I am yours

BEAR modified

There are almost 40,000 people in the GTA trying to make a living selling houses. Last month 5,731 properties changed hands. If every sale had two agents involved (and that’s never the case), then 28% of these forty thousand people made a little money.

The average sale price was $553,000 and the average commission about $27,500. Typically that’s split between agents and their brokers, so last month the typical sale might have yielded a paycheque of $6,900. Not a bad living, except for 72% of the house-floggers, their income was zero.

And this is supposed to be the golden age of houses. Prices never higher. Mortgages never lower. Real estate pumped everywhere as the can’t-lose asset of our age. And yet almost three-quarters of the agents are starving.

So what do you do to make ends meet and hustle up some business? One Brampton realtress is promising more than just an open house:

your dream comes true here

Hello There
I am 35 year old professional realtor Indian woman always with itch of adventure. So decided to mix my business with pleasure. Real Estate and adventure together. Buy or Sell your house with me and have me for your fantasies and mine. or have someone else to sell or buy through me and I am yours. Who knows it might be a beginning of a new era.
So Excited to hear from someone fun soon.

post id: 4403698260     posted: 6 hours ago

That was posted on Craisglist (here’s the original, if it’s still live), and when Todd read it he told me, “this would be humorous if it weren’t so sad.” Actually it’s a great testament to the house horniness this pathetic blog has been chronicling for years now. It’s hard to think of anything that has more sex appeal than real estate, that stirs more primordial juices, is more fawned and slobbered over by the media, or is more lusted after by hipster and Boomer alike.

Seems like we’re reaching some kind of a collective climax, now that the snow has receded enough to reveal earthy pleasures. This week Google Canada revealed that online searches for the ever-sensual and arousing word “mortgages” have peaked, hitting the highest volume in more than a year, just as BeeMo unfrocked its 2.99 special.

In fact, Google has joined the MSM when it comes to the Canadian cult of housing.  A media release this week trumps the results of the latest online survey which may just drive more real estate agents to be handing out latex business cards. Instead of buying houses, says Google, people will be staying put and renovating. A fifth of plan to do that in the next two years, with 42% saying they’ll do the work themselves and two-thirds admitting they will raid savings accounts (and their TFSAs, likely) to do the work.

More Google gems:

Near half of us (46%) would accept a loan from a family member to use as their down payment, which proves once again Canadians think they should be able to own a home even when they don’t have any money to buy one. If this does not make the little hairs on your neck go up, you’re not paying attention.

Fully 62% of people living in BC believe they won’t have their mortgage paid off by the time they are 60. This is also the province where incomes are dropping and the savings rate is negative 8%. Of course, everyone lives in a multi-million dollar house, so what can possibly go wrong?

And 73% of Canadians want a mortgage with a five-year term, even though variable-rate loans are cheaper and can pay off the house faster. Go figure.

Well, that’s your salacious housing news for today. And, no, she didn’t post a picture. Shame on you.

138 comments ↓

#1 ILoveCharts on 04.02.14 at 7:00 pm

So glad I did not buy last fall.

#2 Old Man on 04.02.14 at 7:02 pm

The bear in the caption photo caught my attention and is his name by chance “Smokey”?

#3 TurnerNation on 04.02.14 at 7:03 pm

Bear market?

#4 dave on 04.02.14 at 7:04 pm

no pic…what up with that?

#5 Smartalox on 04.02.14 at 7:06 pm

So starving realtors may be the first to cave and sell their properties to make ends meet. There’s something of a poetic justice there. Of course, as the first to the stampede, they’ll still get the best prices. It’s only the ones that sell off later that will have to cut their price, or risk foreclosure.

#6 MagnumMtl on 04.02.14 at 7:11 pm

actually posted on craigslist!

I wouldn’t have believed it if I hadn’t seen it myself.

#7 DAN on 04.02.14 at 7:15 pm

1st! I’m lost for words. So much that I want to say but so overwhelmed that I cant put everything in order.

Call me young man, I see kiddos my age mortgaging themselves to the bottom of the ocean. Pressure from girlfriends, parents… list goes on. 25 year old couple’s recent $900k purchase. Photos plaster facebook and the like; the young man, stares into the camera as if he doesn’t know whats going on around him, extreme lack of confidence and the true look of a fool.

#8 Steve on 04.02.14 at 7:21 pm

The harlotor is using the houses she’s showing for nookie while the owners are out?? I’m amazed

#9 Son of Ponzi on 04.02.14 at 7:27 pm

So why do we believe debt can become equity?
—————–
Debt – RE paper gain = Equity
The new Alchemy.

#10 gladiator on 04.02.14 at 7:32 pm

Garth, quickly take and save a snapshot of it before it’s gone.
Something like that is so hard to believe that I had to click on the link and see it for myself.

#11 DaleFromCalgary on 04.02.14 at 7:34 pm

Diana Arvatescu still has her sex and real estate billboards along Calgary freeways:
http://m.theglobeandmail.com/life/the-hot-button/was-this-calgary-real-estate-agents-billboard-too-racy-to-show/article8392160/?service=mobile

#12 Van Isle Renter on 04.02.14 at 7:36 pm

Oh Bearded Oracle, I doubt that the stats are even that kind to the realtor;

The quantity of sales is strained
It falls not evenly upon all

– apologies to The Bard

As with all things in life, 20% of the guys make 80% of the cash. The rest? Driving around in leased Beemers and Cayennes trying to fool everyone into thinking they are successful.

#13 FormerSaskie on 04.02.14 at 7:38 pm

I think she got her idea from your references to house porn, Garth :)

#14 shane on 04.02.14 at 7:40 pm

Most agents do it part time

#15 Alberta Ed on 04.02.14 at 7:43 pm

That might explain the half dozen realtor-wanna-buy/sell flyers in the mailbox so far this week (Wednesday). Not sure how many realtors are making a living in Cochrane these days despite all the new subdivisions going up.

#16 Cici on 04.02.14 at 7:46 pm

#6

I didn’t believe it and had to check for myself too.

Desperation is a terrible thing…she probably owns ton of real estate herself and has to stoop this low to avoid foreclosures :-(

#17 GTA Observer on 04.02.14 at 7:46 pm

A semi-detached 4BR house in Thornhill Woods just sold for $640,000. It had listed higher and the agent touted that it was perfect for families on “a modest budget.”

In what universe is nearly 2/3 of a million dollars a “modest” amount?

Maybe the universe with 2.99% special rates?

In the same neck of the Thornhill Woods: 2 different houses with giant For Sale banners draped across the garage doors in addition to the yard signs. Maybe they should put something on the roof so people can see it from space.

#18 Smoking Man on 04.02.14 at 7:47 pm

Now that my friends is an industrious smart realtor. On the open market, a little oh lala is 140 hour on the low end, pun intended or 300 for a bit more class..

1/2 of 27000 13.5k

Brilliant…

Or she can work min wage at mcburger, go home cook, clean and service abusive hubby for free. Same boarding dude, day in
day out.

True entrepreneur and pure feminist.

13k nice…..

Perfect…..

She gets a Smoking Man Black Belt.

#19 pinstripe on 04.02.14 at 7:49 pm

What I see in Alberta is that the agents that have been in the business for a long time are not suffering. In fact, they are quite selective in what they want to handle. They made their money and now they are free wheeling and enjoying their spare time.

The new/newer agents are willing to devote whatever it takes to sell. They are the grunts. However, there are the few that are not cut-out to be in sales and they don’t last too long in the business.

#20 Dr. Sex U Al Intellect on 04.02.14 at 7:49 pm

I think that she means something like you know white water rafting and she will pay. Right?

By the way Garth you may have seen my picture in the paper the other day when I picked up a cheque, anyway now that I have this huge amount of cash I was wondering if you could help me pick which colour Kia to buy?

#21 Lala on 04.02.14 at 7:52 pm

Lala love desi RE agents. Count me in, my house is for sale.

#22 Halifax Observer on 04.02.14 at 7:57 pm

She has an “itch” for pleasure that she will share with you. No crotch critters for me thank you very much. I’ll stick with the Calgary realtors who imply but don’t overtly offer. Now those are some classy ladies!

#23 ts on 04.02.14 at 7:57 pm

Garth posted that craigslist ad. Its his version of HAM Heliclpter rides. Shame on you Mr. Turner!

#24 Humpty Dumpty on 04.02.14 at 7:58 pm

This charming red bear knows how to save this damsel in distress….

Has the United States ever experienced a time when a foreign nation has attempted to buy up so much of our land all at once? As you will read about in this article, the Chinese are on a real estate buying spree all over America. In fact, in some cases large chunks of land are actually being given to them. Yes, you read that correctly. China is on the way to becoming the dominant land owner in the entire country, and that is starting to alarm a lot of people. Do we really want a foreign superpower to physically own so much of our territory?

http://worldviewweekend.com/news/article/chinese-are-acquiring-large-chunks-land-communities-all-over-america-0

#25 Freedom First on 04.02.14 at 7:58 pm

Prices never higher. Mortgages never lower.

Simply but perfectly worded Garth.

Canadians are rightfully and deservedly now ranked as the #1 World Champion Debt Holders, in fact, so much so, that they have catapulted some house salespeople into a state of lustful financial orgasmic foreplay.

#26 nomad on 04.02.14 at 7:58 pm

Financial Post: “As such, markets are likely to cool gently. To potential homebuyers, monthly mortgage payments, rather than house prices, are what matter and these should remain moderate.”

Even my agent now says “People now look at the montly payment, not the price”.

Rates rising in 5 years seems far in the distance for people.

#27 TurnerNation on 04.02.14 at 8:07 pm

How the elites work…I’ve heard they want our energy. Fear, mostly (t-t-terrorists! Funded by them, though more likely to die of car crashes). Failing this, real energy.
Now you see why utilities price are rising 20-40% in First World countries (get bombed economically.)
They are laughing, a 150-year old technology, electricity – that much? They keep us in the stone ages.
Tech we cannot imagine, scraping everything. It’s all a computer simulation.

On a lighter note: For Nemesis and the other grizzled hard rock boomers, the cutest new singer I’ve seen:

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

A Danish cross between Bjork and Madonna. Remains to be seen if the next Stevie Nix or Grace Slick.

#28 hohoho on 04.02.14 at 8:08 pm

> … the Chinese are on a real estate buying spree all over America …

just like the Japanese a couple of decades ago during their RE bubble, we all know how that turned out

#29 Smoking Man on 04.02.14 at 8:10 pm

#16 Cici on 04.02.14 at 7:46 pmI didn’t believe it and had to check for myself too.

Desperation is a terrible thing…she probably owns ton of real estate herself and has to stoop
this low to avoid foreclosures :-(
………..

That’s not desperation, that’s salesmanship, marketing.

Morality is a learned behaviour, woman world over have been abused by men since we came
out of the caves.

13k is the ultimate revenge.

There is nothing sad about this to a logical mind, a mind that forecast the future, solves the most complicated technical
problems.

What is sad, is young woman coming out of obidance training, certificate in hand only to be a
intern working for free and hit on by old bastards.

No guarantee of a gig, unless…..

That’s sad.

#30 UTSBLUE on 04.02.14 at 8:14 pm

80/20 rule… so less than 28% made any money and more than 72% made no money – in real estate.

#31 55rider on 04.02.14 at 8:19 pm

Winston Churchill’s take on this offer:
“Madam, would you sleep with me for five million pounds?”
Socialite: “My goodness, Mr. Churchill… Well, I suppose… we would have to discuss terms, of course..”
Churchill: “Would you sleep with me for five pounds?”
Socialite: “Mr. Churchill, what kind of woman do you think I am?!”
Churchill: “Madam, we’ve already established that. Now we are haggling about the price”

#32 Happy Renting on 04.02.14 at 8:21 pm

But hasn’t the real estate agent gig always been 5% make a killing, the other 95% starve?

In any case, I bet the realtress is really a giant dude who will mug you when you rendezvous to “view houses”.

Smokey – how do you know so much about what prostitutes cost?

#33 X on 04.02.14 at 8:23 pm

I wonder what google come up with in regards to CDN RE being over priced. Most people agree it is over priced, but they also feel renting is beneath them, so they buy. They aren’t aware enough to run the numbers or to even do a slight comparison. They buy. It is easier to buy than to rent in all honesty.

#34 bill on 04.02.14 at 8:29 pm

has to be a ‘april fools ‘joke….
the scary part is it just might be.
Garth are you having a bit of fun with us?

#35 airhead princess on 04.02.14 at 8:43 pm

“Buy or Sell your house with me and have me for your fantasies and mine. or have someone else to sell or buy through me and I am yours. ”

I’m not sure what this ad implies……’ for your fantasies and mine?’ …” I am yours if you refer me”? Are we talking S-E-X ? What if someones fantasies include something nasty? English translation please. I get the free car with the condo…but sex with an unseen Indian woman……that’s too risky.

#36 Paul on 04.02.14 at 8:47 pm

Those tactics have been around since the late 80’s and most likely since the beginning of time . Lost a few listings that way my self I tried to compete but my back was to hairy. lol

#37 KG on 04.02.14 at 8:50 pm

Wonder what the real sales number is as I guess it has not been revised down to reality yet, plus how many are duplicate sales ?

#38 Kreditanstalt on 04.02.14 at 8:53 pm

Canadian stocks – bar the miners – are an enormous floating gasbag of hype and hot air, blotting out the sun and with unseen leaks everywhere…

In comparison rural and small-town RE, outside the major cities, is a comparatively good way to preserve some purchasing power later on…

#39 Chopper on 04.02.14 at 8:56 pm

Garth the link above for the Realtor is not Kijiji but Craigslist. If she were 24 I would have taken her up on the offer at 35 it is past prime, beaten and worn down.

This blog should be mandatory reading for first time buyers. But most will still go ahead and not heed your advice anyway because the desire to own a home at all cost is too strong. This spring market should be interesting, I am watching it closely to see what the trend is.

My mortgage comes up for renewal July of this year, should I go variable and which bank?. I am looking at RBC what do you guys think. They are offering me 3.09% 5 year fixed. 2.5% 1 year variable.

Thanks

#40 Hawk on 04.02.14 at 8:56 pm

Hmmm remind me of that song…………..

“I know what you want
I know what you need
And if you come here tonight
Satisfaction guaaaaaaanteeeed”

LOL

#41 Follow the Money on 04.02.14 at 9:01 pm

Garth, how about a post or two on what really happens when people can’t pay the mortgage. Are the banks still going to collect all that is owed to them? How much is CHMC on the hook for?

#42 Indigoblue on 04.02.14 at 9:03 pm

#37 KG don’t forget the FSBO’s

#43 Follow the Money on 04.02.14 at 9:04 pm

Sorry CMHC

#44 T(ruth) on 04.02.14 at 9:09 pm

What would Dr. Ruth say? Freud? Bill Clinton?

#45 Smoking Man on 04.02.14 at 9:12 pm

#32 Happy Renting on 04.02.14 at 8:21 pmBut hasn’t the real estate agent gig always been 5% make a killing, the other 95% starve?

In any case, I bet the realtress is
really a giant dude who will mug you when you rendezvous to “view houses”.

Smokey – how do you know so much about what prostitutes
cost?
…………

Seriously? I can guarantee any 95% of the over 40Y old dudes on this blog know exactly what they cost, where to find them.

Call it life experience.. Not suggesting anything sinister..

The remaining 5% have brain damage.

#46 not 1st on 04.02.14 at 9:17 pm

Garth, you never commented on all the fuss over HFT in the US exchange over the last few days.

Am I to assume you have a fibre line to your house or a microwave tower in your back yard?

#47 saskatoon on 04.02.14 at 9:17 pm

garth,

you didn’t quote the worst part:

“compensation: I will be getting my commission”

#48 sheane wallace on 04.02.14 at 9:34 pm

This thing with the housing will be eventually over but the damage from it will remain for a very long time.

1. Capital miss-allocation. Building condos instead of factories.
2. End of manufacturing, Alberta and Saskatchewan will be just fine apart from the very crappy weather (oil and grain will do just fine) but remaining of Canada will be devastated.
3. Most of the Financial services Business – Banks, Insurance is far too big for the scale of this small economy, so it will implode imminently.
4. Good paying jobs will be gone as they are more and more outsourced, our kids will be screwed.
5. Houses are worth nothing in areas with no good paying jobs or no jobs at all.
6. The number of suicidal executives and shortsighted politicians is astonishing. Everybody lives for the day without any thoughts of the future or strategic thinking. The western bankers play with Russia is very dangerous, the BRICS are far superior to the Communist block while the west is in decline (as a result of screwing it’s own citizens due to greed.) and they it seems stick together and now are expanding (Iran next?).

It seems all the indications are that the west is failing with all the consequences for the population here – no jobs, deteriorating economy (due in part to capital miss-allocation, result of clear housing bubble).

It seems everything is made to serve the banks with the goal of insuring their profits at any cost. Unfortunately a parasite can not outgrow the host and soon we will be paying the price of the politician stupidities (CMHC, zirp,…)

It should be in the international bill of human rights that the governments can only screw people so much.

The biggest whores in the whole whorehouse are the mainstream media (people call them press-titutes) , they will publish anything for money and the real estate likes of B. Lamb – arrogant pricks that should be driving trucks but instead are becoming millionaires and businessmen, courtesy of the likes of F,H, M.C, Joe, Poloz.

There will be a day of recon, the bill always arrives and nobody will like it.

#49 economictsunami on 04.02.14 at 9:44 pm

Just happened to read this about TO condo fees falling behind the times:

Subsidizing the Housing Boom in Toronto:

“The average development charge for a large (2 bedroom) apartment unit in Toronto was about $13,000 in November 2013. That’s much lower than surrounding municipalities such as Brampton ($43,000) Mississauga ($38,000) and Oakville ($32,000)…

So over the next decade the total net costs associated with new development are forecasted to be $3.4 billion yet development charges are expected to recover only about $2.4 billion. This leaves the existing tax base responsible for more than $1 billion in costs.”

http://www.torontocondobubble.com/2014/04/subsidizing-housing-boom-in-toronto.html

Taxpayers holding the bag and the Carpet Baggers long gone…

#50 Aggregator on 04.02.14 at 9:46 pm

It appears Canada's organized real estate is way ahead of the US when it comes to promoting Canadian built (or to be built) homes overseas, as Bloomberg reports: Zillow to Give Chinese Homebuyers Access to U.S. Listings

Zillow Inc. (Z) agreed to make its U.S. property listings available to Chinese consumers through a partnership with a Beijing-based website.

E-House Holdings Ltd.’s Leju real estate site will carry Zillow listings that include homes for sale by agent and owner, units in projects under construction and foreclosures and short-sale properties, Seattle-based Zillow said today in a statement.

Alas, there's no domestic buyers left, so the next best scheme to avoid another RE meltdown is to sell home futures contracts (presales) and keep building until they come, which begs this question: Did New York finally catch on and adopt Vancouver and Toronto's international shadow presale exchange?

35% Surge In Sales Smashes New York Apartment Prices To Record High

Manhattan apartment sales surged in the busiest start to a year since 2007, setting price records as buyers vied for a limited supply of homes for sale and deals were completed at new high-end developments.

And just like that, by finding another batch of fools on the global map who's willing to sign a condo obligation, or a few dozen to be delivered in x years — sales rise, prices surge and even more risk is added the financial system as these condo carry trades are not depended on interest rates, rather currency fluctuations, which just happens to be HFTs new chase as stock volume recedes.

This is an absolute disaster waiting to happen that will make 2008 look bitty.

#51 Andrew Woburn on 04.02.14 at 9:49 pm

#126 Woke To The Sounds Of Horking on 04.02.14 at 10:25 am
#45 Dave C –
I could tell you things about the manufacturing of products and how much better stuff was built 20 yrs go — hell, 10 yrs ago — but you’d probably call me a delusional wrinkly bastard.
============================================

I have to agree. When we bought our current house we were happy to get a 17-year-old Maytag dishwasher because in our previous home we had acquired a 30-year-old Maytag which we ran for another 20 years. The machine still worked well after 50 years but the door supports rusted out.

We just had our current Maytag serviced. I asked the highly experienced serviceman if we should consider a new energy efficient model. He said we would be lucky to get more than five to seven years service life, it would take two and a half times as long for a wash cycle and it was much less robust. In other words, for anything we saved on energy we would lose more in having to replace the unit too soon.

In 1960 we could make a dishwasher that lasted 50 years. Now we are lucky to get one that lasts seven. That’s real progress. Am I the only one to wonder if the “green” and “energy efficient” buzzwords are mostly designed to con more money out of my pocket?

#52 Andrew Woburn on 04.02.14 at 10:05 pm

Vancouver’s Detached home average price has dropped to $1,209,542.
Attached prices Up
Apartment pries Up
Active Listing Inventory in all segments down
Sales Volume: Detached Up, Attached Down, Apartments Up

http://www.yattermatters.com/2014/04/issac-newton-visits-vancouvers-detached-homes/

#53 wallflower on 04.02.14 at 10:11 pm

#24 Humpty Dumpty on 04.02.14 at 7:58 pm
This charming red bear knows how to save this damsel in distress….

Has the United States ever experienced a time when a foreign nation has attempted to buy up so much of our land all at once? As you will read about in this article, the Chinese are on a real estate buying spree all over America. In fact, in some cases large chunks of land are actually being given to them. Yes, you read that correctly. China is on the way to becoming the dominant land owner in the entire country, and that is starting to alarm a lot of people. Do we really want a foreign superpower to physically own so much of our territory?

http://worldviewweekend.com/news/article/chinese-are-acquiring-large-chunks-land-communities-all-over-america-0
—–

JAPAN, 1987/88, rinse and repeat

http://articles.latimes.com/1989-03-08/business/fi-285_1_japanese-investment

#54 4 AM Sunrise on 04.02.14 at 10:11 pm

Is the realtress wiling to throw in a DVD of the umm…”transaction” as well? THAT’S house porn indeed.

#55 Cici on 04.02.14 at 10:13 pm

The definition of “soft landing,” courtesy of Wikipedia:

In addition to being a certain type of business cycle, a soft landing may also refer to a market segment or industry sector that is expected to slow down, but to not crash, while the wider economy may not experience such a slow down at that time. For example, a contemporary newspaper headline read: “Soft landing forecast for house prices as rate hikes stem growth”.[3]

As it stands, these forecasts have very little scientific value and there is not one single verifiable instance of a soft landing following an economic bubble.

This is enforced by definition, as any potential bubble followed by a soft landing would, in retrospect, not be deemed a bubble.

#56 LL on 04.02.14 at 10:17 pm

Looks like Brad Lamb grew tired of making Garth look bad:
http://new.bradjlamb.ca/2014/04/rob-carrick-wrong/

#57 Rabbit One on 04.02.14 at 10:27 pm

#48 sheane wallace

Well said, and agreed all points.
Just depressing to confirm all you pointed out happening.

#58 2CntsCdn on 04.02.14 at 10:32 pm

Who doesn’t want to look up from the valley … and see the mountains. Ahhhhh Canadian real estate. Can it get any better?

#59 Lucky3 on 04.02.14 at 10:44 pm

#11 Dale from Calgary

Diana, hmm tipical gold digger, LOL
Quite a run…. from dating sites to such a beautiful Real Estate billboard, is that an accomplishment or what?
Anyway, same methods just taken a notch higher.

#60 Andrew Woburn on 04.02.14 at 10:45 pm

London house price boom could ‘unravel’, warns Deutsche Bank

http://www.telegraph.co.uk/finance/economics/10739124/London-house-price-boom-could-unravel-warns-Deutsche-Bank.html

#61 Chris on 04.02.14 at 10:49 pm

Garth,

You were just voted as the 34th most evil man in Canada. How does that make you feel?

#62 Andrew Woburn on 04.02.14 at 10:57 pm

Anatomy of bubbles and crashes

Stage 5: Revulsion

Just as prices became wildly out of line during the early stages of a bubble, in the final stage of revulsion, prices overshoot their fundamental values. Where the press used to write only positive stories about the bubble, suddenly journalists uncover fraud, embezzlement, and abuse. Investors who have lost money look for scapegoats and blame others rather than themselves for participating in bubbles. (Who didn’t speculate with Internet stocks or houses?) As investors stay away from the bubble, prices can fall to irrationally low levels.

http://pragcap.com/anatomy-of-bubbles-and-crashes

#63 Ronaldo on 04.02.14 at 11:08 pm

Sex and Real Estate. But it won’t necessarily get your house sold.

http://www.youtube.com/watch?v=sztx4TeBwag

#64 inmississauga on 04.02.14 at 11:23 pm

The ad was taken off Craigsist. It’s on Kijiji though:

http://toronto.kijiji.ca/c-real-estate-houses-for-sale-your-dream-and-my-dream-W0QQAdIdZ579999594

#65 bob Rice on 04.02.14 at 11:26 pm

the re-emergence of the USA

http://www.bbc.com/news/business-23151813

#66 Retired WI Boomer on 04.02.14 at 11:27 pm

Went to Madtown for a new recliner, visiting, and bumming around.

ordered two new recliners, had fun, and totally forgot about real estate and the related problems thereto.

Saw a GREAT AD for “Sofa King”

“Nobody beats our prices, our prices are Sofa King low.”

go on now, try saying it…

#67 4 AM Sunrise on 04.02.14 at 11:46 pm

I meant a “commemorative” DVD

#68 Son of Ponzi on 04.03.14 at 12:05 am

Indian?
Please clarify:
Native Indian of East Indian.
Thank You.

#69 45north on 04.03.14 at 12:18 am

I’m still reeling from yesterday’s post “mortgage debt Canada and US”. These are not abstract statistics, people I know have big mortgages. So big that they will never pay them off, so big that selling at the top of the market will basically give them nothing.

Cici : she probably owns a ton of real estate herself and has to stoop this low to avoid foreclosures

yeah she probably does – drinks her own kook-aid too

Dan : 25 year old couple’s recent $900k purchase.

$900K shut up! (apologies to my New York daughter-in-law). Rick’s house in North Carolina was only $260,000.

http://www.greaterfool.ca/2014/03/26/ricks-house/

this is a sign that we’re close to the edge

#70 45north on 04.03.14 at 12:20 am

kool-aid, I typed it right but the spell checker changed it!

#71 World According To Garth on 04.03.14 at 12:25 am

Fully 62% of people living in BC believe they won’t have their mortgage paid off by the time they are 60. This is also the province where incomes are dropping and the savings rate is negative 8%. Of course, everyone lives in a multi-million dollar house, so what can possibly go wrong?
—————————————————————–

According to all the well paid Govt Workers BC is the Best Place on Earth. Maybe it needs to be changed to:

BC – The Best Govt Worker Paradise on Earth cuz they are the only “full time residents” making any money. EVERYONE I know that is not making money off the taxpayer is broke.

#72 MEANWHILE IN FRANCE on 04.03.14 at 12:32 am

Renovating is much more fun than buying. So much so, that we are going to do it again.
Despite the two hour lunch break and the “cannot” attitude of our plumber.

#73 Internal Auditor on 04.03.14 at 12:49 am

@39 If you’re looking to get out of home ownership then take the 1 year term and sell next year. But remember we all need a place to live. If your current place is a home you can see yourself living in for a while then see what else is available after the 2.50% rate is has run its course. If you’re scared that rates will be too high in 12 months then grab the 5 year and move on.

We have a 5 year, the premium paid for knowing what you’re expected to pay for the next few years might be worth it. If you have a small mortgage then the difference is not significant. No sense in making a big deal over $50-$100 a month if it’s not a big hit to your take home pay. Assuming you live at or below your means I don’t think you have much to worry about. Clearly many other variables have to be factored into your decision, I’d take a step back and do a pro/con list to see what qualitative advantages their are for keeping it. Sounds like you want to stay for at least 5 years, so getting a 1yr mortgage now vs a 5 year product doesn’t make a huge difference. I don’t think the bond market will shoot up in 12 months (I could be wrong) but the powers that be will do their best to ensure a controlled upward rate environment occurs.
———————————————————-

To all the doom and gloomers here you guys need to relax. Stop reading Zerohedge and stop thinking you’re smarter than everyone else. Renting makes sense in some cases, in other cases it does not. Keep hugging your gold coins and overstocked coffee beans.

Remember it’s all about balance.

#74 Tedfiftyfour on 04.03.14 at 1:34 am

80/20 rule… so less than 28% made any money and more than 72% made no money – in real estate.

This is NOT new, in my 30 years these figures have rarely changed. The other reality is everybody believes Realtors make a fortune Selling Real Estate.

#75 Joe on 04.03.14 at 1:39 am

Interesting little tim bit, reverse mortgages are up 20% in the good ole US of A
Owe owe till you got no mo.

#76 World According To Garth on 04.03.14 at 2:48 am

I’m sure the taxpayer funded Govt Workers and their “thousands of scientists” with degrees in “ammonia in squid” will somehow find a way to blame all the volcanoes acting up (where MOST OF THE EXCESS CO2 COMES FROM) and earthquakes on Joe Sixpack and his 30 MPG clean burning automobile.

Keep paying that carbon tax in BC stupid……

http://armstrongeconomics.com/2014/04/02/earthquakes-7-the-ring-of-fire-intensifying-on-schedule/

#77 lord lucan on 04.03.14 at 5:05 am

A view from London, UK:

http://www.theguardian.com/commentisfree/2014/apr/02/london-housing-bubble-property-market-madness?CMP=twt_gu

#78 Saskatoon Realty on 04.03.14 at 6:19 am

As with any other free market, it will correct itself. If there’s enough business to go around, then the number of Realtors will stay at that level. If there’s not, then the weaker Realtors will fall off.

#79 Porsche on 04.03.14 at 7:09 am

97% of Canadians own real estate and 3% post here.
he he

I own. — Garth

#80 fred farst on 04.03.14 at 7:35 am

#56
Looks like Brad Lamb grew tired of making Garth look bad

” Mr. Carrick and his moronic bunch that sing the praises of renting over buying got dropped on their heads as babies:”

http://www.personal.psu.edu/afr3/blogs/siowfa12/2012/10/were-you-dropped-on-your-head-or-something-does-that-even-make-sense.html

“Babies have very unique characteristics that in some ways make it extremely hard for a simple accident to cause a lot of damage. Babies are born with an Anterior Fontanel, a ‘soft spot’ on the front of there head. A misconception that is made by most parents is that this soft spot is more prone to injury when contact is made. However the exact opposite is true, the Anterior Fontanel is made of tough fibrous membrane which is the strong, fibrous support layer in a joint capsule.
With the strong membrane on the top of the head, it gives the babies extra cushion which works as padding if they fall over or are dropped on their head. This is not to say that damage can not be done, the point I am making with this is that babies are more likely to be able to survive a blow to the head because of this soft spot.
There is no clear evidence that states that suffering a fall as a baby/infant/child hurts your life in the long run, however after doing research on my own, I would come to my own conclusion that there are all different types of variables obviously to falls but I believe that if there is nothing extreme about the type of fall or impact that no, dropping a child on one’s head will not negatively impact the life of that child or infant thanks to the anterior frontal I discussed earlier in the blog entry”

http://new.bradjlamb.ca/2014/04/rob-carrick-wrong/

Wow, Brad Lamb says in the article

#81 Kevin on 04.03.14 at 7:36 am

And 73% of Canadians want a mortgage with a five-year term, even though variable-rate loans are cheaper and can pay off the house faster. Go figure.

With interest rates the lowest they’ve been in a generation, and the lowest they’ll ever be for another generation, why on earth would you NOT lock in a fixed rate?

I don’t get this, Garth. You’re always saying how foolish it is to buy when houses have never been more expensive. So why doesn’t the same logic apply with loan rates? Interest rates obviously have nowhere to go but up right now. So why would anyone with any sense jump on at the lowest point they’ll ever see in their lives, intending to ride the waves which can only inevitably rise from here?

#82 Q2 CLASS DUPLEX-DRIVE on 04.03.14 at 8:31 am

Garth –

You keep going on about how this Canadian housing market is due for a correction and how how condo supply exceeds demand yet builders keep building them for some reason… ad nauseum. Bear in mind that there will be a federal election in two years time and NO WAY Ottawa will upset all those newbie – and not so newbie – homeowners out there. This housing rally looks set to continue until at least the end of 2016. JMHO

Condos being built now were conceived years ago, so that proves little. As for the government, it would be as powerless here as it was in the US to stem any widespread correction. — Garth

#83 liquidincalgary on 04.03.14 at 8:32 am

go ahead respond to her….i’d bet it’s a ‘phishing’ advert

#84 liquidincalgary on 04.03.14 at 8:50 am

@ 24 Humpty Dumpty

back in the ’80s (yes i was there), the americans were pissing and moaning about all the japanese property purchases in the US; however, it was only a few high profile purchases that caused the uproar…canadians were actually making more, and larger, buys in the US market

#85 Rene on 04.03.14 at 8:57 am

Haven’t posted in many moons, but felt compelled this time.

The add should read “I’m a prostitute with a licence to sell real estate. Buy a house from me and I’ll waive the rental fee on my nether region.”

#86 Holy Crap Wheres The Tylenol on 04.03.14 at 8:58 am

#24 Humpty Dumpty on 04.02.14 at 7:58 pm
This charming red bear knows how to save this damsel in distress….
Has the United States ever experienced a time when a foreign nation has attempted to buy up so much of our land all at once? As you will read about in this article, the Chinese are on a real estate buying spree all over America. In fact, in some cases large chunks of land are actually being given to them. Yes, you read that correctly. China is on the way to becoming the dominant land owner in the entire country, and that is starting to alarm a lot of people. Do we really want a foreign superpower to physically own so much of our territory?
_____________________________________________

I recall my father always saying the Chinese will take over the world one day without even firing a shot!
Guess he was correct!

http://worldviewweekend.com/news/article/chinese-are-acquiring-large-chunks-land-communities-all-over-america-0

#87 Shawn on 04.03.14 at 9:00 am

Who is Most Evil?

Chris at 61 notes and asks:

Garth,

You were just voted as the 34th most evil man in Canada. How does that make you feel?

*************************************
lol, getting to number one is in sight? link to the full list?

Any women on the list of evil men?

#88 David Lee on 04.03.14 at 9:25 am

The lack-of-data issue is becoming more and more mainstream:

http://www.theglobeandmail.com/report-on-business/economy/housing/dangers-lurk-in-dearth-of-solid-housing-market-data-economist-warns/article17786461/

#89 calgary rip off on 04.03.14 at 10:33 am

This current posting is retarded.

Buying houses has nothing to do with house “horniness” or such nonsense.

This blog should be about Toronto because most of what is written here likely doesnt apply anywhere else.

Rent controls and vacancy rates differ in each province. Most rents are the same as mortgages in Calgary. What choice do people have if they have a solid job and will be living long term in Calgary? Is there more security in renting?

It seems that most people in making arguments for their view on anything automatically assume their point of view is the only correct view and nothing else is valid. These opinions on the rent vs. buy dilemma are opinions weighed by individual variables. There is no answer for all scenarios. If I had been dumb enough to listen to the renting argument I would be out $30,000 in rent. That’s money that I dont get back. Yes I may be able to have mobility and all the benefits that renting offers. Also, if I will be living long term in the place, how is that relevant?

Why is it that there is no happy medium? Here people talk about renting and in the local papers in Calgary it is all about buying. I have come to the conclusion that all people everywhere are nothing more than domesticated animals. Bunch of rats.

How about this? Gratefulness for the simple things: Clean air and water. Basic health. Edible food. Lack of warfare. Seems modern society has forgotten the basics and because there is no warfare they intend on creating animosity.(the scam of the so called peace loving hippie generation hypocrites).

Calgary prices just hit a new high. You really want to buy now? How, exactly, does this differ from buying any other asset when it peaks? Apply common sense. — Garth

#90 John on 04.03.14 at 10:35 am

DELETED

#91 TnT on 04.03.14 at 10:37 am

USA Real Estate

http://money.cnn.com/2014/04/03/real_estate/priced-out-homebuyers/index.html?hpt=hp_t3

#92 GsAmazon on 04.03.14 at 11:10 am

Careful Kids, last time I got the “itch of adventure” it took 2 rounds of antibiotics.

#93 Opportunityknocks on 04.03.14 at 11:19 am

Being screwed by a RE agent, been going on for ages. Seeing it offered in print probably the more honest approach. What next, condoms with RE logos ?( latex cards) Opens up a whole new marketing approach.

#94 Dupcheck on 04.03.14 at 11:30 am

Now we have: Silk screws used to repair bone fractures check it out:

http://www.bbc.co.uk/news/health-26438497

They heal with your bones.
No more metal to set off the metal detectors at airports.

#95 Nemesis on 04.03.14 at 11:46 am

#Thanks&KeepTheTip #TrickleDownEconomics #IsItPoliteToOfferALadyATiparillo?

[CBC] – Vancouver among Canada’s worst tippers
Data released on tipping habits across the country shows which Canadians are the most, and least, generous

…”Calgarians proved the most miserly of the bunch…”…

http://www.cbc.ca/news/canada/british-columbia/vancouver-among-canada-s-worst-tippers-1.2595829

[G&M] – Canada’s 86 wealthiest have as much as the 11.4-million poorest, report finds

“We often focus on income inequality but that’s a socialist paradise compared to wealth inequality.” – David Macdonald, Canadian Centre for Policy Alternatives

http://www.theglobeandmail.com/news/national/canadas-86-wealthiest-have-as-much-as-the-114-million-poorest-report-finds/article17786676/

[[email protected]#44: “What would Dr. Ruth say? Freud? Bill Clinton?” – I’m not sure about Dr. Ruth and/or Dr. Freud… but I’m quite certain how former President Clinton would respond: http://youtu.be/54dL8guZlH4 [email protected]#27: Smokin! Thank you for that. Clearly, I should have abandoned that connecting flight in Copenhagen and lingered a while… ]

#96 TnT on 04.03.14 at 11:48 am

Canadian housing data dangerously incomplete, CIBC warns

http://www.cbc.ca/news/business/canadian-housing-data-dangerously-incomplete-cibc-warns-1.2596751

#97 Alberta_bound on 04.03.14 at 11:51 am

Son of ponzi

I think you’re joking, or at least hope you’re joking. Indians are people India. An east-Indian is someone from the eastern part of India. Native Americans are not Indians. Keep the ignorance and bigotry to a minimum would ya?

#98 Slim Pickens on 04.03.14 at 11:55 am

Some good news for some!

http://www.bbc.com/news/business-23151813

#99 Ralph Cramdown on 04.03.14 at 12:06 pm

#97 Alberta_bound — “Native Americans are not Indians. Keep the ignorance and bigotry to a minimum would ya?”

http://laws-lois.justice.gc.ca/eng/acts/i-5/page-1.html

#100 Smoking Man on 04.03.14 at 12:30 pm

Good day for Ford.

Opp removing themselves from the case, conflict of who is the victim. Looks like Ford Bros were right, a tree hugging expensive witch hunt.

Shocking nothing much in the press about McWynne.

I search Google

Ford 30400 stories
Wynne 4000

WHY are there no cameras and reporters on her drive way?

It high time she walked head first into a camera…

1 billion wasted, and criminal deleted emails on her watch…

My call

4 more years of Ford
Wynne who…

#101 Lebowski on 04.03.14 at 12:47 pm

Garth is right, real estate is not a good investment to buy. Plus after reading his book after the crash, I have all my money invested in guns, ammo, gates for my house, wood and kerosene. Just as he suggested. I hope he is gonna tell me when to sell.

No prob. We’ve forwarded this to the RCMP. — Garth

#102 shawn on 04.03.14 at 12:54 pm

I’m Unbalanced

Yes, I confess, I am unbalanced.

I am 25% cash, 10% prefs and 65% equities and hold just 16 positions including the prefs and the top four stocks alone are 60% of my equities. Yes, I am completely unbalanced.

And, I have been making out like a bandit for years now.

Just sayin’

(Professional investor here, don’t try this at home unless you have exceptional confidence in your stock selections… even then be VERY careful)

#103 Network Admin on 04.03.14 at 12:59 pm

“Even more amazing was that a whopping 6136 agents, a full 18.6% of the Toronto Real Estate Board did not sell a property last [2011] year.”

According to this:
http://realtylaboratory.com/2012/03/07/agent-statistics-the-top-1-of-toronto-real-estate-board/

#104 Corey on 04.03.14 at 1:12 pm

Meanwhile in Nova Scotia

http://thechronicleherald.ca/business/1179379-ns-real-estate-agent-named-in-sex-case?from=most_read&most_read=1179379

if it had been his own listing he could of given new meaning to “double ender”

#105 Pope Snuggledeebums the 666zz (aka Nosty) on 04.03.14 at 1:28 pm

#76 World According To Garth on 04.03.14 at 2:48 am — “Keep paying that carbon tax in BC stupid……”

Triple whammy — Animals running from Yellowstone (as on Dec. 26, 2004), Cascadia and New Madrid Fault.

When Yellowstone has a full-blown eruption, the sun’s rays will be blocked for a while. Thus it will be colder, the northern hemisphere will essentially be wiped out and cause a major increase global CC warming!

#106 Holy Crap Wheres The Tylenol on 04.03.14 at 1:32 pm

#100 Smoking Man on 04.03.14 at 12:30 pm
Good day for Ford.
Opp removing themselves from the case, conflict of who is the victim. Looks like Ford Bros were right, a tree hugging expensive witch hunt.
Shocking nothing much in the press about McWynne.

I search Google
Ford 30400 stories
Wynne 4000
WHY are there no cameras and reporters on her drive way?
It high time she walked head first into a camera…
1 billion wasted, and criminal deleted emails on her watch…

My call
4 more years of Ford
Wynne who…

_____________________________________________

My sentiments exactly, perhaps Premier Smoking Man?
Go ahead throw your hat into the election for premier, hell at least you’ve got balls!

#107 Derek on 04.03.14 at 1:37 pm

Calgary prices just hit a new high. You really want to buy now? How, exactly, does this differ from buying any other asset when it peaks? Apply common sense. — Garth

#108 HD on 04.03.14 at 1:38 pm

Just got a notice from BeeMo in the mail.

They now require me to maintain a $2500 balance (formerly $2000) in order for the monthly fee to be waived ($9.95)

The former deal was equivalent to a fully cashable GIC yielding 6% tax free.

Now it works out at about 4.78%.

Still a good deal….so I guess I’ll comply.

Best,

HD

#109 Derek on 04.03.14 at 1:38 pm

Calgary prices just hit a new high. You really want to buy now? How, exactly, does this differ from buying any other asset when it peaks? Apply common sense. — Garth

All market placed peaked in 2008-2009. What is your point? RE is a long term investment.

#110 Happy Renting on 04.03.14 at 2:01 pm

#66 Retired WI Boomer on 04.02.14

Saw a GREAT AD for “Sofa King”

“Nobody beats our prices, our prices are Sofa King low.”

go on now, try saying it…

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

Just TERRIBLE, LOL…

#111 2CntsCdn on 04.03.14 at 2:05 pm

The lack of listings (and subsequent sales) should create some interesting times. Agents will be caught in that difficult place ….. doing whats best for themselves (a listing and hopefully sale at any price at any cost) and doing what’s best for their client (ahhhh hah hah hah!). I think I know which way it’s going to go.

Funny …. what ends up driving house prices down might be agents working their own sellers hard to lower their price to create a sale (2% commission of a $450K sale isn’t that much different than 2% of $500K sale) ……. especially compared to 2% of a “No Sale” …. which won’t put much food on an agents table or keep a Beemer or Merc lease alive.

The most desperate people in a house sale transaction might be the agents from now on …. and not the buyer or seller. Everyone will be sweating bullets.

#112 learningfromyou on 04.03.14 at 2:07 pm

I cut off 0.16% of the interest rate and 1 year less in my mortgage just by telling them that the guy across the street was seducing me with a better offer.

#113 happity on 04.03.14 at 2:08 pm

Meanwhile, in the stock market world, Schwab is upset about hft.

The little guy who dumped a tangible, the house, and put the proceeds into the markets is being scalped, has been for many years now.

When the systems bails in over the next couple years, which the IMF and world Bank and g20 have put legislative words in place for, then all your digital assets won’t even be a blip on the computer.

At that time you will have wished you were living in a paid for house….

#114 airhead princess on 04.03.14 at 2:21 pm

“I am 25% cash, 10% prefs and 65% equities and hold just 16 positions including the prefs and the top four stocks alone are 60% of my equities. Yes, I am completely unbalanced.”

Just a suggestion……only buy the stocks that go up. That will pare your portfolio count down considerably.

#115 Penny Henny on 04.03.14 at 2:39 pm

Calgary prices just hit a new high. You really want to buy now? How, exactly, does this differ from buying any other asset when it peaks? Apply common sense. — Garth
———————————————————
S&P 500 just hit a new high. You really want to buy now? How, exactly, does this differ from buying any other asset when it peaks? Apply common sense.

Too funny

US stocks have been too lofty to purchase for months. I have repeatedly counselled against it. Same logic. — Garth

#116 Aggregator on 04.03.14 at 2:47 pm

#96 TnT

If the Financial Stablity Board couldn't get CMHC to disclose more data, nobody will. They just installed an ex Goldmanite and another ex banker with a pending FX rigging lawsuit to head CMHC, so Tal can forget about more data disclosure cause those two dudes only came to town to loot taxpayers even more!

#117 Dave on 04.03.14 at 3:10 pm

Nice form of tied selling. Should come with a warning: “Adventure” probably isn’t the only itch she’s got.

#118 espressobob on 04.03.14 at 3:37 pm

#102 shawn

Theres a problem owning indidual stocks especialy in this bull market.

Imagine a professional fund manager with a team of analysts probing a stock valuation in a board room on Bay st. Trouble is they get it wrong most of the time like most fund managers do! Think mutual funds. Most can’t even match their benchmark regardless of the MER.

So how is it that a retail DIY investor like you or myself thinks we have the upper hand?

And then there are those nasty corrections! Higher beta stocks get creamed while index investors rebalance.

One other point is asset allocation. Whether ‘conservative’, ‘aggressive’ or somewhere in between the risk one assumes is to meet their financial goals! This is one aspect a financial advisor must find difficult! Each of us have a unique circumstance.

Compounding is a powerful tool to an index investor like myself. The capitol invested ten years ago has not only doubled in value but is yielding over 15% today. Enough said!

#119 Shawn on 04.03.14 at 3:42 pm

Princess Diaries?

Princess at 114 was kind enough to rspond to me and advise:

Just a suggestion……only buy the stocks that go up. That will pare your portfolio count down considerably.

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

I buy stocks taht are under-valued and probbaly will go up. Technical analysts and momentum players buy what has already risen. They tend to buy high and sell low.

They look at stock prices rather than earnings. It’s like interpreting the world through shadows on the cave wall.

And why pare down the stock count? I said 60% of equity is in four stocks…

#120 live within your means on 04.03.14 at 3:50 pm

OT – Thought most Canadians would enjoy this, considering the winter we’ve had.

Bartley Kives captures the sullen attitude of Winnipeggers towards the neverending winter with this take on Simon and Garfunkel’s hit The Sound of Silence.

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

#121 Kilby on 04.03.14 at 4:19 pm

#79 Porsche on 04.03.14 at 7:09 am
97% of Canadians own real estate and 3% post here.
he he

I own. — Garth

We own, many who post here own but are always looking to buy, sell, move or just want perspective and find Garth’s site a refreshing change from the Global/CREA information channels. Very useful links supplied by many as well.

PS. The market for houses in the mid $300’s in Parksville and Qualicum Beach is HOT right now, huge pent up demand but hardly any listings or sales above $500K, nobody wants to commit that much money in this market it seems…..

#122 BG on 04.03.14 at 4:23 pm

#51 Andrew Woburn

Ever heard of programmed obsolescence?

And how decades ago, main light bulbs manufacturers agreed that a light bulb should never last more than X thousand of hours?

This (species) will not end well.

#123 Son of Ponzi on 04.03.14 at 4:31 pm

Shawn says:

I’m Unbalanced

Yes, I confess, I am unbalanced.

I am 25% cash, 10% prefs and 65% equities and hold just 16 positions including the prefs and the top four stocks alone are 60% of my equities. Yes, I am completely unbalanced.

And, I have been making out like a bandit for years now.
Just sayin’
(Professional investor here, don’t try this at home unless you have exceptional confidence in your stock selections… even then be VERY careful)
——————-
Don’t stop there. Write a book and get even richer.

#124 Assquatch on 04.03.14 at 4:32 pm

#102 shawn on 04.03.14 at 12:54 pm
I’m Unbalanced

Yes, I confess, I am unbalanced.

I am 25% cash, 10% prefs and 65% equities and hold just 16 positions including the prefs and the top four stocks alone are 60% of my equities. Yes, I am completely unbalanced.

And, I have been making out like a bandit for years now.

Just sayin’

(Professional investor here, don’t try this at home unless you have exceptional confidence in your stock selections… even then be VERY careful)

………………………………….

Out of curiosity, which are your top four stocks that total 60% of your equities? I’m guessing at least one bank stock based on your previous comments.

#125 airhead princess on 04.03.14 at 4:53 pm

“And why pare down the stock count? I said 60% of equity is in four stocks…”

You’re shotgunning….rookie mistake …..just pick a winner and have done with it…. 4 stocks…..and cash….too much indecision….preferred shares…..are you a doomsday prepper…what a waste…what are you afraid of….can’t make up your mind? Make a commitment and publish your analysis . You’ll be a hero if you’re right…..like I think that would please you. If you’re wrong…..We’ll respect you for having the balls to make a decision and put your money where your mouth is…..win or lose….like the pro you say you are….

#126 Ralph Cramdown on 04.03.14 at 4:57 pm

#118 espressobob on 04.03.14 at 3:37 pm
#102 shawn — “Theres a problem owning indidual stocks especialy in this bull market. Imagine a professional fund manager with a team of analysts probing a stock valuation in a board room on Bay st. Trouble is they get it wrong most of the time like most fund managers do! Think mutual funds. Most can’t even match their benchmark regardless of the MER. So how is it that a retail DIY investor like you or myself thinks we have the upper hand?”

You have to understand incentives for a professional fund manager. Aside from the true iconoclasts who run their own funds and can convince clients to stay with them, most fund managers are hired and fired by fund companies. What’s the reward for beating your index by 10%? An attaboy, a bonus, and maybe a lucite plaque for your desk, presented at a rubber chicken awards dinner. What’s the reward for lagging your index by 10%? Big client fund withdrawals, and you’re fired. This is what’s known as an asymmetrical payoff.

Now, if you’re constrained as to the stuff you can invest in, long only, no leverage, no options or futures, how do you construct a portfolio guaranteed not to lose more than 10% more than the market does, and with a high probability of not underperforming by even 5%? Well, you can’t afford to be out of any sectors in case they run away, or too overweight in any in case they blow up. Oh, and you have to engage in window dressing at the end of every quarter so your clients don’t see the dogs you were holding, and maybe see a few hot names.

As you can imagine, it’s hard to outperform under these conditions, even before the fees are taken off.

#127 David w on 04.03.14 at 5:23 pm

Just thought I’d let folks know Ottawa is screwed too. Just saw a condo add offering a 2015 Mercedes cla with the purchase of a new SoHo condo… 1 bdr starting at $298k.

Also had two r-agents call me to see if as a renter I am interested in buying and to see if they could represent me.

#128 Old Man on 04.03.14 at 5:23 pm

Some women need to be trained at saving money for me as am known as cheapo. I went today to buy a box of Haddock on special and gal said no. Tomorrow the 3 lb. box will be selling for a great savings, so come back on Friday and stock up. It has not been announced yet, so now have to buy her a small gift for a payoff like an apple or something. Real Estate women will never list with me, as will beat them down on commissions too.

#129 Blacksheep on 04.03.14 at 5:28 pm

live within your means # 120,

“captures the sullen attitude of Winnipeggers towards the neverending winter”
—————————————–
And people wonder why Vancouver RE carries a ridiculous premium.

75% of the population is located within 100 miles of the US border trying to avoid this type of weather (and find work). I Spent muggy summers in southern Ontario and Montreal as a youth with grandparents, no thank you.

Lets face it, the weather sucks in canada, living in Van is just making the best of shitty situation. We just need some more of that global warming to get rid of the rain.

#130 espressobob on 04.03.14 at 5:33 pm

#126 Ralph Cramdown

Trust me. I get your point! How is that the investing herd doesn,t?

Individual stocks may have a place for those who understand the real risk for those bets placed! Who am I to judge?

To be fair with those who own individual stocks at least be aware of the risk! Most have no idea what their engaged in! Glad I don’t work in this idustry!!!

Thank you for your thoughts!

#131 Happy Renting on 04.03.14 at 5:52 pm

#108 HD on 04.03.14 at 1:38 pm

How many non-deposit transactions do you have a month? I get ten free/month at CIBC for a $1k balance. Try shopping around for a better offer for BMO to match.

#132 SofaKing on 04.03.14 at 5:57 pm

‘One has to wonder why we are dodging this
truth about what we’ve become: a nation
that turns a blind eye to skimmers,
scammers and legal looting.’

This comment sums up well our FIRE economy that is creating so much debt.

#133 neo on 04.03.14 at 6:36 pm

#82 Q2 CLASS DUPLEX-DRIVE

You do realize the U.S. economy imploded a few weeks for the general election in 2008 right? Don’t you think that would be something the Republicans in power would have wanted to “hold off” for a bit longer.

#134 4 AM Sunrise on 04.03.14 at 6:55 pm

#108 HD on 04.03.14 at 1:38 pm

Further to #131 above, at RBC, if you get a Visa card (that you don’t have to use), and you keep $100 in some kind of investment account, then you get 10 debits per month. The fee is usually $4/month. $48/100 = 48% return plus whatever they’re going to pay you for the $100.

#135 Shawn on 04.03.14 at 7:02 pm

Stocks – but no names…

Assquatch at 124 asks me:

Out of curiosity, which are your top four stocks that total 60% of your equities? I’m guessing at least one bank stock based on your previous comments.

***************************************
Correct one is a U.S. bank
One is a U.S. housebuilder
One is a Canadian Retailer
the fourth is a Canadian property developer

Three of these would be considered larger cap, the last is sort of small to mid-cap by Canadian stadards. Not a micro cap at all. Three of them pay dividends and three are clear value stocks.

God help me… that does sound like a lot of concentration doesn’t it. Not for the faint of heart

On average people are better off to go with an index and a balanced approach. My situation is complex but I believe gives me some leave to be much more aggressive.

#136 Cici on 04.03.14 at 7:34 pm

Too many questions surrounding Canada’s housing market: http://www.thestar.com/business/real_estate/2014/04/03/gta_house_prices_hit_new_record_in_march.html

#137 espressobob on 04.03.14 at 8:01 pm

#135 shawn

Theres an old saying about giving someone enough rope!

#138 Kingarthur on 04.03.14 at 8:16 pm

#24 Humpty Dumpty : Check the source man: Who the heck is Brannon T. House?

“The great need of the hour is for you and me to warn the church of the false teachers that have come in among the church through a religious Trojan horse.”

Is that Garth or the Bear?