll down to “Sample Answer”.

https://www.livecareer.com/interview/questions/what-do-you-think-of-your-last-boss

——————————————-

Like I said above,
#56 Wrk.dover on 04.24.18 at 10:01 pm
Whatcha Minnie, hatched from SCM’s banishment.
Different IP address, Different attitude. Same MO

SCM researched and dug up stuff to submit diligently. Probably was the class browner excelling in doing homework.

So there goes the neighbourhood again. Most responded to blogger, those two or that one?

You can fool some of the people some of the time…

#82 Howard on 04.25.18 at 7:04 am

#1 Garth lied to me on 04.24.18 at 5:26 pm

Garth reeks of elitism, snobbery and absolute disdain for the vast majority of Canadians.

———————————

Well he did end his political career as a Liberal.

#83 JM Keynes on 04.25.18 at 7:23 am

#70 Mark

“In a nutshell, you made the right decision not to buy, especially since it is well known that GTA RE peaked in 2013 and financial investments, particularly equities have outperformed since.”

Mark buddy, do you live in the GTA? What imaginary world do you inhabit thinking that house prices in the GTA peaked in 2013??

Read this article on Benjamin Tal and his comments on real estate, chief economist for CIBC.

http://morrisonsellsrealestate.com/real-estate-insights-benjamin-tal-chief-economist-cibc/

Or if you want to cut to the chase, here is a chart for you. Note where prices were in 2013 and the continued escalation from there…

https://www.google.ca/search?q=toronto+real+estate+price+history+chart&tbm=isch&tbo=u&source=univ&sa=X&ved=2ahUKEwjH-LG9p9XaAhUCJKwKHb8KDZ8QsAR6BAgAECo&biw=1600&bih=775#imgrc=xL61D8M1bIHfBM:

#84 Gravy Train on 04.25.18 at 7:36 am

#74 Smoking Man on 04.25.18 at 12:56 am
“Got lose [sic] teeth, knock them out of my mouth and take a trophy home.” Are you trying to say that you’ve got loose teeth, or that you’ve got to lose your teeth? Or is there something else you’re trying to say?

Did you also say in previous posts that you’re one of the greatest writers of all time? How does that square with the facts? You’re just like your idol Donald Trump: a legend in your own mind! :)

#85 SimplyPut7 on 04.25.18 at 7:41 am

#79 Howard on 04.25.18 at 3:50 am

Most people who like these types of blogs are usually not that poor.

And you can thank the liberal government at the federal and provincial levels for the number of public sector employees making 100k+.

#86 #3 of the Majestic 12 on 04.25.18 at 7:46 am

#71 Ronaldo….thank you for finding that. You have completely justified my hatred of those posts.

#18 Watcha Minnie…you should be ashamed of yourself—now please slink away.

F49ON

#87 maxx on 04.25.18 at 8:18 am

#30 Amok on 04.24.18 at 7:39 pm

“……..Canada’s new slogan:
“Hey, as long as I’m making a profit, f**k everyone else, eh”…..”

So much for the pabulum squirted regularly through msm that “we’re all in this together”. Some have simply adopted a textbook corporate worldview, and gubbmint has generally fallen head over heals for it too, much to the peril of working towards a happy(ish) medium in society…..but hey, that takes more effort and some people and business interests might have to settle for a tiny bit less. Maybe.

I consider myself neither left nor right. I despise stupid economic policy that unceremoniously strips from the backbone of society and catapults it to the outer reaches of obscenity to business coffers. I also despise wasteful and retarded Liberal policy of the sort we’re seeing now. Instead of incentivizing people to save for their futures (via a gem largely taken for granted, known as the TFSA, for example), thereby igniting motivation to craft a higher quality of life, we get adversarial reinforcement. Daily. Us vs. Them.

Divide and conquer. Malleability. Putty.

Restoring value to cash would certainly help and perhaps more cheaply, effectively and gradually than a series of band-aid solutions designed to protect FIRE at any cost and jockey the current crop of buffoons through to another term.

One of the great ironies of our time is the new attitude towards cash. Savers are reviled, whilst many corporations rake in tons of government largesse and then sit (very) tightly on piles of cash. Interestingly, corporations don’t face the same doses of cheap-a$$ saver criticism.

Cash is seen as not really worth holding as safe returns are (were?) in the toilet bowl, but to be borrowed as a springboard to profit. Risk is revered (some risk certainly should be) but the trouble is far too many don’t truly understand risk and end up trashing their futures playing very dangerous games of borrowing to “invest”.

Money is becoming more and more difficult to obtain, especially via stable employment, and even harder to hang on to. The notion of economic traction is less certain than it should be for a much healthier real economy.

Save like mad and play your own game, I say.
The rest is just noise.

#88 NoName on 04.25.18 at 8:19 am

#78 Buy? Curious? on 04.25.18 at 3:34 am
Hey Garth!

How many of your readers have had sex in the last 18 months? Maybe they should stop being nerds about house prices/trends/predictions and start going out more. Instead of worrying about businesses, get out there and start getting BIZ-Eh!

—-
A ha ha

Post reminds me of that wahatbi call two question study done way back and described in thinking fast and slow.

Day 1 participants aksed questions in following order.
Are you happy?
How often you have sex?
**No correlation found between happiness and frequency of having sex**

Day 2 participants aksed questions in following order.
How often you have sex?
Are you happy?
**Correlation between happiness and frequency of having sexfound, participants that engaged in sex more often more happy**

What brings me to the question, whose day you are trying to mess up?

#89 Penny Henny on 04.25.18 at 8:21 am

Schlong Branch Update.
Hey Smoking Man did you see this one.
5B Thirty First St. 25×150 lot. Steps to the lake.
Realtor comments “To Be Built*Property Is Being Sold At Land Value Only, Existing House Will Be Demolished And Removed At Seller Expense. Include The Drawings In The Price.”

Sold for $750K.

Me thinks it might have been worth $900K last year considering the seller is going to remove the old house.
Drawings probably worth 20K.
Probably only $450K at the 2013 peak (sales mix stuff, you wouldn’t understand).

#90 Herb on 04.25.18 at 8:22 am

Nothing like the MSM helping real estate boards by hyping its goods in a slow market –

http://www.cbc.ca/news/canada/ottawa/ottawa-bidding-wars-hot-housing-market-1.4626315

I can certainly attest to the adoption of “more aggressive” sales tactics by OREB agents, but the CBC should have paid attention to the actual market as well as Board propaganda.

Anything worth its price in a desirable area sells, and sells quickly, but there are not many of those houses on the market, and many just sit. In the last few weeks we have looked at a couple of houses in desirable areas where the “offer accepted at” time passed with no offers received, and we have seen price drops of five to ten percent in houses we have followed.

Investigate, CBC, don’t just pass on self-serving propaganda! You could have asked, for instance, over what period of time houses in urban areas such as Westboro skyrocketed “by more than 50 per cent. ” And yes, any developer will buy a standard SFH lot to demolish what’s there and put up two or more new builds, but how many of these large new builds on shrunken lots are selling for their million plus prices?

#91 Hamsterwheelie on 04.25.18 at 8:26 am

So glad someone asked re aging parent sitting on an asset. When mom died, dad lost all his navigational abilities and has been floundering about in an isolated and oversized house – using a line of credit to keep it afloat. We have offered him his own place in exchange (essentially a new & seperated condo built into our house) if he could pay rent or take over the remaining mortgage of $130 000. Would love to offer it for free but we built it for rental income and have borrowed accordingly. If he sold his house dad would free up about $600 000 to reinvest, have no unexpected & virtually no overhead expenses, no plowing, shovelling, mowing etc etc. Problem is he insists on owning, yet is not at all handy or able to fix things & we are 4 hours away – the closer he gets, the more expensive real estate gets – & he refuses to ‘rent’ even from us! anyway, its a conundrum & despite trying to convince him of an improved lifestyle, he remains stuck. we miss him p.s. if he didn’t have the ability to pay ‘rent’ at our place we would naturally take him in and swallow the cost but for his pride and as a family unit we’ll be a stronger boat if we pull together.

#92 jess on 04.25.18 at 8:30 am

‘A rose by any other name would smell as sweet’?

http://www.cbc.ca/news/business/loblaws-cra-glenhuron-bank-barbados-tax-1.4490564

#93 Desperately Seeking Serenity on 04.25.18 at 8:31 am

Garth,
Let’s start with your name.
Brooks- Ok country singer.
Drabinsky- Felon
Wayne and- Funny so-so.
And that’s about it. You are an original, and I enjoy your career arc.

I also have enjoyed reading your books (2 of them, 1 of them many years ago) and now your blog (for about 6 months now).

Needed a house when I returned to Canada in 2013. Bought a house in midtown Toronto which I turned into a triplex (from a duplex). 3 large (2000 sq ft each) luxurious apartments, except for the basement one, which was storage before. That is a lot of our assets. All of them. Still owe about a mil, and have sunk about 300k into the place after the purchase to make it luxurious. It pays the mortgage, but it is an old building, so there are nasty repairs. Had to take out asbestos, re-do plumbing and electricity, make the basement deluxe, put in applicances, re-do the roof, redo 4 bathrooms and 2 kitchens. Wow. It was a lot. Happily I paid others to do it, as I suck at that kind of work.

Watched the market price climb probably to over 2mil, and now back down to about 1.7 maybe? Or maybe 1.9. Who knows?

The point is that this sucker will pay a retirement cheque to my wife when I kick it. We can afford the payments now. At 15% interest rates we would not be able to.

My questions: do you think that interest rates in the next 15 years will go over 10%? That will quickly collapse the whole Toronto/Canadian market. However, what asset will not benefit as much as real estate (probably not stocks or gold)? I figure that the market rate for 3 families’ rents in an excellent area will keep a non-grieving widow in cash for 50 years. What say you? Are the socialists going to punish landholders? Scary but looks that way right now…

#94 Leo Trollstoy on 04.25.18 at 8:34 am

I agree with Garth that the peak of Toronto real estate prices happened in 2017 and was characterized by a frenzied rise in prices

“It was the spring of 2017, early April, and house prices were running 30% hot year/year”
http://www.greaterfool.ca/2018/04/08/how-it-ends-2/

#95 Leo Trollstoy on 04.25.18 at 8:36 am

Tech is doing so well that international applications are booming!

https://www.thestar.com/business/2018/03/28/toronto-tech-companies-see-increase-in-international-applications-mars-survey-shows.html

An indicator of how good or bad you are at tech is your salary. 6 figures and more and you’re decent. Less than 6 figures and it’s called word processing and data entry, not tech

Lol

#96 thebarold on 04.25.18 at 8:40 am

In your 1st case, does he know that he loses that contribution room forever?

In the third case, at 75, if she sells, she should be eating (literally) into the principal – to fund her expenses. Unless son is more interested in maintaining it for a winfall. With two parents dead, and me as the executor, I wish they had spent it all (and enjoyed life a little more).

#97 James on 04.25.18 at 8:47 am

#74 Smoking Man on 04.25.18 at 12:56 am
The driver.
This really messed me up. I have visions in my head. Total recall of when we lost our nephew. Thinking it was my fault because I was trash talking god. It was a stage of my life.
I don’t do that anymore just incase he’s real and listening and in a bad mood. I have kids.
When the rampage happened I instantly thought. Isis terrorist. I was wrong I think.
With in one hour of the attack. Govt officials said not terrorism. Then nothing for awhile.
Yesterday CBC suggested the dude hated woman, face book corroborated that narrative even though no one saw the deleted post.
A 25 year old has no twitter account. One post on linkedin one post on facebook.
Now the machine is pushing toxic masculinty as the motive.
I disagree. Come punch me out if you can at the general store last Sunday in may.
Got lose teeth , knock them out of my mouth and take a trophy home.
I never chicken out .
I found god. age I’m thinking.
…………………………………………………………………..
First Smoking Man don’t jump to conclusions until at the facts are in. My brother in law is major traffic collision investigator for a GTA police force. They are among many forces called in over the last few days to literally walk up and down Yonge Street and collect evidence. Almost 3.5 KM of tragedy caused by this perpetrator. As for cause leave it up to the investigating officers to ascertain that motive, not to conspiracy whack jobs who believe the devil is hiding under every chair.
BTW God is real and is watching you! Also how the hell are you going to meet at the General store in May as you are now living in Cali? Did they find out you are an illegal alien and boot your ass out? Though you were never coming back to Canada? If so why?

#98 David on 04.25.18 at 8:48 am

“When you were a kid, mom made good decisions for you. Now she’s old, it’s your turn. That’s love.”

Simple but so true, i needed to hear that today, lots going on with my parents.. thank you Garth!

#99 Rargary on 04.25.18 at 8:54 am

#78- ha! Life’s about balance!
#76- Calgary is inexpensive compared to dumbtario and b.c…. lower gas, house, taxes and electricity costs!
#72- you quote the bible after assuming women whose hubbys leave are fat? Not so! Maybe you’ve got a bunch of logs floating in your eyeballs!

#100 Steven Rowlandson on 04.25.18 at 9:01 am

I think I need to win that Lotto Max jackpot before pretending to live in Canada.

#101 dharma bum on 04.25.18 at 9:05 am

I was always told that the older one gets, the wiser they become.
From what I’ve seen here, it seems the opposite is true.
In my own experience with aging parents, I also see the opposite.
Dumb decisions. Stubborn as mules. Self destructive financial behaviour. Refusal to listen to reason.
So, based on this in depth scientific research and experimentation, I have arrived at the conclusion that the older one gets, the dumber they get.
Just plain stupid.
Guess I’m headed there myself soon.
(Unless I’m ALREADY there!)

#102 slick on 04.25.18 at 9:07 am

#74 smokin’ man; the driver.
The arresting officer being hailed as a hero. I don’t disagree, and wouldn’t want the job. It could have turned out alot different. No one would have blamed him had he shot the guy. He still would have been the hero. I imagine he would have preferred not to be there, but that’s the way it ended up. The chief says suspect alive because of cop’s instincts and training. the whole takedown took less than a minute.
So can someone explain to me where were the instincts and training when a cop rolls up to a streetcar, empty except for one scared, stoned, skinny 17 year old, holding a 3 inch blade and and scared to come out?
And the cop empties his gun into him, even as he is on the ground?
Everybody has a job to do, some are dangerous.
I’ve had a few close calls meself. But you gotta live with your decisions. Derek’s house ‘buyer’ has to [good for Derek]. There are good and bad in every group. some just lose their way. I’m glad this cop is OK, the other, meh.

#103 Penny Henny on 04.25.18 at 9:17 am

#22 Ontario’s Left Coast on 04.24.18 at 6:55 pm
What’s going on with prefs lately?

???????????????

I’m curious too.
Could it have anything to do with Poloz’s statement that he is fine with inflation being anywhere between 1-3%. Possibly hinting that there will be no rate hike in May?

#104 PingPlayer on 04.25.18 at 9:20 am

I thought I’d add to your remarks to the ex-pat in Kenya some details of the withholding tax he will have to pay when he withdraws from his RRSP
-10% on amounts up to $5,000
-20% on amounts over $5,000 up to including $15,000
-30% on amounts over $15,000
If you’re from Quebec the rates are different, who’d have thought?
If you want to get tricky and do a $5000 withdrawal on Day 1 and another $5000 on day 2 to minimize this tax don’t bother, any amounts within 90 days should be summed and you’ll pay the higher rate on the second withdrawal. I’m not sure of the precise mechanics of this, it might be just on the honour system, but it’s best to keep the withdrawals 90 days apart.

#105 NotLegalAdvice on 04.25.18 at 9:29 am

I’ve now accepted that the RE market will not drop 50%.

The 2013/2014 prices will never come back.

IF you want a “good deal” on a house, now is the time.

The market has come down 15-30% in certain neighborhoods in the GTA and there will be no more decreases, not for a while.

There will also be no money to be made in RE for the next couple years. There will be no more 30% growth y/y.

As GT has suggested several times, if you can afford a house, buy one now. If you can’t, rent.

Another option for individuals that want to live in their current home, but can no longer afford to (like in the above scenario), sell the property, do a vendor lease back for 10 years (you can lease your own property back to yourself after selling to the buyer).

This way your life does not change, you sell your home for a million bux, lease back for 3k a month, over a 10 year period that about $360k .

Take the million bux, invest it in a balance portfolio and use the returns to pay for some of your rent (as GT mentions, 1 million invested is like 5k a month in returns)

#106 Penny Henny on 04.25.18 at 9:32 am

#44 Mark on 04.24.18 at 8:36 pm
“Mark speaks of ‘rookie mistakes’ in regards to buying or selling houses when he has never been involved in any end of such a transaction.”

Not true.

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

Careful Mark! You know your programmer doesn’t like it when you lie.

#107 Tony on 04.25.18 at 9:33 am

Re: #76 A on 04.25.18 at 1:24 am

All I’m seeing in Calgary is listings explode and price declines accelerate to the downside especially in detached homes. First the condo sector got hammered now its homes.

#108 re., 65 Leo T on 04.25.18 at 9:44 am

US all the way?

you have been babbling this ad nauseum. The SPY is in the red year to date.

your welcome

#109 Tony on 04.25.18 at 10:01 am

Re: #65 Leo Trollstoy on 04.24.18 at 11:28 pm

If you factor out cost cutting U.S. earnings have been falling for the past ten years. Where does the guy dream up strong corporate earnings?

#110 Bytor the Snow Dog on 04.25.18 at 10:25 am

RE: Husband Left-

He just got up and left, knowing that you have no real job and two young kids at 51. This means he knows he will be paying child support and alimony for the rest of his days. Yet he still left knowing that….must have been intolerable for him.

PS- 51, TWO KIDS “UNDER 12”? Sounds like you got a late start. Maybe, since it’s highly likely the kids are in school full time, you should think about going back to work?

RE: MOM- Why does she have to live in Vancouver? Take the money and run Mom.

#111 conan on 04.25.18 at 10:41 am

“As I was sorting out my financial life, my husband decided to leave me.”

On the insurance side, you need a written agreement. Lawyer up!

1) Your husband can not change the beneficiary on his group life insurance policies for X amount of years.

2) The pension split will more then likely happen at time of separation. The commuted value needs to known now. I strongly doubt you will get half of it at age 65.
Usually what happens is:

Commuted pension value = Y
House value = X

1/2 X = 1/2 Y + or – A ( the number needed to split assets fairly.)

3) Your husband needs another insurance policy to cover alimony for X amount of years. The designation needs to be irrevocable.

Your husband will likely hook up again. His new partner will take over all of these benefits if you do not take care of this with a lawyer.

Save yourself an enormous hassle and make sure these are covered. It is so easy to get a bad deal.

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

#112 Alistair McLaughlin on 04.25.18 at 10:45 am

@#79 Howard, I laughed at that. My thoughts exactly. I believe it was commenter MH who said that the incomes quoted here in comments and reader emails are “Internet incomes” and need to adjusted down by 25% or so to match reality. So either MH is right, or everyone who emails or comments here is a genius entrepreneur or a highly paid legal or medical professional (Cuz that’s what successful high performers do right? Spend time on a housing/investment blog every day?)

#113 LivinLarge on 04.25.18 at 10:57 am

Come on now Fearless Leader, you really can’t be suggesting for even a second that one tasteless Liberal ad cost even a single Conservative seat.

Personally, I liked Campbell and even Tail Gunner Joe but they didn’t wupped they way they were by running a single bad commercial.

#114 Zapstrap on 04.25.18 at 11:09 am

She’s been active with her condo board and knows there’s a $20k+ special assessment coming in a few years that’s been pushed off for redoing the roofs.

I hope anyone thinking of buying a condo paid strict attention to this line. Probably means it is not in the minutes of the board meetings. Only the “insiders” are privy to this. Happens all the time. One good reason to be on the board.

#115 For those about to flop... on 04.25.18 at 11:32 am

If you live in Brownsville it can be hard to get to Greensville…

M43BC

“This Map will Show You the Best (and Worst) Cities to Make a Living

What is the most important measure for your family when it comes to financial security? Is it the poverty rate in your community? The overall unemployment rate? Or is it the total take-home pay coming into your pocket each year? We suspect it’s the latter, so we created a new map showing the places with the 10 highest and 10 lowest median annual earnings in the country.

We analyzed occupational employment statistics from the Bureau of Labor Statistics for 381 metro areas. Figures represent the median annual income as of May 2017, the most recent information available. We took the 10 cities with the highest incomes and the 10 with the lowest and mapped them as green and red spikes, respectively. We then labeled the top 10 in each category.

Top 10 Cities with the Highest Annual Median Wages

1. San Francisco-Redwood City-South San Francisco, CA: $77,360

2. San Jose-Sunnyvale-Santa Clara, CA: $77,180

3. California-Lexington Park, MD: $70,860

4. Washington-Arlington-Alexandria, DC-VA-MD-WV: $70,170

5. San Francisco-Oakland-Hayward, CA: $69,700

6. Washington-Arlington-Alexandria, DC-VA-MD-WV: $69,210

7. Boston-Cambridge-Newton, MA: $69,170

8. Bridgeport-Stamford-Norwalk, CT: $67,540

9. Framingham, MA NECTA Division: $66,480

10. Seattle-Bellevue-Everett, WA: $65,350

Top 10 Cities With The Lowest Annual Median Wages

1. Gadsden, AL: $35,190

2. Brownsville-Harlingen, TX: $35,240

3. Sebring, FL: $35,870

4. Myrtle Beach-Conway-North Myrtle Beach, SC-NC: $35,890

5. Hot Springs, AR: $36,040

6. Daphne-Fairhope-Foley, AL: $36,110

7. Jacksonville, NC: $36,310

8. McAllen-Edinburg-Mission, TX: $36,380

9. Morristown, TN: $36,570

10. Valdosta, GA: $36,880

The most obvious trend from our map is that cities with the lowest paying jobs tend to be in the Southeast, whereas most of the cities with the highest paying jobs are either on the West Coast or in the Northeast. You might expect places like San Francisco and San Jose to top the list, given the presence of so many high paying jobs with the tech community. The same can be said for Seattle and Boston. Interestingly, Washington, DC makes the top 10 as well, perhaps suggesting that there’s money to be had if you’ve got connections to those in power.

But we think the best place to live is probably San Francisco. It has an unemployment rate of just 2.8% (the lowest of any in the top 10) and a poverty rate of just 9.2% (the second lowest in the top 10). That signals an economy running at top speed. Great weather, by the ocean, plenty of good paying jobs—now if only they can do something about the earthquakes.

Seattle, Boston, San Francisco—you’ve no doubt heard of many of the cities with the highest paying jobs. Gadsen, Brownsville, Sebring—do any of those places ring a bell? Many of the metro areas with the lowest paying jobs are hard to find on a map precisely because they aren’t known for any booming industries. As a matter of fact, Texas has two cities in the bottom 10, neither of which are the big ones you’ve already heard of like Dallas or Houston.

There are a couple of interesting surprises on our map at both ends of the spectrum, however. Fairbanks, Alaska makes it into the top 10 (with a median salary of $56,760), thanks in large part to the scarcity of labor on the last frontier and the oil industry. Alaska produces so much oil that instead of taxing people’s income, the state government actually pays people to live and work there. Boulder, CO also stands out as the only city on Mountain Time making it into the top 25.

Inequality is one of the defining themes of the U.S. today, but it can be a hard thing to illustrate. Our map shows where the haves and the have-nots tend to live and, although it is not a complete picture, it demonstrates enormous regional differences in take-home pay for American workers.”

https://howmuch.net/articles/10-cities-with-highest-lowest-average-annual-salary

#116 Midnights on 04.25.18 at 12:01 pm

Wow!!!
People will be screwed…
https://m.mortgagebrokernews.ca/news/alternative-lending/headache-looms-for-borrowers-because-of-oversight-241456.aspx

#117 Shawn Allen on 04.25.18 at 12:03 pm

What Team are You On?

#30 Amok on 04.24.18 at 7:39 pm asked:

Here is a geography lesson: Venezuela is a country and B.C. is a province within the country of Canada.

Why do people here insist on segregating ‘Ontarians’ and ‘Albertans’ and ‘British Columbians’ as if we are all members of rival hockey teams.

****************************************
All people have deep tribal instincts developed over millennia that cause them to easily want to segregate into teams all the time:

There are tons of examples:

Fans of various sports teams
Ontarians
Alertans
Torontonians
Working people
Millenials

This basic instinct to quickly see ourselves as on some group or team in opposition to other groups or teams explains all kinds of things including racism and nationalism.

As an advanced society with anti-discrimination laws we work to avoid our baser instincts and often we succeed but our base instincts are never far below the surface.

Anon appears to think we all ought to work as part of Team Canada rather than seeing ourselves as Albertans or whatever.

I have a lot of sympathy for that view and have always thought of myself as having only one citizenship – Canadian. I have been a resident of Nova Scotia (by birth) and Alberta (by choice for the opportunity) but neither offered me a passport nor earned any great allegiance from me.

In times of real threat like a war against Canada I will certainly be part of Team Canada. And I always cheer for Canadian sports teams. But when it comes to economics I don’t think there is or should be much of a feeling of Team Canada. Adam Smith taught us to look after our own economic interests and that this would benefit society by an invisible hand effect.

Don’t count on altruism of fellow Canadians to make your life better. You will find they are not such loyal “team mates” when it comes to their economic interest versus yours. Get after it and do it on your own if at all possible.

#118 T on 04.25.18 at 12:12 pm

#44 Mark on 04.24.18 at 8:36 pm
“Mark speaks of ‘rookie mistakes’ in regards to buying or selling houses when he has never been involved in any end of such a transaction.”

Not true.

—————

Mark, helping your parents move does not count as being involved in a property transaction.

#119 Duke on 04.25.18 at 12:54 pm

#42 BC Real Estate going soft like ice cream out in the sun on 04.24.18 at 8:26 pm
Realtors are kind of bored right now in BC as they enter delusional denial phase.

Spring market has failed to show up.

Groundhog saw its shadow flipping in BC and passed out.

Now the market is dead and gone.

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

Realtors are not bored. Instead, they are desperate making a deal as tax due is coming soon. They need money to cover their tax but have none in their bank account.

I recently watched few Youtube videos made by some realtors and they all sounded very desperate. No deal, no money, losing their Audi. Simple.

#120 Blackdog on 04.25.18 at 1:17 pm

@Bytor the Snow Dog re: #110

“RE: Husband Left-
He just got up and left, knowing that you have no real job and two young kids at 51. This means he knows he will be paying child support and alimony for the rest of his days. Yet he still left knowing that….must have been intolerable for him.

PS- 51, TWO KIDS “UNDER 12”? Sounds like you got a late start. Maybe, since it’s highly likely the kids are in school full time, you should think about going back to work? ”

Yeah, must be her fault he left. Maybe because she has been sitting at home on her butt for too long and he got impatient waiting for her to contribute to the finances. Who could blame him? Freedom First (presuming the black widow did not get him) must be shaking his head in sympathy for the poor old chap. Sigh…so many years tied down by marriage and kids and all the drain on finances.

#121 Penny Henny on 04.25.18 at 1:20 pm

Hey Garth – Started reading your blog last year just in time. As I was sorting out my financial life, my husband decided to leave me.

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

Re reading this and something about this comment strikes me as odd. The woman writing to Garth states “As I was sorting out my financial life”.
Now why would she write ‘my financial life’?
Following the timeline of the letter it seems that they were still a couple at that point before “my husband decided to leave me.”

It is possible that the children may not be a byproduct of their union. Maybe they have only recently married. Who knows?
But still odd that she would write “my financial life”.

#122 greyhound on 04.25.18 at 1:37 pm

Folks who are counting on bond holdings to balance a possible equities break should keep an eye on this chart https://pbs.twimg.com/media/DboQ2W7U8AAT5ZD.jpg:large

#123 Brett in Calgary on 04.25.18 at 2:15 pm

I second this. Are we recovering? Maybe, but I would be surprised to see enough incomers from BC to improve the fortunes of Calgary’s real estate this summer.

Re: #76 A on 04.25.18 at 1:24 am

Tony

All I’m seeing in Calgary is listings explode and price declines accelerate to the downside especially in detached homes. First the condo sector got hammered now its homes.

#124 MF on 04.25.18 at 2:22 pm

112 Alistair McLaughlin on 04.25.18 at 10:45 am

Lol I believe that was me.

There is real world income, and then there is E-income which is 25-30% higher.

Similar phenomen is observed on dating sites where men’s E-stats are 3 inches taller, and women’s E-stats are 5 years younger.

:)

MF

#125 burnaby guy on 04.25.18 at 2:27 pm

Hey Mark the 2013 peak/apex RE guy – more proof that nobody agrees with you

#83 JM Keynes on 04.25.18 at 7:23 am
#94 Leo Trollstoy on 04.25.18 at 8:34 am
Let’s not forget Garth too

2013 peak RE Mark – the only person agrees with you that RE peaked in 2013 is Ross Who so it’s time for you to close shop.

#126 AfterTheHouseSold on 04.25.18 at 3:04 pm

#134 D_B yesterdays blog inquiry buying real estate
Saved: 1.32M CAD
Job Security: Can be better, can be worse.
Family income: 160K
Savings rate: 21% of income

Consider:

If first time buyers, access max allowable money from RRSP home buyers plan.
Use the .32 of your savings as the down payment on a house.
Buy/live within your means (see comment #146 for info on 700k houses).
Read everything Garth has written on RRSP tax shifting, mat leave etc.

Money makes money faster than you can earn it.
Drop the 1M into Garth’s balanced portfolio earning 6-7%
At end of 5 yr plunk the 350,000. onto the mortgage.
When the mortgage is paid let the money continue to grow for retirement.
This could also provide an extra income stream of 70,000 per year in case of job loss.
This would also keep you liquid instead of having the 1.32M tied up in one asset.

#127 Happy penguin day on 04.25.18 at 3:12 pm

https://twitter.com/invisibleman_17/status/989037952083873792?s=09

#128 Lee on 04.25.18 at 3:18 pm

Budget deficits exploding in Ontario according to AG. We are doomed.

#129 232 on 04.25.18 at 3:48 pm

These were better letters than the usual “I’m 28 and earn $100K/year as a public sector analyst and have $840K net worth and did it all by myself with no inheritance or other family help. How do I stay firmly planted in the 1% so I can keep bragging anonymously on blogs??” sort of mail you usually share with us.

—————————————————————-

I agree. I can’t stand those people who claim they are young with gigantic net worths… We all know the money was donated by mom & dad. It’s impossible to be in your late-20s or early-30s with hundred of thousands of dollars. I know because both my wife and I are educated professionals with good jobs who live quite frugal and find it hard to put money aside due to high cost of living. part of me wants to leave this pussy country and retire and live in Asia, where I can live pretty well for the rest of my life…. I can’t stand the dictatorial workplaces in what is supposed to be a capitalistic culture… i’m getting close to call it quits

#130 James on 04.25.18 at 4:16 pm

Ontario’s auditor general says the Liberal government’s statements on the province’s finances understate its deficit by billions.
In a pre-election report released Wednesday, Bonnie Lysyk also says the government has not accurately reflected the true cost of its borrowing plan to cut hydro rates by 25 per cent, and is raising questions about the way it accounts for revenues related to two teacher pension plans.
As a result, Lysyk says the government’s deficit projections are off by 75 per cent in 2018-2019, jumping to 92 per cent in 2020-2021.
Lysyk says the 2018-2019 deficit projected by the government was $6.7 billion and will instead be $11.7 billion.
The deficit projections for 2020-2021 are $6.5 billion, but Lysyk says that figure will actually be $12.5 billion.
Premier Kathleen Wynne downplayed the discrepancy today, calling it a long-standing “accounting dispute” between her government and the auditor general.
…………………………………………………………….
Is that due to the long-standing fact that Wynne can’t count due to her new education curriculum? Is she naive, stupid or just plain lying to us?
Oh hell , what am I saying of course shes lying!

#131 Mark on 04.25.18 at 4:25 pm

“#118 T on 04.25.18 at 12:12 pm “

Sounds like its time for you to get your mental health tuned up. Please get someone to take a look at that for you. I’m not kidding either.

#132 crowdedelevatorfartz on 04.25.18 at 4:38 pm

@# 31 Lost but thankfully leashed

“NDP is the equivalent of crowdedelevatorfartz
Make ill -advised spontaneous decisions, bugger- off…then the majority suffers the collateral damage.

+++++++
Bugger -off…..hmmm a colloquialism commonly used by the lesser educated yobs of old Blighty.

Pray tell,
When Queen Liz retires next year and we have to sing “God save the King” will you start a petition in Limey land to have his ears surgically pulled back?

#133 jess on 04.25.18 at 5:11 pm

here’s a policeman who is no hero

Jane Carson-Sandler, who was sexually assaulted in California in 1976 by a man believed to be the so-called East Area Rapist, said she received an email Wednesday from a retired detective who worked on the case telling her they have identified the rapist and he’s in custody.

http://www.cbc.ca/news/world/dna-golden-state-killer-police-officer-1.4634936

#134 not so liquid in calgary on 04.25.18 at 6:11 pm

@ CalgaryCarGuy on 04.24.18 at 8:15 pm
Re #80 by crowdedelevatorfarts from 4/23
@#66 Calcargrrry car Guy
‘In your dreams. How about 2.10/liter by June 15th”
+++++
Ahahahahaha,
Yer probably right my oil pumping, valve closing pal!
Bring it on!
I have a company gas card………

:)-

—————————————————————–
Yeah, I put a bit of thought into that guess. It might be about right. BTW Mr crowded, I actually do respect and usually enjoy your posts here—you’re one of the good guys. Polls keep showing that a majority of B.C. people support the pipeline. Hopefully they can step up to the plate at some point.

——————————————————————————————–

let me echo that thought, yes, BC’ers should be more supportive… SK sure is ;-)

#135 jess on 04.25.18 at 6:12 pm

socialist agitators ??? polluters should pay.

Soaring number of abandoned wells will see industry levies jump to $45M this year — triple from 2014
Tony Seskus · CBC News · Posted: Feb 21, 2018 4:00 AM ET | Last Updated: February 21

The annual levies charged to industry to support the fund have soared to $30 million in 2017 from $15 million in 2014. The planned levy for 2018 is $45 million.

http://www.cbc.ca/news/canada/saskatchewan/sask-case-see-ottawa-carbon-tax-unconstitutional-1.4634719

Alberta’s Growing $30-Billion Liability: Inactive Wells
Compared to other jurisdictions, province lets oil firms off the hook when it comes to cleaning up.
By Andrew Nikiforuk 13 Feb 2017 | TheTyee.ca
https://thetyee.ca/News/2017/02/13/Inactive-Wells-Alberta/

In December of 2012, Saskatchewan Auditor General Bonnie Lysyk issued her annual report on the Saskatchewan government’s operations. In it, she was critical of how the government – led by Premier Brad Wall and his Saskatchewan Party – was handling the cleanup of orphan wells and related facilities in the province. The report stated that the province had estimated there were potentially 700 orphan wells and facilities in the province and only 10 had been remediated and abandoned.

Lysyk was not impressed and concluded that the Saskatchewan government did not have “effective processes” to manage the financial and environmental risks related to the future cleanup of orphan wells.
https://www.albertaoilmagazine.com/2013/04/orphan-wells-saskatchewan/
Feb 13, 2017
https://www.albertaoilmagazine.com/2013/04/orphan-wells-saskatchewan/
http://www.cbc.ca/news/business/alberta-orphan-wells-1.4543559

#136 Rick on 04.25.18 at 7:07 pm

Can anyone tell me why CPD dropping with interest rates moving up. I understand the 2015/2016 losses were due to interest rate cuts. Thanks

#137 waiting on the westcoast on 04.25.18 at 7:08 pm

129 Mark on 04.25.18 at 4:25 pm says about #118 T
“Sounds like its time for you to get your mental health tuned up. Please get someone to take a look at that for you. I’m not kidding either.”

Mark – you wouldn’t get such scorn if you let go of that bone. And if you are going to hang on to it that tight… better if you get a sense of humour… ;-)

#138 Unhinged Trader on 04.25.18 at 7:12 pm

Where does a professional vagrant secure 85K in savings?

#139 T on 04.25.18 at 7:42 pm

#129 Mark on 04.25.18 at 4:25 pm
“#118 T on 04.25.18 at 12:12 pm “

Sounds like its time for you to get your mental health tuned up. Please get someone to take a look at that for you. I’m not kidding either.

—————

This made me laugh.

You repeat the same fictional nonsense daily. Go do some research and come back with actual data evidence supporting your theory of real estate values peaking in 2013. There has been many examples provided to you which you ignore.

You obviously have an agenda with too much time on your hands, or are suffering some illness yourself.