The power of this blog rests in its readers. Google tells me there are 17,000 visits a day, or 5.5 million a year. About 1% of people leave a comment. Some are dorks. Some inspire.
For years I was a media guy, before losing my mind and wandering onto the floor of the House of Commons. Now I blog. My day job pays better, but this pathetic site proves to me that truth now lies in peer-to-peer communications. No media filter. No editors. No corporate agenda. No advertisers. Just the occasional deleting of a nimrod.
In this age of suspicion, most mistrust markets, banks and salesguys. And why not? The housing industry has kidnapped Global TV and the Toronto Star while politicians pushing us over a debt cliff escape scrutiny. People know. They see such things, and bring reality with them to places like this.
As demented and wild as it is, the comments section’s thick with value. And then there’s my email inbox. It is a daily miracle. Lives, in progress.
Hello Garth. First off – I understand you are probably overwhelmed with emails, I can only hope you are able to read this one. If so – I thank you for your time. I am addicted to your blog, and promote it every chance I get – often to the annoyance of those who disagree with your points.
I am a generation Y born to parents that started with nothing. My mother immigrated to Toronto from Ireland in the late 70’s, and my father came from a large poor family from a small town. Needless to say they both had to work and save hard to be able to establish a home and a family. I believe that they bought their first house in North York in the early 80’s for around $125,000.
Fast forward to today and the house down the block just sold this week for $1.18 Million by some horny Asians, almost 55% above the asking price of $759,000. Unlike previous examples, this house was NOT priced substantially below market value. The house is a 1960’s bungalow with an unfinished basement, with few if any updates. The Yonge/Finch – Yonge/Sheppard North York area has morphed in the last 10 years to the place to be for Asian and Iranian immigrants.
The major issue is that continual price appreciation has blinded Boomers like my parents who take a great sense of pride over their home. My parents, like many of those in their generation are unable or unwilling to recognize the effect on my generation. We are a generation of kids that grew up in houses around Toronto.
I am 30 (the same age my dad had me) working as a mid-level manager, reporting up to layers of boomers. There is NO WAY I could afford a condo anywhere in the GTA, let alone a house at the current levels. As with many of my peers, we have put home ownership and the prospect of starting a family on indefinite hold.
Unlike some of my more fortunate peers, my parents have always been unwilling to assist (“if we could do it, you could do it”). Whether it’s a down payment, or having tuition/rent paid while in school – these children of privilege are the small minority relatively unaffected by the price disparity gap.
When I walk around my parents’ neighbourhood I see hundreds of children speaking a foreign language, shooting basketball in the school I attended as a child. I can only wonder if things were different, in a few years, if I would be playing with my non-existent kids, instead of trying to survive in the big city.
Your Boomer parents helped turn shelter into a commodity, properties into assets and neighbourhoods into hedge funds. Your bitterness and regret are well-founded. After real estate blows up, it will take another generation to render houses back into homes. — Garth
Hey Garth. Our neighbour accepted an offer this weekend on their condo in Abby. Asking price $225k, sold at $214, original offer was $209. They bought at $230k. We are very happy for them because they wanted out, very nice family, two kids stuffed into 960 sq ft..
This isn’t an earth shattering reduction, but it does break the belief that RE goes up 10% every year. When you take into consideration that for their unit costs $1700/month minimum, and would rent at $1000, you’re paying $8400 extra a year just to own. Considering you hardly make a dent in your principal at zero down on a 30 year, that is a loss of $50k on a $230k investment over the course of 4 years, or 22%. So when people say “you are paying your someone else’s mortgage when you rent” you usually aren’t, your just giving their bank money.
We are running the math now trying to figure out if we can afford to sell and take the hit. Paying $25k to walk away is very tough to swallow. Cheers, Jon
Tip of the iceberg. In every major Canadian city, renting’s cheaper than owning. For each bidding war the media slobbers over, there are a thousand people sliding into negative equity. Many will be utterly bewildered, feeling alone and unique, because real estate always goes up. I mean, why else would they put the Re/Max guy on TV? — Garth
Long time reader, been renting ever since I moved out of the home several years ago. I’m 25 now, have a decent paying job, $121,000 last year before tax, I’m single, no kids, no real monthly expenses aside from my rent which is $925 for a Gastown condo in which I share with a roommate who pays $1050. Car is paid for, insurance for a year is paid for, and my assets (70% liquid) stand at $300k.
My situation is this: The place I’m living in now, is in the Woodwards building in Vancouver’s Gastown. Its a 2 bedroom 2 bathroom, 1154 sq ft condo, with a 93 sq ft balcony. Fairly low down, with a neat view looking straight down Cordova Street. I absolutely love it, and wouldn’t and don’t see myself moving for the foreseeable future.
My problem: I rent directly from the developer, and it’s for sale. Not listed, but for sale. When I moved in in November of 2010, they were asking $639,000. A year later they were asking $599,000. Now the Realtor acting on behalf of the developer, tells me it will probably sell for the $560k – $580k range, and that I may be able to purchase for the $545k range. To me, this is a hard decision. It goes against almost everything I believe in, mortgages, owning a very expensive liability, property taxes, maintenance, building assessments, a crumbling real estate market, etc.
That being said, $100k cheaper than original asking is definitely attractive, and when I first moved in, I told myself this place is worth $520k to me, no more and no less. That’s what I’m willing to pay. Now that the price has come quite a bit more inline with my thinking for true value, this could be one of those opportunities where a purchase might be the better of two options. As I said, I really enjoy the area, the building, the hot tub on the roof (43rd floor) and the developing area.
So with your experience, is this one of those times where it might actually be worthwhile owning vs renting that you infrequently talk about? Or am I out of my mind…
Let’s recap. You’re 25, make a bundle, have three hundred grand, are free and live in a cool place, for peanuts. You’re considering dumping your savings, adding a quarter million in debt and losing your mobility, so you can pay a lot more to live in the same space. Yeah, out of your mind. — Garth
Hi Garth. I forwarded you an article from the Vancouver Sun, stating basically real estate will never go down. If you believe this you might also believe we still have sasquatch’s wandering around the backwoods of B.C.( another myth)
Back in the late 80’s early 90’s, when Hong Kong was being handed back to China, we had a similar real estate explosion in the Lower Mainland, there was a frenzy of real estate buyers picking up anything and everything in the west side and Richmond, multiple bids, for sale signs dotting the landscape. At this time my wife and I were just starting out and looking for a home, we were young and foolish never having heard of a bubble or speculators, we chased the market up over a two year period as we were outbid for a home, and then just as the market peaked, we purchased.
This was 1994, we did not know at the time it was the peak, but we watched our house value decline for 7 straight years, till it found a bottom in 2001-2. We did finally sell out about 10 months ago, and boy have I slept well since. This new group of buyers have bid up the Vancouver market and also have no vested interest here, they have enough wealth that can make their home anywhere in the world, they parked their money where there were profits to be made. They, too, are reading the international publications saying the real estate market is near the top, so they are selling out. Which is why I suspect that Vancouver’s listing are twice that of the GTA.
If I can save one person from stepping off the cliff with the rest of the Lemmings, than my job is done. Thanks you for your website, books and keeping it real.
What’s real are stories and experiences told by those who lived them. This medium allows us to touch and share, after so many years of being told and misled. The fact most people you know embrace debt and worship granite proves you’re completely weird for coming to this blog. Just don’t tell your mom. — Garth
243 comments ↓
I am not first.
Madness. Everyone thinks high RE is a good thing. Pity their children. Those with economic sanity have paid the price so far. Will the pendulum swing?
The power of this blog rests in its readers. Google tells me there are 17,000 visits a day, or 5.5 million a year. About 1% of people leave a comment. Some are dorks. Some inspire.
The dorks are the ones who post “First!”…..
Yes First!
This is the initial comment
A proud Dork
I am renting in the North York area and would love to stay here for the foreseeable future. Unfortunately, any detached home is insanely out of whack in prices that I will probably never afford to buy here. Hopefully, my area is not one of those sticky areas and will see a sharp decline.
Your first emailer is bitter for sure; he’s also racist.
Best to suck it up bro’ and get into the game – buy a condo (a mid-level manager should be able to do this on his own), or work, save/invest in a Garth fund, rent and wait for the correction (at least 3 years to play out). Complaining about kids in the ‘hood and their foreign languages speaks to your own sense of entitlement.
Hello, I am 24 years old. I rent my parents basement. I work a job that pays me $20 per hour and I take home at gross $40,000 per year.
I have saved the past 7 years for home ownership, it has been my goal. I now have over $100,000 saved up. I am waiting for a major correction in real estate before I buy. Yet I am not such a doomer as to say “That isn’t what a house is worth.”
“Everything is worth what it’s purchaser will pay for it.”
Are people really paying $400,000 for a home? I’ve been putting roughly ~35% of every paycheck into the savings account and after 7 years I’m only a quarter of the way there. Has everyone else in Canada been working for 28 years before buying and I’m late to the party?
Not a chance.
They aren’t paying $400,000. The banks are and. They could care less about retaining an over priced asset, they just want their monthly interest payment.
Our story is similar, saw the 08 crash coming and in 06 listed a McMansion for sale, Completed the sale, Nov 2008! Perfect timing or what!
The buyer already had 4 or 5 other large McMansion properties, all mortgaged to 80-90% each. How they got 7 figure financing in Oct/Nov 2008 when the worlds banks were collapsing I’ll never know.
However it was the best decision we ever made selling it.
The freedom now of not giving a sh*t when we seem the idiot town councillors spending money they dont have building a $40 million rec center in a town with 9000 residents is great.
I just sit back and think of the property taxes in a few years when the town people finally wake up to the concept of “too much debt”.
Its already coming, I think I have almost talked one other person out of starting construction of their Mc Mansion and another neighbour just sold their place after I pointed out their future.
As much as I disagree with GT over the whole PM’s/Debt equation, the advice presented here is first class and many people will one day thank him for it.
Garth for Premier :-)
Here’s hoping our forum host holds a mini book tour, within the GTA (Garth Turner Area); perhaps the blog dogs will get a change at meet & greet, whereupon our forum host will offer a hearty handshake, or boot-to the-shins, as each situation warrants ;-)
I flipped though a complimentary Toronto Sun copy the other week. Six pages in and already they’d mentioned “left” and “left leaning”, seperately. The idealogical battle lines have been drawn. There’s a war on and we’re its targets.
Our forum host once wrote for the Sun back when it was a paper with spine, a fighter – an every-mans’ read.
http://torontosunfamily.blogspot.com/2008/12/money-is-toast.html
Was at the Duke tonight, brought Toy boy youngest son as cougar bait.
The stories we can tell.
It mesmerizes me, how the sheeple get so into this celebrity worship. Oh Garth bla bla bla,,,,
The younger generation are so screwed, for two reasons, one they know they are screwed, two there feminized and soft approach will get them nothing, although teachers told them it works. LMFAO
Grow some coconuts or learn to lie and scam, and trick and win.
I know my approach is alien to most. years of school and parents telling you to be honest, trusting and fair. Is just tax farm obedience slave conditioning. Your parents and you teachers are to stupid to see it.
Nothing will get you closer to loserdom than the above characteristics.
perhaps one too many too night, but my son lied to a high profile Lawyer 6 years older about his credentials, buy Sunday she will be doing the Oh Ah song.
what I have noticed is when ever I out a truth that is in one sub conscious. no one dares comment, or react too. Tells me how weak you peasants are,
Call me an asshole . But you all know in my drunken stooper I am so fn-right.
Great blog been a fan for years, despite your opinions on PM’s. China and Russia are both looking at a return to the gold standard and Iran will now be accepting gold for oil. do you not believe this send out a strong message?
great blog though, keep up the good work… BTW… F,F,F..FIR.. naw ain’t gonna do it.
25 year old with 300k, do yourself a favor and invest a few grand a year in traveling as much as you can and having a great time next 5 years. You’re only young once and you should enjoy it. Rent a few $5k a week villas and see how fast those big houses get old. Same with high end suites.
I live in Oakville, Westmount (Dundas and Bronte). Bought my town home 1.5 years ago for $389K, this past summer my neighbor in identical unit bought for $420K, now there is a unit listed for $492K. Crazy, but hope they get it. No signs of market weakening here. But that being said I know it can’t go on forever and I just had to loan my neighbor this months mortgage since he can’t make ends meet, he’s more blue collar than I am, but still even I find it difficult to make ends meet sometimes and my wife and I are white collar DINKs
19% return on equity in the US.
$500 bungalows.
Read all about it:
http://www.cnbc.com/id/46594352
It’s amazing how quickly the tide seems to be swinging towards the key message of this blog, including this intro to the March edition of the Boom & Bust American investment newsletter.
<>
Hello TurnerNation. I am the video guy from yesterday’s blog. How many of you would trust Garth as your own personal EBA if he opened a real estate company for buyers only like I think he should? Wouldn’t you want a buyer agent like him by your side before making the single biggest investment in your life? I personally think the man would be flooded with business. What do you say?
Even the Financial Post is slanting a bit towards anti-RE:
Stop moving so much, it’s ruining you (kind of a pro-renovation article vs. an anti-housing article)
and, here’s an interesting “investment”:
Australian daily home value index
(gee – I wonder if anyone will be shorting this sucker?)
does anyone not see my genious, some thing like that.
A year ago the drunken 3rd eye saw that the man was getting woried, he now wants to monitor all what you tax farm slaves do on line.
I came up with http://www.keysme.org to f him up a bit. Ya he can decomplie itbut he will need an army on youngsters to work the screans as I come out with a new algo every month.
All the job creations(fake stats) in the USA. You can thank me.
Fpr the man’s owner is scared to death about his head. Funny thing the russians are downloading 4 to one vs USA. think they are smarter
#16 Alain Savard on 03.01.12 at 10:05 pm
You should have hired you son or a modle to do the vidio, franckly you’re onld and ugly, sort pf like me.
You suck. Hire some grads they come cheap
@#7 vyw
Don’t mistake the guy for a racist, he is just misinformed. I grew up in the 70s and all us kids’ parents came from one part of the world or another. We might have spoken our home language to our parents but I assure you we spoke perfect english because our parents made sure we did, even if they didn’t. If you saw me today, you wouldn’t know that I was the son of an immigrant apart from my last name. my guess is that the kids this guy sees speaking a foreign language speak english pretty damn well.
Garth, maybe you need to screen your emails a little closer. Could be a nigerian email scam coming your way anytime.
25 with $300K in the bank and making $121k per year. yeah right. I call B.S. on that one. Anyone with that kind of money making or saving ability at that age wouldn’t be posting on a blog for financial advice.
Some graphs about Greater Vancouver Detached
This one is the sales. The first 2 months of this year is way lower than last year. YoY number doesn’t look good. However, it’s still around the average. And 2011 happens to have record high 1Q sales.
http://i39.tinypic.com/wwiteo.jpg
This one is the active listing in the market. It’s way above the average. Only lower than 2009. But remember, 2009 was able to absorb that high volumn and lift up the price quickly through the year.
http://i41.tinypic.com/j9q99u.jpg
Further look at this one of new listings. The new listings of the first 2 months are very high, which explains the high inventory of active listings.
http://i41.tinypic.com/30rqkqf.jpg
All in all, there’s nothing obvious telling me the market is crashing. Any comments?
I thought you only received emails for team buy and groupon. On wait, that’s my inbox. Am I classified as inspirational or dork? Who is the biggest dork commenter? Gotta be those first people.
Great post Garth.
I do have a problem blaming so much on ‘the boomers’. We’re not all alike. Some of us learned a lot from our depression-era parents about saving, investing and buying only what we can afford. I don’t think we’re in the minority but I could well be wrong, basing my opinion largely on my friends. We’ve been shaking our heads over this mess for a while.
With the great bankster rip-off of ’08 there was a lot of talk about stimulating the consumer with low interest rates – well you know it ain’t the ‘consumer’ aspect of personality that enjoys getting stimulated… Spend less – enjoy more.
All too often the press includes us with the a**holes who did go-big on SS and granite – the same ones who pass on a sense of ‘entitlement’ to their kids. They have totally screwed their kids’ futures, along with a lot of other young people, as well as messing up their own retirements.
Harper’s policy of divide and conquer does seem to be working in getting inter-generational conflict under way with his OAS announcements. A lot of flaming and blaming. Too bad it’s working for him because it is certainly tearing the country apart. It’s a grown up world out there and those we compete with must be ROFL that our leader succeeds by dividing us – so we can be more easily conquered on the world stage.
Garth you scaming little shit , I did the math 17000k 1% post well many are multy posters so 1% thats 170 posts. you get over 200..
shit it’s about right.
Ok Come on you fence sitting losers no comment lossers especialy teachers come too me babey come tell me how my grammer and speeling suck.
Contribute you scum
#12 j on 03.01.12 at 9:51 pm
China and Russia are both looking at a return to the gold standard and Iran will now be accepting gold for oil. do you not believe this send out a strong message?
it dose send a strong message, i am wondering what they will trade for food and medicine, oil maybe…
This is the intro to the March edition of the US based BOOM & BUST investment newsletter
“O Canada…
Haven’t You Learned Anything?
We do feel some empathy for the unsuspecting souls who were blindsided by the U.S. housing bubble that was never supposed to bust. Many were simply duped…
But the lessons American’s learned when our property bubble inflated and then burst have empowered investors and countries around the globe to avoid making the same mistakes.
At least, that’s what you’d think, right?
Turns out, that’s not the case at all. Canada is barreling headlong down the exact same path America took prior to 2007. They’re even using the same excuses and justifications about why this time is different.
It’s not.
This time is NO different. Canada, YOU are no different.
That’s why, this month, we found a way to make as much as 50% on the inevitable and precipitous decline of the Canadian property market.”
The truth has moved online, as you say, Garth. Thank goodness for the internet, because media is now a tool for *creating* reality, not for *reporting* reality.
Garth if you are going to delete offensive posts, can you also start deleting the shrill nitwits who call others “racist” at the drop of a hat. I actually think some of these poor hyper sensitive souls need to learn what what the word means and its correct usage.
Now somebody mentioning the fact that a particular neighbourhood has a concentration of people speaking a foreign language is racist? Wow, what a warped society we are becoming.
I saw no blanket slur against any one ethnicity so please explain to me how that was racist. This is getting out of hand.
RE: June 2015
Dear Garth,
Prior to June (mid-June) of 2015 watch for an acceleration in the trend of utilization of other currencies than the dollar for contracting internationally regarding goods, service, oil and minerals. By June of 2015 major changes in the international monetary system will be due. This will mark the dead-end of QE. The end of the road. The volatility in gold, silver and equities we have already seen is nothing compared to what is going to happen. The last man standing among asset categories as the new monetary system is introduced sometime post June of 2015 will be gold and gold alone.
Respectfully,
Lyle
You are a fruit loop. — Respectfully, Garth
#25 Hardassi on 03.01.12 at 10:20 pm
A harpo basher………………….
Lets look at what motivates him, he grew up in north etobicoke went to richvale high school. He was a pudgy little fat boy in school I bet he got picked on allot.
At the G20 he must have been so proud to round up all the kids, and lock em up for nothing. Boasting to his counter parts how great he controls his tax farm slaves. He fired the Great Gartho, why because Garth had a brain. He was an individualist. (God please no one take this as sucking up to Grath).
But he latched on to power and thornhill money (Sorry Linda Paterson) the little fat boy loves it. It’s revenge for him. Everyone is motivated by different things. Scary thing is Fat boys are scary….Especially when they are truly stupid
This really needs to be looked at:
http://www.theglobeandmail.com/report-on-business/international-news/pictures-of-irelands-abandoned-housing/article2354008/
То #22 not 1st on 03.01.12 at 10:15 pm:
“25 with $300K in the bank and making $121k per year. yeah right. I call B.S. on that one.”
I agree – smells like fish and looks like fish …
French people are rude! That’s a fact.
If stating the fact makes me prejudiced, racist and a realist then that is what I am.
A 25 yr old making 120k and has 300k in liquid assets? Call me a skeptic but I call BS.
….In this age of suspicion, most mistrust markets, banks and salesguys. And why not? The housing industry has kidnapped Global TV….
Funny thing is you think it stops at the housing market.
It appears Canadian and Australian banks are causing a stir in the international bond market by unloading pools of mortgage bonds that are ready to implode (of course bond buyers don’t know this as all they care about is that it’s stamped AAA with CMHC behind it). It all looks to familiar to what happened in 2007 when US banks unloaded toxic mortgages on the international market at the expense of AIG to cover insured defaults.
http://www.bloomberg.com/news/2012-03-01/credit-suisse-pays-almost-double-yield-premium-on-covered-bonds.html
То #22 not 1st on 03.01.12 at 10:15 pm:
“25 with $300K in the bank and making $121k per year. yeah right. I call B.S. on that one.”
I agree – smells like fish and looks like fish …
*********************************************
He could be selling drugs…but most of them don’t make it that long…it catches up with them. I used to live in Van and the young men hanging out on Robson in the middle of the day making their case by running/selling and cultivating drugs. I knew of a few who were living it up, had bags full of cash and were killed doing so. In the end it’s not worth it.
Otherwise I call total bull – one thing I know for sure in life is that people lie.
Looks like the Hangover 3 is playing at:
http://www.theatlantic.com/business/archive/2012/02/the-end-of-ownership-why-arent-young-people-buying-more-houses/253750/
Nothing annoys me more when people come to this pathetic blog and type in perfect English , whist perfect phrases and opinions designed to propagandize the person bets while being afraid too offend others. That politeness kind of makes me sick. Other than Google, face book and twitter. No one knows who you are.
Let it lose be-otch
Another great blog. Can you imagine if the newspapers and networks had shows about renting! There would be a show about going out for a nice meal while your landlord has to replace the old water heater. Or how you leave for a month to enjoy a safari in Kenya with the money you are saving renting and earning on the capital that is invested earning dividends and capital gains not mould and rust.
As the facts show, residential real estate might keep up with inflation so when you decide to own you are committing unbelievable financial damage. If you paid with cash then you have given up a lifetime of capital gains, liquidity and dividends for a depreciating asset that costs thousands to keep and cannot be partially sold. If you finance you are committing to paying the bank 2 to 3 times in interest what the property might appreciate at. The debt and interest are guaranteed, property appreciation is not.
But the worst part is that you have to live in a place that is costing you every month likely 2 to 3 times what you can pay rent for.
It is so painful to hear these stories of people wanting so desperately to believe that all that pain and misery they have endured owning a house may be lifted when they can sell and become the renters they should have always been.
Spoke to a friend of mine who is a teacher. They received the governments initial contract offer. The contract runs out in August. Salaries frozen for 2 years, vacation days reduced to 6 from I think it was 20, any shortfalls in pension teachers will have to make up on their own among other things. Austerity is just a word until it hits home. My friend is convinced there will be work to rule for sure in the fall and even a 50/50 chance of a provincial strike if the government doesn’t drastically improve the offer. Teachers are already being told to set money aside just in case. Not exactly bullish for real estate or the economy. The rest of the public sector is about to get a taste of this medicine. I’ve said this before and I’ll say it again. Leverage is great on the way up. But look out below on the way down. The bill is due.
Holy crap Garth, Smoking Man is off the chart! I can’t make any sense out of his posts. Maybe I should be drinking or smoking something! Sheesh, too far out for me. Ok I give up, I’m going south for a while and taking a break from the blog and smoking man and BNN and MSM and all the other crap that is out there. Buenas noches amigos!
#7 vyw on 03.01.12 at 9:42 pm
“Your first emailer is bitter for sure; he’s also racist.”
Calling a spade a spade is not racism.
This so called “political correctness” is ruining our country.
Ever heard of common sense? How about the truth?
@#7 vyw
There is nothing I dislike more than people calling other people racist and not understanding the word.
Racism:
1. The belief that race accounts for differences in human character or ability and that a particular race is superior to others.
2. Discrimination or prejudice based on race.
What did the first writer say?
1. His mother is an immigrant (fact)
2. Asians bought the house next to his parents (fact).
3. Asians and Iranians think the area is the place to be. (fact? possible belief. Racist? Hell no)
4. Children in the neighborhood speak other languages (fact)
I’m not sure where in his statement that he believes his race is superior. His bitterness is directed towards his peers who had their parents’ help paying for homes and/or school. Maybe he’s discriminatory against people who had help buying homes? Or people who have children? Perhaps he’s a kidist?
I do like your choice of words though. “Bro’ and ‘hood”
It makes your argument and advice that much sounder. Good job! I hope your education didn’t cost you (or your parents) anything. If it did, then I think you made a very poor investment. Worse than the ‘Asian/oriental’ people who bought the bungalow. I must be a racist too. I said Asian. Wait a minute……. Garth are you a racist too????
The third email – Garth is trolling again.
I receive them. I don’t write them. Too hinky for me. — Garth
#35 Blue Monster Lover of Cookies
French people are rude! That’s a fact.
If stating the fact makes me prejudiced, racist and a realist then that is what I am.
Your score: two out of three.
The power of this blog rests in its readers. Google tells me there are 17,000 visits a day, or 5.5 million a year. About 1% of people leave a comment. Some are dorks. Some inspire.
****************************************
FURST again! It’s a good day! For all you dorks leaving uninspiring comments, be more like me. I inspire like Smoking Man makes sense.
@#7 Hosencal
It’s become the most effective form of politically correct bullying for those who have an agenda: don’t like what someone says? call them a racist and then watch them clam up and retreat. Someone opposes your self serving agenda? call them racist.
It has also become a default crutch to pardon away any lack of success, usually used incorrectly by people who apparently don’t know what the word means.
second………
#44 Boomer on 03.01.12 at 11:19 pm
I used spell checker man what don’t you get
“There is NO WAY I could afford a condo anywhere in the GTA, let alone a house at the current levels. As with many of my peers, we have put home ownership and the prospect of starting a family on indefinite hold.”
The neverending fixation and obsession of Canadians with owning a house. As if a family cannot be started if you rent the same condo you’d like to buy.
No wonder there’s a endless flow of idiots willing to pay one million for wooden shacks that in Europe would be used just for livestock. They all must think that their sperm only come to life if they own. Renters’ sperm are either dead or swimming backwards, so starting a family is not possible.
ya but garth you all mighty and right, I don’t understand why having 10 % in gold is not a good idea, what is true diversification that you advocate and not support gold or silver as part of that portfolio.
You have many followers and your advice to them is locked and solid, kind of like JIM, BUY BUY BUY.
We the miners of Canada have not needed a bail out and many blue chips miner are paying huge dividends.
And yet you refuse to even go there with your followers that Canadian mines and extracting the product gives many a very good life where there is no condo.
If you said YES Followers buy ten percent of your portfolio then it would help and promote a Canadian way of life.
Northern Ontario and many communities have been devastated years ago, so would it not hurt a little to say ya hurra to the mines , ten percent into gold and hope you never use it.
If been too Asia and maybe we don’t need it here or want any of it , but they are eating it up fast, and there is 800 000 000 pour people that can now afford silver which they can now have. They are not only buying it because of the silver, it is a symbol of their next evolution, and the coins are the most beautiful artfully decorated, it’s a good luck for them, guess what bear is on the coin.
They were not allowed to own gold and silver up until a few years ago. Today, there is a 100 million dollar paper contract on silver, and growing, soon those hard working, heavy saving chinese will want a piece of that pie, Yes moving on up.
I paid $60 for my silver Panda after waiting over an hour in line to buy some Chinese silver.
Can you not at least pump up the hardworking miners and maybe admit that everyone should have some.
1 oz silver right now very cheap gift for someone, it is a pure element on the periodic table, it’s got a cool picture on it, use could use it as calibrated weights for a scale, if we consume then someone has to produce, why not pour the next billions bail out on other industries that will sell hard assets for paper dollars. In the USA they DON”T HAVE TO DO ANYTHING OR MAKE OR SELL and they get to make money, it’s funny, I sure work long and hard for my coin.
As you have said many times, don’t put all you money into one asset, that comes from you, so why not pump the Canadian Maple silver coin, one of only two in the world that is .9999. It is a weight standard at this point wow another bonus for buying my Canadian coin, I am helping my country.
All I am saying is, pump it up a little . We bailed the banks here and the car industry. Canada is the world leader in mining and it has a proud northern heritage. So I ask you how as a Canadian citizen can you not add or help this sector. maybe use a few bucks to play wintario!! or maybe help develop possible new mine and jobs.
I would rather have my money trying to help or develop a Canadian company than have my money in the New York Stock market, too bad my pension in there I have no choice, company run.
I hear words like Casino, rigged market, high frequency trading, 70% of the trades is logarithm trading million of shares in a nano second, and the rest of the 30 % in the NYS is our pensions being auctioned off daily.!!!
I am from the mining industry, we didn’t get a bail out as a matter of fact there seems to be another terrible obstacle for a mine over come, and that is the market manipulation. I now believe after seeing MF Global, that nobody is safe anymore in the papers market, a 130 year old company and was suppose to be the safest most secure trading, just like Madoff, only the rich were allowed in that club.
I have a good question, why did Canada sell it’s gold and with all of the equity built into Canada with the natural resources , why can’t we make our own money, Utah is doing it, and it works, but if the Fed make money for the USA who makes our money?
Read you all time , your the best, tell it like it is, but on the precious metals I think your soft, goes with the beard.
What happens when millions of boomers all start selling off their homes to the far smaller and less wealthy generations working their way up the food chain? The baby boom generation who “have driven up housing demand and prices for three decades” could have the opposite effect once their mass sell-off commences.
http://www2.macleans.ca/2010/12/01/what-the-boomers-are-leaving/2/
Great post tonight. Lives are so much more than $ issues. the 1st has come and gone and no rental found so i am stuck in hovel for another month. So, this was 2nd rental seeking binge in 5 months with 0 success. i am nearing giving up on van entirely. I absolutely NEED a decent place to rent at a humane price. My life savings depends on it. If i cant find decent digs to hold me over till the market comes back down to earth i know i will snap and buy. hungry people make poor shoppers and this dump is making me grumble louder every day. So better rental options at home, but entails resigning, but would be better able to ride it out there. summers are nice……thinking…….
Renting in Vancouver feels like an Atheist in the Sunday congregation. You’re surrounded by believers but the facts just don’t add up.
Can anyone believe this?
Mark Elliot Zuckerberg 28 yrs old, (born May 14, 1984) is an American, as of 2011, his personal wealth was estimated to be $17.5 billion making him one of the world’s youngest billionaires.
30 under 30
http://goo.gl/aAyND
How long has this 25-yr-old been maing $120k/yr to save up $300k?
$120k pre-tax is only about $67,500 after-tax in BC. (43.7% tax rate).
And, with say $2000 of monthly expenses, that leaves something around $20k/yr left over for investing etc.
Did this guy only buy Gold, Silver, and Apple?
I call B.S., or that $300k is all inheritance.
(whoops – meant $40k/yr left over for investing etc.)
You said it Garth – I’m so f#%*ing angry that RE agents have encouraged sellers to gauge my generation for a home. Yes, a home – not a quick flip investment, or crappy reno rental project. I’m talking a place with heart and elbow grease, a place to be proud of, and take refuge in. Where scumbag landlords can’t kick you out, and you can grow veggies in a garden and make some stuff down in the basement. Family meals and house guests, cozy times.
My generation, at least in Toronto, is priced out of this “commodity” and so we make due. Renting is alright, but since I’m not investment savvy I keep my 90k downpayment sitting in savings.
Discouraging, but maybe one day soon people like me will be able to afford a home of our own.
The following was posted on “Kids in Victoria” blog in one of the real estate threads last night – assuming it’s talking about RE in or around Victoria.
It speaks to what Garth says about how a house can turn illiquid and inconvenient.
—————————-
I think if you asked me in 2006 about prices i would have thought they would go up or be stable forever.
Since we have owned our home (about 6 years) we have thought about selling several times and have brought in a few realtors to evaluate.
It is now worth much much much less then it was a few years back and although it is still affordable and we still have some equity, it is no where near what it was before.
Because we put some (good) debt in with the mortgage when it was at a high, if we sold today the realtor fees would leave us with not enough to put down a comfortable down payment on the next house. This sucks.
So we are doing what so many people are doing and paying down down down our mortgage and being patient until we have paid enough to cover closing costs and put a good amount down. We don’t want to buy a bigger more expensive place, we just want to be closer to work.
This is frustrating for us as we never thought owning a home would make us feel so stuck.
Sometimes I think I’ve won the genetic lottery. I can insult French people – because I’m French. I can insult English people – because I’m English. I can insult aboriginals- because I’m aboriginal. I can insult Acadians (French with a twist) – because I’m Acadian. Well, I guess I can’t insult Black people – oh wait a second. . . If I go back far enough studying the family bloodlines, apparently there’s some mixture here as well.
Sure helped that my great-great-great grandfather was a sea faring German that founded two major towns in Nova Scotia and had a Genghis Khan mentality.
Now Asians on the other hand, can’t find a ticket. No problem, just need to find a nice Asian girl and create an illegitimate child. That child will then have full immunity to political correctness. Ah, I guess I’ve found something to work on rather than to hopelessly save on a down payment for a house.
I expect nothing less than full backlash and political upheaval from this post. If I don’t receive numerous condemnations from the politically correct police – I’ll be thoroughly disappointed.
#54 gmc on 03.01.12 at 11:47 pm
who are you, mint man?
silver is industrial metal, forget about those 20 for 20 with polar bear. Polar bear is taken by coca cola long time ago…
and read this for highfriquency treading
The Latest Market Craze: Stock Trading Robots Reacting To Stories Written By… Robots
#52 Smoking Man—not talking about spell check just talking about making sense of your posts! WTF are you trying to say? If you could put your thoughts and opinions into understandable prose all of the blog dogs would be grateful. Maybe we would agree with you if we understood what you were saying. Just a thought .
#7 vyw
P.C. folks like you get my ire up.
My other half is a financial guy…a rare moral guy who tries to keep his clients from ruin, save for hard times, and prepare for the good….
Yes, his name is Thor.
Thor met with a young couple tonight, flush with coup,e million in cash. The male half was bought out in a computer firm. They lay their card on the table…
‘what do you think? Our friends say we should buy condos, and rent them out”
My husband, Thor…bit is tongue not to say, ‘Your friends are morons”
“Garth Turner”
Followed by, “just google Canada housing bubble”
They were warned.
Thanks for sharing some of your mail Garth. Clearly these issues you raise each and every day threaten the lifestyles of large numbers of people. Most probably have no clue. Genuine stories like these plus the interest in your daily postings suggest some people identify with the potential economic disaster that lurks and can hopefully be inspired to avoid making a bad decision. The comments section does have some inspirational content. Too bad most of the dorks are regular contributors. Does it really matter who posts the first comment?
Here is one question that I need to ask everyone:
Why is it that the government is not raising interest rates to keep this housing bubble from growing too big and thus risking the health of the overall economy?
Why is the government NOT doing anything, tell me your opinion on this?
For what it’s worth…
The company that touts itself to be “Calgary’s largest custom home builder” is in a Calgary courtroom this week. There is a high possibility of a queue of lawsuits against them for their “activities” during the last Grand Boom.
It would seem that a number of well-heeled home owners started talking over the last couple of years and determined that they were all being hood-winked to one degree or another.
I dealt (socially) with the company’s principals a number of years ago and was highly unimpressed. I felt dirty after talking with them. I was always dismayed at the number of people lined up and clamoring to drop well over a mill or two to have a house built by these guys. I knew a number of couples whose dream it was to have a (Google The Company Name) custom home.
In any case, this is a Battle Royale of millionaires against millionaires. They can beat each other senseless for all I care.
The lesson is that if “these people” can be sold sub-standard goods and services when they are paying a premium to avoid sub-standard goods and services, then you can guess what the rest of the masses got during the building booms…
Everyone else’s mileage may vary.
Hope Nostradamus has not kicked the bucket. Not seen his posts for many days in a row.
Lies, Lies, and more lies.
Why is it always the case that a man who is simply earning $35,000 per year comes here to this blog and tries to tell everyone that he’s earning $120,000 per year?
My case in point was that man named ‘Long time reader’ who said that he is 25 and earning a decent paying job, $121,000 last year.
Nobody, I mean NOBODY is earning that kind of pay at a young age of 25, and I mean NOBODY !
Get over it. — Garth
Not BS. I know lots of ppl 25-30 yr range making 120++.
Legitimately.
–
#213 When I come to this blog and it says “0 comments”, I know that 25 blogdogs are typing their 1st comment on 03.01.12 at 3:44 pm — Hi there (name too long to print).
Life has become abundantly busy for us, which is fine as we are both retired, but I don’t have time to read the comments, just Garth’s posts and scan the comments.
FWIW, there’s a few things to keep in mind with all the BS happening in the MEast, and various other places:
1. By way of deception (deceit), thou shalt do war.
2. Follow the money (and all will be revealed). Not too hard to figure out who is causing all the trouble, and it ain’t Iran.
The same group of people who caused so much trouble in Libya and now Syria (TPTB or Rothchilds and Rockefellers) want Iran’s central bank as well as their resources. Cheers!
*
Global Monopoly and For those who believe the BoC is publically owned, another POV. “In a recent communication received from the BoC, a representative stated that the BoC “is not a public corporation.” The BoC is, therefore, a private corporation! But who owns it?”
*
disciple, SM — Nice melody, good tune. #2 in UK charts — Gotye — Somebody I Used To Know
What happened to the HAM in Vancouver Real Estate fraud. Here may be the answer.
http://whispersfromtheedgeoftherainforest.blogspot.com/2012/03/wheres-ham.html
What a beautiful and soulful post from the first fellow in his 30s. My greatest regret is that my generation has left nothing to our children save for annihilation. To grow up in a world they don’t fit into and never created.
Call your MP for prime-minister resignation.
Reason: It is a national shame that young families with 2 well paid jobs can’t afford to live in Toronto. Do they expect everyone to become a thief / speculator in this country?
Solution: Let’s bring an independent, fresh, honest, sincere YOUNG prime-minister, we waited historically too long with this one. Was not worth a dime.
trend: All in all, there’s nothing obvious telling me the market is crashing. Any comments?
I thought 2012 looked very average on the charts but I don’t trust the the real estate board that produces them.
Blue Monster: French people are rude! That’s a fact.
pretty funny, here a story I posted last year – almost exactly a year ago:
I want to tell you a story of my brother-in-law. He is driving across the Trans Canada and goes into a Tim Hortons dans la belle province. La serveuse wouldn’t serve him because he didn’t speak French. I told him I could have handled the situation better not because I’m better in jujitsu but because I’m better in French.
http://www.greaterfool.ca/2011/02/11/getting-out/
neo: Leverage is great on the way up. But look out below on the way down. The bill is due.
yep
Here’s another story: my son grew up with a friend whose parents have now decided to sell. They are truly serious – they bought another house out of town (Ottawa) and the original house is staged. They are asking $419,000 but the house has been on the market for over 30 days. The house is identical to mine. We’ll see.
Towards comment number 6, VYW:
Anytime someone says anything about the constant foreignization of Canada there are bullied and shunned as a racist, ignorant or entitled. I am so sick of it. Our culture is being changed very quickly, Canada is being sold to foreigners who bring in money and demand to Canadians to submit to them. Most countries have laws on foreign ownership and immigration. (I am not saying immigration in of itself is bad – but we have way, way too much of a ‘good’ thing).
I am so disheartened and angry that a 30 year old professional is being called names because he cannot understand why he cannot afford live where he grew up or start a family.
No other country would take this. Canadians are now the foreigners in Canada. We are certainly outcasts.
So here is a question VYW – if his parents emigrated from China or India instead of Ireland would you have insulted him then?
Lies, Lies, and more lies.
Why is it always the case that a man who is simply earning $35,000 per year comes here to this blog and tries to tell everyone that he’s earning $120,000 per year?
My case in point was that man named ‘Long time reader’ who said that he is 25 and earning a decent paying job, $121,000 last year.
Nobody, I mean NOBODY is earning that kind of pay at a young age of 25, and I mean NOBODY !
Get over it. — Garth
____________________________________________
I can show you a place where damn near everybody makes that much or more. Many of them have less than grade 7 education. I am smart guy that is CFP for many of them.
gtrz4peace and Oceanside:
I’m sure that you are both good public servants.
Teachers strike starts Monday…thank goodness that someone is looking out for our kids.
“…but this pathetic site proves to me that truth now lies in peer-to-peer communications.”
You are right on that aspect. Congratulations.
But we lost another champion of that truth today:
http://biggovernment.com/lsolov/2012/03/01/draft/
@#35 Blue Monster Lover of Cookies
“French people are rude! That’s a fact.”
That’s not true, they are very friendly, especially with kids! Don’t believe me?
Watch this video…
http://youtu.be/oJkYQd54xCI
Ok, I’m going to be serious for a minute here. I know folks think that the 25 year old making 120 is BS but I pretty much did the same at his age. Although you can’t tell from my ‘insightful’ comments, I’m relatively capable and can say with certainty, there are 25 years old who can make six figures. Speaking from experience here folks.
Waterloo Resident: Why is it that the government is not raising interest rates to keep this housing bubble from growing too big and thus risking the health of the overall economy?
not only the Government of Canada, but also the political parties: the Liberal Party of Canada and the New Democratic Party. Any party that proposed substantial higher interest rates would also have to explain that would lead to a marked decline in exports, a marked decline in the real estate markets and the construction industry. What’s the expression: the third rail of politics?
Read and stop lying to yourself, better accept the truth and prepare in the remaining weeks left:
Read all articles (slap yourself to reality):
http://www.ndir.com/cgi-bin/stingynews.cgi?Topic=6888&Name=Why%20Canada's%20housing%20bubble%20will%20burst
To this blog several years ago, I contributed a story about my wife and I living in Burnaby, where we grew up. I described how, in a period of 4 short years from 2002 to 2006, our entire condo building had transformed from 100% “Canadian” to 100% wealthy immigrant. One day my wife came back from the playground around the corner and sadly asked me, “18 kids in the playground. None can speak English. Our son is left standing in the corner – ostracized. And there’s no way we can compete with all this offshore money to upgrade to a house. Who are these people? What’s going on here?”
I warned on this blog that something was going on. Canadians were all moving away from Burnaby because they were being priced out. And, from speaking with our new neighbors, it was clear that offshore wealth would continue to flood in and jack up prices.
In response, Garth effectively responded that immigrant inflow was unconfirmed and insignificant and that I was probably just a racist anyway. I was condemned by many of the politically correct here for simply speaking the truth… stating what I and many of our close friends were observing.
And now Garth writes to a young fellow with the exact same observations that I had expressed here 4 years ago, “Your bitterness and regret are well-founded…”?
I have felt like one of the guys who warned of the impending attack on Pearl Harbor, yet was scoffed and rebutted. Now I can finally state, “You want your confirmation? There’s your confirmation.” Because our nation’s eyes were closed, an entire generation can’t afford a house.
My comment to this guy was about boomers, not immigrants. Obviously. — Garth
I appreciate reading the stories from your mail. Life isn’t simple. This blog gives everyone a chance to hear many perspectives not just on real estate but other financial areas.
Media is creating the news and not reporting it. Thanks for this blog and giving us more food for thought.
To the guy renting at the Woodwards building. You’re in a great situation and have everything in your favour. Get a lease signed if you can.
The Woodwards building has not done well for investors and prices have been falling. I have a friend that owns there and works with me (he’s about your age) and has aspirations of selling to get his dream house. Problem is the loss he would have to take (and the fact that he then could not afford the house).
Rent . rent . rent – – At the rent you’re paying – the place is worth $330,000 – so make your offer and see if they take it. Also – ensure you have your funds fully invested – you have no reason to be risk averse – if you’re making $120K at 25 – you’ll do fine.
More examples of how the times REALLY have changed this time. Buyers with cash. If mortgages get lowered to 25 years just watch folks as the prices will first sag then skyrocket as the pros mop it all up. Loving it everyday and in everyway. BPOE
To Smoking Man… I know it must be frustrating for you to have so few comments on your posts so I thought I would give you some attention and advice.
You really should improve the quality of your booze – think “good single malt” rather than that Johnnie Walker Red swill. And you really do need to stick with your spell check – so we can better appreciate your rants.
#69 Waterloo Resident
Conflict of interest; the government has baby boomer votes to collect. Democracy is the tyranny of the majority. Contrary to what you’re taught in school, democracies have created some of the most destructive countries and governments. From the crude Greek Spartan Empire to Adolf Hitler; democracies have efficiently massacred more humans than any king or queen ever could.
The baby boomers are the majority. They want to become rich without having to work (through appreciating house values); the young are the minority and will starve. It’s truly that simple. The government’s job is to win the election for another 4 years and that’s done by capitulating to baby boomer demands. Doing what’s right for the country rarely facilitates winning a democratic election.
That is why throughout history the only governments that have ever worked have been benevolent dictatorships – however benevolent dictators are hard to find.
As to what a young person can do individually about the matter? Perhaps if we quit worshipping individuality; and the young pooled together their limited resources that would be a start, but I wouldn’t be expecting that anytime soon – if ever. Too many young people are brainwashed into thinking cult of individuality – capitalist and good; community building and pooling resources to achieve a common goal – communist and bad. So given the political situation – I guess the best a young person going solo can do is hope to hitch a ride in whatever they can foresee the government pouring resources into for the baby boomer demands. At the very least – this would allow you to take back what’s been stolen from you. In other words, accept the fact that playing the speculation game; rather than old fashioned hard work – is the path to wealth.
The next decade we’ll have a pile of old people. What do old people need/want? What/how will the government cater to those demands? We know the government will subsidize any industry that will directly support the boomer mass; meaning such equities can’t/won’t fail. Invest in funeral homes, nursing homes, Viagra, wheel-chairs, etc. Hitch a ride and hang tight – it’s all you can do.
Now if you truly want to be free – you’ll have to overthrow democracy and install – anarchy maybe? Sorry, you can’t support democracy and expect to be nothing more than a mere spectator to whatever actions the boomers elect to undertake.
@ #72
I broke 100K in earnings when I was 23, never looked back.
Agreed. Thank GoT for all who ‘adjust’ the daily drivel. I read the newspapers and scroll down to the Comments to find out what is true (explain again WHY journalists ask bankers, mortgage brokers and realtors for their views on RE?). And what’s the point of listening to CREA or VREB ….when only the blog dogs confirm what I SEE… And don’t wake me when CHEK reports their latest… I’ll catch up with Canadian RE on Greater Fool… or the Economic Analyst… or US, Australian or UK sites….
Took a trip last summer to the mighty Toronto, some areas in the north of the city beginning to look a lot like Richmond, BC.
You know what I mean, I guess this Asian thing is like a wave, saw it personally hit like a tsunami here in Richmond in the first four months of 2011. The house feeding frenzy took off to ridiculous heights as the those “stupid” buyers offered above asking prices without doing a simple calculation on replacement cost. Of course, the local builders were only too happy to oblige.
In addition, a couple of companies funded by eager HAM bought a large number of “tear downs” with a small deposit and 5 month long posession dates WITH rights to assign the contract. And sure enough, those ASSIGNMENT RIGHTS got exercised. Guess is about $5 to $10 Million was sucked off as profit. Wonder if the CRA knows about this. The Govt stands to make a bundle. But, you know, maybe the income does not even get declared here or anywhere.
In 2012 so far, sales plummeting to 2008 level, give it another 3 months and see if the red ink starts flowing uncontrollably.
Watch out for speculators and manipulators. There are times when it’s truly better to be a spectator.
No Virginia, real estate doesn’t go up all the time! It’s like that thing called a “wave”.
Awesome post Garth, educational, insightful.
For all those that think making $120k at 25 is not possible…I call BS on you. My nephew is exactly 25 and is making $140k per year driving heavy equipment in Ft. McMurray – yes indeed, get over it.
#28 harrydog
. . . we found a way to make as much as 50% on the inevitable and precipitous decline of the Canadian property market.”
===================================
. . . Harrydog, don’t hold out on us blog dawgs . . . this like the old cliff hanger at the end of the movie . . .
dear garth get real this is the best country in the world all the immigrants will keep on coming and canada will keep growing so stop your doom and gloom talk !!
Nobody, I mean NOBODY is earning that kind of pay at a young age of 25, and I mean NOBODY !
Wow you guys are a bitter bunch. I made that at 25 when $120K was worth something. Why do people here think that one has to be doing something illegal to make that kind of money at 25? Sales, Oil Sands, A ton of trades people who work their butts off, business owners.
Just because you never made anything of yourself is no reason to dump on others and call them liars.
I’m 18 and have been working since 13……..I make $180,000 after taxes and I’m thinking of cashing out my multiple brokerage accounts. Combined with my $425K in cash and the proceeds from the brokerage accounts I should have a cool million bucks.
Is now the right time to by my “Dream Shack” in Van or TO?
Yes, despite reading this blog since 2007, I bought a bigger house in 2008 in Edmonton. Can’t upkeep it.
Now I’m doing even a sillier thing…. I am going to move to Vancouver West, rent. But renting out my house in Edmonton…..
#58 NoName
No way, there’s no way a 20-something can legitimately make more than 5 figures, I mean, everyone knows that!
Hey, anyone know if Mr Zuckerberg still rents, or did he finally spring for some equity like a respectable adult?
BTW Garth, thanks for the wonderful picture.
And here’s the GarthFAQ for anyone who’s puzzled by one of the following terms.
————————————————-
416 — The City of Toronto.
Amazons — Beautiful warrior women, kept by Garth at the Bunker to type articles, keep things shipshape, throw out trouble makers, etc.
Bandit — Garth’s faithful hound.
Blog Dogs — Garth’s faithful followers.
Boomers — Anyone over the age of 50.
Bunker — Garth’s home and refuge for the time when civilisation collapses.
C — Mark Carney, Governor of the Bank of Canada.
CHMC — Canada Mortgage and Housing Corporation which insures mortgages for the banks.
Depends — Adult diapers.
Doomers — Anyone who thinks that civilisation is about to collapse, the economy is about to crater, house prices are going to crash, etc.
Dorothy — Garth’s wife and Queen of the Amazons.
ETF — Exchange Traded Funds.
F — James Flaherty, Minister of Finance.
GFC — Global Financial Crisis.
GTA — Greater Toronto Area.
H — Stephen Harper, Prime Minister.
HAM — Hot Asian Money, allegedly ill-gotten gains used by Asian immigrants to buy property.
Harley — Garth’s favourite brand of motorcycle.
HELOC — Home Equity Line Of Credit, bank loan backed by house as collateral.
Horny – Desperate to buy a house.
HouseAgeddon– The time when house prices fall.
Hummer — Garth’s main mode of transport.
Lawn Ornaments — People hired to look like eager buyers at an Open House or other buying event.
MIL — Mother-in-law.
Orange Guy’s shorts – ING Bank’s high interest savings account.
Porn — Films or articles or pictures intended to make people want to buy houses.
Preferreds — Preferred shares in banks.
REIT – Real Estate Investment Trust, an organisation which rents out buildings and pays the rent to its shareholders.GTA – Greater Toronto Area
Rule of 90 — The principle that you shouldn’t have more than (90 – YourAge)% of your net worth in housing.
SFH — Single Family Home.
[email protected] — The Nice Lady At The Bank.
VanCity – Vancouver.
Virgins — People who do not yet own a house.
————————————————-
Let me know if I missed one.
Offensive, racist, foreign languages, ethnicity….
Well i’m a white, Canadian born, prairie boy who worked in TO in 2010, I felt like a minority.
Why is it always the case that a man who is simply earning $35,000 per year comes here to this blog and tries to tell everyone that he’s earning $120,000 per year?
——————————————————
I read this blog regularly and you see more of it then not, I find it hard to believe myself.
I think GT likes to post those, makes everyone on this pathetic blog feel even more pathetic. lol
#22 not 1st
you would be suprised, some people are better with their money than others…25, on my way to 200k, and making more than him…it doesn’t matter what your financial situation is, if your 25 your living these best years in a tough time: overinflated housing, rising taxes, supporting the boomers, etc.
the more you have the more advice you seek so you keep on that road…
If social media is really put into perspective, the most important aspect of it is that while it exists, building or maintaining any kind of economic ponzi will be impossible. And now we can’t go back.
Consider the plight of the boomers. They thought a “central bank” and a “treasury” were something very different than they actually were-are. The housing “all-in” comes from that ( and much more fantasy).
In other words, the cat is out of the bag everywhere. Yes, we have a collective trance, but now it’s not all the same kind of trance. Trickle down fraud coming from the Big Six can’t be implemented now that social media exists. Communities drive things now. Collision course in process.
Human beings without debt are invisible and non-performers in the rigged game. Without speculative RE
( both commercial and residential ) as a feeder to play the rest of the ponzi scheme, there’s no game.
If the water level got low enough, social media would instantly transform into Garth x 10,000. But exposing the whole thing.
It’s not going to be allowed. All casinos have the same foundational rule: House wins.
Big six and the power ecosystem around it sees the middle class as a myth, and it’s players as deluded fools.
As long as those fools use social media for sending pictures of a family picnic and the Justin B. concert, the ether is still in the air. No problem.
Try truly testing the actual condition of “representative democracy” without breathing the systemic fumes…using social media…outside the context of the ponzi scheme. At a mass level.
It’d be shut down so fast, your head would spin.
Harlee on 03.01.12 at 9:59 pm
Westernman:
Who cares what you think about civil servants or Beach Girl ?
Just tell us when the weiner roast is…
____
Major funny. Had to let the Jack Russell out for a pee. No parakeets as yet. Just love being here. Daily chuckle.
If your 25 years old, making $120 G a year and have $300 G in the bank, you haven’t lived.
Your only young once, you get old fast and you can’t take it with you.
Back packing around the world, f uking everything that moved, eating majic mushroom omelets for breakfast and stumbling down to white sand beaches are the best memories of my life.
#39Don
try a degree, a lot of luck, and a good corporation
but yeah, 300k is pushing it… he’s probably selling drugs or exaggerating by a 100k;)
Allo blue monster, je t’aime encore.
Small steps paraphrase:
Canadians are losing their culture and other cultures have rules to protect their culture, so let’s be like other cultures. It’s like rayyyyyy eee yain on your wedding day and so forth
Garth’s Post
Just the occasional deleting of a nimrod.
___
Hey, I resemble that remark. LOL. Shame on you, Grand Master.
You are a fruit loop. — Respectfully, Garth
that’s it, this was the one
Investment banking grad salaries still 130k base, pre any kind of bonus. Chef in a remote mining camp over 100k. They are not yet 25………don’t be jealous simply because you never earned that kind of money.
#42 Nuke
Great comment!!!
#35 Blue Monster
You pissy pompous prick. English people are so uptight while they take it from behind from the Queen of England and pretend they like it.
@ #43 neo:
The fact that you confused “sick days” with “vacation days” pretty much somas up why people lose sympathy for the teacher’s unions at some point.
I wish that I got the entire summer off, and still “banked” sick days as cash!
Yes – teacher’s are important, just like police are important… But, you can’t constantly increase salaries at rates that are much higher than almost every other sector.
#70 Another Albertan
Googled Calgary custom home builder and got “Astoria” as my first hit. Is that it, or is it Jayman? (a name I know from the past)
Garth,
You are so right. With the advent of on-line media which allows people to communicate anonymously, many people are not afraid to tell their personal stories and in doing so, give real life experiences to others.
I must admit that I too am extremely mistrusting of so called professionals and I must constantly supervise and question people who I go to for professional help (accountants, bankers, building contractors, plumbers, electricians, doctors etc..). It is extremely tiring and I would love to be like my parents and their generation of “I don’t know why I am taking this but the doctor told me to take it so it must be good for me” … implicit trust without question leaving more time to devote to other pursuits.
We can no longer do this, however, and our age of innocence has been lost to a flood of available information that we must sift through. Trusting in professionals is no longer a sufficient excuse if we get burned because we have plenty of information that we can access in order to properly inform ourselves. People’s experiences are just another form of that information that we cannot ignore and many of us do indeed find it useful and more meaningful perhaps than digging through other types of impersonal information.
I am very much like that first individual on your blog and my solution was to get out of the big city and go and find a beautiful place to live. I first moved from the greater GTA to Montréal and when Montréal became a cesspool (quite unfortunate but you can’t even drive on the overpasses these days without wondering if you’re going to die) I moved to the Eastern Townships. I feel that I am now in a place which truly suits my ideal lifestyle (country living but with all of the amenities that a big city gives you and a wonderful much safer community to boot). In my case, it was more of a lifestyle thing than a financial thing since when I was around 30, houses were still affordable in the greater GTA (I just couldn’t stand the culture, if that’s what you would call suburban living).
As for the Vancouver gentleman who is 25 years old and thinking of buying his condo. His attitude reminds me of a woman in her 30’s who is thinking about having a child because her biological clock is ticking. Hmmm .. I have never wanted children, I don’t like the idea of having to support a child for eighteen years, I couldn’t bear going through childbirth and I have no one to babysit .. should I go ahead anyway ?? For heaven’s sake, listen to yourself, man ! Sounds to me like your decision is quite simple.
Great real life experiences Garth.
HHHW
@ #104 Derek R
Great job!
You forgot 1: BPOE = Big Piece Of Excrement, Biggest Pumper On Earth, or simply “greatest fool”
One of the houses we’ve been tracking for a couple of years (we’re extremely patient), owned by the most intransigent species of boomer has just seen a 5% price reduction. Not huge, as this guy thinks he’s sitting on the holy grail of RE. He’s now in one of the first stages of the rudest of awakenings. Wife is dying to move but he wants his “price”. Not going to happen. Never.
Hey, anyone know if Mr Zuckerberg still rents, or did he finally spring for some equity like a respectable adult?
Do You “Like” This? Zuckerberg Rents!
http://goo.gl/puHej
i am foreign, my wife is foreign, my child looks forighn, and all of us are borne on diferent continents, no word of the lie here.
can you believe this?
Hi Garth, still flying? FYI an article:
http://gmancasefile.blogspot.com/2012/01/tsa-fail.html
TSA article by an FBI agent
The Transportation Security Administration (TSA) was formed to ensure America’s freedom to travel. Instead, they have made air travel the most difficult means of mass transit in the United States, at the same time failing to make air travel any more secure.
…
I have a unique position from which to make these statements. For 25 years, as many of readers know, I was an FBI Special Agent, and for many of those years, I was a counter-terrorism specialist. I ran the Los Angeles Joint Terrorism Task Force (JTTF) Al Qaeda squad. I ran the JTTF’s Extra-territorial squad, which responded to terrorism against the United States or its interests throughout the world. I have investigated Al Qaeda cell operations in the United States, Pakistan, Indonesia, the Philippines, and Thailand, just to name a few. The FBI and the CIA provides the lion’s share of actionable intelligence on threats to the Department of Homeland Security (DHS) (the mother organization of TSA), so that they can tailor security screening to the actual threat.
To the first guy in your post, Garth, I say:
RENT! It’s okay. You dont have to OWN a home…having kids or not is your decision. It should not be based on whether you can buy a house or not. Maybe you dont really want to sacrifice that much for the kids you might have in the future.
There’s an undertone of whininess in your writing. If your parents dont want to help, it’s their choice…
Garth, I’ve been reading this blog for a year or so, and I’ve found it very informative (except for the comments from the dorks). But I’m curious about something. You seem to consistently state that owning a home is bad, and renting is good. I could be wrong, but I don’t remember you ever saying that it makes sense for someone to own a home. Surely there are circumstances where home ownership makes sense. Seriously, we shouldn’t all be renters, should we?
I have never said real estate ownership is bad. I have said do not have the bulk of your net worth there. – Garth
#25 Hardassi
You are so right with your statement below. That is always their method and I only hope people wil realize the snakes tactics. Use your heads people and stick together we are all on the same side.
“Harper’s policy of divide and conquer does seem to be working in getting inter-generational conflict under way with his OAS announcements. A lot of flaming and blaming. Too bad it’s working for him because it is certainly tearing the country apart. It’s a grown up world out there and those we compete with must be ROFL that our leader succeeds by dividing us – so we can be more easily conquered on the world stage.”
@#35 Blue Monster Lover of Cookies
Perhaps you should look within. Two summers ago my husband and I travelled in Quebec for 4 days. We are unilingual. But without exception everyone we encountered treated us with kindness, courtesy and unfailing helpfulness.
I am thinking right now of the good humoured young woman (also unilingual, though not in English) at the zoo in Quebec City who took my arm to help me over a barricade so that I could get to the gift shop, in spite of the fact that I had used very poor high school French to ask for the cake shop. She and I shared a great laugh; but I suspect I was the subject of one of those “goofy touristes” stories at her dinner table that night.
ummm…. to all the people who are “complaining” about foreigners changing the landscape of Canada.
Who do you think Canadians are????
Did you ever take history in school? Grade 7 history…that should tell you. I’m a “Eurasian”. All four of my grandparents were “immigrants” to this country.
Also, there are lots of 25 to 30yr olds making well over 100,000/yr. Why is this not believable????
What’s unbelievable is that this young man has $300 000 in savings…
#118T.O. Bubble Boy
Who said I have sympathy for them? I actually think the exact opposite if you actually read what I wrote instead of jumping to conclusions. I said the “bill is due” AKA the party is over. Time to rollback something that was unsustainable in the first place. You can’t have a kindergarden teacher topping out at $94,000 a year. At the same time austerity isn’t just going to effect the public sector. It is going to crush the tax payers as well. We all sat at the trough so we will all be lambs to the slaughter.
At #58: No Name… ummmm Where have you been? The entire world knows that Mark Zuckerberg is a multi,multi billionaire.
Alain Savard, what’s your favourite soft drink? Dr. Pepper?
Don’t you know that Garth is part of the illuminati? How do you think he finds out this information? You’re on to him though. You’re like Tom Hanks in the DaVinci Code.
I’ve located a photo of Garth’s bunker command centre!
Bascially, these monitors are for tracking preferred shares (there are lots of series ya know), and the middle one is for keeping an eye on the Amazons about their daily tasks:
http://forexchronicles.files.wordpress.com/2008/03/trading-desk.jpg
#35 Blue Monster Lover of Cookies on 03.01.12 at 10:46 pm
“French people are rude! That’s a fact.
If stating the fact makes me prejudiced, racist and a realist then that is what I am.”
———-
Where are you from? Some immigrants are rude.
# 92 – DonDWest- Why do you insist that the boomers are the majority? They’re not. Not in ANY sense. They don’t comprise the majority of the population nor the majority of eligible voters.
Watch carefully how the govt treats the boomers. Because your generation is next in line for disgusting wait times for medical care. Except that the facilities will be even MORE decrepid when it’s your turn. Gotta have those prisons and war toys instead.
If you got your death wish and every boomer dropped dead tomorrow, do you honestly think you’d have a bright shiny future? Sure…about as shiny as our ubiquitous, grey,grey chemtrailed skies.
Much hardship and suffering lie ahead. This is the logical and inescapable outcome of our collectivist system.
When the housing death star explodes, the ramifications will be ugly. The elite like that. They like things that explode and go boom. Like bombs, dot.com bubbles, housing bubbles, etc.
There’s a ton of money to be made in destruction. For them. Don’t forget that at the same time Goldman was pushing toxic mortgage derivatives they were SHORTING them for themselves.
The peoples get the propaganda about personal responsibility and accountabilty while the criminals in high places walk free. Predator system. And we’re the prey.
Get used to the salt mines.
To all the people that don’t believe a 25 year old can have 300k in liquid assets and make 100+k per year… well I hate to be the one who tells you this but yes it’s possible.
I’m 26 and only have my high school and some basic technical training and I gross 200k+/year and have over 250k in liquid assets. Other young people I work with also make a similar income…
The first posting is my almost identical story. I have nowhere near the lifestyle my parents enjoyed although I work hard, save and invest just as they did. In talking to people not born here at work and in my hood many are in debt up to there eyeballs and have no intention of ever repaying it. How this plays out? I have no idea.
I am a @!%#’g idiot.
#41 Smoking Man,
nothing annoys me more (well, almost nothing) than you forcing your “keyboarding” to fit the alcoholic hick persona you’ve constructed for yourself. But to each his own.
#104 Derek R,
ya done great!
#63 DonDWest on 03.02.12 at 12:22 am
“Sometimes I think I’ve won the genetic lottery. I can insult French people – because I’m French. I can insult English people – because I’m English. I can insult aboriginals- because I’m aboriginal. I can insult Acadians (French with a twist) – because I’m Acadian. Well, I guess I can’t insult Black people – oh wait a second. . . If I go back far enough studying the family bloodlines, apparently there’s some mixture here as well.”
———-
A very good post, for a change. You must be a real Canadian. Not enough of us.
Real gross domestic product (GDP) rose 0.4% in the fourth quarter, after advancing 1.0% in the third quarter.
Housing investment slowed to 0.8% in the fourth quarter, well below the 2.5% increase in the previous quarter.
Beach Girl (from yesterday),
glad the flame is coming around. Eat your heart out, Westernmoron!
Lives, in progress, on the human farm.
Politics. An inside joke for those in the know:
‘Poli’ in Latin meaning ‘many’ and ‘tics’ meaning “habitual uncontrollable purposeless gestures.”
Or, more accurately, politics is a conduit for passing public money to corporations. Vote for your independents and help derail this disgusting party system that keeps you perpetually enslaved.
I refer you to the opinion of one of the most famous FBI agents, Charlie Winstead, the man who gunned down John Dillinger. In his book, “The Bureau”, William C. Sullivan quotes Charlie Winstead as saying,
“When I investigate a man and prove he’s a criminal, if he doesn’t already work for the government, they’ll hire him. If he already has a government job, once they hear he’s a crook they’ll promote him.
Can you PLEASE make this a regular weekly segment?
Great job G
Moving from a condo to a TH. Friends are shocked that we’re still renting. It is such a stigma here in Canada for some unknown reason. I explained my reasons and all I got was silence. They can’t or won’t believe in a housing crash because they want everything to be fine. Still, I don’t envy them because they live paycheck to paycheck. It’s all an illusion folks. They lease their fancy SUVs, and all appliances are on a monthly payment plan, which makes them look wealthy. Meanwhile, I’m living debt free, renting and saving and driving my old, reliable Honda.
#146 Uh Oh Canada
“Moving from a condo to a TH”
What’s a TH?
Townhouse
I’m not sure I share your sentiment about the internet. I’ve been using the internet since it’s inception, and I liked it better when it wasn’t mainstream. Giving everyone a voice sometimes just results in a lot of noise.
Pardon? — Garth
I’m GenX, but the first guy’s story still relates. Our parents, aunt, uncles, etc. think if we did it, so can you, we had it harder, etc. etc.
They keep saying BUY, RE will only go up, buy before being priced out. Two of my cousins, in their late 20’s, bought condo’s in the past few months. One off build. Their parents wanted them to buy now and get out. One had been waiting since 2008 for markets to cool off and lost patience.
How could our parents forget about what happened in ’89? Especially my aunt – her sister got burned and lived in her parent’s basement, with her child, for years paying off a mortgage for a house they sold for less than what they bought for.
Yet they still keep pushing their kids to buy.
The stigma around rent needs to be lifted. Buddy, don’t put off having a family, you can rent a house and still raise your kids in a SFH.
‘South Surrey Building Blitzkrieg’
Thoughts and Images by Gord Goble
http://wp.me/pcq1o-3L0
A very nice photo essay.
Gord was concerned that this may be too “preachy”, but we say “Hallelujah, Brother!”.
If you know the truth in a time when the majority don’t, it’s okay to shout it from the roof-tops, or, like a song-writer, to sing it again each night, in different variations.
—
“I brought a song into this world
Just a melody with words
It trembles here before my eyes
How can this song survive?
I brought it to the tower of gold
In my coat of many holes
I came unarmed, they’ve all got knives
How can this song survive? ”
– Ron Sexsmith, ‘This Song’
(Now there is something about Vancouver that really is world class…)
Ah, Town House. Got it.
#146
renting appliances? that’s going to hurt when they get repossessed because they can’t make the monthly payments! :(
I’m 28 years old have 300k in the bank too and make 185k a year, household income of 245k. In in the 1 percent but can’t afford a decent house in toronto. If k can’t, who can? This ponzi scheme is coming to an end soon.
Realtors are in a total panic as the economic housing slowdown is greater then anyone thought. Diving through the GTA and seeing the countless houses that can not sell. For every 10 for sales signs you might find one sold. Those sold signs will be up for 2-3 months as the slowdown is getting worse. During good times sold signs are taken out within a week or two. When you see a sold sign now you will notice how long the scared and worried realtors keep those very few signs up. There is a panic in CREA and looking at the many worried realtors on this blog should speak volumes of the current housing crash. Canada housing = USA housing crash
#135 Sky
“There’s a ton of money to be made in destruction. For them. Don’t forget that at the same time Goldman was pushing toxic mortgage derivatives they were SHORTING them for themselves.”
That’s why most will lose their shirts in stocks, bonds, RE, REITs, ETFs and everything else with a buy and hold strategy. The dynamics of modern finance has evolved into a multilateral market that requires hedging strategies and profiting on the downside. The typical investor does not realize how their money is being used into a model that feeds the top tier. Watch one Quant explain it here at 18:20min http://www.youtube.com/watch?v=ed2FWNWwE3I
A balanced portfolio of long positions with non- or inversely-correlated assets is its own hedge. Why do you make such absurdist, absolute and defeatist statements? — Garth
Crap!
I’m really depressed about the tone of comments in this thread. No-body asked VYW why he/she thought the first letter had a racist tone. Instead he was just attacked for being “PC” as if that’s a derogatory term. Racism or prejudice always has to be understood from the perspective of the “outsider looking in”. Of course someone who is mainstream will not readily see the racism in a comment!
The most insidious kind of prejudice is the subtle kind, and that’s what I think is being alluded to here. The letter starts off complaining about how boomer economics has priced the younger generation out of the market. Fair observation. However, by bringing in race and language into the letter, the writer is also sounding like he’s resentful of “rich” foreign immigrants buying up these over-priced houses…as if they’re part of the problem.
Thing is…he’s assuming that anyone with a different skin colour or different language, is a new immigrant to the country. I am the mixed race product of immigrants who came to this country, back when the CN railway was being built, as well as the other official “founding nation” which was France. Back then, the prejudice from white Anglos lead people to hide their culture and language as much as possible. Children were instructed not to speak anything but English outside of the home for fear of a backlash. Business in Montreal was conducted mainly in English and all the Francophone citizens were obligated to learn English as a second language in order to get a job, even though the French-speaking population in Quebec is much larger than many French speaking nations around the world.
Eventually the cultural “power” in Canada rebalanced with the introduction of concepts of official bi-lingualism and multiculturalism. People were no longer afraid to use their mother tongue in public, and multi-cultural events like Caribanna, the Kitchener Oktoberfest festival, Chinese dragon boat races etc… became a regular and colourful part of our country. Businesses in Montreal started conducting day to day operations in French, and those companies who couldn’t or wouldn’t do so, moved their head offices out of Montreal. It depressed the economy there for a while, but eventually new Francophone companies took their place.
I live in a multicultural and new immigrant area of Mississauga. I once asked my white Anglo friend what he thought was the main religion in Mississauga, after I had read the 2007 census. His knee-jerk answer was “Muslim”, simply because he saw a lot of brown-skinned people around him. In reality the predominent religion was Catholic at 52% and Muslim was only 2% of the population. People don’t realize that there are many Christians in Asian, South Asian, African and South American countries.
My suggestion, is to get to know the neighbours in your community who look and sound different culturally. Some might be new immigrants, but a large number might surprise you by being older immigrants than even your family of origin.
However, don’t blame our country’s current economic problems on “immigrants”. It was my great-grandfather who worked for racist, substandard wages, at pennies a day, who helped build the CN railway that opened up this country to a huge economic boom-time. Immigrants to Canada have paid their fair share towards its prosperity!
Buyer pays the commission, it is merely paid from the proceeds of the sale so that the buyer need only write one cheque. In most provinces I know of, the buyer signs a disclosure of remuneration which states what the buyers agent is earning.
Under the old system, before “buyers agency” all selling agents were considered sub-agents of the listing agent. The courts frowned on this recognizing that most after spending a lot of time with a buyer the selling agent naturally developed a relationship with the buyer and not the seller and determined that the selling agent was naturally working for the buyers best interests. Hence came into effect “buyer agency”. In the next few months we will be further evolving into “designated agency” which addresses the conflict of a buyer working with an agent with ABC-123 Realty and wanting to buy a property listed with a different agent from that same ABC-123 Realty company.
Also, if you sign a BRA anything in posted commission in excess of that which you agreed that your EBA should earn, as outlined in the BRA, is yours. If there is a $10,000 bonus being offered on a property your agent must rebate that back to you unless you give them permission, in writting, to keep it. So please don’t sign my BRA and I will look for a home you can buyt which is in my best interest not yours. };-)
#35 Blue Monster Lover of Cookies on 03.01.12 at 10:46 pm
“French people are rude! That’s a fact.
If stating the fact makes me prejudiced, racist and a realist then that is what I am.”
………………………..
Guess I’m not a realist then because I haven’t experienced what you have. The only ‘rude’ French person I met was a little old ‘bag’ lady in the Metro in Paris eons ago. A gentlemen approached me and told me to pay ‘no heed’ to her as she was a bit demented and spent her days sitting & knitting in the Metro. In my travels in French speaking countries and in Quebec, I’ve always treated people with respect & have received it in kind. When travelling in a country whose language I don’t know, I always try to learn some essential phrases in advance and the locals appreciate that.
My comment to this guy was about boomers, not immigrants. Obviously. — Garth
Your Boomer parents helped turn shelter into a commodity, properties into assets and neighbourhoods into hedge funds. – Garth
Ya, and Boomers come in all shapes, sizes and colours.
But they are not the only ones that ‘helped’. But does it really matter? I don’t think so.
Insert cool quote here—>[Adapt or perish, now as ever, is nature’s inexorable imperative. H G Wells]
Or here—>[The crisis of today is the joke of tomorrow. H G Wells]
Herb on 03.02.12 at 10:08 am
Beach Girl (from yesterday),
glad the flame is coming around. Eat your heart out, Westernmoron!
____
Thanks Herb, all is well in this camp. The flame is just a bit scared of me. I find that romantic. He actually works at his own company and has a head of hair. Not that, that is a vital requirement.
Just was thinking, how many houses are out there for sale without signs.
I am going to live in my house till I can’t. “Help I fell and he won’t get off me”. My heirs.
“No media filter. No editors. No corporate agenda. No advertisers.”
This is even funnier. You mean when no one can filter comments or edit comments but YOU. Oh the power of it all. On occassion do you think about what you say?
No media filter. No editors. I even let in people who can’t read. — Garth
“A balanced portfolio of long positions with non- or inversely-correlated assets is its own hedge. Why do you make such absurdist, absolute and defeatist statements? — Garth”
Which will equate to a balance of zero if you don’t know what you’re doing. Hedging comes with a cost—this is a traders market where the top siphon off the bottom buy and hold investors.
Everyone thinks they have a winning strategy until this happens: http://www.youtube.com/watch?v=wYlptbR0Dkw&feature=fvwrel
But that’s fear-mongering right? Even though the entire market is still based on the Black-Scholes Formula that caused every recent crash into a tailspin collapse, yet we still use it today when regulators knows it’s a broken formula. http://www.youtube.com/watch?v=PlVY-Cw1XRA&feature=fvst
The big plunge will happen again indeed. Don’t ever forget that.
You are 100% wrong. — Garth
#155 Worried realtors
The townhouse I was watching in Vancouver’s False Creek finally sold after a year on the market. I believe it may have been owned by the realtor himself (but I don’t know for sure).
I had an agent friend look the sale up for me. The seller only took a 5% hit but I estimate he lost maybe another $8K in costs while it languished.
The interesting thing is that the red “sold” sticker was about the size of a bus ticket and it stayed up for only a week. Then the sign dissappeared overnight.
That’s hardly the action of an agent who wants the whole world to know about his latest sale.
Just sayin… I don’t get it either.
Hey Garth,
I recently read the classic Richest Man in Babylon. From even then the original principles always advised that owning land was a top priority. You mention often that a house is a a home and not an investment.
“Make of thy dwelling a profitable investment”
Isn’t that why everyone is obsessed with real estate? Especially coming from places where you couldn’t own land or there wasn’t very much of it to go around.
Just curious really.
Your thoughts on this Garth?
http://www.dailymail.co.uk/news/article-2107315/Market-crash-street-riots-year-Americans-plan-economic-9-11.html
Idiots. — Garth
#157 Often People depend on PC as a crutch.
Overly emotional/sensational people like you always attempt to mis-direct.
The original commenter had two points:
1) Young people are priced out from the lives their parents enjoyed
2) Many Foreigners (or people not speaking english) populate the area he grew up in – they can afford it.
I find it offensive that people like you infer ridiculous assumptions and try to inject undertones of racism or prejudice reflecting your own hyper-sensitivity.
The Boomer economics only work if there is foreign funds fuel to flame the fire.
People like you make it difficult for people to report facts, you are ready to pounce on anybody that doesn’t conform to neutral PC tones.
a) Foreign funds contribute to increasing property prices – APPROVED PC
b) Chinese speculators have contributed to increasing propery prices – REJECTED RACIST!!!!!
#157 Michelle on 03.02.12 at 11:52 am
Crap!
I’m really depressed about the tone of comments in this thread. No-body asked VYW why he/she thought the first letter had a racist tone. Instead he was just attacked for being “PC” as if that’s a derogatory term. Racism or prejudice always has to be understood from the perspective of the “outsider looking in”. Of course someone who is mainstream will not readily see the racism in a comment!
The most insidious kind of prejudice is the subtle kind, and that’s what I think is being alluded to here. The letter starts off complaining about how boomer economics has priced the younger generation out of the market. Fair observation. However, by bringing in race and language into the letter, the writer is also sounding like he’s resentful of “rich” foreign immigrants buying up these over-priced houses…as if they’re part of the problem.
Thing is…he’s assuming that anyone with a different skin colour or different language, is a new immigrant to the country. I am the mixed race product of immigrants who came to this country, back when the CN railway was being built, as well as the other official “founding nation” which was France. Back then, the prejudice from white Anglos lead people to hide their culture and language as much as possible. Children were instructed not to speak anything but English outside of the home for fear of a backlash. Business in Montreal was conducted mainly in English and all the Francophone citizens were obligated to learn English as a second language in order to get a job, even though the French-speaking population in Quebec is much larger than many French speaking nations around the world.
……………………………………..
Great points Michelle. When my Dad was 28, he was a Manager of a plant in Quebec which was owned by a British co. Most of the workers were Quebecois French but also spoke English. He tried to promote some of them, but the British owners said NO. He was disgusted and eventually said ‘shove it’. My Dad moved to Canada from Denmark when he was 18. His English was impeccable. He learned German as a 2nd language in school. When he arrived in NS he learned his English from watching movies and newspapers. He really felt the French in Quebec were being short shifted. I grew up in Quebec & majority of my g’friends were immigrant WWII refugees.
………………………………….
Eventually the cultural “power” in Canada rebalanced with the introduction of concepts of official bi-lingualism and multiculturalism. People were no longer afraid to use their mother tongue in public, and multi-cultural events like Caribanna, the Kitchener Oktoberfest festival, Chinese dragon boat races etc… became a regular and colourful part of our country. Businesses in Montreal started conducting day to day operations in French, and those companies who couldn’t or wouldn’t do so, moved their head offices out of Montreal. It depressed the economy there for a while, but eventually new Francophone companies took their place.
……………
Remember the time well. Though we have some multicultural events here in NS, I wish we could attract & retain more immigrants. I miss Mtl. for it’s diversity and choice of food products. Who knows, if I’m around when DH retires, we may move back. DH is originally from France. Though I’d love to move there, realistically we couldn’t afford to & DH want to move back.
…………………
I live in a multicultural and new immigrant area of Mississauga. I once asked my white Anglo friend what he thought was the main religion in Mississauga, after I had read the 2007 census. His knee-jerk answer was “Muslim”, simply because he saw a lot of brown-skinned people around him. In reality the predominent religion was Catholic at 52% and Muslim was only 2% of the population. People don’t realize that there are many Christians in Asian, South Asian, African and South American countries.
………………..
agree.
……………………….
My suggestion, is to get to know the neighbours in your community who look and sound different culturally. Some might be new immigrants, but a large number might surprise you by being older immigrants than even your family of origin.
However, don’t blame our country’s current economic problems on “immigrants”. It was my great-grandfather who worked for racist, substandard wages, at pennies a day, who helped build the CN railway that opened up this country to a huge economic boom-time. Immigrants to Canada have paid their fair share towards its prosperity!
Its funny those teachers on the west coast think their going to get their cake and eat it too…wait till you see what happens to the counterparts in Ontario…
AUSTERITY!!!
Any teacher, cop, firefighter, nurse basically any person who recieves money from the government; of any level needs, to realize:
cuts to compensation and or benefits is not about the value of your job to society.
Its about the numbers.
The private sector is taxed to pay for the public.
When the private sector was devastated in 2008 where do you think the money is going to come from.
When plants, factories, mills, and fisheries close down it does’nt matter if the teachers produce GRADE A 100% excellent PHD quality kids…
If their is no where for them to work, they can not be taxed and thus your compensation and benefits must reflect this.
On a side note…its why Stephen Harper is all about more Jails and tough crime bill.
He knows what’s going to happen in society when the policies he’s endorsed has created a class war, with off shoots of racism and attacks on immigrants, fraud etc…etc..
Yeah I know crime rates are going down. Sure thats a fact but they are going to climb. The pressure in peoples lives is getting closer to the flash point…most of it financial; but that morphs into all kinds of ugly things. Crime being one of them.
Think about it.
Any of you teachers, cops, firefighters, nurses care to rebuke my opinions?….
#83 Makaya — that video was hilarious! I shared it with my in-laws in the Saguenay.
Just for the record, I don’t teach in Gatineau anymore. That was the worst contract I ever had, and when it expired, I moved on.
Teaching, and more specifically teaching ESL, has always been my passion, and the profession has allowed me to work abroad in some pretty interesting places, like Germany and South Korea, along with Chicoutimi (yes!), Quebec, where I finally put some roots down after marrying a “pure laine” Quebecker who didn’t speak a word of English when we met.
I grew up in Toronto, and my parents were immigrants from Europe. I grew up speaking one language at school and another at home. I was always intrigued by French, but was never really good at it until I settled in Chicoutimi. Love is a great motivator, and immersion is the best teacher.
As an outsider who has made Quebec my home for more than a decade, let me just say that I have many stories about rude Quebeckers to share. They really have a bug up their butt about English Canadians. They don’t have the same dislike for Americans, it seems. It really is disdain (as someone said the other day) and resentment festering from the days of rich, English industrialists screwing over the French blue collar workers.
Coming from blue collar roots myself, I can sympathize to a certain extent. However, I don’t have a drop of English blood in me, so when I am insulted and ostracized for being “une anglaise”, I have learned to chuckle about it. It wasn’t always like this; it used to hurt me.
To be fair, I’ve encounterd bad attitudes, rudeness and racism much closer to home, too. A few years back, my sister and I were standing in line waiting to order lunch at a snack bar in Burlington, Ontario, when out of the blue some older man started ranting to us about all the “dirty immigrants” taking over the area. See, my sister and I are white, so we don’t stand out…but we are still immigrants (I’m the youngest of 3 girls and the only one born here). This kind of mindless bad manners occurs everywhere.
The best defence for dealing with anti-English Canadian sentiment in Quebec, or even abroad when you encounter Frenchies is to speak a completely different language. My family does this when visiting me in Chicoutimi. I speak French to anyone we interact with in public, but amongst ourselves, it’s our mother tongue all the way. This totally confuses them and throws them off balance. I find that when they think you are a tourist from somewhere outside English Canada, they are much more willing to provide friendly service. Go figure. All I know is that it works like a charm.
Or, if you don’t have recourse to another language, then bone up on some choice quebecois expressions. Google them. They’re easy enough to find.
The pendulum effect can be a real bitch when it leaves from where you want to stay. We are all connected to the magnetic force of the pendulum. Resist it and you merely postpone the inevitable. The longer your resist, when eventually that magnetic pull is beyond your capacity to resist you will be pulled with such force you may not be able to recover.
Learn your market, roll with it. Accept the things you can not change – things like the impossibility of getting blood from a stone.
Garth,
Who would be on the hook if a home purchaser defaulted on an upside down mortgage that was obtained with 20% down ?
The hapless owner. — Garth
How can everyone rent a home if someone has not already purchased it Garth? Your predictions have been wrong in the GTA. The numbers never lie. Look at the January median detached stats since 2004:
Jan-2012 $392,000.00
Jan-2011 $360,000.00
Jan-2010 $350,000.00
Jan-2009 $303,000.00
Jan-2008 $319,000.00
Jan-2007 $300,000.00
Jan-2006 $288,200.00
Jan-2005 $277,000.00
Jan-2004 $259,978.00
Yes, I understand now. That means it goes up forever. — Garth
#157 Often People depend on PC as a crutch.
Overly emotional/sensational people like you always attempt to mis-direct.
The original commenter had two points:
1) Young people are priced out from the lives their parents enjoyed
2) Many Foreigners (or people not speaking english) populate the area he grew up in – they can afford it.
^^ agree with this PP. I don’t find this to have racist undertones at all. My husband and I are in the same situation. We are in our mid 30s, make great money relative to most in the population in our province, yet at current prices we cannot afford a decent family home unless we want to be completely house poor or move an hour drive away from our family and places of work.
The homes we have found have had offers from foreign investors who have literally just arrived from their home countries days or hours before with no conditions attached and way over asking.
Nothing is racist about being frustrated that after years of hard work and money invested into careers that should pay off in terms of a decent lifestyle you cannot afford anything! We are being forced to compete with foreign incomes because there are no limits on foreign investment in personal real estate. On the contrary, foreign investors have more of an advantage based on current mortgage rules – they don’t even need and income, unlike Canadians living here. That’s an economic issue, not a racism issue.
What to make of articles you read like this?
Where should one keep their financial wealth? certainly not in real estate…
If the DOW would fall on such magnitude so would the TSX
http://www.theblaze.com/stories/buy-a-gun-keep-your-powder-dry-economists-warn-of-looming-economic-911/
You read sites like that? Guns, gold & God. What drivel. — Garth
Mortgage Fraud, Sounds like this is exactly what Garth mentioned will be addressed in the upcoming budget.
http://www.calgaryherald.com/business/Equifax+uncovers+400M+mortgage+fraud/6182947/story.html
Speaking of unfiltered, I just found out about this today:
http://www.3Dpolicy.CA
Apparently written by disgruntled former senior civil servants, disappointed with the partisan ‘spin’ that passes for policy-making by the current government.
(This may become my new catnip!)
The only place that I’ve ever found French people to be rude is in Paris. And I don’t think that that’s a French thing; it’s more of a Big City thing. After all Londoners and New Yorkers aren’t exactly known for their politeness either. In the rest of France, in Quebec, and in the Maritimes, my experience has been that kind French people are the rule, not the exception.
#157 Michelle:
Thanks for your comments.
The first emailer being a mid-level manager should easily qualify for financing – well then, just go out and buy a condo or, listen to Garth and invest and wait. But to blame his plight on “Asian” bidders, parents unwilling to help him or kids in ‘hood (#46 – that’s short for neighbourhood) speaking foreign languages just speaks to his sense of entitlement. Nothing PC here – I’m calling it for what it is.
@ #157- Jimmy
“People like you make it difficult for people to report facts, you are ready to pounce on anybody that doesn’t conform to neutral PC tones.
a) Foreign funds contribute to increasing property prices – APPROVED PC
b) Chinese speculators have contributed to increasing propery prices – REJECTED RACIST!!!!!”
Uhm… Jimmy, I think you missed the main point I was trying to make (maybe I was too long-winded). As Garth has pointed out many times on this blog, there is no convincing research statistics showing that foreign immigrant money is the main cause for high house prices in Canada. It has not been proven to be a “fact” just because you perceive it that way.
The letter in question was from someone who lived in Toronto. While there are a lot of immigrants to Toronto, there are also a lot of 2nd and 3rd generation Canadians of non-white skin colour who have chosen to encourage their children to maintain their “mother” tongue. The writer seems to just assume they can’t speak English or French. What’s wrong with being multi-lingual in Canada and choosing to talk to your friends in your language of choice during your free time? The subtle prejudice is that many assume these people are new immigrants due to their skin colour and language. Yet there are many new immigrants to Canada who are white and speak English, but they don’t seem to be singled out as “causing the housing bubble”…probably because they don’t visibly stand out in the community.
As for me being hyper-sensitive and over-emotional…well at least I DON’T SHOUT IN CAPS!!!
… and by the way, my name’s Michelle, not #157 or “people like you”.
Give me any 10 year period in Vancouver where real estate price prices were lower at the end of the period. -answer, never.
The printing of money by central banks has assured that your dollar will buy less every year and as a result, hard asset values will continually increase. There are always periods of decline in real estate but prices recover and increase long term. That’s all you need to know. The only people that lose money in real estate are those that can’t afford to hold on to it. Other than that this blog is a complete waste of your microscopic minds.
5 Signs Canada’s Workers Are In For A Rough 2012:
http://www.huffingtonpost.ca/2012/03/01/canada-economy-dollar-job-losses_n_1315040.html?ref=canada
The “absent pin” is no longer absent. Job loss in 2012.
Beautiful post Garth.
Thank you for your great work and help.
Buddy just bought (closes at end of month) 1 acre property in Central Sannich (Victoria) $625,000. Owns 3 houses now. Live in commonlaw is worried about carrying too much debt… (a little bit late for that) their strategy? Move, clean up the old house (lets allow 3-4 months for that too happen) and then sell. They think their 2 BDR 1 level bung is worth $500,000, because that is what the assessment says. Oh ya, they are both both close to 50, no kids.
How do you spell screwed…
So is hamilton the only place left in within an hour of the gta where you can still buy a decent house for around $200 000, it’s hard for the bottom to fall out of the bottom right? Anyone think Hamilton is slightly safe?
We’re a funny bunch, aren’t we? This site is entertaining. I learned a few things.
http://www.wikihow.com/Understand-Canadian-Slang
Despotism is a form of government in which a single entity rules with absolute power. That entity may be an individual, as in an autocracy, or it may be a group, as in an oligarchy. The word despotism means to “rule in the fashion of a despot” and does not necessarily require a singular “despot”, an individual.
So when do we “dispose” of the current Government?
okay all the experts who keep expressing that they know of young workers with little-to-no skills, under the age of 27, who earn $100+K per year: please tell me exactly what work these highly enterprising people are doing to earn so much revenue ?
And please don’t tell me that they are working in Tim Hortons in Fort Mac making $125 k per year, I know that is a fantasy that is not true.
Please share with our fellow readers your wisdom.
#115 Bruce posted that investment banking grads base salaries are still 130k, but that is so 2008 ! I have read that investment banking grads now are a dime a dozen, and ones with experience and MBAs are applying for jobs paying as little as $25,000 per year. Maybe with 25 years experience will they earn 130k, but definitely NOT with just a graduate degree and not much more.
As for mining camps, they are offering $18 to$24 per hour for chefs and they have hundreds of applications, no shortage of job seekers there. Yes, I guess if you work 24 hours a day, 7 days a week, at $24 per hour you will make some respectable coin, but then again; how long can you keep that up?
# 26 SM
“Contribute you scum” …
Your not the boss of me
Interesting little cultural battle brewing here. . .
I don’t see this as white vs Asian, white vs whatever, or Franco vs Anglo, etc. I see this as old Canadians with ancestors in blue collar/trader backgrounds vs the “new Canadians” with backgrounds as “foreign investors” and speculators.
The “new Canadians” claim the old Canadians are ignorant and prejudiced. I’ll argue us old Canadians are just being practical. Is it realistic for me to learn/know English, French, Mandarin, Arabic, Hebrew, etc. just so I can communicate in my own damn country I was born in?! Let’s face it, economic competitiveness in Canada seemingly demands that I must somehow learn all of the following in order to engage in commerce.
The unrealistic expectations of having to suddenly learn a dozen languages in just the past decade; along with foreign investors dislocating the locals through outrageous real estate speculation, is enough to build up frustrations that are certain to spill over very soon. The fact that these sentiments have been kept in the closet for so long due to political correctness will only make the boiling point blow over at much greater levels. Bottled up anger/frustrations has a way of detonating when least expected and can spread like waves in the sea.
So perhaps it’s the “new Canadians” who don’t understand the perspective of us old Canadians. Yes, most of my ancestors were immigrants, but they all came here as warriors, slaves, and blue collar workers without a penny. They certainly didn’t come here with millions in a dufflebag asking, “how much of the nation can I buy?”
Toon Town Boomer @ # 127,
Your post had ME ROFL…
Canada has NEVER been a major global player in anything except silly hockey nonsense. We don’t have to be conquered Sir, we never were anything but the poor sap getting lapped and thinking we were ahead because our rear view mirrors were full.
Whatever success Canada ever had as a ” nation ” was directly attributable to riding the coat tails of the U.S.
Get out of Saskatoon once in a while and rub shoulders with the real world…you’ll see I’m right.
#181 Alan on 03.02.12 at 2:38 pm Give me any 10 year period in Vancouver where real estate price prices were lower at the end of the period. -answer, never.
The printing of money by central banks has assured that your dollar will buy less every year and as a result, hard asset values will continually increase. There are always periods of decline in real estate but prices recover and increase long term. That’s all you need to know. The only people that lose money in real estate are those that can’t afford to hold on to it. Other than that this blog is a complete waste of your microscopic minds.
———————————————————
I think Garth has stated this before, the last real estate bubble took 15 years before they were back at pre-bubble peak levels.
@#191-DonDWest
“The unrealistic expectations of having to suddenly learn a dozen languages in just the past decade;”
Don, Canada’s schools, businesses and government institutions function in either one or both of the two official languages. French or English. Immigrants coming to this country choose to learn one of these, depending on which province they move to. You do not need to learn any any other language than the English you already speak in order to get an education, job, government service or healthcare in Canada, so I don’t know what you’re going on about.
“Along with foreign investors dislocating the locals through outrageous real estate speculation.”
The only place this perhaps is happening is in certain areas of Vancouver and BC. I still haven’t seen a balanced statistical study to back this up, so anecdotal evidence is all we have. Keep in mind, there are a lot of local investors and speculators, linked to the construction and real estate industries who are also buying up these properties at inflated prices. The fact that the local government bodies have loosened up the investment rules to allow an influx of additional foreign money, leads me to suspect that it’s local wealthy business people profiting the most from this Ponzi scheme.
B.C. residents should vote for political change. The fact that they haven’t, leads me to believe that a lot of local residents have seen fit to profit from the over-inflated Real Estate values themselves. Locals could stop the trend if enough of them really wanted to.
The rest of Canada is a diverse and mixed Real Estate market which is not dominated by foreign immigrants. The annual immigration numbers to Canada simply aren’t high enough to dominate the GTA population of 3 to 6 million. Not to mention, most of my “new immigrant” friends in Mississauga/Toronto are not rich, and are just as “priced out” of certain neighbourhoods as the average middle class “old Canadians”. Again, I think there is a lot of local business speculation going on in the GTA market that drives up house and condo prices.
And if you really want to talk about who the “old Canadians” are… well, my great, great grandmother, a Cree Indian, was known to complain about how all the white European immigrants were coming to Canada and driving up the price of local land…she was really quite bitter about it :)
#170 Elle on 03.02.12 at 1:06 pm
This is Canada.
Albertans are not too keen of Ontarians.
Back a few years, you didn’t dare tell anyone that you were from Ontario.
British Columbians not too keen of Albertans.
In BC they call us, from Alberta, foreigners.
Been to Quebec and tried my French and every time the people would switch to English. No problem
#180 Michelle on 03.02.12 at 2:38 pm
Good posts.
Most Europeans speak more than one language.
What’s wrong with North Americans.
I wish I could have learned a second language.
People with more than one language seem to have a more open mind and appear to be better thinkers.
Owning is much cheaper than renting in Edmonton.
House I’m in now I’m paying $1300 a month payments (of which $800 is repayment of principle thanks to a Prime – 0.75% rate signed last spring), with another $250 a month property taxes.
My “throw away” money is $500 interest + $250 property taxes = $750 a month.
Its a 2 story 2006 house backing onto a park with good access to downtown – would cost $2200 to $2500 a month to rent.
I’ve lived in a number of cities, and yes, in MOST renting beats owing (especially in BC – yikes), but Edmonton has a very reasonable price to rent ratio, and an unemployment rate below 5%.
You are over-simplifying Garth, if you think that a place like Edmonton is going to take a big hit in RE prices because of the gong show in Victoria and Toronto. That’s like saying EVERY STOCK is going to go down if the market drops — ignoring the individual fundamentals.
You forgot the money you threw into the place, plus insurance, maintenance and closing costs. Sure glad you’re not an accountant. — Garth
Like I said before, Vancouver and Toronto are toast.
Edmonton and Calgary will lead by either being stable or rising in prices because this is where Jobs are and the rates will be low for a long time.
Feb prices and sales in Edmonton and Calgary are rising in Feb.
DA,
“We are all connected to the magnetic force of the pendulum.”
Pendulums work by gravity. The rest of your drivel is similarly mis-informed.
its starting
February’s sale volume was virtually identical to that of February 2011, but the average price softened by 5% for single family homes over February 2011. The average sales price for a single family home in Greater Victoria was $579,985, with a six-month average of $594,027, showing a corresponding decrease of 4.7% over February 2011.
http://www.vreb.org/mls_statistics/current_statistics.html
#174 Anon
The foreign investment argument can also be applied to us.
I suppose that the US should restrict Canadian real estate investment so that housing there is even more affordable for the locals.
alan has a microscopic mind …what a surprise!
but even with that micro mind he found Garth’s Pathetic Blog.
it is so much fun being weird.
it isn’t so much fun watching friends lose their shirts on underwater condos.
happy to report that my neice and her husband sold their house in strathmore and realized a modest profit and have returned to pender harbour to wait out the re crash.
they read your blog Garth and it made a great impression on them.
I think you may take the credit for this old son. I merely pointed them to the blog.
Tells to hire 1,300 in BC.
http://www.google.com/search?hl=en&gl=ca&tbm=nws&q=Telus&oq=Telus&aq=f&aqi=d1g10d1&aql=&gs_sm=3&gs_upl=53899l56046l0l57986l5l5l0l1l1l0l470l823l3-1.1l2l0
I meant Telus.
#198 Milk Man on 03.02.12 at 5:32 pm
Go buy then. Then u can change your name to, Milked Man
..this time it is different
waterloo resident
1/3 out of 4m.unemployed out of work for long periods of time 2,3,4 years out of work, college educated certificates etc 45+
Trapped in Unemployment
http://www.cbsnews.com/video/watch/?id=7399384n&tag=cbsnewsMainColumnArea.6
Saskatchewan (Western Canada) will need 75,000 to 100,000 new workers within the next decade.
Canadians should be mobile, get out of Vancouver and Toronto.
Your house means nothing. Have a nice life.
http://www.leaderpost.com/business/Irish+trip+just+boost+Saskatchewan+labour+force+premier+says/6230289/story.html
#200 bubble head
Notice total volume for single family is down 5% and 2% for condos for the same amount of sales. Not good.
It’s a loose analogy JRoss. The gravity thing doesn’t work. Think of it as a big effin heavy magnetic pendulum.
Really if you want to get technical the human anatomy is not particularly magnetic is it?
Arguing for the sake of argument? What a dweeb…
To # 169 Throwstone! Your jealousy shows. Want any WHINE with your cheese. BoooooHooooo. Baby want a cracker.
It is different here in Victoria. Here you can get paid to take over a condo : http://www.usedvictoria.com/classified-ad/Take-over-my-MORTGAGE-No-down-payment-needed–I-will-give-you-15000_16829666
Seems like an opportunity for a bull :-) You don’t even need to put your money where your mouth is…you’ll get paid 15k to assume a mortgage.
#197 David Jensen on 03.02.12 at 5:28 pm Owning is much cheaper than renting in Edmonton.
House I’m in now I’m paying $1300 a month payments (of which $800 is repayment of principle thanks to a Prime – 0.75% rate signed last spring), with another $250 a month property taxes.
My “throw away” money is $500 interest + $250 property taxes = $750 a month.
Its a 2 story 2006 house backing onto a park with good access to downtown – would cost $2200 to $2500 a month to rent.
I’ve lived in a number of cities, and yes, in MOST renting beats owing (especially in BC – yikes), but Edmonton has a very reasonable price to rent ratio, and an unemployment rate below 5%.
——————————————————-
Hmmm I live in Edmonton I would have to disagree, every driven on the Anthony Henday???? Nothing but houses and houses, and tonnes of condos!!! I can’t believe there are that many people out there who will be buying these properties. Theres more invenstory than there are people. What it cost you to buy now, will probably be 1/2 in 2-3 years. So that $800 pricnciple wont be worth, $800 when the value of your house goes down. And god forbid if you lose your job, but we’ll see soon enough.
Thousands of skilled workers out of a job in Ontario and the Premier of Saskatchewan is over in Ireland recruiting foreign workers.
That confirms it. Saskatchewan is being led by a total nincompoop.
Smoking Man, your theme song has got to be We Dont Need No Education by Pink Floyd. Or, Just Looking Out For Number One by Guess Who(?). Doggies, any other suggestions? Be nice, we love our SM.
DH & I were just saying that we both appreciated our young days of travelling. He worked in many countries in Europe, the Cote d’Ivore, & crossed the Sahara desert with a few buddies. With a couple of friends, they bought a car in the NY, IIRC, and visited many US stated and finally Mexico and Brazil. I spent my very early 20’s working and travelling abroad. Have traveled a lot since then. Maybe, we’d have more money now, but I’d rather have wonderful memories. I say to young people, don’t burden yourself with a mtg. Go out and enjoy your life – travel, etc. Before you know it, you’ll be an old wrinkly person like I. :-)
China stays the course on lowering house prices:
http://www.chinapost.com.tw/china/china-business/2012/03/03/333398/Officials-reiterate.htm
Oops for my misspellings on my last post.
The reality in Vancouver:
http://vancouvercondo.info/2012/02/us-housing-market-still-deflating.html/page-2/#comment-145352
Are these in anyones portfolio? http://www.cbc.ca/marketplace/2012/troubleforrent/
too bad they never mentioned nacel properties, they’rehorrendouss as well. should i ever buy reitsI’lll do my best to make surethey’ree clean. really really hating renting. it absolutely sucks. especially inVancouverr. think my days here are really numbered. just cannot afford it period. we’ll see what happens in the spring. off to look at another rental, fingers x’d
eaglebay-Parksville 2 # 207,
So the frozen wasteland of Western Canada will be hiring a few chumps to slave away in the oil field breaking their backs … now everyone has to leave T.O. and Vancouver and their houses mean nothing?
I think you might have over dramatized things a tad, don’t you?
Re: #198 Milk Man on 03.02.12 at 5:32 pm
Condo prices will take a big fall in Edmonton next month. My brother-in-law unloaded a boat full of condos that will show up on the March figures.
Thank you Garth, I am deeply humbled that you should consider my missives ‘inspiring’. I promise to come back with many more enlightened comments as the news continues to break over the plight of honest people everywhere.
http://www.vancouversun.com/business/Teacher+regrets+error+judgment+having+class+write+letters+education/6242592/story.html
‘Get ’em while they’re young’ seems to be the sad pattern of standards set by the fanatics in the union movement who for thirty years were shielded from scrutiny by the ‘leading lights in international socialism’ …Canada’s own Liberals. Three decades of government created thinking, stipulated attitudes and opinions.
Gag laws against free speech were the stock in trade against any who dared voice an alternative opinion. Disagree with Liberal social policy…..well….you’re a rascist !! Disagree with Liberal economics….you’re a right wing nut!! 30 years of brainwashing paid for by the taxpayer for the benefit of a few ultra left inheritance cases in Rosedale has turned an entire generation of Canadians into pap.
Thirty years of profiling and ad homonim attacks against free thinking people has got an entire generation looking at the world from the vantage point of having their heads up their arseholes. And as you see from the article, the union movement thinks that another generation of illinformed and brainwashed sheep is whats good for them buy ‘to hell with the country’.
197- David Jensen , why you don’t buy 10 properties in Edmonton.. the cash you make on each based on your numbers is $1200 a month, so $12k a month in total for 10… why would you work when you can make those money so easy… you can be the next Trump:)
Thousands of skilled workers out of a job in Ontario and the Premier of Saskatchewan is over in Ireland recruiting foreign workers.
That confirms it. Saskatchewan is being led by a total nincompoop.
———————————————————
Dont be fooled. What they really want are farm slaves that can’t leave once they arrive.
#213 Amarillo – how about Wasted Days and Wasted Nights – Freddie Fender?
#203 eaglebay – Parksville
I’ll help out with that Telus news link.
http://tinyurl.com/6wps3x4
26Smoking Man on 03.01.12 at 10:22 pm
“Garth you scaming little shit….”
*********************
Whaaaat? LOL That’s funny……!
“You do not need to learn any any other language than the English you already speak in order to get an education, job, government service or healthcare in Canada, so I don’t know what you’re going on about.”
The rules of the game have changed for my generation. The bar has been set much higher. You’ll likely need at least two languges to be employable long term and to have upward mobility, maybe three.
Besides, it’s frustrating when you can’t understand half the people around you in a public area. So you feel compelled to learn all that you can. Walking into a public space without understanding the language spoken is intimidating and awkward; it’s the equivalent of walking into the area butt naked.
#213 Ret on 03.02.12 at 7:59 pm
“Thousands of skilled workers out of a job in Ontario and the Premier of Saskatchewan is over in Ireland recruiting foreign workers.
That confirms it. Saskatchewan is being led by a total nincompoop.”
………………….
People from Debtario are stuck with their underwater mortgages. All they would have to do is move to Saskatchewan and get to work.
Debtarians don’t want to work so let’s try the Irish.
Losers.
#45 EAGLEBAY: “Calling a spade a spade is not racism.
This so called “political correctness” is ruining our country. Ever heard of common sense? How about the truth?”
******************
Agree. Enuf, already.
#195 eaglebay Parksville
Totally agree. Add Nova Scotian to the list. We were heckled because of our Alberta plates!
Vancouver Renter on 03.02.12 at 12:01 am
“Renting in Vancouver feels like an Atheist in the Sunday congregation. You’re surrounded by believers but the facts just don’t add up.”
*********************
Perfect.
@200 bubble head
Interesting, the average price (using the start of the graph in February has dropped for the last 3 years) : http://www.vreb.org/pdf/vrebgap.pdf
And the total active listings (using the start of the graph in February has risen for the last 3 years) : http://www.vreb.org/pdf/vrebgal.pdf
Prices sloping down, and inventory going up, looks almost like a supply and demand model.
#220 Westernman on 03.02.12 at 8:40 pm
eaglebay-Parksville 2 # 207,
“So the frozen wasteland of Western Canada will be hiring a few chumps to slave away in the oil field breaking their backs … now everyone has to leave T.O. and Vancouver and their houses mean nothing?
I think you might have over dramatized things a tad, don’t you?”
…………………
Sorry to offend you but these jobs are not back breaking.
Even women are doing them.
Winter in Western Canada has been much milder than in Eastern Canada this year. So much for frozen wasteland.
Western Canada has oil, gas, mining of all kind, agriculture, fishing, some manufacturing, etc…
We all have a choice in life. Slave to your home and phony friends or live life and have a good time.
Ask Beach Girl.
#169 Throwstone
What HAS happened is Canada is not an altruistic society anymore. No one wants anyone else to get a raise but themselves.
Whenever Pharmacists, Nurses, or Teachers want a raise, they say stuff like “patients will suffer” or “we’re doing for the kids” etc.
Pleez!
If I was working as a Pharmacist, Nurse, Teacher , etc., i would be doing it first and foremost for myself. I would also realize that the general public would be against my economic interests if it affected theirs.
As for any Teachers out there…answer me this:
Why do you say you are overworked even when you find the time to do countless volunteer activities like coaching, supervising dances, etc??
The solution to all this me, me, me will be a slow privatization of ALL services. What’s wrong with having a two-tier private/public school system. The private system reserved for those who can pay where the goal is to produce doctors, business/government leaders etc. and a public system for those that can’t pay where the goal is a basic education/baby sitting. We are almost there…
Oh wait, Premier Clark and her all her Cabinet ministers send their kids to private schools. Every single one! So it’s here already.
I personally would never send my kids to a public school in light of the entire government staff not sending theirs.
“It’s a loose analogy….Think of it as a big effin heavy magnetic pendulum”
It’s loose all right. Like your grip on reality. And heavy = gravity. Still wrong.
The point is you speak in jibberish, but supply so much of it that is difficult for a rational person to know where to start. Then you get pissy when people call you on it.
“dweeb”
Is that part of your relentless positivity? Or is that the rage inspired by those that disagree? It is difficult to keep track of which out of context quote you would like us to apply in which situation.
mad Vancouver: from your link: Richmond registered the largest decrease in sales with detached property volumes down 55% compared with February 2011.
a 55% year-over-year drop means the market is in free fall! BPOE, what about your claim that the world is lined up for the “best place on earth”?
maxx: One of the houses we’ve been tracking for a couple of years (we’re extremely patient), owned by the most intransigent species of boomer has just seen a 5% price reduction.
like where?
I forgot the best part:
“Argument for the sake of argument”
DA throwing that out at someone else. Now THAT is rich. If you can look yourself in the mirror and not see which of us that better applies to, you are even more delusional that I had ever imagined.
Smoking man rocks! Smoking man smokes marijuana and rides a hummvee in horsey province! I love bentoboxx and. Low low interest rates…smoke weed every day and leverage to the tits
I work for an organization funded by the government. Many employees just bought a house in the last 2-4 years.
Almost 2 years a go I almost bought one as well, but after finding this blog, I escaped… thanks Garth!
Yesterday we were informed that we had our working hours and salary decreased, from 10-40% due to funding cuts. How happy I am that we are still renters!
#211 vic_guy
langford_guy, perhaps?
Hey Garth,
I am a seven year old with an annual income of $300,000 and I save 90% of my income. The rest i spend on hockey cards and paying off “Friends”.
I was looking for a tree house in the Brampton area – is this a wise decision?
Smoking Man. Why didn’t you tell us that you are Jewish? What you afraid of? Shibilath = shibboleth (to quote one of your favorite words…)