B of M

mom

Eighty-five per cent of Boomers own houses. The fat generation’s reaped more gain from the real estate bloat than any which went before. But in so doing, they screwed the kids. Now they’re making it worse.

Yesterday the cartel running Vancouver real estate put it all in perspective: prices in what used to be the affordable (east) part of town jumped 35.2% in the last five years. For the city as a whole (including poor Richmond and Burnaby), detached homes have surged by a quarter, and now average $922,600. Over in 416, the typical SFH is $856,000, and the average for all properties ($534,000) has increased at the same pace as delusional Vancouver.

If this isn’t a bubble, Mike Duffy and Rob Ford are chick magnets. Real estate inflation has sucked massive amounts of net worth into housing, given windfall gains to long-time owners, and created more debt than can ever be repaid and – worst of all – made shelter unattainable.

But this is what the free market’s for, right? According to the laws of economics, when prices soar above incomes and exploding debt is needed to support an asset value, it inevitably topples. That can happen when mortgage rates rise, or job growth stalls, or the economy sputters or when the next generation of buyers can’t get in. Then house values revert to the mean.

All of those things have transpired, or are taking place now, yet prices stay sticky. How come?

The popular explanation, especially in Vancouver, is to blame the Chinese. Without the yellow dudes from Guangdong with suitcases full of money, plus the local realtors happy to whip up panic, most people thought house prices would stay sane. In the GTA (where half the population was born outside Canada), immigration also gets the nod as being the real estate accelerant.

But this may be unfair. What if it’s the irritating Boomers responsible for it all?

That’s a trending view, as more and more offspring of the wrinklies get into housing thanks to big withdrawals from the Bank of Mom. One Toronto mortgage broker told the Star this week that a stunning 75% of the kids looking for loans have gift downpayments from their Boomer parents. “How else do you think someone in their 30s can afford a Leslieville semi?,” he said. “I see deals where parents are contributing $50,000, $100,000, $400,000. The Mom of one of my best friends sold her farm for $2.5 million and gave him $450,000. He bought a condo in Liberty Village for cash.”

What does this transfer of unearned wealth mean? For starters, it sucks off equity from inflated Boomer houses and injects it into those of their children – perpetuating the bubble. Second, it effectively defeats the efforts of governments to cool off the very housing fire that they stoked with cheap money, federal loan insurance and juicy buyer incentives. So on one side here’s poor little F, chopping back amortizations, clipping CMHC’s wings and jacking qualifiers for first-time buyers. And on the other side are millions of wrinklies, hopeless real estate addicts, forking over big cheques to their condo-munching special children. The little pecker hardly stands a chance.

Says CIBC economist Benny Tal: “The market would have been much weaker if we didn’t have this phenomenon. There’s no question about that. I’d say this generation is getting more help than any other generation did, but I’d say they need this help more than any generation, too.”

You bet they need it, thanks in part to their parents, now puffing the gasbag bigger.

By every measure, Canadian real estate is off the charts. The average detached house in Vancouver, for example, costs 13 times more than the average household earns. In Chicago (population 2.71 million) the median home price is just 3.9 times income. There are no stories there about 75% of young buyers making massive withdrawals at the Bank of Mom because, at $187,000, the average piece of real estate is within grasp of the average person.

Ironically, by perpetuating the bubble, by thwarting market forces and by shielding their offspring from economic reality, Boomers may be setting up their kids for a mama of a future correction. Without porky income gains and a job resurgence, the day of reckoning will arrive anyway. (Say, did you hear about Encana?)

Besides, how will those Boomer kids with their freebie downpayments move from condos to houses when the time comes? Where will the buyers be a decade from now when the wrinklies are bailing out, spending all their cash on thirsty undies?

Damn hippies.

219 comments ↓

#1 Penny Henny on 11.05.13 at 7:48 pm

Heard on the news that Robo Ford story is all that the US of A knows about Canerder Politics.
I say good. it makes them feel more at home here.
F
I
R
S
T

#2 Pounding sand in Peachland on 11.05.13 at 7:49 pm

So buying real estate in east Van five years ago was a bad investment?

It could be. — Garth

#3 Anonymous on 11.05.13 at 7:49 pm

Cash ready and waiting for the drop to hit! Circling for the kill!

#4 Victor V on 11.05.13 at 7:57 pm

Amid condo glut, Toronto developers luring buyers with fat discounts

http://www.theglobeandmail.com/report-on-business/economy/housing/amid-condo-glut-toronto-developers-luring-buyers-with-fat-discounts/article15268342/

#5 Snowboid on 11.05.13 at 8:03 pm

#3 Anonymous on 11.05.13 at 7:49 pm…

Same here, patient as ever, vultures good we are.

#6 Vlad the Inhaler on 11.05.13 at 8:06 pm

Let’s be polite and give Rob Ford the benefit of the doubt.
Perhaps Rob was in a social situation, a Tupperware Party for example, and his hosts started freebasing. What to do? Maybe Rob, not wanting to insult his hosts, just pretended to take a toot.

#7 broadway skytrain on 11.05.13 at 8:06 pm

damn hippies and girly men.

nothing wrong with the term ‘girly-man’ . little girls are wonderful but generally, men should not be like them.

the guys proudly wearing purses around town WTF??? – girly

spending your $ and time at the mall buying fashion instead of car stuff or sports stuff or tool stuff – girly

too worried about your nails,shoes,sweater,hair to ever touch anything under the hood of a vehicle? – super girly

paralyzed with fear and screaming/crying when faced with a threat (or a mouse) – girly

not good or bad, just the way it is. like an apple is red.

now if a female child had an interest in motorsports, chainsaws, armwrestling and beer – she would be a manly girl . not offensive either.

no don’t go being girly men and take offense to this post:)

#8 not 1st on 11.05.13 at 8:10 pm

Garth, its clear that F is not targeting the right demographic to pop the bubble. He is making rules tougher for young hornies, when its the boomers that need the hit. Roll back CPP to 70 yrs, decrease OAS, raise interest rates on HELOCs etc etc. Hit em hard.

#9 Nosty the Wallflower on 11.05.13 at 8:17 pm

#61 Smoking Man on 11.04.13 at 11:00 pm, #75 wykidajlo on 11.04.13 at 11:47 pm — “Maybe some ppl need dictators?” / “ET come get me now, I don’t belong here anymore. Teachers they won”, #120 Smoking Man on 11.05.13 at 1:26 pm — “Eat that Toronto Star, now what,” plus #166 recharts on 11.05.13 at 6:52 pm — “Always preoccupied with appearances.” — Looks can deceive. The m$m and Police forces are about as accurate as a bent arrow, and will say or print anything to cover their own hides, but certainly not to be trusted. I guess you’re right. However, us old geezers don’t need no politically correct stinkin’ education.

What I find amusing is that sheeple, incl. some on this blog, haven’t yet clued into govt’s. mantra, “Dazzle ’em with brilliance or baffle ’em with bullshit,” also known as Wag The Dog. Most govts. are using BS to baffle their sheeples, ‘coz it don’t take very much effort or intelligence which has been proven time and time again.

For example, Trust, Fallout, m$m BS, Canada I and Canada II.

#10 Jimmy on 11.05.13 at 8:24 pm

First from the west !

This stuff is so good I would be willing to pay for it.
Can’t believe Gartho doesn’t charge us.

#11 Cici on 11.05.13 at 8:25 pm

#7 Broadway Skytrain (and all other critics of “girly men”)

I can assure you that a vast majority of women prefer men who, if not girly, are at least sensitive, intelligent and not too rambo.

In short, don’t knock the girly/feminized dudes. Whether they are gay or straight, they are getting laid more than you!

#12 JimmyAAA on 11.05.13 at 8:27 pm

#8 not 1st on 11.05.13 at 8:10 pm
Garth, its clear that F is not targeting the right demographic to pop the bubble. He is making rules tougher for young hornies, when its the boomers that need the hit. Roll back CPP to 70 yrs, decrease OAS, raise interest rates on HELOCs etc etc. Hit em hard.

====================================
If F was PM, something like that might happen. But our noted economist, Fearless Leader Harper, would never alienate his base. Which is primarily 50-80 years old who vote. Look at the outcry when income trusts got (rightly) decimated. Harper will NEVER allow something like that happen again. Even if it makes sense. F may be finance minister, but he still answers to the political animal in the PMs office.

#13 T.O. Bubble Boy on 11.05.13 at 8:38 pm

When I saw that Star article (buried deep beneath the Rob Ford crack/criminal coverage), I had the exact same thoughts: Boomers “doubling down” on housing, betting the financial futures of their offspring in the process.

That also explains why half of the “buyers” at Midtown/North Toronto open houses are accompanied by their parents!

#14 wykidajlo on 11.05.13 at 8:41 pm

love the chick magnet comment lol

#15 Smoking Man on 11.05.13 at 8:48 pm

#11 Cici on 11.05.13 at 8:25 pm#7
Broadway Skytrain (and all other critics of “girly men”)I can assure you that a vast majority of women prefer men who, if not girly, are at least sensitive, intelligent and not too rambo.In short, don’t knock the girly/feminized dudes. Whether they are gay or straight, they are getting laid more than you!
………………

I was in Cambodia in the 90s and I was no girly man, visiting anchor whut with my wife and my buddy rema,

Our guides vanished and 4 dudes showed up, two eyeing my wife,, two sizing us up for our wallets,

Rema and I gave each other the look, within 10 seconds 4 knocked out dudes on the floor out cold, welcome to Canadian hockey players.

CICI enjoy a trip to the jungle with your girly man.

I’m sure he can sweet talk his way out of it.

#16 Habitt on 11.05.13 at 8:51 pm

To blame any group for an economic situation surely is unfair. EVERYONE that could buy has participated. The government especially the current one has played a significant role in the run up in housing prices. Parents teach their young in part by their experiences and what has worked for them. No need to belittle or ridicule that. With all the good advice this blog has given over the years it is difficult still for the average joe making less than 40K a year to act on. With respect to comments like #8 not first I suspect that changes being proposed in that post would surely need to be reviewed when it’s their time to retire. LOL As for what we enjoy in this country it’s the people that came before us that have allowed us to run off at the mouth and enjoy what this great country is. As we approach remembrance day think about that. Actions that few of us today would likely participate in voluntarily. They are the why we are so lucky, not the bay street boys. Bad things happen when good people do nothing. Thanks Garth for what you do.

#17 mac on 11.05.13 at 8:52 pm

Turner you’re like trying to hold water in a hand. You say East Van five years ago COULD BE a bad investment? What happened to your previous posts stating in-demand areas going down only by 5-10 points?

And if they have wrinklies here, they have them in China, Russia, Brazil and Iran too. Global money buys real estate in certain cities. At least the English are honest about it and keep data on London and discuss it in their press. W1 is being sold to the uberrich. This is an economic issue, not a racist one. Sheesh! Get off the horse.

#18 TurnerNation on 11.05.13 at 8:56 pm

Woodbridge blog dogs are probably yelling
“What’chu say about my Mom??”

#19 Spiltbongwater on 11.05.13 at 8:56 pm

In short, don’t knock the girly/feminized dudes. Whether they are gay or straight, they are getting laid more than you!
#11 Cici on 11.05.13 at 8:25 pm

I have dirty finger nails and have just restocked my supply of condoms. I wear a yellow shirt with yellow pants and black dress shoes with white socks. Your argument is invalid.

#20 Tripp on 11.05.13 at 9:00 pm

“That can happen when mortgage rates rise, or job growth stalls, or the economy sputters or when the next generation of buyers can’t get in. ”

All of the above have already arrived in various degrees. I strongly believe the 2014 RE spring recovery will never happen.

#21 Seth on 11.05.13 at 9:01 pm

SMOKING MAN

A simple request to please transfer your ego elsewhere. Your useless rants about nothing that matters have grown more than tiresome. I have relented thus far, but your endless stream of comments last night were a tipping point. I was disappointed that so many engaged in your antics.

I’ll give you some credit that you’re consistently able to derail thoughtful, productive and engaging dialogue from both sides of the fence on a nightly basis.

I suspect however that the majority of readers find your comments a continuous stain on an otherwise fantastic blog and comments section.

#22 CrowdedElevatorfartz on 11.05.13 at 9:02 pm

Im sure the Boomer’s brats (ie Gen X, Gen Y) will find some way to blame their parents for giving them a “gift” or an interest free loan…..
They always do.

#23 just some guy on 11.05.13 at 9:15 pm

Free market? With artificial interest rates, government secured loans and massive central bank money printing. The housing market is an example of a government controled market not a free one.

#24 Rexx Rock on 11.05.13 at 9:16 pm

Middle class don’t buy houses in Vancouver only the wealthy buy them.Just shows how much Canadians are better of than Americans because our average house prices are so much higher than the USA.

#25 CrowdedElevatorfartz on 11.05.13 at 9:17 pm

Hmmmm
In 1882 Robert Ford shot Jessie James in the back to become rich and famous…..
130+ years later Rob Ford shoots himself in the foot WHILE he’s rich and famous……

#26 CrowdedElevatorfartz on 11.05.13 at 9:19 pm

@#19 Spiltbongwater

Ick !
Too much info….

#27 CrowdedElevatorfartz on 11.05.13 at 9:22 pm

@#21 Seth
Dude ! Chill.
The “smokester’ is amusing in a dsylexicly schizophrenic sorta way……
Far more than your last few movies I might add Mr Rogen……

#28 Tripp on 11.05.13 at 9:33 pm

#7 broadway skytrain on 11.05.13 at 8:06 pm

There is are many shades of grey between Cave Man and Nancy. One can fix a car and take a shower after; wine is classier than beer, does not grow a lifebelt and does not bloat, with consequences upon others. And those “purses” are called borsellino or borsetta and are well known and worn in Europe, by real men with clean nails.

You need to start travelling.

#29 TnT on 11.05.13 at 9:36 pm

This is just another reason why it is different here.

Rates, Immigration, Marketing, HGTV, Horny House Humpers, Real Estate Cartels, Government PLUS Boomers.

Houston we have a Soft Landing… Roger That….

#30 Rob Ford's Surveillance Detail on 11.05.13 at 9:38 pm

In B.C. real estate is treading water or sinking in every area outside the offshore/immigrant interest zone. And no, they’re not all Chinese. There are lots of wrinkly boomers in Vernon, Parksville, Sechelt, et cetera — but RE is sinking in all of those places. In the Lower Mainland it’s still churning, driven by 1. offshore buyers who are not infrequently laundering money 2. people from other countries who want a safe “bolthole” in Vancouver if things go bad elsewhere 3. recent immigrants who are not averse to buying a house with 3 or 4 incomes from an extended family (so 13 times earnings actually needs to be divided by 3 or 4, not the usual two incomes) 4. investors who buy and then rent to the not inconsiderable number of “temporary workers” (the scandal of the decade; they’re not working in the oil sands, they’re at Tim Horton’s and low-rent convenience stores) and 5. the Canadians from the Vancouver area who are doing all they can to stay in the area where they grew up. Couple this with land restrictions and developer-funded city councils, and voila. But anybody who sees anything wrong with this situation is a raaaaacist.

#31 Bob Loblaw on 11.05.13 at 9:40 pm

Thank you Seth – well said.
Garth …. kindly hire an editor and delete/block/remove the stupids. Your blog is too interesting and valuable for readers to have to put up with the rants of self indulgent idiots.

#32 Ralph Cramdown on 11.05.13 at 9:43 pm

#17 mac — “You say East Van five years ago COULD BE a bad investment? “

If you bought and it went way up and you sold, obviously you benefited. If you bought and it went way up and now it’s yielding 2% and you haven’t sold yet. it’s too soon to tell whether it turns out well for you.

I’ve got investments that are paying me enough that I care very little what I can sell them for as long as they can keep paying. I trust that as long as they keep paying ‘x’, there will always be a demand at a decent multiple of x. If the investment is paying 2% in an environment where inflation is near that and government bonds also pay near that, there’s no faith.

#33 Julia on 11.05.13 at 9:44 pm

#11 Cici on 11.05.13 at 8:25 pm
Right on Cici!
Who am I taking with me to the jungle? Sting, Johnny Depp, Prince, Bowie… Or a drunk Smoking Man. Hmmmm, let me think about that.

#34 TnT on 11.05.13 at 9:45 pm

#21 Seth
#26 CrowdedElevatorfartz

Seth = Correct

CEF = SM cling on

#35 Ralph Cramdown on 11.05.13 at 9:50 pm

#16 Habitt — “To blame any group for an economic situation surely is unfair. EVERYONE that could buy has participated.”

Not me. Maybe say “practically everyone.”

“Parents teach their young in part by their experiences and what has worked for them.”

True. Just the other day I was teaching my 5 year old what writing a covered call means. I’ll give it another few years before we get into the greeks.

#36 Tiger on 11.05.13 at 9:50 pm

#2 only if you haven’t sold buy now! take the high returns. Oh yeah I would never buy now cause I have a calculator and a brain! I know west van re sucks <
Garth helps aswell:)

#37 coastal on 11.05.13 at 9:51 pm

Meanwhile in Victoria, micro condos of 250 sq. ft. sell for $110,000 and are 80% sold as the developers fall on the floor laughing as the suckers who camped out for two nights just got fleeced. Wait til they break ground and the toxic waste from a century ago gets tagged onto the so called “cheap” price. Not to mention most have no parking. All the single people bragging on TV who got sucked in obviously plan to be single for a very long time. Don’t they call these guys “losers” ?

#38 Marginal on 11.05.13 at 9:57 pm

#21 Seth on 11.05.13 at 9:01 pm
Bravo, well said. SM posts are an unfortunate distraction; as long as they exist, some of us will continue to engage. To remain silent, is to condone.

#39 eviee1973 on 11.05.13 at 9:59 pm

The freeloading of home down payments from parents is not new. 11-12 years ago I knew two people who were given approximately $40,000 gifts to purchase $240,000 homes in Barrie. I am sure houses are worth double today.

The act is not new. The volume is. — Garth

#40 Indigoblue on 11.05.13 at 10:00 pm

Also in The Star today…

Rogers layoffs
Encana layoffs
GTA food bank users on the rise

Nothing to see here folks. But if you could turn your attention to those granite counters?

#41 Paul on 11.05.13 at 10:04 pm

#11 Cici on 11.05.13 at 8:25 pm
#7 Broadway Skytrain (and all other critics of “girly men”)

I can assure you that a vast majority of women prefer men who, if not girly, are at least sensitive, intelligent and not too rambo.

In short, don’t knock the girly/feminized dudes. Whether they are gay or straight, they are getting laid more than you!

#42 Paul on 11.05.13 at 10:07 pm

#11 Cici on 11.05.13 at 8:25 pm
#7 Broadway Skytrain (and all other critics of “girly men”)

I can assure you that a vast majority of women prefer men who, if not girly, are at least sensitive, intelligent and not too rambo.

In short, don’t knock the girly/feminized dudes. Whether they are gay or straight, they are getting laid more than you!

Sounds like you would know

#43 Mr. Reality on 11.05.13 at 10:07 pm

Sounds like a ponzi, doesn’t it?

Mr R.

#44 Silver on 11.05.13 at 10:08 pm

Garth…

Careful please
I’m a dam hippie and work 14-16 hrs a day.
I put 40% down free cash , 15 year, Bi weekly payments…
No CMHC insurance…
could have handled 8% interest…
The dam socialists with their 0 down 40’s killed me… and cmhc million dollar backing…
that drove the market through the roof,
… and for me the Business Property Tax increases on my Business property.
That logically brought me to sell and close my business in Vancouver.
$4000 to $27000 in 5 years, and climbing at 23-31% a year. Next door $16000 to $89000…
And a third of my Manufacturing business block sold as well, same reason.
Replaced by internet sales monkeys.
Good jobs gone from Vancouver… as well as real cash.
its the socialist middle that is freeloading…

Now mind you the profit on the property sale will allow me to be much more solvent, and leave me with a very large clear line of credit… and a paid off home (Court ordered sale, steeply discounted. over 35%).
We learn..

Going fishing for Coho tomorrow morning… down the street… hee hee hee

OK… maybe the socialists are useful…

Still like you Garth

Silver

#45 Not an oil guy on 11.05.13 at 10:09 pm

You mention Encana, but what about Suncor and the Fort Hills project, they gave it the go-ahead…More “irrational exhuberance” to come from Canadian housing???
http://ca.finance.yahoo.com/news/suncor-profit-record-output-higher-crude-price-023640665–finance.html

#46 Shawn on 11.05.13 at 10:09 pm

BOOMERS, LET’S LOWER OUR PRICES

Okay then as a 1960 vintage Boomer I feel guilty for our Boomer sins. I’m sure most boomers do.

So okay, starting now let’s all be willing to lower our house prices by 20% as a good start. That should get the ball rolling downhill.

Now, I’d go first except I am just not planning to sell right now.

So, um, you (yes you, you random boomer) go first. We’ll all be right behind you.

Now I will do my part as well. If I see a boomer house for sale at 20% off the market value, I just might buy it.

#47 Smoking Man on 11.05.13 at 10:14 pm

#21 Seth on 11.05.13 at 9:01 pm
SMOKING MAN

A simple request to please transfer your ego elsewhere. Your useless rants about nothing that matters have grown more than tiresome. I have relented thus far, but your endless stream of comments last night were a tipping point. I was disappointed that so many engaged in your antics.

I’ll give you some credit that you’re consistently able to derail thoughtful, productive and engaging dialogue from both sides of the fence on a nightly basis.

I suspect however that the majority of readers find your comments a continuous stain on an otherwise fantastic blog and comments section.
……………………………………………

Seth don’t know how long you have been here, but long term blog dogs will testify under oath that when it counts I get serious and make amazing calls regarding the markets and major trend reversals.

I only do it when its big and I’m 99% confident, my fear some armature gambler listens to me and gets crushed.

Almost every one of my up to bats have been a home runs.

Between those days I have a bit of fun on my experimental creative writing project.

I have like 25 fans, enough for me.

Seriously, take my ego elsewhere. Not a chance.

It’s like a tumor that grows and grows.

Skip my posts.

#48 Andrew Woburn on 11.05.13 at 10:15 pm

Who is the fool, the Smoking Man or the ones who bother to read his posts and then complain? Let his many fans enjoy his unique style and just skip his posts.

#49 Tiger on 11.05.13 at 10:22 pm

Ya know when I was 14 my pop said what you wanna be wanna have my Owen logging co , you will never able do that , in my mind I said FU got my first truck at 16.3 already had a power saw since 14 cutting firewood my. dad would del it so off I went no stone unturned turned pounded fire wood king then graduate skidded falling timber $$$ thinking how will I make I all the comp think you just have try to be the best logging with skidded doing good age 22 contract logging big time bought properties timber and personal got into arboriculture tree service not res only gov and professionals my philosophy to complete the project to higher than the highest standards of this industry and that when project complete they will only only ever think of me when it comes to trees and arboriculture it’s like creating coca cola!! Oh yeah sold a big one In this year re gotta go my India bride needs me !

#50 TRON on 11.05.13 at 10:29 pm

Garth I don’t see mom giving the kid(s) money to buy real estate as a bad thing but I suspect mom may be missing a big opportunity to secure her future.

Let’s face it, when you’re old and in diapers do you really think you’ll care how much money you’ll have? I think you’ll be more concerned with what soups for dinner and how was the BM today. Your biggest concern will be being dropped off at the home with the kids driving off.

So here’s how you make that ‘loan’ pay. Kid gets the money and you get to live with them when you’re old and leaking. Otherwise the kid has to sell the real estate and pay back the loan with the money going to your cat.

#51 Cash is king on 11.05.13 at 10:29 pm

Chicago with 3.9 times average income? Windsor could be a very similar statistical example….only with higher property taxes.

#52 Tiger on 11.05.13 at 10:29 pm

Paul on 41 are you a stalker or vouyer

#53 Cici on 11.05.13 at 10:30 pm

#19 Spiltbongwater,

Yeah, but your paying for the sex, so it’s not a fair argument.

#54 Inglorious Investor on 11.05.13 at 10:31 pm

Headline: “Encana Corp to cut 20% of workforce, close office and slash dividend”

And the stock was up over 3% today. Maybe Blackberry should make a natural gas powered smartphone.

#55 Cici on 11.05.13 at 10:38 pm

#15 Smoking Man,

Silly Smoking Man, that is so old school.

In our day and age, women still need men to love, adore, cherish and care for them,

But we need firearms and pepper spray for protection. Being proactive is where it’s at for the modern woman.

#56 Bob Rice on 11.05.13 at 10:39 pm

It is a well known fact that most people who receive financial help (freebies) from family will be less successful financially in the long run…

What’s that old Chinese proverb?

There’s a generation that builds wealth, a generation that maintains it, and a generation that squanders it…

Anyhow, I suspect we will have several more years of home price increases… especially in the GTA… the rest of you are doing what the Italians in this country have been doing for years… buying homes for their kids!

#57 Marginal on 11.05.13 at 10:39 pm

#35 Ralph Cramdown on 11.05.13 at 9:50 pm

Some lessons are learned early; it all starts with delayed gratification. What I find interesting is the scary nature/nurture thought that some of this tendency to be a grasshopper may be hard wired!

http://money.msn.com/family-money/many-money-habits-are-set-by-age-7-1

FWIW…keep up the great posts.

#58 Fleabitten Monkeya on 11.05.13 at 10:39 pm

Can this really sustain and keep a market moving up? Garth, what stats are available on the volume you reference in response to eviee1973’s post#39? There has certainly been commentary on how many new mortgage originations are with the minimum 5%. Do we have the same or similar figs on those receiving funding from B of M? Or is this more anecdotal stuff?

#59 Tiger on 11.05.13 at 10:46 pm

Not much from out west here maybe the time change ! My banker called me today said haven’t talked in months my thoughts won’t be talking to u for months too come man my investments are doing just fine! I think she wants a date she says she knows more about me than I duh

#60 Inglorious Investor on 11.05.13 at 10:46 pm

“Says CIBC economist Benny Tal: “The market would have been much weaker if we didn’t have this phenomenon. There’s no question about that.”

Why is it that the reason for “this” or “that” is always so obvious AFTER the fact for these talking heads? As if they knew it all along. Did Benny predict this would happen? I heard about this greatest of intergenerational wealth transfers years ago and how it could impact the economy. Well, unless the economy enters another paradigm shift of wealth creation, this could be the last great hurray inheritance for a very long time. What then for housing?

Speaking of another last great hurrah––the American energy boom:

The US had been holding back on tapping into their massive reserves of energy for years and years. Now that the dollar is under threat as the world’s reserve currency, and also that US military might may be waning due to lack of real money, they open the taps to their oil and gas reserves. This will strengthen the dollar (relatively speaking) and perhaps give the US another lease on life as the world’s hegemon. But the massive economic lead they enjoyed after WW2 is gone. Now the field has been largely levelled. So when growth in their new energy supplies runs thin, what then? Enjoy it while it lasts because it won’t last very long.

#61 Gg on 11.05.13 at 10:53 pm

Interest rates – will raise because of the on going QE.

Encana? Late to the party. Gassy companies have been cutting back for a year. U just get the news? Lol.

#62 jim on 11.05.13 at 10:55 pm

It is obvious to anyone with half a brain that housing in Canada is overvalued. The Economist (among others) is calling this correctly.

While others despair at the stickiness of housing prices in Canada on the way down, I think it is a great thing. More and more people are piling on debt to purchase overvalued assets. Personal debt levels are climbing, and some provinces are worse than Greece.

This is all pointing to a very bad time for the Canadian economy. When the tide shifts, irrational exhuberance runs its course, you are going to see a lot of people wondering where the jobs went, and why they can’t pay for their decaying condos anymore. A long slow slide in the opposite direction.

And when things get really bad, to the point that people curse realtors on the street, that is the time for the smart money to swoop in and buy. I only feel sorry for the people not participating in this orgy of stupidity.

#63 WiseGuy on 11.05.13 at 10:58 pm

Listening to the radio station EDGE 102.1 today here in Toronto, yes I still think I’m 18…..anyways, I hear an advertisement that goes something like this, “Sick of renting….you can own your own condo for as little as $3500 down and $1000 a month, contact west end realtor Nick Pavlov.

The name sounded familiar, then I remembered who he was, for student council president of my High School in 1988.

I went to his website, http://nickpavlov.com, where he has a very cheesy video, which ends with him telling you to contact him, so he can take you out to lunch!

So for the readers here, if you want a free lunch, definitely contact him!

#64 Inglorious Investor on 11.05.13 at 10:59 pm

#25 CrowdedElevatorfartz on 11.05.13 at 9:17 pm

“In 1882 Robert Ford shot Jessie James in the back to become rich and famous…..
130+ years later Rob Ford shoots himself in the foot WHILE he’s rich and famous……”

In 1934, the famous crime duo, Bonnie Parker and Clyde Barrow were shot and killed in a robbed Ford.

In 1963, the rich and famous John F. Kennedy was shot and killed in a ROBust Ford.

#65 Rexx Rock on 11.05.13 at 11:01 pm

A great investment in Victoria on the micro condo.They’ll rent for $850,low mortgage rate,and huge supply of renters.Can’t find a decent bachelor suite for under $800.A no brainer with say $25,000 down.It pays for it self,what more do you want,Thats why they sold so well.A no brainer for sure.Everyone loves to live in Victoria.

#66 Nemesis on 11.05.13 at 11:02 pm

@Homme de Fumer/#15

Bravo Zulu! [gOOgle it]

@RFSD/#30

Outstanding! Were we on the same Detail?

http://youtu.be/X1pdy4MFlq4

Sorry about that, wrong decade… must be the Bordeaux. MyBad.

@Ralph/#45

Beware of GreekSailors bearing gifts…

[NoteToSaltyDogz: It’s rather embarassing – but if ElGordo… I mean, if ElFordo can do it… so can I! I once lived in YaleTown. OMG, but I feel better now. In my own defense I am compelled to mention that I scrupulously resisted all urges to mount a Vespa. Or the DalmatianBoyz, for that matter. It’s a GirlyMan thang. Fortunately, I lived to TellTheTale. ‘NuffSaid.]

#67 Smoking Man on 11.05.13 at 11:02 pm

The star will have a cartoon tomorrow liar liar paints on fire.

So we don’t like Liars, what a joke. I guess if they are Fat we hate them more.

Show me a person that says the don’t lie I will show you a liar.

Why is it important not to get caught lying?

Simple: You need control someone’s belief system, once you have them believing you , you own them. They are your property.

Every person, every situation, every negotiation you are in, you are up against a liar, make no mistake grass hoppers, to gain advantage be a better liar.

The best liar always wins. It such an import skill to master, yet to make it easy for the machine to own your soul, your labor, your teacher beat it into your head.

Lying is bad.

Only idiots believe that.

#68 Inglorious Investor on 11.05.13 at 11:20 pm

Re: Rob Ford

It’s pretty simple. People who are net (tax) contributors want him to stay (just get off the crack thing and get drunk at home instead). People who are net takers of our tax dollars want him to go. Then there are the neo-communists in city council who absolutely loathe the idea of fiscal responsibility and don’t want their bottomless pig trough taken away. Oh, they really hate Rob Ford.

Rob Ford is like the US dollar: fundamentally flawed, but there is no real alternative at the moment.

People who don’t live in Toronto, should shut up bashing Torontonians, and worry about their own damn cities. And another thing, anyone who has ever taken illegal drugs or gotten drunk in public should also shut up. Glass houses and all that…

Rob Ford smoked crack. As far as I know, no one got hurt. The provincial liberals smoked the tax payers (mostly Torontonians) out of over a billion dollars. Where are all the indignant reporters camping out on Kathleen Wynne’s lawn? They are the real menace to our society.

#69 Marginal on 11.05.13 at 11:21 pm

#67 Smoking Man on 11.05.13 at 11:02 pm

“Why is it important not to get caught lying?

Simple: You need control someone’s belief system, once you have them believing you , you own them. They are your property.”

—————————————————————-

Wow, you’ve perfectly described the power that the Ford brothers have over Ford Nation.

It may not work for the rest of us, but great job for describing the underlying dynamic.

#70 Gladiator on 11.05.13 at 11:21 pm

@67 Smoking Man:
I’m one of your fans, Smokie. Great post on lying, a very necessary skill. Let the honest ones complain about your post and throw rocks at you, but one cannot deny that lying is all around us and those who use it wisely drive better cars and live in better houses in better parts of the town.
Cheers!

#71 Tiger on 11.05.13 at 11:23 pm

67 smoking man 67 ex said it so many times I don’t lie!
I actually believed her!
Yup love is blind!
Yup what do you expect ?

#72 Freedom First on 11.05.13 at 11:24 pm

As a self-made man on my own since 17 through fate, and no ones fault, I have no idea what it is like to get a penny from anyone that I did not earn. I am extremely grateful for this, as it made me the man I am today. To take a dime from Mommy or Daddy, whether for a wedding, school, car, or to buy a house, well, the idea is abhorrent to me, as I am a man. Also, as a long time reader/poster of Garth’s insightful and entertainingly witty and also free blog, I really appreciate the fact that Garth makes the decision on who is banned from his blog. I too, once thought Smoking Man should go away, however, hang in there girls, and girly men, Smoking Man will grow on you. He is a self made character, and we all learn from each other here. To the Smoking Man dissenters, we may even come to enjoy your posts someday. If you’re lucky. Freedom First.

#73 JayBee on 11.05.13 at 11:26 pm

Sometimes it’s okay to be a bit of an idiot smoking man

I might be a girly man and a dummy… but, then again, I only enjoy the company of gender bending dummies who who don’t let centuries old socializing machines define their gender roles, principles, and values.

Time to get free.

#74 Realtor # 1 on 11.05.13 at 11:29 pm

Now we are just getting desperate with the reasons.

Add to the list -baby boomers giving money. What percentage of purchasers are receiving hundreds of thousands of dollars. Because 50K is nothing, helps with the closing cost.
I have never dealt with any of these people. Or are these people chinese and their parents are buying their home for them.

Nonetheless, prices are high and interest rates are low.

#75 John on 11.05.13 at 11:29 pm

Can you think loud of any other reasons that support high prices for real estate?

#76 Tiger on 11.05.13 at 11:32 pm

Lying to me is you don’t have the ability to preform the task at hand and you really just want to screw that person persons corp etc wow might well a crack dealer wow that’s not how I do business it is different in ? Oh yeah rob fraud lives here!

#77 Scibidubadebumbado on 11.05.13 at 11:45 pm

The cool factor of Toronto just went up 1000%!
They’ve got the worlds first crack smoking Mayor!

Sadly the hypocrites who never lie , drink or have never inhaled something purchased in their off hours with consenting adults, are putting a damper on that.

Look at the man, He is a poster boy for addictive personality. He has food problems and alcohol and drug problems. Cut him some slack!
Many of these people are simply self medicating so they can feel like you an I do naturally.
If people would look into and try to understand the complexity of addictions there would be a chorus of people asking him to get help, Not “off with his head”.

“Let he who is without sin cast the first stone.”

#78 Crackservative on 11.05.13 at 11:46 pm

I’m a fiscally irresponsible crackservative. Sure we are better known as conservatives but when you give out $600,000,000,000.00 in sub-prime / liar loans via CHMV you would think conservatives are on crack. Ha ha yes I know that one conservative has come out admitted to smoking crack and we don’t understand why he would tell the truth? The conservative way is to liar like a crack head.

#79 Tiger on 11.05.13 at 11:48 pm

Oh please I’m not trashing in any way just I don’t business in that style , but I know the the norm out there eat or be eaten their still a lot of savages out there! Behind the scenes you don’t even goes on ! If you invent coca cola yur one top but don’t let ur guard down or u will have a black burry moment same as in re to me it’s crystal clear gotta go corporate thing India wife wtf nice

#80 Crackservative or conservative? on 11.05.13 at 11:49 pm

Does harper loaning out $600 billion in sub-prime / liar loans via chmc make him more of a crackservative or a conservative?

#81 Crackservative or conservative? on 11.05.13 at 11:54 pm

Sure we crackservative or conservative whichever you prefer make decisions that make you think WOW are they on Crack? The answer is sometimes yes. When it comes to CHMC the answer is yes. Sometimes we crack heads have no idea what we are doing. I want to change the conservative party to the crackservatives what do you other crack head supporters think?

#82 Marginal on 11.05.13 at 11:55 pm

#28 Tripp on 11.05.13 at 9:33 pm

…..très intelligent

#83 Okotokian on 11.06.13 at 12:00 am

DELETED

#84 R on 11.06.13 at 12:02 am

How do people get qualify for this $850k mortgage or 13 times their income

At what price point banks will say no

#85 Yuus bin Haad on 11.06.13 at 12:05 am

After the “TLP” references back in the spring, I figured G had his knuckles rapped, … but here it is again!

No way Garth worries about a little knuckle-rap.

(I still say it’s better in French.)

#86 HAWK on 11.06.13 at 12:07 am

Our neighbor’s kids have it figured out better………

http://www.zerohedge.com/news/2013-11-05/trulia-rings-panic-button-young-adults-refuse-move-out-parents-basements-get-jobs

#87 Tiger on 11.06.13 at 12:10 am

63 wise guy no free Lunch if I have to listen to this real bastard for 1 hour min gas to and from time wasted in traffic 4hr min that’s 400.00 wtf for a lunch coupons inc lets say 24.00 do the math or go back to what ever I think u in the 95% club wow

#88 broadway skytrain on 11.06.13 at 12:12 am

And those “purses” are called borsellino or borsetta and are well known and worn in Europe, by real men with clean nails.

You need to start travelling.
—————————————–
been around the globe more than once , thx.

and just because in some countries men hold hands when walking around, or cry at the drop of a hat, or carry purses with fancy names does not make it less girly.
do you want your man shrieking alongside you when there is a spider in the tub, or do you want him to calmly remove it?
strong and manly is NOT rambo and stupid.

#89 DON on 11.06.13 at 12:21 am

All this girly man, man’s man talk is utter bullshit!

How about an intelligent man who is effective in sensitive and non sensitive situations. A hybrid street smart man who is adaptable to achieve results in any given situation Gay or Not. A useful man, not some neanderthal or some pansie. Same goes for a woman. Anything else wouldn’t survive in its natural state.

And all I can say some of the boomers and their offspring is Like Parent Like Child. Its hard to break the strain when bad behavior is constantly being reinforced.

Years ago just admitting use of CRACK was enough to make one resign, right away or for that matter stealing money from Canadians in the form of fraudulent expenses. Now they have to be removed kicking and screaming. If we had real men and women in charge this would not be allowed to happen. But the boomers have their TVs etc less they remember what their parents fought for.

#90 Tiger on 11.06.13 at 12:39 am

Don d west and western man are u the same person ,persons or just bros gay I all ready said gay just wondering wow two wests from the west you two are f$$ked

#91 Smoking Hot on 11.06.13 at 12:50 am

I think one could have a Ford fad going selling magnets with his face saying Chick Magnet

#92 TheCatFoodLady on 11.06.13 at 12:55 am

So… helicopter parents are morphing into HELOCopter parents?

There are some obvious problems with this sort of wealth transfer; let’s look at issues for the parents.

We’re increasingly told by many sources that boomers have too much of their assets tied up in home equity. We’re also told too many of us are very poorly positioned for retirement. To give that money to their kids – parents may have sold off invested assets. Now, not only have they given away a significant part of their own money, they’ve given away the future income from that money – if they had it in cash or accessible from elsewhere.

They may have sold their own homes at the top of the market; good for them if they did but they’re approaching the time when they’ll need that money for some level of elder care or retirement home.

Worse – they may have borrowed that money from their own HELOC. Bad move for so many reasons.

I have no idea about the tax consequences of such a gift for either the parents or kids receiving the money.

As to the kids – unless they worked, sacrificed & somehow EARNED at least part of the down payment & parents simply topped it off or matched what the kids saved, they’re not going to have an appreciation for the huge decision they’ve made.

If they had to be gifted a down payment, they’re short for moving costs, land transfer tax & the dozens of other costs associated with home buying. Do they have money aside for repairs, etc?

#93 HAM MAN on 11.06.13 at 12:57 am

I’m torn on HAM.

On one hand, I agree that we can’t blame all of our problems on HAM. Most of the people I know in my personal life are not HAM and they are stretching themselves too far to purchase overvalued RE in Vancouver.

On the other hand, I’m living in a new high-end building (as a renter,) and I can assure you that HAM is real and that the impact is not negligible.

To be clear, just because someone has Asian ethnicity and they are buying a place in Vancouver, does not mean it’s HAM. There are a lot of Asian people in this city who probably have deeper Canadian roots than I do and I’m a typical white guy. There are also a lot of working class poor Asian people. They do the 9-5 thing, riding the skytrain, working in retail, etc.

But all you need to do is ride the elevator in my building or walk through the parking garage and you will see that HAM is alive and well and that it must be doing something to help hold prices higher and longer than would occur otherwise.

Anyone who blames all of our problems on HAM is a fool.
Anyone who tries to say that HAM has no impact has never actually set foot in some of the new developments in the lower mainland.

#94 P.Bocanegra on 11.06.13 at 1:25 am

“Lying is bad.

Only idiots believe that.”

The deranged “Smoking Man” sums up his view of life very succinctly. There are many people in the world like this and they are the reason why the world is in the state it is.

#95 Hollywood on 11.06.13 at 1:29 am

Good article. I have to wonder do that many parents help their kids with those type of huge down payments. I would guess it is a “small” percentage. It is well known that boomer parents have accumulated a lot of wealth through land/real estate or had access to good high paying job markets during their years but not all would fit in that category.

#96 Son of Ponzi on 11.06.13 at 1:44 am

Chick magnet.
I thought it was my convertible Beemer.
Damn car salesman!

#97 Son of Ponzi on 11.06.13 at 1:46 am

I like the drunk Smoking Man better.
Makes more sense.

#98 Pounding sand in Peachland on 11.06.13 at 1:47 am

#36 sold buy now! Not getting your meaning. Garth say 32% could be a bad investment.

#99 mac on 11.06.13 at 2:13 am

To Rob Ford’s Surveillance Detail :

Agree. Agree. Agree. You got it exactly right.

#100 Tony on 11.06.13 at 2:50 am

It’s always bad news when they slash an about average dividend payout 65 percent and the share price actually goes up not down. This can only mean the company is in bad shape or big trouble. There are no other possibilities. We’ll see if the share price plunges today or not as all good companys’ share value would plunge if the dividend was cut on that magnitude.

#101 Carpe Diem on 11.06.13 at 3:01 am

#21 Seth

Seth, do not start your debut on trying to bash SM. He’s a dog. You on the other man seem like a boring poster with nothing good to say other than commenting on the S-Man.

He sometime very good insights and I look forward to his comments be it for entrainment and knowledge at times.

He ain’t no girly-man and if you are, cheer up and stop being anal of everything some most-of-the-time drunk dude says.

#102 Tony on 11.06.13 at 3:01 am

Re: #54 Inglorious Investor on 11.05.13 at 10:31 pm

Either the share value will drop at least 2 dollars a share today or the company is in big trouble that the public doesn’t know about.

#103 Carpe Diem on 11.06.13 at 3:04 am

So I have a few questions ….

Is the Canadian economy looking up or down for the next few years.

How about the States?

How about Europe?

What do people think?

#104 Buy? Curious? on 11.06.13 at 3:09 am

Ah yes, the ol’ Haves vs Have Nots arguement, the money shot of generational class warfare. I love it! The people complaining are the ones who can’t afford a house, can’t secure financing and have no family to help them out. They blame the government, “yellow dudes from Guangdong with suitcases full of money” (Garth, really? C’mon) or some other mysterious reason they can’t get on the property ladder. I’ll tell you why, and gawddamnit, it’s along the lines of Smoking Man’s recent rant. It because Baby Boomer raised horrible kids. Kids brought up to be special, unique, dreamers who could do “anything they want if they just believe”. Those people wasted their time going to university to get B.A’s in Art History and now dress store shop windows. They have no sense of urgency or fear of being eaten alive by some hardworking guy from Jamaica. Just admit you’re soft and get me a skimmed milf latte. (Oops, Freudian slip)

You’ve got only yourself to blame for the state your in. Don’t hate the players, hate the game!

http://www.youtube.com/watch?v=Wp3x6l5dZp8

#105 ValleyBoy on 11.06.13 at 5:48 am

When you can make $200 000 in Fort mac for only working half the year if you land the right gig with little education, Housing seems cheap. Regardless of whether your parents give you money or not. And when you have Anyone unable to pay there bills, well they can just fly to Fort Mac from anywhere in Canada to catch up, and then get caught up in it and buy a bigger house. So as long as we have the Americans needing our oil the housing market may be fine.

#106 Deb on 11.06.13 at 6:18 am

(Say, did you hear about Encana?)
Encana’s haircut, er, crewcut, shaves 20% of its workforce and 65% of its dividend.
This one raised my eyebrows. Others say they could see it coming for some time. The job cuts were expected, but reducing the dividend by two-thirds in order to raise cash was unexpected.

#107 Steve French on 11.06.13 at 6:29 am

Somehow this place wouldn’t be the same without The Man who Smokes….

#108 Smoking Man on 11.06.13 at 7:48 am

#73 JayBee on 11.05.13 at 11:26 pm
Sometimes it’s okay to be a bit of an idiot smoking manI might be a girly man and a dummy… but, then again, I only enjoy the company of gender bending dummies who who don’t let centuries old socializing machines define their gender roles, principles, and values.Time to get free

………….

Tell me you are joking..
Centuries old socializing machines

What and your not in a machine now. Not getting socialized, ha.

Prior to the invention of Girly Man. About 30 years ago, A neanderthal man could earn enough loot to have his wife pop out 4 kids, buy a home, car and cottage while wife stayed home enjoyed the kids and cocktails with other moms.

The machine on a drunken Sunday after noon decided it wanted more out if it’s slaves.

So it made it fashionable for the mother to come out into the work force hence getting 2 slaves for the price of one.

Now why did the machine make girly men fashionable.?

Simple, Girly Man will never steel the customer list and set shop up across the street.

Girly Man will never back stab you, and steel your Job.

Girly Man will never demand a raise.

As the chairs in the global economic game of musical chairs are removed.

Only Smoking Men see it, and will prosper Girly men will wake up homeless hungry and no clue how to survive.

The more girly men the better.

#109 economictsunami on 11.06.13 at 8:03 am

Condo Developers would have us believe retiring boomers will move to an over-crowed downtown to fill those glass sky boxes; replete with useless balconies.

What I have observed in the 905 ‘hinterland’ is those retirees moving to Kawartha Lakes, Peterborough County & Northumberland; buying a nice house (with a chunk of land) and re-investing. (Or maybe just continued RE concentration as GT illustrates above.)

The tide of those moving is beginning to ebb though, as it is becoming increasingly tough to find a Greater Fool to buy their over priced SFH…

#110 detalumis on 11.06.13 at 8:11 am

Except the boomers didn’t make the huge killings, the pre-boomers did. I live in an Oakville bungalow that has only sold 2 times since it was built in the 60s, it was sold to me in 1990 at the height of the last market peak. It went up 650% in the first 22 years and then 300% in the next 22 years. Some of the original owners are only now selling theirs, they made the huge-HUGE killings.

#111 Paul on 11.06.13 at 8:17 am

59 Tiger on 11.05.13 at 10:46 pm
Not much from out west here maybe the time change ! My banker called me today said haven’t talked in months my thoughts won’t be talking to u for months too come man my investments are doing just fine! I think she wants a date she says she knows more about me than I due.

That’s more than anyone wants to know ? DuE lol

#112 Gladiator on 11.06.13 at 8:24 am

@92 TheCatFoodLady:
Parents’ monetary gifts to children are not taxable in Canada. The tots get to keep 100% of the dough.
Of course, if the money is invested, then the capital, interest or dividend income(-s) are taxable.

#113 Victor V on 11.06.13 at 8:54 am

Free Event will Teach you How to get 40% ROI per year (Only 50 Person Capacity) Sign Up!

https://www.facebook.com/events/195596917295070

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

If there’s a blog dog in Toronto that wants to attend and bring back their findings, we’d be all ears as to how we can make “40% ROI per year” investing in real estate!

This sounds almost as good as winning the lottery. These realtors are truly wonderful, caring people who are here to help the sheeple.

#114 recharts on 11.06.13 at 8:58 am

TREB’s numbers are out.
Complete nonsense
Last year
http://torontorealestateboard.com/market_news/release_market_updates/news2012/nr_market_watch_1012.htm
Condos 1141

This year
http://torontorealestateboard.com/market_news/release_market_updates/news2012/nr_market_watch_1012.htm
Condos 1347 (I would like to see that list!!)

However they report a 20.4% percent increase
1347/1141 =1.18%

Obviously these guys are on crack.
Almost all the % numbers in the October report do not add. Do the maths.

Probably they fudged the numbers but forgot to adjust the % numbers accordingly.

#115 TheCatFoodLady on 11.06.13 at 9:06 am

#112 – thanks for the info, Gladiator. I wasn’t sure how it worked for a straight gift from adult parent to adult child.

#116 economictsunami on 11.06.13 at 9:10 am

To your above points GT:

Save your money; rent, don’t buy… (original headline of article.)

http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/save-your-money-rent-dont-buy/article15257443/

#117 recharts on 11.06.13 at 9:20 am

Nothing adds in their numbers and Tara Perkins of G&M is saying:
The number of existing homes that changed hands in the Greater Toronto Area during October came in 19.2-per-cent higher than a year ago, with the latest data from real estate boards across the country suggesting that the national housing market continued to be strong last month.
—————–

Oct2013: 7842 sales. http://tinyurl.com/mn87l8b
Oct2012: 6800 sales. http://tinyurl.com/lw73r55
That is 15% not 19%

The situation is simply hopeless. There is no accountability for these and they can say whatever they like as long as they are not Rob Ford.

Sales in Oct 12 were down 15 per cent. We are back to 2011 levels. — Garth

#118 CrowdedElevatorfartz on 11.06.13 at 9:27 am

@#34 TnT

The love is gone in our relationship? :(

#119 Smoking Man on 11.06.13 at 9:33 am

#114 recharts on 11.06.13 at 8:58 amTREB’s numbers are out.Complete nonsense
Last year……
………….

Yes you are correct, and when you go to there home section the reporters will validate those numbers with glee.

Even though we know it’s a fib.

Obviously the cartoonist reads GF or its another vision from the UCC. I CALLED IT EARLIER.

LIER LIER PAINTS ON FIRE

http://www.thestar.com/opinion/editorial_cartoon/2013/11/05/editorial_cartoon_november_6_2013.html

The hypocrisy of that rag…..

#120 CrowdedElevatorfartz on 11.06.13 at 9:34 am

@#64 Inglorious Investor

Coincidence? I think not!

#121 Max Torque on 11.06.13 at 9:34 am

#49 TIGER. I’m sure that is an interesting story, but puhleeese….a little punctuation so we can figure it out.

#122 recharts on 11.06.13 at 9:36 am

Sales in Oct 12 were down 15 per cent. We are back to 2011 levels. — Garth

That is not the point. The point is that you can not trust them at all. Not only that their numbers do not match the raw data that I collect, but they are not consistent with their own previous calculations and numbers.

#123 eddy on 11.06.13 at 9:36 am

OK, the MSM lies about absolutely everything but they’re telling us the truth about Rob. The Toronto Star and CP24 etc should have given equal time to —Miller who taxed anything that was missing a tax and Haarper and Dolt On e Guilty who taxed what was left . To paraphrase Dolt on ‘I’m so so sorry for losing that billion dollars of taxpayer’s money on my e-health scam’ This was before he started saluting the Sandy Hook false flag, and committing millions of dollars of tax money for ‘school security’, translation ‘more government debts based on a hoax’
for that he should be arrested

These are crimes against tax paying citizens, Rob only hurt himself

#124 CrowdedElevatorfartz on 11.06.13 at 9:37 am

@#68 Inglo Invest

I dont have a problem with Rob “Ive never seen a video of me smoking crack” Ford.
And I totally agree with you about the socialist trough snuffling weasels that always seem to gravitate to the political teat.
As a matter of fact. I’ll trad you 2 Gregor Robertsons for 1 Rob Ford……
Deal?

#125 CrowdedElevatorfartz on 11.06.13 at 9:40 am

@#73JayBee
“centuries old socializing machines define their gender roles, principles, and values….”

deep.
Majored in psychology did we?

#126 rosie "moving forward" in the knowledge that, "this won't end well" on 11.06.13 at 9:41 am

# 77 scib…

This guy was cutting edge in his time.http://www.washingtonpost.com/blogs/in-the-loop/wp/2013/11/05/rob-ford-vs-marion-barry-who-said-it-best/

#127 Big Brother on 11.06.13 at 9:41 am

#108 Smoking Man on 11.06.13 at 7:48 am

MKULTRA says our programing of Smoking Man is still working. We have created a Centuries old anti socializing machine. Smokem if ya got em!

#128 jess on 11.06.13 at 9:53 am

limits

This SeaWiFS image of eastern China shows the widespread nature of the pollution problem. Beijing has completely disappeared under the haze.

http://visibleearth.nasa.gov/view.php?id=53490
28,000 rivers vanish from Chinese map

======

Proposed Rule Limits Size of Commodities Traders’ PositionsNew York Times ‎- 1 hour ago
The Commodity Futures Trading Commission is seeking to expand the … of the commission, said on Tuesday that the new position limits would …

#129 The R on 11.06.13 at 9:54 am

a million thanks for this blog…
my futures so brighter cause of you…
next time your in Surrey- drinks & meal on me

BUT

this smokin punk is starting to annoy
seems he’s more than just a punk without a cause

Can you please limit him (or if need be because of him) then all to just one comment a day

so please SM , can you please condense all your make believe fantasy’s to one post…please. from your fake drunken rants it seems like you don’t care about anyone else but yourself – none the less their are other people trying to learn the ins/ and outs of investing without having to put up with your crap about -fat people-metro sexuals-ufo’s-batman’s-teachers-casinos…

don’t get me wrong your stupid funny & a breath of fresh air- occasionally but a post a day is enough

I mean you have your own web page for all your loyal followers.. leave this blog for people smarter (more educated & less coincided ) then yourself… please

ques- I have some BBO shares- how can I find out if their an ETF or a corporation ?

#130 Ivec on 11.06.13 at 9:55 am

#67 Smoking Man

One thing comes to mind, Breaking Bad

#131 Snake on 11.06.13 at 10:03 am

Who wants to own a 1000sq condo for $500,000 in the middle of crack-town facing united poultry processing plant & right next to The Vivian Transitional Housing where 24 prostitutes living in the hotel plying their trade around the corner?

if u Google the address and go to street view you will see that area around that block on the west side and east side are hooker central capital

i cant imagine people paying $500,000 but its vancouver anything could hapeen,To live there with the smells coming out from the poultry plant and hookers doing their business all night it’s going to be fun

http://www.ecorealtyinc.ca/search?q=557+East+Cordova+Street

2)Home sales are surging, but what about prices?

http://www.theglobeandmail.com/report-on-business/video/video-home-sales-surging-prices-flat/article15262364/

#132 Mr Happy on 11.06.13 at 10:07 am

#10 Jimmy on 11.05.13 at 8:24 pm
“This stuff is so good I would be willing to pay for it.”

You’d be alone…. ;)

#133 Butch on 11.06.13 at 10:10 am

Have we just about run out of everything to blame?

Not even close. — Garth

#134 angela on 11.06.13 at 10:14 am

DELETED

#135 Tdot SFH on 11.06.13 at 10:18 am

Sales up. Price flat. Lock in for 10 years, we should all just do that.

#136 Daisy Mae on 11.06.13 at 10:26 am

#38 Marginal: “To remain silent, is to condone.”

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

To engage, is to encourage. ;-)

#137 Ralph Cramdown on 11.06.13 at 10:33 am

#122 recharts — “The point is that you can not trust them at all. Not only that their numbers do not match the raw data that I collect, but they are not consistent with their own previous calculations and numbers.”

We know why their numbers don’t match previous reports; they play fast and loose with comparing numbers-cum-cancelled-deals with numbers-ex.

As to their numbers not matching the raw data you collect, that’s likely because you don’t have a perfect snapshot of all MLS activity. You get a pretty good snapshot of most activity. People who analyze lower mainland MLS data have exactly the same issues.

These MLS systems were designed for one thing and one thing only: To exchange information about listed properties among coöperating brokers who were willing to split commissions. It is obvious that their technology is not state of the art, and they really don’t care. Any and all statistics emanating from the system must be assumed to be approximate only. Use them to judge the trends, correct for the predictable inconsistencies that you can, and ignore that they’re not 100% accurate. Frustrating, I know, but its the best data we have, and is more than we used to have.

#138 Snake on 11.06.13 at 10:56 am

Hi Garth

Who wants to own a 1000sq condo for $500,000 in the middle of crack-town facing united poultry processing plant & right next to The Vivian Transitional Housing where 24 prostitutes living in the hotel plying their trade around the corner?

if u Google the address and go to street view you will see that area around that block on the west side and east side are hooker central capital

i cant imagine people paying $500,000 but its vancouver anything could hapeen,To live there with the smells coming out from the poultry plant and hookers doing their business all night it’s going to be fun

http://www.ecorealtyinc.ca/search?q=557+East+Cordova+Street

2)Home sales are surging, but what about prices?

http://www.theglobeandmail.com/report-on-business/video/video-home-sales-surging-prices-flat/article15262364/

#139 Raging Ranter on 11.06.13 at 11:11 am

The real danger is that a lot of boomer parents are taking out HELOCs to finance their kids’ purchases. I suspect the mom who sells the farm for $2.5 million and hands her kid half a mil for an overpriced condo represents a tiny minority.

#140 whoops-he did it again on 11.06.13 at 11:18 am

Just to be clear…Encana stock went up on the announcement of the reorg…..firing thousands and selling assets is actually good for the bottom line. ECA is now on my buy list.

And BTW….by 2017 Canada will begin to see increases in the domestic oil prices due to the new ( duh what were we waiting so long for) pipeline deal between BC and Alta. I’m buying all related energy and transpo stocks while still at bargain basement prices. An energy sector ETF might be a good way to shotgun….but I would still prefer to do my due dilegence and pick the winners…..several paying big divs while I wait to cash in….just sayin.

Secondly…..Benji Tal etc are swinging for the fences to explain away ZERO INTEREST RATES as being the primary culprit. Had douchebag Greenspan not crashed the rates in 2000 and let the market adjust to what the economy could support we would not have had any housing bubbles anywhere…..’effing’ Keynsian nonsense only works for the fat civic serpents whose compensation must rise every year. Zero rates have turned into a hidden tax scheme to support white elephants and boondoggles….money has been diverted to a false/flacid economy.

#141 chojo on 11.06.13 at 11:29 am

http://qz.com/143017/beijing-goes-hunting-for-overseas-real-estate-by-corrupt-officials/

#142 Steven on 11.06.13 at 11:48 am

Eighty-five per cent of Boomers own houses. The fat generation’s reaped more gain from the real estate bloat than any which went before. But in so doing, they screwed the kids. Now they’re making it worse.

Yes indeed Garth they screwed the kids and as deplorable as that is they made it seem like good business and got the government involved in the mortgage insurance and some financing just to make the screwing easier and government approved.
This is just a way of doing financial screwing of kids or people in general. I find it interesting that legalizing homosexuality, liberalizing divorce,real estate price inflation, promoting feminism, excessive government debt, debasement of the currency and other diabolical fiscal and legal reforms pretty well started to kick in and take off right at the end of the baby boom and canada and the western world has been sliding into a hell of its own making ever since. The corruption of morals goes hand in hand with the corruption of law, government and finance. It is about time to burn the whorehouse , bulldoze the rubble and start over from scratch.

#143 eddy on 11.06.13 at 12:13 pm

What’s the MSM’s motive in the Rob Ford character assassination?

To make Everyone lose faith in local government. However, no matter how corrupt City Hall is, it is the best place to fight the unrelenting onslaught of garbage being dumped on us by Ottawa and Queen’s Park.

Many people believe leaders shoud have morals, as well as principles. — Garth

#144 eddy on 11.06.13 at 12:20 pm

Many people believe leaders shoud have morals, as well as principles. — Garth

And I’m one of them, I agree with your statement. All ‘elected representatives’ should have morals

#145 Denisa on 11.06.13 at 12:26 pm

Thank you Seth for your comment on smokingman. Well said.
I skip his comments altogether on this informative blog. He has nothing of value to contribute.

#146 Stupesing in Cabbagetown on 11.06.13 at 12:27 pm

The Australians are cracking-down on real estate agents: http://www.abc.net.au/news/2013-11-06/asic-warns-real-estate-agents-on-smsf/5072554

#147 Tony on 11.06.13 at 12:34 pm

Re: #140 whoops-he did it again on 11.06.13 at 11:18 am

You never and i repeat never buy a stock who’s dividend is cut 65 percent unless the company is trying to stave off bankruptcy. Encana must know something the public doesn’t and its shares should be dumped as soon as you can dump them.

#148 Victor V on 11.06.13 at 12:40 pm

Food Banks Canada finds that over 800,000 Canadians used a food bank in March 2013… A lot of people are struggling to put food on the table.

http://www.cbc.ca/strombo/news/canadas-food-banks-record-levels

#149 bigtown on 11.06.13 at 12:52 pm

The twenty and thirty-something group buying houses with help from their parents also exhibit other tendencies aimed at willing away decisions and expensive concerns out of their lives. My immediate family are God Fearing law-abiding folks but the young’uns are not getting HITCHED. These late twenties and early thirties guys and dolls are buying homes and having babies without any form of “marriage certificates” in the belief they can do a runaround the fall out of marriage: lawyers; custody; child support and alimony all are required after less than two years of cohabitation. So the house horny will have to face the music like their parents but it will come for them in their forties or later. So these no marriage contract folks will still have to deal with the bank and the mortgage if all their MOM BACKED PLANS fall through.

#150 Edward on 11.06.13 at 12:56 pm

On your two points of “What does this transfer of unearned wealth mean?” I’d like to add one: Thirdly, it ensures the Boomers will never retire and their children will keep complaining that there are no decent jobs. Here’s a hint: If you take a huge chunk of money from your folks, ensuring that they can’t retire for years to come, and then you whine that there aren’t any jobs available, you might want to look in a mirror for the source of the problem.

#151 recharts on 11.06.13 at 1:03 pm

OK OK but you expect the retards at least to be able calculate the YoY increase correctly, even when they compare apples (adjusted) with oranges (unadjusted numbers)

I might not have a complete snapshot of the data but I do not expect differences of hundreds of units

#137 Ralph Cramdown on 11.06.13 at 10:33 am

We know why their numbers don’t match previous reports; they play fast and loose with comparing numbers-cum-cancelled-deals with numbers-ex.

As to their numbers not matching the raw data you collect, that’s likely because you don’t have a perfect snapshot of all MLS activity. You get a pretty good snapshot of most activity. People who analyze lower mainland MLS data have exactly the same issues.

These MLS systems were designed for one thing and one thing only: To exchange information about listed properties among coöperating brokers who were willing to split commissions. It is obvious that their technology is not state of the art, and they really don’t care. Any and all statistics emanating from the system must be assumed to be approximate only. Use them to judge the trends, correct for the predictable inconsistencies that you can, and ignore that they’re not 100% accurate. Frustrating, I know, but its the best data we have, and is more than we used to have.

#152 Fed-up on 11.06.13 at 1:05 pm

@ #105 ValleyBoy on 11.06.13 at 5:48 am
When you can make $200 000 in Fort mac for only working half the year if you land the right gig with little education, Housing seems cheap. Regardless of whether your parents give you money or not. And when you have Anyone unable to pay there bills, well they can just fly to Fort Mac from anywhere in Canada to catch up, and then get caught up in it and buy a bigger house. So as long as we have the Americans needing our oil the housing market may be fine.
—————————————————————————————-

Yes Fort Mac will save us all.

#153 pinstripe on 11.06.13 at 1:05 pm

I am skipping all the posts by SM and SM Responses and that leaves nothing to read on this blog.

#154 jess on 11.06.13 at 1:06 pm

in the 90’s casinos were the answer for education shortfalls

COLORADO: Voters approved a 25 percent tax on newly legal recreational marijuana to fund school construction. Opponents argued the tax rate would benefit black market sales….

SCHOOL FUNDING
COLORADO: A kindergarten-through-12th-grade school-finance overhaul was rejected; it would have increased income taxes about $1 billion a year and revived a progressive income tax structure abandoned in the 1980s.

MAINE: Residents of South Portland rejected a proposal aimed at blocking the flow of tar sands oil from western Canada to the city. Environmentalists say the thick, gooey oil is more difficult to clean up than conventional crude oil, contains harmful chemicals and releases more greenhouse gases. Supporters of a pipeline say a ban would hamper the growth of existing petroleum-based businesses

http://www.npr.org/templates/story/story.php?storyId=243129008

===
purple pipelines

http://groksurf.com/2013/04/24/san-diego-faces-a-major-decision-on-wastewater-treatment-and-water-recycling/

http://www.utsandiego.com/news/2013/Oct/08/brown-signs-measure-boosting-sd-toilet-to-tap/

http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140SB322

#155 Matt on 11.06.13 at 1:14 pm

Interesting article on the Canadian housing bubble in World Finance magazine: http://www.worldfinance.com/home/the-econoclast/the-problem-with-predictions

#156 recharts on 11.06.13 at 1:19 pm

@RalphCramdown

How can you explain that for SFH the stats are spot on !?

Att/Row/Twnhouse 114
Detached 1098
Duplex 9
Link 14
Multiplex 2
Other 1
Semi-Detached 331
Store W/Apt/Offc 8
Triplex 6
Vacant Land 3

Let me tell you why! Most probably for Condos they count the presales and the assignments as many times proved around here.

#157 Canadian Watchdog on 11.06.13 at 1:39 pm

#141 chojo

Nice link..

For a corrupt official with money to invest, putting funds directly into an overseas bank or stock market can be risky, because financial institutions are required by global anti-money laundering agreements to report suspicious funds. But real estate agents in most countries have no such requirements. So when Chinese buyers land with suitcases full of cash, as they have in recent months, real estate deals can get done quickly.

Need proof? Spot the odd one in this GTA sales by price range chart.

Can’t turn off the hate, can you? — Garth

#158 Herb on 11.06.13 at 1:50 pm

“Many people believe leaders shoud have morals, as well as principles.” — Garth

A touch of class might be considered too if electing someone to lead a city with a population greater than six of the ten provinces of Canada. The good burghers of TO have only themselves to blame.

#159 Realtor on 11.06.13 at 1:57 pm

This guy is obviously a Realtor: http://business.financialpost.com/2013/11/06/housing-market-firing-up-again-as-toronto-sales-leap-19/#comment-1111345702

#160 HDJ on 11.06.13 at 2:01 pm

Garth, I’m one of those boomers you take so much joy in slamming. For decades the value of my home relentlessly increased. I’m flattered to read your suggestion that I somehow played a role in this real estate inflation, but blaming me for our housing-bubble mess is crazy. I just happened to be an owner/purchaser over a period of time when forces beyond my understanding and comprehension inflated the housing market. In addition, you’re tossing even more blame in my direction because I have children I’ve financially helped get into the housing market. Well, in my family we share and look after one another. Your muttering over parents who use some of their savings to help offspring with down-payments is quite baffling. Are you suggesting you wouldn’t do this for your children? I grant you a minor, technical point about how this might contribute to housing inflation, but your suggestion pales in significance compared with how parents choose to care for the interests of their offspring.

#161 Vamanos Pest on 11.06.13 at 2:14 pm

Today’s post, while as always a good read, is not of great relevance. It explores the “why”. Put another way, it discusses blame. However, in bubbles, blame is irrelevant. The simple fact is, we are where we are. Who’s at fault doesn’t matter, what matters is what to do about it. And what to do about it is: reduce debt, get liquid, get diversified. We can discuss the Chinese, Wrinklies, and interest rates all we want, it doesn’t change what needs to be done. Just like discussing what the “catalyst” for the bubble bursting will be, it’s of no use once you step back and recognize that ALL THINGS UNSUSTAINABLE WILL END, BY DEFINITION. And current house prices, current debt levels, current incomes, current interest rates, and current size of our housing industry as a percentage of GDP all represent a state of affairs that is unsustainable.

Blame shlame, catalyst smatalyst, focus on the aspects of the problem with conclusions that matter.

#162 The other dimension in Calgary on 11.06.13 at 2:16 pm

Trying to make sense logically about human behavior is an insane unsolvable task. Trying to predict what will happen is also insane. There are too many variables. It is best not to blame others for things that are happening because this will only increase frustration. There are ways to accomplish lessening frustration and it largely involves ignoring newscasts and most of what the general population thinks is important. It is called having a filter to what is important. Housing is only important to have to live in. All of it is overpriced and is a tool to live in. Nothing more. In Calgary you get a small plot of ground and you accept the permanent feeling of being unbalanced. Neighbours are too close. There is too much traffic. Gas/electricity costs too much. If there is flooding tapwater tastes like freshly mowed lawn. Best not to worry about any of this. What is more important is staying strong and healthy, NOT finances, because finances can change. Health is harder to change, much much harder. Focus on exercising, eating healthier, lessening stress, and focusing less time on things that dont matter, such as what may happen. Why worry about it? Focus on things that make you happy and that doesnt involve real estate transactions. One phrase describes modern society: Forced domesticated insanity.

#163 45north on 11.06.13 at 2:29 pm

Real estate inflation has sucked massive amounts of net worth into housing

this is massive mal investment, the upper ranks of the banking industry and government know this, Bruce Joseph (on youtube) says the same thing.

great writing Garth – on one side the government trying to one thing, on the other millions of wrinkles trying to do the other. The stakes are high, my thinking is that the wrinkles and their children are going to be wiped out. Well not universally but in significant numbers.

I’d say this generation is getting more help than any other generation did, but I’d say they need this help more than any generation, too.

I agree that they need help more than any generation. I do feel this – that the present generation is faced with threats and challenges unprecedented. One of the greatest threats, maybe the greatest is the illusion of prosperity and wealth – all is well. In the past one of the common challenges was bringing in the harvest. Quaint but at least previous generations knew what they had to do. By contrast what is it that this generation has to do? I mean my children. To give them a down payment is to say that their task is to have a house. This is by no means certain.

Tiger: Ya know when I was 14 my pop said what do you wanna be? I said I wanna have my own logging company

My cousins had a logging project. Wanting to help, I picked up a chain saw and looked for some logs to cut. My younger cousin who is a skilled and experienced woodsman said “just put the chain saw down”. I thought this was good advice so I did and tried to be helpful in other ways.

#164 TnT on 11.06.13 at 2:37 pm

#157 Canadian Watchdog

Can’t turn off the hate, can you? — Garth

******

How “Canadian” to call this “hate”

He has been consistent and relentless in blaming housing unaffordability on the Chinese. Smells like hate to me. — Garth

#165 frank le skank on 11.06.13 at 2:38 pm

Lets say that the return to normal is 4 times the median income, Toronto media price for a home should come down to about $280,000. According to the November TREB report, median prices for TO is $467,000. This is 9.6 times the household income (statscan 2011). That’s a 40% reduction from current prices. Oddly enough, Toronto and Vancouver have one of the lowest median incomes in Canada.

#166 Tony on 11.06.13 at 2:42 pm

Re: #92 TheCatFoodLady on 11.06.13 at 12:55 am

If it’s cash there’s no tax if the kids are 18 or older.

#167 Ralph Cramdown on 11.06.13 at 3:03 pm

As nice as it would be to have moral leaders, I’ll choose competence over morality if I have to choose. We don’t really need to debate that with Ford, though. Unable to forge a consensus in council or with other levels of government, Metrolinx or adjacent municipalities, the guy’s signature achievement after three years in office is contracting out garbage collection in some parts of the city. Eliot Spitzer he ain’t.

#168 4 AM Sunrise on 11.06.13 at 3:09 pm

#160 HDJ

Nobody is against the idea of helping your children when they need it. The question is whether your 100% well-intentioned assistance will cause your children financial pain down the road. In some cases, it may.

Would you have handed tens of thousands of dollars over to your children to invest in Nortel or whatever tech bubble stock was purported to be a “sure thing” in the late 90’s?

And for the record, I have a Boomer mother who mused about financially assisting me to purchase a condo in HAMcouver, jointly with my sister. I refused on grounds that I’m not comfortable purchasing real estate at this point in my life, and also because I don’t get along with my sister. She refuses to believe that we don’t get along. I guess well-meaning, loving parents are delusional like that sometimes.

#169 Pypes on 11.06.13 at 3:09 pm

Over and Over again I am reading about how housing market firing up again, and no bubble? How can this sustain?

http://business.financialpost.com/2013/11/06/housing-market-firing-up-again-as-toronto-sales-leap-19/

#170 espressobob on 11.06.13 at 3:18 pm

#129 The R

BBO is an old ‘Claymore’ closed end mutual fund. Way better products available in ETF form!

http://ca.ishares.com/product_info/fund/overview/BBO.htm

#171 Nemesis on 11.06.13 at 3:39 pm

“Can’t turn off the hate, can you?” — BlinkeredGarth

Shoot the Messenger much?… InconvenientTruths hardly qualify as HateSpeech, AuldPol – and WatchDog’s hypothesis is well supported by the facts.

Still, if you’d prefer a different messenger[s] – you could always take your pick from: Economist, Bloomberg, G&M, Telegraph, FT, WSJ… and Nemesis’ personal favourite, ChinaDaily*

[Economist] – Hedging their bets: Officials, looking for an exit strategy, send family and cash overseas

http://www.economist.com/node/21555961

[UK Telegraph] – China’s Communist party cadres launch property fire sale: As China’s new leaders intensify a campaign to root out corruption, thousands of Communist party officials have been panicked into a fire sale of their illicit properties while billions of pounds have been smuggled overseas.

http://www.telegraph.co.uk/news/worldnews/asia/china/9815998/Chinas-Communist-party-cadres-launch-property-fire-sale.html

[FT] – The family fortunes of Beijing’s new few: Fears are growing that parts of China’s faltering economy are being run to profit a political elite

http://www.ft.com/intl/cms/s/0/86a82f3e-bc69-11e1-a470-00144feabdc0.html

[BloomBerg] – Xi Jinping Millionaire Relations Reveal Fortunes of Elite

http://www.bloomberg.com/news/2012-06-29/xi-jinping-millionaire-relations-reveal-fortunes-of-elite.html

[WSJ] – Chinese Fly Cash West, by the Suitcase

http://online.wsj.com/news/articles/SB10001424127887323635504578213933647167020

[BloomBerg] – Heirs of Mao’s Comrades Rise as New Capitalist Nobility

http://www.bloomberg.com/news/2012-12-26/immortals-beget-china-capitalism-from-citic-to-godfather-of-golf.html

[G&M] – Alleged dragon head laundered triad cash in Canada: court documents

http://www.theglobeandmail.com/news/british-columbia/alleged-dragon-head-laundered-triad-cash-in-canada-court-documents/article9254922/

[ChinaDaily] – ‘Global effort needed to fight corruption’

http://usa.chinadaily.com.cn/epaper/2012-06/27/content_15525627.htm

Well. There it is.

[*Pity the ChinaDaily journalists, who – unlike their brethren at the People’sDaily – have not been rewarded with an architectural homage to the penis. Hmmm… clearly, writing for the Official Party Organ has its perks.]

Nobody disputes the reality of foreign investment in Vancouver, as in Toronto. But there is no proof it has cost the local their homes. That is hate talk. — Garth

#172 Smoking Man on 11.06.13 at 4:06 pm

#153 pinstripe on 11.06.13 at 1:05 pmI am skipping all the posts by SM and SM Responses and that leaves nothing to read on this blog.

What are you taking about.

Leaves:
Gold bugs
Disgruntled basement dwellers
In your face home owners
Realtors
LaughtingCon
Armchair economists
Testosterone from out west
And a few emasculated male prospectives on things

And my fave posters Vladimir and Beach Girl

Don’t read me. As you probably have no skin in the game

#173 Mister Obvious on 11.06.13 at 4:19 pm

#160 HDJ

“you’re tossing even more blame in my direction because I have children I’ve financially helped get into the housing market. Well, in my family we share and look after one another. “
————————–

Suppose it was 1999 and you had just used your savings to help get the kids into Nortel at $175. Imagine the great capital losses the family could have shared together.

You are doing the equivalent in real estate by helping your offspring jump on board at the peak of an ugly housing bubble.

At least the kids wont feel too bad when the gasbag deflates. It was only Mom & Dad’s easy come, easy go clueless boomer money anyway.

#174 ILoveCharts on 11.06.13 at 4:26 pm

He has been consistent and relentless in blaming housing unaffordability on the Chinese. Smells like hate to me. — Garth

You have been consistent and relentless in blaming affordability on Canadian citizens. Does that mean you hate Canadians?

Of course not.

It’s entirely possible for someone to postulate about the economic impact of HAM without having any negative feelings about the HAM people. We’re trying to have a discussion about dollars and policy.

You are way too quick to label someone as a racist hater anytime they bring up valid points about the impact of foreign investment on the lower mainland RE market.

I honestly believe you need to spend less time looking at charts and listening to economists and more time with your feet on the ground in the communities of Richmond and Burnaby before you form any further opinions about HAM. We all know that the statistics don’t exist to tell the story so you need to see it for yourself in person.

As for your statement that:
“Nobody disputes the reality of foreign investment in Vancouver, as in Toronto.”

How does that jive with your earlier statements?
“So two years ago this pathetic blog arrived at the conclusion that HAM is as fake as MAC, The Key, Cam Good and the miscehievous little Amanda. ”

“Of course, there is no statistical proof HAM has moved Van prices, at least directly.”

“I said in 2011 that HAM was a myth, and today it’s being proven as such.”

HAM isn’t the entire story but it is an important part of the puzzle. Without it, Vancouver wouldn’t have rocketed to such heights and it might have already fallen further than it has.

If and when the bubble unwinds in the lower mainland, the impact of HAM will be important to understand.

When you find a way of separating Canadian citizens of Asian heritage from HAM, I’ll be all ears. — Garth

#175 ILoveCharts on 11.06.13 at 4:26 pm

Edit:
“You have been consistent and relentless in blaming affordability on Canadian citizens. Does that mean you hate Canadians?”

I obviously meant “unaffordability”

#176 Canadian Watchdog on 11.06.13 at 4:27 pm

Can’t turn off the hate, can you? — Garth

The link referenced a WSJ article about corrupted Chinese officials buying real estate overseas.

Hate? Your view is horizontal. Mine is vertical. This is about class discrimination and upholding whatever laws are left to protect Canadians. This is not about ethical differences. So if you wish to depict me as a racist for hating corrupt communist officials' dirty money being laundered into Canada, so be it.

For those Canadians who are not narrowly fixed on stock market gains while society deteriorates around them, the question to ask is: should we care and does it matter? Niall Ferguson explains.

#177 Mister Obvious on 11.06.13 at 4:41 pm

#168 4 AM Sunrise

I didn’t notice that you had beaten me to the Nortel Analogy. You know what they say about great minds.

#178 recharts on 11.06.13 at 4:41 pm

So after all I am not insane and my numbers do reflect the reality.
Canadian Watchdog, thanks a lot for confirming this.

Here are charts confirming the situation you signaled:

All in one chart: http://img809.imageshack.us/img809/1659/vf3a.png
All in one, unde 1M: http://imageshack.us/f/849/wrsz.png

Condos 300K-500K: http://imageshack.us/a/img546/5476/qzau.png
Condos 0-500K:http://imageshack.us/a/img594/2522/jbbz.png

Note that for TO my numbers are pretty much exactly the TREB numbers (first chart-All in one, left column). The only exception is Condos for October!
Also note the declining trend in sales for 905 and for Condos in 416.

For October for condos in 416 my stats were a big miss and I doubt that this is because of lack of data or partial data. The same source was used for all the other categories.

My opinion is that the stats for condos in 416 are patched to look good:
-the average price was tuned up to look smaller, probably because this will panic F
-the sales numbers have been pumped up because if the panic settles in it will crash.

For both Condos in 416 and Detached in 416 I am seeing sales of high end properties that are discounted. This explains why the Avg price went up so much.

If you look at the graphs where the outliers were removed (All in one under 1M and condos under 500K or between 300K-500K) you see either flat prices or declining prices in Toronto.

So what we are seeing is in fact smart money (investors and RE agents who invested) exiting the market because this is tanking.

#157 Canadian Watchdog on 11.06.13 at 1:39 pm

Need proof? Spot the odd one in this GTA sales by price range chart.
http://i.cubeupload.com/lLxeRM.png

#179 TnT on 11.06.13 at 4:42 pm

Nobody disputes the reality of foreign investment in Vancouver, as in Toronto. But there is no proof it has cost the local their homes. That is hate talk. — Garth

“A proof is a proof. What kind of a proof? It’s a proof. A proof is a proof. And when you have a good proof, it’s because it’s proven.”

I think the proof is the lack of proof.

#180 Spectacle on 11.06.13 at 4:55 pm

Thanks Garth.

Re : #171 nemesis comment.

A view of offshore money of All Kinds was made very evident to me last few weeks. It relates to this article and the above comment between Nemesis & Garth.

Client I was working with was Not mainland HK, and not in the “medical field”, but sophisticated , and indicated that bringing money into the country via ever escalating real estate was easy! Call the bank for funds transfer, Buy a $3 mill vancouver property , renovate to an astounding level, say $2 million and growing, and then sell to another client, or your own offshore company for $5. Bathrooms had $40 k in glass walls! 200sq foot master shower, Ouch! Even if they lose 10% , it’s the cost of business, I was told. Not a significant number of units, but significant impact on market price average for units re-sold. Just interesting, & strange things in BC housing…..

#181 Entrepreneur on 11.06.13 at 5:00 pm

Keep to the program, Tiger, as Garth Turner states at the bottom “Please submit only once!”. So make your one comment and stick to the topic.

The housing prices are falling around me and has for a number of years for various reasons. The low interest rates are what I call the “dangling carrot” to capture buyers. Buyers should be aware what they can afford and is it worth it at that price?

Young people around me are saying that they want out of the housing market. Also, the boomers have bought their offspring a house but now are realizing that the value is going down. Pickled unless they have endless money!!!

It is like buying a old, junky vehicle at a high price expecting it to increase in value (could if fixed, I guess) but find out different when going to sell it. Car salesmen and real estate are crafty…they know the words that the buyer wants to hear, know how to control the media, get mass emotions buying. Morals, what morals?

#182 :):( Ying Yang on 11.06.13 at 5:22 pm

Wow Smoking Man this is a tough crowd today they are really beating up on you! Oh well it could be worse, you could be Rob Ford……………………………Or are you Rob Ford in disguise? Smoking Man, Smoking Crack?
Nah couldn’t be your just eccentric and not stupid!

#183 bill on 11.06.13 at 5:30 pm

”They’ve got the worlds first crack smoking Mayor”
well second maybe…
http://en.wikipedia.org/wiki/Marion_Barry

#184 whoops on 11.06.13 at 5:31 pm

Re: #140 whoops-he did it again on 11.06.13 at 11:18 am

You never and i repeat never buy a stock who’s dividend is cut 65 percent unless the company is trying to stave off bankruptcy. Encana must know something the public doesn’t and its shares should be dumped as soon as you can dump them.

whoops…the stock is up 9% since the news of the reorg.

#185 Ralph Cramdown on 11.06.13 at 5:49 pm

http://qz.com/143017/beijing-goes-hunting-for-overseas-real-estate-by-corrupt-officials/

Toronto and Vancouver get mentioned.

Garth, I don’t know why you think Chinese real estate investment isn’t much of an issue. It’s pretty obvious that our taxation and government are based on the assumption that a prime urban house costing x is inhabited by a family that can afford it (whether owning or renting, in which case the landlord should be earning a return), is paying income taxes on that income (or did when it was earned) and is spending an amount commensurate with that lifestyle in the local community.

Tales abound of high end households with no local primary breadwinner, or abodes which are vacant for most of the year. And it’s obvious that every downtown condo that is owned but not occupied, there’s someone working downtown who can’t live nearby, a local business whose traffic calculations are negatively affected, a city forced to service a lower population density than planned, &c &c.

Further, it’s quite possible that land-banking by people who need a safe store of value outside mainland China is contributing to prices inflated by 20%, 30% or more. They might find eventual reversion to the mean to be an acceptable cost of money laundering, but it’ll be devastating to highly leveraged young locals who bought in lest they be priced out forever.

A lot of people get rich when foreigners buy high and subsequently sell low. But a lot of locals lose a lot, too. The gains to the locals and the country as a whole certainly aren’t evenly distributed. We do not want our urban real property to become a store of wealth for the global wealthy, with its price becoming uncoupled from local incomes and rents… Oops, too late!

I consider provincial and federal governments’ refusal to study the issue to be a case of wilful blindness. I don’t know the extent of the problem, and that’s a problem in itself.

“It’s quite possible that land-banking by people who need a safe store of value outside mainland China is contributing to prices inflated by 20%, 30% or more.” You have proven yourself too astute on this blog to actually pen, or believe, a statement like that. — Garth

#186 Bob Rice on 11.06.13 at 5:51 pm

Bank of Mom; Seems like prices are gonna stay sticky a little while longer….

http://business.financialpost.com/2013/11/06/housing-market-firing-up-again-as-toronto-sales-leap-19/

#187 Smoking Man on 11.06.13 at 5:52 pm

#182 :):( Ying Yang on 11.06.13 at 5:22 pmWow
Smoking Man this is a tough crowd today they are really beating up on you! Oh well it could be worse, you could be Rob Ford……………………………Or are you Rob Ford in disguise? Smoking Man, Smoking Crack?Nah couldn’t be your just eccentric and not stupid
……………

This tough crowed? seriously.?

Being Chirped by emasculated sweety wives is enjoyable and entertaining, they keep saying I’m on the ignore list but they keep reading…. Lmao

They never played hockey or football growing up. Can see it in their posts. Not to mention UCC.

Badminton was the sport of these refined humans. Not that there is anything wrong with badminton..

#188 Russian expat on 11.06.13 at 6:12 pm

I wonder what is happening to REITs… Any particular reason they are becoming more and more affordable, while housing is not?

Because there is no correlation. — Garth

#189 ILoveCharts on 11.06.13 at 6:24 pm

When you find a way of separating Canadian citizens of Asian heritage from HAM, I’ll be all ears. — Garth

The answer lies in ethnography, not statistics.

The statistics would be nice but they don’t exist.

Come live in my hood for a week and immerse yourself in the local culture. You can crash on my couch. It doesn’t take long to start to observe the differences between the two groups and to start to appreciate the magnitude of the impact of the HAM group.

So you don’t like your neighbors. Hardly an economic theorem. — Garth

#190 Ralph Cramdown on 11.06.13 at 6:25 pm

Garth, I really don’t know. I know that the real estate industry gets rich if they convince the locals that foreign demand will drive prices skyward (thus inducing local demand), while at the same time convincing government that it’s no biggie or a net positive. Some combination of foreign capital inflow and local speculative mania is driving prices FAR above fundamentals. Some portion, perhaps a majority of that local speculative mania is based on the foreign inflow story. I don’t know the split between the two, nor do the speculating maniacs, nor apparently does the industry or the governments.

Some combination of these factors have made the lower mainland a barren business wasteland. Young local professionals move away, senior execs from elsewhere can’t be lured in because of ridiculous housing costs, and all that remains are middle-aged priced in forever landowners griping about the prices at Whole Paycheque, young breadwinners who face a fifteen minute commute just to get TO the Port Mann bridge, and commercial landlords hoping to find tenants who can cover the property tax.

I wish I had more facts.

#191 Canadian Watchdog on 11.06.13 at 6:33 pm

#185 Ralph Cramdown

I consider provincial and federal governments’ refusal to study the issue to be a case of wilful blindness.

There is plenty of reports already. One just needs to know how to search and translate data found on local search engines, not Google.

Translated: Canada to buy a house to note 11 mistakes  Source: Link

#192 EXILED on 11.06.13 at 6:58 pm

Smoking Man: It’s a good thing you didn’t have any daughters!

#193 Russian expat on 11.06.13 at 6:58 pm

Because there is no correlation. — Garth

Similarly, there might be no correlation between the income and RE prices. In Moscow it takes an average law-abiding citizen to save 23 years to buy a condo (SFHs being a non-existent phenomenon), and mortgage rates are absurdly high (12-15%). The city is impossible to live in and has been recently ranked # 1 as having the worst traffic jams:
http://money.cnn.com/gallery/news/2013/11/06/global-traffic-congestion/index.html
Still, the demand is huge and even at $7000/sq.m. people prefer to invest&rent out rather than get higher returns with TN.UN, CAR.UN or DI.UN. A mystery to me…
PS Absolutely loved Lunenburg this summer. Hope the September fire behind Foodland did not do a lot of damage…

There are 11.5 million people in Moscow. — Garth

#194 jess on 11.06.13 at 7:14 pm

marketing mechanism

a plagerized “personality” lacking accountability and consistency is never good for the “brand” eh?

=====
the investor state

http://www.cbc.ca/news/business/eli-lilly-files-500m-nafta-suit-against-canada-over-drug-patents-1.1829854

http://www.theguardian.com/commentisfree/2013/nov/04/us-trade-deal-full-frontal-assault-on-democracy

#195 Country Girl on 11.06.13 at 7:28 pm

October sales up, prices down for Cambridge, ON.
Kitchener sales down 4%.

http://tinyurl.com/myaetow

#196 Smartalox on 11.06.13 at 7:38 pm

@Ralph Cramdown #185,

My family has done quite well by my Asian ex-pat landlord. I rent a comfortable townhouse at a Price to Rent ratio comfortably north of 22, and shovel what I would be making in mortgage payments into my investment portfolio instead – and I have been doing so for the past four years.

At this rate, I could stop saving in two years from now, and retire in a couple of decades with 80% of my current household income. And that’s without a private pension!

Nobody forced this young local to ‘leverage’ himself to buy property in an untenable market, or to sacrifice youth, health and sanity commuting from the hinterlands where dirt is cheap and housing cheaper.

#197 John on 11.06.13 at 7:48 pm

This tough crowed? seriously.?

Being Chirped by emasculated sweety wives is enjoyable and entertaining, they keep saying I’m on the ignore list but they keep reading…. Lmao

They never played hockey or football growing up. Can see it in their posts. Not to mention UCC.

Badminton was the sport of these refined humans. Not that there is anything wrong with badminton..

Ay ya the tough, manly internet poster. Mr Tough Guy. Played football, hockey, lacrosse…. all in his dreams….
Must be a new species that inhabits forums, they are everywhere… gotta laugh.

#198 Rural Rick on 11.06.13 at 7:52 pm

Funny how pissed people get at Smoking Man. Taking on SM just says you are new here and maybe some other stuff about you. Don’t worry it is possible to change and learn to wrap your head around another’s point of view.
I enjoy all the blog dogs but Smoking Man is a lighting rod for the newbies. Gets em goin every time.

#199 Shocked but not surprised on 11.06.13 at 7:54 pm

Wow, what a shock. Surprise, surprise. The intellectuals on this blog turn out to be closet racists. “Society is deteriorating all around us”? Huh? “Land-banking”? Huh? Reminds me of the times just not too long ago when the enslavement of certain races was justified by the fortunate classes with faux intellectualism.

Are there not any genuinely enlightened people on this blog? I’m shocked but not surprised.

#200 Freedom First on 11.06.13 at 8:21 pm

#162

Great Post! You nailed it! Looking after the things you mentioned, everything else falls into place. Healthy mind, healthy body, healthy choices. Majority of people are doing it backwards. Rob Ford is an excellent example, and the true fools/idiots, see nothing wrong with the mayor. I sincerely hope the best for Mayor Ford, as I know he is in a life and death situation for himself. I hope he gets the help he needs. I believe he is a good man, just suffering with an illness. There is lots of help available. Be well Mayor Ford.

#201 failuretolaunch on 11.06.13 at 8:29 pm

Having the kids come back home is like giving in to blackmail…thats why the boomers are shelling out…to keep the diapers from staying.

http://www.mybudget360.com/young-americans-living-at-home-recession-young-income-housing-stats/

#202 TnT on 11.06.13 at 8:41 pm

“It’s quite possible that land-banking by people who need a safe store of value outside mainland China is contributing to prices inflated by 20%, 30% or more.” You have proven yourself too astute on this blog to actually pen, or believe, a statement like that. — Garth

*********

Do you have a more accurate number?

Does anyone have any accurate numbers?

The fact that we can’t even talk about it without being labeled is just wrong….

Not even Smoking Man will touch this topic….

(chum bait just tossed)….

#203 TurnerNation on 11.06.13 at 8:43 pm

XRE.TO, TLT.US, even VIX being panned in favour of the indices. Don’t fight the (computer) tape.

#204 Bottoms_Up on 11.06.13 at 8:49 pm

#176 Canadian Watchdog on 11.06.13 at 4:27 pm
—————————————————-
Isn’t all this talk also applicable then to all the Canadians that bought real estate in Florida, Arizona, or Thailand? Are we driving up prices there and devastating the financial lives of the locals? Why is it different in Canada?

#205 KommyKim on 11.06.13 at 8:50 pm

RE: #160 HDJ on 11.06.13 at 2:01 pm Well, in my family we share and look after one another. Your muttering over parents who use some of their savings to help offspring with down-payments is quite baffling.

When parents give their adult kids money for cars, houses, etc, they do them a disservice by taking away their independence and replacing it with dependance.

#206 Alberta Ed on 11.06.13 at 8:50 pm

Not all Boomers’ kids are dumb enough to be Greater Fools. Ours have witnessed several of their friends and colleagues fall into the property trap, so they are sensibly renting, while investing for the long-term.

#207 Bottoms_Up on 11.06.13 at 8:51 pm

#174 ILoveCharts on 11.06.13 at 4:26 pm
———————————————
Garth has already proven (provided substantiated evidence) that offshore buyers represent somewhere around 3% of sales…hardly seems like a market driver to me.

#208 TakingResponsibility on 11.06.13 at 8:59 pm

Lots of Young Politicos in power these days.
They won’t stop at mayoral positions….lots of mayors now (no – not Ford) but they will move to provincial and federal office.
Boomers will not be the ones they are pandering towards.
Boomer Beware Times Ahead.

#209 TnT on 11.06.13 at 9:11 pm

198 Shocked but not surprised

Wow, what a shock. Surprise, surprise. The intellectuals on this blog turn out to be closet racists. “Society is deteriorating all around us”? Huh? “Land-banking”? Huh? Reminds me of the times just not too long ago when the enslavement of certain races was justified by the fortunate classes with faux intellectualism.

Are there not any genuinely enlightened people on this blog? I’m shocked but not surprised.

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

Again how Canadian of you to slam a valid question and add your own spin words to twist this into a racist issue.

How about add your own answer to the valid question?

What insight do you have besides cowering behind the verbiage?

#210 ILoveCharts on 11.06.13 at 9:11 pm

So you don’t like your neighbors. Hardly an economic theorem. — Garth

Here we go again. I think that some of my neighbors have purchased their property using money they earned abroad and you try to distort the statement to say I don’t like them which is one step away from trying to paint me as a racist I have nothing against these people. I’m not mad at these people. I’m happy to have them as my neighbors.

Accept the fact that it is possible for someone to think that HAM is distorting local real estate without actually harboring negative or hateful feelings about the HAM people.

If you want to keep making this point, does it mean that you hate Canadians?

Re #207
Garth has already proven (provided substantiated evidence) that offshore buyers represent somewhere around 3% of sales…hardly seems like a market driver to me.

There is a big difference between an offshore buyer and HAM. I’ve got a second couch if you’d like to crash here for a week as well.

HAM = Hot Asian Money. As in “Asia”, which (when I last checked) was offshore. HAM is an offensive term when you apply it to anyone who lives in your hood with equal citizenship who happens to be yellow. — Garth

#211 Herb on 11.06.13 at 9:27 pm

#199 Shocked but not surprised,

Are there not any genuinely enlightened people on this blog?

Why, of course! Just ask Smoking Man. There isn’t a prejudiced bone in his whole, limp, girly man body.

#212 jess on 11.06.13 at 9:30 pm

puerto rico tax free bonds? http://www.usatoday.com/story/money/markets/2013/11/06/puerto-rico-and-fund-investors/3455177/

#213 Daisy Mae on 11.06.13 at 9:35 pm

#143 Eddy: “Many people believe leaders shoud have morals, as well as principles. — Garth”

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

Morals and principles. Right. Politicians should be leading by example. Such a shame that so many have so few.

#214 Nemesis on 11.06.13 at 9:37 pm

…”…no proof it has cost the local their homes. That is hate talk.” — HonGarth

I take your point, AuldPol – I really do – but I would hardly characterize referencing the phenomenon of unregulated global transnational capital flows and their well documented, concomitant regional economic distortions as tantamount to HateTalk… Far from it.

The important thing to grasp is that this isn’t a specifically NakedOfficial thang… or a RussianOligarch or GreekShippingMagnate or even an ArabSheik thang.

It’s a just MoneyThang… A GlobalMoneyThang. A TotalGlobalFreedomOfMovement MoneyThang.

…and NationalOrigins, EthnoLinguistic and/or Cultural considerations are entirely peripheral to the underlying issues/actual problem set [unless you can’t decide whether to spend your reno-budget on a WokKitchen, LaneWayHousing or a VeryLargeGarage].

One of the things I’ve always enjoyed about the GreaterFool and its SaltyDogz is that Chauvinism&Bigotry are, for the most part, ‘conspicuous’ only by virtue of their absence.

And now, to address your earlier point, “But there is no proof it has cost the local their homes” – let’s forget about Canada for a few moments and ponder instead the mysterious disappearance of 600,000 Londoners from their former environs, shall we?…

[UK Telegraph] – Let’s talk about the exodus of 600,000 whites from London: It is not wrong to discuss the cultural changes that large-scale immigration can cause, such as ‘white flight’ from certain areas in London

…”Finally, politicians have admitted that to notice the scale of the immigration engineered by the last Labour government doesn’t make one racist. But neither is it wrong to discuss the cultural changes that large-scale immigration can cause. Six hundred thousand Londoners have left. They didn’t all sell ex-council houses in Barking, in order to purchase five-bedroom cliff-top villas in sunny Leigh-on-Sea.”…

http://www.telegraph.co.uk/news/uknews/immigration/9888310/Lets-talk-about-the-exodus-of-600000-whites-from-London.html

Graeme Archer’s brief OpEd above leaves a great deal unsaid… but mostly, it’s really about displacement by trans-national capital. About being ‘priced out’.

Which, as it happens, brings us neatly back to the BankOfMom… or, in the parlance of the London School Of Economics’ pub as, “Transformational Assets”…

TransformationalAssets [both tangible and intangible] not infrequently take the form of DynasticLegacies [see also CumulativeAdvantage/MatthewEffect] and, needless to say, afford their recipients an entrée to social situations, educational venues, professional opportunities and economic strata they would not likely otherwise be able to independently achieve.

Unfortunately, those who do not enjoy such largesse… but who are nevertheless compelled to compete with those who do – are at a distinct disadvantage.

And now for your parable…

Let’s have a look at two internally homogenous yet different cohorts… both of whom chose to engage in ‘risky behaviours’ far from home – albeit, with vastly different outcomes.

In no particular order….

http://bc.ctvnews.ca/13-young-drivers-caught-racing-luxury-cars-1.691489

http://therecord.blogs.com/canadian_casualties_in_af/

Did you spot the difference, SaltyDogz? And no, it wasn’t racial… linguistic or even cultural.

It’s just a MoneyThang. Nothing more.

#215 Smoking Man on 11.06.13 at 9:41 pm

#192 EXILED on 11.06.13 at 6:58 pm
Smoking Man: It’s a good thing you didn’t have any daughters!
…………………………………………..

Whats even better is Smoking Man is a fiction character who’s author has writers block, and is stuck getting his fix in the Gartho twilight zone. An author with extremely limited vocabulary, and dyslexia that can get a rise out of anyone.

That’s a story with in itself.

#216 Devore on 11.06.13 at 9:42 pm

#210 ILoveCharts

There is a big difference between an offshore buyer and HAM. I’ve got a second couch if you’d like to crash here for a week as well.

So if offshore is 3% of the purchases, and HAM is a subset of offshore, what is the problem exactly? A handful of sales a year?

You don’t like that your neighbors are “different”. You go out of your way to point that out. Yeah, they’re different. I was different too when I came to Canada. Maybe instead of observing them from your couch, you should go talk to them.

Every buyer “distorts” the market. If a family of… I dunno, gypsies bought and moved in next door, and then another one across the street, they would be distorting the “market” (is this a thinly veiled euphemism for “your” neighbourhood) as well, and be far more interesting to watch from your couch.

#217 Son of Ponzi on 11.06.13 at 10:45 pm

216 Devore.
Gypsies? I think they are Roma now.
1 week of PC indoctrination for you.

#218 meslippery on 11.07.13 at 3:11 am

Well in a recent post $450 000.00 was placed in the
hands of offspring to help with the down payment.
That amount @ 6 percent would throw off $27 000.00
a year and If one would move to a place where $13k
would give you a nice highrise apartment that would
leave 14k a year for food, beer party.
Freedom 22.
To nights blog reminds me of http://theeconomiccollapseblog.com/archives/which-america-do-you-live-in-21-hard-to-believe-facts-about-wealthy-america-and-poor-america

Yes I go there just for balance.
Your blog good as it is just went there tonight.(in comments)

I ask you Garth to read this. http://www.nytimes.com/books/first/e/ehrenreich-01nickel.html

#219 The Weekend Edition #5 | Urban Departures - Personal Finance Blog on 11.09.13 at 3:12 pm

[…] from a year ago. Who keeps buying at these inflated prices?! It must be those damn hipsters with drawing from the Bank of Mom and Dad. Since we bank with a more conventional institution that doesn’t give away hundreds of […]