Well, so much for that little crisis. Stealing money from Cypriots is apparently less of a deal out in the real world than it is in the fetid confines of this pathetic blog. On Monday the Dow lost 0.43%, gold was up 0.04% and doomers were out in the parking lot looking for their lost creds.
So, if you want to worry about something of substance, let’s get back to real estate. Things are going from crummy to crappy, from coast to coast. For example, let’s forget Nicosia and worry about the poor downtrodden people of Richmond and White Rock. The latest numbers out of the Vancouver and Fraser Valley real estate boards suck.
As reported here, combined single-family home sales for this entire Lower Mainland area – one year ago the cradle of orgiastic granite horniness – are 42% below year-ago levels, 46% under 2012 sales and (yikes!) even 7% lower than during the 2009 financial meltdown. The buyers are gone. Vanished. Now thousands of people with million-dollar homes are learning what the word ‘illiquidity’ means.
And remember a year ago when the delusional lobster-kissers in Halifax thought they’d celebrate the new shipbuilding contract with an it’s-different-here housing surge? Well it isn’t. Home sales in Atlantic Canada’s biggest city have choked, and ditto for the priciest real estate in the region, along the South Shore. In the first two months of the year, realtors said yesterday, deals are down 27.5% and 28.1% respectively.
Meanwhile in Toronto the cartel announced an 11.5% drop on overall sales in the first 14 days of March, which included a 13.8% drubbing for single-family homes. Average prices were up from a year ago, which is exactly what the crumbling of a boom brings, reflecting a shift from condos to mid-range SFHs.
Topping it off, yet another batch of Big Bank economists warning people about buying homes – at least if they expect to make any money. Last week it was TD. Now it’s Scotia. Head egg Adrienne Warren asserts nobody should expect price growth in the years ahead, saying “the underlying fundamental factors that drive home prices – income gains, interest rates and population growth – are becoming less positive for further strong price growth over the medium and longer-term.”
Translation: We’ve been reading this really pathetic blog and it’s, like, wicked right.
Adrienne, who I personally know looks hot in a hairband, blames the looming retirement of the wrinklies, a slow-growth economy and ‘inevitably’ higher interest rates. This will all impact real estate (although she does argue most Boomers will stay in their homes, enjoying Purina One).
Finally, let’s make fun of Kim Campbell.
There was a time the woman was a goddess. I remember well her inviting me over to 24 Sussex Drive where a dude in white gloves served me tea. When the prime minister entered the room she asked me to be in charge of the country’s tax system, with its 37,000 employees and a gothic headquarters where my office sat high in a turret. I felt like a sniper.
But these days Kim is in trouble over a condo, of all things. She plopped down $368,000 back in the halcyon days of October, 2007 as a deposit on a $1.8 million condo in the Private Residences of Hotel Georgia, in downtown Vancouver. This swanky 47-storey development sprouted from the top of the iconic hotel, but too slowly. Kim’s unit was supposed to be done by the end of 2011, but was completed only a few weeks ago.
And guess what happened to its value in the meantime? You bet. Vertigo. Downtown Van condo prices have dropped an average of 18% in the past year, and luxury units like this up to twice that amount.
So she’s joined 14 other rich-but-scared people suing to get out of their deals. Nobody, says her lawyer, would close a deal on a property worth less than the purchase price. “The perception of my clients, and I don’t know if it’s true or not, is that they can’t sell these units for what they purchased them for, and therefore they want their money back.”
See what I mean? Forget those Cypriots ripping apart ATMs with their fingers just because some jackboot European politicians are sucking off their life savings without warning or precedent. This, in contrast, is true Canadian suffering.
So yes, doomers, there’ll be a reckoning. But it won’t involve bank failures, cash seizures, stock slaughter or bond bombs. No government or bankster will be blamed. It’s all self-inflicted. This is what happens when emotion moves markets. Greed makes us blind. Fear makes us fools.
210 comments ↓
Nice to see that all is well that ends well. Not.
Garth, do you support using stop-loss orders on every stock market investments, and if so, what percentage do you like to set them at?
Why would you buy individual stocks? — Garth
I’ll bet those two guys at the table are gold bugs.
Let’s hope it puts the “reality” back in reality TV!
I sold my Vancouver condo in the spring of 2010. I have rented for 3 years , and to my surprise, my rent has never increased. In those 3 years however, strata fees and property taxes have increased substantially. I like renting.
Big sexy’s first!
I think a new low has now been hit on this blog
Slow grind down, slow grind down….
I haven’t gotten my 50% downpayment quite together yet…. let’s have a slow grind down.
Or an awful to see mega drop that just sits at the bottom year after year after year, either way.
What Canadian REIT’s will be affected by the housing slump. Anyone that deals with residential mortgages? Or how does it work
Poor Kim. Sounds like the Trump Tower debacle, only on the west coast.
Now can we keep the gold chatter down, way down.
Thanks in advance.
More risk in a individual stock but pay out is greater, plus a good under valued blue chip stock paying dividends is better than a mutual fund.
Breathing on your own is better than a mutual fund. — Garth
#1 Big Sexy on 03.18.13 at 8:45 pm
I would.
House has been listed a few days short of a month.Still waiting for the phone to ring. But the sun is shinning on Van isle but thats about it.
Why would you buy individual stocks? — Garth
Not necessarily. I meant globally, as in ETFs, REITs, the whole sha-bang!
No. Rebalance is the key, not stop-loss. — Garth
That looks like Romania….
Kim Campbell was a puppet, and should have dyed her hair blonde, so all in Canada would all understand her complete no nothing about anything, and met her once and she kept on saying dah dah, as do not understand what the hell you are talking about LOL.
“Big sexy’s first!
I think a new low has now been hit on this blog”
Oh shucks, you’re just jealous I didn’t say the F word.
“No. Rebalance is the key, not stop-loss. — Garth”
Thanks man!
Regina Home Sales were up 5.9% in February from January! Awesome news. Go buy 9 more condos everybody!
Then you read the actual article and see that actual sales are down 26.9% from February 2012.
Gotta love the propaganda.
http://www.leaderpost.com/business/Regina+home+sales+February/8105933/story.html
TREB puts out stats, Listings up I guess, but I have never seen such little inventory in the areas I follow, my old hood, and my new hood.
Nothing , nada, zilich never seen the shelves so bare…..
Dispite almost a year of daily dose of MSM saying RE=BAD……can you imagen if F did not , cap mortgages to 25 y ams, and The MSM stayed out of the game.
Toronto would be worth more than Hong Kong.
Good thing they did what they did…….
My mom swears by Friskies. She says it’s more if a taste adventure.
Kim Palin? or was it Sarah Campbell?
Other than citizenship and ideology, I can’t tell the difference.
A couple of years ago a speculator tried to default on his condos on Macleod Trail S in Calgary (the London Towne towers) because the prices had fallen and he couldn’t get up. He defaulted on the mortgages and wound up in court. The difference between the price he paid for thin air (before the condos were built) and the date of closing was negative by tens of thousands. But he was aggrieved that the developer thought he should live up to the contract. Yet today, the Cowtown mass-media blithely assert that Calgary is different because we have oil.
I have investments in the awl biz (as my Oklahoma friends pronounce it). What most Calgarians don’t understand is that there isn’t a flood of awl biz people coming into town because the accountants are outsourced to India, and all those giant pieces of machinery for Athabasca were designed by Germans and built in China. My outfit is putting skid-mounted equipment on wellheads, every piece of which says Siemens Duwag or something in Chinese ideographs that I can’t read. The only jobs opening up in Calgary are sales associates for the new Target stores.
So who is buying those houses? The Boomers are staying put in their paid-off houses. Target sales associates don’t buy SFH in the boondocks. There are no new oil companies moving to Calgary. Condos are being snapped up by speculators who don’t understand that they are going to be involuntary landlords.
The cat is now out of the bag with Cyprus. The EU residents now know that the bankster cult can strike at any time into anyone’s savings to “save” some ill begotten country. Things will never be the same despite wishful thinking on your part Garth.
As for RE, what has been predicted by Garth is taking shape. I truly hope for all of us that the reduction in RE prices will be “melt like”. Anything faster and we are into a major recession and if that happens, watch out.
Read it Garth….
http://business.financialpost.com/2013/03/18/if-cyprus-can-dip-into-peoples-private-savings-how-safe-are-we/
Some of you will say she was a blonde in life, but not blonde enough as this woman was highly educated, but had no clue in life, as she was lacking in street smarts, and gets hooped in a Real Estate deal; give me a break as am crying a rivers of tears for her, and wish her well.
How does someone who has essentially lived at the public trough all her life possibly afford a 1.8 million dollar condo? Oh Right…gold plated MP pension!
Well I guess so far Calgary is doing eh ok considering the oil slow down and stuff. Guess it really is different in Cowtown. What now??
They got off light in Cyprus, they could have gone the route of inflation instead which is worse. Our official figure is bogus – costs are going up 5-8% a year if food prices, insurance, housing (soon to change), education, healthcare, energy, transportation and other vital everyday costs are accounted and weighted for appropriately. You could be making a ‘tidy’ dividend of 4.5%, and not realize you are actually falling behind thanks to his hidden tax, or at best treading water. One of the biggest issues for people these days are rising costs, clearly outlined by the increasing personal debt as incomes don’t keep up. “1.2%” is something I can only dream about.
This might come as a surprise but there is now talk on the net that Italy is going to suffer a 15% levy on bank accounts. I’d say a precedent has been set.
If you are looking for north american sheeple to freak out over it just wait until it happens here and then the masses will pay attention and probably not until it is in progress. Right now the bulk of the public is not paying attention to official thievery or to gold or silver. That is why there are no runs on the banks here or any mass buying of gold and silver.
It is a matter of willfull ignorance more than any thing else and that allows the powers that be to get away with quite alot for now.
I’m sure the Italians got it from an impeccable source like the comment section of this blog. — Garth
Tea!? Shocking. TheDude in WhiteGloves treated me to Perrier… with a twist of lime.
My bad. Different’Burg.
Other than that, NiceTry OldPol as regards the Blue/AttilaLine [albeit their snipers were a ‘tad’ more worrisome]… naturally, the rest of your piece was PositivelyBrilliant. As ever.
For those who are dying for a tour of Kim’s dream/nightmare home, watch the video at the end of this article
http://bc.ctvnews.ca/former-pm-kim-campbell-suing-vancouver-developers-over-tardy-condo-1.1197333
No. Rebalance is the key, not stop-loss. — Garth
They are not mutually exclusive.
QUOTE:
Finally, let’s make fun of Kim Campbell.
There was a time the woman was a goddess. I remember well her inviting me over to 24 Sussex Drive where a dude in white gloves served me tea. When the prime minister entered the room she asked me to be in charge of the country’s tax system, with its 37,000 employees and a gothic headquarters where my office sat high in a turret. I felt like a sniper.
===================================
Yeah but Garth…
She was quite hot back then…
http://iconicphotos.wordpress.com/2011/07/03/kim-campbell-qc/
There you go, we are now back below 2009 prices.
Kim wouldn’t be suing if she could make a profit. Also she’s a smart cookie and probably realizes she can lose her panties on this blown deal.
Hopefully the courts doesn’t allow these guys to bow out. Its the change you make for buy a prebuilt, speculative building. She would be crying the blues if this puppy was making money.
It’s F that moves the markets. The lenders will be hurt too.
combined single-family home sales for this entire Lower Mainland area are 42% below year-ago levels
yeah don’t worry about Cyprus worry about Vancouver
okay, this is not a spectator sport anymore, like a tsunami, we’re in it. Mark Hanson says that as prices drop, mortgage delinquencies rise. By summer, we will hear pleas for foreclosure moratoriums, legislated mortgage renegotiations. In the US, these programs have not helped. My plan is to pay a family $1000 a month once they have moved out.
> Why would you buy individual stocks? — Garth
Maybe the options are more liquid in some stocks than on ETFs (well excluding SPY). Writing short-dated out of the money puts (and rolling them down in case they fall in the money), may generate quite a bit of income on the obvious blue chips in a choppy side-ways market. It takes cold-blooded diligence and risk management, but beats the pants of just buying the stock, IFF one manages to find a broker that actually has reasonable commissions on derivatives….
Forex Trading
Using my Camel Toe and Batman indicators for trading forex all I can say is wow, throw in rs and volume is amazing……
Click on blotter to view……..
Here: http://dyslexicsmokingman.blogspot.ca/
You can open an account for as little as you want, not sure if you can do it via a TSFA got to ask Garth about that one.
Would ask my account but he’s always shit faced. Still like him….
The way it works is you bet units, each unit is about 100k in play, cost you about 1.5 k to put on that bet.
Most I had in play was 7.5k at anyone time or about 400k.
Click on chart look at the 3rd trade 75 profit , had 5 units on that one. That sucker went from in the money of about 1200 to 75 faster than I could figure out how to exit the trade. Because I am new to this platform will not be making any big bet till I can execute trades drunk, def and blind.
My only fear is execution errors and slight delay Phone vs Trade Station…..But is workable. What is cool you can trade 24/5.5 days a week. Forsure when I get ready to get shit faced, The Galaxie 3 goes in the safe.
This is not for the faint at heart, was out of the money a few times, huge balls and faith in my batman/camel toe style keeps me in the game long enough you yield a profit.
Name, account , and trade Ids covered to protect my privacy.
Only thing that sucks and mabey it’s there is the market depth, so when I take postions it is going to be multipls of ilimit orders of 1 units, but then again the second last two trades one was market one was limit, got same fill price…..
Suggetion for anyone that wants to try this, go slow, and light for min a year, you will lose till you get a feel for it..And even if you try a demo account, and rock and roll, its a different beast when you have real skin in the game. way different. Mind you money is more like poker chips to me. Never break a sweat collecting it so does not have the same value to me as to a window washer…..Scared money never makes money…
Are you saying never ever buy individual stocks? What about the good stuff lik BCE or BMO or FORTIS at least long enogh to double your money over 5 to 7 years?
As posted by Vlad yesterday: “and Shreveport, La. has a bigger economy than Cyprus.”
Shreveport had a CFL team and it went under. No one panicked.
Maybe Cyprus should pitch for a CFL team and maybe a Tim Hortons too. If both do well, then all is well. That’s the only way to get through to Canadians it seems.
It’s like this. Say a Great Dane runs at you barking. You say “It’s just a Great Dane.”
A Doberman now runs at you. “Oh it’s just a Doberman.”
Now a Yorkie comes yipping away towards you. What do you do? You panic!!
That Yorkie is Cyprus. Greece was the Doberman, and the Great Dane was, well, you pick, Portugal or Spain. Why freak out over the lap dog?
Here’s a clip from Mary Poppins. It’s the bank run scene. Reminds me of the last few days on this post.
https://www.youtube.com/watch?v=lfP8__wl-_4
Amazing how convincing Russian Mafia can be, right Cyprus?
What’s so bad about mutual funds Garth? I know there costs can be high, but isn’t a mutual fund the same thing as a portfolio of bonds/equities??
Sure, with someone sucking off 2.5%. — Garth
[…] via Self-inflicted — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate. […]
Gee.. I wonder what was in that ‘Builder’s Contract’ that lawyer Kim and her lawyer read and signed. You’d think lawyers would be more carefull.
Perhaps…
‘Price drop before closing nullifies this agreement’
unlikely
‘excessive construction delays nullifies this agreement’
again…unlikely
Garth, in my experience (as you may remember), 2.5% is on the low side. Add to that 0.5% yearly f#$&er-fee and it can be 3.5%. Add inflation and the mutual has to gain 7% before you make 0.5% on your money. NUTS. Thanks for the education, Garth!
Sold my Vancouver townhouse in spring 2012, have been renting since them. I have 260K down payment, I want to buy a house. Thinking of 2014, hoping prices are reasonable then. What you think?
This realtor is treating MLS.ca as his own reverse auction site (lowering the price until he gets an offer):
http://guava.ca/?p=3317#more-3317
Mar 18: $4,391,888
Mar 17: $4,392,888
Mar 16: $4,393,888
Mar 15: $4,394,888
Mar 13: $4,396,888
Mar 6 : $4,397,888
Feb 24: $4,398,888
Jan 17: $4,498,888
It’s like some kind of bizarre HAM Price Is Right game!
(and, I’m sure all of those $1,000 reductions mean a lot to someone paying $4.4M)
(first listing on that guava page)
Buy a sports car. You’ll get way more excitement.
the markets have already experienced enough european crisisses from the piigs countries that now any small issue is just shrugged off. Unless germany or england collapse, then the markets won’t care. all the stuff happening now will be filler in an econ textbook that some poor child will have to learn in the future for no apparent reason.
We will find out after the vote on Cyprus whether or not the Cypriots got IMF’d. To steal the savings of the people from any banks in any way that are “insured accounts” is just wrong. No exception.
Good thing that in Canada the Canadians are only getting F’d. And by themselves too.
A reliable source or just another doomer?http://www.ft.com/intl/cms/s/0/b501c302-8cea-11e2-aed2-00144feabdc0.html#axzz2NwvjfXyE
This story still has legs, might need them for the run, bank run that is.
I wonder what the border to Northern Cyprus will look like right soon?
Ironically, in 2011 Turkish Cypriots were protesting Austerity measures and new economic reforms:
http://www.setimes.com/cocoon/setimes/xhtml/en_GB/features/setimes/features/2011/03/10/feature-01
I wonder how they are feeling about this “isolation”…
Are the Banks on the Turkish side directly affected by the policy from the Greek-run Cyprus?
Garth It was not too long ago that people were suing the presales contracts in Coquitlam.
From 2007, ah what a good year that was.
“Pre-sale buyers in Coquitlam’s Riverbend condominium complex won’t be able to claim units in the project for prices they agreed to in their original contracts, a B.C. Supreme Court judge ruled Thursday.”
Sue to get in when the market is hot and sue to get out when it’s not.
Re: “So yes, doomers, there’ll be a reckoning. But it won’t involve bank failures, cash seizures, stock slaughter or bond bombs. No government or bankster will be blamed.”
This a rather sanguine statement. What then are you suggesting will happen if not any of these things?
Here’s a great investment:
http://www.realtor.ca/PropertyDetails.aspx?PropertyID=12942578&PidKey=1276119613
Price = $1.05M
From the description:
Tenant Pay $3000 A Month + Utilities. Lease End Oct 15, 2013
So, for your $1,050,000
+ land transfer tax ($34k+)
+ closing costs ($2k+)
= $1,086,000
You get to collect $36,000 per year (3.3% gross)!!!
Then subtract property tax ($500/month = $6,000 per year), and insurance ($100/month = $1,200 per year), and you’re down to about $28,800/year (2.65% net).
So, even with the assumption that you have zero maintenance costs (ya, right), you never need to pay any money to find tenants (like the 2-months rent a realtor would charge), you are making a return that is WORSE THAN A 5-year GIC:
http://www.icicibank.ca/personal/Investments/nontermDeposits.htm
And, this is all assuming that you pay for this house in cash. With any type of traditional mortgage needed (say, 25% down and 25 years @ 2.99% = $3722.77/month), and you’re getting some seriously negative returns.
Our government will be a little more discrete – e.g. if you have a public sector pension waiting for you at retirement…. “forgetaboutit”
“Average prices were up from a year ago, which is exactly what the crumbling of a boom brings, reflecting a shift from condos to mid-range SFHs.”
Why so? Aren’t condos the last to experience a rise, being more affordable than your average home?
An afterthought… Explicitly for SmokingMan.
http://youtu.be/lhUrWRV1cxs
SmokingMan, I don’t normally ‘engage’ absent a strategic objective… But, in your case, being a QuiteLikeableChappee – in a QuirkySortOfWay (especially when we allow that your prior diatribes attest to having been terrorized by either a VeryPoor ReportCard or an extraordinarily IncompetentPedagogue at some point in your distant past)… the parable seemed apropos. Just one thing though… please, don’t encourage novices to play with FX.
By the way, if you haven’t seen it… It’s not only instructive… but thoroughly wholesome, SM. You’ll laugh. I guarantee it.
Post #43 – Mutual Hater
While I agree that mutual fund fees are high, you’re math makes no sense. The management fee you pay on a mutual fund is all inclusive, and 2.5% is on the high side. I think you’re wrong to add inflation to the management costs, so I don’t know how you come to 7%. Some of the more aggressively priced funds out there are now around 1.75%, and they can offer decent returns after management costs.
Hot realtor/condo babe tries to get unconvinced virgins to take the plunge in Ottawa – “rent out the second bedroom to cover costs, it’s no different to a car payment.”
http://www.cbc.ca/player/News/Canada/Ottawa/ID/2347798708/
re. # 12 post
why would you “NOT” buy good blue chip stocks like GE that is up 40%? kimberly Clark, Johnson and Johnson?
Yes, I was a smart person and when people sold I bought…
Yes I have preferred, Reits and ETFs, I also believed the American dollar would rebound.
So, I don’t understand your comment re post #12?
To your last paragraph Garth, I say, “haaa…NOT YET!”
Just rebalanced Spousal RRSP today. Getting ready to make deposit for this year. Return for 2012 is 8.5%. Already maxed out her TFSA. Pleased with that, I sleep well at night.
Yes, I use mutual funds and I love them. No I don’t use a financial adviser. Bond funds at .60% and equity funds at 1.2% for an average MER of 1.02%.
Watching houses fall in value here in Victoria. Looking to buy but will wait until the spring rush, if any, is over. Lots to pick from.
It is truly amazing to me that investors don’t seem to worry much about Europe. It is a non-issue, I hear all the time.
Well, it will become a very big issue sooner than you think. When it does come, everyone will be surprised as usual. They have been deceived once again. This is what happens when market is reaching all time high. Nothing matters, until it will matter.
I would not buy any CDN Banks, oil company shares…etc. Keep cash close to you. You will be able to buy ALL assets at very deep discounts by 2014.
Go ahead, suck my 2.5% off. If I get an annual return of 9-11% plus dividends, why not? Hell, take 10% if you can return 20%…it’s the bottom line that counts, non?
With sales plummeting so fast, realtors are switching careers at the same pace. When I was young, we didn’t have many local realtors. Now it seems that almost every second person you meet is a real estate agent. I assume that the number of realtors will drop to normal levels soon.
#57 Nemesis on 03.18.13 at 11:20 pm
I have no idea on what you said… Did enjoy the clip, I saw the movie, I knew I was an alcoholic when he poured the booze down the drain. It was disturbing to say the leased.
–
“It’s all self-inflicted.” — I realize that, as self-responsibility plays a large role here. Most of the next gen. don’t have a clue about that, as they are probably the rebirth of the ’80s Greed is Good’ thought. Guess they will have to learn the hard way.
*
“As more and more Ponzi-scheme banks teeter on the edge of collapse, the call for global war becomes ever more strident. It is NOT a coincidence!. Out of chaos, order.” wrh.com.
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#258 Old Man on 03.18.13 at 7:51 pm — Looking forward to receiving it!
#262 bill on 03.18.13 at 8:04 pm — You’re absolutely right and I apologize for taking Studebaker’s name in vain!
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“I’m sure the Italians got it from an impeccable source like the comment section of this blog. — Garth” As per — Italy Next domino to fall, and Façade The EZone mess is finally being exposed plus Cyprus Like the twin towers and WTC7, it’s all been a controlled implosion. Wait ’til they lose control, ‘tho; ObombaCare The true cost, but ObombaCare ready to implode; What can happen if the US (or any western) govt. chooses to seize assets, and 3:44 clip Judge Napolitano says yes, the (US) govt. can seize funds; Special Case? They’re all special cases in the EZone, and Leave the EZone Have some testosterballs and duplicate Iceland; Water into Gold? Apparently so; Denmark 4closures, RE prices sink, and Irish 4closures; Apple Boosting dividends; Dems., food stamps and meat inspector furloughs; Cyprus – UK Pensions This is Confuse-A-Cat, only on a larger scale; Argentina Roughly the same as Cyprus? Another castle, another price; Hmmm. Electricity as currency?
*
Coconuts in plain view; Just what this planet needs Bat-eating spiders; Neck brace? No, this is benign; Are You Being Served? Capt. Peacock, aka Frank Thornton passed over; Dictatorship Charged with keeping chickens on their own land; Mix ‘n’ Match A smart idea has to start somewhere; Speeding Up The NWO and NWPope; Sequester Scam Preparing for something; Bullshit Alert! and this. Has anyone checked anti-depressants? US – SKorea NKorea is just a useful idiot for the US, China and US threatens; Iraq War was based on lies. Gollygosh, do politicos RREEAAALLLYYY lie? Pepsi What did they replace sugar with? UK Farmers They’ve got one helluva job on their hands; Atlantis or Katrina?
Cypress depositors were actually insured, according to insights from Peter Schiff:
http://www.youtube.com/watch?v=sgIHvHeLeEk
Indeed, Nemesis… and Smoking Guy. Not many know, the FX is not regulated. This attracts all kind of creatures to the brokerage industry. Also, more sinister, the liability you have is not limited to the account. I bet you didn’t know that SM. Leverage even at 20, internet down, stops not working (oops… we don’t know what happened), margin call too slow to kick in, and you are in a big poo.
Strange… I was just reading a Peter C. Newman critique of the lovely Ms. Campbell (circa 1993) last nite…apparently, the succeeding years have not enhanced her reputation…judging by the comments here, anyway.
Anyway, I’m firmly convinced that “real estate” will be a spectator sport for the foreseeable future, as apparently she is discovering as well.
Another coincidence…I was wearing white latex gloves at work today, & I served my wife coffee! However, I was just taking a break from welding a rocker panel onto a POS Jeep.
Btw, there’s too much snow in Edmonton…
smoking man get sober before zeus finds his favorite tree stump!
“But it won’t involve bank failures, cash seizures, stock slaughter or bond bombs. No government or bankster will be blamed. It’s all self-inflicted. This is what happens when emotion moves markets. Greed makes us blind. Fear makes us fools.”
Who is self inflicting what Garth? This does not make any sense.
Of course no bank or government will go broke. That is what the tax payer is for. To bail out the parasites.
#23 old guy,I cried for 14 hrs. 60 mins. for each millionaire. I’ll be aging pretty quick for balling for so many hours.
So Scotiabank is as infatuated with real estate as the rest of us? Go figure. If Mrs Warren is in company stock option she’d hang onto her pad. Got to find out whatz up rest of her generation though. Maybe she’s set to be the Kim Campbell of the banking industry.
Rescission of presales is driven by REDMA. Sloppy developers are not documenting changes in projects and are getting their peepees smacked…
Been watching the MLS listings on Van. Island.
Daily.
I keep refining the dates, just to keep up with what new listing has been popping up.
In the past four days, nothing was showing up. I thought that were was maybe something wrong with the site.
So today, I upped the price range to $600.000.
Then… finally… 1 – ONE! listing showed.
One listing on the entire island in at least the past four days, and absolutely nothing below that.
Did they run out of sellers on V.I. ?
Nobody leaving the island ?
Or has the word spread, and potential sellers just know that they will not get anything near those outrageous prices anymore.
Just a strange “spring market” overall.
Wealth confiscation is coming, the greedy banksters and the evil politicians are making this come to pass.Diversify and limit losses.Gold,silver and hard assets outside your own country is your best bet.The goverment of all countries will always find a way to take your money,so this is not surprising of what Cyprus is doing.
Rubbish. — Garth
Garth, Screw Cyprus! It’s Russian mob land and they’re the only ones taking a 10% on their ill gotten gains. The real story, and I don’t want anyone to panic but Lululemon is running out of material for their mommy yoga pants. It’s a canary in the coal mine moment!
http://www.youtube.com/watch?v=n2iLa_VP3DA
Buying a condo for $300,000 or $400,000 and paying $300 to $400 a month in condo fees is equivalent to a 1.20% annual tax on the property’s value. If you add property taxes you are up to about an equivalent 2.00% to 2.20% annual tax. If you add the land transfer tax and H.S.T when you bought the condo depending how long you own it it could add another 0.30% to 0.50% to the 2.20% so now your up to 2.50% to 2.75% annual equivalent tax.
This means in 10 years it’s like paying a 27.50% total tax on the property’s original value. Remember this is just condo fees,property taxes,land transfer taxes. This does not include mortgage interest,mortgage fees,utilities,insurance,lawyer fees,CHMC fees,real estate commission,H.S.T on all expenses and many other fees I’m sure exist I did not mention.
Canadian real estate sales,prices,taxes,costs,expenses,H.S.T. on related real estate costs is the real issue that Canadians should be worried about. Also, the Canadian 165% record debt to income ratio and less than $100,000 in financial investments,savings few Canadians have is another big problem to be concerned in the near future.
#9 Dave:
Not likely when two of the first ten posts are obvious baiting.
Reuters is reporting that the government of Cyprus is set to back down from the “tax”.
http://www.reuters.com/article/2013/03/19/us-cyprus-parliament-idUSBRE92G03I20130319
Rumor has it that Putin stepped in to protect his gangster and oligarch buddies.
The problem may be bigger than previously thought.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/3/19_Sinclair_-_Cyprus_Disaster_Is_Much_Bigger_Than_Being_Reported.html
Garth the gold and silver bugs you complain about on your blog have some very big allies who love the precious metals. We are not a few kooks on the fringe of society. We are prescient and sophisticated investors with the foresight to get in on the ground floor of some thing the majority shuns and reviles so that we can buy low and sell high or buy low and retain wealth. This will become obvious as things progress.
The price of metal relative to financial assets, the GWP or the money supplies is insignificant and there is no gold or silver bubble.
People who buy rocks and hope they’ll increase as society withers around them are gamblers, not investors. I have more patience for lovers of granite. — Garth
#64 Riding the Pine on 03.18.13 at 11:52
Wow, the rationality of your last comment amazes me. Why pay more to hold an investment? You can find etfs that that have the same equities/bonds as your mutual funds with Mir rates at 1/2 a percent. I guess the nlatb must be really hot.
“There was a time the woman was a goddess. I remember well her inviting me over to 24 Sussex Drive where a dude in white gloves served me tea.”
What a victim Kim Campbell was. A patsy for Mr. Mulroney and his minions after the hated GST and falure of the Meech Lake Accord decimated his government. Ahh, the good old days.
#81 Yellow Rox on 03.19.13 at 5:44 am
“Rumor has it that Putin stepped in to protect his gangster and oligarch buddies.”
——————————————————————–
Makes perfect sense.
Why should the EU be resposnsible for the Russian criminals’ money.
People who buy rocks and hope they’ll increase as society withers around them are gamblers, not investors. I have more patience for lovers of granite. — Garth
_______________________________________
it’s amazing how biased you are.
one doesn’t have to believe in the collapse of society to own precious metals.
just that government will do plenty of stupid things to destroy the purchasing power of individuals.
you know, like sealing money from your bank account,
or running trillion dollar deficits,
or printing those trillions from thin air.
precious metals are one way to protect yourself from stupid government officials. and criminal bankers that blow up the economy. and from greedy CEO’s at Fannie and Freddie and Lehman and AIG …
but you can’t admit that.
Rocks do no such thing. The accumulation of usable wealth does. Some day you will learn this. — Garth
#64
That attitude makes no financial sense. Mutual funds, “You keep using that word. I do not think it means what you think it means”
Love how Smoking Man is out there trading and making money trading forex. Much better than most of the idiots on this blog who can’t wait for the real estate mkt to melt so they will feel better about themselves. Pretty sad if you stop to think about it.
Yeah. He’s our idol. — Garth
#191 yesterday
The U.S Cavalry of the 19th century trained their mounts to be ground reined, in plains country there’s usually nothing to tie up to so you drop the reins on the ground and the horse considers itself hitched.
I know the feeling. — Garth
Retail Forex trading is a gray area. Technically its profits are not declared to CRA ‘at all’ – esp. if you are using a US outfit – nor required to be, some say. US retail brokers offer forex and futures accounts to Canadians. But not equities/options unless they have a Canadian registered office.
you dogs,check out van. craigslist realestate listing this morning.About 30 boomers put their houses on the market with 1 percent realty.They want a bigger Cech in Maple Ridge.
#26 Stolen Account on 03.18.13 at 9:23 pm
“One of the biggest issues for people these days are rising costs, clearly outlined by the increasing personal debt as incomes don’t keep up. “1.2%” is something I can only dream about.”
Excellent post, and relevant to right now and going forward.
Sourcing almost all goods ex-retail is a huge help (thrift shops, charity shops = no tax) in mitigating the true rate of inflation and you also get another great payoff: whenever you save money and recycle this way, you are also self-carbon-crediting, and reduce your carbon footprint enormously.
No need to consider even buying credits.
Retail FX trading is spot forex positions which are rolled over daily. Puting it this way, if your overseas relative sends you money and you covert into CAD – making a few bucks – must you declare this FX ‘profit’? No, that’s the argument. On a larger scale.
“He’s our idol.”
Gentle Jesus, hear my plea,
and make a Smoking Man out of me.
“It’s all self-inflicted. This is what happens when emotion moves markets. Greed makes us blind. Fear makes us fools.”
**********************
Poor, poor Kim….my heart bleeds for her. Not.
What a dumb stunt for a lawyer to make…tsk, tsk!
..And stupid makes us demonize the truth tellers
http://blogs.vancouversun.com/2013/03/18/how-does-foreign-ownership-impact-vancouver-housing-costs/
Once you deposit your money into a bank, you give up your right to ownership, ie, It’s a LOAN to the bank!
Your deposits are then lent out multiple times as is the agreed practice under fractional reserve banking, & it has a risk of not being returned…but
The EU bureaucrats and IMF have ripped up the legal framework for property rights…
by taking money from depositors (the most secure part of bank capital ladder) BEFORE taking money from shareholders, junior and subordinated bondholders!
Oh yea, and called it a “tax” to get around that pesky depositor’s insurance thingy.
It does not matter how big or small they are, or whose deposits are there, or how the depositors got their money. That is a distraction.
The issue here is that EU bureaucrats and IMF are making their own rules on the fly, and have now dramatically changed the game. Watch out Italy!
Meanwhile, in Regina, the stupidity escalates…with enough granite countertop and stainless steel I’m sure people will be lining up for a gas refinery view and accompanying smell.
http://www.cjme.com/story/regina-city-council-looks-new-sub-division/101360
#56 Investx – Condos here are no more affordable than SFH – very little, if any, price difference between them and a modest house, at least in the NW area of the city that I’ve been watching. Also not much difference in property taxes between the two.
#1 Big Sexy on 03.18.13 at 8:45 pm
“…do you [use] stop-loss orders on every … investments, and if so, what percentage do you like to set them at?”
———-
I don’t think any rational investor would have a stop-loss order at the same ratio for all investments. It doesn’t make sence since different investments have different levels of volatility and support/resistance can occur at different levels. If you are going to use these kinds of tools, you should at least make a judgement for each individual investment separately.
Garth, since you are obviously anti-precious metal why oh why do the gold bugs still flock to your blog. I don’t get it.
Charisma. — Garth
“Nobody, says her lawyer, would close a deal on a property worth less than the purchase price…”
*****************
And, that is his pathetic argument? :-) Lotsa luck….
#79
I bought a condo in 1999 for 300K and the condo fees alone started at about $400/month back then, when the building was new.
I sold it last year and moved out on May 30th. By then, the condo fees were just under $1,000.00/month.
With property taxes added to that, I was paying $15,000.00 per year, for a place that I owned.
It was like paying rent for a place that I bought – no mortgage, ever.
Now I rent.
#83 Steven Rowlandson — “We are not a few kooks on the fringe of society. We are prescient and sophisticated investors with the foresight to get in on the ground floor of some thing the majority shuns and reviles so that we can buy low and sell high or buy low and retain wealth.”
Quem deus vult perdere, INSANE IN THE BRAIN prius.
60 Wilbur – because it is up 40%?
#40 Vandamncouver: “GARTH: Sure, with someone sucking off 2.5%.”
*********************
All the while making poor choices and giving bad advice, to boot.
I don’t think sales were even dropping this fast in some of the worst hit places in the US.
Is it possible that even if sales drop the actual price impact maybe minimal? People might hold out, right?
Garth you keep referring to gold and silver as rocks, yet I have no rocks, only coins with value (silver maples).
Worse. You paid a premium. — Garth
#85 The Real Kip –
”What a victim Kim Campbell was. A patsy for Mr. Mulroney and his minions after the hated GST and falure of the Meech Lake Accord decimated his government. Ahh, the good old days.
Didn’t he leave her in charge of the OKA uprising and went off on a holiday somewhere? Testing her for his job I guess. lol
#101 Brunette on 03.19.13 at 9:38 am
Besides his obvious charisma, Garth has an undeserved reputation as a “doomer”. I don’t know why, he’s pretty optimistic about equities in the USA and preferred shares of viable Canadian companies. I think it’s from his days of advocating squirrel recipes and fall-out shelters.
Anyway, “doomers” attract precious metal-heads. They love the end of the world scenario, or at least a Zimbabwe hyperinflation comes to Canada scenario where their hoarded gold makes them zillionaires relative to those holding cash or bonds.
Garth is the only legitimate blog out there that has a whiff of doomer to it, even it is undeserved! Even with Canadian Real Estate, Garth sees a correction not a crash.
#90 – Drydock –
”The U.S Cavalry of the 19th century trained their mounts to be ground reined,”
Sure beats the “ball and chain”.
#102 Daisy Mae
His argument is that rich people aren’t supposed to lose money. Don’t believe it? Keep watching the story.
Looks like Calgary RE will continue to rise, Alberta will continue to boom inspite of deficit:
http://www.calgaryherald.com/business/Alberta+economy+continuing+impressive+boom/8119277/story.html
So buy a house. Let us know how it turns out. — Garth
NZ bank news making me edgy.
Not New Zealand to! Oh, the humanity. http://www.scoop.co.nz/stories/PA1303/S00306/national-planning-cyprus-style-solution-for-new-zealand.htm
@103 Rob in TO: That’s crazy! Given the fees, I can’t believe people pay more than $100 a sqft for condos.
Regarding Forex, my impression is that it’s a zero-sum game, where one person’s gain is another’s loss. This falls under the numerous problems I see with the financial industry:
1) Zero-sum game: One person’s gain is another’s loss, ie a casino. This includes forex, high-frequency trading, and betting on stocks.
2) Transaction Parasite: Do fancy bankers trading pork futures make bacon more expensive at the grocery store? (I don’t know, but I would imagine so, because their salary isn’t coming from thin air. It can’t all be zero-sum, since all the banks continue to operate.)
3) Owner Parasite: Winners of the birth lottery (with money) buy stocks and grow wealthier without contributing anything themselves. The company employees see their real wages stay stagnant for decades.
When I invest, I hope to do three things. The first is to grow money for retirement. The second is to do it in a way that actually helps the economy, for example money to a company that can use it to grow its business. The third is to mitigate the disadvantage I have as a worker-bee, although we are all still at a massive disadvantage in this regard. The system is flawed but we have to operate within it. Another option that smoking man would recommend is to be as efficient a parasite as possible.
Read this, Kim Campbell et al already have precedent set to win the case:
https://www.bht.com/tw_0040
#86 AK on 03.19.13 at 7:38 am
#81 Yellow Rox on 03.19.13 at 5:44 am
“Rumor has it that Putin stepped in to protect his gangster and oligarch buddies.”
——————————————————————–
Makes perfect sense.
Why should the EU be resposnsible for the Russian criminals’ money.
===============================
Perhaps this is why our local RE market is “left alone”.
#99 Susie Q
Baahahaha! What’s going on Regina !?!? so not happy with a “community” right beside the airport, now you wanna put one right beside the refinery ?? hahahhaa… running outta land?? ;-)
There’s plenty of undeveloped land around the dump, you know?
Constructors must be salivating…
And what’s up with housing prices?
750K twenty something year old houses in Glencairn?
And I thought Vancouver was delusional .
By suing developers because the property value is no longer worth what they agreed to pay for it, aren’t people admitting that it was an investment? And investments by their nature are prone to gains and losses? Sorry, can’t feel sorry for either side. It’s not like they’re a bunch of seniors who got swindled by a slick Ponzi scheme salesman. These are $1.4 M dollar condos–these people are supposed to know better. But greed… Oh, sweet greed is delightful.
#66 Smoking Man on 03.19.13 at 12:00 am
“It was disturbing to say the leased.”
Your constant butchering the Queen’s English always seems to have a subtle humour! Your malapropism is especially funny on a RE blog. I had the biggest laugh of the day so far. Hilarious!
Above pic shows what happens when you opt out of purchasing property, swim against the current and go the prepper route.
Failing to boil that canned squirrel for the recommended time suggested in the “We’re All Cousins” handbook have made Handy & Randy pay the price.
Save yourself the pain, shame & aggro
buy a house for Christ’s sake
#83
People who buy rocks and hope they’ll increase as society withers around them are gamblers, not investors. I have more patience for lovers of granite. — Garth
—————
I think it is called “insurance.” Besides, last I heard granite IS a rock! I’m a quartz man myself.
(Disclosure: Don’t own granite/quartz. Renoed in laminate. Stone is too heavy right now. Must do floor bracing to prepare. That’s insurance too!)
#118 rosie “moving backwards” Not NZ too
The big question regarding Govt looting of assets is when Canada’s government fingers get itchy.
How will a citizens assets be defined in this brave new world order.
At present, homes that are used as main residences are not taxed after sale.
But what if the foxes decide to suddenly include homes as an asset (even if you never sell it)
Something like the annual cash grab scheme local govts invented for “market value taxation”
Maybe they’ll call it:
“You were dumb enough to buy it tax and slow enough not to see us coming tax”
All kinds of schemes & scams at the looters disposal.
What they say is law and protection today can disappear tomorrow with the stroke of a lawn ornament’s pen.
#105 Gunboat Denier
That’s it! he’s priced out forever. Has to slum it out in a savings account now. His parents must be so ashamed.
Remember, there are different kinds of “doomer” out there.
A guy like Peter Schiff, for example, has never claimed that you should put all your money in gold — He’s always claimed it should be part of a diverse portfolio. The big question has always just been where you want to place your diversified assets — Gold may be part of that portfolio, but a minority part. I believe he starts to admonish people with more than 20-30% of their portfolio in gold, exactly because it’s not something that pays you while you hold it.
#109 CP
Face value: $5.
miami condo’s hot again….
During the height of the housing boom, some likened the feverish flipping game in Miami’s condominium market to a circus. The circus is back, and more high-flying than ever.
http://finance.yahoo.com/news/defying-gravity-miami-condos-flying-155857049.html;_ylt=AuDitYSk2e0n0ix_hGPMbpKiuYdG;_ylu=X3oDMTQ4OXZiazBlBG1pdANDTkJDIFRvcCBTdG9yaWVzBHBrZwNhMzhmYjMyNC00OTBmLTM0ZTYtYjQ2NC01MzQyOWFhMDA1ZTIEcG9zAzEEc2VjA01lZGlhQkxpc3RNaXhlZExQQ0FUZW1wBHZlcgM1N2UyMDQxMC05MGIwLTExZTItYmU3NS1hNDE5OGQ0YjM2M2M-;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3
ok, thats a flippin big link!
does this mean that we buy tor and vcr RE with both hands if the price ‘melts’?
If only I was born a few years earlier I could have afforded a place to live back then, allas anyone under 30 has been royally screwed.
http://creastats.crea.ca/treb/images/treb_chart05_hi-res.png
2009 it was under 350k…. 2013 its over 500k!!! How did everyone’s salary go up 70% in 4 years — oh wait, it didn’t!
Their debt did. — Garth
#115 FarFlung
It doesn’t depend on guessing anything. In 2008, prices were in freefall, until ZIRP, loosened lending and the still-existing CMHC 0/40 mortgages rescued it. I owned a recently purchased condo back then, so I remember those days well. Lets not be rewriting history here.
This is only up to 2010, but I’m guessing the growth rate stays about the same…
http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/famil107a-eng.htm
Ditchmond Imploding? Check.
RE Franken numbers? Check (Garth gets his due credit:)
Compliant and useless media? Check
Oh My
OPPS WEBSITE PULEASE
http://whispersfromtheedgeoftherainforest.blogspot.ca/
Bubu on 03.19.13 at 2:41 am
Been watching the MLS listings on Van. Island.
Daily.
______________________________________________
Last 4 days in Greater Victoria there have been 76 new listings with 60 being under $600K
Parksville and Qualicum areas have had 24 new listings with 20 being under $600K. 5 new sales completed as well.
spv – conduit to repatriate funds out of and into other jurisdictions in a tax-efficient manner
===============
Argentina has alleged that the bank used “fake receipts” to facilitate money laundering and tax evasion, and launder 392m pesos ($77m; £50m).
The country’s tax authority said it had filed criminal charges against HSBC.
=
2 Prison Inmates Claim $1.1 Billion In Tax Refunds; 173,000 but the Internal Revenue Service is catching on. The IRS – huffington post
#114 The Prophet Elijah on 03.19.13 at 11:05 am
Looks like Calgary RE will continue to rise, Alberta will continue to boom inspite of deficit:
http://www.calgaryherald.com/business/Alberta+economy+continuing+impressive+boom/8119277/story.html
So buy a house. Let us know how it turns out. — Garth
———————————————————
Garth are you just endorsing Calgary going forward for RE, but not other parts of Canada. Indeed it is different in Alberta!
Smoking Man /Old Man has sexalday I mean dyslexia
nzland
http://treasureislands.org/tax-haven-new-zealand-a-dirty-rose-by-any-other-name/
http://www.taxresearch.org.uk/Blog/2012/10/09/why-is-new-zealand-a-tax-haven-the-answer-is-on-the-web/
the elsewhere’s
http://www.secrecyjurisdictions.com/PDF/SecrecyWorld.pdf
Projecting forward GTA sales to the end of the month, looks to me that sales are likely to come in just over 6600 – which puts this March on par with March 2008 – not exactly a stellar year. This would also put sales about 25 – 30% less than March 2012. There are 2 less business days this March versus 2012 – so that will no doubt be the TREB headline. Possible other TREB headlines:
– Easter Bunny comes early and helps balance the market
– Outstanding open house traffic in GTA in light of an extremely short month and ongoing asteroid threat
– March 2013 home sales blow…past 2008 and 2009!!
Here is a what if on personal gold holdings for all you bugs. What if the government in Canada decided that a special surtax would be imposed on any citizen who cashes in their gold for say 20%. The government has the power of taxation, so think about it.
read what pissed him off
Prouty, we learned last week, is the 38-year old bartender who videotaped the $50,000-a-plate Boca Raton fundraiser where Mitt Romney wrote off 47 percent of the country as victims
http://truth-out.org/news/item/15200-the-real-reason-scout-prouty-leaked-the-famous-romney-47-video-it-was-over-romney-profiting-from-slave-labor
Now New Zealand contemplating the same Cyprus style tactic on bank depositors…
Wake up Garth… This is not doers conspiracy theories
This is real and very possible in all counties…no matter how much you poo poo it
http://www.scoop.co.nz/stories/PA1303/S00306/national-planning-cyprus-style-solution-for-new-zealand.htm
National planning Cyprus-style solution for New Zealand
The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.
Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.
“Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand – a solution that will see small depositors lose some of their savings to fund big bank bailouts,” said Green Party Co-leader Dr Russel Norman.
Impeccable source: the Green Party in New Zealand whose members are illiterate. You metalheads sure strain credulity. — Garth
Ben Davies
“The Troika has run roughshod over the rule of law. By calling for a universal bail-in of depositors (the securest part of bank capital ladder) before extracting money from shareholders, junior and subordinated bondholders, the EU bureaucrats and IMF have unilaterally ripped up the legal framework for property rights. This is a truly worrying and frightening progression – actually regression – in economic freedom. ”
http://www.hindecapital.com/blog/cyprus-oh-the-irony/
Garth,this issue in Cyprus isn’t over just because no reaction in the financial world…I can guarantee that plans and preparations are being made by those with the big money…this chicken will come home to roost!
I’m sure many have seen this video already…but this version is updated with good editing to drive the point home in a more contemporary mode.
OBAMA’s END GAME REVEALED BY KGB – Communist Obama Socialist / Marxist / Leninist
http://www.youtube.com/watch?v=_Iz3VjoHXLA
Note: the original version was made almost 30 years ago.
As I have said before….what we see unfolding is an attempt to get rid of the middle class, and set up a 1% “HAVE” versus 99% ” HAVE NOT” system.
I remember my daddy telling me that my grandfather in KW had to take his gold to a bank for redemption. The facts are foggy, but may have been during the Great Depression, as the mandate came from the Government of Canada. Not sure if it was optional or by a decree under the law, as he had no choice.
[quote]#131 Devore on 03.19.13 at 12:37 pm
#109 CP
I have no rocks, only coins with value (silver maples).
Face value: $5.
[/quote]
Correct, and metal value currently a couple cents shy of 29$.
Greed makes us blind. Fear makes us fools.
then what? no greed and no fear will be safe enough?
#125 cramar on 03.19.13 at 11:59 am
#66 Smoking Man on 03.19.13 at 12:00 am“It was disturbing to say the leased.”Your constant butchering the Queen’s English always seems to have a subtle humour! Your malapropism is especially funny on a RE blog. I had the biggest laugh of the day so far. Hilarious!
……………..
I didn’t even know there was a word for it… Malapropism…. Cool.
It’s bad enough I got to look at an old queen on my 20 dollar bills. She must be rooling in those depends, knowing her happy subjects walk the streets with her mug shot in everyone’s wallet.
I like to think of myself as the center of my own universe. I am not a happy subject, so I don’t bother with caring about the queen’s English, my personal rebellion against the machine. Plus I had a small part in writing servalance text parsers that trap key words.
If you write something like this the algorithms will not catch on.
My nmam is mohmmaad I hvae smothnig in my sheos.
Is say fcuk the machine
Kim Campbell’s story reminds me of my Credit and Collection course while I attended BCIT. The course taught me that you monitor risk as nothing can ruin you faster than making monetary decisions based on faith/intuition alone. Honesty can be rare when it comes to money. In one class long ago, the course instructor displayed a chart of credit risk by occupation. Things may have changed but I suspect not.
To my surprise, the greatest credit risks were judges then lawyers. Being naive, I protested. The instructor said his experience and of others was that the legal profession were good at overturning a contract if they faced losses or an inconvenience (such as paying). Apparently, Caveat emptor (buyer beware) was an option for them. Later I became aware of the practice of greenmail where you use the legal system to extort money from a target. The goal was to get paid for dropping your lawsuit and going away. I haven’t cared much for lawyers since even though I have met plenty of fine ones. I don’t wish Kim any luck on successfully walking even though I voted for her in hope she would “reform” her party. I think the amount of petty corruption in the Mulroney government was the main reason that later forced Paul Martin to introduce austerity to save Canada from the IMF.
Kim’s action just smells of gains are mine, losses are yours. Like politicians, I would prefer to live with as few lawyers as possible. Hmmm, is that possible when they are commonly one in the same? Cypriots would have a good opinion.
Hi Garth,
Thought you and your readers might like an update on the ‘Frankennumber’ for Vancouver B.C., specifically, Richmond.
Thanks to “HAM”–who posted this over at RE Talks.
Notice the Frankennumber HPI didn’t change much so that will be their talking piece while the median prices, the best measure of central tendency in a housing market, sunk like a stone.
Feb numbers for three Richmond Suburbs, year over year:
Terra Nova
Avg price Feb 12 $1,245,556 Feb 13, $772,200 -38%
median feb 12,$1,388,000 Feb 13, $688,000 -50.4
Hpi Feb 12 $918,000 Hpi Feb 13 $876,000 -4.6%
Average DOM for Feb 13, 85 DOM
Inventory 66
Sales 5
Riverdale
Avg price Feb 12, $860,940 Feb 13, $624,167 -27.5%
Median price Feb 12, $972,500 Feb 13, $699,000 -28.1%
Hpi Feb 12, $646,900 Feb 13, $584,300 -9.7%
Total inventory Feb 13, 86
Sold 9
Seafair
Avg price Feb 12, 1,279,675 Feb 13, $846,475 -33.9%
Median Feb 12, 1,057,500 Feb 13, $787,900 -25.5%
Hpi Feb 12, $1,016,800 Feb 13, $856,800 -15.7%
Total inventory feb 13, 84
Sold 8
Self inflicted or Self Induced…
The European Union & Soviet Union similarities
http://www.youtube.com/watch?v=-KIc7jLx8RA
Vladimir Konstantinovich Bukovsky , now UKIP member, is a leading member of the dissident movement of the 1960s and 1970s in Russia
To Smoking Man (and any other new arrivals to Forex)
Be very careful about your use of oeverage and if you are operating blindly, at least check out dailyfx.com. Know that most speculators lose; if there is any hope of a positive outcome you’d best utilize some of the free (timely) resources that this site can provide. ie. ssi, ichimoku clouds (on forums), etc. Complicating this – in my opinion most hedge funds also use this site to see what speculators are doing then push the edges to break the stops of speculators.
my opinion, anyway
Is there anyone in Vaughan, particularily Woodbridge, that is in any business other than the construction, upgrade, sale and mortgaging of houses and condos?
Is Lowes and home depot really the cult worship for people who reside there?
Fear not all you recent buyers of illiquid, over priced houses in the GTA.
Many Italians reside in the area to soak up supply.
Houses are best ‘investamentos’..their mantra
Memo Smoking Man – well the cnd and euro are both going down, so my combo of selling the euro short with usd/euro with a factor is looking good, so have not lost my shirt yet, but always have another to wear if needed. Hey, if all works out the drinks are on me in Bermuda, and placed a hedge into the formula too, so no losses for me.
#138Oceanside
Thanks, good to know – what the heck is going with my PC or the realtor map?
Durn!
Garth,
You just have to run for the office of Prime Minister (Canada)….you call them as you see them.
#67 Nostadamus
Frank Thorton – thanks for that. He will live on in re-runs forever.
Much appreciated.
#113Devore: “#102 Daisy Mae And, that is his pathetic argument? :-) Lotsa luck….”
“His argument is that rich people aren’t supposed to lose money. Don’t believe it? Keep watching the story.”
****************************
Courts can’t make exceptions — for the weathy? — because to do so is setting a precedent. Then all hell break loose across Canada.
These people bought pre-sales. They’re responsible for their decisions. There’s a purchase date on the documents they signed. Can’t change that purchase date. That is the bottom line. Win some, lose some. They gambled…and they lost.
Everyone around the globe has lost…and it will be so with these greedy buyers.
“The perception of my clients, and I don’t know if it’s true or not, is that they can’t sell these units for what they purchased them for, and therefore they want their money back.”
Ever bought a new car?
#44Finally on 03.18.13 at 10:30 pm
Sold my Vancouver townhouse in spring 2012, have been renting since them. I have 260K down payment, I want to buy a house. Thinking of 2014, hoping prices are reasonable then. What you think?
I think that that will buy a nice, fully detached house out here in the Comox Valley. Right now.
BUT! next year there will be enough left over to make up a decent investment.
How often do you need to ‘rebalance’ and how do you go about doing this?
Talking to another parent at my daughter’s skating class (in Oakville, west of Toronto). They bid on a home two weeks ago for 570K. But guess what, multiple bids, the place sold for 640K. Can’t believe this is still happening.
What is this, did my source hear it correct, that F was on TV talking rock bottom mortgage rates…….
I believe little old contrarily Me Called that one…….
First he slows demand, over shoots a bit in Bc now the pumping begins again.
Question what will the track6ers do?
#166 Emily
do you really need someone to tell you how to use google?
you can do a ‘web’ search with it.
personally i search under the cushions for info, but a ‘web’ search is faster.
#167 Kris – Oakville has always been a great place to live near the lake, as has easy access into TO by road or Go Train; not to mention the marina, parks, and lawn bowling club. I am not surprised about the multiple offers for a key location, as always loved this area myself; not far from TO, but just enough.
re kim c – she is as good as out – the knife cuts both ways – the bldr did not send out the reqd paperwork as per the terms, ergo breached contract- clear cut and nothing to do with greed.
moral? – if you enter into contracts with lawyers, be sure to follow them to the letter.
#146 Randman
Another reliable source picked up the story. I chose the N.Z. one because it had a whiff of authenticity. “Precious” bugs like that. The other source, http://rt.com/business/new-zealand-cyprus-style-banking-failure-solution-477/ speaks for itself
Headline-seeking, non-accountable political opponents may smell authentic to you. All I whiff is opportunism. — Garth
Something of substance:
“The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.”
http://www.scoop.co.nz/stories/PA1303/S00306/national-planning-cyprus-style-solution-for-new-zealand.htm
Move along now, nothing to see here, can’t even imagine it happening anywhere but Cyprus…
Get real. Look at the source. — Garth
Re: #114 The Prophet Elijah on 03.19.13 at 11:05 am
All i see is foreclosures and price reductions on mls. Resale condominiums are still about 40 percent below their 2007 peaks. Just how does that translate into rising prices?
I’m not quite sure if Old Man is on the right in the photo but I am definitely sure that is Smoking Man on the Left. “Old Man queen to knight,,,,,,,Smoky, Smoky where are you”
Ha ha my friend got it wrong, F is forcing lenders to not offer lower rates.
And pull the rock bottom ones from market.
Yields are in basement, what happened to the free market. To bad the little F doesn’t do something about auto insurance and crazy student loans
A Central planning F
#68 Riding the Pine
Cyprus depositors were actually insured…
—————————–
Im not sure if the insurance was part of ‘protection’ refered to in a quote Garth included in his post yesterday:
“It robs smaller investors of the protection they were guaranteed,” said Sharon Bowles, chair of the Euro parliament’s economic committee. “If this were a bank, they’d be in court.”
Its becoming clear now, no dommer, no nuts conspiracy or tinfoil, that you should keep your money out of the bank and realestate. The invisible hand will act soon!
#172
Reply to comment. All I smell is oppurtunism.-Garth
That was my point.
#166 Emily
You must be fairly new to this blog. Your rebalancing question seems a common one. Garth (and other commenters) have covered it in general terms before including me maybe two blog posts ago.
#169 @Broadway sky train suggestion is similar to one I gave to another commenter last week. I also said how to search Garth’s site, i.e.: try searching “greater fool rebalancing (or rebalancing portfolios, investments). Scan the comments of the posts as well and other blogs on this (or other topics). After this I think I’ll give up. Aren’t we supposed to be in the electronic age?
Now am going to tell you a secret as Cyprus is a joke as the big money in Europe is not there with offshore money, as it is in Malta, and those fools had it all, but went with the Euro in 2008 too. I almost bought a home there on the cheap in 2005, as a retreat, and within a few months would have become a permanent residence on paper.
I guess the days of cash back mortgages are not gone yet. Saw an online CIBC ad yesterday that said this:
“CIBC Wealthbuilder Mortgage – find out how to get 4500 back on a 5yr fixed term 250,000 mortgage.”
And for the web search challenged here is the link:
https://www.cibc.com/ca/mortgages/wealth-builder.html
I’m sure there’s a catch. Maybe this how the Big Five will rebranding the cashback mortgage…selling as a wealth tool/product?
http://www.guardian.co.uk/money/2013/mar/19/older-people-interest-only-mortgage
=====
http://news.smh.com.au/breaking-news-technology/suntech-announces-default-search-for-financing-20130319-2gbn5.html
#36 ; ‘Smoking Man’ said something about ‘Camel Toe’. what the heck is a Camel Toe, is that like a lucky rabbit’s foot?
Old Smoking Man smart
Go through squirrel TSA
Show have no n*ts !
Here’s Nigel….
Farage: EU wants to steal money from Cypriots bank accounts
Do Not Invest In The Euro-Zone, “you have to be mad to do so” – as it is now run by people who do not respect democracy, the rule of law, or the basic principles upon which Western civilization is based.”
http://www.youtube.com/watch?v=JMf_KwQ2Xlk&feature=player_embedded
163 Daisy Mae on 03.19.13 at 3:10 pm
==============
One have to remember, most of those presales were sold within hours or days.
If Kim didn’t buy it someone else would of. Also remember the bidding wars which took place a year ago. Its no fault of the sales team. One must consider there is a downside to buying presales.
Remember Real estate never goes down. Until it goes down!
163 Daisy Mae on 03.19.13 at 3:10 pm
=================
Just image the consequences if KIM wins. Does it mean anyone taking a lost on a presale can just simply walk away. Who will be holding the hot potatoes once the music stop ?
CMHC, Taxpayers? The builders? Banks ( I doubt it, they set the rules)
So that’s what Kim Campbell is doing these days. I can remember back in 2006 seeing all the hype over condos, many not even built yet, in Vancouver and figured right away it was a bubble running out of control. At 45 years old, going on 46, I had been around long enough to see past bubbles and recognize the pattern. So how’s it someone who had the credentials to be prime minister couldn’t see what an idiot like me (who failed a college economics course by the way) could see? It’s obvious common sense isn’t necessarily a requirement for being prime minister. I’d much rather have Adrienne Warren as prime minister.
#184 Waterloo Resident – please do not ask about about a Camel Toe, as am laughing so hard about it all.
Camel Toe…?
Lululemon recalls pants for being see-through
http://www.cbc.ca/news/business/story/2013/03/19/business-lululemon-recall.html
have a look
http://www.icij.org/offshore
Offshore Players Revealed
Secrecy for Sale: Inside the Global Offshore Money Maze33Secrecy for Sale: Inside the Global Offshore Money Maze
OVERVIEW: The existence of a global network of sham company directors can now be revealed. This is the first installment of ICIJ’s worldwide research which will identify, country-by-country, thousands of the true owners of offshore companies
#98 Stickler — “The issue here is that EU bureaucrats and IMF are making their own rules on the fly, and have now dramatically changed the game.” — Ain’t life grand when you’re making the rules up as you go along? The old saying, “Dazzle ’em with brilliance and baffle ’em with bullshit” comes to mind.
#136 rainclouds — “Ditchmond Imploding? Check.” — Where’s BPOE, Mikey the Realtor and others of like mind? Have they left for Cyprus or NZ?!
#143 Axxman — “- Easter Bunny comes early and helps balance the market” — That is the most realistic response I have ever seen! Load up on ETFs of easter eggs and rabbits!
#148 Dr. Hoof – Hearted — Exc. post and clip. Shows the direction the west is headed into.
#152 Smoking Man — “Is say fcuk the machine” — In a word, I agree with you!
#163 Daisy Mae — “Then all hell break loose across Canada.” — It suits TPTB well as we end up destroying ourselves with no outside interference. See the judges in the US who are ignoring the rule of law.
Credit Suisse: Forecast for 2013 Global Growth (Map)
Yikes!
Canada ain’t lookin’ too “hot”,
http://www.thefinancialist.com/wp-content/uploads/2013/01/Global-Growth-Forecast2.jpeg
I have a new hairband tonight
I’m in. — Garth
Buy NOW Vancouverites. There’s a floor under Vancouver home price because the rest of Canada’s boomers want to buy there and buyers from other Countries think Vancouver is cheap. So what are you waiting for???
http://www.troymedia.com/2013/03/18/little-chance-of-correction-in-vancouver-real-estate-market/
Code of Ethics …as if some care about that
The contractors were hired through a ‘complex web of legitimate “pass through” recruitment agencies that mask the shady dealings’.
This report resulted from an investigation into a whistleblower disclosure in relation to procurement of contractors and contract services by CenITex (the centre for IT excellence).
Revelations of corruption and improper conduct within the IT operations of the Victorian Government painted a damaging picture of Australia’s technology sector in 2012. Staff at CenITex were found in a damning Ombudsman’s investigation to have accepted bribes and kickbacks and offered ‘blank cheques’ to certain suppliers
http://www.ombudsman.vic.gov.au/resources/documents/CenITex_Report_241012.pdf
…A CenITex project manager who had a vested interest in Company B, hired contractors predominantly from Company B and received cash payments as a result.
#152 Smoking Man
You’re trying far too hard. You’ve become a caricature of a caricature. You know why “the machine” needs people like Smoking Man? Because they’re the easiest ones to lead by the ring in their nose. The opposite of the track 5ers you lament so much; instead of pulling them towards you, you simply push them away, and they eagerly do the opposite, because they’re such independent rebels, thinking they know the secrets.
Look at this clown talking about RE : http://www.youtube.com/watch?v=Gde6jaCMbMA
Oh yeah spot forex is not an approved product in Registered accounts of any type.
Myself I trade these FX index options. Trade ’em as any other option.
http://www.ise.com/WebForm/viewPage.aspx?categoryId=98
“Get exposure to rate movements in some of the most widely traded global currencies. Apply the same trading and hedging strategies you use for equity and index options, including spreads with up to four legs. ISE FX Options® (FX Options) are cash-settled in U.S. dollars, European-style exercise and can be traded from your existing brokerage account. Trading in FX Options open at 7:30 a.m* (New York Time) and close at 4:15 p.m.”
Cyprus: the great exit experiment?
http://www.euroweek.com/Article/3174955/0/Cyprus-the-great-exit-experiment.html
They are looking for some candidates….
Anyone interested? Smoking Man? Training provided.
http://www.cbc.ca/news/world/story/2013/03/16/mars-one-live-die-mars.html
Best,
HD
Laaaaaast??
I guess in Cyprus, the guy with tons of equity in the ocean-front home and no savings was going to get off scot-free while the poor sucker renter who responsibly took care of his future with a nest egg in the bank was going to get whacked. They’re not even pretending to be fair any more.
#187observer
163 Daisy Mae
==============
One have to remember, most of those presales were sold within hours or days.
If Kim didn’t buy it someone else would of. Also remember the bidding wars which took place a year ago. Its no fault of the sales team. One must consider there is a downside to buying presales.
Remember Real estate never goes down. Until it goes down!
********************
So? What are you saying? No one is blaming the sales people. Yeah…there’s a downside to buying ‘pre-sales’. We know that. There’s a price to pay…and the greedy buyers will pay it.
#166 – Emily. Freebird told you how to find this but here a couple of links for you anyway: http://www.greaterfool.ca/2012/12/12/the-advisor/ and http://www.greaterfool.ca/2013/03/08/whats-in-your-wallet/. This blog is a wealth of great information presented in an interesting and entertaining way. It has what Vincent Flanders refers to as “heroin content.”
#187observer 163 Daisy Mae
==============
One have to remember, most of those presales were sold within hours or days.
If Kim didn’t buy it someone else would of. Also remember the bidding wars which took place a year ago. Its no fault of the sales team. One must consider there is a downside to buying presales.
Remember Real estate never goes down. Until it goes down!
******************
So? What are you saying? The RE sales team are scum…we know that. But it’s ‘buyer beware’. Kim made a decision. She bought a pre-sale…and like everyone else, assumed the value would go up. She was greedy. It did not. She lost. And the courts will not grant her immunity. Why should they? Why would they? The developers would be raising hell…
Camel Toe?
If you are a male over 16 years old and don’t know what it means, chances are that you may have missed out many other things about life!
my computer doesn’t load this web page properly – is it internet explorer?
also, are invesnment accounts considered banks – can my RBC RRSP account be taxed like the governments have started doing for no reason in Greece and New Zealand now?
Greece and NZ? Did you read that on the Internet? Wow, must be true. — Garth
Breaking news!! Oh Garth Bob Truman is at it again on his blog bad mouthing you.
Re this reply:
#114 The Prophet Elijah on 03.19.13 at 11:05 am
Looks like Calgary RE will continue to rise, Alberta will continue to boom inspite of deficit:
http://www.calgaryherald.com/business/Alberta+economy+continuing+impressive+boom/8119277/story.html
So buy a house. Let us know how it turns out. — Garth
Bob who? — Garth
#196 – Are we to believe this Rosylin Kunin?
Isn’t Cyprus part of Greece? And I was reading here about New Zealand thinking to do the tax thing too, sheesh, don’t you read your own blog!
Already addressed. Stop being juvenile. — Garth
Re: #107 The Prophet Elijah on 03.19.13 at 10:06 am
Lets summarize Japan tells the truth and America gives us fiction in the form of Alice in Wonderland or Through the Looking-Glass. Meaning don’t believe anything you see, heard or read out of America.
#177 Freebird
The way they circumnavigated the apparent protection was to call it a “tax”…the bank wasn’t the one who confiscated the money, the government was….ironically, I assume they are the ones that put those protections in place! Also, we all know banks and governments don’t go to jail.
#84 I’m stupid
If you’re that smart, then why don’t you set up your own mutual fund and get rich managing it??? Oh right, you call yourself stupid.
How often should I rebalance?