Camenomics

RISK CAT modified

If you recall yellow helos full of lusty Chinese drooling over Vancouver from six thousand feet, you remember Cam Good. More than any one person, he was responsible for the Yellow Peril attack of two years ago. He’s the guy (through his Key Marketing Group) who stuffed a bunch of local suburban real estate agents of Asian heritage into a helicopter and told the media (he invited them, too) they were actually HAM scouting for properties.

CAM Then Cam placed two employees of Chinese ancestry in a condo sales centre at the Lunar New Year and told them to pose as sister-buyers from the old country, scooping a condo for their Mainland folks. So they did. And gullible reporters from CTV and CBC bought it. More Yellow Peril.

Then he went to China and sent this message back to Vancouverites, now whipped into a jingoistic frenzy over foreign buyers:  “If you don’t want to live in a city that beautiful, with that much demand, then maybe you should live somewhere else, because in any city, no matter where it is, if there is international demand you are going to have these concerns, so either you want to live there or you don’t.”

So, some people see Cam Good as a pricky little self-lubricating, manipulating, fabricating flogger whose tools of choice are fear and fiction.

Now he’s at it again. But this time, since HAM is a spent force, Mr. Good has turned his glint to the next thing on the local hate list: cars. In a great example of how condo developers are increasingly desperate, the guy is now marketing a new downtown project (“InGastown”) to clueless virgins who would like to ‘trade a car for a condo.’ This is useful, not just because InGastown will have no parking when it’s built in two or three years, but because it gives him a new opportunity to massage the truth.

In chart form, here’s the pitch:

CAMENOMICS

Hipsters with a beater worth $5,400 can buy a condo, the marketer says, because 2% downpayments will be processed through Vancity. Of course, buyers have to somehow save the full 5% by the time a unit closes, but that’s in the small print. And while Camenomics is correct that cars always depreciate and real estate normally appreciates, InGastown really, really, really hopes none of their buyers get a calculator or read this blog in the next two years before the building goes up.

Because if they do, they’ll clearly see losses are headed their way. Those could be little, or they couple be epic. But they will not resemble anything on the promotional chart.

First, let’s take the best-case scenario. A metrosexual urban latte-sucker trades the Fiat and a bundle of cash for a $280,000 condo that actually appreciates steadily and is worth $311,000 in five years. Selling it (the only way to collect a profit) leaves about $297,000 after commission. The mortgage (which included the CMHC premium) needs to be paid off, so $41,458 remains. Deduct the $15,000 downpayment, and the profit is $26,450. Yes, baby! Cam for mayor!

Of course life doesn’t work that way.

The mortgage monthly (at the developer’s 3.89% rate) is $1,550, and with strata fees and property taxes the total amount to carry the 650-footer is $2,100. To rent a similar (actually larger), new one-bedroom condo downtown costs $1,495. So after five years the ‘owner’ has forked out $36,000 more than the renter, in order to secure a $26,450 profit. Plus the renter could have invested the $15,000 and turned it into $22,000. Or driven it around.

That’s it. Best case.

Now imagine a modest 15% correction in condo prices. In that scenario the ‘owner’ loses $27,300 (including the downpayment). Add in the $36,000 premium the hapless owner paid to live there, surplus to rent, and the damage jumps to more than $63,000.

As Cam says to the virgins, “First-time homebuyers: if you can rent, you can own InGastown.”

But why would you possibly want to?

The pattern continues.

160 comments ↓

#1 Bob Loblaw on 01.24.14 at 6:49 pm

Huffin’gastown it should be called

#2 uncled on 01.24.14 at 6:54 pm

And think of the money you will save on wiper motors

#3 devore on 01.24.14 at 6:58 pm

I’m not sure in which part of lower mainland condos are appreciating at anything approaching what is shown on the graph. If you bought a condo in the last 7 years, chances are very good it’s worth less today. Throw in property taxes, condo fees, and depreciation, and the only guys making money on condos are the ones renting out tiny studio apartments, the only cash flow positive condo investment around here.

#4 The Forseer on 01.24.14 at 6:59 pm

Global Currency Reset. US Dollar Crashes. Interest rates skyrockers. Just wait and watch.

#5 not 1st on 01.24.14 at 7:01 pm

Give up the mobility and utility of a car for something that has neither. real smart.

#6 jan on 01.24.14 at 7:03 pm

Numero uno weirdos hooah !!!!!

#7 Smartalox on 01.24.14 at 7:05 pm

The sorry part is that in the West Coast, where mild winters mean salty roads are rare, and cars can last forever, $5000 buys a very respectable car (eg: 10 year old Mercedes C-class) whose depreciation curve has pretty much flat-lined.

And $1550 / mo is about $300 more than the rent on the 1200sf townhouse where I live.

#8 Nick on 01.24.14 at 7:11 pm

“InGastown” is actually in the DTES, located next to two Sally Ann homeless shelters and across the street from public housing. It is fronted by a line of homeless seniors smoking and listening to wind-up radios playing the oldies every day. I assume the showroom is far, far away.

#9 Bill Gable on 01.24.14 at 7:15 pm

U.S. stocks fell sharply and Treasuries rallied on Friday, with the Dow Jones Industrial Average tumbling triple-digits for a second session and posting its worst week since November 2011, as investors pulled money from emerging markets and other assets viewed as risky.

As Wall Street’s faith in some of the world’s largest developed countries unraveled, currencies of those nations were hit, with Turkey’s lira falling to a record low against the dollar, and Argentina’s peso down sharply against the U.S. currency.

“We’ve touched off by what’s going on around the world, so to speak, and are reallocating assets from some of the emerging markets into what is thought of as more reliable,” said JJ Kinahan, chief strategist at TD Ameritrade. “It’s a safe parking spot,” Kinahan added of fixed income.

http://tinyurl.com/m6dsgup

#10 Freedom First on 01.24.14 at 7:20 pm

I think Cam must have gone to the Brad school of investing in virgins. I also think this grasshopper is now ready to shave his head bald.

Garth, I hope everything is moving in a positive direction for you and that you heal well. Mind you, I know that even if you had no legs, you could still kick the a$$es of the sCam artists.

Thank you for posting Garth.

#11 ILoveCharts on 01.24.14 at 7:27 pm

And the best part is the address… it’s not actually fair to say it’s in Gastown. A more appropriate description would be “in the middle of the most disease infested, crime ridden, neighbourhood in Canada.” Seriously people, any decent man would never let his wife or kids walk alone on that street. And without a car… that’s going to be your only option.

#12 ILoveCharts on 01.24.14 at 7:38 pm

P.S. HAM is for real.

#13 LH on 01.24.14 at 7:40 pm

Decisions, decisions

Another year, another 900k (pre-tax)
Bonus check hits in a week.
Should I buy another house? Or pay down some mortgages? The Junction Triangle auction last week brought a smile to my face. With CAD sinking below 0.90 (or USDCAD > 1.11 for non-Canadians) central urban Toronto houses now appear 10-12% off to international buyers. M5T/M5S/M5R are going up by at least that much, and possibly 20%+, by the end of this year.

Why? Have a look on guava.ca
Decent supply in houses everywhere, except for M5T/M5S and the parts of M5R close to Bloor.
Why? Simple. Walkable to U of T, the only decent college in Toronto, offices, TTC, amenities, everything.

Having a read of Prof Pinketty’s lecture notes and the novel Pere Goriot. Could our future resemble 19th century Paris? Low growth rates, low wealth mobility (other than marrying up), where the rich rentiers stay in place, cocooned in their salons by their assets and rents? And where everything else (read: the 905) gets banlieue-ized? These are the important questions for our times!

LH

#14 Old Man on 01.24.14 at 7:44 pm

I have often wondered what happened to the good old days when love was in the air and two hearts became one in marriage. They wanted nothing but each other, and rented an apartment; saved their money; and bought a modest home called a starter. Now for a few years would renovate as a joy together, and sell for a trade up to move up in life a bit to start a family, and all was well. Today these fools want it all at any cost to buy debt as its so cool to live the good life, as they are living the dream. Its all an illusion in the end, and there are many songs on youtube called ITS OVER that reflects the human condition with a twist of sorts, as those that fall in love with Real Estate will in the end fall out of love with each other; they missed the mark in life as the struggle to grow together with financial prudence was put aside.

#15 Joe Average, Vancouver on 01.24.14 at 7:45 pm

I think the ” pose as sister-buyers from the old country” drama was a MAC Marketing scandal and not Key Marketing. I could be wrong for only one reason….in Lower Mainland “China ” everybody does it.

#16 Intuitive Missus on 01.24.14 at 7:46 pm

Special Assessment Alert in Ottawa

http://briankbriggs.tumblr.com/post/74088112865/condo-buyers-number-one-question-to-ask-when

#17 Realtor #1 on 01.24.14 at 7:56 pm

Forget condos Garth, who has time for condos commission is too small. detached properties is where
It’s at. It’s a sellers market !!

#18 Babblemaster on 01.24.14 at 8:02 pm

When it comes to culprits in the insane goosing of the Canadian housing market, Cam Good is a pussycat compared to Flaherty.

#19 8102 on 01.24.14 at 8:19 pm

Good luck on with surgery Garth and a speedy recovery!

#20 chapter 9 on 01.24.14 at 8:23 pm

Is the $23 trillion credit bubble in China starting to unwind???

#21 Bigrider on 01.24.14 at 8:44 pm

#13 LH on Cdn . $ decline.

I was thinking same thing. Declining $ just makes our houses cheaper to foreigners on a relative basis.

At some point the naisayers will have to throw in the towel, including our host.

#22 Carpicker on 01.24.14 at 8:59 pm

QE and RE train has left the station long time ago….it’s only one left warming up the engine, can see it from my balcony…..yellow and shiny

#23 Son of Ponzi on 01.24.14 at 8:59 pm

The lactose I referred to is from those self-invested who buy rising assets and shed declining ones. Emotion always defeats them, with the winners being on the other side of the trade. — Garth
——————-
Finally, someone admits that the financial markets are a zero sum game.
For every winner there is an equal loser.
Now, that was not too hard, was it?

#24 TnT on 01.24.14 at 9:00 pm

#21 Bigrider

Agree… been saying this for a long time now but I get called a Realtor :)

We don’t keep stats on foreign ownership however we do keep stats on our citizens who are in debt beyond their eyeballs and yet these houses keep selling…. hmmm

This spring will be a hot market again….

Realtors + Government + HGTV + Immigration + Banks = winning combination for Real Estate

#25 Musty Basement Dweller on 01.24.14 at 9:04 pm

Garth, thanks for calling out this disgusting flim flam man “Cam”. I’ll report him to whatever fraud agencies will listen starting with http://www.befraudaware.ca.

#26 Ripped on 01.24.14 at 9:14 pm

#21 Bigrider

Declining $ just makes our houses cheaper to foreigners on a relative basis.

Ha Ha… what investor wants to catch a falling knife.

You could have made 10% on your investment with no increase in house prices down south

That declining dollar makes everything inside your house more expensive since we import everything except pot.

#27 grasshopper on 01.24.14 at 9:26 pm

Todays markets. Is that a warm up for next week?

I thought the US was going to run out of money next week.

#28 Mike Leblond on 01.24.14 at 9:27 pm

#13, #21, #24, the three of you are desperate realtors…. foreigners will only buy real estate in Canada if they think it will go up in value. Canadian real estate is going down. The Canadian dollar isn’t going back up anytime soon. Foreigners also have to deal with weakening economies in their home country. Nice try but they won’t be your saviors anymore.

#29 Musty Basement Dweller on 01.24.14 at 9:30 pm

HAM might be for real in Vancouver but how long do you think the investors will hang in there once they realize they are not making money.. Or better yet losing money? Do you think they will be too stupid to notice? I don’t think so. Rats on a sinking ship may be more like it although it will all be in slow motion to start.

#30 economictsunami on 01.24.14 at 9:30 pm

So the story goes:

Wealthy Chinese take their money to Macau, drop a reasonable amount at the tables and take the remaining 95% (?) of their stake to a offshore bank.

With some banks taking a hit over money laundering, the last thing they need is to piss off the Chinese kleptocracy.

American Vitality Turns on Who’s Right, Harvard or Yale: Economy:

http://www.bloomberg.com/news/2014-01-24/american-vitality-depends-on-whether-you-believe-harvard-or-yale.html

So who’s right in the great Ivy League debate and who has sold out to monied interests; as they become yet another credentialed academic mouthpiece for Wall St?…

#31 WiseGuy on 01.24.14 at 9:40 pm

You have to admit, this kid is a marketing genius…I put him up there with Dr. Ho and Tom Vu.

#32 Pookie on 01.24.14 at 9:40 pm

#15 Correct, the posing Chinese sisters was a MAC Marketing Solutions scam.

Good was a partner in MAC. — Garth

#33 Gord on 01.24.14 at 9:43 pm

And I just found my Cam Good rebuttal, (shockingly) printed in the Vancouver Sun circa April 2011. That it *still* exists online and hasn’t been forcibly removed is surprising.

Looking back on it now, I was clearly a wee bit dramatic. And in some cases, wrong with my prognostications. But I was also way too conservative in at least one instance: “In Vancouver, a home will cost you approximately 10 times your annual income.” More like 20.

Still, I’m happy I had that singular mainstream media stab at Scummy Cam.

http://www2.canada.com/vancouversun/news/archives/story.html?id=2b246eb8-2f57-40a7-bba4-e182e875d797&p=2

#34 Son of Ponzi on 01.24.14 at 9:53 pm

#28
Canadian real estate is going down. The Canadian dollar isn’t going back up anytime soon. Foreigners also have to deal with weakening economies in their home country. Nice try but they won’t be your saviors anymore.
———————-
How does it feel, with no direction home, like a complete unknown, like a rolling stone.
God bless Canuckistan!

#35 interested on 01.24.14 at 10:03 pm

#15 is correct. Two Cam’s. Helicopter Cam Good and Cam McNeil of MAC with the imposters. Then we have Cam Muir the Chief Economist of the BC Real Estate Association.

I’m definitely seeing a trend here…

#36 TRON on 01.24.14 at 10:06 pm

Realtor #1

If by a ‘Sellers Market’ you mean that sellers list their homes and watch them sit on the market you’d be right for most areas in the Lower Mainland.

#37 southseacompany on 01.24.14 at 10:13 pm

Credit should be due where credit is deserved. It was Cam McNeil’s MAC Marketing Systems that the two fake asian buyers worked for, not Cam Good’s firm.

As mentioned, Mr. Good was a partner in MAC for five years. — Garth

#38 Retired Boomer - WI on 01.24.14 at 10:13 pm

#14 OLD MAN

Wonderful post. I agree completely. Wish I had your insight into the current “human conditions”

#39 yeah Baby Yeah! on 01.24.14 at 10:15 pm

Enough with the real estate….your beating a dead horse. Stock markets are possibly correcting (maybe just a pullback?) where lies the opportunities?

#40 bentoverpayingtaxes on 01.24.14 at 10:16 pm

“A more appropriate description would be “in the middle of the most disease infested, crime ridden, neighbourhood in Canada.” Seriously people, any decent man would never let his wife or kids walk alone on that street. ”

Quite so…..the scum is so thick you need hipwaders to slop through the blood, feces, urine pools and puke in the morning. The urine stench of downtown Vancouver is overwhelming. If you go down to the waterfront to get a breath of air you’ll be bowled over by the stink of 800 million liters of raw sewage pouring daily into the harbour. Oh yah..location location location…..and teach your kids and puppies about the bloody syringes littering the sidewalks….they aren’t playthings.

Rape and sexual assault is epidemic in downtown Vancouver….avoid the shadows and lonely sidewalks if your smart….and god help you if the car loads ethnic drunks from the valley get it into their heads that you might be gay. Bad enough drunken policemen beat up newspaper delivery men and people walking alone for being on the sidewalk while they’re stalking game. It’s open season anywhere in Gastown at night.

Did I mention the rat, roach and bedbug infestations….the worst of any city in North America. The ‘social content’ of every new development means that your building will be infested with junkies shooting up in the stairwells and hallways, rats chewing through the walls and bedbugs swelling through the light switches into your bed at night. Oh Yah…best place on Earth.

And the reason you don’t want a car parked anyway in Vancouver at night is that yours will be broken into every night….you might as well leave it open. I talked to a cable techie guy who had to leave because he was having his tools stolen three times a week in a locked underground. Sure…..buy in Gastown…..you idiot.

And btw Mr Market…thanks for putting so many good issues on sale……yum

#41 timmy on 01.24.14 at 10:18 pm

You don’t need a car in Gastown, there are so many $#%# hi rise condos that there is no where to drive

#42 Suede on 01.24.14 at 10:21 pm

OMG

Someone here in Vancouver just asked my advice if he should rent a condo in the same building instead of buying. Buy your girl a tiffany bracelet and Michael Kors purse, then rent. Lot cheaper than buying a condo

/OMG

#43 Shawn on 01.24.14 at 10:25 pm

Markets are Zero Sum Game?

Son of Ponzi said:

Finally, someone admits that the financial markets are a zero sum game.
For every winner there is an equal loser.
Now, that was not too hard, was it?

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

Correct, Investors trading stocks with each other is a zero sum game (negative after costs)

However owning stocks is a positive sum game as money reliably flows from customers of profitable businesses to the owners.

By and Hold works on average over time.

Some traders win, some lose, but everyone who holds the index (or most any group of solid companies) over time wins.

Now, is THAT too hard to understand?

If so check with Buffett at page 18 as he explains how to lower your investment returns by trading more:

http://www.berkshirehathaway.com/letters/2005ltr.pdf

#44 gregonomic on 01.24.14 at 10:32 pm

#13 LH on 01.24.14 at 7:40 pm

Could our future resemble 19th century Paris?

Think late 18th century Paris. Hope you have a strong neck.

#45 TheCatFoodLady on 01.24.14 at 10:33 pm

The guy, (Cam), may be scumalicious but he’s got marketing aced. Back then, he fed into the fear of HAM & clearly, quite successfully. Now he’s glommed on to the housing happy, enviro-conscious group. You can leverage your way into an eco-conscious, (that lovely, eco-friendly densification), condo by giving up your nasty, depreciating, air choking… CAR! Who knows; he might sucker some people into it – pending financing.

On another matter or two… why do people argue over what’s the best city or area in which to live? Or the worst for that matter? We all have different criteria – is the important thing not living, (affordably), where you are happy?

For those renting pending price drops… I sometimes feel an almost frantic tine: “When’s the housing drop coming, I NEED to buy?!”

If your money is well invested, what’s the rush? The right place at the right time will come – patience younf Jedis.

#46 James on 01.24.14 at 10:34 pm

Unfortunately or Fortunately the virgins are shifting to the SFH market. In Toronto at least. Pretty clear low rates are here to stay for the next decade, albeit it will increase very very slowly. More time for price appreciation and profit taking. You snooze you lose.

#47 Rainclouds on 01.24.14 at 10:53 pm

The Camsters MAC Marketing office Homer St, downtown Van has brown paper on its windows looks abandoned.Maybe they moved to China too…..

On another note:Rental Market Downtown Van
If you go on craigslist Van there are a LOT of Furnished Apts for rent. Presumably due to the fact that folks who never intended to live in their money machine Condos cant flip em now or rent for higher than the market! what to do? ….. slap in an armoire and a TV, charge $500.00 more to staunch the bleeding.

Meanwhile @ my rental apt in Yaletown, just renewed. no rent increase nor was it mentioned.

Another year and this will be blown wide open

#48 Son of Ponzi on 01.24.14 at 10:56 pm

Cam Good just e-mailed me the following:
http://www.rightsidenews.com/2014012133773/us/economics/the-23-trillion-credit-bubble-in-china-is-starting-to-collapse-global-financial-crisis-next.html
——————————
Blog dogs, is the end nigh?

#49 VanKid on 01.24.14 at 11:06 pm

Was wondering when you’d find out about UnGastown.

I saw the storefront on Hastings & wandered in last year. Left when I found out they truely believed Gastown extended all the way to Main Street & Powell.

The Provincial Courthouse building, the Remand Centre, the old Police Department HQ are all neighbours.

So too is the No.5 Orange (made famous by Bon Jovi – ‘slippery when wet’ was a favourite strippers’ t-shirt)

And also the Sally Ann recovery centre is right next door.

But it gets better! there’s a Waves Coffee on the corner! woohoo!! Trendy Coffee !!!!

Something to savour while you are figuring out how much you’re spending to live in the poorest Postal Code in the country.

#50 45north on 01.24.14 at 11:08 pm

Gord great article, almost three years old.

#51 Nemesis on 01.24.14 at 11:09 pm

Today’s splendid LeaderIllustration is thematically/and OhSo pleasantly reminiscent of your recent HolidayMissive, HD…

As well you know why.

Time is of the essence of late… hence Nem’s continuing ShortCourse in International Political Economy is on hiatus for the foreseeable future whilst he is otherwise preoccupied with HobGoblins & TalesOfWoe in DistantTroubledLands.

In that regard… don’t be stingy with your hugs, SaltyDogz. You’ll be glad you weren’t one day… and don’t forget to spare a thought or two for our PlasterEncrusted, WalkingWounded [we presume] MagnanimousHost…

[NoteToGT: I so detest using the ThirdPerson when scribbling. Let’s just say it’s a throwback to an old institutional StyleSheet.]

#52 VanKid on 01.24.14 at 11:15 pm

#8 Nick on 01.24.14 at 7:11 pm

The showroom is on Hastings across from the Woodwards redevelopment. Woodwards is still a sketchy area, but nowhere as scary as Main/Cordova. Even in the bright sunlight we’re having this week.

#53 World According To Garth on 01.24.14 at 11:16 pm

#4 The Forseer on 01.24.14 at 6:59 pm
Global Currency Reset. US Dollar Crashes. Interest rates skyrockers. Just wait and watch.
——————————————————–

So wrong. Crash against what? Chinas’s toast – biggest margin call in history coming. Europe (like Kanaduhhhh) has trillions it owes to overpaid useless govt paper pushers.

Deflation is the name of the game. And sorry Garth the stock market will be cut in half. Ever study demographics? Garth your the one that told us about the wrinklies. Just WHOM is going to keep buying cheap plastic junk from China when:

1. 30% of the world is unemployed
2. The wrinklies stop buying and retire
4. Most of the “educated” can’t get a job but owe student loans.
3. The population is taxed into oblivion by cash hungry bloated useless govt workers

Anyone?

#54 Son of Ponzi on 01.24.14 at 11:20 pm

#43 Shawn
However owning stocks is a positive sum game as money flows to successful businesses.
————–
Wrong, there are more businesses failing than succeeding, with the investors holding the bag.
The only people benefitting are the intermediaries.

#55 World According To Garth on 01.24.14 at 11:24 pm

Then they’res this:

http://www.principia-scientific.org/breaking-new-climate-data-rigging-scandal-rocks-us-government.html

What do think the odds are of Crusty Clark and Sir Gordan Campbell in jolly ole London giving us all our phony invented carbon tax money back?

A cold (phony climate change) day in useless govt hell?

#56 amazon girl on 01.24.14 at 11:25 pm

To Old Man,Thanks for the post.Your are so right.
To # 21 Bigrider.
At some point the naisayerswill have to throw in the
towel,including our host.
At some point you should leave this blog, it was so nice without you.

#57 will on 01.24.14 at 11:35 pm

HAM symbolism aside, is there any truth to the picture? I mean, I’ve seen other pictures like this with lions, elephants, bears, and wolves that have a believable story about the reunion between the guy who raised the animal as a cub now fully adult. Is there any truth to the picture Garth?

#58 KommyKim on 01.24.14 at 11:46 pm

Garth, you must be slipping. How can you talk about RE, metrosexuals, CMHC, HAM, & cars and NOT mention a Kia?

#59 ILoveCharts on 01.24.14 at 11:50 pm

@#40 bentoverpayingtaxes:

Trying to describe all of Vancouver as a cesspool does nothing to help your argument. Much of the city is very nice. There are homeless problems but those exist in any major city.

The point here is that this particular development is in the very core. Gentrification is many blocks away and as it occurs, it will just act to further concentrate the poverty in the block of this new development. It won’t help, it will hurt.

#60 takla on 01.24.14 at 11:54 pm

By now we know all this garth,renting opposed to home ownership is a winning proposition in deflationary times as we are in.I was hopeing you would address the stock markets performance this last week.If the free fall continues and we get a repeat of 2008-2009 stock market correction into this spring how much of a drop will we see in canadian realestate values across canada?

#61 Kilby on 01.24.14 at 11:59 pm

We rented a waterfront 575 sq. ft. condo in North Vancouver for $1,600 a month, lots for sure but was fun for 18 months. It was owned by 3 people in China, they paid $549,000 for it in 2010, they are now asking $469,000 for the same units and the building is still so empty, we had 20 parking spaces…Brilliant. I would never buy in Gastown, great place for 20 to 30 year olds to party but not to live.

#62 jan on 01.25.14 at 12:06 am

#24 TnT on 01.24.14 at 9:00 pm
#21 Bigrider

Agree… been saying this for a long time now but I get called a Realtor :)

We don’t keep stats on foreign ownership however we do keep stats on our citizens who are in debt beyond their eyeballs and yet these houses keep selling…. hmmm

This spring will be a hot market again….

Realtors + Government + HGTV + Immigration + Banks = winning combination for Real Estate

Me..You forgot to mention + media + CMHC + the Canadian equation(immigrants and immigrant’s children live here hence real estate is the only way to) go) thing.

Now you got it.

#63 William Bell on 01.25.14 at 12:07 am

So if this car for condo thing works out …. banks in this country will starting to look like this:

http://goo.gl/mQbE2V

#64 Shawn on 01.25.14 at 12:09 am

Ponzi at 54 have the decency not to misquote me. Cut and paste, my friend.

“…owning stocks is a positive sum game as money reliably flows from customers of profitable businesses to the owners.”

I spoke of PROFITABLE businesses, like say over 90% of those in the DOW 30 or the S&P 500. There has never been a calendar year where the S&P 500 companies did not, in the aggregate, make money.

But think what you want… Someone will own those S&P 500 company shares, if not you then others. There are really only so many seats on the bus anyhow.

It’s why the rich get richer, they own profitable companies. Is that seat taken? yes it is as a matter of fact.

#65 Jeannie. on 01.25.14 at 12:14 am

Old Man; Nice post, commonsense isn’t so common any more.

#66 Shawn on 01.25.14 at 12:14 am

And the DOW only ever lost money in one calendar year, that was 1932 (my data go back to 1928)

The S&P 500 index did not exist until about 1949 and has never lost money on a calendar year basis.

Many investors lost money each year, but the companies don’t. Smart traders win, dumb traders lose, ALL buy and holders eventually win.

#67 Gg on 01.25.14 at 12:21 am

Wal-Mart Is Laying Off 2,300 Sam’s Club Workers

Great US recovery.

#68 Bigrider on 01.25.14 at 12:33 am

# 56 amazon girl.

Funny thing about basement dwellers and those so entrenched in their doom and gloom.

They can’t open their minds up to an opposite view and have to resort to quashing it in one form or another.

Sad and typical

#69 SkidRow on 01.25.14 at 12:36 am

http://www.youtube.com/watch?v=zLpWFhHKiV4

This is spitting distance from Cam’s condo. The absolute insanity that is Vancouver at every level.

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

#70 Andrew Woburn on 01.25.14 at 12:56 am

#84 Oceanside on 01.24.14 at 1:16 am
Nearly all the homes around Parksville and Qualicum Beach, both re-listed from last fall and new listings are all selling. Most for full price or close to….Seems there are a lot of people out there that were tired of waiting.
===============================

Same thing happened in North Nanaimo. It seemed to follow the commencement of direct flights from Calgary. Coincidence?

#71 not 1st on 01.25.14 at 1:49 am

Garth, guess what they are talking about in Davos

http://www.theglobeandmail.com/news/world/davos-diary-a-new-sense-of-dread-is-settling-over-the-worlds-elites/article16500943/?page=2

“Here’s what the world may look like, sometime in the 2020s, which for this crowd is tomorrow:

• The Internet changing the functioning of everything. Your hearing aid. Your snow shovel. Your shoes. Everything will be programmed, monitored and designed for what’s called “process optimization,” meaning a machine will run your life.

• Advanced materials changing the shape of everything, from airplanes (they have to be cylindrical because of aluminum) to rooftops (they have to be angled because of lumber). More mind-bending (literally): bioprinted organs based on stem-cell materials.

• Artificial intelligence changing the job of everyone. Emerging intelligent software can handle unstructured commands and rely on what we humans call judgment. Siri is about to get a PhD.

The consulting firm McKinsey & Company has tried to calculate how much the coming wave of disruptive technologies will change the global economy, and figures a dozen innovations like these could, by 2025, create up to $33-trillion a year in new economic activity. That’s $3,300 for every expected person on the planet.”

#72 Smoking Man on 01.25.14 at 1:51 am

DELETED

#73 KommyKim on 01.25.14 at 2:00 am

RE: #55 World According To Garth on 01.24.14 at 11:24 pm
Then they’res this:
http://www.principia-scientific.org/breaking-new-climate-data-rigging-scandal-rocks-us-government.html

It looks like someone has confused the thermosphere with the lower atmosphere. sigh.

#74 dosouth on 01.25.14 at 2:12 am

Unbelievable, I thought these snake oil salesmen were long gone. But Than Merrill is back in Vancouver this weekend spreading the gospel at his “Free workshop” about flipping……. Guess he has worn out his welcome in the U.S.

Snake oil salesman heads north

#75 Squish on 01.25.14 at 2:17 am

#14 OLD MAN, and #38 Retired Boomer.

Let me tell you, I’m in my 30s and most of my acquaintances (some much younger than I) who’ve purchased overpriced property they couldn’t afford did so under pretty strong pressure from their parents. It’s not just kids today deciding out of nowhere that they greedily want it all; the whole of society is sending them the message that they’re hooped if they don’t buy.

My husband and I happily rent, live well within our means putting money aside each month, and our parents bring up buying property constantly… ranging from offering downpayment or cosignatures (neither of which we’d need), to sending links to real estate listings (from across the country).

They did the whole buy inexpensively / what you can afford, renovate over years thing, but somehow they don’t want us to make those kinds of moderate, reasonable choices for ourselves.

#76 RVP on 01.25.14 at 2:43 am

A beater worth $5400! I know people in Surrey for whom a car worth $5400 is considered a luxury vehicle!

#77 Jane24 on 01.25.14 at 3:52 am

I never understand why in Canada this isn’t simply fraud.

Or why groups of buyers on condos that have not turned out financially as the original marketing pack said – don’t sue the pants off the developers and the any third party sales teams for unfilled promises.

Why does this not happen guys?

First daffodil in bloom today in my Southern England garden but still doesn’t make up for the wettest winter since records began here.

#78 NotInGastown on 01.25.14 at 3:58 am

But what am I to do without a car for 16 months or maybe more? It’s not clear if the Modo membership starts right away? And why doesn’t it cover the entire time I am carless?

I also have to point out as well that Cam Good was not involved in the Maddox fake buyer incident. Though he was a partner of MAC from 2004 to 2009, the Cams parted ways and Good founded The Key after.

The person responsible for the fake buyer incident has since left MAC and joined The Onni Group.

#79 gtrz4peace on 01.25.14 at 5:04 am

Dudes and Ms. Dudes — please, stop bashing Gastown! it’s really a nice part of the city for character, and the vibe, and what passes for architecture in Vancouver (we’re from Chicago, where there is real vintage architecture.)

That said, I have been hearing those “cars for condos” promotions and they did a little special on it on one of the radio stations. Of course 100% no one intimated there are any further monies involved and I listened interestedly also, because they make it sound like such a green, Vancouver-y thing to do.

Like PT Barnum says…

#80 My thoughts on 01.25.14 at 7:00 am

Realtors are working harder then ever. Turning down low commission clients and trying to go for the bigger commissions. A real turning point for those that have been in the business for awhile. Reminds me of that show million dollar listing. I feel like we are showing all the warning signs of the peak market, realtors coming after us aggressively as we did not “move up” in this crazy market. Invested well and made some good money in the markets. Struggling internally with the live below your means mentality. It helps sleeping at night :). Seeing the lack if planning in many ways by or parents has motivated us to invest in that early so that we can avoid worrying about that later. Another thing that helps you sleep well at night.

#81 DigDeep on 01.25.14 at 8:06 am

It is like the car and/or furniture business: “Every ass has a seat.” What this consumption based economy needs is more asses. And that is a sad road ahead indeed.

#82 GenXer on 01.25.14 at 8:12 am

“#13 LH on Cdn . $ decline.

I was thinking same thing. Declining $ just makes our houses cheaper to foreigners on a relative basis.

At some point the naisayers will have to throw in the towel, including our host.”

Actually, the opposite is more true. Canadians will have fewer dollars to spend on everything as goods become more expensive. This will have 2 impacts – less money to spend on housing, resulting in fewer buyers, and a slowdown in the economy which will result in less job creation – causing a further slowdown in housing.

Foreign investment makes up such a small portion of the market it will get crushed under the weight of these 2 impacts. That being the case, foreign dollars will move elsewhere compounding the lack of demand even further.

Anyhow, same coin, different side.

#83 Upper unionville on 01.25.14 at 8:28 am

Drove by the sales center for upper unionville at 630 this morning and the parking was packed with cars spilling out on to the road. There had to be 50 cars there. New home sales might have a been slow in the fall but from the December Sales stats and the look of that parking lot they are coming back strong.

2 Resale homes in my area also sold this after sitting on the market since October. Does not look like it’s going to be a slow spring in markham/unionville

#84 economictsunami on 01.25.14 at 8:55 am

The money being withdrawn from EM needs to flow somewhere.

Emerging Markets: And On It Goes:

http://blogs.wsj.com/moneybeat/2014/01/24/emerging-markets-and-on-it-goes/

The Wake-Up Call From China:

http://www.comstockfunds.com/default.aspx?act=Newsletter.aspx&category=MarketCommentary&newsletterid=1758&menugroup=Home

Nothing has been fixed nor resolved since the GFC of 2008.

Even the Fed has capitulated on a flood of liquidity aiding the real economy in a sustainable way; 5 years hence.

Obviously pressing the easy button has worked for Wall St casinos.

JP Morgan incurs $20B in legal cost due to sketchy financial activity and Dimon gets a raise.

The pellet gun penalties for possible illegal and risky behaviour are no deterent when you feel you’re bullet proof…

#85 bigrider on 01.25.14 at 9:29 am

RE -H1N1 Virus thriving and spreading in the GTA.

Not similar to the bird flu strain H1N1 ,the ‘H’ in the RE strain stands for “humpahoma” and the “N” stands for “notaportfolio”

#86 recharts on 01.25.14 at 9:45 am

I am seeing a surge in the infestation of this site with that pest called RE agent or pretentiously called Realtor.

All this agitation is part of their now beginning spring campaign.

The truth is that the investor is puzzled and must be an imbecile to invest in Canada at this moment. The CAD$ sliding just begun and the market is at the top. What you read below is just wishful thinking.
In the end ..why the heck should they invest in Canada where the market is as high as it can be when they can invest in US where the market still has room to grow?
Why invest in a country whose currency is currently being devalued? If there is any future in Canada’s economy and currency these two would be soaring at this moment…but they are not!

#82 GenXer on 01.25.14 at 8:12 am
“#13 LH on Cdn . $ decline.

I was thinking same thing. Declining $ just makes our houses cheaper to foreigners on a relative basis.

At some point the naisayers will have to throw in the towel, including our host.”

Actually, the opposite is more true. Canadians will have fewer dollars to spend on everything as goods become more expensive. This will have 2 impacts – less money to spend on housing, resulting in fewer buyers, and a slowdown in the economy which will result in less job creation – causing a further slowdown in housing.

Foreign investment makes up such a small portion of the market it will get crushed under the weight of these 2 impacts. That being the case, foreign dollars will move elsewhere compounding the lack of demand even further.

Anyhow, same coin, different side.

#87 NoName on 01.25.14 at 10:09 am

Interesting read

Big boys vs working stiff, or other way around.

“In early 2005, as demand for Silicon Valley engineers began booming, Apple’s Steve Jobs sealed a secret and illegal pact with Google’s Eric Schmidt to artificially push their workers wages lower by agreeing not to recruit each other’s employees, sharing wage scale information, and punishing violators. ”

http://pando.com/2014/01/23/the-techtopus-how-silicon-valleys-most-celebrated-ceos-conspired-to-drive-down-100000-tech-engineers-wages/

#88 jed on 01.25.14 at 10:11 am

#68 Bigrider

Funny thing about basement dwellers and those so entrenched in their doom and gloom.

They can’t open their minds up to an opposite view and have to resort to quashing it in one form or another.

Sad and typical
________________

funny thing about capitalist cheerleaders, they cannot discern the difference between ideological optimism and reality based data

#89 RVP on 01.25.14 at 10:12 am

@Squish #75:

“It’s not just kids today deciding out of nowhere that they greedily want it all; the whole of society is sending them the message that they’re hooped if they don’t buy.”

I agree with that. The only way to resist that kind of pressure is to be able to think for yourself–a skill many young people today sadly lack. I am actually not talking about millenials because I think they are starting to wake up and think for themselves at least a little bit simply as a result of being shut out of the economy–that forces you to think for yourself because you realize something is very wrong with the society when you are excluded from the economy in that way. I am thinking more about people in their 30s–prime house buying age. I think that generation really is unable to think for themselves. They just parrot memes they pick up in the media and from social interactions but they show very little ability to come up with original thoughts and be able to see through BS. They just automatically cave to the social pressure to buy real estate really without thinking about it. It is just assumed that buying is always better than renting. You don’t have to be a financial expert to be able to see that real estate is way overpriced and renting is the way to go–especially in Metro Vancouver. I don’t have much financial knowledge but I could see real estate was way overpriced long before I ever found Garth’s blog. It’s like people have no way of assessing inherent value of something to see that there’s no way all these crackshacks should be worth over a million dollars.

#90 Big Brother on 01.25.14 at 10:53 am

#72 Smoking Man on 01.25.14 at 1:51 am
DELETED

MKULTRA says save your best rants for tonight at Seneca Casino! We will be watching you.

#91 say it ain't so on 01.25.14 at 11:10 am

US payroll employment growth peaked in 2011. it’s going to collapse this year, and by the end of the summer, there will be job losses and the US in recession again..

unless of course, the US economy can start creating 300,000+ jobs a month now. fat chance.

#92 dogman01 on 01.25.14 at 11:39 am

#89 RVP on 01.25.14 at 10:12 am

“I think they are starting to wake up and think for themselves at least a little bit simply as a result of being shut out of the economy–that forces you to think for yourself because you realize something is very wrong with the society when you are excluded from the economy in that way.”

Bingo! – Out of University during the 90’s recession – Huh? Where is my job? Why is everyone older than me have good jobs I can’t seem to get? Why are my friends all stalled and some self-destructing?

Why is this not working for us?
How does this actually work?

I have been questioning ever since and wonder why other don’t seem to.

When the system works for you there are few questions …meh? what is to question.
I see some questioning generations coming ; it will be a much needed change.

#93 Bigrider on 01.25.14 at 11:58 am

# 88 Jed.

You are obviously new here. Look back through my posts going as far back as when blog started. It will be clear that my position on RE prices is as bearish as they come.

It is precisely the data you mention that is forcing me to re evaluate or at least question my position.

No idealism here. Just a healthy and impartial re examination of the whole thesis of this” impending RE price correction ” which by every observation is nowhere near.

#94 shane on 01.25.14 at 12:17 pm

Garth, are syndicated mortgages a good investment would you recommend?

Now, why would you take on that risk? — Garth

#95 bentoverpayingtaxes on 01.25.14 at 12:38 pm

#59….bwahahahahahahahahahah…you said..”Trying to describe all of Vancouver as a cesspool does nothing to help your argument. Much of the city is very nice. There are homeless problems but those exist in any major city.”

Whitewashing Vancouvers problems with dismissive commentary is like saying Fukushima was a ‘minor issue related to global warming’….or….’the nazi party was just a case of boyz being boyz’. Lets remind ourselves that Vancouvers own shitty hall spokes department has admitted to the cities rat and roach problem…….that the Bedbug Registry has Vancouver as an epidemic zone….that rape is epidemic according to local news outlets….that gun deaths and violence are out of control….that the poverty and homelessness are worse than any city on the planet….that Environment Canada and the Suzuki Foundation have successfully taken Vancouver to court over the approx 800 million liters of raw sewage and hospital waste that is pumped in the supernatural waters every day….thaT 99% OF GROUNDFISH ( INC SHRIMP AND COD) SHOW SIGNS OF PRECANCEROUS LESIONS FROM HEAVY METAL EXPOSURE) that the state of Washington has officially complained offinding toxic viruses on the beaches escaped from hospital outflow from unchecked effluent. That if you care to look there are signs ( tiny) posted warning of a high coliform content…..that the city has a crew rake the feces of English Bay Beach every morning when the tide goes out…..that Jericho Beach is two feet thick with green gloppy sewage and waste at low tide….that drug use ..open and criminal is out of control…..that more citizens have been killed while encountering police than in the Canadian Armies last year in Afghanistan…..that break ins and personal crime are highest in Canada…..that even the courthouse workers complain of bedbugs infesting the courtrooms……that Vancouver is the city most devoid of culture….no galleries..no museums….no music scene…no art scene….no dance scene…no theater…..no cool neighborhoods……but man can we spend millions on bike lanes for the rich civil servants to glide through red lights to get to their overstuffed chairs to wank the day away at city hall…..lets not get me started…..this is only the tip of the iceberg….Vancouver is disguised under a blanket of rabid publicity…..in fact…..a binghole of epic proportions.

#96 Cyclist on 01.25.14 at 12:55 pm

76 RVP – you could also land this beauty. That price is
the upper end of the sweet spot

http://www.trekbikes.com/ca/en/bikes/road/endurance_race/domane_5_series/domane_5_9_compact/#

12C yesterday. Left work early and finished ride when
it was still 9C. Tomorrow should be awesome.

“Every season is riding season”

#97 Ogopogo on 01.25.14 at 1:23 pm

Ah, Cam Goof, the greedy lil’ imp. We spend nearly half of that carrying cost renting our luxury unit in downtown Kelowna, all the while laughing every month as our self-directed investments spit out wads of cash.

Isn’t it beautiful to be a contrarian? Plus, you get to laugh at the lowing herd. Priceless.

#98 Ralph Cramdown on 01.25.14 at 1:30 pm

#94 shane — “Garth, are syndicated mortgages a good investment would you recommend?”

Is it being sold to you by a guy in a shiny suit for a percentage, with glossy pamphlets and a fancy website? Then it probably isn’t a good investment.

There’s people who lend money for a living. Bankers, finance specialists… How come they’re not lending?

You have to do your due diligence. Is the raw or serviced land worth more than the syndicated mortgage and all senior charges, with a healthy margin of safety? Does the developer have a good track record, capability for this project, how many units are presold, and to whom? If you can’t do this evaluation yourself, hire somebody who can, which means invest in a bank or a lender.

#99 Ralph Cramdown on 01.25.14 at 1:38 pm

#84 economictsunami — “The money being withdrawn from EM needs to flow somewhere.”

Withdrawn? I think not. Just because EM market caps went down (say) $50B doesn’t mean that some lucky investors sold $50B worth, nor that those remaining could sell their stakes at only a $50B loss. Likewise, if you own a house and values in your neighbourhood go down by $50k, nobody “withdrew” $50k in equity from your house. A few guys may have sold at the top, but their gains don’t balance the neighbourhood’s losses in any mathematical way.

“Emerging Markets are markets you can’t emerge from when there is an Emergency!” — Don Coxe

#100 TnT on 01.25.14 at 1:39 pm

#95 bentoverpayingtaxes

Please tell me you typed that with one hand because the other one was in a fist shaking in the air

I love it :)

#101 shane on 01.25.14 at 1:54 pm

#99 thanks for the advice..I was curious on how they work.

#102 Ralph Cramdown on 01.25.14 at 2:06 pm

More good news for Canadian telecom shareholders, courtesy of your friendly mortgage broker:
http://www.mortgagebrokernews.ca/news/equifax-report-frustrates-broker-176212.aspx

#103 TurnerNation on 01.25.14 at 2:35 pm

#20 kitchener on 01.23.14 at 8:46 pm

That’s nuts.

Success forged in the fire of futility.

#104 not 1st on 01.25.14 at 2:38 pm

Garth, your inflation theory of growth is going to need modification because technology is going to bring the price of everything way way down starting with displacing expensive labour, then real estate like retail outlets.

Here is Apple’s new factory repatriated to the U.S, but this time with a lot of robots and very few people.

http://www.youtube.com/watch?v=IbWOQWw1wkM

so the central bank pumps in trillions in stimulus, companies use it to make efficiency gains, cut labor and other expenses and lower prices more.

#105 Son of Ponzi on 01.25.14 at 2:42 pm

#64

Ponzi at 54 have the decency not to misquote me. Cut and paste, my friend.

“…owning stocks is a positive sum game as money reliably flows from customers of profitable businesses to the owners.”

I spoke of PROFITABLE businesses, like say over 90% of those in the DOW 30 or the S&P 500. There has never been a calendar year where the S&P 500 companies did not, in the aggregate, make money.

But think what you want… Someone will own those S&P 500 company shares, if not you then others. There are really only so many seats on the bus anyhow.

It’s why the rich get richer, they own profitable companies. Is that seat taken? yes it is as a matter of fact.
————————
I like the bus analogy:
The 1% are in the driver’s seat.
The rest are in the back.
Not me.
As the Eskimo saying goes: “If you’re not the lead dog, all you ever see is asses”.

#106 amazon girl on 01.25.14 at 2:45 pm

Amazon girl to Bigrider at#68 at #93
The sad part is nothing healthy about you.
Your never here since the blog started,you jump in and
out in your convience. To judge people or put your
opinion disregarding the article.
I am not a basement dweller and if I was is not your
concern.MY protofolio can buy you out anytime…
Sad and Typical, I waist my time talking to you
We are done here.
Welcome Jed at #88

#107 Shawn on 01.25.14 at 3:27 pm

NO CAPITAL was WITHDRAWN from Emerging Markets this Week. NONE.

Ralph at 99 said:

#84 economictsunami — “The money being withdrawn from EM needs to flow somewhere.”

Withdrawn? I think not. Just because EM market caps went down (say) $50B doesn’t mean that some lucky investors sold $50B worth, nor that those remaining could sell their stakes at only a $50B loss.
***************************************

Correct, no $50 billion is removed when market caps of emerging markets, New York or houses go down.

In fact, not a penny is withdrawn when traders bid prices down. For every seller there was a buyer. (Ponzi feel free to wrongly extrapolate this to the ide that the market is a zero sum game)

Argentina may have more trouble attracting new capital to NEW issues of bonds and stocks NEXT week. But EVERY pezo that was raised prior to Thursday’s rout remains in the hands of the Argentinians. The fact that North America traders exchange ownership of the existing stocks and bonds has ZERO impact on the amount of capital in Emerging markets.

This is a common misconception because 99.9% of analysts will speak of investors withdrawing funds from markets on down days. It is true, that INDIVIDUAL investors can with withdraw their funds, but only if another investor gives them those funds in exchange for their shares. Investors as a POPULATION are powerless to withdraw a dime of money from markets onece it has been raised in new issues. (Companies can send money out as dividends and buy-backs but with very rare exception (retractable shares) investors as a population are powerless to withdraw funds.)

What happened last week was that investors bid down the price to be paid for shares and bonds and some currencies.

Such news of withdrawal is even less real than other promises to use the “withdrawal method”.

Even individuals who promise to use the withdrawal method in the markets, before trouble arises, though they can, rarely do.

Some have argued that saying capital was withdrawn is okay because people understand what it really means. I doubt that.

#108 Shawn on 01.25.14 at 3:33 pm

NO LOSSES ON DOW AND S&P 500

My comment at 66 about no losses on the indexes in calendar years (except 1932) referred to profits of the companies, not market values. My posts at 64 and 66 go together.

If the companies made profits every year, what do you think happens to long term holders of those indexes? They made money. Each and every investor who has held the DOW index or the S&P 500 for long periods like 30 years has made money (pre-tax and pre-inflation). In most 30 year periods they made a very good return.

As Ponzi points out trading is a zero sum game. Do it carefully. Buying and holding a broad index is safe in the long term as long as you ignore the ups and downs. (Better yet, invest more on dips).

#109 Shawn on 01.25.14 at 3:45 pm

ALL ABOARD THE BUS THE RICHES

Ponzi at 106 said:

I like the bus analogy:
The 1% are in the driver’s seat.
The rest are in the back.
Not me.
As the Eskimo saying goes: “If you’re not the lead dog, all you ever see is asses”.

***************************************
Actually yes some 1%ers drive buses (own private companies, or are executives at large companies)

Many 1%ers sit in the other seats by owning shares in large profitable companies. The executives and founders of those large public companies are in the drivers seat. But wise 1%ers ride their coattails.

But there are only so many seats (shares) and while most people can afford at least a few shares (even through ETFs or mutual funds with the help of advisors) , the bottom 20% certainly can’t. And new seats are being added all the time (share issuances by good companies)

These busses have been making a meandering drive ever higher up a mountain of wealth for 400 years now. (It started with the Dutch West Indies Company which was the first publicly traded company with perpetual shares and first traded in Amsterdam around 1611).

Now the road up this mountain of wealth has many switchbacks but over time the direction is clear.

Those who hope to be rich are wise to “get in, sit down, buckle up and shut up”. Either buy broad indexes or choose your buses very carefully.

#110 Victor V on 01.25.14 at 3:53 pm

http://www.thestar.com/business/real_estate/2014/01/24/are_auctions_the_answer_for_torontos_hot_house_market.html

Australia has one of the strongest home auction market in the world, accounting for close to 20 per cent of all real estate deals and picking up steam, says Sydney-based realtor Angus Raine, CEO of the country’s oldest (130 years) and third-biggest brokerage, Raine & Horne.

He believes the traditional system — where potential buyers are bidding blindly against an uncertain number of competitors — is “messy,” in need of transparency and based on flawed property assessments, historic sales, that can be badly dated.

“You’re looking in the rear-view mirror when all the action is in the traffic ahead.”

Underlisting has, in theory, been outlawed by some Australian states: Realtors can face fines of $22,000 if properties are priced more than 10 per cent above or below comparables, says Raine.

Bidders are also vetted to make sure they aren’t neighbours, or agents of the sellers, looking to drive up bidding for personal gain, said Raine. But so far, at least, they’ve taken off largely in urban centres and high-end neighbourhoods, but not so much among seniors.

#111 World According To Garth on 01.25.14 at 4:15 pm

You mean like those fake climate scientist dudes who got Frozen in the ice during Antarctica’s summer? Just cuz you have masters in “ammonia in squid” from McGill does not make you a Climate Scientist. This whole “thousands of scientists” crap is just that. It’s called” do you want to get funded next year? Then tow the line”.

————————————————————–

#73 KommyKim on 01.25.14 at 2:00 am
RE: #55 World According To Garth on 01.24.14 at 11:24 pm
Then they’res this:
http://www.principia-scientific.org/breaking-new-climate-data-rigging-scandal-rocks-us-government.html

It looks like someone has confused the thermosphere with the lower atmosphere. sigh.

#112 Humpty Dumpty on 01.25.14 at 4:33 pm

Abenomics…

Infamously saddled with a public debt that is running at an eye-watering 214 per cent of GDP, the Japanese government is planning to raid dormant private bank accounts to boost its bottom line.

The ruling Liberal Democratic Party and its main ally in government, New Komeito, are planning to submit a bill to allow the government to access bank accounts that have not been touched for 10 years or more. The funds would be used for welfare and education projects.

Accounts holding some 85 billion yen (HK$6.3 billion) are classified as dormant each year, with depositors who are notified of the situation reclaiming about 35 billion yen.The new legislation would therefore free up about 50 billion yen each year.

That however is dwarfed by the debt, which exceeded 1,000 trillion yen last year – that’s a million billion.

#113 Humpty Dumpty on 01.25.14 at 4:34 pm

http://www.scmp.com/news/asia/article/1410614/japan-plans-raid-dormant-bank-accounts-raise-new-revenue

#114 Chickenlittle on 01.25.14 at 4:43 pm

#89 RVP:

You are so right.
I’m in my mid 30s and am a renter. I know my friends look down on my husband and I because we rent.
Very few people our age can think for themselves. All I hear is “Do what you want and live how you want. We don’t judge. No! Not like that….” You can do what you want as long as it falls within the specified perimeters. So much for a “free thinking” society.

Poor Old Man!
All you did was suggest that loyalty, prudence, and thrift are virtues to strive for. How DARE you force your old fogey notions on us?!? ;) Those girls probably have huge mortages so that’s why they’re angry. I never thought I’d see this day, but it is true: right is wrong, and wrong is right. Everything is backward.

#115 Snowboid on 01.25.14 at 6:38 pm

#97 Ogopogo on 01.25.14 at 1:23 pm…

Couldn’t have said it better, well done!

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

#102 Rexx Rock on 01.25.14 at 2:05 pm…

Agree with most of what you said, except you left out the part about the corrupt government, including the local police, military and Federalis.

Not to mention occasional shootouts between the cartels and Federalis – who now have US supplied Blackhawk gunships.

Or the shootouts between the cartels themselves, or recently the vigilantes and the cartels and the military!

#116 HD on 01.25.14 at 7:45 pm

Shawn: Correct.

Son of Ponzi: Wrong.

Best,

HD

#117 YVR on 01.25.14 at 8:03 pm

Actually you don’t need a 15% correction in condo prices to lose big time. A brand new condo (which is what you are buying) is worth more than a 5 year old used condo which is what you will be selling after 5 years. Also since it is a presale the actual fair market value is yet to be determined. Even with flat prices often presales cannot fetch the presale price after completion on the MLS. The condo will be worth far less in 5 years even with no correction.

#118 HogtownIndebted on 01.25.14 at 8:24 pm

Been away a lot lately, but this week have been driving a lot around the centre of Toronto (i.e. not Ford nation areas, but Bloor West and midtown areas)

It is really eye opening how many small shops and businesses have closed in just the last couple months.

NOW magazine (can’t seem to find the online link for this section, but it’s on p.10 this week) in its Cityscape section points out that the huge billboard over Yonge Dundas square has been empty since before Christmas. I remember seeing it blank in November and thought that would just be temporary. No one wants to put an ad on probably the most prominent outdoor spot in Canada?

Things here are seeming weaker than the usual January letdown.

#119 Smoking Man on 01.25.14 at 8:26 pm

Pretty slow day in the land of greater fools.

Alcohol starting to take its toll on me, this morning for example, when trying to talk I could not put one sentence together.

I see I have a delete up top, how is this even possible, to avoid last week, I left the phone in the room.

On a bright note, last week I emailed Christy Blackford from National Post chirping her for running with the herd, bashing Ford.

She chirps back, nice. Demanded my real name, I said it’s Blithe Barrington, and sent a Conrad Black style response, welcomed her to Google dyslexic smoking man.

If she did, to be a fly when reading the story of Smokey and his friend.

Ah, I’m such a shit disturbed.

#120 Blinders off on 01.25.14 at 8:33 pm

Just to add to the doom and gloom, check out Dr Helen Caldecott on Fukishima .!!

#121 Retired Boomer - WI on 01.25.14 at 8:45 pm

#75 Squish

Anybody in their 30’s (any age really who is independent) should NOT bow to the pressures of anybody, parents, fashions, trends, media to BUY a dam thing!!

That is how people do foolish crap. If your parents are hinting that you NEED to by a house, just tell them to piss off. It is YOUR life, YOUR money, YOUR timing.

That’s a stupid as telling your children they should have kids.

Suggest you re-read post #14 for the “time-line” effect.
I’m a “boomer” as the name implies, a member of the LARGEST contingency of people ever born in the US and Canada. Our parents paid higher taxes to build new elementary & high schools to educate us, we all hit the job markets roughly together. Yeah the first had their choice of good jobs, the last suffered much more.
Now, the leading edge is in retirement, debilitating, and costing the rest a ton in up coming health and retirement costs!
Sure, a lot of us own homes that will hit the markets over the next couple of decades, as we hit room temperature.
If the home buying crowds wish to pay a very dear price NOW, by all means let them. The smarter ones will see the demographic shift coming, and buy at a much better price later. Simple supply and demand, my young friend.
The point of #14 and my comment is that common sense trumps parental pressures -ALWAYS!!
You are very wise to rent, save your money, and disregard the parental units advice. It is rather clear you are in the minority, as I see a “gotta have it now” in the younger generation. Who saves and pays cash for a car? Furniture? Who save UP for discretionary purchases today? Dam Few!
Alas, it is true that the “rich get richer” but, that’s only because we learned not to be stupid early, and changed our ways.
If I had to do it all over today, I would definitely RENT.
More because of the accelerated velocity of change -especially in employment. While my generation had generally 1-3 good jobs over our working career, I doubt many in their 20’s-30’s will be afforded those terms.
It is NOT the same world, and worse a guy in his 60’s can never fully understand the life of today’s 20 or 30 year olds. While I think you are doing what I would do, as it brings flexibility & choices.
Buried under RE gives one few choices.

#122 Daisy Mae on 01.25.14 at 9:19 pm

#115 ChickenLittle: “…right is wrong, and wrong is right. Everything is backward.”

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

LOL I’ve been saying that for years! All the wrong people have the rights! ;-)

#123 Daisy Mae on 01.25.14 at 9:36 pm

“So, some people see Cam Good as a pricky little self-lubricating, manipulating, fabricating flogger whose tools of choice are fear and fiction.”

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

Well, that’s a mouthful! Your writing style is great — love it!

#124 Chickenlittle on 01.25.14 at 10:02 pm

#123 Daisy Mae:

You’re right!! The bad ones get all the breaks and us honest stiffs get shafted. Smoking Man is right….you can’t be honest anymore!

#125 HD on 01.25.14 at 10:03 pm

@ #122 Retired Boomer – WI on 01.25.14 at 8:45 pm

Great post!

From a 29 year old, thank you :)

Best,

HD

#126 Smoking Man on 01.25.14 at 10:20 pm

Chicken little

In the make belief world, superman always beats Lex Luther, Batman always beets the Joker.

In real life, Lex and the Joker rule the world.

Pick your Alliances carefully.

Humans naturally root for Batman and SuperMAN

It’s just schooling.

The dark side is way more fun.

#127 Smoking Man on 01.25.14 at 10:38 pm

#122 Retired Boomer – WI on 01.25.14 at 8:45 pm

Your generation had 1 to 3 jobs.

The only way for the young today to succeed is to be self employed, sell shit, rape your customers while creating an illusion your making love.

The love you while you bank happy endings.

Why can’t I get through to anyone.

#128 what bubble? on 01.25.14 at 10:51 pm

Checked two open houses today, first was mediocre semi, around 1500 sq. feet, practically no backyard noisy location – sits on Rutherford and other busy street intersection – asking 735000. For 1500 sq. feet semi. In Thornhill Woods. The open house agent told me – “you should understand a very simple thing: market dictates the price. Do you know, spring is coming and there are bidding wars in Toronto downcore” I left, thinking, that the agent had herself slightly disattached from reality… but in the second open house the situation repeated itself – what does that surrealism mean? Thanks to extravagant Canadian government we are going to live with emergency low rates for indefinite long time? Does that mean that Canadian economy will stay indefinitely long in that emergency condition? Or does that mean that emergency economy is something Canadians should be proud of: Canadian real estate bubble is the bubbliest bubble in the word – real estate agents and greater fools are the most valuable commodity produced in Canada, they should be nourished and cultivated in massive amounts as they are the only hope for Canada. Those idiots at Davos talking about innovations – stupid – come to Canada learn the better way – perpetual RE bubble – time to relax, drink champagne and sing the Beatles songs for Benjamin Netanyahu.

#129 $$$BPOE#1$$$ on 01.25.14 at 11:07 pm

God Bless Cam, Tsur Sommerville and Bob Rennie. 3 of the smartest men walking the planet today. Their intelligence and good will have secured the family fortunes of thousands, Renters continue their walk of shame almost 14 years later when the triumph of Vancouver began its meteoric rise. 14 years later with additional payments and you are in the Winners Circle. Mortgage paid in full! A renter can never retire. The idea of rent and invest the rest is the biggest myth out there. Only a small fraction of renters have the ability to accomplish this feat. Most renters rent because they cannot manage their money and have no pride. True pride which comes with ownership. Join us in the Best Place On Earth. Warmest temps in the Country folks. Buy now or be priced out FOREVER

#130 Herb on 01.25.14 at 11:08 pm

#120 Smoking Man,

a “shit disturbed” you certainly are, Dear Boy!

#131 Smoking Man on 01.25.14 at 11:30 pm

Going to profile our great leader, the Amazing word Smith, sir garths a lot.

The man really cares, he wants to help the schooled with investment ideas, the dudes got to eat. Charges a small fee, for safe returns.

My buddy Ed, fellow charmin at Seneca, needs advice, his dad bought the farm left him a small fortune, I made the mistake of showing him my p&l sheet of my foex insanity, gambling addiction flip the coin success.

I offer him up annual return of 10%

I say if you are ready smart, I gave him garths, tell and email.

He goes f-you.

I want 50 to a hundred %

I give you a future homeless person.

Hope he calls you garth.

#132 Bottoms_Up on 01.25.14 at 11:37 pm

#122 Retired Boomer – WI on 01.25.14 at 8:45 pm
—————————————————-
Isn’t telling someone to rent, or that you would rent ‘if you had to do it all over again’ basically as bad as telling them to buy, or to have children? Shouldn’t it be a personal decision that accounts for the multitude of factors in each person’s life?

And besides, it’s easy to say ‘with the demographic shift, there will be a flood of homes and prices will drop drastically’. However, what will really happen will depend on millions of individual factors that coalesce to impact the market to X percent over Y timeline.

In my opinion, the best time to buy Canadian real estate will be around the year 2050.

I simply examined the trend of what older people do (they try and stay in their homes until physically unable, let’s say around 80-85 years old). Leading edge of Boomers are 66, thus they will stay in their homes for another 15-20 years (years 2029-2034). After that, the leading edge will start to die off in significant waves (beginning a wave of estate sales, combined with selling for physical and possibly financial reasons), but the middle of the Boomer pack will still be clinging to their homes. So it won’t be for another additional 15 years before the middle of the Boomer pack is dying off leading to a maximum rate of estate sales and sales for physical/financial reasons.

Therefore, simply wait until 2050 and you will have your pick of the crop of housing out there (maybe).

#133 Bottoms_Up on 01.25.14 at 11:41 pm

#115 Chickenlittle on 01.25.14 at 4:43 pm
—————————————
You need a new circle of friends.

#134 Bottoms_Up on 01.25.14 at 11:44 pm

#89 RVP on 01.25.14 at 10:12 am
————————————-
Way to generalize, nice.

ps. houses inherently have value because of the land they sit on. Crack-shacks aren’t worth millions; it’s the land they sit on that holds the value. That’s why the price of apartment-style condos in major cities is so flabbergasting….

#135 Bottoms_Up on 01.25.14 at 11:50 pm

#14 Old Man on 01.24.14 at 7:44 pm
—————————————-
Another good job at generalizing.

Why is everyone assuming all these “30-somethings” are the ones buying massive McMansion’s out of their league? Real estate is being purchased by all walks of life, Canadian and foreign, young and old, rich and (unfortunately) poor, intelligent and stupid etc.

And there is one thing for certain–those taking out mortgages are being scrutinized by the banks for job stability, debt load and ability to service the mortgage. To think otherwise is foolish.

#136 Retired Boomer - WI on 01.26.14 at 12:11 am

#122 Smoking Man

To an extent, I agree with you! As a guy who was in sales much of my life, it is THERE where you can “write your own ticket.” Also the son of two business owners, I have seen that side of the business world as well. Both are good, both have no real limit on your earnings, both require expertise in management, people skills a bs in BS if you know what I mean.
Where I disagree with you, is that to be really successful you do NOT screw people. You really do your utmost to help them succeed. When others succeed with your products you have a friend, and a steady income steam.
The most truly long term successful people I have ever met have the highest ethics, honesty, and integrity I have ever seen. Others might have been successful too, but the really outstanding ones have nothing but the BEST reputations, honestly earned!

sorry SM, but that is what I have seen in my life. Maybe I have lived in a bubble, but it is a dam nice bubble.

#137 Retired Boomer - WI on 01.26.14 at 12:18 am

OOPS Smoking Man at #128 not 122 fat fingers…

#138 Retired Boomer - WI on 01.26.14 at 12:45 am

#133 Bottoms_UP

In my post I said “If I had to do it all over again (today) I would rent…… That’s just me -MY opinion.

WHY? Because some Canadian, and some US markets do not reflect decent values in a Buy vs. Rent scenario. When I can RENT a comparable home / apt / condo for a significant discount over buying, I will RENT.

Actually I am a home owner. Built the place 15 years ago, in a small town, worked from home since that time until I retired 2 years ago. Good gig too.

If I were in the TO metro area, I would probably rent.
London maybe buy, Windsor probably buy…assuming the place was well priced, and suitable financing to income prevailed. All RE is very local in nature. The desire to own over renting is a personal decision. I fail to see a significant cost advantage to own over Rent.

My home is paid for. The monthly taxes, utilities, insurances, opportunity costs on invested money, repair – renewal expenses estimated “costs” $1200-1400 a month. Rents in this area are somewhat lower.
Where is my owner advantage? There really is not one, except to say ‘its mine.’

I kind of like it that way, but that’s a decision we made when we decided to build the place.
Right here, I would probably build again.

#139 Priced out on 01.26.14 at 1:44 am

#24 TnT on 01.24.14 at 9:00 pm
We don’t keep stats on foreign ownership however we do keep stats on our citizens who are in debt beyond their eyeballs and yet these houses keep selling…. hmmm

Agreed: The government knows how many of us are circumcised and the length of our penises. How is it they don’t know how much property foreigners are buying.
They don’t want us to know because if they can pump real estate before the next election they will get the vote of the 70% owners.
They are in the life raft. To hell with the rest of you in the water!
Real estate is not supposed to be another commodity on the Futures exchange! It is a life giving need! There should be a 25% surcharge on Foreign buyers purchasing in this country to calm the Hot money. But how can you ask our government to do that when they can use our futures to their advantage?

#140 diharv on 01.26.14 at 3:36 am

#130 $$$BPOE#1$$$ on 01.25.14 at 11:07 pm
There is only one word that comes to my mind when I read your posts : IDIOT

#141 Buy? Curious? on 01.26.14 at 3:50 am

Oh, Bigrider, you silly goose. Your comments remind me of when irresponsible dog owners fail to clean up after their pets’ fouling of parks and sidewalks. Get back on your tricycle and go home. And take your shoeshine box with you!

http://www.youtube.com/watch?v=7wVagQ_LVd4

#142 Eaglebay on 01.26.14 at 9:10 am

#95 bentoverpayingtaxes on 01.25.14 at 12:38 pm

Now, how about Surrey?

#143 Eaglebay on 01.26.14 at 9:34 am

#116 Snowboid on 01.25.14 at 6:38 pm
“Not to mention occasional shootouts between the cartels and Federalis – who now have US supplied Blackhawk gunships.”

Sounds more exciting than Boring Arizona with all the El Cheapos. And no water…

#144 jess on 01.26.14 at 9:54 am

Transparency?

http://www.bbc.co.uk/news/business-25855201
US charges accountants over China

Hong Kong System
Paul Gillis, an accounting professor at Peking University in Beijing.
http://www.chinaaccountingblog.com/

26 January 2014
China court sentences Xu Zhiyong to four years in jail
A Chinese court has sentenced prominent human rights activist Xu Zhiyong to four years in prison.
Xu, who campaigned for children’s rights and against corruption, was convicted of “gathering crowds to disrupt public order”.
Several other activists from a transparency movement are facing similar charges.
===========

On January 11, 2014, marking the one-year anniversary of his death, a sneak preview was released from The Internet’s Own Boy: The Story of Aaron Swartz,[120] a documentary about Swartz, the NSA and SOPA.[121][122] The film was officially released at the January 2014 Sundance Film Festival.[123] Democracy Now! covered the release of the documentary, as well as Swartz’s life and legal case, in a sprawling interview with director Brian Knappenberger, Swarz’s father and brother, and his attorney.[124]. The documentary is to be released under a Creative Commons License[125]
http://en.wikipedia.org/wiki/Aaron_Swartz
————————-
Stop the Rot

Freedom of the Press Foundation
powered by SecureDrop, “an open-source whistleblower submission system”
The code for SecureDrop was originally written by the late Aaron Swartz, a 26-year-old computer programmer and open-government activist who – facing prosecution for downloading paywalled academic research articles – committed suicide a year ago today, January 11, 2013. In creating SecureDrop, Swartz was assisted by Wired editor Kevin Poulsen and security expert James Dolan, who has continued to refine the program’s code with the Freedom of the Press Foundation. The Foundation continually audits and tests SecureDrop’s security.

The Freedom of the Press Foundation exists to defend and support “aggressive, public-interest journalism focused on exposing mismanagement, corruption, and law-breaking in government”.
http://www.theglobalmail.org/blog/introducing-the-tgm-securedrop-vault/797/

#145 Ralph Cramdown on 01.26.14 at 10:56 am

#135 Bottoms_Up — “[H]ouses inherently have value because of the land they sit on. Crack-shacks aren’t worth millions; it’s the land they sit on that holds the value.”

It’s the land they sit on that has the value. There’s nothing inherent about it, and no guarantee the land value will hold. Land value is the market price of the biggest house that could be built on the lot minus demolition and construction costs and speculator/contractor profit. If the market value of that new build goes down by 20%, or even if speculators get nervous and factor in bigger profits for their risks, I’ll let you do the math on the crack shack’s market value.

“In the GTA, low density land and detached new home products saw a 79% increase in price per acre since 2005. However, low density land values fell 16% over the first six months of [2013].” — http://business.financialpost.com/2013/08/07/builders-bet-housing-boom-ending-as-residential-land-investment-falls/

“And there is one thing for certain–those taking out mortgages are being scrutinized by the banks for job stability, debt load and ability to service the mortgage.”

Read mortgage broker blogs and you’ll discover that banks are stricter when considering non-insured mortgages, in some cases demanding the borrower purchase insurance anyway or stump up a bigger downpayment for a lower than 80% LTV. That means mortgage insurers’ underwriting is currently looser than the banks’ own. You’ll also find out that there’s many subprime lenders and credit unions writing business that the banks won’t.

#146 TurnerNation on 01.26.14 at 10:57 am

#95

One point of interest there. I remember the days when police would arrest with “Put your hands behind your back, you’re under arrest.” Quaintly so.

Today a pack of 2-5 officers will yell “Get on the ground! Get on the ground!” and body slam, pin and pummel. At which point, if the target is lower middle class or lower will be charged with “Resisting arrest” or “Assault on a peace officer”.
With a wink and a nod to their fraternal brothers in court, this will becomes law.
Man-as-god. Another must be sacrificed. Their system demands it. They rove in packs, looking. None are more targeted than those suffering spiritually: the homeless, street addicts. Easy targets.
They’ll deny or avoid, but after 10 years without car in Toronto, walking to work and transit otherwise, I watch them and the street closely and listen. Saw the chief in the airport once. Now there’s a man, haunted. Even if his hands are clean. Cannot speak.

Anyway,I read this brand new from the library:

http://www.amazon.ca/Vancouver-Was-Awesome-Curious-Pictorial/dp/1551525259

Vancouver Was Awesome: A Curious Pictorial History

#147 ivec on 01.26.14 at 12:18 pm

Can’t wait for 5-10y from now when they release the real estate version of Wolf of Wall Street :). I can already visualize DiCaprio giving the buyer two middle fingers while insisting they go 100k over asking price while doing Tony Montana lines.

#148 Victor V on 01.26.14 at 12:28 pm

http://business.financialpost.com/2014/01/25/zero-savings-a-fifth-of-canadians-put-nothing-aside-in-2013/

Almost a fifth of Canadians saved nothing at all last year, not a cent.

Blaming bills or debt or a lack of funds, 17% of individuals polled by Pollara for BMO’s household savings report, said they couldn’t save.

Respondents cited insufficient income to save (69%), high expenses (67%) and debt management (50%) as barriers for meeting their savings goals.

There is a silver lining, however, as this figure dropped from 28% in 2012 to 17% in 2013.

“There’s a reason you see all of those debt commercials. People just don’t save anymore. You’re trying to keep up with the lifestyle that you can’t necessarily afford,” says Kayley L., a 26-year-old Toronto-area resident who went to college for sports management.

#149 Porsche on 01.26.14 at 12:30 pm

#128 Smoking Man

Why can’t I get through to anyone.
…………………………………………………………………….

Because you were put on ignore 6 months ago.

#150 Grantmi on 01.26.14 at 12:55 pm

#148 ivec on 01.26.14 at 12:18 pm

Can’t wait for 5-10y from now when they release the real estate version of Wolf of Wall Street :). I can already visualize DiCaprio giving the buyer two middle fingers while insisting they go 100k over asking price while doing Tony Montana lines.

Me too!

I can just picture in my mind a bunch or real estate agents sitting around the top agent listen to him make a close on the speaker phone call… and him doing the quarterback humping movement! Hut hut hut! BAM!!!! First sale in two months..

Next sucker!

#151 $$$BPOE#1$$$ on 01.26.14 at 1:55 pm

Still renting eh diharv? Stop being bitter. The renter as he/she gets older becomes a shell of a human being. Bitter, confused, their lack of decision making caused calamity in their life. Buy what you can afford. Make extra payments. Retire with a home paid off and peace of mind. Don’t be bitter. Buy and transcend the world. Love and Peace BPOE. Come join us in paradise
*******************************
#141 diharv on 01.26.14 at 3:36 am
#130 $$$BPOE#1$$$ on 01.25.14 at 11:07 pm
There is only one word that comes to my mind when I read your posts : IDIOT

#152 bentoverpayingtaxes on 01.26.14 at 2:10 pm

“Eaglebay on 01.26.14 at 9:10 am

#95 bentoverpayingtaxes on 01.25.14 at 12:38 pm

Now, how about Surrey?”

When I was in the real estate development biz we in the industry always referred to that side of the river as ‘The Sewer’……and so it has always been.

I’m sorry I can’t find the time to pull last weeks news articles of self loathing angst written by sewer dwelling pols and citizens after the stabbing of a woman outside the Newton Community Center….on 72nd & King George Hwy….the highway to hell at the corner/nexus of evil. Surrey is a hell hole of biblical proportions….there are no ‘good areas’ ….ethnic ghettos….working class poverty…..the welfare/junkie.hooker/lowlife slop that Vancouver sent there in an unsuccessful attempt to cleanse the streets for the Olympics….the town center of Whalley looks like something out of a zombie apocalypse movie……only the violence in movies isn’t real…..in Whalley people really get killed….a lot.

The sewer may be the pit bull in the yard capital of the universe…due to the property crime rate. I had people tell me that they have had the plant stolen out of their gardens……and children’s toys stolen from the back yards…..literally nothing is safe….and for gods sake never leave your car running while you dash into the house for a forgotten lunch box.

No one walks in the sewer…it is too unsafe….gangs of thugs from a certain community hunt for victims along the highways and the far reaches of dimly lit parking lots…….well reported in the local papers. The city has tried to appease that community by promising to spend millions on a giant ethnic only community complex…..now that 50% of the community is of that extraction…..don’t forget to watch the local pols walking in solidarity of Indian terrorists wanted for murder in the Punjab…….the Indian government has long complained….but a special situation exists in the sewer. The same community grew notorious in India using the same tactics of intimidating local governments in India….only they used machine gunning children in markets to get their way.

I read a study on schools from Surrey….showing that only 1.7% of all high school graduates qualified for University entrance due to poor grades. So….maybe its not a great place to raise your kids…..unless you want the peer pressure to turn them towards dope dealing and other sanctioned crimes.

Flush the toilet on Surrey…..and it will join Vancouver as the raw sewage pours out into the Bay. Maybe they should color Surreys turds so that we could see them float amidst the shame of our city fathers as we run along Vancouver’s famous seawall surround Stanley Park ….more like running along the rim of a toilet eh? I bet if her could Lord Stanley would be holding his nose.

#153 Snowboid on 01.26.14 at 3:00 pm

#144 Eaglebay on 01.26.14 at 9:34 am…

“…Sounds more exciting than Boring Arizona with all the El Cheapos. And no water…”

Lo siento, pero lo que una declaración tonta!

You don’t have a clue about what’s it like to winter in Phoenix, do you?

#154 D-dawg on 01.26.14 at 9:46 pm

#153 bopt

Reads like the guy who posted here on the blog a while back that the slums of VanCity are unimaginably worse that the worst areas of London.

No clue and zero street ‘cred. Seriously, smarten up, bro.

#155 GPS on 01.27.14 at 6:46 am

How is what Cam doing not stirring up racism? Shouldn’t that be illegal?

#156 bentoverpayingtaxes on 01.27.14 at 1:05 pm

#155…..”No clue and zero street ‘cred. Seriously, smarten up, bro.”……..

‘Street cred’…..seriously….what are we ….five year old rapper ninja turtles?…..from the mean streets?….keeping it real……signed…Leonardo…..bro.

#157 economictsunami on 01.27.14 at 1:48 pm

Gayed: Something is ridiculously wrong…

http://www.marketwatch.com/story/something-is-ridiculously-wrong-2014-01-27?mod=wsj_share_tweet

#158 economictsunami on 01.27.14 at 2:23 pm

Hudson’s Bay to sell flagship Toronto store in $650-million deal Add to …

http://www.theglobeandmail.com/report-on-business/hbc-to-sell-flagship-toronto-store-in-650-million-deal/article16516753/

Retail commercial real estate is over-built and over-leveraged. (US)

http://www.oftwominds.com/blogjan14/CRE-deadwood1-14.html

#159 d-dawg on 01.27.14 at 3:14 pm

#157 bentoverpayingtaxes

With a post like #155 the assumption had to be that your DOB falls in the early to mid 1990s. My bad on that one I was simply trying to speak your language.

The last part stands, however: smarten up

#160 Belinda on 01.27.14 at 9:44 pm

Vancouver Real Estate is where you send money to die right now. Because your equity dies the moment you believe the hype and start letting your cash bleed, aka “invest.” Vancouver is experiencing a net loss in value retention across most real estate product type. There is simply too few peoples in that city earning the incomes to support multi-million dollar listings. Hence the phrase Scamcouver. Vancouver is the biggest scam on god’s green earth.