Weensie

Is a house the best retirement strategy? Better hope so. Or millions of us are screwed.

The amount of money Canadians are investing for the future is plunging. The amount dumped into real estate has exploded. Never before have so many gambled so much on just one thing. It’s like seventy per cent of the entire population owning a single stock, the price of which they cannot control.

Looks like RRSP contributions, for example, are about to hit a 40-year low. A report this week from the biggest bank says we put only 2.9% of our disposable incomes into retirement savings last year, and could be far less this time around. It was way back in the 1970s, long before I was born, that we last contributed so little.

But while saving has taken a direct hit, real estate’s blossomed. At seventy per cent, we have one of the highest home ownership rates in the world – with a debt load to prove it. So, does this mean housing is sucking off the cash that previous generations put aside for those glorious days of incontinence, erectile dysfunction and bladder infections?

You bet! Especially when we all have an itching wicked case of recency.

Take this comment published in the Vancouver Sun: “In the past 35 years a 33-foot lot in Vancouver’s West Side has risen in value from $14,000 to over a $1,000,000 ($28,000 per year!) and I’m sure the next 35 years will bring golden returns to lucky owners. I wish my RRSP had done that well!”

See what I mean? What happened in the past three decades will surely be repeated in the next. Those thirty-three feet of naked dirt will soon be worth $70 million! This is recency – the almost-always fatal belief that recent experience dictates the future. It’s why people consistently buy stuff when it costs the most and is likely to take a dump – because they believe it’ll ascend without end. Just like last year. Or last week.

Did you own Nortel? I rest my case.

Of course it’s only realistic in the end stages of a real estate bubble, when house prices have exploded yet salaries are falling behind inflation, that there’s little cash left for people to whack into RRSP (or TFSA) portfolios. In fact, every month we’re becoming less diversified and more indebted. As I mentioned yesterday, last year half of all new debt was taken in the form of HELOCs, and most of that went back into home renos. Not investing. No deductible interest. No diversification. Just more granite, stainless and that de rigeur phony hardwood Home Depot sells.

So, does this make sense? Is it a sane thing to throw your resources into a piece of property, and end up with a fat, paid-off house, and a weensie little portfolio? Well, if you bought the house in Leaside that I sold 10 years ago for $612,000, and dumped it this week for $1.21 million, absolutely. That’s a 7% annual return. In contrast, stocks have given 4.5% over ten years (but 8.76% so far in 2012).

Of course, people think they know real estate. And they understand they know diddly about equities. So naturally, housing is the default investment – especially now when interest rates are at historic lows and horniness is at record highs. Coming off the GFC, it’s all more extreme. Liquid financial assets equal risk. Bricks equal safe. Most people have an insane fear of losing money while being fearless about debt. It never occurs to the lusty young 5%-downers they’re using leverage that’d make a grizzled trading floor vet hurl.

Of course, this is one helluva dangerous societal thing happening. As this pathetic blog tries to make clear, there is systemic danger to real estate, especially when it is so widely held and so bolted to a foundation of debt. Interest rates will rise. Boomers will flee. The economy will stagger. Confidence will wane. And buyers will fade. So many homeowners think they’re bulletproof, but have never seen a market where houses lose value and turn illiquid. At least you could always sell your Nortel.

Anyway, I have to run to the office now and make the Amazons’ group RSP contribution. They’ve been so skilled, I just had to match it. I love diversification.

258 comments ↓

#1 Arse on 02.24.12 at 10:09 pm

First???

#2 AlexanderTheGreat on 02.24.12 at 10:11 pm

Hope I get first so no one else can… tired of all these firsts

#3 KingBubbles on 02.24.12 at 10:13 pm

TGIF

#4 Mr.Lee on 02.24.12 at 10:14 pm

The Nortel example (along with Bre-X) is very telling. Look at how many people got in at the top only to lose it all when the correction took place. I know, I know, it is different this time with housing. Yet the funny thing is that history has demonstrated that when the, “its different this time” crowd comes out…….it is for the most part over.

#5 Freedom 55 on 02.24.12 at 10:14 pm

Bank of Canada raises concerns over home equity loans, housing correction

OTTAWA – Canadians are becoming increasingly vulnerable to a housing correction, exposing them to a perfect storm of high debt and falling assets, the Bank of Canada warns.

In a book of four research papers released Thursday, the central bank suggests many Canadians have constructed their finances on a house of cards, with ever rising home values the key and vulnerable support.

http://ca.finance.yahoo.com/news/bank-canada-raises-concerns-over-203240722.html

#6 Smoking Man on 02.24.12 at 10:15 pm

DELETED

#7 AlexanderTheGreat on 02.24.12 at 10:15 pm

You’re an arse, literally

That was great, Alexander. No, really. — Garth

#8 First on 02.24.12 at 10:16 pm

Furst?

#9 Sh on 02.24.12 at 10:18 pm

Recommended reading which applies to RE in Canada–the government’s attempts to prop up housing and maintain the mirage of stability and ever increasing prices actually accentuates risk because needed corrections are not allowed to happen. As Jung noted in psychology, the result is a dramatic swing to the opposite side (enantiodromia); a swing which creates havoc:
http://fooledbyrandomness.com/ForeignAffairs.pdf

#10 SteveO on 02.24.12 at 10:19 pm

” It was way back in 1975, long before I was born, ”
haha
Garth, if you don’t still have some albums you bought in ’75, then I have overestimated you…!

#11 Van guy on 02.24.12 at 10:21 pm

“horniness is at record highs”

1/3 the population is aging. Combined with horniness, that means its a good time to buy PFE stocks.

#12 JessicaJ on 02.24.12 at 10:21 pm

“… It was way back in 1975, long before I was born, that we last contributed so little.”

Really, Garth! Maybe that beard is not a good look! On the other hand, you are a fantastic writer! Thanks.

#13 T.O. Bubble Boy on 02.24.12 at 10:23 pm

I blame the TFSA for the low RRSP contributions… so, in a way, Garth caused this retirement crisis when he proposed creating the TFSA.

(at least, that’s what Flaherty told me)

#14 Don on 02.24.12 at 10:27 pm

Ok weeks ago I mentioned my young brother and his wife (2yrs in real estate) said they were about to buy a house.

Well now they are holding off, taking their time, vacating the city and moving to a smaller city less expensive rent/houses.

But…still is in denial that rates can or will rise. Because the expert mortgage specialist (young salesmen) at the bank of Nova says so.

Watching this is similar to watching a baby start to walk, staggering in the right direction but still staggering. Almost there but yet not really close enough. I guess research is a lost cause as recency rules the times. (shaking my head – oh well at least they are waiting and hopefully won’t jump in on the way down. And yes realtors do not inform they clients of the total monthly costs they always low ball (no mention of loan insurance etc etc. I suggest to get a realtors license in the future at least two years or economic courses and oh yah thrown in ethics also.

#15 Sh on 02.24.12 at 10:30 pm

Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they
Only recover their senses slowly, and one by one.” –Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds

#16 Smoking Man on 02.24.12 at 10:31 pm

Are you serious Grarth the last post need deletion

It was funny…………

Holly smokes get

DELETED

#17 truth hammer on 02.24.12 at 10:31 pm

The apologists and poo sniffers holding government jobs recommend higher taxes.

http://www.vancouversun.com/news/economists+recommend+sales+food+education+health+care+more/6205857/story.html

Gee….. you work for the government and ‘need a raise because you can’t make ends meet because taxes are too high’…..solution….raise taxes….brilliant…why didn’t I think of that? Hakuna Mattata

#18 Smoking Man on 02.24.12 at 10:34 pm

Click on my name and see my last post tell me does it deseve deletion

democracy rules

Sober up. — Garth

#19 T.O. Bubble Boy on 02.24.12 at 10:36 pm

Here’s my solution to the low RRSP contributions:

1) One by one, every Canadian homeowner temporarily sells his/her property to the next door neighbour.

2) Proceeds from the house sale are put in a RRSP (apparently there is a lot of unused contribution room, if so few are using RRSPs these days).

3) A RRSP Mortgage is setup to buy the house back from the neighbour. The RRSP Tax Refund is used to pay for the closing costs etc.

4) Rinse and Repeat until every Canadian has put 100% of their house equity into a RRSP.

So, what this has no accomplished is that every single Canadian homeowner is still invested all-in on housing, but at least the equity is making some gains via the mortgage payments going back into the RRSP!

Too bad this can’t actually work for a large % of people, since Canadians don’t have enough equity to pull it off… but I’m sure there are a ton of Boomers out there that would be far better served with this scheme vs. something like a CHIP reverse mortgage.

#20 jess on 02.24.12 at 10:40 pm

Expats struggle with high cost of electricity in Cyprus
Increasingly high electricity rates on Cyprus are causing serious financial difficulties for expats

http://www.telegraph.co.uk/finance/personalfinance/offshorefinance/9098952/Expats-struggle-with-high-cost-of-electricity-in-Cyprus.html

…”Two Facebook groups set up against the growing tariffs have attracted over 7,000 members, and are filled with expats and locals alike sharing stories of how they have been forced to stop using virtually all their appliances to avoid going into the red
CyprusExpat, says she knows of several couples, living in one-bedroom apartments, who have been handed bills of €560-plus for just one month .”

#21 LJ on 02.24.12 at 10:44 pm

The RRSP problem is likely due to two factors; household debt due to homeownership and the TFSA. A third factor should also be considered, namely rising taxation in the future. If you put money into this vehicle and tax rates rise enough, you will never even get your initial investment out no matter how well the markets perform – and this is ignoring the persistent high inflation that we are going to see going forward. As prices for basic necessities rise, you will wonder if your RRSP will fund a full tank of gas in a couple of years.

It is a fools game to try to beat the system. Whether it is a bet on housing or stable government taxation.

#22 vreaa on 02.24.12 at 10:45 pm

Basement Suite In East Vancouver Sells For $590K

http://wp.me/pcq1o-3JB

Can’t make this stuff up.
We just report what happens.

(repost from end of last thread)

#23 Canadian Watchdog on 02.24.12 at 10:46 pm

Charts of Week (Since you mentioned 1975)

Historical Consumer Credit https://p.twimg.com/AlHLF4nCMAAG8Pl.png:large

Historical Residential Mortgage Credit https://p.twimg.com/AlJMOVwCQAAJNwr.png:large

Bell Curve Components http://i42.tinypic.com/29gg95k.png

#24 Preciousss on 02.24.12 at 10:49 pm

I contend that there is less REAL income to dedicate towards an RRSP. Stagnant wages coupled with rising rent, mortgage, taxation, fees and inflation. Contributions diverted to TFSA may be a factor. Less of an impetus to save or it may very well be that there is nothing left at end of month to save.

BTW silver up approx. 26% and gold up approx. 11% in 2012.

Also when you deflate $SPX (SP500 index) by $WTIC (crude oil) and plot it you get a downward slope.

Stagflation is a painful way to lose hard earned money.

#25 Retired Boomer - WI on 02.24.12 at 10:50 pm

Since retiring, took a look at this dump. Ordered the new kitchen floor (fake wood thank you), and 34 yds of carpeting for the living room.

I won’t need a HELOC to pay for it, which is sweet.

#26 Stasis on 02.24.12 at 10:52 pm

File under “Why let facts get in the way of a good story”

Still, those who choose to base their measure on home prices could argue that with interest rates at historic lows, mortgage payments are artificially depressed.

Therefore, they would say, you should ignore the impact of cheap money, since it will inevitably become more expensive.

This is true, but probably irrelevant.

Why? First, because everything depends on how fast and far rates go.

And second, even the absolute level of price over-valuation is pretty modest. Different analysts agree that the International Monetary Fund’s estimate of about 10 per cent is close to the mark.

That’s small enough that just a few years’ price stagnation would be enough to wipe it out, since incomes are constantly rising.

Read more: http://www.ottawacitizen.com/Housing+bubble+prudent+investment/6206935/story.html#ixzz1nMFshVEs

#27 Al on 02.24.12 at 10:57 pm

Despite the pleadings of Carney, its now common practice to offer more than the asking price. Look at these recent sales; http://www.torontomls.net/PublicWeb/CL_CF.asp?link_no=41458968.175000&t=l&fm=F

#28 John Ratadlin on 02.24.12 at 11:04 pm

People are financially illiterate so the easiest thing to do is buy property. Canadians are the new Japanese real estate wise.

#29 Waterloo Resident on 02.24.12 at 11:05 pm

First of all, rates in Canada are NEVER going to rise more than 1%, that is a given !

And as the American economy improves then so will our exports and that will negate any negative effects of a 0.5% rate rise that we will get over the next 5 years. After that I would say that interest rates will fall down 1.5% from where they are now, and that fall in rates will push our housing market up another 80% in price from where it is now.

So generally, this is how I see it:

That $400,000 house you saw 3 years ago is now selling for $800,000. Soon (in 4 years) it will be selling for $1.2 Million. Then, in another 6 years it will be selling for $2 Million ( I’m talking about the GTA area here.)

After that I would say that a rise of about 15% per year for the next 35 years is not beyond reasonable, doesn’t everyone agree here?

#30 45north on 02.24.12 at 11:07 pm

The Supreme Court in Canada ruled that obese and disabled people traveling on airplanes cannot be forced to buy a second seat.

http://www.reuters.com/article/2010/01/29/us-airlines-obese-idUSTRE60S0N520100129

The ruling of the Supreme Court of Canada is perverse. Common sense says that a grossly obese person should not take up more than his share.

This is recency – the almost-always fatal belief that recent experience dictates the future.

As I explain to my children, the houses that I bought (serially) over the last 40 have steadily gone up in value but that time is over. Now houses will steadily decrease in value.

Sh: (it’s hard to search for Sh) from your link: Complex systems that have artificially suppressed volatility tend to become extremely fragile, while at the same time exhibiting no visible risks.

that would be the Canadian market. The Canadian middle class is about to be crushed.

#31 Carpe Diem on 02.24.12 at 11:08 pm

OK this unrelated but Smoking might get a kick of this.

Here is a good read if you have young boys in the school system : Raising Boys in a New Kind World

I’ve been thinking of you Smoking Man while reading this and your view of the school system. This guy refers to schools as factories.

Personally, I think our (French) school is way too crazy in learning reading and writing for boys. Chill people, they have 12 years to figure it out. Who cares about being in the top 10% of schools for 3rd graders in Ontario.

Freaking school system for young kids expect boys to sit down, shut up and listen. Otherwise, tells parents your kids may have ADHD … we are surveying all parents and so far all boys are “diagnosed” with being a red flag.

I was proud today my kid stood up to some bullies (that the prinicple says don’t exist) and used his karate to protect some girls. He got detention and all but I told him if you have a good code of honour, I support you.

Now with all this in mind. Is the bond market correct or is the stock market correct. Both have been going int he same direction. Usually bond market is correct … thoughts?

#32 Renters Revenge on 02.24.12 at 11:16 pm

Seriously, where do you get these pictures? I tune in daily for the pictures almost as much as the content. Well done!

#33 Dorothy on 02.24.12 at 11:17 pm

Your mistaken Garth in assuming that all of us bought a house as an “investment”. We bought our latest home in 2010 knowing full well the housing market was in decline. But because we saw it as our retirement home, something we’d worked and saved for over the years, and something we were unlikley to have to sell into a down market, we bought it anyway.
Admittedly we struck a hard bargain on the price, and negotiated the bank down on the mortgage rate, but we still bought. And have absolutely NO regrets.

Now, if we had been buying it with little or no downpayment, and a massive mortgage, we would have felt differently. But that hasn’t changed for us, because we wouldn’t have done that even in a rising market. People who buy a house with little equity are playing a dangerous game of roulette, in ANY housing market.

#34 Smoking Man on 02.24.12 at 11:25 pm

18 Smoking Man on 02.24.12 at 10:34 pm

Grarto, you delete my post yet you allow me to post a link to my deleted post.

wtf

I thought you where an ass for sec…….Shit don’t know how to read you.

Ok time for a fat boy……..then I will see the light

Come on seriousd;y would y

#35 Soylent Green is People on 02.24.12 at 11:31 pm

Hell hath doth frozen over Canadians. Below article is from the National Post. The 1%. Rich white guys. The National Post !!!!!!!!!!!!!!!!!!!

…………………..

It beggars belief that local campaign workers in 18 different ridings could have separately hit upon the same scam, or carried it out without the knowledge of anyone outside the riding. The notion that the whole thing could be put down to one over-zealous young campaign worker, as some are putting about, is even less credible. Whoever did this would not only have to have the capacity to organize and fund a national robocalling operation. They would also have to have the lists of names and phone numbers to call. Such information would be closely held with respect to the party’s own supporters. But how many people in the party would have access to lists of Liberal supporters? And how did they get them?

It is hard to overstate how serious this is.

It doesn’t matter whether the calls had their intended effect. It is sufficient that someone made them.

If it were just the circumstances, or just their track record, the Conservatives might be given the benefit of the doubt.

But the two together, while they do not prove anyone in the party was involved, make it all too plausible to believe they were. Indeed, it would be more surprising to find they weren’t.

http://fullcomment.nationalpost.com/2012/02/24/andrew-coyne-all-to-plausible-to-think-the-conservatives-are-involved-in-the-robocall-scandal/


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#36 McLovin on 02.24.12 at 11:39 pm

Garth never go away. Hopefully when you are proven right after all these years of maintaining this miserable blog the talk shows and newspapers will trot you out and give you a medal.

#37 Thomas on 02.24.12 at 11:48 pm

Like investing in stocks, a profit is only a paper profit until you sell to lock in gains. As with nortel, unless you SOLD high, you lst your shirt. Another point, I don’t care what your hoe is worth, rather, what is your net worth?

#38 Devore on 02.24.12 at 11:49 pm

Over 70% ownership! Gotta be scraping the bottom of the barrel here.

It’s called the recency bias, which dictates, as Garth writes, that recent events dictate future outlook. It works the other way too: if things are going badly, tomorrow will be even worse. Even though humans are by nature optimistic, I know I certainly am (long term), the recency bias is stronger when it comes to things that matter, the things that get us emotional.

The media does not help. MSM has only two settings: rainbows and unicorns, and doom and gloom. In the drive to outsensionalize the competition, there is no in-between, no balance.

#39 penpal on 02.24.12 at 11:53 pm

@ # 29 Waterloo Resident

I don’t know what drugs you are on, but I’d really like to buy about $ 200 worth.

#40 GTA Girl on 02.24.12 at 11:55 pm

What amazed me about today in the Toronto area, was how so many took heed of Enviroment Canada’s snow storm warnings. School bus routes were cancelled throughout the GTA. People stayed off the roads, traffic was clear, people kept their kids home.

This despite waking up and seeing at maximum a half centimeter of snow, or some rain.

The truth was visible before them, a mild gray February day. Yet they heeded the heavy media spin of the night before. They became blind to the obvious, and reacted to the herd.

It is symbolic of what has been happening over the last few years.

With a slight nudge, a few questioning, scratching their heads….like many did today…the house of cards is falling.

#41 not 1st on 02.24.12 at 11:55 pm

Garth, people aren’t putting money into RSPs cause they have figured out they are a scam being pushed by the bank. Everyone knows that taxes are going to be higher in 10, 15 and 20 years once the boomer tidal wave swamps our system.

And why do people feel safer with houses? because there aren’t some scumbag floor traders and corrupt CEOs messing around with the price every day, shorting it, leveraging it, day trading it or leaving it to front run on HFT machines.

Why do you bring up the examples of Nortel and Bre-X? Seems to me back then the CEOs and Bay Street were pumping those stocks all the way even as they fell telling us all nothings wrong, just a blip. You think people would have bought those if they knew the real story going on in the boardrooms. My own Scotia broker convinced me to get in at the top of the NASDAQ bubble in 2000 and we remember what happened there. Same probably goes for RIM right now – the iPhone and others are probably going to bury that company but if you listen to their mouthpieces and BNN analysts, its just a down business cycle, but the dips. Its convenient for you to forget that people have been led to the slaughter in the equity market too.

#42 Amazed on 02.24.12 at 11:58 pm

Most of the mid 30s to mid 40s people I know put the minimum down on their mortgages A few years back… House appreciated in value and then they used it as an ATM. Three vacations a year, new things, activities for the kids. Some house reno luxuries. To the tune of $50000 in a single year. Any drop and these people are in a negative equity situation. Everyone thinks its impossible for values to go down. I am amazed daily. Working hard and buying when housing was cheaper we quickly paid off our house, and we in our mid 30s try and think about how to best plan for retirement. 9 years ago we thought our house was over priced… Now I see people with a single income of $50000 looking to purchase $500000 SFH. Really amazing times. People talk about a million dollars as if it’s nothing. There is no reality. In my mind, if you have no equity in your home… How can you really be a home owner? People definitely feel entitled these days. Live within your means and everything will be ok… Live it up and you will get no sympathy from me… Sorry. If you have kids, give your head a shake. Regroup… And start thinking about your future. :)

#43 Joseph R on 02.25.12 at 12:03 am

Carney defends ”Flexible” inflation target…

Isn’t the BoC obligated, by its charter to prevent inflation from reaching 2% ?

http://www.theglobeandmail.com/report-on-business/economy/carney-defends-flexible-inflation-target/article2348761/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Home&utm_content=2348761

#44 Guelphite on 02.25.12 at 12:07 am

We bought our first home in 1989 (Guelph) @ $134K. We had just married and everyone had the same advice; “Buy a house before it gets too expensive”. Fast forward to the first Market Value assessment in 1995 and our little hovel was valued at $95K. And this is at interest rates that started at 11.75!!

Bottom line is we had no choice but to pay down the mortgage and stay there until 2003 when we bought our current abode. Made a token capital gain of $18K which is diddly compared to the carrying costs of those 13 years.

What happened to us then can happen now. So many similarities, most of which Garth has already pointed out.

P.S. Today our mortgage is paid off, we are putting 2 boys through university, and our debt-to-income ratio is a whopping 5.03%. The house? No more than 40% of our net worth.

‘Nuff said.

#45 bubble head on 02.25.12 at 12:11 am

when i bought my home in 2004 i got 4.2%, for 5 years later I got 3.65, three years later is 3.3%. We may be at the bottom for interest rates but how much will it go up in the two years? The banks will bring back the prime minus one – variable for those who can’t afford the fixed.
Low interest rates has done nothing for the American housing market. You can get a 10 year for 3.89%. I think the employment rate will have more of an effect short term.

#46 Canadian Watchdog on 02.25.12 at 12:19 am

#27 Al

Ever play Baccarat with Asians? If so, you’ll know why bids are going through the roof.

#47 a prairie dawg on 02.25.12 at 12:25 am

“It was way back in 1975, long before I was born, that we last contributed so little.”

– — –

That’s what scared me when I read that article today.
I remember how that decade ended. Interest rates were spiking. People were scrambling to make ends meet financially. Economy going downhill. Oil price rising. People losing their homes. Layoffs, cutbacks, all the good things. And it all followed a big run up in credit, overspending, and living for today.

But I’m SURE it’s different this time…. lol

If history repeats, and we are close to 1975 in credit cycle bubbledom, the full economic pain should be everywhere within 4 years or so.

Just in time for the next election…

PS, did anyone catch that article today about how much Canada is “losing out” on revenue by not adding GST to food sales?

#48 Blue Monster Lover of Cookies on 02.25.12 at 12:25 am

#39 penpal on 02.24.12 at 11:53 pm

@ # 29 Waterloo Resident

I don’t know what drugs you are on, but I’d really like to buy about $ 200 worth.
—–
Contact cement’s only $6.99 at Home Hardware

#49 oslec on 02.25.12 at 12:28 am

#29 Waterloo Resident on 02.24.12 at 11:05 pm

Yes I agree!! I agree that you are off your meds again!!!
Welcome to the Imaginarium of Dr. Parnassus!!

#50 FTP - First Time Poster on 02.25.12 at 12:29 am

An excellent video explaining the rise and fall of the U.S. and the current global turmoil before us.

http://www.youtube.com/watch?v=N2Xh5eN2fXY

#51 Poorgoisie on 02.25.12 at 12:39 am

Is there a troll factory in Waterloo?(#29)
In six years I’ll need to put 400,000 down on 2mil house!? the remaining 1.6 six million translates into $5,333 a month at ZERO interest over 25 years… I fell for it didn’t I?

#52 PatienceIsAVirtue on 02.25.12 at 12:42 am

Too many from each side trash talking the other…

“Illusory superiority is a cognitive bias that causes people to overestimate their positive qualities and abilities and to underestimate their negative qualities, relative to others.”

“In a survey of faculty at the University of Nebraska, 68% rated themselves in the top 25% for teaching ability.”

“87% of MBA students at Stanford University rated their academic performance as above the median.”

“Findings of illusory superiority in research have also explained phenomena such as the large amount of stock market trading (as each trader thinks they are the best, and most likely to succeed).”

http://en.wikipedia.org/wiki/Illusory_superiority

#53 Al on 02.25.12 at 12:46 am

While I think you’re correct in you’re correct in saying that real estate has to tank it’s worth noting that the entire world of international finance is grotesquely over-valued and is likewise due for a severe correction.

#54 a prairie dawg on 02.25.12 at 1:00 am

The GST story I mentioned above:

http://ca.news.yahoo.com/mission-improbable-economists-want-ottawa-put-sales-tax-173348031.html

#55 Red on 02.25.12 at 1:02 am

I had an interesting experience at the bank yesterday. I went in to make sure they had my correct address to send out the receipt for my RRSP contributions (direct withdrawl from my account every pay day) and top up my contributions. I got into a discussion about RRSP options with TNMATB when the gentleman recommended I NOT lock into one of the long term escalating rate GIC type RRSPs they usually try to throw at me. His words: “rates are not great and by this time next year we should be able to offer you something better”. Excuse me? that sounded like a prediction of interest rates rising to me…

When I mentioned being an investing beginner but interested in TFSA’s and wanting to hold ETFs & pref shares in my TFSA he didn’t give me the usual blank stare/fake smile and tell me I must mean mutual funds or GICs and then try to sell me mutual funds by telling me “all the rich Chinese and Italians put tons of money in these” (not kidding, that was my experience with the DUMB ASS lady at the bank a few months ago). He nodded and said it’s a good strategy and better use than holding GICs in them. I took his card when I left… I may have a new love Garth. If the other 2 mouth breathing mutual fund sellers didn’t still work there, I’d almost like my bank.

Anyhoo, with all the speculation about interest rates I found it interesting that a guy who works at the “bank which shall remain nameless but whose initials are …” as per Garth’s description, is calling for a rise before next year.

#56 Jane on 02.25.12 at 1:02 am

#26 Stasis on 02.24.12 at 10:52 pm

[10% decline in RE prices is] small enough that just a few years’ price stagnation would be enough to wipe it out, since incomes are constantly rising.

I guess you missed the BC provincial gov’ts net zero mandate for BC teachers nd 17 other recently signed contracts. Wages here are not going up (unless you’re a politician).

#57 Devore on 02.25.12 at 1:04 am

#21 LJ

The RRSP problem is likely due to two factors; household debt due to homeownership and the TFSA.

That’s ludicrous, unless you have numbers to back that up. Last thing cash strapped people do is put money into TFSA, when banks pump RRSPs and will give loans for people to contribute, and most importantly RRSPs give a tax refund.

#58 Worried realtors on 02.25.12 at 1:23 am

GTA girl #40

Excellent example and great post . Easy driving today from north york all the way to the annex and only one sold sign seen. The ratio seems like one sold for every ten that doesn’t sell. Reality is looking at everyone in the face.

#59 Worried realtors on 02.25.12 at 1:30 am

Shadow RE inventory? Just in my area in a five block radius there is two houses for sale for about a month and yet no for sale signs on the lawn. Any realtors here like to spin/explain? Could thousands of homes be hidden so not to cause a panic? I guess with five homes on the market in the area 7 would make the market look weak? Realtors are in a panic which is why they are here .

#60 earlymidlifecrisis on 02.25.12 at 1:34 am

I agree with Dorthy- a home is more than an investment. I wasn’t in my apt for money, it was a sacred space first and foremost. Having a home was one of the greatest things to ever happen to me in my life. That being said, I’m still grateful I got out at the (fingers xd) right time and made some money on it. (thanks Garth- i hope) But the #1 purpose of the $ is for another home. If i can invest some great, but i need to feel like coming home at the end of the day. My experience of renting in van at this point in time is horrible. No power, no rights, no nothing. Don’t like it here? -maybe you need to find a new place to live. 1st bed bugs and now a landlord with no integrity. Sigh, should have listened to the wise old man who said don’t ever live in the same house as the homeowner. Lesson LEARNED! Still love everything about this blog though. The links and comments are great, learning a lot. Trudging the rentals tmrw again, try to last a while longer.

#61 HDJ on 02.25.12 at 1:35 am

Back in 1980 we purchased a house for $95,000. Within a few years it increased in value to about $200,000. At the time (and like today) it seemed ominous that salaries were not increasing to the same extent. It was becoming obvious how difficult it was for first-time buyers to enter the market. We were worried about the trends and contemplated selling, expecting an inevitable down-turn. Sure enough, a significant correction occurred, but through inaction we missed the opportunity to sell and take our profit. However, prices eventually climbed back out of the trough, and a few years later we sold the same house for about $250,000. Since then we’ve lived in three other houses and a year ago our current one was estimated at being worth about 1.5 million – I suspect the estimate is now down to about 1.2 million. The price of our first house, purchased in 1970, was $27,500, and it’s astounding that in a few decades $27,500 mushroomed into over a million. Moreover, with the exception of some renovation work, the gain was essentially unearned – we were just lucky enough to have been in the right place at the right time. As it turns out, it was not a disadvantage to have ignored ups and downs in the housing market, and being a home-owner has been more profitable and enjoyable than renting. But I’m not sure what I’d do today if young and just leaving the starting gate. However, I would be reading this blog and listening to its suggestions. And yes, we should now sell, but moving would be such a hassle – there’s far too much stuff in the basement and garage. Good luck.

#62 Nostradamus Le Mad Vlad on 02.25.12 at 1:41 am


“Did you own Nortel? I rest my case.” — Perchance, a colleague (when I was in the workforce) bought $6K of Bre-X at the peak. Admittedly, it was a small amount. He lost it a short time later, when someone rolled the curtain back so the invisible elephant could be seen.

“Coming off the GFC, it’s all more extreme.” — As the price of crude keeps motoring in an upward slant, how (in the long term) will this affect commuters? Are they likely to stick to their guns (accelerators), or re-balance their day to use public transit to get to and from work?

“. . . the almost-always fatal belief that recent experience dictates the future.” — To be fair, sheeple are short-sighted, rarely seeing beyond the end of their nostrils. Too bad for them, I guess.
*
Debt Doomsday For TPTB or us? Lloyds Bank Losing money hand over fist, but still generous with bonuses; 3:11 clip A Rothschild speaks, and Obomba wants another five years to destroy the US, but the opposite side of the story is here; Japan Unemployment leads to starvation; Cdn. Finance Good links; Link in NK – US talks. NK is printing US$100 fake bills.

Oil Shock coming; ankrupt Stockton; 10:03 ckip ECRI recession; Swelling Debt; Sovereign Wealth There isn’t enough; High Gas Prices and high housing prices; Chart Inflation adjusted near highs; 7:04 clip Oil going higher until economy stabilizes (who controls the economy?); Sprott Unintended consequences; Sears Not what it seems; Uranium US$200 and beyond, unless it starts running out and thorium picks up speed; Household Formation has slowed; Peak Oil; Fatally Flawed Approach.
*
4:45 clip BPOE, for you. Cascades and possibly the SAF; Russia Preparing itself against US – NATO – UN influx; disciple — FYI; US Candidates What they are for and against (chart); Fukushima Strange press briefings from TEPCO; Immigration Plus all the illegals; Feed The Community, get possible jail time. Ain’t NAmerica a great place to live?!

#63 nonplused on 02.25.12 at 1:41 am

1975 wouldn’t be a 40 year low…. Unless 1972 was lower. However the point is still valid. People weren’t saving in the 70’s because they were being eaten by inflation. Just like now. No, it’s not 2%. Track any price changes outside the CPI and we are getting hit with 5 or 6%, with huge volatility. Up 40% one year, down 30% the next, but always the trend is up.

$14,000 to $1,000,000 in 35 years, eh? Doesn’t look like inflation to me. Looks like a controlled destruction of the currency. A dollar should always be a dollar and then a dollar. Always was when it was an ounce (of silver for those who haven’t been following but probably remember those beautiful coins). Now it’s not even an inch, it’s just a number. And the numbers involved are no longer “astronomical”, they can only be described as “economic”. There aren’t enough stars in the sky for them each to be worth a dollar anymore.

And the numbers are totally out of sense. Does the average family need $70,000.00 units, so p7,000,000 units (in pennies) to describe their annual economic activity? 7 million pennies? For one year? For one family? It has to be that precise? See, something went wrong here. And it happened in 1971. About the same the example started.

Hyperinflation already happened folks. We only have 3% to go now, and it will feel more like collapse.

#64 futureexpatriate on 02.25.12 at 2:03 am

#18 – Your posts and blog is vile. Not funny, vile. And you know it. You’re lucky you’re still here to argue.

And this is from an American!

#65 CoreyMC on 02.25.12 at 2:05 am

There is good advice and now there is just gloating. Garth, why don’t you just take the high road?

Because you have it blocked off with moral outrage. — Garth

#66 earlymidlifecrisis on 02.25.12 at 2:09 am

http://www.padmapper.com/show.php?type=0&id=103305834&src=main

#67 earlymidlifecrisis on 02.25.12 at 2:15 am

Oops that posted itself. Out of that range thank god but just amazing the shitholes people will try to rent out. But its van, and people will take them, fight over them. If/when a correction happens here hope it takes the rents down with it. Hard on a lot of people, but good for most that can barely afford to eat or live in a place that would meet fire code.

#68 Zara on 02.25.12 at 2:23 am

#33 Dorothy
If you would have considered renting
for a few more years the price of your
house would be a lot less expensive and
your monthly payments cheaper. Why
buy high when you can wait a bit and buy
low? Or maybe I’m missing something?

#69 Tim on 02.25.12 at 2:38 am

The bigger takeaway that you fail to mention is that even with a 30% correction, that house will still be $700K…a far greater return than many RRSPs

#70 Tim on 02.25.12 at 2:49 am

Re#35 Surprised? Harper has used bullying, low-blow, tactics to destroy Dion’s credibility, and to destroy Iggy’s credibility. He has to resort to attack ads to win. How can people be stupid enough to vote for him? He pissed away the surplus the Liberals left and now he’s going to make massive cuts to the Feds, one more step in his plan to massively diminish the role of govt in our Country.

#71 BPOE on 02.25.12 at 3:02 am

Solid Solid Solid return. Love to see the FACTS being posted proving why Vancouver is THEE Winner’s Circle of this planet
******************************************
Take this comment published in the Vancouver Sun: “In the past 35 years a 33-foot lot in Vancouver’s West Side has risen in value from $14,000 to over a $1,000,000 ($28,000 per year!) and I’m sure the next 35 years will bring golden returns to lucky owners. I wish my RRSP had done that well!”
See what I mean? What happened in the past three decades will surely be repeated in the next. Those thirty-three feet of naked dirt will soon be worth $7 million!

#72 BPOE on 02.25.12 at 3:06 am

Please post the Americans 40% drop properties. Oh yeah I forget there hasn’t been any and there never will. Onwards and upwards folks
***************************************
vreaa on 02.24.12 at 10:45 pm
Basement Suite In East Vancouver Sells For $590K

http://wp.me/pcq1o-3JB

Can’t make this stuff up.
We just report what happens.

(repost from end of last thread)

#73 penpal on 02.25.12 at 3:09 am

@ # 48 B M L O C

Good call.

Do you think he’s sniffing or mainlining it?

Either way, the glue has got him!

#74 Van guy on 02.25.12 at 3:12 am

#29 Waterloo Resident on 02.24.12 at 11:05 pm

I hope you are kidding. That’s the silliest comment I’ve heard on this blog in a while. If you are so confident, u should stretch out and buy as many homes as possible. And then retire in several years.

Let us know how it goes. Good luck

#75 Devore on 02.25.12 at 4:03 am

Oh, update to the Vancouver basement that sold for $600k, for those who aren’t keeping up on the news (can’t blame you). In case you’re wondering what fool would pay that much for a basement, wonder no more, it was a realtor. Can’t make this stuff up.

#76 Canadians are sooo Adorable! on 02.25.12 at 4:19 am

Garth, “you’re sexy and you know it!” Turner, nothing tears up a family better than an inheritance. You’re going to see familys inherit a house then be forced to sell it to cover the tax. I can’t wait for the hushed confessions at parties about how financially screwed people are.

#77 Laura S. on 02.25.12 at 4:56 am

Garth you are not saying anything new yet you can open eyes to many poor people who think that ownership of a house is a ticket to retirement paradise.
As Are Realtors Responsible for the Crisis? points out, the problem was that homeowners borrowed to the max and the prices started to dive.
I would love to read some post-apocalyptic analysis of one highly indebted family with one asset – house, after the start of the crisis.

#78 Dividend Yield Investor on 02.25.12 at 5:31 am

Amazed – 42

They are simply renter’s with a mortgage, and when the going gets rough and a nasty recession comes along – they will ditch the property. Whether it is a recourse or non-recourse, they will not care.

Dividend Yield Investor
Atlanta G.A.

#79 Ya, Smoking Man, Sober Up. on 02.25.12 at 5:33 am

Smoking got deleted, not once, but twice? Damn! He must have said something really bad. Hey Smoking Man! Get lost with your traditonal schooling = slavery gibberish and take your stories about your loose wife, stupid kids and trips to the casino with you.

#80 House on 02.25.12 at 7:01 am

Sold my Nortel in June of 1999. Sorry.

#81 I'm stupid on 02.25.12 at 8:06 am

Off topic but what could you do if you were the guy sitting on the plane next to the guy in the picture? Would someone that big have to pay for 2 seats?

#82 Steven Rowlandson on 02.25.12 at 8:55 am

Is a house the best retirement strategy? Better hope so. Or millions of us are screwed.

For millions of home owners not to be screwed those earning $10.25 to 15 bucks an hour need a 500% raise in pay to buy those houses providing prices don’t go up.
If this happens employers are screwed and due to companies going under or escaping to china the employees will be screwed.
One way or another some one will be financially screwed.
Hell of a situation isn’t it?

#83 james walker on 02.25.12 at 9:08 am

interest rates are not going up any time soon. here is why. bernakie says no change till 2014 then most likely small increases if at all. second with the increased value of the canadian dollar canada can not aford to raise interest rates it would push our dollar even higher reducing canada’s competetivness with the US plus the americans are lowering ther corporate tax structure which will make it touger on canadian firms to compete as the closure of catapilar plant in london ontario this week. shows the productivity in canada is not what it should be. so this is why i beleive interest rates are down for the forseeable future. this also helps to support the blowted prices of housing in Canada. which the government does not want to up set.

You are wrong on both counts. US rates are low to encourage borrowing. We have the opposite problem. And the dollar rises and falls more with commodity values than monetary policy. They’re going up. — Garth

#84 eddy on 02.25.12 at 9:44 am

re waterloo resident, in the past 30 years TO 416 prices have increased by 10X, a 50K house is now about 500,000.K

that’s the ‘big picture’ . that’s using a calander instead of a stop watch

in 2042 the same house should be 5 million

come on people, real estate isn’t going up in value, our currency is being devalued

#85 Herb on 02.25.12 at 9:45 am

“Housing bubble or prudent investment?”

asks the headline on the first page of the Business Section of to-day’s Ottawa Citizen. Your Mission Impossible, should you wish to accept it, is to find the pea in the statistical shellgame of this article.

http://www.ottawacitizen.com/business/Housing+bubble+prudent+investment/6206935/story.html

The author is quite challenged. — Garth

#86 Smoking Man on 02.25.12 at 10:09 am

#31 Carpe Diem on 02.24.12 at 11:08 pm
Bonds allways tell you what the billionares are thinking of the future.

Equities are now run by robots, note mostly banks and hedge funds in that game. Retail is for the most part on the sidelines.

Way to go for your son..

#87 Smoking Man on 02.25.12 at 10:12 am

78 Ya, Smoking Man, Sober Up. on 02.25.12 at 5:33 am

Every super hero (gath) needs a vilan.

I am quite happy to fill that role.

How do you type a joker laugh.

Ohahaahheeeehaaoooooooo

#88 T.O. Bubble Boy on 02.25.12 at 10:44 am

http://www.theglobeandmail.com/globe-investor/personal-finance/financial-facelift/building-a-foundation-for-long-term-dreams/article2349504/singlepage/#articlecontent

Couple, 28 years old, in Vancouver
Net Worth: under $45,000 total between them
Annual Income: about $85,000 gross

This “financial planning” article debates whether they should buy a $800,000 (12x income) house or a $600,000 (9x income) house!

this will not end well

#89 mikling on 02.25.12 at 10:55 am

Interesting that sheeple sees increasing real estate prices as positive signs. In this global economy it is the worst thing as that eventually filters to increased input costs one way or another making the sheeples’ jobs at risk. Yet these sheeples are so happy when real estate increases.
They are going to get the shock of their life in due time.

#90 Habbit on 02.25.12 at 11:14 am

Another great post Garth. Thanks. RRSP TFSA Capital Gains. We know the government can change the rules on any of these at any time. Since many people are saving so little for retirement and most have no pension plan it is probable at current levels that many will not expereince OAS clawback. We have to make decisions based on the math at the time we are doing it and recalculate to perhaps reallocate when rules do change. We need tools. A financial calculator for about fifty bucks is helpful. If you have a FP they can help here too. What I am saying is we need to know with a high degree of certainty how the #’s racket works to make informed decisions. Like knowing what our total investment costs are. If we put 10K into RRSP and are in 40% tax bracket our refund would be 4K assuming the entire 10K contributed is at our marginal rate. Take the 4K refund and contribute it as well triggering another 1,600 refund. Take the 1,600 and do the same another 640.00. Now we have 16,240.00. Once we have an accurate estimate of our marginal rate at withdrawal time we can then factor the pro’s and con’s of other options. Our time horizon and expected growth rates should be factored as well. The best place to invest our $ is the best place for us. Seems simple.

Thanks all.

#91 Q on 02.25.12 at 11:20 am

Not to worry, as I understand that Remax is giving away 10 BRE X shares with the purchase of any cardboard home in new GTA subdivisions….to instill confidence. Should be interesting when the feds decide to tax any profit made when you sell your principle residence….you don’t think the piggies would miss the party they started, do you? Then they’ll reintroduce death taxes, all while your re assesed cookie box is worth half what you paid and your mill rate is soaring.

#92 Daisy Mae on 02.25.12 at 11:31 am

#57 A PRAIRIE DAWG: “PS, did anyone catch that article today about how much Canada is “losing out” on revenue by not adding GST to food sales?”

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

Yes….just keep raising the cost of utilities, income/property/sales taxes, fuel, food — chipping away at what little we have left at the end of the month — and there go retail sales for electronics, cars, clothing, restaurant meals, movies.

#93 Sticky on 02.25.12 at 11:33 am

#29 Waterloo Resident

“That $400,000 house you saw 3 years ago is now selling for $800,000. Soon (in 4 years) it will be selling for $1.2 Million. Then, in another 6 years it will be selling for $2 Million”

>> HAHAHA! Good one.

#94 The American on 02.25.12 at 11:36 am

At 72: BPOE, shall I begin with many condo developments in downtown Vancouver, including the Fairmont Residences? They slashed prices on all remaining inventory by 40% over a year ago. However, that was not the real compression of market value to come. Vancouver is over. So last decade. Nobody is buying there now – NOBODY. Look at your most recent statistics, and you’ll see that ALL areas of Vancouver metro are selling less than 10% of existing inventory as a combined market. Combine that with significant trending increases in your inventory, while sales are plumeting, and you’re clearly screwed. Hell, and you’re only getting started. The perfect storm, per se, is now queued.

This “youngster” is clearly more seasoned than a snake oil salesman like you. The main reason is, unlike yourself, I’ve lived through it for nearly five years now. Nobody in Canada is going to truly understand until you’ve lived it day in and day out. Those of us who are living through it have LEARNED from it and the signs to watch for that are crystal clear and staring Canada in the face today. The problem is that the signs looking right at you are NOT the warning signs. Those days are history and Canada blew that. The signs now is it is obviously too late. You won’t understand it for at leat a couple years.

Throw in the fact that Canadian banks are under the microscope, warnings of gross Canadian consumption while everyone is using their home like a piggy bank, Canadian dollar at par and your economy collapse is just beginning, Canadian jobs returning back to the U.S., and the wort one of all… Denial.

Stop trying to confuse people, because it isn’t working here. Anyone can find a straggler or two in his/her own market that was out of the norm, much like the idiot who bought the daylight basement in east van. The reason that made “news” is because it is so absurd – it isnt the norm or trend. As I’ve been saying, the 40% PLUS collapse in prices is going to take years… Not a couple days like some idiot like yourself would want to make everyone believe. Shoo fly.

BPOE, you’re really so stupid that you’re value on this blog is merely to show those that when specifically you write something, we all then know the exact opposite is true. It’s like everything in your tiny little world is running in Opposite Day. You’re an incredibly sad “person.”

#95 Sticky on 02.25.12 at 11:54 am

#69 Tim

You (and the Vancouver Sun) are comparing only purchase price and sales price to calculate return…add in 35 years of property taxes, insurance, repairs, and commissions…that total is not trivial.

#96 Canadian Watchdog on 02.25.12 at 12:14 pm

You are wrong on both counts. US rates are low to encourage borrowing. We have the opposite problem. And the dollar rises and falls more with commodity values than monetary policy. They’re going up. — Garth

Not anymore Garth. Carney is waiting with a baseball bat ready to smash the CAN into pesos. Read BoC monetary papers—it’s no mystery.

CAN/CRUDE http://i42.tinypic.com/349b1gl.png

#97 Smoking Man on 02.25.12 at 12:14 pm

#83 james walker on 02.25.12 at 9:08 am

Re interest rates, Garth will strongly object to this.

They claim the BOC Up’s rates when we have inflation.
But they don’t consider prices of things as they try and make you beilive.

They raise and lower rates based on The size of the labout pool, If unemployment goes down, rates go up, more folks out of work rates go down.

With out massive job gains, or the USA spiking rates. You are correct, theyaint going up.

We might see a small spike to scare some invetory on the market. But Carneys coconuts are tied right now.

#98 TurnerNation on 02.25.12 at 12:19 pm

Low RRSP contribs – one of two reasons:

– No investable assets. Even the lowly GIC may be moved into an RRSP.

– Need the money’s use now, unable to postpone until one is an Oldster.

The low sub-inflationary Orange Guy’s Shorts rates, coupled with the Cons’ retirement age raising, ensures a longer and more steady supply of working tax farm salves.

p.s. disciple why not start your own weblog (link to it in your name, like SM’s).

#99 CrowdedElevatorfartz on 02.25.12 at 12:20 pm

To #87 Smoking Man

“……..How do you type a joker laugh.

Ohahaahheeeehaaoooooooo……”

Hilarious!

Now get back to rolling the ganja……..

#100 I'm stupid on 02.25.12 at 12:24 pm

Sorry

I would like to suggest removing Waterloo resident from the site. The reason is that he is posting comments that make absolutely no sense only to draw responses. They are useless comments that add no value.

Agreed. Don’t feed the trolls. — Garth

#101 CrowdedElevatorfartz on 02.25.12 at 12:26 pm

@ #94 The American.

I’m in total agreement.
I moved to Van in 1981. The bottom FELL out of the real estate market that year. Houses went from 240k to 100k in 12 months. Took 6 years to crawl back. But most people like BPOE are either too young to remember or in complete denial( its different this time).
Not to worry. Garth ,and you, are being proven correct each day as the “mortgage time bomb” winds down.

#102 };-) aka DA on 02.25.12 at 12:28 pm

#59Worried realtors on 02.25.12 at 1:30 am

Shadow RE inventory? Just in my area in a five block radius there is two houses for sale for about a month and yet no for sale signs on the lawn. Any realtors here like to spin/explain? Could thousands of homes be hidden so not to cause a panic? I guess with five homes on the market in the area 7 would make the market look weak? Realtors are in a panic which is why they are here .

As Thomas Edison said; “If a man will devote his time to securing facts in an impartial, objective way, his worries will usually evaporate in the light of knowledge.”

But what do most of us do? If we bother with facts at all – an Thomas Edison said in all seriousness “ There is no expedient to which a man will not resort to avoid the labour of thinking” – if we bother with facts at all, we hunt like bird dogs after the facts that bolster up what we already think – and ignore all the others! We want only the facts that justify our acts – the facts that fit in conveniently with our wishful thinking and justify our preconceived prejudices!

As Andre Maurois put it: “Everything that is in agreement with our personal desires seems true. Everything that is not puts us into a rage.”

– Dale Carnegie

I suggest you spend some time exploring the facts rather than looking through the narrow keyhole of your mind at only the preconceived notions you have on the matter.

99% of the comments posted on this blog arise from the concerns of would be buyers and sellers not agents. Agents as I keep repeating could care less whether inventory levels and subsequently prices are up or down. That is YOUR concern not ours. We deal in TODAY. Most here tend to deal in the past or the future, consequently they are never quite satisfied as the past is done and the future unknown.

#103 Abitibi Doug on 02.25.12 at 12:37 pm

In reading this post, I get the impression most people have far more ambition and better work ethics than a lazy bum like me. Why? the first reason is if I had a house that appreciated greatly in value (read, Toronto or Vancouver) I would sell and take my tax free profits. That’s especially important for an older guy like me, 51 years old, who should be gearing up for retirement. The second reason is if I were in the market and looking to buy, it would be insane to put so much money (and thus life energy) into a purchase when there are far better places to put your money. During the last 6 months there have been good stock and fund buying opportunities. Oh and for the record, I am avoiding gold. There are better deals to be had in uranium and natural gas.

#104 Van guy on 02.25.12 at 12:38 pm

BPOE,

This site is perfect for a bull like you. Everyone will agree with your silliness here.

http://realestatetalks.com/viewforum.php?f=8

#105 TurnerNation on 02.25.12 at 12:56 pm

If I hear one more report of profligate spenders hanging on by a gossamer thread….

Caught part of a Property Versions episode – 30s Toronto couple with 100k DP and pre approved for 800k!! As today’s article says it: gut wretching leverage.

In the futures markets you have initial, and maintainence margin levels your must fund. Positions are marked to market daily. Houses not so.

The next “mark to market” will come with Blog Dog Carney’s raising of rates.

p.s. Harper works for the Queen (that inbred Germanic family). He will be rewarded for extracting more production from the colonies. Is there a peerage down the line?
His support for Israel? Never forget, Israel is a British creation – 1948 – their outpost in the area. A few google searchs reveal Israel as a major world hub of drugs, human, and weapons trafficking. Just taking care of the family business! god save the queen?!?

Part of your comment was worth reading. — Garth

#106 Freedom 55 on 02.25.12 at 12:56 pm

My sister just bought a house in Las Vegas, got it for $75,000

http://www.realtor.com/realestateandhomes-detail/7840-Menelaus-Ave_Las-Vegas_NV_89131_M17949-35539

#107 Thor on 02.25.12 at 1:17 pm

Awesome! This reminds me of following Ben Jones’s “The Housing Bubble Blog” Circa 2006.

The amount of comments here now, the same arguments coming from both sides and we appear to be at the same elevated level in Canada now before the big crash down there. My favorite comment back then was……….

“Got popcorn?”

Lovin’ it!

Canada, We have arrived!

#108 Doug in Victoria on 02.25.12 at 1:19 pm

If anyone is looking for Canadian Financial Calculators

http://www.cchwebsites.com/content/calculators/indexcanadian.html

#109 eaglebay - Parksville on 02.25.12 at 1:32 pm

#92 Daisy Mae on 02.25.12 at 11:31 am
#57 A PRAIRIE DAWG: “PS, did anyone catch that article today about how much Canada is “losing out” on revenue by not adding GST to food sales?”
———-
Read the article again, it makes more sense than you think. Read the part about the tax credit.
The more you can afford, the more you consume, the more you pay.

#110 Form Man on 02.25.12 at 1:38 pm

There is little doubt that Canadian housing bulls have long kept the notion that if prices could be ‘talked-up’ until the rebound of the U.S. market, Canada would avoid a ‘bubble burst’.
As even Warren Buffett concedes the U.S.market may not rebound for a while yet, it appears the ‘talking’ strategy may not work.
There is the faint realization dawning that perhaps the ancient economic law of supply and demand is relevant after all.

#111 Fabrega on 02.25.12 at 1:44 pm

Garth,

I am looking foward to that Bond 101.
Could you explain interest rates influence in corporates compared with government bonds? I understand that when interest rates rises corporate bonds are not that much impacted. Why will bond prices fall when interest rates go up? If bond prices fall isn’t that a zero sum result since yields will go up?

#112 Fabrega on 02.25.12 at 1:46 pm

I mean interest rate rises…..

#113 Van guy on 02.25.12 at 1:55 pm

#100 I’m stupid on 02.25.12 at 12:24 pm
Sorry

I would like to suggest removing Waterloo resident from the site. The reason is that he is posting comments that make absolutely no sense only to draw responses. They are useless comments that add no value.

Agreed. Don’t feed the trolls. — Garth
_________________________________________

I agree. Same thing for BPOE. Their comments make no sense and they are only here to disturb the blog dogs. But if they are banned, they will come back with a different name.

#114 T.O. Bubble Boy on 02.25.12 at 2:00 pm

Average House Price in Canada for January 2012 is $348,000

Which of these appear the most “average” to you?
(searching the GTA between $325k-$350k)

A) $329k toyhouse-sized bungalow

B) $349k rowhouse (read: rooming house) next to Moss Park in downtown Toronto, that apparently rents for $2400/month (uh huh), and can be used to “Rebuild Your Dream Home” (because now it’s possible to rebuild an attached rowhouse without knocking down the neighbours’ places)

or

C) $349k house(?) that notes “No Retrofit Status Warranted”, is next to the train tracks, and says “Shows Very Well!” yet has no interior photos.

I’d hate to see “below average” Canadian homes.

#115 TheSide on 02.25.12 at 2:06 pm

Garth,

With rates expected to rise in the future, what is one to do 50% cash in a portfolio for yield (just sold investments to book profits). Preferreds shares have already have had a huge run up and I’m already invested in REITs.

Thanks

Don’t DIY. — Garth

#116 Junius on 02.25.12 at 2:16 pm

Disciple,

You made a post on the previous blog that complained about my complaint regarding your post on Prince Philip and his child smuggling.

I am in favour of free speech and I know Garth is as well. Ultimately we are all subject to his rules and conditions as he is our host.

I have been posting regularly on this blog for nearly 3 years. I believe the main subject has always been household finance in the broadest sense with an emphasis on housing and the current housing bubble.

Broadly defined this does include economics, politics and a host of other subjects that are either directly or indirectly related to the core topics. Again, Garth gets to define these parameters.

The problem that I have with so many of your posts is not just that they are unrelated to the core topic but they make wild accusations and contain theories very hard to accept. What are we supposed to do with a post where you claim the royal family traffics in children for the purpose of prostitution? To let it stand leaves it unchallenged. However who has the time and energy to look into the matter in order to refute it?

A great US Supreme Court Judge (when there was such a thing) Oliver Wendell Holmes once said famously that the right to free speech does not include yelling fire in a crowded theatre. I believe on a blog like this is also means not posting inane and bizarre theories that have nothing or little to do with the core issues people are discussing. Again, this is up to Garth. However I think there are lots of conspiracy blogs out there in the world and I am sure people would appreciate you spending more time there with your own kind then polluting this blog.

Well put. — Garth

#117 Junius on 02.25.12 at 2:22 pm

#94 The American,

Sadly, you are 100% correct. Vancouver is clearly in trouble. The signs are everywhere.

Your comment on the microscope being given to Canada is really important. We have seen more and more international economic commentators discussing the fact that it is not different here. We now see the Canadian politicians laying the foundation for the changes that are coming.

The end is not near. The end is here.

#118 TRT on 02.25.12 at 2:30 pm

Went to a get together last night,
bunch of recent immigrant (Indian) homeowners…

No one out of the five guys knew the terms CMHC, bond yields and bank spreads, demographics, etc. I thought WOW! enough said.

what was PASSIONATELYsaid by one of the guys is that Surrey RE is going to be measured in inches in 10 years as opposed to feet as is the accepted method for lot measurement. They all agreed. I agreed with them not to break their smugness.

Once the tide turns, look out. Final year before next federal election if polls look bad for the cons??

#119 Al on 02.25.12 at 2:33 pm

Canadian Taxpayers are not only on the hook for CMHC’s orgy of financing but are also being asked to send money to prop up the Eurozone’s Stability Fund today ! We should be hopping mad !

#120 Junius on 02.25.12 at 2:35 pm

Interesting article on why the rich love the UK. The answer relates to how the UK treats them for tax purposes and how this differs from the US, Canada etc.

For all of those who think an endless number of Chinese or South Asian millionaires will stream to Canada you may want to think again:

http://www.guardian.co.uk/society/2012/feb/24/why-super-rich-love-uk

#121 maxx on 02.25.12 at 2:56 pm

#24 Preciousss on 02.24.12 at 10:49 pm

I contend that there is less REAL income to dedicate towards an RRSP. Stagnant wages coupled with rising rent, mortgage, taxation, fees and inflation.

Agree…and let’s add to that the news reports yesterday citing government-commissioned studies to scope out the creation of ever new taxes: http://www.cbc.ca/news/business/story/2012/02/…/gst-
food-economists.htm…

Perhaps TPTB should add fresh air to the list…or tax the healthy as they will live longer.

#122 45north on 02.25.12 at 3:20 pm

carpe diem: my kid stood up to some bullies (that the principal says don’t exist) and used his karate to protect some girls.

good for him! boys are more fidgety than girls. The discipline and demands of Karaté are obvious and visible – punch, block, kata. Kids recognize and react well to obvious discipline. The school system today is more about measuring discipline than instilling it.

#123 Canadian Watchdog on 02.25.12 at 3:26 pm

Here’s your non-manipulated TREB stats…

TREB Toronto C.E.W Detached Home Sales http://i43.tinypic.com/2nun7ly.png

TREB Toronto C.E.W. Condo Apartment Sales http://i42.tinypic.com/140ygef.png

Only areas jacking up detached prices are Mount Pleasant, Bridal Path, Willowdale and Rosedale. The others are starting to struggle.

#124 Amazed on 02.25.12 at 3:29 pm

Had lunch with a friend. She has lots of kids, no rrsp no resp…. No savings. She tells me she is buying a commercial property 600000. Taking a line of credit. All she knows is that it is leased out… Doesn’t know any of the costs involved other then that she will take a line of credit out. After all real estate is the best investment. I’m sitting there thinking are you sure you want to do this? More and more amazed daily….. Everyone wants property and no one researched anything before they jumped in. I guess some will get lucky and others will lose their shirts. I will continue to be amazed daily… I think things are going to tank sooner then later. A ton of commercial properties are sitting empty for rent or sale… And these greater fools are buying. Houses seemed to expensive so they decided to go for commercial property, hopefully their family bails them out. :)

#125 BPOE on 02.25.12 at 3:42 pm

I have a confession to make. I am a 27 year old realtor transvestite prostitute, abducted by aliens, forced to go on a weight loss program. I love lying to people and whoring

DELETED

#126 maxx on 02.25.12 at 3:53 pm

#42 Amazed on 02.24.12 at 11:58 pm

“People talk about a million dollars as if it’s nothing.”

That’s because it’s all talk. They don’t HAVE a million dollars. You, on the other hand, are so smart and wiser than you may know. Down the road a bit, YOU will have the option as to what to do with the time in your life, because you will HAVE a million, very likely more. People with no net equity don’t have a clue.
When the sun comes up on the day you gain full control of your time, it will be a feeling the likes of which only few get to experience- you’ll be one of them. Brilliant job! Save your little buns off and keep it safe, safe, safe.

#127 45north on 02.25.12 at 4:11 pm

Amazed: Had lunch with a friend. She has lots of kids. She tells me she is buying a commercial property 600000. Taking a line of credit.

me too, I’m amazed

#128 Worried realtors on 02.25.12 at 4:14 pm

Amazed #124

It’s crazy how nothing is cash flow positive in the GTA. I am starting to wonder if anything is cash flow positive in Canada. Housing/ commercial properties are out of touch with economic reality. Why/how can anyone buy when the numbers tell you it will be a losing venture? With the amount of empty Condos, homes and commercial properties the risk is that much greater. Imagine a highly leveraged investment that loses money? No wonder realtors refuse to discuss the numbers and facts. Housing in Canada will continue to crash.

#129 John G. Young on 02.25.12 at 4:15 pm

Some RE pumpers on this blog deign to advise us: Forget about the past. Don’t worry about the future. A little self-serving perhaps?
Then they try to prop up their toxic message by adding aphorisms from wise people who must surely be spinning in their graves to see their quotes used for such vile purpose.
Talk about weensie.

#130 McExpat on 02.25.12 at 4:20 pm

Maxx and Amazed it is soo true. Show me someone with liquid million and I will be slightly impressed. But the baseball cap wearing, tattoo sporting, 4×4 driving guy with his own pop up reno biz and no equity in his granite mcmansion is not smart and there are tooooo many of them in canada in now.
Stay true to your own values, stay the course and know that this will all evolve in due time. Those who are financially literate will do just fine, unfortunately this is a small percentage of the population now. Uggghh

#131 TurnerNation on 02.25.12 at 4:46 pm

#20jess on 02.24.12 at 10:40 pm

As I say, they are economically bombing us back to the stone age (while the 2nd, 3rd world countries get real bombs).

Only the rich may afford 24/7 hydro, siin. Soviet bloc-style, we will huddle around candles. There’s a war on don’t you know. And we are its targets.

“”Two Facebook groups set up against the growing tariffs have attracted over 7,000 members, and are filled with expats and locals alike sharing stories of how they have been forced to stop using virtually all their appliances to avoid going into the red. “”

#132 BPOE on 02.25.12 at 4:55 pm

I love lying to everyone, including house horny buyers. What can I say? I lust for money, houses, cars, and recognition. Why? Because I have none of those things. I will lie to you and cheat you out of your money. I actually don’t like living in Vancouver and Richmond. It is a hell hole of rain, traffic, no economy, no diversity, no infrastructure, and no arts or entertainment. We do have mountains though.

#133 BPOE on 02.25.12 at 5:02 pm

Oh, I almost forgot. We also have crazy high rates of poverty, rampant drug usage, property crime, and an ever increasing problem with guns and weapons. Isn’t it awesome here in Guncouver!

#134 Habbit on 02.25.12 at 5:09 pm

#108 Doug in Victoria Thanks

#135 The Thing in the Basement on 02.25.12 at 5:17 pm

118 TRT

“Surrey RE is going to be measured in inches in 10 years
as opposed to feet as is the accepted method for lot
measurement.”

All property in BC has been measured in metric since the late 70s. Or do you mean the land will become so valuable that we’ll only be able to afford tiny pieces?

#136 a prairie dawg on 02.25.12 at 5:18 pm

#119 Al
Canadian Taxpayers are not only on the hook for CMHC’s orgy of financing but are also being asked to send money to prop up the Eurozone’s Stability Fund today ! We should be hopping mad !

– — –

“I’m as mad as hell”
http://www.youtube.com/watch?v=WINDtlPXmmE

#137 TurnerNation on 02.25.12 at 5:25 pm

40GTA Girl on 02.24.12 at 11:55 pm

As many people lined up for their big pharma money shot when told of an “H1N1 pandemic”. Works every time it’s used! Our rulers know this.

How about: “We know he has WMD”. Every single aspect of human behaviour and reaction is already known and measured. From the legitimates studies, the valuable info gleaned from gulag, concentration camp experiments, and all the missing people snatched off the streets. And from willing/unwilling 3rd World medical research experiements.

EVERYTHING is known about our behavior – it’s just a matter of plugging into a computer simulation the inputs, and measuing the outputs – on a grand worldwide scale. Tweak rates here, increase militarism 10%, flood media with 20% more violent stories. Up the pill dosage there. Holding 4 elections wihin 5 years (hellooo Canada) until the desired outcome is achieved. Robo callers. You get the idea.

As I posted here, the game is well known and played out:

http://www.greaterfool.ca/2012/02/03/wrinklenomics/#comment-149380

“”#26TurnerNation on 02.03.12 at 10:44 pm
It’s a game for the elites. Pure sport. Team A against B.

Do you recall the scene from that 80′s movie where two fat cats made a gentlemanly bet of $1 they would ruin a working stiff’s life? I forget its title.

We are the enemy this time – Toronto’s CON Mayor Ford’s (aka Boss Hog) henchman’s words:

-A lot of people have the impression you ran a dirty campaign. What’s your reaction to that?
” The fact of the matter is, all your downtown champagne-sipping socialists can’t understand how some kid from Windsor came in and kicked the shit out of them. It happened. They should get over it.”

http://www.torontolife.com/daily/informer/from-print-edition-informer/2011/11/16/the-qa-nick-kouvalis/

There you have it. We lose this round. Buzzzz. What fun.””

#138 West Side Survivor on 02.25.12 at 5:29 pm

Listening to the radio today…
Ozzie Jurrock telling people that sales on the west side are solid, and the average time from list to sold is 11 days!?!?
I still see lots sold signs here in Dunbar/Point Grey.
A friend of mine bid on a house listed @ 1.7MM this week. The realtor listed it at below property value in order to get a bidding war. They got a bidding war indeed and it went for over 2MM. Now they can say “the market is hot! get in while you can”.
It’s crazy. And all I hear from my friends is “aren’t you scared you won’t get back in?” .
I sold last spring and am completely liquid now (and renting)
I can wait….

#139 TurnerNation on 02.25.12 at 5:37 pm

Weekend offtopic for Smoking Man (and his detractors). This is trule scary. I hope he sues. Arrested and stripped, with no evidence.

http://www.thestar.com/news/canada/article/1136659–kitchener-dad-arrested-at-school-after-daughter-draws-picture-of-gun

#140 bubble head on 02.25.12 at 5:55 pm

if a hike in interest rates were to pop the bubble and leave some Canadians in financial peril, would he not be forced to lower the interest (again) like the Americans did and now the Australians? What would be the point?

#141 DonDWest on 02.25.12 at 5:56 pm

#41

“And why do people feel safer with houses? because there aren’t some scumbag floor traders and corrupt CEOs messing around with the price every day, shorting it, leveraging it, day trading it or leaving it to front run on HFT machines.”

I understand your point with RRSP; they’re tax bombs. People will get slaughtered once the baby boomers start to retire en masse 5-15 years from now.

However, your reasoning that real estate isn’t a corrupt investment is the most far fetched theory I have ever had the pleasure of reading. Real estate is by far the most corrupt industry/investment I have ever seen in my life. More corrupt than the tech bubble, which in hindsight was just people who innocently got excited over the Internet and founded companies with faulty business models (forget they actually need a product).

Politicians have their hands dirty in the real estate market, as well as those CEO’s. Trust me, the old rich guard who own multiple properties have done more than enough to artifically inflate this market.

#142 Incubus on 02.25.12 at 6:18 pm

Opportunity investment in Montreal. For Handyman only.

http://www.remax-quebec.com/en/inscription/M/8702007.rmx?fromsearch=foreclosed_66503

#143 $$$BPOE$$$ on 02.25.12 at 6:26 pm

ssshhhhhhhhhhhhhh. Don’t present these FACTS. The American says they are anomalies. I guess 11 days average is considered bad times. Let’s continue to keep him in the dark while the rest of us prosper. Ozzy has brought prosperity to millions
*******************************************
West Side Survivor on 02.25.12 at 5:29 pm
Listening to the radio today…
Ozzie Jurrock telling people that sales on the west side are solid, and the average time from list to sold is 11 days!?!?
I still see lots sold signs here in Dunbar/Point Grey.
A friend of mine bid on a house listed @ 1.7MM this week. The realtor listed it at below property value in order to get a bidding war. They got a bidding war indeed and it went for over 2MM. Now they can say “the market is hot! get in while you can”.
It’s crazy. And all I hear from my friends is “aren’t you scared you won’t get back in?” .
I sold last spring and am completely liquid now (and renting)
I can wait….

#144 Sebee on 02.25.12 at 6:29 pm

Garth,

Don’t you think your blog could do without 2/3rds of these comments?

Yes, I wish they could be as on-topic as you. — Garth

#145 live within your means on 02.25.12 at 6:38 pm

#81 I’m stupid on 02.25.12 at 8:06 am
Off topic but what could you do if you were the guy sitting on the plane next to the guy in the picture? Would someone that big have to pay for 2 seats?
………………….

If someone that big I’d ask to be transferred to another seat. Anyone that big should have to pay for 2 seats.

The seats & leg room have been decreasing for many years. When we travel to Europe we ‘up’ our class. I detest flying now.

#146 Robert James on 02.25.12 at 7:21 pm

#143 $$$BPOE$$$ I wonder how Ozzie`s class action law suit doing,,anyone heard ??? Apparently,, there are some people that are not that happy with Ozzie.. LOL http://classactionozzie.com/

#147 GregW, Oakville on 02.25.12 at 7:24 pm

Hi #62 Nostradamus, FYI anyone, everyone!
Remember knowledge is power.
Here is a link to 4x15min info videos series you need to watch IMO. I wonder what our MP’s & PM families are eating???

Apocalyptic Visions of a GMO Future: Engineered Food Destroying Gut Flora, DNA & Cells
February 24, 2012
“Bombshell warning from Jeffrey M. Smith, the preeminent expert on GMOs, on the growing disaster lab-created foods is posing for animal, human and biosphere life.”
http://www.infowars.com/apocalyptic-visions-of-a-gmo-future-engineered-food-destroying-gut-flora-dna-cells/

#148 Westernman on 02.25.12 at 7:41 pm

Truth Hammer @ #17,
You brought up one of my favorite subjects – parasitic government civil ” servants “…
The only thing one can do is starve the beast – avoid paying ANY unnessary taxes ( note to socialists Form Man and Herbie ) AVOID not EVADE.
The Liberal ( Socialist ) tax monster is out-of-control in third world Canada…

#149 Westernman on 02.25.12 at 7:44 pm

Waterloo Resident @ # 29,
You are jokong, right? I have to assume ( for your own sake ) that was an attempt at sarcastic humour…

#150 dddd on 02.25.12 at 7:56 pm

Up , up and away ……………..vancouver seems unstoppable

new RECORD for east van – asking 939k for a tear down – walked by the openhse today – take the house out and LOT VALUE is 960!!!!

http://www.realtor.ca/propertyDetails.aspx?propertyId=11596181&PidKey=184326521

also a new record 825K each for the new duplexes next door!

everything sells really fast round here
lots of new , beautiful homes going up – huge number of new restaurants on the drive – it’s really hopping since i left for mexico in the fall – but there is only one vancouver – and it will never be the same price as anywhere east of burnaby.

#151 };-) aka DA on 02.25.12 at 7:57 pm

#129John G. Young on 02.25.12 at 4:15 pm
Some RE pumpers on this blog deign to advise us: Forget about the past. Don’t worry about the future. A little self-serving perhaps?
Then they try to prop up their toxic message by adding aphorisms from wise people who must surely be spinning in their graves to see their quotes used for such vile purpose.
Talk about weensie.

Yes, the gall of some people. };-)

But hang on a minute 6’4” Tall John G, maybe you should read this quote once again…

As Thomas Edison said; “If a man will devote his time to securing facts in an impartial, objective way, his worries will usually evaporate in the light of knowledge.”

But what do most of us do? If we bother with facts at all – an Thomas Edison said in all seriousness “ There is no expedient to which a man will not resort to avoid the labour of thinking” – if we bother with facts at all, we hunt like bird dogs after the facts that bolster up what we already think – and ignore all the others! We want only the facts that justify our acts – the facts that fit in conveniently with our wishful thinking and justify our preconceived prejudices!

As Andre Maurois put it: “Everything that is in agreement with our personal desires seems true. Everything that is not puts us into a rage.” – Dale Carnegie

Now step back and think. Really, give it some thought. I tell you this with the most sincere of intentions re-read that excerpt and give it some thought.

“Day tight compartments” John G.

#152 GregW, Oakville on 02.25.12 at 8:09 pm

Hi Nostra, High house hold debt, increasing interest rates and now higher gas/oil prices can’t be good for the average family trying to make end meet!
Maybe the PM should be looking at building a pipe line from Canada’s oil sands to the oil refineries in Eastern Canada too?

Here’s a link to a 5min PressTV comment/option about this comment reportedly made by the USA President.
Part of the option is the USA economic recovery is energy lead not manufacturing lead…
A true recover is not taking place and the strategic oil reserves being used will need to be replace…
(I guess someone will making money as oil prices rise?)

‘Obama blames economic woes over tensions with Iran’
http://www.presstv.ir/detail/228530.html

#153 Pound Puppy on 02.25.12 at 8:28 pm

“The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities — that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future — will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.”

-Warren Buffet

#154 TurnerNation on 02.25.12 at 8:38 pm

Well, Garth, I’m guessing that sitting MPs must swear
allegiance to the Crown. I doubt its reciprocity.

#155 Daisy Mae on 02.25.12 at 8:49 pm

#109 EAGLEBAY: “Read the part about the tax credit.”

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

Government ‘tax credits’ are a joke….

#156 Daisy Mae on 02.25.12 at 8:51 pm

#109 EAGLEBAY: “The more you can afford, the more you consume, the more you pay.”

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

Bottom line? INCREASED taxation.

#157 Daisy Mae on 02.25.12 at 8:56 pm

#113 VAN GUY: “I agree. Same thing for BPOE. Their comments make no sense and they are only here to disturb the blog dogs. But if they are banned, they will come back with a different name.”

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

Garth can ferret out that kind of deception…so easy!

#158 Cato on 02.25.12 at 8:56 pm

At this point I’d be feeling better if those in my social circles were at least viewing their homes as a retirement strategy. They are not only avoiding saving for retirement they are cashing out what little equity they have to live it up. You would not believe how many people think they can work a desk job into their 80’s, its pure fantasy of course but its how many rationalize completely juvenile choices. Its like trying to discuss finance with a 6 year old.

This is classic group think stupidity. Everyone else is doing it so it must be ok. Social safety nets cease to function if there are too many idiots climbing into the boat expecting a free ride. At the moment we’ve got far too many idiots in the population who think the welfare state is a viable retirement strategy for anyone who wants it. Maybe seeing what Europe is about to go through will scare enough of them out of apathy, then again maybe its too late.

Makes for a difficult choice for the prudent. Why spend your best earnings years paying into a social program you have no hope of ever benefiting from. Why stick around to support your peers who simply lived a life of excess and now expect a free ride at your expense and will rob opportunity from your children. I’m all for helping those who were a victim of unfortunate circumstance, some have valid reasons for not saving but the majority are fools I have no sympathy for. Unfortunately its the fools who are now in the majority. Our democracy lacks many of the protections seen in a republic and that makes our system of gov’t dangerous. Its no different then two wolves and a sheep having a vote on what to have for dinner, I don’t like my chances.

#159 John G. Young on 02.25.12 at 9:08 pm

#151 };-) aka DA

I’m 6’5″, not 6’4″.
Every inch counts — but I’m sure you don’t have to be reminded of that fact.

#160 Daisy Mae on 02.25.12 at 9:30 pm

#145 Live Within Your Means: “The seats & leg room have been decreasing for many years. When we travel to Europe we ‘up’ our class. I detest flying now.”

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

Remember Canada 3000? My 6’5″ son had his knees under his chin for a 3-hour flight. He had an aisle seat but stewardess kept telling him to get his legs back in. When the plane landed he couldn’t even straighten up….

#161 Uh Oh Canada on 02.25.12 at 9:45 pm

Just smacked down 10K for RRSPs at the blue bank. Inquired about a business loan- they said the interest rate is 9%! This is why our economy is tanking! People can get a lower rate on house and consumer purchases than on a business loan. Just received some Amex Credit Card Cheques in the mail @ 1%. I usually shred these but will be using it this time for some fun, heavy equipment.

#162 reality on 02.25.12 at 9:47 pm

A lot of doomers just don’t get it. Vancouver is jokingly seen as the best city in China. Amazing authentic Chinese food in Richmond, cheap freehold land near the ocean in Westside, excellent schools/infrastructure, and strong social safety nets.

There is a million people lined up at our embassies worldwide, and the first thing these people want to do is buy a property upon arrival. This party isn’t ending anytime soon

Care for more Kool-Aid? — Garth

#163 eaglebay - Parksville on 02.25.12 at 10:03 pm

#141 DonDWest on 02.25.12 at 5:56 pm
“I understand your point with RRSP; they’re tax bombs. People will get slaughtered once the baby boomers start to retire en masse 5-15 years from now.”
———-
Canadian baby boomers are starting to retire now.
1,000 baby boomers are retiring every day in Canada, now.
Look at the demographics, Google can help.
In the US, 10,000 boomers are retiring every day.
So far so good.

#164 Pr on 02.25.12 at 10:08 pm

The federal government and the Bank of Canada:This start to look like a team of Shylock. Beware, at one point they will take their money back…and your house!

#165 The Thing in the Basement on 02.25.12 at 10:15 pm

P-Dawg/EagleBay/Daisy Mae – The debate over consumption based taxes is interesting. The advantages I see include:

– increased incentive to earn higher income
– incentive to save
– less effort/money spent deferring income
– harder to hide proceeds of crime (ex Capone)

#166 The BioTech Guy on 02.25.12 at 10:18 pm

Just finished a book which seriously analyzes the causes of US bubble. The bottom line – socialist US government agenda to house the poor. The rest of the system did what it always does. Business did try to maximize profits, minimize risks. Delusional people become more delusional and clueless become more clueless but now with a mortgage.

The book does not discuss Canada but there is nothing I see different here. Striking similarities in fact.

I know a couple well over forty. A truck driver and an office help. They bought a shack in a middle of nowhere sub-sub-suburbean GTA this November. Paid over a milion. Just because they could, rate this low and no one really checked the income. Someone they know bought the house next door for 500K four years ago. They extrapolated from that. No municipal water yet, they now hope to flip in a couple of years.

The trucker now works 24/7 to keep up with payments at current rates. Hardly see him anymore.

Howz that different ?

#167 reality on 02.25.12 at 10:28 pm

A lot of doomers just don’t get it. Vancouver is jokingly seen as the best city in China. Amazing authentic Chinese food in Richmond, cheap freehold land near the ocean in Westside, excellent schools/infrastructure, and strong social safety nets.

There is a million people lined up at our embassies worldwide, and the first thing these people want to do is buy a property upon arrival. This party isn’t ending anytime soon

Care for more Kool-Aid? — Garth

Fact is, my social circle in Vancouver, no one is up to their ears in debt. Actually, my experience suggests most immigrants aren’t debt laden at all. No student debt, lots of cash on hand, and good consumer spending habits. Immigration provides a constant stream of wealth to this country, and we are better for it. (2/3 of our population growth is through immigration). Enjoy the ride!

#168 Rural Rick on 02.25.12 at 10:32 pm

Unexpected cash windfall. Any blog dogs care to tell an aging hippie where to stick it? Be pensioned off in7 years. I was thinking fine wines but my partner is asking for a more practical approach. Sigh

#169 reality on 02.25.12 at 10:32 pm

How long did the Hong Kong influx impact Vancouver? A few years max? How long will the mainland China influx impact Vancouver? A few decades max?

Enjoy the ride Vancouver! And brace yourselves – if property prices do plop 40% like you crazy doomers believe, YVR will be backed up by chartered planes filled with horny mainlanders buying up entire city blocks!

#170 MissPriss on 02.25.12 at 10:33 pm

I started reading this blog a couple years ago because I was shocked and apalled at the credit gluttony happening in real estate. I have for a long time predicted and tried to convey to friends and family the impending crisis and risks facing us. I have been told all sorts of foolishness things:
“it’s different in Canada”
“they’re not making any more land”
“you’re just bitter cause you missed out”
Etc, etc.
At 20 I bought a house for less than 200k and sold that house less than 12 months later for just under 300k.
Even I, in my infinite 21 year old wisdom, knew something was very, very wrong with that picture.
I didnt buy another house because I couldn’t, and still can’t, stomach the prices.
Anyways, I have continued to read this blog, thankful in the knowledge that I’m not only ‘crazy’ out here.
However, as the economy continues to spiral out of control on a global scale, I’m finding myself caring less an less about whether or not Sally and John can afford their mortgage and what that might mean for me on my next real estate purchase price.
Instead, I’m wondering what will happen to all my cash assets that the banks have rehypothecated when it comes time to withdraw.
Just google MF Global. One more sign o our road to collapse.
Scary stuff happening out there right now folks.
Wonder if all those over leveraged home owners will still be proud of themselves or falling for the banks s*%t when the global economy falls in it’s face.
I’m not just angry that I can’t afford a SFH if I ever want to retire…I’m mad that this credit bubble is threatening our very way of life as we know it.
Sorry for the rant, i’m not a conspiracy theorist or anything, just a concerned citizen with a watchful eye on what’s happening around us.
Ppl will try to blame the banks, but the ‘thing’ responsible for this mess we are in is personal greed. The banks just took advantage of it.
Who would have though granite countertops and stainless steel could be so expensive??

#171 DM in C on 02.25.12 at 11:00 pm

#151 };-) aka DA

I’m 6’5″, not 6’4″.
Every inch counts — but I’m sure you don’t have to be reminded of that fact.

+++

I’m sure DA checks every day, is still sad, and comes on here for the negative attention. Hey it’s still attention!

#172 throwstone on 02.25.12 at 11:12 pm

TURNERNATION…WOW…WOW…WOW…

THAT’S NUTS…YOUR RIGHT TRULY SCARY.

It is infuriating to see such incompetent people working in such professions.

I guess thats why cops don’t have many friends outside of work. Their just a bunch of soldiers doing what their told. Incapable of thinking freely.

Arrogant, self-righteous and brain washed.

Anyone ever had a friend and then lose a friend after basic training?….err brain washing by the institution.

The G20 is a great example why a private member’s bill should be introduced to have police wear LARGE NUMBERS LIKE A PRO FOOTBALL JERSEY …not a tiny name badge to identify those abusing power and assaulting people.

This country is going to hell in hurry with the cops being able to pull shit like that.

#173 pjwlk on 02.25.12 at 11:13 pm

#20 jess Expats struggle with high cost of electricity in Cyprus.

According to my OPG buddy, the only thing that’s holding the cost of Ontario’s hydro down are the remaining nuclear facilities which are contractually bound to sell their power for 5 cents per KwHr.

Apparently our government has no plans to renew these facilities or build new ones. I’m told that as a result we can expect our energy costs to almost triple with the closing of the last of the nuclear aging facilities.

#174 eaglebay - Parksville on 02.25.12 at 11:24 pm

#156 Daisy Mae on 02.25.12 at 8:51 pm
“Bottom line? INCREASED taxation.”
———-
Nothing you can do about it.
What would you suggest?
Increase corporate taxes? Increase user fees?
Who do you think pays on the end?

#175 Smoking Man on 02.25.12 at 11:33 pm

Junis you pathetic garth suck up. And I know you. Are my inposter. I’m at the bar at senica casino had a good night for a change.

I’m preposing a summer pink floyed theam cruse where u simple mortals can meet the great sominging man after the cruse we take the total profit and give it to one fn homeless person. First one we find. We get shit faced on crazy diamonds and baboom homeless dude gets a visit from god

#176 Investing on 02.25.12 at 11:56 pm

I prefer equity investing to real estate. The primary reason for this is that the value of a company can be extracted by analyzing at least four or five years of financial statements (to ensure that you look at a company’s results through a business cycle). This should be a starting point for analysis. Then you look at intangible factors such as management history, insider shareholdings, viability of the business etc… On the contrary, with real estate, you don’t know the fundamental value of a property because it’s worth what the next buyer thinks it’s worth. However, if a stock price drops steeply but that company’s fundamentals haven’t changed, you know that the price drop is irrational and you wait and hold until the market realizes the stock’s true value.

Furthermore, you can diversify when investing in equities which is likely a good idea since not all information is known about a particular company. On the contrary, you can’t do this with real estate since most people become leveraged to the hilt to buy only a singe investment property. If there is a downturn in real estate, you’re stuck in an illiquid market filled with fire sales. Usually, this results in leveraged people selling at much less than what they bought for or being foreclosed on. With equities (assuming you’re not margined to the hilt), an individual has the ability to ride out during down-turns because they don’t have any debt to service.

Lastly, with equities, there will normally be ups and downs in stock markets. It happens all the time because the markets are inefficient and human behavior is irrational as people move in herds. However, if you think over the long-term such as 10, 20 or 30 years, stock prices would be expected to go up because companies retained earnings (equity) compounds through profits. The key is to find undervalued companies (or invest in indexes/ETFs if you don’t want to) and hold onto them for the long-term without worrying about daily price fluctuations.

#177 TRT on 02.25.12 at 11:58 pm

#163 eaglesbay…

you said “1000 boomers retiring every day”.

Well, i say “more than 1000 immigrants arriving every day”.

Add it up! still double the people.

however, when “1000 boomers pass on every day” then it’ll be significant.

#178 BC Bring Cash on 02.26.12 at 12:02 am

In the 1970’s long before you were born. Yea right Garth.Your a bit older than that.

A literalist. Awesome. — Garth

#179 Sky on 02.26.12 at 12:05 am

Think you’ll get a different seat when flying next to a land whale? Think again.

Snippet – ” A man flying to Philly was forced to stand for seven hours on a US Airways flight. After the 400-pound man sitting next to him got settled in, there wasn’t enough room for Arthur Berkowitz to get back into his seat.”

“Berkowitz said the flight attendants were “sympathetic” when they realized he’d have to stand, but there was nothing they could do.”

http://www.nbcphiladelphia.com/news/local/Philly-Passenger-Forced-to-Stand-7-Hours-on-Flight-134418433.html

#180 TRT on 02.26.12 at 12:05 am

#135 The Thing….

Yeah, they meant prices are gonna keep rising that an square inch difference in lot size will be worth thousands…the run up over the last decade has made them ‘experts’.

#181 Observer on 02.26.12 at 12:26 am

@MissPriss

Ppl will try to blame the banks, but the ‘thing’ responsible for this mess we are in is personal greed. The banks just took advantage of it.

Money itself is a lesson in supply and demand. Cheap and plentiful means more $$ are accessible to more people. That is a monetary policy stance, brought about by Government, the Central Bank and money markets. It has nothing to do with greed my dear.

#182 Kevin on 02.26.12 at 12:40 am

For those wondering the Bank of Canada household debt numbers are out for Jan 2012.

Household debt is at $1.598 trillion
Mortgage debt is at $1.110 trillion
Consumer debt is at $487 billion.

Year over year mortgage debt growth slowed in Jan 2012 to 6.2%. ( Still higher than inflation, income, and GDP growth)
http://tinyurl.com/7jx29wt

This 6.2% growth is slowest since Feb 2002.
http://tinyurl.com/6tw7xny

#183 MissPriss on 02.26.12 at 12:56 am

#181 Observer:
That’s my point…
Ppl got greedy when it became cheap and plentiful.
Living outside their means because, with interest rates that low “they couldn’t afford not too”and besides, they really ‘just had to have those hardwood floors’ … the banks facilitated those ‘greedy’ dreams coming true and will be blamed for their collapse when ppl can no longer afford to pay for them. If ppl had exercised control over their spending habits these issues wouldn’t exist.
Just because the bank says you can doesn’t mean you should.

#184 MissPriss on 02.26.12 at 1:28 am

I guess what I’m trying to say is there is a rampant sense of entitlement happening in a society that ‘buys now and pays later’. They can’t really afford it now, and likely can’t later, especially if rates go up. Ordinary ppl have tried (some successfully, it’s not all doom and gloom) to cash in on the real estate lotto. When ordinary ppl caught wind of the potential opportunity to make large sums of cash that would otherwise never be available to them in this lifetime – through purchasing real estate or taking a HELOC – they jumped on the bandwagon. Thy got greedy.
When the system collapses ppl are going to blame the banks for allowing it to happen. In reality, they could never afford it in the first place and had no business accepting the cheap and easy money.
Seems more and more like those of us who didn’t jump on the bandwagon are still going to end up paying for it.
I’m not saying banks are innocent, they aren’t, but ppl need to have some accountability for what is going to happen. They chose to overextend themselves. The banks didn’t force them to, they just made it easier.

#185 Fleabitten Monkey on 02.26.12 at 1:52 am

With reference to the Van Sun article, does anybody have the stats on a 5 year basis over 7 periods equaling the 35 yrs starting from the $14,000? Love to see the ups and downs.

#186 Timbo on 02.26.12 at 2:03 am

http://www.nakedcapitalism.com/2012/02/macrobusiness-have-labour-will-travel.html

We cannot say we were not warned. Many commentators about globalisation said that it would create an imbalance between labour and capital, for the simple reason that capital is free to move wherever it wants, and labour, except at the very top end, is not. And so it is turning out, with the middle classes of much of the developed world under extreme pressure, and shrinking.

http://www.polycapitalist.com/2012/01/podcast-philip-coggans-paper-promises.html

interesting public lecture on debt. 84 minutes

#187 donshimoda on 02.26.12 at 2:04 am

“At 20 I bought a house for less than 200k and sold that house less than 12 months later for just under 300k.
Even I, in my infinite 21 year old wisdom, knew something was very, very wrong with that picture.”

Infinite wisdom ..indeed! Bravo!

#188 D-dawg on 02.26.12 at 2:45 am

Yet another long blogness where nobody references NLMV. ‘Beauty.

#189 Fraud investors on 02.26.12 at 2:50 am

#169 reality on 02.25.12 at 10:32 pm

Do you think their illegal money will be no ending?
Think again. I predict it will stop very soon since Chinese ppl have already pointed fingers to the corruption of their current gov’t. Nowadays with internet, do you think they won’t be caught even they sent families over to Vancouver.

#190 Pound Puppy on 02.26.12 at 3:18 am

Ok so now i am ready to really say something worth while —I think???… … You know WISDOM is a gift some have earned and maybe just maybe they arent that willing to give it up to you to learn from. ….. I was that sexy 40 something knew it all …. had it all… and was too stupid to know it…..fast forward 10 years…made millions…..lost millions. Gambled LARGE invested in both us/can real estate. Bought low watched it cusp in the US… regretted the “moment”. Now watching the same thing unfold here……. WAKE UP SHEEPLE!!!! Do you know what it feels like to have wealth and it all swept away? Its a sickening feeling that engulfs the pit of your stomache cause you thought you knew better but just needed to have that last dance….. Thankyou Garth for trying to drive it home. No one really knows till they have really felt it…..

#191 oslec on 02.26.12 at 4:02 am

#167 reality on 02.25.12 at 10:28 pm

Hey “reality”, instead of drinking more kool-aide, you should switch to “koolant”.
I am an immigrant and 95% of the people I deal with are too. I definitely call Bull Crap on your observation. Try looking beyond your social circle, then maybe you might just glimpse REALITY.

#192 new-era on 02.26.12 at 7:12 am

The Canadian Banks are crossing their I’s and T’s when handing out mortgages. But what can you expect when you spend 15 minutes validating a person’s creditibility.
Its kind of like robot signing

http://www.thestar.com/business/article/1134496–mortgage-fraud-up-150-per-cent-in-the-last-year?bn=1

#193 };-) aka DA on 02.26.12 at 9:39 am

#153Pound Puppy on 02.25.12 at 8:28 pm
“The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities — that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future — will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.”

-Warren Buffet

With all due respect for Mr. Buffet, while that may be an apt description of financial investment compared to financial speculation I do not believe it so applicable to the differences between a real estate investment and real estate speculation.

A real estate investment is one which someone acquires based on its income stream and plans on retaining ownership of for the long term. The property is sought based on its ability to provide a reasonable periodic financial return on the investment without having to dispose of the property – monthly rent. These are the hidden gems in real estate which are hard to find but a safe bet.

A real estate speculative venture on the other hand is one which the acquirer intends to hold only for a short time as they seek a greater fool to whom they can offload the property for a quick profit. These are the fool’s gold of real estate which lay about everywhere and are hawked by con artists who will lead you to believe you too can become and overnight real estate investor success.

#171DM in C on 02.25.12 at 11:00 pm
#151 };-) aka DA

I’m 6’5″, not 6’4″.
Every inch counts — but I’m sure you don’t have to be reminded of that fact.

+++

I’m sure DA checks every day, is still sad, and comes on here for the negative attention. Hey it’s still attention!

Nope.

I come here to test my convictions.. I come here to prove to myself that my armour, despite the many chinks in it from doing battle with you all, remains intact and my attitude positive. I come here to test that I remain true to my convictions.

I come here to read what is said by others that might lead me to change my mind. Thus far no one, not Garth nor any one of his Dawgs, has provided one iota of information that leads me to believe that things are so bad as you all believe.

I come here to share my thoughts, as an industry insider, on matters of real estate with you. I do not want to change your mind. You represent a small random sample of the market I deal with. I want to know what makes you tick that I might better do what I do. While the common opinion shared amongst the Blog Dawgs is hardly representative of the common opinion in the marketplace there is good reason for me to understand and expose myself to and try to understand all extremities of public opinion – yours included. I believe it has been of more benefit than cost and worth my time – althought frequently, as you know, I find I must take my leave for the gloom and doom held and coveted so firmly by so many on this “pathetic” blog at times can become overwhelmingly disturbing and unhealthy.

#194 The American on 02.26.12 at 9:49 am

At 192: new-era, don’t worry. “Reality” = “BPOE.”. They way each expresses himself is proof in the pudding. Like I said, you know when BPOE is lying…. It is when he is talking or typing.

#195 The American on 02.26.12 at 9:50 am

I meant for my previous comment to be for #191, Oslec. My apologies.

#196 };-) aka DA on 02.26.12 at 10:22 am

Interesting video newstory on West Coast real estate prices and trends from 2006, back before Cameron Muir was with BCREA and then working for CMHC.

http://youtu.be/gBGbo8zmfHQ

#197 OneMoreThing on 02.26.12 at 10:27 am

#179 Sky on 02.26.12 at 12:05 am

Think you’ll get a different seat when flying next to a land whale? Think again.

Snippet – ” A man flying to Philly was forced to stand for seven hours on a US Airways flight. After the 400-pound man sitting next to him got settled in, there wasn’t enough room for Arthur Berkowitz to get back into his seat.”

“Berkowitz said the flight attendants were “sympathetic” when they realized he’d have to stand, but there was nothing they could do.

Sure stick a pin in the patient and let the air out!

#198 TurnerNation on 02.26.12 at 10:49 am

Folks, as we are witnessing rapid reversals of fortune due to real estate’s influence (up in Canada, down in USA), we find people as suddenly vaulted up/down within the economic hierarchy/pyramid.

We must take a closer look at how society treats/controls you depending upon your level in the “class” system. And yes I will tie this back to real estate at the end.

Listening closely to your 6pm newscast you hear the police referring to us as “civillians” or as “members of the public”.
What is the opposite meaning to these terms? Answer is: Army, and Private. We are public civillians, they are a private army.

And the Crown Prosecutor is the one who makes a compelling case for the loss of your freedom – whether you are innocent or not. Here’s hoping you have enough money to do legal battle with the Crown. Otherwise, his/her educated argument will get you every time. A Private Army of the Crown. That’s what we are up against.

A public war broke out on our streets during Canada’s recent G20 event. (You may find much of this footage on Youtube).
I notice the civillian, public combatants were overwhelmengly from the lower middle classes, working class, and below.

So we had the Crown’s private army fighting against the lower class public civillians. Nothing much changes with serf or slave revolts against kings or plantation owners.

You’ll notice also the police spend an disproprotunate amount of their time stopping homeless, street, people, and even taxi cabs – the lower stratas of the economic pyramid. Yes, the local Toronto taxi newspaper wrote about what they describe as an aggressive traffic ticket campaign against taxis. (1) Recently I was in a cab stopped by police – driver recevied two tickets, likely totalling $250-300. Considering they earn mostly $10/hr or less, this is a huge burden against a working person. This will keep him in his place. The crown will show little mercy.

This is my point: private armies are used to keep us in our economic places. Witness the USA: we read tons of stories about formerly middle classes who were evicted by an armed Sherrif (Crown equivilant), cast into the street with the clothes on their back.
Their attempts at finding refuge in cars, parking lots, streets are met with police presense – told to move along or arrested for trespessing. They’ve found themselves vaulted into the lower classes, now a target for ongoing police attention and harassement. Real estate did this to them.

(1) http://www.taxinews.com/Resources/Taxi_news_June_2011_web.pdf
“Stop the
persecution and serial ticketing of cab drivers by overzealous police”
“And he says Police must ease up
on the multi-ticketing of taxi drivers.”

#199 TurnerNation on 02.26.12 at 10:53 am

TheAmerican: how about these Seattle-styled high prices for small downtown Toronto condos (notice thier monthly condo/HOA fees):

http://www.realtor.ca/propertyDetails.aspx?propertyId=11597348&PidKey=831517035

http://www.realtor.ca/propertyDetails.aspx?propertyId=11591853&PidKey=-1612482800

#200 Sky on 02.26.12 at 11:10 am

OneMoreThing- Actually, there was something the flight attendants could have done…. and, no,not the pin solution. : – )

There were plenty of passengers who did have seats. Musical chairs. 15 minutes standing and then somebody else gets a turn. Easy ,fair and healthy ( you’re supposed to move around to prevent blood clots).

Had I been on that flight there’s no doubt in my mind that THE LAW would have been waiting for me at the other end. I would have opened my mouth, proposed the solution, got shot down by the flight crew for suggesting a break in flight protocol or security regulation number blah,blah,blah.

Then I would have sulked or scowled at the stupidity of it all. And these days, that would have been enough to earn me an interrogation/arrest/charges.

Isn’t travel in the NWO fun?

#201 disciple on 02.26.12 at 11:14 am

#116 Junius…. you need to freshen up on your reading comprehension. I did not make the claim, I was quoting Greg Hallett, as I made abundantly clear now for the third time. As usual, you continue to ignore… but the posts and trails are there for anyone to look up and see.

My thought-provoking posts are a springboard for others to launch their own investigations, I have not posted anything that I know of to be untrue, biased or illogical. As a scientist I would never do that.

Please don’t embarrass yourself further by responding to my posts. Thank you.

If anyone wants to know the relationship between Junius and Cato, just google it and you will find the Roman connection on this blog. There are shills….everywhere….

#202 Darren on 02.26.12 at 11:17 am

Turner Nation: I live in Toronto and the taxi drivers here as a group are the absolute worst drivers on the road. You can walk downtown any day of the week and if you pay attention to them you can see them break the law with great frequency. The tickets they are getting are well deserved.

#203 Dragonslayer on 02.26.12 at 11:23 am

Re: Carpediem #31

Bang on. Good on your son for standing up to the bullies. Our schools are doing a good job of feminizing our sons and it is ridiculous. At our school they are not allowed to throw snowballs when it snows. Nor are they allowed to pick up sticks from the ground and play with them. And we all heard of the case where the school district banned ball playing in the schoolyard. And I’m sorry, I don’t think boys should be “forced” to take home-ec and sewing if they don’t want to. No wonder we are turning out a bunch of pussies from our schools.

#204 Spiltbongwater on 02.26.12 at 11:38 am

How do people buy an apartment with $700 + monthly strata fees? WTF, I thought that over $400 per month was on the pricey side.

#205 tkid on 02.26.12 at 11:39 am

Sky, interesting link. Making the passenger stand should be against FAA rules. If this should happen to you, email [email protected] and make your concerns known. If the passenger had done this, United Airlines may have expressed a better and safer response than the one they did express.

#206 };-) aka DA on 02.26.12 at 11:55 am

I would have opened my mouth, proposed the solution, got shot down by the flight crew for suggesting a break in flight protocol or security regulation number blah,blah,blah.

Then I would have sulked or scowled at the stupidity of it all. And these days, that would have been enough to earn me an interrogation/arrest/charges.
– #200 Sky

Welcome to my world. };-)

#207 Daniel on 02.26.12 at 12:11 pm

I need a Garth Glossary. I figured out what HAM and [email protected] are and some others, but what is an Amazon RSP?

#208 GregW, Oakville on 02.26.12 at 12:17 pm

Hi #62 Nostra, FYI, You may be interested?

•Exercise and the Aging Brain.
(It’s the 4th segment of this radio downloadable show.)
“Evidence has been accumulating for a decade now that the best way to forestall or even reverse age-related mental decline is with a regular program of exercise….”
(IMO, there are a few other important issue to also be aware of. But that’s not what this link is about.)
http://www.cbc.ca/quirks/ (Feb. 25, 2012)

And
#136 a prairie, I’ve always liked that clip/link you gave, and longer versions too! Art imitating life or …!

#209 Junius on 02.26.12 at 12:30 pm

#201 Disciple,

You said, “My thought-provoking posts are a springboard for others to launch their own investigations, I have not posted anything that I know of to be untrue, biased or illogical.”

You miss the point. Your posts are mostly irrelevant to the main topics of this blog. You clearly have an agenda to try and lead people off this blog towards your perspectives on other topics. Furthermore I believe that most of what you post is untrue, illogical and without foundation.

#210 John G. Young on 02.26.12 at 12:30 pm

#206 };-) aka DA

Welcome to my world. };-)

Oh, so that’s a picture of you on the plane?

#211 OttawaMike on 02.26.12 at 12:31 pm

#200
Welcome to the world of cheap flying. Apparently in aviation as in many other things, cheap and good are mutually exclusive.

I am just finishing up a week of bashing the powder at a resort outside of Kamloops. We flew here on points so had to use our national airline, which I normally avoid like the plague.
The three part journey from Ottawa was botched at every leg–mechanical,breakdown,overbooked,delayed and our gear and luggage was lost as a grand finale. A drive back to Kamloops ensued next day for our gear, otherwise it would have meant no skiing for another day. They shrugged and said too bad we don’t even like carrying skis. Never mind that they charged me extra to carry the skis.

On our hugely delayed departure from Ottawa, I ended up seated beside a Tory MP from the 905. I asked her to just arrange one thing: No more bailouts or subsidies for this airline..just let them be put out of their misery.
Her reply: You can count on it.

#212 Junius on 02.26.12 at 12:32 pm

RE: BPOE Imposter,

While I remain a constant critic of BPOE and his posturing I don’t appreciate that imposter of him any more than I appreciate any of the imposters on this site. There isn’t a lower form of scum that is on this Blog.

#213 OttawaMike on 02.26.12 at 12:44 pm

Resort property in Kamloops.

The competition in the ski resort biz here in BC is pretty fierce. I liken it to the Whistler Effect with the biggest and highest rated destination setting the bar high for the rest of the province.
The place I am staying is majority owned by the Japanese with a mix of Canadian, German, Aussie and NZ money building hotels and condos here.

I must say the owners are doing an excellent job on this resort 4.5 hours drive from Vancouver. Unfortunately the Vancouver effect is not carrying over to the condos and houses here. The place we are staying is one of the older properties built in the mid 90’s. Units that sold for $150k seven yrs. ago are now available for $110,000. Kind of makes renting look good..somebody should write a blog about that.

In Kamloops, house prices are nearly identical to Ottawa’s with new build subdivision places going for around $400,000-$500,000 and older small places in the $300k range.

A very pretty city but with no real industries except for a hospital and university, I’m not sure what can sustain these price levels?

#214 Oceanside on 02.26.12 at 12:55 pm

#207 Daniel on 02.26.12 at 12:11 pm
I need a Garth Glossary. I figured out what HAM and [email protected] are and some others, but what is an Amazon RSP?
———————————————————————–
Group contribution at work, Amazons pay a share and Garth matches it. Very common practice.

#215 Debtfree on 02.26.12 at 1:13 pm

#robocalls and #cdnpoli looks like h stole the election . Should they not have to call byelections in the ridings they tainted or will they (the cons) let the fraud stand.
I don’t really think this too is far off topic as the cons have created the mess that our economy is in. I also don’t think that they ( the cons) can as they are now doing blame canadians . Like jimmy jones would say ” I only offered you the cool aid ,you didn’t have to drink it”. And [email protected] shilling mutuals to nowhere . Where is the leadership of state ? We need the U.N. to monitor our next elections for fraud . What a shame. He did say we wouldn’t recognize canada once he was finished with it .

#216 Just a Normal guy on 02.26.12 at 1:49 pm

SM – This proves your point about the type of education that the public gets.

Common sense is not so common.

http://www.dailymail.co.uk/news/article-2106423/Simon-Burgess-body-floats-Walpole-Park-pond-emergency-workers-stand-watch.html?ICO=most_read_module

#217 Junius on 02.26.12 at 1:49 pm

#215 Debtfree,

This is the history of the past few decades. Our so-called Conservative gov’t in Canada has increased deficits dramatically while Republican gov’ts in the US have done the same. Good link below on how the current batch of Republican’ts would add to the deficit:

http://www.masslive.com/politics/index.ssf/2012/02/gop_presidential_candidates_ta.html

#218 Dorothy on 02.26.12 at 1:50 pm

#193 – “frequently, I find I must take my leave for the gloom and doom held and coveted so firmly by so many on this “pathetic” blog at times can become overwhelmingly disturbing and unhealthy.”
I agree with this statement. I used to read the blog every day, but when I found it was begining to affect my outlook on life in a very negative way, I began to limit my exposure. Now I check in every now and then, just to make sure I get a view from “both sides of the fence” as it were, but I most definitely cannot handle a daily dose of total doom and gloom.
No matter how bad things get in life, I think we all need to focus on the positive now and again, otherwise life becomes intolerable.

#219 Junius on 02.26.12 at 1:51 pm

#210 disciple,

You said, “If anyone wants to know the relationship between Junius and Cato, just google it and you will find the Roman connection on this blog.”

Yes, Cato and I have been attending Toga parties together for nearly 2000 years. Jealous?

#220 Bill Gable on 02.26.12 at 2:35 pm

I could not believe my ears. ” We just bought a new 2300 sq ft townhouse on Bear Mountain!”. My sibling – who already owns a huge home in Victoria, also bought a place in the Desert.
(My palm hitting my face).
“We are cleaning up the house we are in now, sell it, and we should come out ahead”.

At this point, I didn’t know whether I should throw up, tell her what Mr. Turner and wise blog dawgs have been showing to be true, or shut up.
I had begged her to at least read this blog, or get in touch with Mr. Turner, and discuss this insane move…but I bit my tongue.

These are a couple in their late fifties.

An earlier post referred to the housing collapse in Gangcouver in 1981. I lived here then, before my foray into parts east, and so I know that illiquid assets are capable of falling off cliffs.

You can only point the way, it’s their life. Their property they have in Victoria is lovely.

I asked why they wanted to go into a bankrupt development like Bear Mountain and she said, wait for it – they wanted more room for their dogs to play, because the yard was bigger, and they can lock it up and spend their winters in their California property.

I just about gagged.

So there you are. What a mess.

One last thing. I am tired of reading some of the stupid, ramblings of trolls and off topic posters.

This blog must take a ton of work – thanks again, Mr. Turner – but I don’t like it being hijacked by whack jobs.

#221 waiting on 02.26.12 at 2:36 pm

More fuel for the fire – another real estate debacle,
“Every hotel condo investment in B.C. has lost money for the investor. Every one.”
– Ozzie Jurock, real estate consultant

http://www.biv.com/coverthisweek.asp

#222 Don on 02.26.12 at 2:38 pm

#193 DA: I come here to read what is said by others that might lead me to change my mind. Thus far no one, not Garth nor any one of his Dawgs, has provided one iota of information that leads me to believe that things are so bad as you all believe.
888888888888888888888888888888888888888888888ball

We could be in the middle of the hottest desert on earth and I can lead you to the water, doesn’t mean I can get you to drink it.

On another note: went to look at some rentals yesterday, 29 – 31 yr old trying to rent out his second property. Told me that he had 13 people coming to see it – Watching someone younger than you try to feed you the kool aid is like watching a 4 year old trying to lie to you. Phoned him back and said the place is too small and over priced. Let’s see how this unfolds, I bet the place goes up for sale soon, they are having a baby soon. Young people are leaving Victoria in droves, vacancies everywhere, more than ever before.

Oh yah Disciple you may be off topic but I like what you write…well most of the time.

#223 Preciousss on 02.26.12 at 2:48 pm

#213 Ottawa Mike

What about the important details?? Did you get drunk on wine and explore in the hottub? Was the skiing good? Did you score? Did you smoke some BC bud?

There is a fantastic body rub parlor for your apres ski enjoyment. I hear they take points.

#224 };-) aka DA on 02.26.12 at 3:04 pm

#210John G. Young on 02.26.12 at 12:30 pm
#206 };-) aka DA

Welcome to my world. };-)

Oh, so that’s a picture of you on the plane?

No this is me…

http://youtu.be/v60n2_DnwC0

or so it too often seems.

#225 The Thing in the Basement on 02.26.12 at 3:23 pm

215 Debtfree – I am similar to yourself in that I am
debtfree now, save for one very small business loan
within a partnership. But I am careful to criticize
government for the mess we (or some of us) are in, or
going to be in. I too had personal debt, but used the low
rates to pay it down quickly. But more importantly, I
have been the recipient of funds that are somehow linked
back to debt creation. It may be immediately present (Ex
you are paid for your labour when building a mortgaged
house) or further removed but part of the wealth effect
nevertheless. How can I be angry with this?

The irony for myself now is the low rates on cash and fixed income investments.

#226 Alex n calgary on 02.26.12 at 3:31 pm

After living a mere 6months in our last rental before it sold, this house, reasonably nice raised bungalow, renovated 5yrs ago, good lot. Tons of trashy people live around us, broken down trucks and cars all around, but sorta kinda close to downtown. Landlord called yesterday to announce hes going to tear this house down in 3 months, and we have to move yet again. There are around 10+ properties in a 6 block radius that haven’t sold in 6months, this older indian guy is going to sink every cent of his retirement and bloated mortgauges into putting up some rathole infills after destroying this perfectly good house.

How long will the next rental last? did I mention how much I hate moving? I don’t want to say I’ll delight in watching him blow everything into a set of brick faced infills that will never sell, but I might…shame houses are so wildly expensive and on the verge of collapse, I’m so goddamn sick of being at the mercy of landlords and their greed….sure I’ll just make 400k in a year no problem, I’m so smart….

#227 Smoking Man on 02.26.12 at 3:34 pm

Man what a hang over.

I can go weeks without a drink yet when I start I have no end. Just keep going till I pass out.

This is not good, anyone been there done that.

Do I need to quit altogether, or is there away you can just cap it after so much.

Nice 130 a liter for gas, after Iran gets attacked we talking 2 or 3 bucks to fill up.

Not good for hummer ouners who live in the boonies

#228 Smoking Man on 02.26.12 at 3:42 pm

#139 TurnerNation on 02.25.12 at 5:37 pm

You’re kids are the property of the state, the state is the property of a few zillionares.

Before the plesenta hits the bowl, you’re kid has a number.
In the not to distant future they will be implanted with chips, for their saftey of cource.

Home school em if you can

#229 Flash on 02.26.12 at 3:48 pm

Garth, I’m really confused. I feel that there is something missing from your equation. Do you expect people to pay $1,500 or more per month to rent a dump rather than use this hard earned money to pay-down principal and interest on a mortgage for a lovely house?

I agree, you are confused. — Garth

#230 Timing is Everything on 02.26.12 at 3:50 pm

#214 Oceanside – Group contribution at work, Amazons pay a share and Garth matches it. Very common practice.

I think Garth gives the Amazons bonuses based on ‘performance’ too. Very common practice, at least in the private sector.

#231 Linda Pearson on 02.26.12 at 3:54 pm

#214Oceanside on 02.26.12 at 12:55 pm
#207 Daniel on 02.26.12 at 12:11 pm
I need a Garth Glossary. I figured out what HAM and [email protected] are and some others, but what is an Amazon RSP?
———————————————————————–
Group contribution at work, Amazons pay a share and Garth matches it. Very common practice.
—————————————————————-

Uh, I don’t think so. Amazons were reportedly extraordinarily physically strong, almost larger-than-life beautiful women. I think they came out of Greek mythology if my aging memory serves. Garth reputedly keeps them for personal services maintaining his motorcycles and automobiles. But, hey, I could be wrong.

#232 The American on 02.26.12 at 3:55 pm

At #199: Turner Nation, I’m not sure if those dues are high or low compared to Seattle in all honesty. The listings you provided do not indicate the units’ square footages. In Seattle, for example, HOA dues (stata dues) typically run about $0.67/square foot. So, 1,000 square feet would be $670/month on average – some higher, some lower.

Here are some Of the desirable condos currently on market:

This one isn’t yet built:
http://www.realtor.com/realestateandhomes-detail/1012-1st-Ave-3500_Seattle_WA_98104_M27521-69294

These are built in the Four Seasons. The prices here reflect a 50% slash made to original prices over a year ago:
http://www.realtor.com/realestateandhomes-detail/99-Union-St-Unit-1801_Seattle_WA_98101_M20901-34170

http://www.realtor.com/realestateandhomes-detail/99-Union-St-Unit-1501_Seattle_WA_98101_M20902-45968

http://www.realtor.com/realestateandhomes-detail/99-Union-St-Unit-1605_Seattle_WA_98101_M20900-22372

Here are a few at 1521 2nd Avenue:
http://www.realtor.com/realestateandhomes-detail/1521-2nd-Ave-Unit-802_Seattle_WA_98101_M25827-37623

http://www.realtor.com/realestateandhomes-detail/1521-2nd-Ave-Unit-3702_Seattle_WA_98101_M10866-38796

http://www.realtor.com/realestateandhomes-detail/1521-2nd-Ave-Unit-3802_Seattle_WA_98101_M20359-76087

http://www.realtor.com/realestateandhomes-detail/1521-2nd-Ave-Unit-2503_Seattle_WA_98101_M10869-36924

Olive 8:
http://www.realtor.com/realestateandhomes-detail/737-Olive-Way-Apt-Ph3_Seattle_WA_98101_M25576-52844

1000 1st Avenue:
http://www.realtor.com/realestateandhomes-detail/2000-1st-Ave-Unit-1702_Seattle_WA_98121_M10867-13328

715 2nd Avenue:
http://www.realtor.com/realestateandhomes-detail/715-2nd-Ave-Unit-1703_Seattle_WA_98104_M27673-69213

And here are a few little homes for sale:
http://www.realtor.com/realestateandhomes-detail/Xxxx_Mercer-Island_WA_98040_M22039-79577

http://www.realtor.com/realestateandhomes-detail/Mercer-Island_WA_98040_M10769-30942

http://www.realtor.com/realestateandhomes-detail/4137-Boulevard-Pl_Mercer-Island_WA_98040_M28394-93608

http://www.realtor.com/realestateandhomes-detail/3051-84th-Ave-Se_Mercer-Island_WA_98040_M17930-28158

http://www.realtor.com/realestateandhomes-detail/Undisclosed_Seattle_WA_98102_M26330-24267

http://www.realtor.com/realestateandhomes-detail/3805-Hunts-Point-Rd_Hunts-Point_WA_98004_M16773-55192

http://www.realtor.com/realestateandhomes-detail/318-Overlake-Dr-E_Medina_WA_98039_M15923-60687

http://www.realtor.com/realestateandhomes-detail/11900-Ne-Country-Club-Rd_Bainbridge-Island_WA_98110_M21680-99720

http://www.realtor.com/realestateandhomes-detail/1900-Shenandoah-Dr-E_Seattle_WA_98112_M26225-34623

#233 The American on 02.26.12 at 4:03 pm

At #204: Splitbongwater, we would welcome strata fees as low as $400/month on the West Coast here in the States. We are paying $1,245/month for our 1,729 square foot 2 bed 2 bath in Seattle. Yes, it sucks.

#234 Westernman on 02.26.12 at 4:13 pm

Turner Nation @ # 198,
Usually you are reasonably sensible with your comments but this making excuses for rioting needs correcting – now listen and listen good –
Rioters are criminals … repeat – out of control criminals and need to be dealt with as soon as they start their shit and in the sternest manner possible- they are not misguided youths, victims of ” the man ”
or any other such horseshit – they are criminals. Period.

#235 TurnerNation on 02.26.12 at 4:23 pm

TheAmerican: condo fees in Toronto range .50-.70sq foot. Those units I posted are certainly not greater than 700-850sq in size.

And look at the delusion in BPOE:

http://www.6717000.com/estates/listings/

#236 These pretzels are making me thirsty on 02.26.12 at 4:30 pm

# 229

lol

#237 Last (I cheated and jut scrolled down) on 02.26.12 at 4:55 pm

@alex in calgary I don’t understand why tenants are such roll overs, my bro in law with a disabled child has moved 3 times for the same reason, last time cause the guy was thinking of selling (never did) tell your landlord that you move when he has an eviction order in place, than fight it. By the time he gets it the boom will be totally over and he’ll change his mind.

#238 TurnerNation on 02.26.12 at 5:06 pm

We have ersatz blog dogs are work even in this article’s comments section:

http://torontostandard.com/business/is-the-toronto-condo-bubble-about-to-burst-tell-me-condo-condo-condo

#239 TurnerNation on 02.26.12 at 5:16 pm

#234 Westernman on 02.26.12 at 4:13 pm

99.9% of those caught up were NOT rioting. I watched the footage live on TV at the time. Uniformed bus drivers on way to work were rounded up. They were held handcuffed for hours while in makeshift cells, and taunted by police, by all accounts. Syria much? They got maybe 50 charges & guilty pleas out of the whole staged event.

Evidence: They let the cop cars burn with no firetruck or policeman in sight, despite tens of thousands of cops blanketing the city. Of course this made for the perfect front page worldwide photo op. They knew what they were doing. **Firetruck reponse time in my nearby downtown area is sub-5 minutes. It’s amazing. But not that day. Not one fire truck showed up for well over 1/2 hr. in each case **. Explain that.

Watch the footage of people at Spadina & Queen “kettled” and rounded up, including local residents going about their business. One by one the cops grabbed them by the throat, tackleing them, no lawyer no rights just into the cells. Not one person was allowed lawyer while in the makeshift jail.
The hatred of our freedoms was palpable.

Again, if you dare to view the footage not one rioter in sight! Barely a protest sign in sight. We have that right, right? We fight people in desert lands (as the war propaganda goes), right?

http://www.youtube.com/watch?v=yZbgz3eo4YI

Slowly the curtain is being pulled back. Robocallers and our rigged elections – Iraq much? The war is coming home, and we are the targets.

#240 TurnerNation on 02.26.12 at 5:19 pm

Westernman: How far will they go? Just watch them…these are NATO tactics to pacify the middle east – come home to us. Collective punishment of a city. But we fight for our freedoms, right? The men in uniform care about us and will save us?

http://www.theglobeandmail.com/news/world/g8-g20/news/g20-related-mass-arrests-unique-in-canadian-history/article1621198/

“e Canadian Civil Liberties Association denounced the mass arrests, saying they were illegal and unconstitutional because police did not have reasonable grounds to believe that everyone they detained had committed a crime or was about to do so.

“To us, it’s abhorrent that we would be arresting more than 900 people to find maybe 50 or 100 … vandals. This makes no sense. It’s a fundamental breach of Canadian law to have done that,” said Nathalie Des Rosiers, the organization’s general counsel. “

#241 live within your means on 02.26.12 at 5:57 pm

#200 Sky on 02.26.12 at 11:10 am
OneMoreThing- Actually, there was something the flight attendants could have done…. and, no,not the pin solution. : – )

There were plenty of passengers who did have seats. Musical chairs. 15 minutes standing and then somebody else gets a turn. Easy ,fair and healthy ( you’re supposed to move around to prevent blood clots).
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Totally agree. Hard to believe that others didn’t offer that passenger their seat for a period of time. I have to wear special knee high socks when I travel long distances. Even then, my feet & ankles are puffed up for a week after. Another reason why I hate long air flights.

BTW – what the ‘pin solution’??.

#242 John G. Young on 02.26.12 at 5:59 pm

#224 };-) aka DA

I was speaking metaphorically — i.e. that you’re part of the problem, not part of the solution.

Cue the narcissistic rage…

#243 live within your means on 02.26.12 at 6:09 pm

#205 tkid on 02.26.12 at 11:39 am
Sky, interesting link. Making the passenger stand should be against FAA rules. If this should happen to you, email [email protected] and make your concerns known. If the passenger had done this, United Airlines may have expressed a better and safer response than the one they did express.

……………..

Or do a video on Youtube – United Breaks Guitars – http://www.youtube.com/watch?v=5YGc4zOqozo

#244 John G. Young on 02.26.12 at 6:11 pm

#227 Smoking Man on 02.26.12 at 3:34 pm

I can go weeks without a drink yet when I start I have no end. Just keep going till I pass out.

This is not good, anyone been there done that.

I’ve been there done that, more times that I can remember.

Do I need to quit altogether, or is there away you can just cap it after so much.

I truly don’t think that anyone can answer that question for you — you have to answer that for yourself, which involves a process of self-examination. However, I also think that you might want to consider getting some professional help — a personal finance blog is probably not the best place to be asking for the kind of advice you’re seeking.

Good luck.

#245 Paul on 02.26.12 at 6:30 pm

#226 Alex in calgary

Use a property management service for the next rental. Makes life so much easier. Their not interested in taking on a property that is in bad condition and usually represent long term property holders that don’t plan on selling in the short term.

#246 live within your means on 02.26.12 at 6:32 pm

#200 Sky on 02.26.12 at 11:10 am

I think security is far worse in NA. We fly into Frankfurt every 2 years. DH has dual citizenship. He applied for a French passport a few years ago through their office in Moncton. Half the price than a Cdn 5 yr passport and it’s valid for 10 yrs. He filled it out online – about 5-10 questions – that was it. So, when we arrive in Frankfurt he goes through the EU citizen line and I go to another line. No hassle, no questions. Stamp my passport & off I go. One time they did look at me for a moment or more as I had a hat on – had lost my hair due to chemo, but was never questioned. :-) No hassle when we arrive & leave from Frankfurt. They are really efficient. No wonder their economy is the best in the EU.

#247 Trailer Park Boys on 02.26.12 at 6:40 pm

Just so you all know..

We caught SMOKING MAN in our trailer trying to rip us off.

He is now tied up in Lahey and Randy’s trailer forced to watch the basement scene in PULP Fiction……they are not home ……..yet.

#248 Padre Goldstein on 02.26.12 at 7:13 pm

#125 BPOE on 02.25.12 at 3:42 pm

I have a confession to make. I am a 27 year old realtor transvestite prostitute, abducted by aliens, forced to go on a weight loss program. I love lying to people
============================

Oy laddy confession is good for the soul.

#249 robert james on 02.26.12 at 7:41 pm

#248 Padre Don`t laugh,, BPOE may be telling the truth.. As per the CBC news this morning,, there is a guy in Vancouver that has taken the term “dog lover” to whole new level… He has 4 dogs that he calls his girls,, one being a rottweiler… The SPCA took his dogs away.. Poor dogs will need counseling..Vancouver is a strange place indeed…http://www.cbc.ca/news/canada/british-columbia/story/2012/02/26/bc-vancouver-bestiality.html

#250 OttawaMike on 02.26.12 at 8:03 pm

Preciousness #222
What about the important details?? Did you get drunk on wine and explore in the hottub? Was the skiing good? Did you score? Did you smoke some BC bud?

There is a fantastic body rub parlor for your apres ski enjoyment. I hear they take points.
+++++++++++++++++++++++++++++++

I have heard that sampling BC bud while partaking in a the skiing of powder bowls can lead to crashes and bruised ribs.

I’ve also heard not to get a 140 lb. blond,amazon masseuse who offers walking on it to cure the pain. No matter how alluring it may sound.

Waiting now in Kamloops airoporto, AC makes it right with a sympathetic ticket agent. I met one little employee who cares about customers.

#251 OttawaMike on 02.26.12 at 8:05 pm

They are not hut tubs, they are C-Difficile Tubs to me. Went for the saunas instead. The outdoor swimming pool is also nice for a moonlit swim on the mountain’s edge.

#252 TaxHaven on 02.26.12 at 8:16 pm

High gas prices…?

I dunno…but it might do something about all these massive $50K pickups and SUVs here on Vancouver Island. Canadians are getting more and more like Americans year-by-year…

Can’t be all bad. Those trucks are most likely mortgaged anyway…

#253 The Thing in the Basement on 02.27.12 at 12:06 am

Tax Haven – yea the F150 doesnt cut it on Port.

Did you catch the documentary on the Martin Mars? Plays again over the next few days.

#254 Bubble News – 2/27/2012 | The Bubble Bubble on 02.27.12 at 4:49 am

[…] Is a house the best retirement strategy? Better hope so. Or millions of Canadians are screwed. […]

#255 disciple on 02.27.12 at 10:20 am

The issue is not about being off-topic, and you know it. Comments on real estate by BPOE and non-BPOE notwithstanding, I can count on my fingers, the number of posts daily that solely pertain in any strict fashion to the blog post itself.

I fully expected that eventually for anyone who reads disciple there will come a time when virtually everyone on this blog will disagree or are offended by disciple, but it’s not because anything stated is offensive, ad hominem, or disrespectful. It’s because the veil of your deception will have been pulled back for just a moment. For some, the horrific shock is just too much and I empathize with that. But it’s a personal battle, unique to each individual. Even for hard-core conspiracy fanatics, there will be angles they never considered. disciple knows.

At first you are ridiculed (mother ship comments), then they fight you (using the off-topic play), then they kick you off blogs (mistake), and then you win. Adieu.

#256 Del Grande Homes on 02.27.12 at 11:04 am

Great article. I hope many people read this and educate themself more when it comes to the Real Estate market.

#257 Alex n Calgary on 02.27.12 at 1:40 pm

Last (I cheated and jut scrolled down) I appreciate your feedback! we just don’t want to fight the guy and create an uncomfortable situation with a landlord who hates us. Its easier to find a place with a nicer kitchen then fight this I guess.

Paul thanks for your feedback too! We have both been considering a property managment property like you said! We’re both totally afraid of another house owned by some overfinanced couple who’s income does not justify having 3 hours (last 2 landlords) and goes to sell the house again. I do wish we could make it through the summer in this place, I’m sure he would change his mind. I had considered lending our knowledge of all the stagnent properties in the immediate area with him (he clearly doesn’t know, or walk his dog here everyday like us) but its his loss really, we told the last landlord that houses were peaking and boom house is up for sale 2 weeks later. The almost 3 car garage is heated, insulated, setup like a workshop, its a dream for me, they’ll be dragging me with my fingernails down the drywall when I have to leave that beauty.

Nobody you can talk to in Calgary here, nobody is aware, its so crazy, different here, always up, its not just something Garth says, its 100% real here. The worst is being treated like peasants for renting, even though we both have great jobs, sigh, keep up the good work Garth, helps us through some really stressful and dark times with this housing BS we’re going through )))

#258 Daniel on 02.28.12 at 5:56 pm

Forgive me, but to spell it out, I think Garth refers to matching company RRSP plans by referring to (mythical) Amazons whom he employs to care for his motocycles and yard, and that they have a matching RRSP plan as his employees.
– OK –

I don’t think I want to know what Lawn Asians are. Sounds racist.