Whacked

VETTE

You can buy or sell ETFs or stocks for ten bucks. But when it comes to your house, not so fast. Entry and exit costs for real estate are huge in Canada, and yet your BIL who brags about how much money he’s made on his (unsold) house never takes this into account. Big mistake.

Most people understand what it takes to sell. The standard realtor commission is 5% in Ontario, the Prairies, Quebec and the Maritimes, while in Alberta it’s 7% on the first $100,000 and 3% on the rest. BC is similar, but the amount above $100,000 is often 2.5%. So, if you sell for $1.25 million, you can pay $41,000 in Calgary or $75,000 in Toronto. Plus HST or GST. And unlike trading fees with financial assets, the commission forked over to sell your home is not tax-deductible.

Of course you can be cheap and hook up with Property Guys or ComFree. Or go through a regular broker, pay a flat fee, and get on MLS. This works well in some places (like Atlantic Canada), but in others, buyers figure if you’re too tight to pay commission you probably have an inflated view of your property and won’t negotiate reasonably. In any case FSBOs (for-sale-by-owner) have to price and show their own homes, navigate offers and conditions, and find a smart lawyer. Not for everyone, or even possible if you have a job and a life.

Buying can be even more treacherous, mostly because 99% if purchasers never think about anything other than the deposit cheque, the downpayment on closing day, CMHC’s premium (usually, and wrongly, added to the mortgage principal) and the few hundred bucks the bank and lawyer charge for appraisals, registration, fees and title insurance. In general (unless you like in Toronto), this amounts to about 2% of the value of the property, which is painful for first-time buyers.

Few people actually realize what a giant amount of tax is collected every time a property changes hands. Until you pay it.

This is called land or property transfer tax.  It blows. Except in Alberta, but then you have to live there.

Transfer tax is levied by governments for doing nothing. With the massive escalation in real estate values, it’s turned into a cash cow of bovinian wonder, netting provinces and municipalities billions of dollars without doing any work or providing any service. Needless to say, it’s added to real estate values themselves, just like commissions. And, as with those commissions, higher selling prices have not resulted in rates being adjusted lower to keep affordability constant. At the end of the day, realtors and politicians are of the same mind: soak the buyer.

Transfer taxes vary across the country. In the Maritimes it’s generally 1% of the value of the property being purchased. In BC the tax is 1% for the first $200,000 and 2% above $200,000. On an average Van bungalow selling for $1.25 million, that equals $23,000 due on closing. Ouch.

In contrast, Alberta’s a bargain. No transfer tax for these cowboys, just a title transfer fee levied on the value of the property and the mortgage placed upon it. It’s ridiculously cheap. To buy a $1.125 million property in the hills of Calgary with three hundred pot lights and a triple-car garage suitable for a black Escalade with balls and a souped-up sled, the fee is a paltry $285.

But pity the poor people of Toronto, who have a levy simply for being special. Ontario land transfer tax is gradated (0.5% below $55,000, then 1% to $250,000, 1.5% to $400,000 and 2% above that), plus a municipal 416 tax which essentially doubles the cost. So, a $1.25 million suburban palace in Mississauga generates $21,400 in tax, while Rob Ford gobbles up $42,200 when you close on a duplex in Cabbagetown.

Of course, the Ford Nation folks promised this tax would be rescinded during that enlightened administration, but the commitment seems to have vanished in a puff of smoke. No wonder. It’s raised $300 million, and produces 78% more now than when ushered in seven years ago.

Toronto realtors bitterly blame this tax for keeping the price of a SFH in 416 at the absurdly low level of $885,443, and have just launched a blitz to have it tossed. That includes a poll showing 69% of Vespa-riding, metrosexual homeowners don’t like it (duh), and a spiffy website advocating abolition. Of course, it’s all in vain. The tax, along with mushrooming housing values, is Toronto’s version of loaves-and-fishes. It ain’t going anywhere.

Blog dog Vince says that’s just fine with him: “We’d be better off as a society making the purchase of housing less affordable in the short to medium term because we’re already well past historical home-ownership levels of even the heady days in the United States.  It doesn’t make any sense and we’ll end up with the same immobility of labour when this all comes crumbling down that will ensure that a recovery will be protracted and painful.”

True enough, brother. But it’s spanking the wrong end of the deal. Transfer tax makes the purchaser pay for the capital gains the seller got tax-free. Only when politicians find the courage to tap windfall market profits will you feel change.

See? It’s a good thing I’m no longer in politics.

132 comments ↓

#1 View on 12.01.13 at 8:15 pm

That looks like fun!!!

#2 HD on 12.01.13 at 8:19 pm

I am black, an atheist, a feminist, French-Canadian, a public servant. I have tattoos, facial pricings and dreadlocks.

As you probably suspect, adversity is not unknown to me.
So haters, bring it on. I have heard and Seen.It.All.

It won’t matter.

Today, I reached a milestone.

My net worth is now $100K in a liquid, balanced diversified portfolio.

No real estate, no debt. No too shabby for a 29 year old guy ;)

I wish to take this time to thank Garth for this platform.

This blog enabled me to question the conventional wisdom and revisit/challenge certain ideas I held myself. It would have been very hard to make it without it.

Next stop, a 7-figure portfolio by 40th birthday.
Ambitious but doable.

Now shout out to some blog dawgs:

Devore, Old man, Derek R, Nemesis, TO Bubble Boy, The American, Freedom First, Retired Boomer, Herb, Toronto_CA, Shawn, Ronaldo and many more. Thank you for your contribution.

Science Monkey, Frank le skank; Hang in there guys ;)

Heck, even Smoking Man is onto something! Thx bud.

Shout out to the blog bitches as well!:

Cici, GTA Gal, Vangrl, DM in C, Chicken Little, Beach Girl, Living within your means, Daisy Mae and the like.

I like reading about your perspective on things gals. Keep posting. We need more of you guys :)

Ralph Cramdown,
Dude, your posts are legendary. You are bang on 98% of the time. If we ever meet, beer’s on me. Honest.

Best,

HD

#3 not 1st on 12.01.13 at 8:25 pm

Garth, labour won’t need to be mobile in the future. 3D printers will be whizzing in every bodies basement making all the junk we ship from China today.

#4 Habbit on 12.01.13 at 8:30 pm

Thanks Garth. You’re on fire lately. Just awesome posts. Can’t thank you enough. So if I buy a property here in the frozen wasteland of Saskatchewan I pay 5% GST? thank you for taking the time.

#5 totalinvestor.com on 12.01.13 at 8:30 pm

Why Canadian homes are more unaffordable than ever

http://totalinvestor.blogspot.ca/2013/11/why-canadian-homes-are-more.html

#6 Alberta Ed on 12.01.13 at 8:32 pm

Governments invariably become addicted to tax revenues, even Alberta. Land transfer taxes are just another, indefensible way of screwing the taxpayer. It’s amazing voters don’t rise up and boot out those responsible.

#7 Smoking Man on 12.01.13 at 8:32 pm

Just discovered the next big thing on line.

Bitstrips….. Remember that one.

#8 FTP - First Time Poster on 12.01.13 at 8:37 pm

Only when politicians find the courage to tap windfall market profits will you feel change. – Garth

Sorry Garth, while I agree with most of what you state regarding re: this last statement is pure and utter BS. The problem with career politicians is:

a) They figure they’re smarter than everyone else, hence the need for them to “govern”;

b) That the solution to every problem is government.

The fact is that we should never have career politicians nor should we have career high level public servants. There should be a cap on the rotating door from public service to private industry as it becomes a revolving door of self entitlement. Two terms should be the limit for all – then that silver spooned ass Trudeau would have to get something that resembled a real job;

Second, the government in all their infinite wisdom are the original reason that the orgiastic RE frenzy took hold in the first place – stupidly low interest rates, 40yr amortizations, zero down, lax lending, etc etc.

Now, your solution is MORE government – BULLSHIT! Stop the socialist thinking that government can solve all the worlds problems, that everyone is required to pay “their fair share” and that everyone is also entitled to “their fair share” – meaning a piece of everyone else’s pie.

All that has taken place is the reason cities in the US are declaring bankruptcy – the great socialist experiment is an abject failure and the end is nigh for those freeloaders who think its a never ending free ride.

Where did I advocate more government? The tax, I said, is in the wrong place. — Garth

#9 Forzudo on 12.01.13 at 8:38 pm

At least you only pay the land transfer tax(es) once (per house / condo); annual property taxes come whether your income is high or low.

Every year.

#10 buysilvernow on 12.01.13 at 8:48 pm

Yo HD, big deal. Let me know if u wanna rent any of my condos. I had a million thanks to real estate and precious metals by 29. Take that diversified brother.
You need balls and debt to make it big time brother. What Garth pitches makes his type rich… remember brother no matter what Garthy says… real estate is a need and precious metals are true historically proven forms of money. Congrats on youir 100k…enjoy it.
But u know whats really cool… 1 million and having others pay ur mortgage…that’s real cool

#11 Smoking Man's Spellchecker on 12.01.13 at 8:55 pm

#7 Smoking Man on 12.01.13 at 8:32 pm Just discovered the next big thing on line.

Bitstrips….. Remember that one.

++++++++++++++++++++++++++++++++++

Actually, he meant to say “Zip-Strips”.

SM woke up in the back of a cop car and found them on his wrists, but that, as they say, is another story.

#12 Casual Observer on 12.01.13 at 9:00 pm

…it’s spanking the wrong end of the deal. Transfer tax makes the purchaser pay for the capital gains the seller got tax-free. Only when politicians find the courage to tap windfall market profits will you feel change.

Here’s my suggestion from a couple of weeks ago.

http://www.greaterfool.ca/2013/11/18/ambition/#comment-271745

It refers to phasing in some form of capital gains tax on principal residences.

If this were to replace the transfer tax would it be close to what you’re advocating, Garth?

#13 Cow Man on 12.01.13 at 9:02 pm

Sir Garth:
The only way our governments can get out of the financial free fall we are in is, as you suggest, place a capital gains tax on principle residences. Thank Dalton and Stephen for multiplying the debt levels. The feds also drove up housing prices with the near 0 interest rate levels. Pay back will be brutal. Bring on the capital gains on residences just like it exists on farms.

#14 Sinful Man on 12.01.13 at 9:02 pm

So Garth, mi amigo, “… but pity the poor people of Toronto, who have a levy simply for being special. Ontario land transfer tax is gradated (0.5% below $55,000, then 1% to $250,000, 1.5% to $400,000 and 2% above that), plus a municipal 416 tax which essentially doubles the cost. So, a $1.25 million suburban palace in Mississauga generates $21,400 in tax, while Rob Ford gobbles up $42,200 when you close on a duplex in Cabbagetown.”

A previous sentence mentioned Alberta ” … but ya gotta live there … ”

Hmm …

I find it’s best to irritate everyone equally. — Garth

#15 Rexx Rock on 12.01.13 at 9:08 pm

The goverment should raise even more taxes.The Canadian people are stupid spineless jellyfish.The people would only rise up if taxes exceeded say over 150%.Not 100% because most airefares are about that.Its sad Canadians are so passive,its a disgrace.I guess its part of our culture of always thinking the goverment is right.

#16 Retired Boomer - WI on 12.01.13 at 9:14 pm

Hey, HD. Congrats on 100K at 29 with NO DEBT!!

I’m impressed, because you at 29 are WAY ahead of where I was at 29. Just stay away from the DEBT, and in time you can use it to buy a place if you wish, when owning becomes affordable. While some currently don’t believe that will ever happen, trust this old geezer, it WILL happen but not tomorrow, or next Tuesday.
Invest a fair portion of your earnings, keep that emergency fund pumped, and don’t listen to the dudes who are selling get rich quick malarky.

I believe in crock pots, not so much in microwaves to build wealth slowly – it tends to last better.

And yes…you can have the renter pay off your mortgage, when you can buy the place at a GOOD price….wait….it is moving closer….(assuming you WANT to own).

Best in the Future!

#17 Bob Rice on 12.01.13 at 9:16 pm

Used Comfree myself.. 2.5% went to the agent and we paid $800 for the service… what pissed me off was that the buyer admitted that she’d been looking at the property for weeks… she could have picked up the phone and we could have made a deal w/o that agent, who quite frankly, didn’t do a whole lot… got 99% of asking then had to fork over thousands to the agent.

Still, we did better than a two-agent scenario.

Sale happened in T.O. by the way

#18 Mr. Reality on 12.01.13 at 9:22 pm

By this time next year the word deflation will be used as readily as “crack mayo”. Only deflation makes people like math, because they need it to realized how screwed they are. This is something that many homeowners do not have nowadays.

Math, use it. It prevents stupid decisions…….duh

Mr. R.

#19 Nemesis on 12.01.13 at 9:29 pm

“See? It’s a good thing I’m no longer in politics.” – HonGT

#20 TheCatFoodLady on 12.01.13 at 9:29 pm

HD – well done. My oldest is only 2 years younger than you are & has almost reached your milestone. I have no doubt you run into more than your share of haters & I hope you just smile when you hear the crap tossed your way.

There is an incredible amount of smarts here to be mined & more than a few posters have opened my mind to ideas & concepts of which I had no clue. It doesn’t matter that many of them aren’t applicable to me. We all find ourselves in different life & financial situations but I’ve yet to see anyone who follows the fundamentals go wrong.

Recently, I’ve seen comments from posters despairing they didn’t have a lot of money with which to start investing. So start small. If your personal starting point is too smart to really diversify, so that over time – as little time as possible but no plan has to be perfect right from the get go. Over time as your life situations change, you’ll be adapting your goals anyway, as well as changing the steps needed to get there.

Anybody reading this column mired in debt & unsure about ever getting out, never mind being in a position to invest, start with eliminating that. We may joke about her here as ‘The Jar Lady’ but if you can stomach the discipline, her approach works to eliminate debt. If it’s too tough to stomach, take the principles & stretch out the time… if your dare.

Housing – we all have different opinions. We all have different housing needs. It doesn’t really matter if you own, rent or choose to live in an abandoned sewer pipeline – just make sure you totally account for the costs involved in your unique choice. Don’t get suckered into a tricked out man cave, blinged out kitchens or size for the sake of size.

We live in a world where change is one of the few constants. We also live in a world where nothing is perfect; no political system can make sure everyone thrives. So work with what we have in your own financial life & work politically to make the changes you want to see made.

Young people, old people, everybody in between. Stop whining. If what you’re doing isn’t working, do it differently. If you can’t learn from your own mistakes, never mind those of others, you’re screwed.

Many of the old occupations no longer exist or are dying quickly. New ones are being created from the minds remaining open. Don’t argue bitterly against outsourcing – embrace it. A young couple down the hall are banking more bills than most their age. They’ve outsourced themselves as a receptionist firm. The 3 gigs they have pay the equivalent of 2 full time jobs with benefits. On the side, their other corporation does the books for 2 of those 3 firms & 3 distinct ones. They work from home – no transportation or associated costs.

Heck – we’ve got mortgage brokers, insurance brokers, freight brokers – become an outsourcing broker.

Only one’s imagination limits the potential in a changing economy & boy, is ours changing.

#21 Corban on 12.01.13 at 9:30 pm

And speaking of Alberta; blizzard warning tonight, and lows of -30 this week. It really is different here, but not in a good way. For that $.75 mill infill in Marda Loop, i could retire in Central/South America or SE Asia and never have to work again. Or deal with -30 and blizzards again…

#22 Dan on 12.01.13 at 9:30 pm

Where did I advocate more government? The tax, I said, is in the wrong place. — Garth

Maybe it’s just wrong?

#23 Brian Ripley on 12.01.13 at 9:35 pm

#3 not 1st “…labour won’t need to be mobile in the future.”

I believe that will be in the very distant future (unless government agrees to pay for more unemployed). As it is now in Canada, the big move is to Alberta. It’s cheaper as Garth points out and the earnings are 22% above the national trend.

There are other forces at work as well that will make labour mobility a must if labour wants to get a more equitable portio of the pie. One very big force is that Government continues to hand over the regulatory oversight to the international corporate sector. The latest but not yet manifest “trade” agreement is TPP (Trans Pacific Partnership 2010) which aims to “liberalise the economies of the Asia-Pacific”. You have not heard about it because they keep their meetings secret except for what Wikileaks has published.

I have a new chart mashup showing the U.S. Beveridge Curve and the change in umemployment since 2000 for both Canada and the U.S. here:
http://www.chpc.biz/2/post/2013/11/beveridge-curve.html

#24 Ralph Cramdown on 12.01.13 at 9:35 pm

As much as the idealist in me wishes taxes were distributed more equitably (graduated, so somewhere between fees for services rendered and from each according to ability, to each according to need), the free rider in me likes that my government services are being somewhat subsidized by people who buy and sell cars and houses too often, gamblers and boozers, and people who don’t save much money.

#25 Raven on 12.01.13 at 9:35 pm

Forgotten in the Cultural Vortex of Real Estate Amnesia

Funny how time moves in one direction and memory in another?

People’s concerns about foreigners of Asian decent comming to our shores to purchase R.E are unfounded.
Investing their profits, from “stuff” they sell us, back into Canada is a good thing. These profits repatriated, through purchases of overvalued R.E. usually all cash, don’t even require CMHC underwriting.

Our banks love fresh foreign previously unlevered Capitol infusions from property sales. This liquidity along with fractional reserve lending will allow the creation of money in many multiples to be re-issued as mortgages all well insured by the best garentor in the land.

Foreign property sales should be added to our export totals as it would require considerably more gross sales of exports profit to equal the Capitol infusion from one Richmond BC. McMansion cash sale to a foreigner.
Could this undocumented foreign liquidity dump be corrupting our true rate of inflation?

Yes the psychological fear that their purchases are squeezing out Canadians and inflating our market are apparent, but most unbiased studies done revealed that their presence to be minor overall.

Like their Asian counterparts before them ( the Japanese, who created their own “Ethnoburbs” ) fell for the same montra as the Canadians and Americans. R.E. never goes down! Buy now!

Even with Chinese Capitol Controls, monies escape Red China, probably never to be able to return. Making this the only true difference from the Japanese experience of the 80’s. This true “Capitol Flight” not opportunistic investment is occurring mostly on the west coast, from Hongcouver to ShangDiego.

Having purchased many properties from my Japanese friends in the early nineties ( usually at half of what they paid in the late eighties). By the end of 2012 I sold those same properties to my Chinese friends. I love all my Asian friends, and you should too!

” We are wise not by the recollection of our past, but by the responsibility for our future…..”

#26 Vlad the Inhaler on 12.01.13 at 9:36 pm

So what is Israel going to call it’s park for homeless pigeons?

“The Steven Harper Chicken Hawk Sanctuary”

#27 Nemesis on 12.01.13 at 9:36 pm

FatFingerTruncation… CONT.

“He’s [GT] not exactly a Realtors’™ BestFriend… a Wild&Unruly, Truly… BadDog!’

http://youtu.be/_FLOFPrtYYM

‘NoMorePolitics’ BonusZen:

http://youtu.be/_FLOFPrtYYM

[Well… sort of.]

#28 Babblemaster on 12.01.13 at 9:40 pm

All most people care about is the monthly carrying costs. If they reduce the land transfer tax, then the selling price will just go higher. If they transfer it to the seller, same effect.

#29 Shawn on 12.01.13 at 9:41 pm

Thanks HD and congratulations. $100k liquid net worth at 29 is doing very well.

Others may sniff at it but you are doing well. There will always be some doing better and many doing worse.

At 29 I moved to Alberta from the Maritimes with plenty of education, a good job, some student loans and a net worth of right around zero. That was 24 years ago and things have progressed well for me.

This year my portfolio has “made” over twice what I earn. Compounding does work after a while. Portfolios do not tend to make money every year, but over time things can work out very nicely.

With your early start, things should go well for you.

#30 P Hawkins on 12.01.13 at 9:51 pm

The CMHC is useful and abused. If the amount charged – the fee- was payable up front like the land transfer tax and not added to the loan amount, I believe there would be a huge change in buying behaviour.

I was a realtor for 10 years, the deals that happen as soon as cmhc is purchased is shocking. And since the buyer can add it to the mortgage amount- in BC- it is of no concern to the buyer.

#31 depressedabouthousing on 12.01.13 at 9:51 pm

Interest rates won’t go up for probably 10 years. I probably should have bought where I am. If they have courage they would not allow people to borrow on equity of their home. That would stop speculation and debt

#32 omg on 12.01.13 at 9:51 pm

#4 Habbit – Google it to be sure, but I do not think you pay any property purchase tax in Sask. And GST is just on new construction properties but I believe there is some type of a credit for input costs of the property.

People forget that Sask. is now a have province with resource and agricultural (not to mention construction) revenues pouring in, allowing the government to keep taxes low(er).

#33 espressobob on 12.01.13 at 9:52 pm

#10 buysilvernow

Perhaps with your superior knowledge you might forecast the future for us dumb investors. I somehow doubt that!

Maybe better to crawl back under that rock from which you came and ‘make believe’ somewhere else.

#34 Nemesis on 12.01.13 at 9:58 pm

@HD/#2…

TeeHee!…

You do realize, HD – that under the new ManagementDirectives… that if you were somehow also able to add to your CV, “VisibleDisability” as well as a… a… a…

[Sorry, I just can’t bring myself to type that word here – let’s just say that people who have a “******” typically frequent FilopinoKasbahs for CosmeticTopiary]

… that I could probably elevate your PayGrade more than a NotchOrTwo… [and collect a handsome FindersFee!]… How’s your Math and Languages?

JustTeasing. WellDone!

#35 Nemesis on 12.01.13 at 10:08 pm

@Ralph/#24…

…”…the free rider in me likes that my government services are being somewhat subsidized by people who buy and sell cars and houses too often, gamblers and boozers, and people who don’t save much money.”…

Concision, OldChap. If you want to say Realtor™… just say, “Realtor™”.

EasyPeasy.

#36 DM in C on 12.01.13 at 10:10 pm

HD:

Well done! At 29 we had two toddlers, sold our first house and were on our way to buying our second — which bankrupted us (LONG story). That was 15 years ago, and we have rebuilt our finances, thank goodness. You are far ahead of the game.

Went looking at cars yesterday. Both our vehicles are nearing EOL. One has 240k (a 2001) and the other (a 2002 Dodge with looming transmission failure). When did financing a car switch from 5 years to 7? Holy moly…. 84 months? Our baby would be done university by then, and we’d JUST be finishing paying it off. At 0% interest though, it’s tempting. Better their money than ours.

#37 Dwight on 12.01.13 at 10:11 pm

Garth. Can you devote some space about which ETF’s you particularly like. Many readers would be interested I’m sure.

#38 Smoking Mam on 12.01.13 at 10:12 pm

HD

With that discription.
I am black, an atheist, a feminist, French-Canadian, a public servant. I have tattoos, facial pricings and dreadlocks.

You should consider a longer handle than HD

Like.
Dark godless girly man with a kick ass pension and a wired accent.

#39 Nemesis on 12.01.13 at 10:18 pm

Erratum: Nem#27 BordeauxFatFinger 2ndLink CutPasteFailure:

http://youtu.be/5Q84oP5JilU

#40 Dan on 12.01.13 at 10:23 pm

Well for the good news, at least the real sports car was not damaged.

#41 svender plum on 12.01.13 at 10:24 pm

I agree that houses are generally a poor investment unless you have dumb luck and happen to buy at the right time. I think after lots of renovations we only made $50K off our first house. But we have small children so you need some measure of stability for them, a place to play, a decent school etc. As an investment I wouldn’t bother, as a place to raise kids, its a necessary evil.

One thing that does bother me about it though is it adds so much noise to the reward signal. A relative of mine bought a semi in The Beaches in Toronto in the early 90’s (I think) for about $300K and knowing them I don’t think they did with with any kind of eye of investing. But they just got lucky so they are probably millionaires now. On the other hand a doctor fresh out of med school would probably be no better off. Too random for my tastes.

#42 LH on 12.01.13 at 10:24 pm

Land transfer tax hits flippers hardest

Another reason to buy and hold

LH

#43 Bobby on 12.01.13 at 10:35 pm

Just been out looking at units here in Victoria. Found some units that have been on the market for 5 years. Still supposedly new, as they have never been sold or lived in.
Agent says he expects they will sell like hot cakes.
Go figure.

#44 Tiger on 12.01.13 at 10:47 pm

34 nemesis !
Sorry I’m going to write that word!
You are stupid, nemesis!!!
How is re going for ya!!!

#45 Victor V on 12.01.13 at 10:48 pm

In high-cost Vancouver, the trick is getting strangers to pay the mortgage

http://www.theglobeandmail.com/life/home-and-garden/real-estate/in-high-cost-vancouver-the-trick-is-getting-strangers-to-pay-the-rent/article15676047/

#46 cynically on 12.01.13 at 10:55 pm

#6 Alberta Ed – It’s NOT amazing voters don’t rise up and boot out the politicians responsible for screwing the tax payer with all the RE related taxes, they don’t keep their political promises either but how they get away with it all — you are CANADIAN!

#47 Tiger on 12.01.13 at 10:56 pm

New construction of future hi rise, rebar is rusting, not rite, in van alone I see it every wear! Even bossa developments , it’s the foundation of the building, wtf!

#48 kc on 12.01.13 at 11:04 pm

#19 Nemesis on 12.01.13 at 9:29 pm

Hey NEM…

is vreaa finished? I keep going back looking to see if any new titles are added and there isn’t anything for months now.

I thought the site owners were taking the summer off and reopening back in the fall. what has happened to it? and any word if someone is going to redo it? i miss the blast radius you were doing way back.

cheers

#49 Infused with Opiates on 12.01.13 at 11:04 pm

12 Casual O – Lottery winnings have already been taxed once as they come from the proceeds of ticket purchases
which are paid for after tax.

#50 recharts on 12.01.13 at 11:05 pm

Hre we go again

http://www.zerohedge.com/news/2013-12-01/uk-royal-mint-working-plans-issue-gold-backed-physical-bitcoins

Governments getting worried about the adoption of bitcoin. Now they seem inclined to take into consideration that the people are not going to just play along with their endless money printing.

Of course Garth is going to say that this is not going to fly.

Of course. Fool’s gold. Gold’s fools. — Garth

#51 Sleepless in Victoria on 12.01.13 at 11:09 pm

#43 Bobby:

Just curious, which building would that be? The condo at the corner of Jacklin and Orono in Langford sort of fits that description..

#52 Nemesis on 12.01.13 at 11:12 pm

For HD:

What was that JohnnyNash said?…

Yep. That’s right: “I can see clearly now…”

http://youtu.be/99wmkDOwd7c

[NoteToSaltyDogz: Yes… that was, actually, a rare OffScreen performance of the ZipStripped SmokingMan – in the trunk a Trooper’sInterceptor… AccomplishedWastrels and other ImperialPedantics with nothing better to do while British PM ‘Chillax’ is in Beijing will appreciate the following translation: “…in the boot”.]

#53 Son of Ponzi on 12.01.13 at 11:17 pm

Amazon will deliver parcels via drones.
Payment made via bit coins.

http://ca.finance.yahoo.com/news/amazon-testing-delivery-drones-ceo-bezos-says-015131530–finance.html;_ylc=X3oDMTEwdDlpZzMxBF9TAzExODQ1NTAwMDgEcG9zAzEEc2VjA211c3RyZWFk

#54 45north on 12.01.13 at 11:23 pm

Brian Ripley from your link: The longer the unemployed remain so, the less likely they will fit the demands of the employer; hence the question “Are you qualified?”.

someone laid off from a fairly decent job needs to find something similar fast. qualifications decay. computer programming skills such as sql or perl or networking have a half life of ten years. In ten years that skill is still relevant but it is half as useful as when it was fully exercised. Mobility is très important. Land transfer taxes restrict mobility.

#55 recharts on 12.01.13 at 11:28 pm

OK Garth, enough with upsetting you with Bitcoin stories.
Here is one to make you smile:

http://www.vancouverzerodown.com/

#56 not 1st on 12.01.13 at 11:43 pm

3D printing and drones…its coming and our unskilled workforce won’t know what hit them.

50% unemployment on its way…

http://www.businessinsider.com/jeff-bezos-60-minutes-surprise-2013-12

#57 lolwat on 12.01.13 at 11:50 pm

Re: Calgary
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=A103600001&f=M
+
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS1&f=M
+
http://www.albertaoilmagazine.com/2013/11/why-junior-companies-still-struggle-to-find-cash/
+
http://www.albertaoilmagazine.com/2013/11/tight-capital-market-juniors-earn-investor-trust/
+
http://www.calgaryherald.com/business/energy-resources/Yedlin+hold+your+breath+oilpatch+renewal/9212487/story.html
+
http://calgary.ctvnews.ca/layoffs-begin-at-encana-1.1555317
=Bullish on 30-year mortgages and houses in Auburn Bay.

#58 Steven on 12.01.13 at 11:54 pm

It doesn’t make any sense and we’ll end up with the same immobility of labour when this all comes crumbling down that will ensure that a recovery will be protracted and painfull.

Immobility of labor? With wage rates immobile at or near minimum wage it is a total waste of time and money for workers to move around the country chasing jobs that pay 15 or 20 cents on the dollar relative to what is needed to buy a place to live near a job. To canadians an economic recovery seems to be defined as keeping wage rates steady and depressed while real estate prices soar in to orbit. That is not a recovery, that is financial buggery plain and simple. As long as it continues there will be no recovery.

#59 Freedom First on 12.02.13 at 12:17 am

Love the post Garth! Tax, Tax, and more Tax. Add on paying Interest, Interest, and more Interest. Average Canadian: “Tax and Debt slave.”

Doesn’t have to be that way, and don’t get me wrong, I have always paid the taxes due, and owe nobody nothing from my past. As a clear conscience for me is a necessary and precious commodity. However, Garth, in his free blog has outlined clearly over the years on how to work everything financial in your life to maximize profit, net worth, and keep interest and taxes paid to the minimum, while also avoiding financial armageddon at the same time. If a person was to read every post on
Garth’s blog from the beginning of time, the time spent would be financially well rewarded, and at no cost. Also, the comment section would have far less stupid questions, or questions that Garth has already answered. I do believe, that somewhere along the way, the masses have lost the ability to “Think”. I have to admit, that Smoking Man’s criticism of the education system has 100% merit, most unfortunately. And, like mentioned on previous posts, and Garth’s post as well, while there is the people who are being bled dry by the politicians, RE profiteers, etc., the people who can think for themselves, and take the time to research for themselves, always profit from the system. Most people call them the “Rich”, and, the “Rich” come from all walks of life. Could be your neighbor, as many “Rich” people value their financial privacy, and for good reason.

#60 Andrew Woburn on 12.02.13 at 12:32 am

#13 Cow Man on 12.01.13 at 9:02 pm

place a capital gains tax on principle residences.
===================================

Be careful what you wish for. The tax on capital gains makes no allowance for inflation. If you bought a property 30 years ago for $100K and it has simply inflated to $200K today without any real gain in relative economic value, when you sell it you look like you are gaining $100K but you are only getting your own money back in reality. Yet you will pay tax on that inflationary gain which actually eats into your original capital. Back when low risk investments were earning 10%, about 3% was a real return on investment and the other 7% was to compensate for the effective loss of capital through inflation. Yet you still had to pay tax on that 7% which often meant a negative return after tax and inflation.

The principal residence exemption is about the only way Canadians have to keep the government from unfairly eroding their base capital in inflationary times.

#61 Casual Observer on 12.02.13 at 12:34 am

#49 Infused with Opiates
Lottery winnings have already been taxed once as they come from the proceeds of ticket purchases
which are paid for after tax.

When investments are purchased with after tax dollars, the gains are still taxed – why should lottery winnings be any different?

#62 Bob Rice on 12.02.13 at 12:36 am

Unrelated to tonight’s discussion but since Garth has blogged on the TFSA an its merits (don’t we all love it?), I had to post something I came across on another forum… And God I hope the commie pinko NDP never come into power… destroyers of wealth… this chick makes want to hurl..

http://rabble.ca/columnists/2011/05/tfsa-attack-our-tax-system

She lost. — Garth

#63 Cici on 12.02.13 at 12:55 am

#2 HD

Next stop, a 7-figure portfolio by 40th birthday.
_____________________________________________

Definitely doable…and you’re well on your way. Keep it up :-)

And we like your posts too :-)

#64 fisheman on 12.02.13 at 1:03 am

#47 Hey Tiger, a little rusted rebar? The best one I heard was when they were up to the third floor of parking in the brand new Van library before an engineer noticed that they weren’t using painted rebar, duhh, its the green stuff, like duh in the plans. How about the thousands of windows that go in upside down, duh, the bottom side has holes for condensation to run out.

#65 Infused with Opiates on 12.02.13 at 1:15 am

63 Casual O – a good question, but their is no gain, no new money, just money being re-distributed. If it is
argued there is a gain, then there is(are) also a
corresponding loss(es). Much the same principle with
insurance.

I think they tax winnings in the US. Kinda strange given their attitude towards taxes.

#66 Joe on 12.02.13 at 1:19 am

My Dentist from Iran shared a funny story with me, a realtor friend of his was showing an Iranian buyer an apartment building and telling him what the apartments had a view, 1-2-3 bedrooms…
The Iranian said what are you talking about, I want to buy the entire building.

Another interesting story about a 30+ story building going up in Vancouver.
Every 1 bedroom was bought by a Chinese investor.

Another observation, Edgemont Village in North Van has many of the businesses being bought up by new immigrants.

Also the same in Capiliano Mall North Van as well as a large majority of shops in West Vans Park Royal.

It’s not hard to get into Canada if you have money.
It doesn’t matter where you are from.
It’s the golden rule.
He who has the gold rules.

Japan’s getting radiated.
The Middle Easts a time bomb.
China is making the most millionaires a day on the planet.
Many parts of Europe are a disaster.
Lots of dirty money looking for a place to roost.

Canada’s a very desirable destination.

#67 Dominion on 12.02.13 at 1:37 am

Garth, how does this equate with taxes and transfer fees in a typical US city? Are we, as a nation, being gouged again for the fun of being Canadian?

#68 James on 12.02.13 at 2:01 am

Who said you must sell? Buy and hold the property for long term gain.

#69 Devore on 12.02.13 at 2:09 am

#6 Alberta Ed

Governments invariably become addicted to tax revenues, even Alberta.

Governments are “addicted” to taxes because a) it’s their primary source of revenue, and b) that’s how they pay for programs. They don’t raise taxes and then come up with ways to spend the money, they raise taxes to pay for things needed, demanded and promised. Taxes cut in one place either pop up somewhere else, or something gets cut, and of course everyone wants the other guy’s holy cow of a wasteful program cut.

Land transfer taxes are just another, indefensible way of screwing the taxpayer. It’s amazing voters don’t rise up and boot out those responsible.

It is my experience the people crying about taxes are first in line complaining about pot holes, hospital waits and user fees, once the $20 extra on their paycheck from a recent tax cut is spent.

#70 Devore on 12.02.13 at 2:12 am

#8 FTP – First Time Poster

The fact is that we should never have career politicians nor should we have career high level public servants.

That may be so. The ones seeking power are usually least deserving of it.

There should be a cap on the rotating door from public service to private industry as it becomes a revolving door of self entitlement. Two terms should be the limit for all

So the solution to the public-private back-scratching revolving door is to… force everyone to rotate out? I think you misplaced your thinking cap today.

#71 Casual Observer on 12.02.13 at 2:17 am

#60 Andrew Woburn
The principal residence exemption is about the only way Canadians have to keep the government from unfairly eroding their base capital in inflationary times.

To be fair, all investors should be able to deduct inflation from investment returns and only pay tax on the “real” rate of interest or capital gain, but I doubt that would ever happen as the gov’t just couldn’t afford it.

The closest we get to this is the TFSA.

#72 Fortune500 on 12.02.13 at 2:41 am

Well done HD, you are way ahead of the median net worth range for people your age! As many have pointed out, there will be those that are far ahead, and those that are far behind, but six figures before 30 without debt is not even close to where most young Canadians are. I am a few years older than you and I have been pleasantly surprised by how things start to snowball from here on (in a positive way). Keep on keeping on.

#73 recharts on 12.02.13 at 7:06 am

So Garth,this post is all about RE related taxes, right?
Are you against them?
Are you saying that they are not fair?
Are you saying that they should not be paid?
When I said that I liked Bitcoins because you can avoid paying taxes you called me a tax evader right?

You are using a double measure here.

Learn to read. I said taxing purchases instead of sales is bad policy. — Garth

#74 rosie "moving forward" in the knowledge that, "this won't end well" on 12.02.13 at 8:49 am

Looks like a winner, depending on the eviction regulations the landlord can access. Cash flow is paramount so no deadbeats allowed.

http://www.motherjones.com/politics/2013/11/wall-street-buying-foreclosed-homes

#75 Just some guy on 12.02.13 at 9:28 am

Reference Comment #2 – HD

Congratulations HD. For some, Jesus saves but clearly you have decided to take matters into your own hands.

If I may, I have two suggestions.

First, your forecast for over 1,000,000 dollars of net worth by age 40 would require a contribution of about 5000 dollars per month at a return rate of 7.5 percent. That may or may not be a stretch but if this is indeed too high, you may want to consider that your portfolio, with even modest contributions can grow to seven figures by your late 50s or early 60s.

Second, you may also want to consider the effect of a public service pension for its contributions to your net worth. Assuming that the public service does not get whacked, you may find that you may want to remain in the public service so that you qualify for the significant contributions that complement your own savings. And of course, use your TFSA and RRSP accounts to the maximum extent that you can although I am not the one to advise you as to the weightings. For that, you would need professional advice.

In a nutshell, even if you stopped contributing to your current portfolio and just let it appreciate with sound management (as espoused by Garth Turner), you will still have close to half a million dollars in about 20 to 25 years. And, conversely, I recommend you avoid those schemes that may promote rapid gains. Clearly, you do not want to sacrifice long term security for short term high risk. You have to consider that once you have wealth, and people know about it, you become a target.

#76 jess on 12.02.13 at 9:49 am

53 Son of Ponzi

rebranded… drone is so yesterday ;^>
unmanned aerial vehicle
http://townhall.com/tipsheet/kevinglass/2013/03/24/drone-lobbyist-objects-to-word-drone-n1547493

http://www.theverge.com/2013/11/29/5156808/smartphone-controlled-paper-plane

===============
The scanner tracked Mr Littler’s picking rate and sent his performance to managers. If it was too low, he was told he could face disciplinary action.
http://www.bbc.co.uk/news/business-25034598

http://www.theguardian.com/business/2013/jul/19/oecd-tax-reform-proposals-amazon

Tax structures used by Amazon to route billions of pounds from sales to British customers through Luxembourg, paying negligible UK tax, are among a series of international loopholes earmarked for closure in a programme of reforms backed by G20 nations.

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

first American citizen to be arrested with the help of a Predator surveillance drone.

The bizarre case started when six cows wandered onto Rodney Brossart’s 3,000 acre farm. Brossart, an alleged anti-government “sovereignist,” believed he should have been able to keep the cows, so he and two family members chased police off his land with high powered rifles.

Villasenor points to two Supreme Court cases—California v. Ciraolo in 1986 and Florida v. Riley in 1989— that allow law enforcement to use “public navigable airspace, in a physically nonintrusive manner” to gather evidence to make an arrest.
http://www.usnews.com/news/articles/2012/04/09/first-man-arrested-with-drone-evidence-vows-to-fight-case

#77 recharts on 12.02.13 at 9:55 am

Learn to read. I said taxing purchases instead of sales is bad policy. — Garth
It was explained by one of your readers that it actually helps the seller to get his money out inflation free.

When you buy like 60 properties during your life time you will surely be taxed a lot.
If you buy and sell one or two you will be OK.

I don’t see your point. Actually I see it but it does not bother me :-)

#78 frank le skank on 12.02.13 at 10:12 am

#2 HD on 12.01.13 at 8:19 pm
Congrats on the milestone – I wish I was that diciplined at the age of 29.

#79 T.O. Bubble Boy on 12.02.13 at 10:24 am

$CDN touched the high 93’s this morning (low of 93.87 cents U.S.).

Recovered back above $0.94 for the open, but the trend is definitely down… I’m pretty sure that the last time it was this low was 2010, and if it hits $0.93 that’s 2009 territory.

#80 Mak the investor on 12.02.13 at 10:26 am

Anyone looking at REITs they are going down like crazy. Anyone knows why? Are they a good buy right now?

REZ: 45.89
SCHH: 30.49

Yummy. — Garth

#81 Smoking Man on 12.02.13 at 10:40 am

Expect BOC to crush the Canadian Dollar on Wen at 10am.

Long usa stocks or USDCAD.

#82 Ronaldo on 12.02.13 at 11:02 am

HD – good for you on your milestone. Stay the course. Slow and steady wins the race. Disregard those that wish to put you down. You’re on the road to success.

#83 Kevin on 12.02.13 at 11:21 am

#61 Casual Observer
When investments are purchased with after tax dollars, the gains are still taxed – why should lottery winnings be any different?

Because when buying a lottery ticket, 50% of your purchase price already immediately goes straight to the government as a tax. Why should it be taxed further if you win?

On the other hand, when buying equities, 100% of your purchase money (less commissions) goes to the sale price. The government has to wait till you sell to get their cut, and even that they only get paid if you made a gain.

#84 Ronaldo on 12.02.13 at 11:27 am

To HD –

I came across this poem written many years ago when I was a very young man, probably younger than you are. I presented each of my two sons with it when they were in their teens. I would like to pass it on to you as a sign of respect for the good person that I believe you to be. If people were to follow the writings in this poem, success would no doubt follow. I don’t necessarily mean in a financial way. There are many ways one can become successful and wealthy. It’s not all about money. Be careful that the accumulation of money does not become your sole purpose.

Enjoy.

http://www.youtube.com/watch?v=2yNJaKF9sXA

#85 T.O. Bubble Boy on 12.02.13 at 11:44 am

@ #80 Mak the investor on 12.02.13 at 10:26 am
Anyone looking at REITs they are going down like crazy. Anyone knows why? Are they a good buy right now?

REZ: 45.89
SCHH: 30.49

Yummy. — Garth
————————-

P/E ratios on those ETFs are a bit scary, even though they’ve dropped from their highs.

#1 holding in REZ is Public Storage (P/E of over 32… a solid company, but not exactly a growth stock), and overall P/E for all holdings is 33. SCHH is even higher — average P/E of almost 38.

Dividends are ok on both of these, but since they are USD holdings, you’ll pay withholding tax on them unless they are in a RRSP.

#86 Daisy Mae on 12.02.13 at 11:47 am

#9 Forzudo: “At least you only pay the land transfer tax(es) once (per house / condo); annual property taxes come whether your income is high or low.
Every year.”

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

I understood the land transfer tax is applicable for buyers and sellers in Ontario?

#87 Daisy Mae on 12.02.13 at 12:01 pm

#36 – DM of C: “At 0% interest though, it’s tempting. Better their money than ours.”

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

I’m always very skeptical of these claims — 0%? Financing costs are factored in somewhere….

#88 rosie "moving forward" in the knowledge that, "this won't end well" on 12.02.13 at 12:58 pm

#87 Daisy Mae

Correctamundo. There are no free lunches.

http://www.carloanscanada.com/resources/0-car-financing/

#89 Suede on 12.02.13 at 1:01 pm

According to Yatter Matters, there is a new record Vancouver SFH Price. Sales up, prices up. OMG

#90 Network Admin on 12.02.13 at 1:21 pm

#87 Daisy Mae
> I’m always very skeptical of these claims — 0%?
> Financing costs are factored in somewhere….
The financing costs are probably factored in, but for ALL, even those people who don’t take financing. We bought a new car in 2010 and when we asked “is there any discount if I pay cash?” they said “no”. Why pay cash if you get 0% financing?

#91 ponerology on 12.02.13 at 1:50 pm

IMO actually does make a good deal more sense for houses to be subject to capital gains (and/or sales tax) than a “transaction levy” provided that if you have a capital loss you can get some kind of tax credit.

I just hope that the idea of a “transaction tax” on stock trading never gains any traction..

#92 julia on 12.02.13 at 2:07 pm

#62 Bob Rice on 12.02.13 at 12:36 am
Thanks so much for posting this article, Bob!
http://rabble.ca/columnists/2011/05/tfsa-attack-our-tax-system

I had been thinking the same thing about TFSAs, that they will likely become just another tax shelter for the wealthy, unfortunately, while those who could really use the tax relief will have all their money tied up in their houses and not use them or if they do, not make the most of their potential. Perhaps one reason our friend Garth works so hard at trying to save us from our ignorance is to protect his TFSA legacy from ending up just being a tax shelter for the rich.

Oh, and this one’s for you Smoking Man. http://www.thestar.com/opinion/commentary/2013/12/01/violence_against_women_gets_only_a_shrug_goar.html

Happy Monday everyone!!

#93 Smoking Man on 12.02.13 at 2:25 pm

#92 julia on 12.02.13 at 2:07 pm

Julia just because I threw a few TV out the window, 25 years ago on a coke induced rampage dose not mean I Condon violence against woman.

Never in my life have I considered striking a woman.

I was venting. One of my customers stiffed me for a shit load of loot then he went bankrupt. I found out by phone and chucked the TV. It felt really good doing it too.

Just because my wife was in the room. You jumped to conclusion,

My wife can kick my ass. My whole body is full of arthritis, in fact a Grammy in good shape can kick my ass.

But you know what, after chucking the TV, showing that I was a bit nuts.

My wife has been very respectful…… Don’t regret doing it.

#94 Paul on 12.02.13 at 2:32 pm

Network Admin on 12.02.13 at 1:21 pm

#87 Daisy Mae
> I’m always very skeptical of these claims — 0%?
> Financing costs are factored in somewhere….
The financing costs are probably factored in, but for ALL, even those people who don’t take financing. We bought a new car in 2010 and when we asked “is there any discount if I pay cash?” they said “no”. Why pay cash if you get 0% financing?

If you did not get a better price by paying cash you are not negotiating.

To steal a quote from Garth ” Sorry for you loss”

#95 jess on 12.02.13 at 2:36 pm

..”An Ottawa woman says she was shocked to learn the condo she was selling online was also being offered on another website at a deeply discounted price, part of a complicated scam targeting unsuspecting homebuyers.

Julie Gutteridge is selling her upscale downtown Ottawa condo for about $260,000, and placed ads with real estate website Grapevine and online classified advertiser Kijiji.

She then noticed a nearly identical ad — with the same digital photos she had used on her advertisement — on another real estate website.

The one difference: the price. The clone ad listed the condo for $108,000…
http://www.cbc.ca/news/canada/ottawa/fake-real-estate-ads-prey-on-buyer-desire-for-home-deal-1.2445689

#96 Casual Observer on 12.02.13 at 2:59 pm

#83 Kevin
Because when buying a lottery ticket, 50% of your purchase price already immediately goes straight to the government as a tax. Why should it be taxed further if you win?

There are many things that are double taxed. Sales taxes on used cars and RE get paid every time the vehicle or property changes hands. Gasoline has tax (GST) paid on other taxes, alcohol has multiple layers of tax, etc.

One could say the same about inflation. The gov’t central bank controls inflation (or at least tries to) which is a “stealth” tax on all income and investment returns.

Tax policy affects human behaviour. The question becomes, what does the gov’t want to encourage with their tax policy? Gambling… or working, saving and investing?

Personally, I would rather see lottery winnings taxed (like they do in the US) and lower taxes on income and investments.

For RE transactions, it makes more sense to tax the seller’s capital gains than having the purchaser pay the tax.

#97 Vis on 12.02.13 at 3:48 pm

#2/HD

Congratulations on your $100k at 29. I’m 27, female and I only have $30k but I have yet to score a permanent full-time job (I’m a shiftworker in the medical field). Hopefully will do so in the next year.

I want to take issue with your so-called feminism which provides you the privilege of calling women “bitches”. Really? So what else are you lying about in your post?

#98 NoName on 12.02.13 at 4:00 pm

#50 recharts on 12.01.13 at 11:05 pm

http://goo.gl/leXAQj

Tell me why do you prefer bitcoin over other 42 cripto currencies? Because is bitcoin is I guess shiniest one.

#99 Gold tanking on 12.02.13 at 4:03 pm

Gold bugs about to jump off balconies…..

http://stocktwits.com/symbol/GLD

#100 wallflower on 12.02.13 at 4:09 pm

Principal residence tax exemption.
Would love to know whether the offshore-living citizen that I know who recently sold only home in Canada (Toronto)qualifies for principal residence exemption given they live 90% of their days in Asian countries. And if it is not permitted, do they simply ignore that fact?

#101 Nemesis on 12.02.13 at 4:29 pm

MondayZen for SaltyDogz…

FirstUp, China’s President Xi is emphatic… Indolence&Mediocrity will not be tolerated!

…”Xi demanded meetings be shortened, over-the-top welcoming ceremonies ditched, and wordy, meaningless speeches abandoned…”….

[AlJazeera] – China cracks down on ‘indulgent’ officials

http://www.aljazeera.com/news/asia-pacific/2013/12/china-cracks-down-indulgent-officials-2013122112815695624.html

Unfortunately – if Xinhua’s SplendidCompanion piece [illustration] is to be believed, Premier Li Keqiang didn’t get that particular memo:

[Xinhua] – Chinese premier holds welcoming ceremony for British PM in Beijing

http://news.xinhuanet.com/english/photo/2013-12/02/c_132934854_3.htm

This afternoon’s last? #YouCan’tMakeThisS**tUp

[UK Independent] – Man calls fire brigade after getting toilet roll holder stuck up bottom

…”Firemen who attended the scene were able to free him from the object successfully, but he did require on the spot medical treatment from paramedics.”…

http://www.independent.co.uk/news/uk/home-news/man-calls-fire-brigade-after-getting-toilet-roll-holder-stuck-up-bottom-8978258.html

[XinhuaCaptionContestChallenge: “Embarrased by the comparatively diminutive size of his own PartyOrgan, British PM Cameron was loathe to accompany Premier Li to the recently restored Qing Dynasty Imperial MensRoom… the orchestral accompaniment only added to his humiliation.”]

#102 X on 12.02.13 at 4:30 pm

Why doesn’t F jsut crack down on the RE cartels numbers they issue. Everyone knows they are crap, comparing this years conditional solds with last years actual solds.

He could slow the RE market a bit, make the RE boards look like the bad guy misleading the public for their own gain, and come out looking good, sticking up for the average joe.

#103 :):(Ying Yang on 12.02.13 at 4:32 pm

One of my business associates just had his ass kicked when he purchased a rather expensive home here in the City. He shit himself when he learned he had to pay $132200 for land transfer taxes. I said What do you care my friend you just coughed up $3.5M for your piece of the action. So this is in the scheme of things chump change. I love this guy, spends money like there is no tomorrow, drives a Mercedes SLS -AMG roadster, has a 12 Metre long powerboat, and then complained about the $132 K that he probably spends every year on his power cruiser on Lake Ontario. Me on the other hand would really crap myself if I had to pay up that land transfer tax. $132K is still a good chunk of change. Just think what you could do with half of that in some nice little stock investments.

#104 :):(Ying Yang on 12.02.13 at 4:38 pm

#93 Smoking Man on 12.02.13 at 2:25 pm

_______________________________________________

Read your posts on Saturday when I was in Montreal, sorry to hear son #2 was rehabbing. I hope well for him. Junior Smoking Men don’t have a chance today. It’s a tough world out there. Your $15K would be well spent, if I had to blow my entire savings to help one of my family members I would do it without even giving it a thought.
Best thoughts :):(Ying Yang

#105 Mak the investor on 12.02.13 at 4:38 pm

Yummy. — Garth
————————-

P/E ratios on those ETFs are a bit scary, even though they’ve dropped from their highs.

—————————————–

Thanks Garth and T.O. Bubble Boy. It seems, the FFO (Funds From Operation) data has to be considered to evaluate REITs. Though I have not found FFO data for REZ or SCHH.

Thanks again.

#106 Retired Boomer - WI on 12.02.13 at 4:49 pm

HD & Ronaldo #84

Equal time from an ‘opposing poem’ circa 1972 (you had to be there) similar to “Desiderada” but not quite…

http://youtu.be/xCGRDnTySCI

#107 Tax me more..I'm Canadian on 12.02.13 at 5:00 pm

Everyone advocating a tax on selling a house should-

1- check the fluoride content in your town’s tap water
2- turn off your TV
3- go to the mirror and say ‘I am a chump’

#108 Tax me more..I'm Canadian on 12.02.13 at 5:05 pm

oh, and one more think the chumps can do. Do like Elvis-
at the bottom of his tax returns he would add some more money than he owed, with a note saying how grateful he was to live in the USA

#109 jess on 12.02.13 at 5:31 pm

precedent setting?
Amazon loses New York sales tax case
The US Supreme Court has rejected an appeal to re-evaluate a New York state law that requires internet retailers like Amazon and Overstock.com to pay sales tax in the state.
The law forces internet retailers to collect taxes on purchases in New York.
http://www.bbc.co.uk/news/business-25191651

#110 TurnerNation on 12.02.13 at 5:40 pm

Kinda felt like a rotation day.
Noticeably red: All fixed income, metals.
Greener: Oil, $USD.

#111 jess on 12.02.13 at 5:42 pm

people may want to move there

Back in 2011, the Vermont legislature passed and
Governor Peter Shumlin (D) signed the single-payer goal into law, which has its signifying slogan: “Everybody in, nobody out.”

http://www.truth-out.org/buzzflash/commentary/item/18344-single-payer-healthcare-for-vermont-on-track-for-2017

#112 sciencemonkey on 12.02.13 at 5:42 pm

Congrats HD. I’m 30 and working on the same strategy, but I’m only halfway there due to egregious career path decisions. I wish I could go back and talk to 17 yr old me…

#113 eddy on 12.02.13 at 6:08 pm

An adult real estate novice once asked me-
“Land Transfer Tax, what’s the percentage?”

See how the logical, fair mind works?
This innocent actually thought the tax would be straight forward.

I was in an custom home (1.8 mill) open house in Leaside and a fellow visitor asked the agent

“How much is the land transfer tax on this house?”

The agent couldn’t answer. She began to talk a bunch of verbiage to fill up the silence but .. there was no amount, no answer to a very straight forward question.

Yes it’s a form of higher mathematics

#114 Mike Rotch on 12.02.13 at 6:13 pm

87, 88, and 94 RE cost of 0% car loans

It depends what you’re buying, but, sometimes you can have your cake and eat it too.

The financing arm of the car company is likely bulk-borrowing money at GIC type rates and subsidizing for you. Figure they’re into 2% or so, so over a 5 to 7 year horizon.

Just for fun, I ran a spreadsheet – a $50,000 loan at 2% costs them something like $2600 for 5 years and $3600 for 7…..

So, subsidizing the interest does not cost very much. Considering they were offering hefty cash discount and zero percent, they’re having trouble moving cars at full price, so they’re still up for a deal.

If you negotiate tough, you can get back most or all of the $10,000 cash rebate AND the free money financing.

And, even if you could not get the entire $10K, but had to settle for, like, half of it, are you still better off?

I don’t know about you, but, to close a cash deal on a car, I’d have to sell shit that’s gaining/yielding a damned sight more than 2%. Let’s say, by pre-paying the car, I’m forgoing 5% growth potential.

Ya know, I think I’m just as far ahead to borrow $45,000 at zero as to pay cash for 40,000.

If I can squeeze ’em down to $43,000, I win.

Personally, until the wife kicks me to the curb and I need a shiny new ride to show to the ladies, I’ll just take the KIA at 0% for 7 years :)

#115 Smoking Man on 12.02.13 at 6:14 pm

Ying Yang, don’t believe everything I type on a weekend in the evening,especially when I’m looped. I make up stories.

Why? I’m demented I think. What normal person does shit like that.

Let the shrinks figure it out.

#116 TheCatFoodLady on 12.02.13 at 6:18 pm

I’d love to go back & speak with the 17 year old me. Problem is, now as then – I wouldn’t listen.

#117 waiting wanting on 12.02.13 at 6:30 pm

it is IMHO that the LTT is justifiable and should actually be higher to possibly avoid this massive speculation on housing that has been going on (apart from the fact that banks should of never been allowed to offer ridiculously cheap mortgage loans.)

Anyway, the reason I feel this tax is valid is simply due to the high cost for infrastructure and social programs that are required. When you think about it; why should a flipper pocket huge sums of money through a capital gain on a property when he’s owned and paid his taxes for a relatively short time as compared to a family that have owned and paid their dues for over 20 years?
who’s really paying in the long run to make sure that the city is vibrant and has the infrastructure needed to attract capital investments.

FU! flippers, if it was up to me, I would put a 15% LTT and tax cap. gains by 50% for anyone holding a property for less than 10 years.

#118 HD on 12.02.13 at 6:38 pm

@#97 Vis on 12.02.13 at 3:48 pm

I want to take issue with your so-called feminism which provides you the privilege of calling women “bitches”. Really? So what else are you lying about in your post?

Feminism: the advocacy of women’s rights on the ground of the equality of the sexes.

In my post, I called male posters ‘’blog dawgs’’ and female posters ‘’blog bitches’’/female dogs.

I treated men and women equally.

How is that not in line with my feminism?

Best,

HD

#119 jess on 12.02.13 at 6:55 pm

largarde list
almost 3,000 secret Swiss accounts at HSBC on the list obtained by former Geneva-based HSBC employee Herve Falciani, 70 per cent were held by diamond dealers.

see – Fresh money laundering inquiry for HSBC amid fears bankers are using gem traders to evade tax
By James Salmon

#120 Ronaldo on 12.02.13 at 7:22 pm

#106 Retired Boomer – WI on 12.02.13 at 4:49 pm

”HD & Ronaldo #84

Equal time from an ‘opposing poem’ circa 1972 (you had to be there) similar to “Desiderada” but not quite…

http://youtu.be/xCGRDnTySCI

Retired Boomer, I was there and remember those times very well. The year before the Arab oil embargo and runaway inflation.

A home I had purchased in the lower mainland in January 1970 had increased by 40% by January of 1973 and went on to increase another 85% over the following 18 months and then correct by 20% in the fall of 74.

Inflation was running over 10% and prices of products were rising weekly. In 1974, the gov’t under Trudeau imposed wage and price controls which was later deemed to be a failure.

A lot of money was made on real estate in a very short time period even after the correction in the fall of 74.

http://www.canadahistory.com/sections/eras/trudeau/Wage%20and%20Price%20Controls.html+

#121 Smoking Man on 12.02.13 at 7:28 pm

#118 HD on 12.02.13 at 6:38 [email protected]#97
Vis on 12.02.13 at 3:48 pm

Ha ha, chics are quite sensitive, use the wrong word, boom, dog house.

I have recently discovered that using, feminized male, to describe a girly man or emasculated male is a no no.

Close your terminology carefully.

#122 Piccaso on 12.02.13 at 7:30 pm

Canada is letting the loonie crash to offset crashing oil.

#123 recharts on 12.02.13 at 7:43 pm

Blame it on Bitcoins and the tax evaders who use it

#119 jess on 12.02.13 at 6:55 pm
largarde list
almost 3,000 secret Swiss accounts at HSBC on the list obtained by former Geneva-based HSBC employee Herve Falciani, 70 per cent were held by diamond dealers.

see – Fresh money laundering inquiry for HSBC amid fears bankers are using gem traders to evade tax
By James Salmon

#124 Big Brother on 12.02.13 at 7:46 pm

#115 Smoking Man on 12.02.13 at 6:14 pm
Ying Yang, don’t believe everything I type on a weekend in the evening,especially when I’m looped. I make up stories.
Why? I’m demented I think. What normal person does shit like that.
Let the shrinks figure it out.

MKULTRA says it’s all true Smoking Man. Can’t hide the truth, you know it. Son number 2 was with you this weekend. We know all about you as we created you.

#125 Paul on 12.02.13 at 8:00 pm

#119 jess on 12.02.13 at 6:55 pm

largarde list
almost 3,000 secret Swiss accounts at HSBC on the list obtained by former Geneva-based HSBC employee Herve Falciani, 70 per cent were held by diamond dealers.

see – Fresh money laundering inquiry for HSBC amid fears bankers are using gem traders to evade tax
By James Salmon
““““““““““““““““““““““`

Shocking shocking I can’t believe that is going on.

Time to tax the windfall profits of all the little old ladies who flip there house after only 40 years of payments upkeep and Taxes. The nerve they think they have built up a nest egg for their golden years. Call rev Canada and tell them to plug this loop hole immediately!!!

#126 willworkforpickles on 12.02.13 at 8:11 pm

Nevermind that shit …here comes Mong…….oooooo….
google this……
These 17 countries may have housing bubbles. If they pop, God help us all.

#127 Canadian Watchdog on 12.02.13 at 9:01 pm

Ontario projects steady rise in electricity costs for next 20 years

The price of electricity is set to rise steadily in Ontario over the next two decades, with the most dramatic increases in the next five years.

The province’s long-term energy plan, released Monday, projects a 42 per cent jump in home power bills by 2018, climbing to 68 per cent by 2032. The cost for industrial enterprises will also rise, by 33 per cent in the next five years and 55 per cent in the next 20.

Now fast-forward five-ten years when mortgage rates are 1.99%, maybe 1.25% — equal to monthly operating and maintenance costs. That's where this centrally-planned market is heading: services and taxes. A sure wealth killer, and yet another government-induced stimuli of demand for rent, which will surely drive prices even higher as the empty condo carry trade sits and appreciates in emerging currency terms.

BTW, that spiffy LTT website is owned by TREB.

#128 Smartalox on 12.02.13 at 9:07 pm

@#119,

Cut the diamond dealers a break: the commodity that they choose to deal in is terrible as a financial asset. A single stone’s worth is completely unrelated to the size of the stone itself, and because “diamonds are forever” old stones do not degrade, while new ones enter the market daily, with strict supply controls to create the impression of demand.

Finally, the cost of any given stone has been tied to the value of ‘two months’ salary’, throughout a period when wage growth has been notoriously flat.

Now all of this is completely unrelated to the VALUE of a diamond, especially with regard to what people will do for them – but governments have yet to find a way to tax those services.

#129 recharts on 12.02.13 at 9:11 pm

#98 NoName on 12.02.13 at 4:00 pm
#50 recharts on 12.01.13 at 11:05 pm

http://goo.gl/leXAQj

Tell me why do you prefer bitcoin over other 42 cripto currencies? Because is bitcoin is I guess shiniest one.

I would place my bet on the original one
1) I don’t know much about the others
2) Bitcoins seems to become acceptable for the governments of many countries.

The only objection that I have here is the initial set of bitcoins that was mined by the author of the Bitcoin currency.
The guy is already super rich and the more of us who use his invention the richer he becomes :-) (and the more expensive the currency )

#130 Daisy Mae on 12.02.13 at 9:54 pm

#88 rosie “moving forward” in the knowledge that, “this won’t end well” : #87 Daisy Mae

Correctamundo. There are no free lunches.

http://www.carloanscanada.com/resources/0-car-financing/

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

Thanks! Very interesting! I’ll save this info for future use.

#131 Daisy Mae on 12.02.13 at 10:10 pm

#94 Paul Network Admin
#87 Daisy Mae
I’m always very skeptical of these claims — 0%?
Financing costs are factored in somewhere….
*********************************
The financing costs are probably factored in, but for ALL, even those people who don’t take financing. We bought a new car in 2010 and when we asked “is there any discount if I pay cash?” they said “no”. Why pay cash if you get 0% financing?
**********************************

If you did not get a better price by paying cash you are not negotiating. To steal a quote from Garth ” Sorry for you loss”
**********************************

There you go! Dealer didn’t want cash. And yes, cash should result in a better deal always. He wanted you to finance your purchase because the dealership would reap the benefits of hidden costs with regard to ‘0% financing’.

#132 Vis on 12.03.13 at 5:48 am

#97/HD

We’re not going to accomplish anything here as you won’t put any stock in what something a random person says online. Why don’t you go ask a woman feminist in your life -if you know any- why you shouldn’t call women bitches.