‘It’s not just a house…’

WARRANT modified

Does the Royal Bank endorse bidding wars? Let’s hope not. It’s the worst environment possible in which to buy a home.

As this pathetic blog has chronicled over the past months, unethical agents have pulled almost every trick possible to encourage multiple bids and a frenzied, auction-like emotional hothouse climate for the dewy virgins with their fat pre-approvals. Properties are purposefully priced below market. Offers aren’t accepted until a specified day and time. Showings are scheduled to maximize traffic, make suitors trip over each other and foster a spirit of bloodless competition. Agent-generated tweets promote new listings, warn buyers to come early, and prod them to make their first offer ‘really count’.

The results have been dramatic. Bidding wars with up to two dozen players have pushed prices beyond every historic norm, with some Toronto houses selling for 170% of list price. It could be a decade, or maybe forever, before the ‘winning’ bidder’s equity rises to equal what she actually paid for the place.

Worse, bidding wars get reporters all aroused, so media attention creates even more of them. Pretty soon, in a market where listings are scarce, mortgages cheap and bankers loose, it’s the dominant meme. You want a house? Then be prepared to fight. Whatever it takes, baby. Because when it comes to a hipster’s first home, losing is not an option. Just ask the bank.

I mean, watch this.

It’s called content marketing, which simply means making ads people want to watch because they have substance and reach. RBC’s harnessed this concept in a new series of digital fake movie-trailer videos it’s loaded on its web sites, tweeted out to the house-horny universe, and stuck on YouTube. As marketing, it’s hot stuff. Aimed squarely at the first-time housebuying demographic of Millennials (and beyond) who don’t read papers or watch the 6 pm news.

Of course, with these videos RBC’s decided to help push real estate prices higher, so mortgage amounts can increase. That makes business sense, but it’s not exactly what we all need from the nation’s biggest lender. The message here’s simple: don’t be a responsible, hesitant, gentle, reasonable schmuck whose rationality (“it’s just a house, honey…”) ends with a wife in tears and a whole lot of hurt coming.

Nope, grow a set, swagger into the fray, whip a smoking offer from your holster and slap that sucker down. Blow away the competition with an RBC financing that will leave wifey whimpering in awe and thanks that you actually love her after all. So what if the payments on your massive VRM will double within five years? You are a god. A cowboy warrior. Biker king. Construction dude with badass tats. You won.

So, there we go. The last line has been crossed. The bankers handing out money want you to worry more about the emotional consequences of not buying a house than the financial responsibilities of doing so. We’re in an age now when taking on boatloads of debt becomes the right thing to do for your family, your relationship and (of course) your mom. Buy the damn house. You’re entitled. She wants it. And the bank’s just here to help. Honest.

So is RBC endorsing bidding wars with social media marketing?

I called the bank’s corporate communications team today and asked that question. “We’ll get back to you,” Mark Hamill said. But, alas, did not.

If I cry, will it help?

249 comments ↓

#1 totalinvestor.com on 04.04.14 at 6:11 pm

First

Grow up. — Garth

#2 Jas on 04.04.14 at 6:16 pm

First!

#3 Derek R on 04.04.14 at 6:17 pm

I’m glad I’m renting. This bidding wars thing looks dangerous to my wallet.

#4 Happy Renting on 04.04.14 at 6:18 pm

I can’t even bring myself to watch the video. I feel puke coming on!

#5 Paul on 04.04.14 at 6:19 pm

Showed a single woman I Townhouse to she wants a mortgage no more than 300k max the bank pushed her to take one for 425k thank goodness she declined!

#6 Happy Renting on 04.04.14 at 6:20 pm

Oh, and RBC’s communications guy is named Mark Hamill? Maybe those ads contain a Jedi mind trick. :)

#7 Millenial on 04.04.14 at 6:29 pm

what the HELL did I just watch?

#8 Freedom First on 04.04.14 at 6:36 pm

Garth, no kidding, I saw those videos before I tuned into your blog, and my first viewing of the videos, I honestly thought it was a spoof on the RE/financial idiocy of Canadians. Tragically, when I realized my error, and returned to reality, I was aware that I really did know it was RBC advertising immediately, but my subconscious was denying that Canadians were really this stupid. I don’t like to use the word stupid, as I prefer to use the word unaware, but I can’t take it any more. The Herd/Sheeple/Canadians are as stupid as RBC recognizes. So many self-interested parties playing Canadians for being beyond stupid, and they have won. Sadly, this stupidity is backed by the taxpayers. However, thankfully, many of us have quietly and legally responded to this idiocy by profiting from it. Thank you for showing us the way to do so Garth, and save us from the final solution. Financial castration. I know you could have saved more Garth, and many others have tried to do so in our own small way too, but we did our best. It’s going to be a bloodbath.

#9 AK on 04.04.14 at 6:37 pm

.#2 Jas on 04.04.14 at 6:16 pm
First!

*****
u missed the prestigious title. Keep trying and u may get it some day!

#10 DocInWaitingRoom on 04.04.14 at 6:39 pm

Homes like cars they going going gone!

Place bids at 12pm and make sure you pay 150% of price…

Suckas!

#11 Lead Paint on 04.04.14 at 6:41 pm

We have our Prime Minister to thank. Banks want to goad each and every one of us to buy houses and borrow from them as tax payers insure losses. Then they have the nerve to call it a ‘free market’. It’s a massive poker game played by the poor with borrowed, government insured money.

#12 Chris on 04.04.14 at 6:41 pm

That video is amazing!

We held off buying a house in 2007 as the numbers just did not work (much cheaper to rent even then) and whenever my wife wants to buy we run the numbers again: still renting.

#13 Joe Schmoe on 04.04.14 at 6:47 pm

Wow.

I would sell my RBC stock but sadly this will work.

My friend sold a house in Cowtown yesterday…20 people showed up on the first day of listing. Bids over asking. No inspection, no conditions on accepted offer.

House has several significant defects. But who cares! It’s a home!

“Would you buy it back for the sell price?”
“Hell no? Do I look like an idiot?!!?”

#14 Jimmy on 04.04.14 at 6:48 pm

Third!

#15 East Van on 04.04.14 at 6:48 pm

As we saw in the 2007 /2008 Great Financial Crisis the .1% will risk anything for short term profit – even if, in the long term, it takes the whole system down. This is modern casino capitalism. To expect better of the nice friendly Canadian banks is foolish. The CEOs here will risk all in pursuit of their multimillion dollar bonuses just like the guys on Wall Street did.

#16 AisA on 04.04.14 at 6:51 pm

I don’t think it will help if you cry.

I may cry from laughing however. Yup, cracked a rib…thanks.

This brings to mind the quip about the universe and human stupidity by some frizzle haired guy a whiles ago. Infinite is it not?

#17 jose on 04.04.14 at 6:51 pm

thanks to CMHC and the feds, the banks have little skin in this game, it is so wrong!

#18 Naga on 04.04.14 at 6:52 pm

I am back in europe for the VinItalia 2014 wine expo. Record number of visitors exected but the rest of the country and economy is in tatters.

RE prices have again dropped from last year’s level which was lower than the year before and on and on…..it has been about 6 years of dropping prices.

The govt is talking tough on reforms but that is an ongoing theme – the real shame is the uneployment of the youth – most university graduates are bailing to anywhere but Italy – unfortunately they do not speak chinese and are not used to hard work.

Wages are barely enough to cover rent and other living expenses – many companies are shutting down and relocating – but Chinese, Indians and many from various african countries keep coming. Interesting contrast on expectations.

I am glad that the food, wine, weather and the ladies still rock…..is it time to buy yet in Italy and other parts of depressed europe? – I dont think so!

Hell we have nothing – nada – cazzo to complain about in Canada…..best country in the world and it is a different world with or wothout RE insanity!

#19 hohoho on 04.04.14 at 6:55 pm

I actually find the comparative film making triplet amusing lol
http://www.youtube.com/watch?v=6BN_viz2oFI
http://www.youtube.com/watch?v=wxcK9Uc0Ujs
http://www.youtube.com/watch?v=ghOnb-eMbLU

#20 Ralph Cramdown on 04.04.14 at 6:56 pm

The hired the guy behind National Lampoon’s Christmas Vacation, and Benny and Joon, and they got THAT? Wasn’t Alan Smithee available?

#21 bill on 04.04.14 at 6:58 pm

a very expensive lesson is about to be learned for quite a few new home buyers.
you have done your best garth …cant say they weren’t warned.

#22 Chickenlittle on 04.04.14 at 6:58 pm

“If your friend jumped off a financial cliff, would you?!?!?”

My husband and I are already thinking of downsizing. We JUST moved into our new place and we both think it’s too expensive. Thank GOD we rent so it’ll be easier to leave!

We miss saving money like we used to. I can’t even imagine owning with all the costs involved and RBC wants people to owe MORE…

. “The bankers handing out money want you to worry more about the emotional consequences of not buying a house than the financial responsibilities of doing so. ”

Good one! I’m using that…

#23 KommyKim on 04.04.14 at 6:59 pm

RE: I mean, watch this.

When I first started watching this video, I thought it WAS a comedy skit! Then, to my horror, I saw that it is an actual ad for RBC!

#24 A Yank in BC on 04.04.14 at 7:02 pm

Shame on RBC. Glad I don’t do any banking there. Those of you who do might think about pulling your deposits and telling them exactly why.

#25 Steve on 04.04.14 at 7:04 pm

The whining from these stooges is going to be deafening when the inevitable occurs. For most of my life I have struggled with the concept of human stupidity. Is it real? How is it possible? How can a human brain be used as a hammer? I reluctantly had to admit that it’s real. I studied it for a while and found this explanation. “Stupid behaviour in humans is characterized by self destructive actions or maladaptive behaviour that is undertaken without duress in the full and willing knowledge of the perpetrator of the act”. It is this quality of informed self harm that provided me with insight on stupidity. It is after all an amorphous area of research and being that we are all guilty of it, difficult to objectify. All that being said, the above post maybe the black swan of stupidity. These troglodytes are tearing down the house!

#26 Joe Anderson on 04.04.14 at 7:06 pm

That ad is literally awful. I admit I had to stop watching at the point the wife said, “…but we’re running out of time”. I am all for free enterprise and the fact that we have reasonably well run, profitable banks in Canada is good for our economy, and good for society, but I cannot condone this type of manipulative, cynical marketing. Surely they could tone it down and still be highly profitable and earn superior returns for their shareholders. It would be a shame if banks went down the same road as tobacco companies and casinos and actually started profiting from unethical behavior that actually harms consumers. I think they can do much better. Thanks, Garth, for holding them to account and challenging them to in fact do better than this.

#27 zee on 04.04.14 at 7:07 pm

Hi Garth,

Why blame the banks and realtor for this, its the people decision to pay these crazy prices. I don’t see anything wrong with what realtors do to get multiple offers. Their job is to get the highest price for your property.

#28 frank le skank on 04.04.14 at 7:07 pm

Yet more proof of how gullible people are.

#29 Chickenlittle on 04.04.14 at 7:12 pm

BTW: that clip was lame. It rates right up there with the crying Scotia Bank lady that paid off her mortgage early and got surprised by a marching band.

Good thing there’s no spoon nearby or I may have gouged out my eyes.

#30 greyhound on 04.04.14 at 7:12 pm

Great writing today

#31 Entrepreneur on 04.04.14 at 7:16 pm

In the seventies and much, much younger when looking for a house with a realtor he did not say that much. He showed us houses and told us the prices but that was it. Nothing else. No push like it is today. I would like to know if these realtors and bankers advise they sons/daughters to buy now. Probably not.

Mark Carney did say that banks are a business like other business. To me that means to balance the books and make a profit to make the business work.

This will be a stab in the back for us one day as we should show respect for the youth. Save the system or go down the correct road. I say go down the correct road first then the system will correct itself.

#32 TurnerNation on 04.04.14 at 7:19 pm

I recall this Saturday Night Live sketch from mid 90s.

A new pill for spouses: “Balz-off. (Now in Italian strength!)” was the line.

http://en.wikipedia.org/wiki/List_of_Saturday_Night_Live_commercial_parodies#B

#33 TurnerNation on 04.04.14 at 7:22 pm

TeeHee. On the wire today:

Score: Fiat 1.

“DJ Canada Halts Development of Digital Currency Program

By David George-Cosh
Canada is halting development of its fledgling digital currency program and looking to sell the business, the Royal Canadian Mint said Friday.
The Mint announced plans to develop a digital currency, dubbed MintChip, in April 2012, for use in small online payments. At the time, it described MintChip as the “evolution of physical money, with the added benefits of being electronic.”
Mint spokeswoman Christine Aquino said plans regarding the virtual currency “matured” and that the Mint considers turning development over to the private sector one of MintChip’s “natural next steps.” “

#34 TS on 04.04.14 at 7:24 pm

The banks and realtors are pure evil for misleading people with these damn bidding wars. You simply cannot trust anyone these days – not government, not banks, and especially not real estate agents. The corruption at all levels is unbelievable.

#35 Daisy Mae on 04.04.14 at 7:24 pm

“RBC’s harnessed this concept in a new series of digital fake movie-trailer videos it’s loaded on its web sites, tweeted out to the house-horny universe, and stuck on YouTube.”

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

The 21st century version of the ‘snake oil salesmen’…

#36 dosouth on 04.04.14 at 7:32 pm

Really, this is the level of conscious buyers that RBC believes are investing in houses? Wow, the world is in for a whole new market strategy…… simplicity at its best/worst.

#37 Daisy Mae on 04.04.14 at 7:35 pm

#11 Lead Paint: “We have our Prime Minister to thank.”

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

Yes. He’s made all the decisions. His puppets have just done as they were told. And now Carney and Flaherty have bailed. So, Harper…where does that leave YOU?

#38 Millenial on 04.04.14 at 7:38 pm

Garth,
I’m watching Income Property right now on HGTV. You know, that show with Scott MacGilvray. The premise is a couple buys a property and Scott renovates the place so there’s a rental unit that pays the mortgage that the couple otherwise probably couldn’t afford. It’s on HGTV. Anyway, I just noticed there’s a commercial featuring Scott during the show, he’s peddling CIBC mortgages… lol.

#39 saskatoon on 04.04.14 at 7:41 pm

#8 Freedom First

your seemingly hesitant analysis concerning declining canadian intelligence is bang-on astute.

instead of finding the above ads offensive and insulting…joe blow canuck swallows the tripe whole, and asks for more.

figures–since most are “unaware” victims, imbibing in the middle of NaF ground-zero.

#40 Daisy Mae on 04.04.14 at 7:45 pm

#24 A Yank in BC: “Shame on RBC. Glad I don’t do any banking there. Those of you who do might think about pulling your deposits and telling them exactly why.”

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

Futile. And I’ll tell you why. They’re all the same.

#41 Saskatchewan Skeptic on 04.04.14 at 7:46 pm

Watching that video made me sick mostly because I know exactly the psychology behind it and the truth. I am so sick of hearing about people in my close circles being sucked into this volatile market not being given the whole story. As Garth covered yesterday, the numbers are not being disclosed and today, I’ve seen commenters on The Province talking about how its an invasion of privacy to disclose the stats. This is BS. How can we make any statistical analysis of what housing looks like if we can’t see any real numbers!? The commenters/homeowners know it too. We live in a world of open communication and Canada needs to start stepping up now, before everyone is eating dog food. I make over $70,000 a year and have been priced out of REGINA for crying out loud! This is absolutely ridiculous and the young couples who are buying now aren’t just going to be hurt financially in the long run, it will ruin a lot of them. Divorces, pain, suffering and unimaginably worse things can happen by financially ruining people who know nothing but happy times. I’ve seen it all.

On a side note, I just moved out of my old place. Slum-Lord couldn’t even afford to fix a broken window when I moved in. I was there for 6 months and didn’t wreck a thing but she is screwing me on the damage deposit because she can’t afford to pay me back. Her voicemail box is full from others moving out last month also trying to get their deposits back. I would love to report her to the housing board but they wont do anything. Plus I feel sorry for her dumping her life savings into the 100 yr old 4plex thats falling apart in a rough area of town (General Hospital) and now sweating. If she can’t even afford to give me a deposit back, I could only imagine the state of her “business”.

Burn. Go Riders.

#42 The Patient on 04.04.14 at 7:53 pm

Incredible.

#43 mark on 04.04.14 at 7:54 pm

“The one thing they were missing was a home”

Funny, they didn’t look to be on the streets.

#44 Julie on 04.04.14 at 7:54 pm

I can’t believe that ad is real! Say what you will about banks and realtors – and there’s plenty to discuss – but none of this would be happening if people weren’t biting. We’ve owned 3 houses in Toronto in the last 15 years and the bank has always tried to get us to sign on for way more than we wanted and agents have shown us houses priced above our comfort level. We’ve always said no thank you. In the end, the responsibility lies with the consumer. Apparently most people have way more tolerance for debt than we do!

#45 Smudgekin on 04.04.14 at 7:59 pm

Answer your door phones RBC snottys:

Canada is just a protected boundary for five banks and their profits and the bought politicians.

#46 Observer on 04.04.14 at 8:02 pm

One way is to live single and minimalist, thus bypassing this dog and pony show. Lots of money in the pockets at the end of the day, followed by a good night’s sleep with no fear of falling off the ladder. Having a family in Canada is now in many cases, a highly competitive, expensive joke….

#47 Sean on 04.04.14 at 8:10 pm

Renting and loving it. It’s a renters market in Markham. You should definitely lowball the landlords, some of these poor devils are bleeding carrying empty rentals for months on end. I figure I am being subsidized to the tune of $1000/month

#48 Uh Oh Canada on 04.04.14 at 8:12 pm

Wow. Scumbag advertising. Not sure if I should boycott RBC or buy their shares.

#49 failure on 04.04.14 at 8:18 pm

I failed…. tried so hard to convince friends with almost zero net worth, late forties, one child, about $100k in debt not to buy a house. But wait, they got it (hear the excitement?) for only $560 (semi in Toronto) when it listed for $495. Needs work, jobs tenuous… and I’m the bad guy who just doesn’t get it. I wish them luck because if they don’t have it, things will get nasty really quick.

On banks I will say it again… the nastiest kind of business for those not smart enough to question the bank’s motives at every turn. (Just threw away yet another request to increase the credit limit on my credit card!)

#50 saltpony on 04.04.14 at 8:18 pm

I think it is shocking that comments have been disabled on all three trailers. It speaks volumes that we can’t publicly holler back against this type of financial-emotional manipulation.

Half of my 30-something friends at work are just like Chris and Jenny, renters feverishly calendaring the date when they too can sign up for a $600,000 mortgage on a combined yearly income of $140,000 pre-baby.

The other half are Chris and Jenny three years down the road. They don’t go anywhere exciting, do anything fun or buy new clothes anymore.. they just look shabby and exceptionally house poor because they got the $600,000 house of their dreams. They watch the renters come back from hot mid-winter vacations all tanned and relaxed… and look a little wistful.. but f*ckit! They own a house!! This is the ultimate benchmark of the successful-Canadian dream.

An actual conversation with the mortgaged-to-the-eyeballs couple went like this:

Me: Any plans this winter?
Them: We’ve decided to take the kids to Hawaii because making memories is more important than just paying bills…

..more important than what? Than paying off your ridiculously huge gigantic mortgage? And how did they afford it? ahhhhh yes.. the bank gave them a little repayment holiday for Jan and Feb. Now they are sunny and tanned like the rest of their renter friends. Oh ya.

And we are not allowed to publicly comment on YouTube about this. Shame on you RBC.

#51 AisA on 04.04.14 at 8:22 pm

The humor wore off. I had to top a pizza with perogies to find comfort.

I hope I can find enough GMO free corn to pop and butter for the Canadian RE meltdown show. I will need about 5 years worth.

#52 Vlad on 04.04.14 at 8:26 pm

I think the writing is on the wall. The truth is dawning on people. If you don’t buy now you will probably be priced out of the market forever. OK there might be a small dip in prices some time soon. But when inflation finally kicks in from all the FED money printing, house prices are going to head to the moon. I remember in the early 1970’s when my wife and I were hemming and hawing over buying a single family house in Etobcoke in in the $30,000 range. Thank God we bought it and now those houses are approaching a million. Ten years from now average house prices could be $10 million. Buy now before it’s too late. (No I not a RE agent)

#53 Fred on 04.04.14 at 8:32 pm

Can’t wait for part two coming out next year….
“The Foreclosure”. She’s on mat leave, he’s laid off, Christmas was skipped and the bank keeps calling! “Hi it’s RBC, pay up or your dream gets it!”

#54 45north on 04.04.14 at 8:48 pm

RBC is stupid.

there will come a day when that clip will be played in front of a judge and some senior vice-president will sincerely wish that it had never been made.

RBC needs to ask what is the collapse of housing going to look like, when it happens where does it need to be? It does not want to be seen as the debt cheerleader, using polished, professionally made videos to push the hapless into debt.

#55 45north on 04.04.14 at 8:49 pm

stupid!

#56 X on 04.04.14 at 8:51 pm

Garth, don’t worry, Joe Oliver is watching the RE markets.

Oh, wait, he is only going to watch and take a hands off approach. Just assume the market is peachy and all will take care of itself.

How did that work for Greenspan?

#57 Andrew Woburn on 04.04.14 at 8:54 pm

From http://www.canadahistory.com/

QUOTE – The Family Compact was a group of powerful men in Upper Canada who held power through the legislative assembly and the executive council. They were men who controlled the business, the politics and the religious affairs of the colony. The executive council was appointed by the Governor of the colony under the general recommendations of the legislature. The legislature was elected from the general eligible voters but through pressure, blackmail, bribery and other methods, the Family Compact insured that it was their people who were elected and the executive council also threw their support behind the Compact candidates.

Their power had grown after the end of the war of 1812 – 1815 and they managed to hold power until around 1848 when responsible government was final granted and fair election could be held. – END QUOTE

So either democracy triumphed in the end or the Compact learned how to use banks and politicians. What’s your bet?

#58 Smoking Man on 04.04.14 at 9:04 pm

DELETED

#59 Old Man on 04.04.14 at 9:05 pm

#57 Andrew Woburn – I bet that history repeated itself as the Family Compact sure sounds like the Con Reform Alliance of today.

#60 Jackofall on 04.04.14 at 9:09 pm

Haha, what a shitty house. That couple sucks. Although, given the current environment, I guess that’s the only place that RBC could afford to film at.

#61 Shawn on 04.04.14 at 9:15 pm

MORE CHUM FOR BANK HATERS

The phone just rang. It was TD Bank calling for my 18 year old son to offer a pre-approved Visa card.

He has a student account there.

So, feel free to have a feeding frenzy on why this is evil. Getting kids hooked young on the drug of debt etc.

As for me, I figure it is just marketing and it’s a free country in that respect.

#62 Catalyst on 04.04.14 at 9:22 pm

The Rom-Com trailer was fantastic. I will take these satirical ads over Canada action plan ads allllll day.

#63 Vangrrl on 04.04.14 at 9:24 pm

That was nauseating!!
But the other two ads (horror and romantic comedy) that #19 posted were pretty funny.

#64 Vancouver RE agent on 04.04.14 at 9:24 pm

LOL. You guys don’t get it do you. PRICE DOESNT MATTER. Your RE purchased today is GUARANTEED by the government to keep appreciating. Rates have no other place to go but DOWN (Japan has 0.6% for the longest time). I see mortgages from TD and RCB to go to 1.5%-1.7% in the near future. On top of that inflation eats away your purchasing power. The LAST place you want to park your money is RSP. Those will be expropriated by the government long before you get to collect them. Just ask yourself this question: Have you ever seen any person alive that retired at 65 and lives off his RSP? Of course not. Over your lifetime those always go down to ZERO. RE is the only asset you will have when you retire. And it will be there for you.

Love your material. — Garth

#65 blase on 04.04.14 at 9:25 pm

Re: Saltpony: Your post is so good I’m posting it again.

In the vain of “16 and Pregnant” I think they should have a new show called “30 and mortgaged for life”. The similarities in the two shows would be eerie.

think it is shocking that comments have been disabled on all three trailers. It speaks volumes that we can’t publicly holler back against this type of financial-emotional manipulation.

Half of my 30-something friends at work are just like Chris and Jenny, renters feverishly calendaring the date when they too can sign up for a $600,000 mortgage on a combined yearly income of $140,000 pre-baby.

The other half are Chris and Jenny three years down the road. They don’t go anywhere exciting, do anything fun or buy new clothes anymore.. they just look shabby and exceptionally house poor because they got the $600,000 house of their dreams. They watch the renters come back from hot mid-winter vacations all tanned and relaxed… and look a little wistful.. but f*ckit! They own a house!! This is the ultimate benchmark of the successful-Canadian dream.

An actual conversation with the mortgaged-to-the-eyeballs couple went like this:

Me: Any plans this winter?
Them: We’ve decided to take the kids to Hawaii because making memories is more important than just paying bills…

..more important than what? Than paying off your ridiculously huge gigantic mortgage? And how did they afford it? ahhhhh yes.. the bank gave them a little repayment holiday for Jan and Feb. Now they are sunny and tanned like the rest of their renter friends. Oh ya.

And we are not allowed to publicly comment on YouTube about this. Shame on you RBC.

#66 T.O. Bubble Boy on 04.04.14 at 9:27 pm

So, does RBC get a pass on this one because their former employee is saving us all from High Frequency Trading?

#67 joblo on 04.04.14 at 9:27 pm

So having the baby wasn’t the BIGGEST Decision of their Lives?

Buying a HOME is???

And Rick was a LOSER!

#68 Smoking Man on 04.04.14 at 9:37 pm

Double test

#69 Chris on 04.04.14 at 9:37 pm

We are but a few heartbeats away from becoming Detroit 2005.

#70 John in Mtl on 04.04.14 at 9:42 pm

@ #48 Uh Oh Canada on 04.04.14 at 8:12 pm
“Wow. Scumbag advertising. Not sure if I should boycott RBC or buy their shares.”

I say, do both! May be unethical, depends upon how elastic your personal integrity is.

#71 James on 04.04.14 at 9:46 pm

#26

“I am all for free enterprise and the fact that we have reasonably well run, profitable banks in Canada is good for our economy, and good for society”

I disagree entirely. The banking sector in Canada is coddled. It is protected from foreign competition, and subsidized heavily. (e.g., 80 billion purchases of mortgage securities, CMHC, TARP)

Canadian banks do not have to take risks to make profits. Hence, they play almost no role in financing the start of new businesses, which is inherently risky.

This causes major issues at a macro level, where new ventures in Canada cannot obtain financing. That in turn impacts productivity, competitiveness, and jobs.

Your coddled banking sector is one of the reasons that Canada has a non-diversified economy.

#72 Scumop on 04.04.14 at 9:46 pm

First, to #53 Fred – made me laugh.

Incoming: A plausible suggestion. The human mind in most circumstances will just accept it as fact. It takes a lot of energy and effort to question the incoming noise. So much easier to just accept.

It does not help that critical thinking in depth is not taught. In fact it seems to be actively discouraged.

So imagine yourself in the position of predator in this pool of sharks and seals. Once you realize the prey will believe almost anything, you can get out the shovel and trowel it on. If others are telling the same story, plausibility is increased (all the agents say the same thing, bankers too). The unquestioning herd will hammer down the doors imagining a promise of happiness was made.

Still, people can learn to question things even if they don’t “get it” on the first 10 or 20 tries. Garth, you do a great service. Keep pounding away at that keyboard. You give us the arguments, frame, and facts we need to challenge people who really need a waking up.

#73 Spectacle on 04.04.14 at 9:54 pm

Ha !

Love it Garth, thank You. Really took the blog in a great direction today, full media use and amazing message.

Everyone, If you keep clicking on related RBC realty youtube vids they get even creepier and creepier.

While on there you tubing , try out ” Rose Koire and her Behind the Green Mask ” book/video, to see why & how the North American middle class is being completely gutted!

Fun stuff, should change your life view.

Regards All

#74 Stupesing in Cabbagetown on 04.04.14 at 10:00 pm

Huh? “The one thing they were missing was a home.” Much of this flick appears to be in their home where they cook, entertain guests and make babies. It looks like a perfectly decent place; it’s not a cardboard shanty by the side of the road. What am I missing?

#75 4 AM Sunrise on 04.04.14 at 10:01 pm

#61 Shawn on 04.04.14 at 9:15 pm

Yeah, but if he’s his father’s son, he’s probably been raised right, and I would think he’d be smart about credit. I got my first credit card when I was 18. I wasn’t even solicited – I applied to the bank myself. Never carried a balance in my life. Thank you Cheap Immigrant parents for teaching me to be debt-averse!

See what your son can milk the credit card offer for (cash back? Extra points? Free t-shirt?)

#76 4 AM Sunrise on 04.04.14 at 10:02 pm

This real estate circus is like a financial version of the Hunger Games where we watch couples annihilate each other for what is a Pyrrhic victory in the end.

#77 TheCatFoodLady on 04.04.14 at 10:05 pm

This isn’t complicated. It’s about highly accomplished, well trained & smooth salesmen & women pushing product to individuals, couples & families who WANT. They may not entirely be sure what exactly it is they think they want but if the basic desire for a ‘home’ is there, they can sure be talked into wanting a whole lot more than they could have imagined.

Real estate agents know how to appeal to emotions, as do mortgage salesmen. Look at the 3 RBC videos – I did. “We’re running out of time!” Yeah – good jobs, a baby on the way, active, fun life with lots of friends & what appears to be a decent rental. But “It’s more than a house, it’s a HOME!”

Translation: “Renting means – no matter what else you’ve got going for you – that you’re not settled, you’re MISSING something major, your life isn’t COMPLETE.”

Garbage – renting or owning is a huge decision that should be based on a whole lot more than raw emotion & slick salesmanship. But as has been pointed out, there’s no shortage of stupid in the world. We’re all gullible to a degree; we all make mistakes; especially buying things. And most of us learn from them.

In terms of financial stability – buying the wrong house at the wrong time – it’s a mistake too many may regret the rest of their lives.

The banks have indeed nothing to lose. CMHC covers owners with little skin in the game; banks are fine there. I think initially, they’d come after home owners in trouble NOT covered by CMHC insurance.

Many renters show as few brains. I’ve seen many on fixed incomes figure they can afford rent on a place they’re looking at now… if they pretend they’re going to eat less, heat less. And often, they don’t consider the inevitable annual rent increases.

Some of the young ones scare me – just had two young couples move into our building. They work; no assets, no savings. All day today I watched a parade of ‘rent to own’ delivery trucks bringing in ‘leather’ furniture, big screen TVs & other goodies. They look at the monthly payments – period. Both couples are having housewarming parties tonight – glad they don’t live on my floor or my end of the building. Been lots of pizza deliveries & beer deliveries.

Yeah, they’re living the dream.

I hope it doesn’t turn into a nightmare.

#78 sheane wallace on 04.04.14 at 10:08 pm

stopCMHC.com

It will bankrupt us all.

#79 Boombust on 04.04.14 at 10:10 pm

That ad is DISGUSTING!

The “faux concern” of the broker made me want to retch.

#80 AisA on 04.04.14 at 10:12 pm

#71 James on 04.04.14 at 9:46 pm

Very astute, and succinct, at the same time. Damn.

#81 earthboundmisfit on 04.04.14 at 10:18 pm

Amazing…this morning Lou Schizas is going on that we all need a home, but it’s not an investment, just a roof over your head… at these prices, who is he kidding?? Easy for him to say when he has a seven plus figure income; and apparently boomers will not be downsizing; they will want to stay in their paid off homes as long as possible, since it’s cheaper than paying rent.
Apparently, Garth, even “you are right eventually” .
Am I on a different planet?

#82 Trojan House on 04.04.14 at 10:19 pm

#25 Steve

Re: human stupidity

This is exactly what politicians and bankers know we are. Every line they feed us we buy it. People who comment on this blog seem to be reasonable, but how many of us believe the “official” line we’ve been fed on 9/11 for example? Exactly. Despite all the evidence to the contrary, we still believe 9/11 was carried out by Islamic terrorists.

And if that comment above makes you think I’m stupid, I challenge you to look at all the evidence that has been produced, and not only the evidence that has been produced by the American government.

Feed the sheep and they will follow.

#83 Cici on 04.04.14 at 10:25 pm

Foreclosures up in March in Quebec again. Up 14.2% year over year from March 2013. And along with the losses, higher debt loads: average unpaid mortgage debt was in March $250,800, up from $185,100 last month.

http://argent.canoe.ca/vos-finances/immobilier/les-reprises-hypothecaires-toujours-la-hausse-3042014

Sobering statistics.

#84 Porsche on 04.04.14 at 10:27 pm

Two offers on the 1,700 sqft bungalow in Edmonton asking $499,000

I know the real estate agent, he’s a friend of my sister and brother inlaw ( the sellers)

He’s starting his 4th year and I asked him what kind of money are you making?

He said 1st year $85K, 2nd year $110K, 3rd year $150K and he’s not aggressive, works maybe 20 hours a week.

This is Edmonton where $500K buys you a move up house, not a rotted out starter semi like in TO or Van.

Not bad money.

#85 einsturzende neubauten on 04.04.14 at 10:28 pm

great career and full head of hair? that guy should not only be living in a much nicer (rented?) home but also have a much better looking wife.

#86 Cici on 04.04.14 at 10:29 pm

…sorry, last sentence should read:

average unpaid mortgage debt was $250,800 in March, up from $185,100 the month before.

#87 Blobby on 04.04.14 at 10:30 pm

Maybe RBC’s Communication director should use the force?

(Or a better star wars joke – im too tired)

#88 Small Steps on 04.04.14 at 10:34 pm

My advise to Jenny: forget about the house and start panicking about finding safe and reliable childcare!!
…I am so happy to be a renter and RBC shareholder right now.

#89 Cici on 04.04.14 at 10:38 pm

One more thing, no actually two…

A general Google news search for foreclosures in Canada provides NO RESULTS. Hmmm, who’s hiding the info? I couldn’t find the Quebec data in English either, although it must be out there somewhere on the Web…

Next interesting news bite: The 86 richest Canadians are worth $178 billion, and have as much as the 11.4 million poorest.

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

Let me guess before reading the rest of the article: the 86 richest are land and property developers and the 11.4 million are house-rich (for now), cash-poor sheeple.

#90 Humpty Dumpty on 04.04.14 at 10:41 pm

Its not just a spill…..

The next criticality may be far more serious. If you look at a three-dimensional topographical map, you will see that greater Tokyo virtually touches Fukushima. But no one is immune. The jet stream will transport airborne contamination to the United States and other parts of the world. In 2005, the US National Academy of Sciences reported that there were no safe dosages of strontium-90, caesium 134/137, nano-plutonium or other long-lived radioactive isotopes, and the risks to human health increase cumulatively with continuing exposure.

Some Russian scientists estimate that 985,000 people died, mainly of cancer, as a result of the Chernobyl accident. Fukushima may be far more dangerous because the risks are continuing, and the situation is dynamically degrading and unstable. Moreover, unlike Three Mile Island or even Chernobyl, the formidable problems of access to reactors one to three make accurate assessment of the true extent of the damage, hence the level of risk and vulnerability, extremely challenging.

http://www.scmp.com/comment/article/1464566/abe-must-act-now-seal-fukushima-reactors-its-too-late?login=1

#91 earthboundmisfit on 04.04.14 at 10:45 pm

#72 SCUMOP —eloquently put, and Garth can certainly stir it up!

#92 Jon B on 04.04.14 at 10:59 pm

This bank ad demonstrates why we have the 1% and the 99% economic groupings in this country. There are just to many suckers out there and the banks know they make excellent long term debt slaves.
It’s also interesting to think that we live in the information age yet so many lack it.

#93 Retired WI Boomer on 04.04.14 at 11:19 pm

This is a joke, right? ……

I watched the trailer…unbelievable!! RBC is a BANK, so
WHAT are they “selling” with this AD? Is it real-estate?
Maybe it is the “need” to buy a house because the next generation is in the oven? Goodness knows, many people were raised in rental houses, or apartments in my generation. Some even grew up to be useful members of society, and rented their own places, some even bought a home when the time was right for them.

If you are tempted to buy a home based on an AD that suggests you “need” to buy a home, you are NOT ready.

At first, I really thought this was a joke. Maybe it indeed is one, but if you believe any part of it, the joke is upon you!

#94 SilverMeridian on 04.04.14 at 11:19 pm

SilverMeridian Greater Ottawa surReal Estate Update

http://www2.ottawarealestate.org/home/NewsInformation/LatestNewsRelease.aspx

“Ottawa, April 4, 2014 – Members of the Ottawa Real Estate Board sold 1,126 residential properties in March through the Board’s Multiple Listing Service® system, compared with 1,160 in March 2013, a decrease of 2.9 per cent”. For the record, last year OREB posted the following update: “Members of the Ottawa Real Estate Board sold 1,167 residential properties in March through the Board’s Multiple Listing Service® system, compared with 1,388 in March 2012, a decrease of 15.9 per cent”. Here is the bottom line; seven properties are missing in action, no surprise here, and we are seeing almost 20% activity decrease in comparison with March 2012. To Ottawa Real Estate Board that apparently means that “The spring home-buying season is coming into bloom”. Now, watch what Randy Oickle is doing in order to conceal this disaster – he is comparing March with February of the same year, and claims that “it is to be expected of a spring market.”:

“Sales picked up month over month, with 256 more properties switching hands in March than in February,” says Randy Oickle, President of the Ottawa Real Estate Board. “That’s a 29.7 per cent increase, which is to be expected of a spring market.” Of course sales in March are going to be higher than in February, they always have been and always will be, those are seasonal fluctuations! In order to have meaningful comparison, this year’s numbers have to be compared with the same month previous year’s.

Not only that, but whoever wrote this so-called “News Release” apparently it trying to convince us that the spring is finally here and Ottawa is blooming, literally and in the Real Estate sense. TAKE A LOOK IN THE WINDOW PEOPLE! Are you even in Ottawa? All I see from my window is piles of dirty snow, maze of potholes on the roads and rows of stale listings!

CREA didn’t update it’s March numbers yet, but from what I hear on the The Real Estate & Mortgage show on the radio, active inventory has already reached 8 000 active listings, 30% of which are leftovers from the last year. According to the host of the same show, only 3 out of every 10 houses are selling, the rest is just collecting dust on the way to a 10 000 active inventory record projected to be here by summer and “Ottawa’s sellers have they heads in the clouds”.

I’ll post an update on the rest of the numbers as soon as they become available.

#95 Happy Camper on 04.04.14 at 11:19 pm

Great Video….I got my mortgage at RBC…..made a lot of money on RBC stock as well. Banks don’t get any more solid than this.

#96 Fox trot on 04.04.14 at 11:24 pm

That clip made me laugh out loud, thanks Garth. Agree, quite sad when the banks weigh in on the emotional consequences of not buying a house

#97 Linda Mulligan on 04.04.14 at 11:25 pm

I have a difficult time believing that media savvy Canadians are sucking up to this turkey of an ad. Though it is true that pregnant females of all species have a very powerful ‘nesting’ instinct. However, females also have a very powerful protective instinct & frankly this ad should trigger that flight response to a threat to themselves & by extension, their young. As in, how can I protect/feed baby if I’m broke? kind of threat.
On another note, saw yet another article on possible deflation in the Eurozone along with a ‘financial facelift’ article in the Financial Post. Couple in Alberta bought a rental condo in B.C. – they have been losing money hand over fist, in part because their costs are $1,195 for the rental but they are charging only $650 for a net loss of $545 per month!!! Plus, the condo dropped in value by an estimated $70,000 since they bought it. Estimated net loss to date is some $100,000. The solutions offered include working to at least age 70 & selling the condo (if anyone will buy it) to if nothing else stop the monthly rental ‘subsidy’ loss. They do suggest raising the rent to cover the cost, but more than likely that would cause the tenant to leave, always supposing B.C. law would permit such a dramatic rental increase in the first place.

#98 Cici on 04.04.14 at 11:30 pm

The video does suck, but l love the irony in the fact that they took the two most annoying people on the planet to represent the most annoying Canadian demographic.

This just has to fall into the “tragicomedy” genre.

#99 Fer reel, RBC? on 04.04.14 at 11:34 pm

RBC… is this the bank that got tax breaks from the feds last year while laying off Canadian IT workers to be replaced permanently with indian “contractors” working from overseas (brought in on TFW visas to learn how to do the job because apparently training new employees is only a problem if they’re Canadian)?

Looks like a new low for them.

Been on these interwebs for a long long time. Never, ever, EVER have I seen anything invoke Poe’s Law like this video. Never.

RBC, are you fer reel?

#100 Cici on 04.04.14 at 11:35 pm

Oh, and we should force RBC to make a sequel when rates go up, Jenny’s on mat leave, Chris loses his job and they can’t make the monthly.

#101 Cathy Pants on 04.04.14 at 11:39 pm

It’s ironic that these trailers came out the same week that several Canadian pension funds have announced surpluses after years of short falls. I guess they’re too busy celebrating to take their ownership responsibilities seriously.

#102 jan on 04.04.14 at 11:47 pm

#15 East Van on 04.04.14 at 6:48 pm
As we saw in the 2007 /2008 Great Financial Crisis the .1% will risk anything for short term profit – even if, in the long term, it takes the whole system down. This is modern casino capitalism. To expect better of the nice friendly Canadian banks is foolish. The CEOs here will risk all in pursuit of their multimillion dollar bonuses just like the guys on Wall Street did.

Me – Amen brother

#103 Paully on 04.04.14 at 11:50 pm

That video just gave me the dry heaves!

Please, make it stop!

#104 Yyc renter on 04.04.14 at 11:50 pm

The best part is that the wife is going on a reduced income for her maternity leave while hubby has to pick up those heavy payments! Don’t worry I’m sure their bidding war pre approval included both full incomes so they can “afford” it. This add made me SICK.

#105 six_figure_renter on 04.04.14 at 11:56 pm

And they say are banks are different up here compared to the States. YEAH RIGHT!!!
There even more hungry to get virgins and hipsters in $600000 shoe boxes in the sky.

#106 Joe on 04.05.14 at 12:03 am

Most banks will claw and scratch their way into the consumers wallet.
Just look at how the derivatives debauchaul down south is unwinding… oh yea shadow stats indicate that they are also massaging figures still.
It will unravel one day.

#107 jan on 04.05.14 at 12:08 am

Check out 50 fifty best places in the world to visit.
Vancouver or Toronto isn’t even in there.
So much for the best place on earth bullshit our media an RE cartel have proclaimed.
The only place in Canada is Niagara Falls but it doesn’t even say Canada, instead is says, Niagara Fall Canada/USA.
OMG
When is our government going to groe sone balls and regulate these prostitutes.

#108 Phoenix on 04.05.14 at 12:16 am

I think the point of the add is to try to show that RBC’s slogan which is “advice you can bank on” can assist in taking the “drama” out of the mortgage decision for the couple. I think your blog has a great message but this video is so over the top how could anyone take it as seriously as is being suggested. The video is funny. Maybe everyone needs to lighten up.

#109 Fed-up on 04.05.14 at 12:36 am

“Properties are purposefully priced below market.”

—————————————————————————–

That’s funny, I think the asking prices are insane to begin with. But that’s the market right?

#71 James on 04.04.14 at 9:46 pm

This causes major issues at a macro level, where new ventures in Canada cannot obtain financing. That in turn impacts productivity, competitiveness, and jobs.

Your coddled banking sector is one of the reasons that Canada has a non-diversified economy.

———————————————————————

Right on James. Our banks are real financial geniuses as they hand out impossible mortgages with no risk and and service charge everyone to death. They collude, don’t compete with another and are protected from any real competition.

It’s like shooting fish in a barrel really.

#110 KommyKim on 04.05.14 at 12:40 am

RE: #73 Spectacle on 04.04.14 at 9:54 pm
While on there you tubing , try out ” Rose Koire and her Behind the Green Mask ” book/video

A quote from Wiki about Agenda 21:

The United States is a signatory country to Agenda 21, but because Agenda 21 is a legally non-binding statement of intent and not a treaty, the United States Senate was not required to hold a formal debate or vote on it. It is therefore not considered to be law under Article Six of the United States Constitution. President George Bush was one of the 178 heads of government who signed the final text of the agreement at the Earth Summit in 1992,……

#111 ydnew on 04.05.14 at 1:01 am

SInce it is silly season, according to this article from the UK, HAM has followed Mark Carney to the UK:

Chinese buyers fuelling UK housing shortage: Far East speculators price Britons out of market across the country

The Chinese owners of the Ram Brewery, Wandsworth, have openly admitted they are targeting foreign buyers. House of Fraser was recently sold to a Chinese buyer.

Full Story:
http://www.dailymail.co.uk/news/article-2597354/Chinese-fuel-UK-housing-shortage-Far-East-speculators-price-Britons-market-country.html

:-)

#112 Mr. Roboto on 04.05.14 at 1:18 am

Very similar to http://youtu.be/20n-cD8ERgs

#113 Questions on 04.05.14 at 1:38 am

A topic that will arise when the dust settles is who gained and who lost.

Let’s take a moderate outlook for Canada’s major cities as a -15% correction over a few years. Ok, I’ll give you housing bears a 20-25% schadenfreude event…

In the past decade, banks, media, realtors, and the government has bullied a good chunk of financially miseducated people into a risky, unbalanced and highly leveraged investment.

Consider the possibility that financially educated people who saw this for what it was ended up avoiding a pretty big party “for dummies”. And so much of this leveraged risk spread throughout the FIRE sector. A significant wealth spread to some regular people.

It took a few boom/bust cycles, but here we are, a new economic math… don’t go too far back in time to make sense of things.

Smarts, don’t it?

#114 The Financial Hub on 04.05.14 at 1:45 am

Great article by Rob Carrick in buying a home or renting and investing the difference

http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/renters-make-for-wealthier-investors/article17834799/?cmpid=rss1

#115 S on 04.05.14 at 1:51 am

You do good work here. Don’t ever stop until this idiocy stops.

#116 Tony on 04.05.14 at 2:27 am

Why would anyone take out a mortgage at RBC when mortgages can be had for a lot less elsewhere? Of course in the end many will lose *their* house anyway but there’s a slim chance real estate could flat line for the next 25 years or so instead of plunging.

#117 wallflower on 04.05.14 at 2:32 am

#64 Vancouver RE agent on 04.04.14 at 9:24 pm
I read your post. Garth approved it but he may not approve mine.
Grade: moronic.
Suggestion: rewrite with a humour bias. It has the potential to be fun to read.

#118 Turtle on 04.05.14 at 3:00 am

I think we have less school/preschool kids now than in previous years. Why do you need a house (bigger house) if you are not gonna have any kids in it?

If government decides to keep this party going, than we will have more and more young people in debt without any hope to break free and have kids.

It is either mortgage prison or freedom with kids.
What is your choice?

WAKE UP people! Don’t sign those papers, go make a baby instead.

#119 RBC Films Present: "The Mortgage from Outer Space" on 04.05.14 at 3:27 am

“Honey, the mobile mortgage rep from CIBC called, he said we should go in ‘conditional on financing’”

“Conditional on financing?!! Conditional on financing?!!! (picks up a saucer and smashes it on the floor)

“Did you tell him there are 37 registered offers???!!!”

“Of course honey”

“But there is some good news, I stopped in at the RBC mortgage kiosk in the food court, the mortgage rep said they have a new program called “Let’s Go Firm”, they’ve partnered up with Holmes on Holmes Home Inspections and Mutual of Omaha and now everyone can go in firm”

(Voice Over)

That’s right “Let’s Go Firm”, Hi my name is Thornton Melon III, the new VP of mortgages at RBC, and we’ve erected a new program for first time buyers in competitive situations. Our partners include Holmes on Holmes DIY virtual inspections, and Mutual of Omaha’s new Million Dollar deductible policy.
“But what about CMHC?” you may ask, well, together with our banking partners in The Peoples Republic of China that’s no longer necessary.

(Later that day)

“Honey we got the house for only $150,000. over asking!!!”

My name is Thornton Melon III: “If you’ll sign anything, so will we”

The End

(By Dr.Wu)

#120 johnny d on 04.05.14 at 3:37 am

#52 Vlad on 04.04.14 at 8:26 pm
I think the writing is on the wall. The truth is dawning on people. If you don’t buy now you will probably be priced out of the market forever. OK there might be a small dip in prices some time soon. But when inflation finally kicks in from all the FED money printing, house prices are going to head to the moon. I remember in the early 1970′s when my wife and I were hemming and hawing over buying a single family house in Etobcoke in in the $30,000 range. Thank God we bought it and now those houses are approaching a million. Ten years from now average house prices could be $10 million. Buy now before it’s too late. (No I not a RE agent)

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

Yeah you’re just an idiot. With wages stagnant and interest rates pretty much as low as they’ll go, what do you figure will drive prices to $10,000,000 average haha… Also, when everyone is ‘priced out forever’ who will buy then? And what will happen to the builders, lenders, real estate agents??? Seriously take a second to think about the ‘priced out forever’ doomsday scenario that you and others like you try to peddle.

You RE doomers are the worst. And yes I’m calling people who say prices will rise forever doomers because that is a true doomsday situation. General price inflation from zero interest rates would drive up prices and make basic necessities like food too expensive. Taxes would be unreal and services such as police, fire, and healthcare would crumble. The same policies to drive housing to 10 mill average would have such horrible implications on the whole of society, no one would benefit.

#121 Jane24 on 04.05.14 at 3:38 am

To comment number 18

I live in Italy for part of each year way down in the south which is officially a band A for the EU, which means in great economic need. Let me tell you that in Italy there is more than one economy. We have the official white one, the grey one (partly declared) and the black one ( very popular).

According to Italian govt and EU stats my part of Italy has 80% unemployment but everyone I know has a job plus an under-the-table one too. Mayor is currently trying to establish who exactly lives in the town for his tax base. Literally knocking on doors to see if anyone lives in the house.

No-one has a mortgage because when they get married a family home that is empty is passed down to them for life. So they have massive disposable income even with one salary as most women with children don’t work in my part of Italy. It gets spent on clothes, trips and cars.
It is a lovely lifestyle although officially they are living in dire poverty and so receive massive EU hand-outs.

They are masters of the game and I love them all.

So in Italy’s case you have to dig very deep to get the real facts.

#122 Buy? Curious? on 04.05.14 at 5:49 am

Any price decline in housing will only happen in the subburbs, and nobody cares about them anyways. All major cities are expecting population booms as result of immigration and small town brain-drains.Where are they going to live? Good thing I bought my house now so that I will eventually rent it out and and collect the income from Costa Rica.

https://www.youtube.com/watch?v=fqY2BlgLTdQ

#123 Martha on 04.05.14 at 7:30 am

I rent… a lovely 3 bedroom above ground basement apartment with 3 foot by 3 foot windows for $1000/month inclusive. I moved here in July of last year. Just me and my cat.

So far the landlord has put a new roof on the house, and has used his front end loader to clear snow from my driveway and sidewalks.

Yesterday the gas heating broke…or rather completely died. Turns out it is about 17 years old…so, without further ado, he ordered another one right in front of me. $4000.00 just like that. Didn’t even blink. It will be here on Monday. Meanwhile he has provided me and my upstairs neighbor with space heaters… The heating company is coming in today to clean all of the duct work too… :-)

I am so glad I rent!

#124 maxx on 04.05.14 at 8:18 am

#8 Freedom First on 04.04.14 at 6:36 pm

This is no longer about playing the sheeple, it’s more like lambs to the slaughter.

Many no longer seem to possess their own their minds and end up capitulating to the barrage of stealth marketing.

The program is to get as many past the gate and watch the obscene and growing profits in a few years time.

This officially-sanctioned and unquestionably predatory brainwashing will be allowed to continue so long as banks remain the darlings of government. They seem to have a checkered flag to do whatever the hell they please.

This idiocy creates potentially permanent, long-term damage to the economy.

#125 Holy Crap Wheres The Tylenol on 04.05.14 at 8:20 am

After wasting my time watching the video I couldn’t believe RBC would drop that low to create such crap. Wow I guess the marketing people have run out of clever marketing techniques. What a load of turkey shit was that all about in the video with the couple that has it all! Yes except their god dam brains. Now mayby if they bring in some talent and have explosions, muscle car races, and guns, yes lots of guns, I could watch it again. Then again NOPE!

#126 lurker on 04.05.14 at 8:24 am

For those who don’t know, in Australia homes are sold by auction where you see what others are offering, then the winner gets a cooling off period to change their mind.

It makes for a much more rational market.

#127 FEAR on 04.05.14 at 8:25 am

Shape of things to come . . . Soon

1.Condo price drop vaporizes couple’s life savings

http://business.financialpost.com/2014/04/04/condo-price-drop-vaporizes-couples-life-savings/

#128 George on 04.05.14 at 9:08 am

I wouldn’t be surprised if the average price of a home in vancouver went to $10 million. Its already at about $1million and there are lots of home in the $2 to $3 million range. It was not so long ago that the average was $100k so we’ve already had a ten fold increase and I wouldn’t be surprised to see it happen again. It won’t be due to locals. Wealthy foreign investors coukd drive prices up to $10 million and it would still be affordable for them.

#129 Nick on 04.05.14 at 9:08 am

MLS®: 2069124

MLS®: N2864236

Building Type : House
Bedrooms : 4
Storeys : 2
Land Size : 56.00×101.00 FT
Bathrooms : 4
Community Name : Nobleton
Title : Freehold
Location : 20 WEST COAST TR
King, ON L7B 0A3

For sale twice

#130 Stickler on 04.05.14 at 9:28 am

WAIT!….a scumbag marketing team trying to convince people they need something they don’t, to make money!?!?!

Stop the presses! What a shocker!

#131 Steve on 04.05.14 at 9:28 am

Martha #123

Exactly! Rent the house, rent a boat for a day, rent skis, rent a hotel room, rent everything rentable and let the grand owner of all this stuff deal with the brutal facts of entropy. Everything man has built is in a panic to return back to dust. Mold eats the roof, rust eats the car, termites eat the joists, moths eat your clothes. It’s all just like mist blowing across dry ground. It appears then fades away forever. Therefore freedom from being owned by things is of the highest value. It frees up your mind for art, and love, and your precious family. Those things are also transient and follow the same tragic arc as material goods. What would you rather have spent your finite life upon once death arrives? Will we say “I wish I had spent more time at work!” Will you regret or admire your course? This sick system we all live in is dedicated to twisting our minds. It is a machine that violently refocuses our energies every day on trivial insipid pursuits. The less exposure to so called responsibility we can have as adults, the closer you can live to that golden unencumbered state of childhood. My dear wife has nothing, it’s quite remarkable. I was sitting in our bedroom one day thinking about the future and the fragility of life and I noticed something. My
Wife owns nothing. Her possessions are some plastic earrings, her wedding ring, her clothes, her glasses, and her baby blanket so worn it’s practically gone. That is her prized possession. A scrap of cloth. I truly admire her and I feel there is such a powerful lesson there for me .

#132 T.O. Bubble Boy on 04.05.14 at 9:28 am

I finally watched that “trailer”… I would guess that the movie ends with the expectant couple moving to Milton and buying a pressed-cornflake house near the highway?

#133 Daisy Mae on 04.05.14 at 9:35 am

#41 Skeptic: “….and didn’t wreck a thing but she is screwing me on the damage deposit because she can’t afford to pay me back.”

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

This is pretty much standard procedure. Landlords withhold damage deposits just ’cause they can. Don’t expect a fair deal.

#134 Doug in London on 04.05.14 at 9:54 am

Okay, I confess. I’ve made some dumb financial mistakes in the past, like buying into a Japanese equity fund in the early 1990s thinking I was getting a bargain, or buying into science and technology funds in 2001 and 2002 thinking they were on sale at the time. It took anywhere from 12 to 20 years to just break even, which means I really lost money on those investments. I’ve also bought stocks that dropped significantly in value. I got to wear the dunce cap many times for those bad investments. However, the foolishness of those investments (and resultant potential for losses) is minor compared to those poor suckers buying an overpriced house (with a big mortgage) in today’s environment like we saw in the video.

#135 Marc in Montréal on 04.05.14 at 10:25 am

“Spending requires more insight than earning.”

– Friedrich Nietzsche

Loose translation from: “…c’est qu’il faut plus de génie pour dépenser son argent que pour acquérir !, La gaya scienza (1882)

#136 Tony on 04.05.14 at 10:30 am

Re: #120 johnny d on 04.05.14 at 3:37 am

Vlad is clueless just like the people who purchase homes today. It’s a fair bet homes in ten years’ time will be worth far less than they’re worth today.

#137 airhead princess on 04.05.14 at 10:56 am

Just took a slight drop in price to wipe out this couples life savings……the writing is on the wall for flippers, zero downsters and the 5 %ers.

http://business.financialpost.com/2014/04/04/condo-price-drop-vaporizes-couples-life-savings/

Talk about a disaster waiting in the wings. While the EU zone worries about deflation Canada is a few percent away from an out right deflationary death spiral…..given that such a large percent of homes in Canada have been purchased by people with marginal skin in the game. A 5% drop would wipe out the equity of millions.

I am quite convinced that the RE Board stats are colluded with by TPTB so that panic doesn’t set in. The knowledge that thousands slip below the line every month would be enough to collapse the market. The RE market is a pyramid scheme that our government is so invested in that it must keep playing and drawing in more suckers.

#138 Nemesis on 04.05.14 at 10:56 am

#It’sNotJustAHouse-It’sAGoatFarm! #PaganRampageContinues #BrandedContent

Well! I wonder what Joe Friday would say?

http://youtu.be/ToSWnkNQzwo

[NoteToGT: “If I cry, will it help?” Well, once in a rare while, when truly warranted – it can be cathartic… but you don’t want to overdo it… Life’s too short for that. NoteToRalph: “Alan Smithee” That’s impressive! BackAtYa: http://en.wikipedia.org/wiki/Dalton_Trumbo#Later_life ]

#139 Infused with Opiates on 04.05.14 at 10:58 am

108 Phoenix – I found it all pretty tongue-in-cheek. Watch the “horror” version for a good chuckle. Great marketing scheme.

#140 Chris on 04.05.14 at 11:03 am

Garth, seriously, you can’t believe that video is a hot piece of marketing. It’s awful. I’m sure it’s being mocked everywhere in the ad community. It’s a waste of a $mil in production. That said, the strategy behind it is still despicable.

#141 airhead princess on 04.05.14 at 11:18 am

A commenty worth reading.

http://business.financialpost.com/2014/04/04/ed-clark-says-canada-is-losing-export-edge-due-to-inert-small-businesses/

So true…..in Canada business has been so maligned by the socialist elite that it is generally thought that being a civil servant is more profitable than individual effort. The Liberal Party decimated industry in favour of sustainable development……now get ready for 100% taxation to pay for the overburden of public service largesse.

#142 AfterTheHouseSold on 04.05.14 at 11:20 am

#131 Steve
“Everything man has built is in a panic to return back to dust”.

Powerful. Thank you.

#143 Alex n Calgary on 04.05.14 at 11:51 am

Love it! totally supposed to look like downtown toronto people to me! You know sales are down when….

#144 Nemesis on 04.05.14 at 12:05 pm

#TroubleInParadise #VancouverConfidential

SidHudgens: “Life is good in Vancouver. It’s paradise on earth. Hahaha… That’s what they tell you anyway. Because they’re sellin’ an image. They’re sellin’ it through movies… radio… television. In the hit show BadgeOfHonour the VancouverCops walk on water as they keep the city clean of crooks. Yep. You’d think this place was the Garden of Eden… but’s there’s trouble in paradise…”

http://youtu.be/_hAtZLZ7rWQ

[Tyee] – The Olympic Village Developer Is Bankrupt

…”SEFC Properties Inc., the Vancouver Olympic Village developer, is bankrupt.

The company, through receiver Ernst & Young, filed March 12 for bankruptcy. An order by B.C. Supreme Court Justice Robert Sewell on April 2 set the first meeting of creditors to happen no later than June 15 and permitted E&Y to also act as the bankruptcy trustee.

At that time, creditors are expected to press SEFC Properties to negotiate a settlement…

E&Y told the court that 1,062 of the 1,108 units were sold or rented. The report does not say how many are in use. As of Feb. 28, E&Y had distributed $403 million to city hall and held $8 million cash, but 46 units remained unsold.

“While the pace of sales has remained steady, 32 of the remaining 46 for sale units have appraised values of greater than $1 million,” said the report to the court. “Accordingly, the receiver anticipates a slower absorption for the remaining for sale units.”…

http://www.thetyee.ca/News/2014/04/05/Olympic-Village-Developer-Bankrupt/

[CBC] – Police officers busted for cocaine, hiring prostitute, drunk driving: 4 B.C. officers fired, 51 reprimanded in 2013 following complaints to police watchdog

http://www.cbc.ca/news/canada/british-columbia/police-officers-busted-for-cocaine-hiring-prostitute-drunk-driving-1.2598625

#145 Drill Baby Drill on 04.05.14 at 12:08 pm

Dear pathetic blog; it seems HAM is alive and well in the UK.
“Chinese buyers fuelling UK housing shortage: Far East speculators price Britons out of market across the country”

Read more: http://www.dailymail.co.uk/news/article-2597354/Chinese-fuel-UK-housing-shortage-Far-East-speculators-price-Britons-market-country.html#ixzz2y1pjZrHM

#146 Ray Skunk on 04.05.14 at 12:08 pm

#50 Saltpony – loved your contribution, great post.

Blogdogs can post stats, figures and reports… they’re good, but there’s still nothing more enjoyable than an anecdotal tale from the front lines.

Here’s my contribution…

Out for wing night last week with the delightful Mrs. Skunk and her two early 30-something chums.

The first friend will not stop going on about buying a condo in a certain building (which is nothing special, fwiw). She has $60k saved and makes ~$60k a year. She is currently single, living with her parents, paying no rent. She is obsessed with this dream, nothing else matters, period. I’ve pleaded with her, I’ve sent her links to this site, I’ve even sat down with pen and paper and run through the numbers – she’s adamant. I tell her that she’s likely to shack up with someone in the next few years… “oh, in that case I’ll rent it out for profit”. The Brad Lamb cancer has well and truly taken hold with this one. She’s insistent that she’ll clear at least 5% appreciation a year. The kicker? She’s a CMA and is the financial controller of a small company! Staggering.

The next friend is a fiscal parasite. She lives with her boyfriend in a condo, and has only just started (begrudgingly) paying some rent to him. She sacrifices anything and everything in the chase for RE. She rarely gets invited out because she is tighter than a duck’s arse; she was with us only because she is resident across the street from our wing joint. She is the type that will have a few drinks on a split bill, see her share at $30 and bail early leaving exactly $30 on the table, cheerfully ignoring taxes and tip.

She stole one of my wings, asking if she could have it as it was being lifted to her mouth (having not ordered any food or drinks for herself), and followed up with her big reveal. Eight years of scrimping, saving and becoming the outcast of this social group due to her miserly ways had garnered $100k earmarked for a downpayment. That’s great, but that’s also her prime twenties spent rarely going out, hardly any travel, eating food out of cans with yellow labels. I asked her about her TFSA, RRSP, what vehicles she has for accelerating the growth of her deposit. Oh no, it’s just in a 1.2% “high interest” savings account. She doesn’t need a TFSA or RRSP, her dream house will have it all covered.

The conversation turned to Mr. and Mrs. Skunk. Are we looking to buy? A firm no came from my buffalo-soiled lips. “Oh, I’m sorry” said the $100k billionaire, embarrassed that she would boast of her fortune in front of those less fortunate. “It’s ok, I just don’t feel the time is right” reply I. “But if you don’t buy in the next few months, you’ll be renting forever”. I gingerly smiled and nodded, playing into this pauper picture she has of us painted in her head.

The bill comes. I pick it up for all four of us. Condo girl is appreciative and grateful. Billionaire is secretly seething, she could have ordered food after all!

#147 Just some puzzled guy on 04.05.14 at 12:17 pm

I would be interested to see the calculations that the bank does to figure out how to balance off the likelihood of losses from foreclosures versus the increased monthly payments (and thus greater bank profitability) forced upon the indebted (read: cursed) by rising interest rates. And I imagine there would be part of the calculation that looked at the long term profitability as people have to extend terms because what they had first bought into as a payment schedule now forces them to take on longer and more expensive amortization schedules.

I think that these calculations are probably part of the same branch of calculations that are used to weigh the risk of lawsuits (and awarded damages) for injuries suffered from faulty car components versus the savings of shaving off a few cents times millions of cars sold.

In both cases, there must be some sort of “acceptable” amount of casualties. This is disgusting to say the least.

And clearly, with such longer payment schedules, and the deprivation that a large group of people must suffer, I wonder if the government gets into the act to calculate the long term mental and physical health costs and, conversely, the shorter periods of time that CPP, OAS, and GIS have to be paid out.

#148 Nemesis on 04.05.14 at 12:18 pm

Addendum:

[CBC] – Rob Ford’s alleged after-hours drinking prompts citations for B.C. pub

http://www.cbc.ca/news/canada/toronto/rob-ford-s-alleged-after-hours-drinking-prompts-citations-for-b-c-pub-1.2599193

#149 maxx on 04.05.14 at 12:34 pm

For what it’s worth:

“There is no sphere of human thought in which it is easier to show superficial cleverness and the appearance of superior wisdom than in discussing questions of currency and exchange.”

-Sir Winston Churchill

In this age of “information”, for instance, this little gem brought to you by RBC, it becomes ever more important to put effort into honing great skills of arms-length triage and skepticism.

#150 Porsche on 04.05.14 at 12:57 pm

#84
Two offers on the 1,700 sqft bungalow in Edmonton asking $499,000
……………………………………………………………………..

Now bid $505,200… with no subject too’s.

This is Edmonhole

#151 Biff on 04.05.14 at 1:05 pm

Re. Video
I remember coming home on the GO train some months ago and sitting across from me was a young couple. He was dressed like he was trying a bit too hard to get ahead at work and looked uncomfortable in a tie., She was dressed to impress and had perfect hair and makeup. Well the poor guy just wanted to catch some sleep I suppose, but she’s busy thumbing through one of those free condo magazines. And every 5 or 10 minutes she’s kicking his leg to wake him up. “Look at this one…”, “this one’s nice…”, “look, this one comes with FREE Sub Zero appliances”. It was all I could do to not whisper in his early ‘run like hell’. I still Kind of regret it.

#152 Smoking Man on 04.05.14 at 1:06 pm

#118 Turtle on 04.05.14 at 3:00 am

You speak of freedom, Freedom. An interesting concept.

No one is free, we are trapped in our own programming…

Freedom is by definition having no opinion or bias.. A state of mind.

It can be found outside the boundaries of the alphabet, if your world is between A-Z

You’re not free……

Man am I hungover… That video was hallarous… Brought to you by the schooled…

#153 Nemesis on 04.05.14 at 1:07 pm

#ComicRelief #من السهل رايدرز

[AlJazeera] – In Pictures: Libya’s ‘Easy Riders’

…”Fakhri Al-Hassi used to ride his bike in the streets of Benghazi during Gadaffi’s rule, but was often arrested and harassed by the police for wearing leather clothes and badges which they said promoted imperialist ideas.”…

http://www.aljazeera.com/indepth/inpictures/2014/03/pictures-libya-easy-riders-2014331115011969202.html

#154 Shawn on 04.05.14 at 1:21 pm

The Bank Made Me Do It?

4 am Sunrise at 75…
Thank you, at least a few of us realize we are responsible for our own decisions and we don’t HAVE to be victims.

Financially speaking, life is a like most games, a few will be HUGE winners, many will do okay and many will fail. As in most games it does not pay to blame the rules, the referees or the opposition. It pays to get on with it and hone our skills and learn from (and copy from) the best and make smart decisions in our own lives.

To get rich, do as the rich do.

#155 Nemesis on 04.05.14 at 1:22 pm

#ProfilesInCourage #SpoilerAlert-TearJerker

@Steve/#131…

This is for you…

[LAT] – Short on money, Palmdale teen crafts a soda can prom dress

…”Often there is not enough money for food. There is never enough for new clothes. Usually Brie finds what she can at the local Goodwill, but the prom dresses there are too big and too froufrou.

So back in September, with the dance a distant dot on a calendar, she decided to make one of her own — out of soda-can tabs, for free.

Prom is Friday. The dress is not finished. The tabs, meanwhile, have taken their toll: Brie and her mother both have Band-Aid fingers…

…Other girls in Brie’s class will have gone to the mall to pick their dresses. Some will ride in limos from their homes to the school, where a bus will take them all to the prom.

Brie will have no special chariot, no pocket money to burn.

But she’ll be a proud Cinderella in soda tabs, with her soda-tab prince by her side.”…

http://www.latimes.com/local/la-me-soda-tab-prom-dress-20140406,0,4400246,full.story

#156 T.O. Bubble Boy on 04.05.14 at 1:32 pm

I wonder if CMHC would cover this…

2 semi-detached houses, being sold “together” for someone to tear down and build a single McMansion on a 40ft+ lot:

#1 = $899k
http://www.realtor.ca/propertyDetails.aspx?propertyId=14231947&PidKey=-356882792

#2 = $949k
http://www.realtor.ca/propertyDetails.aspx?propertyId=14232766&PidKey=116387236

Both are under the magic CMHC cap of $1M… anyone know if they would actually insure this?

(although, I would seriously hope that someone isn’t buying $1.85M of land with less than 20% down)

#157 Victor V on 04.05.14 at 1:38 pm

http://www.thestar.com/news/gta/2014/04/05/golnaz_vakili_lawyer_in_hiding_accused_of_stealing_millions_swears_shes_innocent.html#

Golnaz Vakili’s decision to run, with $5,000 in cash and a bag stuffed with yoga pants and purses, came seemingly without warning one night last year.

The 33-year-old Toronto lawyer left handwritten notes for her loved ones, confessing she was stressed to the breaking point but offering few clues as to why she abandoned her practice, her husband, and her family.

“I’m so sorry to leave in this manner, so suddenly and without a goodbye, but I could not stay a minute longer without completely breaking down,” Vakili wrote in a letter left for her parents last March.

“I am facing obstacles and challenges in which I am completely out of my element and outside my area of knowledge in the field. I am getting crushed under the strain and I am worried about the impact this is going to have on my family.”

Vakili’s husband found the letter on their kitchen table the night she left. It went on to say she would be safe in Europe.

Within a month of her abrupt departure, Vakili would be named in a massive civil suit alleging she was a central figure in a sophisticated mortgage scheme investors believe could be worth as much as $17 million. The courts froze her accounts and the law society suspended her licence. Then Toronto police charged her with fraud in absentia and issued a warrant for her arrest.

#158 Darklan on 04.05.14 at 1:40 pm

Went into high end store near Bay and Bloor in Toronto, overheard to two staff people talking (store is empty). She tells wistfully how a friend got a job as a waiter a month ago in a posh restaurant…. And bought a condo right after 1 math of work.
She is thinking of changing jobs…
…..
I always took stories posted here with grain of salt, no more.

#159 T.O. Bubble Boy on 04.05.14 at 2:13 pm

After reading Michael Lewis’ new book “Flash Boys”, I was trying to figure out why Mr. Moneyball decided to pick Brad Katsuyama and his new IEX stock exchange as the central figure in his book.

Then I checked out the IEX website, and noticed Jim Clark (former CEO of Silicon Graphics, NetScape, and WebMD — and the key figure in Lewis’ “The New New Thing” book) is on the board of directors.

Maybe Billy Beane (Moneyball) and Michael Oher (The Blind Side) will be on IEX’s board next.

#160 Buy? Curious? on 04.05.14 at 2:19 pm

#145 Ray Skunk on 04.05.14 at 12:08 pm

The stupidest story I’ve ever read in my whole gawddamn life!

#161 Smoking Man's Old Man on 04.05.14 at 2:23 pm

The current Canadian Real Estate situation remind me of Holland circa 1637 and it’s tulip mania. Later inspiring the book: “Extraordinary Popular Delusions and the Madness of Crowds”

#162 World According To Garth on 04.05.14 at 2:29 pm

#147 Ralph Cramdown on 04.04.14 at 5:30 pm

Hey, what’s the difference between a government employee with a gold plated pension plan and Martin Armstrong?

The civil servant didn’t do an 11 year bit for running a ponzi scheme… http://www.bloomberg.com/news/2011-09-28/felon-forecaster-blogs-on-8-6-year-economic-cycles-after-11-years-in-jail.html

You just go on believing a fraudster who claims to be a good forecaster but needs to steal money.
———————————————————–

You cherry pickers just blow my mind. Did you get your training in Govt?

Mr Armstrong was railroaded and set up by the US Federal Govt.

You know…..the same guys that:

Allow New York Banks to launder trillions of dollars for drug dealers and terrorists but NEVER go to jail.

Invade foreign countries, kill hundreds of thousands of men, women and babies, destroy the infrastructure and leave depleted uranium everywhere.

Allow dangerous drugs into the public that kill you.

Allow GMO with pesticide build right into the plant for public consumption (and eventually kill you).

Allow Aspertame that melts your brain into foods.

The list goes on for pages…..

Your right…..there is no way the US Federal Govt would EVER do anything to Mr Armstrong. A man whose information is undermining every CORRUPT AND GREEDY GOVT in the world. Why on earth would they want to set up a man like that? That’s just crazy…..

EPIC FAIL RALPHY

#163 Shawn on 04.05.14 at 2:37 pm

Are U.S. Stocks Over-Valued Now?

Well maybe…

The S&P 500 index is trading at 18.6 times trailing earnings. That’s higher than its historic average of about 16. But considering interest rates are dramatically lower than average the 18.6 may not be excessive.

And earnings are projected to rise quite dramatically in 2014. Analysts are projecting an increase in earnings on the index of about 20% according to Standard and Poors. That seems wildly optimistic but if true then the S&P 500 index is trading at about 15.7 times 2014 earnings. That would be considered decent value given the low interest rates.

On this basis the S&P 500 index is probably a reasonable investment. No screaming buy to be sure, but not a Sell either.

Extremely low MER ETFs are available…

#164 Dr. Wu on 04.05.14 at 2:44 pm

@#120 johnny d on 04.05.14 at 3:37 am

Just a friendly tip you really don’t deserve: when you try to refute an opponents arguments in a debate with an opening ad hominem like: “Yeah you’re just an idiot.” You have already lost the debate and you’ve let everyone know it.
Vlad’s experience is the Rule for those in the GTA who bough in decent areas- 30k in the early 70s is around one million today. This is a fact: it’s not open for discussion or debate. No amount of typing or gratuitous insults will change the fact that inflation is built into the system.

#165 Chickenlittle on 04.05.14 at 2:56 pm

#132 TO Bubble Boy:

“Cornflake house” is right! We rent a $600k house that doesn’t even have toilet paper holders or towel racks. It’s a new build…the kitchen is a joke…there is no yard.

I can see it now…a couple moves to Milton, pop out a couple of kids…send them to daycare for 11 hours a day while they go to work, gym…pick them up @ 5:55, put them to bed @ 7:30… Livin’ the dream…

OR: mom sends 3 year old to daycare while on mat leave with her youngest bc she can’t handle the two of them. This 2nd one is a very popular option here in Miltopia.

“By now I have come to feel that the fact of being a ‘child’, of being wholly
subservient and dependent, of being seen by older people as a mixture of expensive nuisance, slave and super-pet, does most young people more harm than good”
― John Holt

#166 Shawn on 04.05.14 at 3:29 pm

BIT COIN – Bit-Leibers

Any Bit-Liebers left out there?

I do believe Garth called that one right.

#167 Ronaldo on 04.05.14 at 3:33 pm

#164 Chickenlittle –

”I can see it now…a couple moves to Milton, pop out a couple of kids…send them to daycare for 11 hours a day while they go to work, gym…pick them up @ 5:55, put them to bed @ 7:30… Livin’ the dream…”

That about sums it up alright…..at least from what I’ve observed in my own family. Gone are the days when one salary was adequate and the mother had a choice to go to work or not.

#168 straight six on 04.05.14 at 4:19 pm

re Vancouver the beautiful.. ok.. maybe even 416.

Here’s what one anti-urbanite sent to a local paper about the prospect of a bridge being built from the glorious LML to the ‘ferry ride away’ Sunshine Coast.

We don’t want their crime, their criminals, their traffic, their noise, their pollution, their gangs, their drugs, their homeless, their addicts, their drug-taking young park squatters, their sexual predators, etc.

The ones engaging in bidding wars must disagree, because this what they’re bidding for!

a chance to live the dream in 416 or the LML.
Is there a difference?

#169 Ralph Cramdown on 04.05.14 at 4:28 pm

#163 Dr. Wu — “Vlad’s experience is the Rule for those in the GTA who bough in decent areas- 30k in the early 70s is around one million today. This is a fact: it’s not open for discussion or debate. No amount of typing or gratuitous insults will change the fact that inflation is built into the system.”

But where did that inflation come from? Inflation was already running fairly high in the early ’70, partially as a result of Johnson and then Nixon’s “guns AND butter” approach to financing the Vietnam war (see also Bush, George W.). OPEC jacked up the price of oil, so house prices advanced at a great clip through the ’70s.

The PQ got elected in Quebec, and the head offices of BMO, RBC and Sun Life moved down the 401 to Toronto, cementing it’s ascension to economic capital of Canada. Think that might have increased demand for houses in nice neighbourhoods?

During the ’70s and 80, more and more wives were entering the workforce, so a mortgage that was typically being carried by one paycheque in 1970 was typically carried by 2 by 2000.

And interest rates have been on a general downtrend since Paul Volcker’s Saturday Night Massacre in October 1979.

All those have contributed to the rise of Toronto house prices between 1970 and now.

You can believe that inflation is eventually going to kick in and come to the rescue of the younger members of the bottom 80% — those with large mortgages compared to their net worth. But I suspect governments will be on the side of the old and the rich, and neither of those constituencies want to see any inflation.

#170 devore on 04.05.14 at 4:41 pm

All these stories (and my own experiences as well) of people being misers and sacrificing just about everything in their young lives to buy a postage stamp plot of land somewhere, or a shoe box in the sky, because “it always goes up”, remind me of this quote:

“The darkest hour in any man’s life is when he sits down to plan how to get money without earning it.” Horace Greeley

#171 Chickenlittle on 04.05.14 at 5:38 pm

Ray Skunk:

No joke, people helping themselves to my food without asking is one of my pet peeves…

The Simpsons got it right:

“Principal Skinner: Uh, excuse me, is there an Orange Julius stand on this floor?

Lionel Hutz: I’ll sell you this one, it’s almost full.

Principal Skinner: Well, why don’t I drink out of a toilet bowl. ”

BINGO, Principal Skinner…

#172 LTL_FTC on 04.05.14 at 5:46 pm

Just ate some cold pizza for lunch and have ruined a perfectly good keyboard after watching that vid.

A sick little double-entendre is how it is initially unclear if they’re talking to a grief counsellor about having lost the baby or the deal on the house.

RBC – They’re more morally bankrupt than you think.

#173 Trojan House on 04.05.14 at 5:48 pm

#129 Nick

It is not listed for sale twice, it is listed for sale once but on two real estate boards! If agents live in an area bounded by two boards, they will list on both of them to get more exposure for the home. The reason is people that live in those areas tend to move between them but the board boundaries determine where a house can be listed. Therefore, it makes sense to list them in both boards.

#170 Devore

“The darkest hour in any man’s life is when he sits down to plan how to get money without earning it.” Horace Greeley

Yes, it’s called socialism.

#174 I wonder on 04.05.14 at 5:48 pm

What do you think about this advice?

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/2014/04/05/borrowing-to-invest-there-are-times-when-it-makes-sense-like-now&pubdate=2014-04-05

Leverage is for experienced investors who are not influenced by market volatility. That eliminates most people. — Garth

#175 Old Man on 04.05.14 at 6:11 pm

Some of you need a part-time business to pay the bills and I have gone international selling air conditioners at the market in a small Mexican village with a lady partner. Everything comes from the local Walmart cheap for those that can’t afford a great deal, but our profit margins are high. A small Styrofoam container, a cheap computer fan, a box of ziplock freezer bags, a USB cable, and a converter plug for AC. All assembled sold on special for 200 pesos and sales are brisk.

#176 Trevor on 04.05.14 at 7:02 pm

I find it comical people on this site still think it is simply just a own vs. rent dynamic — what Garth is trying to teach is financial responsibility through diversification by limiting your overall market exposure with any one asset.

on a side note the rent vs. own calculator Garth posted had a couple mistakes. really only one fundamental flaw. You should not be adding the down payment and closing costs to the cost of purchasing a house, they are part of the initial investment. If you do this you must also add the inital investment in stocks to the rental side as a cost.

#177 coastal on 04.05.14 at 7:31 pm

That’s totally disgusting. One more reason to not ever shed a tear for those about to be slaughtered in the coming meltdown. An economy cannot survive on emotion for long, this is the ultimate sign of The End. “Short Canada ” headline with Tal on BNN on Friday has more truth to it than ever.

#178 KommyKim on 04.05.14 at 7:33 pm

RE:#163 Dr. Wu — “Vlad’s experience is the Rule for those in the GTA who bough in decent areas- 30k in the early 70s is around one million today. This is a fact: it’s not open for discussion or debate.

Plug your numbers into this official calculator, and you’ll see the 30K in the 1970 would have “inflated” to about 184K today. Try it yourself:

http://www.bankofcanada.ca/rates/related/inflation-calculator/

Obviously, there is more than just inflation at work here.

#179 Daisy Mae on 04.05.14 at 7:38 pm

#167 Ronaldo: “#164 Chickenlittle – ”I can see it now…a couple moves to Milton, pop out a couple of kids…send them to daycare for 11 hours a day while they go to work, gym…pick them up @ 5:55, put them to bed @ 7:30… Livin’ the dream…”

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

“That about sums it up alright…..at least from what I’ve observed in my own family. Gone are the days when one salary was adequate and the mother had a choice to go to work or not.”

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

The more we earn in wages, the higher our costs will be.
If we can’t afford high prices, there would be no high prices. Can’t get blood from a stone.

However, this has been just great…for the feds. They collect incomes taxes for two, instead of one. Who suffers? Families. We are losing so much. We’re such fools. We just don’t get it.

#180 coastal on 04.05.14 at 7:48 pm

Creep factor sale of the week. The house in this new listing in Victoria just had a murder happen in it barley two weeks ago. Now THAT is bizarre.

http://beta.realtor.ca/propertyDetails.aspx?PropertyId=14228764

http://www.timescolonist.com/news/local/saanich-homicide-case-similar-to-earlier-murder-suicide-1.915154

#181 johnny d on 04.05.14 at 7:48 pm

#164 Dr. Wu on 04.05.14 at 2:44 pm
@#120 johnny d on 04.05.14 at 3:37 am

Just a friendly tip you really don’t deserve: when you try to refute an opponents arguments in a debate with an opening ad hominem like: “Yeah you’re just an idiot.” You have already lost the debate and you’ve let everyone know it.
Vlad’s experience is the Rule for those in the GTA who bough in decent areas- 30k in the early 70s is around one million today. This is a fact: it’s not open for discussion or debate. No amount of typing or gratuitous insults will change the fact that inflation is built into the system.

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

You just made the idiot list too. And I win.

#182 Daisy Mae on 04.05.14 at 7:49 pm

And, by the way, it’s not how MUCH you earn…it’s how you manage the money you earn. People can be so foolish.

#183 AisA on 04.05.14 at 8:32 pm

#164 Dr. Wu on 04.05.14 at 2:44 pm

I came up with $184,000 on the Bank of Canada’s Website.

Did you mean that “emotionally” 30k in 1970 is 1 million today in house lust terms?

#184 sciencemonkey on 04.05.14 at 8:46 pm

This Friday I went down to the US consulate and applied for my passport. I should receive it in a few weeks. Go ahead blog dogs, convince me one way or another whether 50%+ higher salary with lower cost of living is worth moving to an unfamiliar country.

#185 AisA on 04.05.14 at 8:48 pm

ahh. beating a dead horse. sorry. re post #183

#186 Victor V on 04.05.14 at 8:50 pm

http://www.theglobeandmail.com/life/relationships/how-real-estate-is-the-new-religion-of-the-modern-middle-class/article17808244/

I have a joke that I’m going to get cards for my husband and me to hand out at dinner parties. “Hello! Lovely to see/meet you,” they will read. “Please note we are happy to talk about anything tonight except real estate and house prices.”

It’s meant to be funny, but I mean it. Lately I am terrified – not to mention exhausted beyond tedium – by the prospect of anyone broaching either topic. It’s not only that they can be boring (does anyone actually care about the intricacies of anyone else’s house deal except how it relates to their own?), but also because of the rifts they often cause between otherwise like-minded friends.

#187 Andrew Woburn on 04.05.14 at 9:00 pm

#61 Shawn on 04.04.14 at 9:15 pm
The phone just rang. It was TD Bank calling for my 18 year old son to offer a pre-approved Visa card.

As for me, I figure it is just marketing and it’s a free country in that respect.
========================

Hope this works out for you. A friend of mine found her idiot 19-year-old got an unsolicited credit card and maxed out the $10K limit in six months on sports betting and porn sites.

No bank would ever lend this kid two cents of their own money. I am sure this dud loan was bundled into some “asset” backed financing. The bank can’t lose, and the investors already know they will lose a percentage of the loans but the interest rates are so obscene they win too. The losers are the rest of the credit card borrowers who actually pay for these losses by paying high interest rates. But no problem, it’s just marketing, just prudent banking.

#188 Tony on 04.05.14 at 9:37 pm

Re: #176 Trevor on 04.05.14 at 7:02 pm

None of that will matter anyway. Budget deficits will go through the roof in Canada, the end result will be huge increases in property taxes over and above the inflation rate. Property values will collapse and rents will fall. Renters will be the survivors the owners the collateral damage.

#189 Smoking Man on 04.05.14 at 9:51 pm

Incredible, Bank bashing at it’s finest….

You guys remind me of a large family, chirping the sibling that made it big…

Banks are a business, they create products and sell them.

No one forces someone to apply for a credit card or a mortgage. Yes we have an insane re market, but the herd gladly jumps in.

Not the banks fault…

School deliberately dumbs down the kids.. Programs them to unconditionally respect authority, and do what ever it takes to fit in.

Individuals be damned…

It’s your duty as a human who wants there kids to have a better life to challenge the root of the problem…

The educational industrial complex..

#190 Old Man on 04.05.14 at 10:03 pm

#184 sciencemonkey – I know the USA like the back of my hand, so tell me where, and will let you know one way or another.

#191 DAN on 04.05.14 at 10:11 pm

#184 sciencemonkey

I’ve actually begun searching and am currently in talks with employers in the US. I’m in engineering, 26 years old, they don’t even hesitate to pay 15-25% more for a professional there. Being young I don’t have much to loose by moving. I see the overall quality of life to be much greater without the burden of the costs of living that we have here (‘the mortgage’).

and to the sucker in the film above (the husband), my girl gave me flack when I mentioned moving to the USA for a higher quality of life. I kicked her to the curb.

#192 Spectacle on 04.05.14 at 10:21 pm

Re:
#110 KommyKim on 04.05.14 at 12:40 am
#73 Spectacle on 04.04.14 at 9:54 pm
While on there you tubing , try out ” Rose Koire and her Behind the Green Mask ” book/video

A quote from Wiki about Agenda 21:

The United States is a signatory country to Agenda 21, but because Agenda 21 ….
…… George Bush was one of the 178 heads of government who signed the final text of the agreement at the Earth Summit in 1992,……

Response: hmm, you are a smart & analytic person ! So rare.

Agenda 21 , amazingly, it all hides in plain sight. I’ll share some thoughts again on it.

K-Kim, Nice to know that there are others who don’t drink the coolaid, nor take the blue/red pill!

Cheers & thanks Garth for your blogging, it means a lot to us.

#193 Ronaldo on 04.05.14 at 11:25 pm

#178 Kommy Kim – as an example of what has happened with real estate when I first bought in December of 1969 for $20,800 when my salary was $666/mo. or about $8000/yr.(average wage)

The following link is a listing of the adjoining unit to mine which is now listed for $495,000. This same unit in 1986 (Expo year) was valued at around $80,000. A three bedroom condo adjacent to Cap College sold for $72,000.

In 1974 at the height of the RE bubble, the unit I had went up in price to around $70,000 before the collapse in prices in the fall of 74. After that, prices flattened out for a few years. It seems that after Expo, prices started to rise considerably. May have been the “Hong Kong” effect when the fear of the takeover by China caused a rush of buying. So, all in all, from Dec. 69 to now, the unit increased more than 23 times. In Vancouver though, a tear down valued at $1.2 million today would have sold for around $26,000 back then. An increase of 46 times or double the increase of the the North Shore property.

http://bonniemclean.ca/mylistings.html/details-36949694

#194 sciencemonkey on 04.05.14 at 11:31 pm

Old Man, I think my industry is mostly around Cincinnati, Raleigh, Texas (Houston and elsewhere), and San Francisco.

#195 Andrew Woburn on 04.05.14 at 11:31 pm

#191 DAN on 04.05.14 at 10:11 pm

and to the sucker in the film above (the husband), my girl gave me flack when I mentioned moving to the USA for a higher quality of life. I kicked her to the curb.
===========================

I think you’ve just given new life to the stereotype that engineers are socially retarded and actually prefer beer to women.

#196 Roger on 04.05.14 at 11:33 pm

Bidding wars result from lack of inventory.

This blog has talked about the lack of inventory forever. Resulting bidding wars shouldn’t be surprising.

And with regards to Canadians taking out “boatloads of debt” there is no cited data to support that theory I’m afraid.

http://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=2050002&paSer=&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csid=

#197 Obvious Truth on 04.05.14 at 11:38 pm

I’m in the inflation camp. You can see it coming. But inflation won’t be the saviour most homeowners in canada think.

No deflationary pressure from china left. Unemployment falling quickly in the US.

#198 Old Man on 04.06.14 at 12:05 am

#191 and #184 – who is going to pay for your Obamacare? I had a friend in NJ who worked there for 7 years with deductions made towards Social Security, and he came back to Canada. No Social Security for him and no refund as needed 3 more years to qualify. Guess what the US Government stiffed him for? It was thousands of dollars and from memory $35,000 USD rings a bell. Read an article the other day and hundreds of Canadian M.D.’s have moved back to Canada.

#199 april on 04.06.14 at 12:16 am

I haven’t looked at this video… don’t want to… it sounds insulting to women and also to men.

#200 Nemesis on 04.06.14 at 12:57 am

@ScienceMonkey/#184

“Go the distance…”…

“A life lived in fear is a life half lived.”

“Just try and keep up…”…

Captain Rogers is always looking for a FewGoodMen.

ScienceMonkeys, too.

http://youtu.be/7SlILk2WMTI

#201 will on 04.06.14 at 1:29 am

What a disgusting ad.

#202 Dr. Wu on 04.06.14 at 1:58 am

#183 AisA on 04.05.14 at 8:32 pm

#164 Dr. Wu on 04.05.14 at 2:44 pm

I came up with $184,000 on the Bank of Canada’s Website.

Did you mean that “emotionally” 30k in 1970 is 1 million today in house lust terms?

No it’s not emotion it’s actual numbers form from my family’s experience. Al you have to do is ask people who bought in 1970 how much they paid. In Oakville ON, in 1973 a typical side split or 2 story in the coronation park area south of Rebecca, close to Lakeshore, on 80 ft front 200ft deep lot was worth around 25k. Go on Realtor.ca and see what you have to spend today, if there are any for sale. Leaside is similar.

#203 Dr. Wu on 04.06.14 at 2:09 am

#178 KommyKim on 04.05.14 at 7:33 pm

RE:#163 Dr. Wu — “Vlad’s experience is the Rule for those in the GTA who bough in decent areas- 30k in the early 70s is around one million today. This is a fact: it’s not open for discussion or debate.

Plug your numbers into this official calculator, and you’ll see the 30K in the 1970 would have “inflated” to about 184K today. Try it yourself:

http://www.bankofcanada.ca/rates/related/inflation-calculator/

Obviously, there is more than just inflation at work here.

here’s one from Dr. Wu’s childhood memory. my parents bought a house in 1969 (that’s close enough to 1970) at bathurst and wilson in Toronto, it was a 3 bdrm 1.5 sty. probably a 40 ft front. they paid 13.5k, go on realtor.ca and see what’s up today. Apparently the ‘government’ stats on inflation are not reliable

#204 Ontario's Left Coast on 04.06.14 at 2:17 am

I gotta agree with Smokey… Don’t blame RBC; they’re doing exactly what countless other corporations do in any number of industries – use any legal means necessary to maximize profits and grow. Nobody’s forcing these Dewey hipsters to dive into ridiculous bidding wars. Change the dang channel and do whatever it is you need to do to live within your means. Yikes, a little common would help, people!

#205 Dr. Wu on 04.06.14 at 2:25 am

@ AisA and KommyKim

Stay away form government calculators.
When they calculate inflation they don’t count real estate.

#206 Nemesis on 04.06.14 at 3:32 am

AddendumForScienceMonkey:

“Eighty percent of success is showing up. ” – WoodyAllen [to WilliamSafire]

#BonusZen

Chemistry? You WantChemistry? Try a little physics tonight, instead:

http://youtu.be/DGMqYXILS2s

PS – Why do you think ‘OldMan’ is still in ReHab {in a GoodWay}? I’d have Cut&Pasted the lyrics… but it seemed far more sensible and OhSoSafer to spare him yet another defibrillation. TeeHee!]

#207 BillyBob on 04.06.14 at 4:15 am

“This Friday I went down to the US consulate and applied for my passport. I should receive it in a few weeks. Go ahead blog dogs, convince me one way or another whether 50%+ higher salary with lower cost of living is worth moving to an unfamiliar country.”

As long as you don’t ever want to leave the USA again. I have many American colleagues working alongside me here in the Middle East, and they have to both file and pay income tax even though they don’t live in the US. The only countries in the world that tax based on citizenship versus residency are the United States…and Eritrea.

So, you may think you’re getting a deal, but it’s a one-way ticket. You’ve just registered yourself in a system that will track you forever, no matter where you go. Talk to a few of the thousands of folks affected by FATCA.

I’m not anti-US, their housing costs are definitely more grounded in reality that the current state of lunacy in Canada. Certainly there are more job opportunities, as you might hope in the largest economy in the world. But I’m afraid you may discover you haven’t exactly won the lottery either, particularly when you begin dealing with the IRS.

#208 Turtle on 04.06.14 at 4:23 am

#152 Smoking Man

Well… Freedom. No one born as a slave. We define our existence by making choices in life. We have to live in society to survive. But we don’t have to turn ourselves into slaves.

RBC is not a business. It is a machine. Gas station and corner store don’t control minds, RBC does. It can’t be brought down. It can’t fail.

RBC has a great power and zero responsibilities. It takes fathers away from their kids to work second jobs and long shifts. It makes mothers to send their babies to childcare so strangers will raise them.

RBC doesn’t sell sofas or cars. It sells dreams, sells state of mind so you can enjoy your dream “perfect home”, but there is nothing real in it. It is only yours and real in your mind.

No questions, it takes effort to set your mind free. So you can actually enjoy what is yours and real: your kids making first steps, riding a bicycle, playing sports…

Nobody’s gonna sell you all these and profit from it. IT IS FREE. And it is yours to take.

#209 Habs76-79 on 04.06.14 at 4:43 am

#182 Daisy Mae on 04.05.14 at 7:49 pm

And, by the way, it’s not how MUCH you earn…it’s how you manage the money you earn. People can be so foolish.
——————

True That!

I’d bet per capita that wealthy types go broke as often as the middle/working class types. If not the gap would still not be much of one. But the wealthy types have better connections to pick themselves up with

Gail Vaz Oxlade has numerous t.v. shows hi-lighting financial illiterates and morons over the years. From shows such as Till Debt Do Us Part to Princess to Money Moron. Often the subjects are all usually SIX figure type incomes/households, but are on the verge of bankruptcy, divorce, lost job/business and subsequent poor health. On top of that they are often typical of many of my fellow citizens CLUELESS on money, credit/debt and budgeting etc. They often are entitlement types. Though I don’t really watch all these shows much, I will stop from time to time to view, as Oxlade does give good advice about budgeting, priorities, saving and the ideals and consequences of credit and too much debt.

#210 maxx on 04.06.14 at 7:29 am

#182 Daisy Mae on 04.05.14 at 7:49 pm

And, by the way, it’s not how MUCH you earn…it’s how you manage the money you earn. People can be so foolish.

Perfect. Some people have learned this well, and will likely never want for anything. Most have absolutely no clue as to what it feels like to be solvent, let alone wealthy enough to KNOW that you will reach financial independence.

If people were to own their money in the truest sense of the word, and spent to squeeze the most value they could out of it, they would flush out stupid profit margins and gouging would be kept at a minimum.

#211 Axxman on 04.06.14 at 7:30 am

…and construction workers continue to pour onto the GO train in the morning…..

“we’re gonna need a bigger boat”

#212 Yivo on 04.06.14 at 7:51 am

Nice post. As someone who is still a property virgin, this helps remind me why. I’d rather not spend 10 years building the equity into a house, when I can put aside a little every month while renting and have cash on hand when needed. Plus I do think that Realtors are an evil corporation… Just look at the “How Realtors Help” commercials. Why can they get information about a house that the average person can’t? Why is that info privileged?

#213 Chickenlittle on 04.06.14 at 8:55 am

Daisy Mae:

I agree with you to a point: we can’t really afford RE prices as they are right now.

They will work for a short time until the money runs out. Nothing lasts forever, not even your parents retirement fund.

#214 rosie "moving forward" in the knowledge that, "this won't end well" on 04.06.14 at 9:45 am

Crisis, what crisis.

http://www.kingstonregion.com/opinion-story/4422616-crisis-what-crisis-oh-yeah/

#215 liquidincalgary on 04.06.14 at 9:51 am

@ #82 Trojan House

let me guess where you did all of your 9/11 “research”…

the internet?

guests on ‘coa$t 2 coa$t am’?

give me a break

#216 NairBear on 04.06.14 at 10:13 am

As an observer from the U.S. a lot can be said for the disappearing middle class here. There are certainly more social protections in Canada than we have, jokes about Tender Vittles aside.

But Garth, today’s story just shows me how the Canadian middle class is willfully chucking their financial middle-ness to the breeze. Talk about the Big Owe.

#217 Infused with Opiates on 04.06.14 at 10:23 am

195 Andrew

http://www.tobp.com/humor/beerfem.shtml

#218 PoltawaDiva on 04.06.14 at 10:36 am

#191 184 198
All is not lost. If you do not have the full a10 years to collect Social Securuty, there is a treaty whereby you can have you contributions added to. CPP

#219 Old Man on 04.06.14 at 11:01 am

#215 liquidincalgary – most of the cell phone calls came from flight 93, so educate me. How can cell phone calls be made at 35,000 feet when the technology never existed in 2001? The fade out occurs at 4000 feet, and over 8000 feet nothing, yet most calls were clear and lasted for minutes in some cases.

#220 Smoking Man on 04.06.14 at 11:04 am

Researching on line, True Detective I’ve come across serveal disturbing scathing articles from feminists.

Seems the FemaNazis hate the show.. A bro-mance, love hate relationship between two manly dudes is too much for them.

I think the only thing that would make em happy, is if all the males world over, castrated themselves, bought pink shirts, spoke with a high pitch voice. And bought coach man purses.

This world needs a re set…

#221 Kilby on 04.06.14 at 11:07 am

#37 Daisy Mae on 04.04.14 at 7:35 pm
#11 Lead Paint: “We have our Prime Minister to thank.”

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

Yes. He’s made all the decisions. His puppets have just done as they were told. And now Carney and Flaherty have bailed. So, Harper…where does that leave YOU?

Keeping this mess afloat until the next election (if he can) then blaming it all on the NDP or Liberals….Whoever wins.

#222 Kilby on 04.06.14 at 11:09 am

#40 Daisy Mae on 04.04.14 at 7:45 pm
#24 A Yank in BC: “Shame on RBC. Glad I don’t do any banking there. Those of you who do might think about pulling your deposits and telling them exactly why.”

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

Futile. And I’ll tell you why. They’re all the same.

Credit unions used to be an option but the big ones are getting just like banks, at least in Victoria and Vancouver

#223 Aggregator on 04.06.14 at 11:41 am

Grocery wars: Push to lower prices not ideal for food industry overall

Kyle Murray, director of the school of retailing at the University of Alberta, said that while all the competition is likely to lower prices in the short term, "it also forces the companies to do things they may not otherwise do."

 "In order to get those lower prices you're going to see an increase in things that improve efficiency, but they may not improve the quality of the product or even the shopping experience," he said.

"You can have issues around the quality of products and the way products are manufactured; the type of ingredients that go into some of the consumer packaged goods," said Murray.

As if GMO, gluing meat and stuffing yoga mat material to inflate bread sizes isn't bad enough, now industry officials warn of even more issues with food quality as grocers race to the bottom to keep customers shopping within their crony master-planned community protocol. And then people wonder why everyone is dropping like flies from cancer when more studies are linking tumors to GMO foods.

Consider all the billions invested in genetic modifications and chemicals used to keep food prices down over the last ten years, yet even with this amount of investment, food expenditures as a percent of income has been relatively flat over the last decade, but that's now changing. Chart

Only two things can happen now: Either food prices start soaring through the roof as the US and Brazil's drought causes prolonged shortages (can be seen here by looking at spot prices) or the food industry starts pumping up your food with whatever it takes to keep prices down.

Ya you're richer then you think and inflation is low, but you're being fed like a guinea pig in exchange for it.

#224 JL on 04.06.14 at 11:44 am

I watched the video and to me it looks like RBC is intentionally being facetious here with the fake drama. They specifically state at the end of the video that buying a house should not be dramatic. I don’t see how this video advocates irresponsible borrowing or bidding wars in any way.

#225 Smoking Man on 04.06.14 at 11:46 am

http://www.windontario.ca/

There you have it….

#226 Micamine on 04.06.14 at 11:54 am

Buy FSBO and avoid corruption .

#227 Shawn on 04.06.14 at 12:02 pm

What’s Most of All You All’s Problem?

I almost never click on films but decided I better take a look.

I saw nothing wrong with the advertisement. It’s meant to say that RBC can help you buy a house without the dramatics faced by the couple.

In any case it contains nothing untruthful.

Seems to me that many of you have a solid agenda against house prices.

Having so far been wrong is predictions of much of a correction or of great doom from the debt many of you are now increasing lashing out bitterly at the industry.

Real estate agents are evil

Banks are evil

CMHC is evil

Finance ministry is evil

Sellers who try for top dollar are evil.

Really? is this bitterness productive to your lives?

P.S. I come here for the entertainment and occasionally to contribute some rational thinking. And of course there are some other great contributors here as well. But many who post seem awfully bitter.

#228 DAN on 04.06.14 at 12:09 pm

#195 Andrew Woburn
Women over beer anytime but that’s no reason to ignore logic, in the long run you might not be able to have either!

And while we’re on the topic, I’ve lost two friends because they can no longer afford to go out for a drink or two, they’re tied up with a mortgage. Getting together at ‘your’ new house gets stale after a few months.

#229 World According To Garth on 04.06.14 at 1:46 pm

#215 liquidincalgary on 04.06.14 at 9:51 am
@ #82 Trojan House
let me guess where you did all of your 9/11 “research”…
the internet?
guests on ‘coa$t 2 coa$t am’?
give me a break
—————————-

Where do you get yours? The US Govt? considering 100% of all info now flows through the internet maybe you could enlighten us on where you get all your info on a daily basis. DAILY…..don’t just cherry pick you went to to the library 6 months ago.

Lastly……tell you what mr Tow The Line….you give us some links to some pics of two crashed jets in PA and the pentagon like you would on any news wire at any other crash site in history and I’ll write you a check for ten grand.

Jet crash pics – seats, wings, bodies, engines etc.

If you really think a 4 foot thick concrete building “swallowed” at 30,000 lb jet, you have rocks in your head. Go to the library. Maybe you will find some there.

#230 Old Man on 04.06.14 at 1:52 pm

#218 PoltawaDiva – the treaty you are referring to is subject to a Canadian who does not meet the contributory or residency requirements for C.P.P. or O.A.S.. Only then you may apply for a consideration, but he qualified for the Canadian entitlements, so looks like he is out of luck unless something has changed since 2004; the time that he was refused any refund or USA social security benefits. The USA kept the loot!

#231 World According To Garth on 04.06.14 at 1:58 pm

A perfect example of Just Us not justice.

http://armstrongeconomics.com/2014/04/04/hsbc-perhaps-the-worst-offender-of-depositor-rights/

#232 TurnerNation on 04.06.14 at 2:03 pm

Just happened to click comments on that G&M link.

What do we have here but an ersatz blog dog:

“Rupertboy 1 hour ago
Is that you Garth?”

(Expand this one to see this:
“jbwilson24 2 days ago”)

#233 Waterloo Resident on 04.06.14 at 2:13 pm

Wow, the stock market has been acting WONKY since about March 17. My timing system has been giving great buy/sell signals since 2002, but starting around March 17 things have been all over the map. I don’t know what’s going on in the market but the patterns are getting really strange, I have not seen them like that since mid 2007, just before the market was about to crash. I hope it won’t crash again, I want it to go up not down.

In the USA, people keep saying that cops need a warrant to enter a house, yet time and time again we see YouTube videos of cops busting down doors of houses, all without a search warrant, and then the occupants of the house are arrested for not opening up the door, something about ‘Interference with police’, and even when it goes to court (lawsuit), the police are never charged. In America there is no law anymore, it’s just getting crazy. And do a Google search on Albuquerque and cops shooting a homeless man, and you will find that this year alone there has been 23 assassinations by the police there (Albuquerque), all for no reason. It’s just getting crazy in the USA, glad I don’t live there.

As for buying a house right now in Ontario: WHY?
I mean; you would have to be NUTS to pay 50% more money each month in a mortgage than you do in rent. Even if house prices are going up, with that 50% premium you don’t come out ahead. And if house prices are NOT going up then it is doubly stupid. I’m just glad I’m renting. I looking into building a ‘Tiny House’, as they are basically a travel trailer, but one that feels more like a house than a trailer. To me that’s the best way to live since you can follow the jobs out to Alberta (not many jobs in Alberta, but at least there are a few, a VERY FEW of them. And that’s better than nothing in Ontario.)

I that video, that lady says “It’s not just a house, it’s our home.” Well, if they buy that house and either of them lose their job in this economy, something that is HIGHLY LIKELY, then they are both so royally screwed it’s hard to even imagine. That’s something no one really want to talk about: THE JOB MARKET. = It sucks.

I read stories about how in Alberta people make only a little bit more than they do in Ontario, so it’s not ‘BIG MONEY’ by a long shot. If a nurse makes $50,000 / yr here then she makes about $55,000 in Alberta. Similarly a mechanical engineer with 15 years experience might make $60,000 here in Ontario but he makes a bit higher at about $70,000 in Alberta. Not much higher, but at least there are jobs there, while there is almost nothing to be found in Ontario. Yes, if you are working as a petrol-engineer you make $150K + but almost everyone else earns less than half that amount, working 40-60 hrs/week.

A guy who is a professional in Education just came back from 4 months of trying to find a job in Alberta. He was working for his friend trying to sell carpet cleaning, going from door-to-door. Nothing, no one wanted to pay for cleaning. He said the cost of living in Alberta was so high that if it wasn’t for the fact that he had a free room to live in the would never be able to afford the rent there. He applied for numerous min-wage jobs but there was a ton of people applying for serving jobs and other similar jobs and he never got any call backs from his applications. He applied to manual labour jobs at the oil companies but they are letting go of workers right now, they are not hiring new employees. (they are hiring TFW, from overseas only, at much lower pay.)
He eventually came back to his old teaching assistant job here in Ontario, his 4-month search for work in Alberta went nowhere. So for people who talk about jobs being plentiful in Alberta = PLEASE GO GET YOUR HEAD READ, you need help.

With the job market being so bad everywhere, even in Alberta; unless you see people getting hired in new jobs left and right, and the unemployment level is falling due to people finding jobs, not because of people simply giving up searching for work, then go ahead and buy, but if not then DON’T buy. And right now it it “Don’t Buy.”

By October the U.S. bond buying will come to an end, and I’m sure that rates will start rising well before that. Probably by July we will see mortgage rates in the US rise by at least 0.5%, and by the end of this year rates will be at least a full % higher than they are now. Canadian mortgage rates will follow, and I predict by the end of 2014 our mortgage rates will be 1% higher than they are now. And by the end of 2015 rates will be 2% higher than they are now. With those rates, people coming up for renewal will be paying a lot more each month. And with more and more of people’s money going to servicing their mortgage costs, there won’t be any money for anything else; no dinners out, no travel, no new clothes, no new car, no new furniture, nothing. The jobs market will get even worse as companies will have to let go of workers due to lack of consumer spending in the economy. That is what’s in store for the 2015 job market. And when people see rates going up and jobs disappearing, that is when home prices will finally start to fall, it will be in 2015.

#234 sciencemonkey on 04.06.14 at 2:36 pm

@207 BillyBob
Last year I learned of the need to file and I promptly started. I agree it’s onerous and stupid. I decided to keep the US as an option because my field is highly specialized and finding another job in Canada might be difficult.

@223 Aggregator
Why is food getting more expensive? I’m assuming it’s due to oil prices, drought, and overpopulation? Meh, increasingly expensive food is another good reason to not have children.

#235 Andrew Woburn on 04.06.14 at 2:44 pm

#228 DAN on 04.06.14 at 12:09 pm
#195 Andrew Woburn
Women over beer anytime
======================
Actually, Dan, I agree with your point of view. I was teasing you over your hypermacho turn of phrase.

I remember well from my middle twenties the resigned feeling that fun was over and I might as well give in to the pressure to be middle aged. This is a big mistake for many people and may explain some of the absurd urban real estate frenzy among 20-somethings. For people with internationally marketable skills, the years between 25 and 35 are some of the best. Getting tied down too early with houses and families often makes for embittered and divorced 40-year-olds. Good luck in the US.

#236 Nemesis on 04.06.14 at 2:45 pm

#SillySunday #YouCan’tMakeThisStuffUp #MinistryOfBooty

“Only Berlin comes close!” – Michael Gove, UK Education Secretary

[UK Independent] – ‘Loads of hot sex’: Michael Gove on why young business people come to London

…”Providing his expert analysis on why young businessmen and woman come to London, the Education Secretary said that it is “not so much the high-tech opportunities” that provide the capital’s big attraction, but rather: “[The] great opportunities to be successful, enjoy a great culture, have a good time and loads of hot sex”…

Mr Gove made the observation during a Cabinet meeting with Joanne Shields, who, as chair of Tech City UK and the UK Ambassador for Digital Industries is charged with bringing in more tech talent and investment to the UK. She apparently smiled politely – after an awkward silence.

The meeting was attended by David Cameron and Home Secretary Theresa May, both of whom reportedly reacted like embarrassed parents… Unfazed, Mr Gove allegedly added that he “thought everyone knew that”.”…

http://www.independent.co.uk/news/people/news/loads-of-hot-sex-michael-gove-on-why-young-business-people-come-to-london-9242144.html

#237 DM in C on 04.06.14 at 3:00 pm

MY LORD smoking man get over the obsession with True Decective. Yes, it was a good show. It was smarter than average, but, speaking as a highly paid executive woman, ‘femnazis’ don’t hate the show. You’re obsessed it with, that’s all. It struck a chord with you. So what? Frozen struck a chord with many, and made over a billion dollars. So what?

It was a good show… period. It has nothing to do with you, nor was it a profound, life-altering series.

You’re tiresome.

#238 Hicksville Alberta on 04.06.14 at 3:01 pm

#233 Waterloo Resident

A whole bunch of the Alberta jobs that are talked about are a result of the incredible government blowout spending and largess that has taken place at all levels of government in the province and especially at the provincial level fueled by Red Alison and her predecessor, Ed Stelmach.

They have been spending at Lamborghini prices to get Dodge or GM products at best.

In addition the provincial government oil and gas bureaucracy (ERCB) has implemented so many costly and counterproductive rules and regulations on the oil and gas industry that all costs have been blown way out of proportion to economics, logic and reality.

Same kind of bureaucratic logic has been applied to the costs of the bureaucracy at all levels including health care and education, so if Canada is thinking that perhaps Alberta holds the key to the economic resurrection of the country then good luck on that.

What is going on at the ground level is much much different than what can be seen from the ivory towers of Babel and Bureaucracy and that is why your friend was unable to find any sort of realistic Alberta dream job.

A good sustained $20 or $30 drop in the price of oil for a year or two ought to help clean this shxthole up as then perhaps the Bureaucracy can get the reality adjustment they need and the cleanout they deserve.

#239 World Traveller on 04.06.14 at 3:27 pm

Hi Garth,

I submitted a report to Youtube about the RBC video, everyone else should too.

#240 Old Man on 04.06.14 at 4:03 pm

#229 World According To Garth – I have a link which is hard to find as the German Press interviewed both the Mayor of Shanksville and the head reporter out of Pittsburgh in regards to the flight 93 plane crash. They both went on video record that neither one saw any signs of a plane crash at all.

#241 Andrew Woburn on 04.06.14 at 5:06 pm

#238 Hicksville Alberta on 04.06.14 at 3:01 pm
A whole bunch of the Alberta jobs that are talked about are a result of the incredible government blowout spending
========================

It’s not just Alberta. BC has seen large increases in upper level civil service remuneration over the last few years and I believe the same is true of other provinces. It doesn’t seem to hold true at lower echelons. It is hard to believe the increases are necessary to prevent these people running away to private industry. I worry that it is a way of buying their silence and compliance.

#242 NoHouseForMe on 04.06.14 at 5:09 pm

RBC ad catching up to Century 21 ad:

http://www.youtube.com/watch?v=20n-cD8ERgs

#243 airhead princess on 04.06.14 at 5:11 pm

Hey Billy Bob

““This Friday I went down to the US consulate and applied for my passport. I should receive it in a few weeks. Go ahead blog dogs, convince me one way or another whether 50%+ higher salary with lower cost of living is worth moving to an unfamiliar country.”

Don’t forget that as a US citizen you also ahve to pay for Obamacare …whether you use it or not…it is tied into IRS and you will be fined if you do not pay….no matter where in the world you work you’ll still have to pay based on income.

Making the move out of Canada is no picnic……the CRA acts like a jilted lover who wants to extract revenege. Residency is something you’ll find hard to rid yourself of unlss you liquidate and pay tax on all holdings….registered or not ( the departure tax) . If they find that you have any relationships…even a magazine subscription forgotten behind they can wack you with back taxes. You can’t hold a drivers license either…or have any travel insurance policies minted in Canada. Don’t try to hide the post box drop mail idea…..they will send you registered mail and when it’s returned for non delivery they will come at you. Don’t think the US has a monoploy on a-hole attitudes towards collecting taxes.

What I really don’t get is all the immigrants who dump a family in Canada and fly back to Beijing or whatever to manage property or engage in profitable business while the family here lives on subsidies due to ‘low income’….while poppa makes millions of untaxed dollars in China and elsewhere. The hypocrisy is wildy frustrating to concerned tax payers like myself.

#244 Doug in London on 04.06.14 at 5:39 pm

@Andrew Woburn, post #241 and Hicksville Alberta, post #238:
A sudden increase in government spending you say? Is there going to be an election later this year? Such spending is typical just before an election.

#245 Cyclist on 04.06.14 at 5:59 pm

Why not to stand in the middle of the road during a bike race.

https://www.youtube.com/watch?v=IKVKVG66IT8

The cyclist will be OK, but the spectator is in intensive care.

Now back to your regular programming.

227 Shawn – agreed, some very angry people on this blog.

#246 Aggregator on 04.06.14 at 6:08 pm

#234 Why is food getting more expensive? I’m assuming it’s due to oil prices, drought, and overpopulation?

All those factors you mentioned are contributing to higher prices, but one in particular that Keynesian central bankers are sure to miss because they can't print food is supply shortgages.

You don't need more money printing to spark high inflation as a reduction in supply means more dollars chasing fewer goods, in turn, sparking higher prices. Then you have multiplier effects where higher corn prices will cause a shortage of ethonal, so demand for diesel rises, adding to costs and so forth.

This is the beginning of a new secular trend — western consumers contributing more of their income towards food as rising population competes for supply. You can see it when you visit couples who have big houses and no food in the fridge or people frequently pulling up their pants because they can't afford to eat. These are the same qualitive perceptions seen when a country's middle class goes from riches to rags via inflation and financial repression.

Alas, if people don't eat, they'll die, which is why I'd bet the bank and even borrow to invest in Ag and meat/seafood related industries as less family income is wasted on discretionary items and more goes towards putting food on the table.

#247 Woke To The Sounds Of Horking on 04.07.14 at 4:09 am

#131 Steve —

I had your sage words ringing in my head this morning as I paddled out to the surf here in Lombok. What made everything all the more pleasing was that I laughed all morning long at the never-ending queue of Canadian debt suckers so willing to be shackled to debt. Then, with something approaching mild guilt, I realized that schaudenfreude has always been my weakness.

#248 Skywalker on 04.07.14 at 7:32 am

Mark Hamill, you mean Luke Skywalker?

#249 Dupcheck on 04.07.14 at 9:00 am

When money is free or so easy to get, people have no sense of how hard is to get it if they saved it up. That is why they throw it away in bidding wars, easy come easy go.