Choices

COOL modified

Sure, Rick says, I get it. “I enjoy reading your pathetic blog and know a main theme is house prices, affordability, high debt levels and younger people sacrificing all financial investments for the sake of an illiquid roof over their head.” But young people are so boring. And juvenile. Rick wants advice for an early-50s guy.

My wife and I are looking at retirement within the next 8-10 years. Fully paid for 4 bedroom house in smaller town north of Toronto – valued at roughly $750K. About $400K in RRSPs and TFSAs. We like the house and location where we live and still need to commute to work, but with kids at University we’re looking at when the time is best to downsize. Ideally I see that happening when we actually do retire. However your blog makes me think what the market will be like (if we can even predict) in 10 years and based on demographic shift will there be buyers for my house when 8 million other soon to be retirees have the same idea.

Maybe selling soon and finding a smaller place now is best (assuming we can find a suitable place that works well for retirement as well as the last working years) – sell when the market is favourable and invest the difference. Or just stay put and enjoy where we are for now and use the next decade to add to retirement funds. Your thoughts?

Thought One, Ricky, is simple. Talk to your wife. Gently, but with conviction. Whatever happens, don’t let her read this blog. Take all of the credit for the demographic, real estate chill thingy and ensure she knows your one and only burning concern is her life-long financial security. If you need to quickly slip in the words ‘bag lady’, it probably won’t hurt.

Now, without knowing if you have a pension or not (most people don’t) it looks like 65% of your net worth is in one asset – a house in the boonies north of the GTA. The bulk of your liquid assets are in RRSPs which, of course, will be taxed as income once you retire (and I hope they’re not in mutual funds). It also sounds like you want to stop working in a decade, which makes me wonder what the plan is.

What you both will need in ten years is a big pot of money to provide monthly cash flow. If you are able to achieve decent growth for a decade inside the RRSPs and TFSAs, that money should double. Similar returns after that would generate about $56,000 a year in combined income (fully taxable). Add in early CPP and it might get boosted to $76,000. If that’s anywhere close to your current income (and I bet it isn’t even in the ballpark, given the paid-off house and kids at college), you can get by. But will she be happy?

Let’s look at a couple of alternatives. For example, sell the four-bedroom house with the three empty beds, and buy a nice condo or townhouse in the northern burbs for $350,000. Put the other $400,000 in a joint non-registered account and hope that a balanced portfolio will continue to do what it did for the last ten years (including the crash), which is turn out 7%. Now you have $800,000 in retirement in the non-reg account, and an equal amount in RRSPs and TFSAs.

After work you can draw $4,500 a month from the unregistered portfolio and enjoy it as return of capital, which means the money is not added to your reportable income. Cool. Add in the CPP, and it equates to a $96,000 income (if it were drawn from an RRSP). The only tax you will pay will be on the dividends and capital gains generated within the account, which should be well under $10,000. The other $800,000 inside the registered accounts can continue to grow in a taxless environment until you and your squeeze turn 71, when it should have swelled to more than $1,000,000. That will generate another $70,000 a year in (taxable) income.

Or, you can sell the house and buy nothing, invest the $750,000 to churn out three or four grand a month in rent money, and have $1.1 million liquid. Or keep the house and remove four hundred thousand in equity through a home equity line of credit at prime, invest the proceeds in a well-balanced, carefully-managed portfolio to (hopefully) double over a decade, and along the way have 100% deductibility of the interest-only payments. Should rates rise uncomfortably or plans change, the HELOC can be paid off within a few days.

Or, of course, you can do nothing. Be conservative. Wait for real estate to correct, and regret it. Wait for all the wrinklies to start panicking, and regret it. Odds are that rural residential properties will be a tough sell, given the urbanization going on now, and the migration of the Boomers. We know where demographics is taking us. We know the cost of money will be swelling. And we know a couple retiring today in their early sixties will have a quarter century of living to finance.

Talk to her, Rick. She’ll swoon. Trust me.

183 comments ↓

#1 Van Isle Renter on 04.09.14 at 8:11 pm

Must resist the urge……

#2 LB on 04.09.14 at 8:16 pm

Hi :) – Garth rules!

#3 everyone should sell on 04.09.14 at 8:18 pm

It boggles my mind how people are so house horny and can’t think about anything other than buying a house and or keeping it.

Why on earth would you want to worry about maintaining a property/upkeeping a property as you head into retirement?

REnting a condo is the smartest thing you can do. For $1,500 a month you can get a 1 bedroom + Den + parking spot in down town Toronto.. Up in the middle of nowhere – see north york, scarborough, etobicoke, etc, You can get an even larger place for the same or less.

It’s a no brainer. Sell that house. You don’t even need to invest it. Hell a 5 year GIC @ 3%, put in that $500,000 from your home sale and that’s chucking out $15,000 a year in interest.. Covers all of your living costs (not accounting for marginal tax rate).

so why on earth would you want to worry about an asset that requires upkeep. You worked hard all your life.. let that money you paid into it work for you.

#4 jan on 04.09.14 at 8:25 pm

Put the other $400,000 in a joint non-registered account and hope that a balanced portfolio will continue to do what it did for the last ten years (including the crash), which is turn out 7%.

Me – are you getting a little less bullish on equities on account of the recent pop in valuations ????

#5 Steve on 04.09.14 at 8:29 pm

Or,,, you could go to Nevada, get wasted, strap on a rubber dinosaur tail and put everything including the old lady on red. That’s what I’d do iffin I was rich and all

#6 BG on 04.09.14 at 8:31 pm

I’ve never been cool.
I’m working toward it though.

#7 Furio on 04.09.14 at 8:32 pm

Furio First

#8 sideline sitter on 04.09.14 at 8:34 pm

I was, and still am

#9 Bill Gable on 04.09.14 at 8:36 pm

Human nature being what it is – I have this gut feeling that everyone is going to try to head to the exit at once.

The days of ‘sinecures’ are over. (*Just ask the folks at CBC that found out the $100 million Hockey Night in Canada franchise, was keeping the lights on – so – here’s the severance pak, you lucky 53 year old).

I know very few of my coterie that even have a pension.
Yet, I get the gears when I tell friends, when pressed, that we RENT. It’s like all of a sudden I am wearing brown shoes with my tuxedo.

Vancouver has become like Oz. People walk around with their head down texting, gosh know’s who, and the whole tableau is just about surreal. Big cars. Restaurants are busy – but – wait – that place above us has been for sale for THREE years.

Hmmm.

#10 Realtor # 1 GTA on 04.09.14 at 8:38 pm

The cost of money will not be swelling ??
Rates not going up anytime soon. Feds back track
Maybe year

#11 Dentist can't afford a home on 04.09.14 at 8:39 pm

Getting closer to first lolololo

#12 Mr. landlord on 04.09.14 at 8:41 pm

Hi Garth,
I was wondering what percentage of the population of families in Canada have a net worth of at least 2 million not including their personal residence? Thanks in advance!

#13 raisemyrent on 04.09.14 at 8:51 pm

hey blog dawgz, still recovering here. Head injury be an itch. I hope everyone drives safe and has a way to go without income for a while in case the poop hits the prop. Garth has touched on the matter.

I posted this to some friends:
http://www.cbc.ca/news/business/taxes/tax-season-2014-where-in-canada-do-you-pay-the-most-tax-1.2507059

A few of my friends have taken the plunge on real estate; some are exposed with more than one property. I wish I too had a crystal ball. Yet, they’re happy to point out that I pay expensive rent for my 1 BR in downtown Vancouver, or would never lease a BMW. I usually smirk back when we go out and I for one, don’t really care how much food/drinks cost wherever we may be.

A friend is debating coming to the West Coast. He currently is in some Toronto suburb. Literally his first question/objection was housing costs. Because the only option is buying. And by buying, I of course mean taking a long-term loan whose precise mechanics most people can’t comprehend.

My other friend is debating cashing in her mutual funds to be debt free. Sigh. This someone who works in Grande Prairie for the oil industry (if they’re not debt free, who is?).

Speaking of oil, what’s north of Edmonton? Oil. And this guy’s former house:
http://www.cbc.ca/news/canada/nova-scotia/canadian-forces-major-sues-feds-over-moving-bill-1.2603391

So he signs a long-term loan, and now wants to be bailed out.

Has anyone seriously never heard of renting?

Meanwhile, in Québec (still Canada), one pays lots of tax (see above), and my friend just complained to me over the phone that she only got a 5% raise. She works for a major engineering firm that starts with S and ends with C, and has a knack for making headlines. She also makes over 10k less than me (we went to school together). And I live in BC (Bring Cash). But hey, Quebecers have cheap rent. So there’s that.
She’s currently renovating her house in the Laurentides, and found all sorts of skeletons in the walls. Being a decent human being, she’s fixing them (i.e. losing money on it). I’m the bug in her ear; I’ve told her to give notice to the people she bought it from, if only to scare them a bit. And to sell once the reno is done (an idea she hasn’t entirely embraced, believe it or not).

Back to today’s topic; imagine (if you can) how these people will be doing when they hit Rick’s age.

p.s. I have the one buddy who is liquid, debt-free, and has an online self-directed brokerage account with at least 5 figures on it. Yet, he invests only in Canadian stocks. I spoke to him about this and that the other day, and casually pointed out to him that he has lost about 10% since the loonie shed its value. There was a brief silence on the line…

#14 TurnerNation on 04.09.14 at 8:55 pm

Resale: exactly who would want a well-used aging family home in a “smaller town north of Toronto – valued at roughly $750K”?
A young family wanting the latest in granite, and on which ‘small town’ salary for a 1/2 mill mortgage? No well off DINKS would want. Boomers are shuffling away into homes. Then who?
Two words: Reverse Mortgage.

#15 Holy Crap Wheres The Tylen on 04.09.14 at 8:58 pm

#149 Smoking Man on 04.09.14 at 4:34 pm

You still don’t get it Smoking Man! E = MC 2 has nothing to do with the biological interaction of your neurons.

#16 dosouth on 04.09.14 at 8:58 pm

Sitting enjoying the San Diego sunset with some Acronym Murlot and Brie on the beach. All because we are saving enough renting, really…..and planning our next time away whilst the landlord is presently working on the hot water tank and aerating the lawn – all while we’re gone. Right decision, right for the times……

#17 Macrath on 04.09.14 at 9:02 pm

A 4 bedroom house in smaller town north of Toronto – valued at roughly $750K

Waterfront in Shangri-La, Ontario ?

#18 Ben on 04.09.14 at 9:10 pm

Garth – let’s have how much Rick *bought* the house for then subtract the difference between that and the valuation then take that away from his RRSP savings.

That’s how much he’d have saved if he had to join the market now, just as young people have to.

Then let’s see how much he can retire on. Then you can tell us how the next generation can do the same.

Then we can all sit around and be cool because the kids are getting a fair deal. Looking forward to it.

Of course not. Buy a house now and you’re probably pooched. So don’t. — Garth

#19 No-Body on 04.09.14 at 9:16 pm

Toronto, Vancouver, Calgary rated tops for real estate investment.

Read it in today’s headlines!

Forget London, New York and the other big names, Canada takes the top 3 places for long term investment!!!

I dare you to bleep this comment!

As decided by who? A UK property developer. Bleep, bleep. — Garth

#20 Ben on 04.09.14 at 9:35 pm

Garth – firstly thanks for the reply.

We’ve had 10 years of “buy now and you’re toast. And I agree. But in the meantime we’ve had high rent costs and little opportunity to save as wages stagnate and inflation bites. After 10 years your mortgage is normally not so bad but not in this new paradigm of rent / gamble big.

We are caught in the waiting room whilst the state try to pretend to the core older voters that it’s all going to be fine. It will become apparent for them soon and for the young that it’s not going to be fine.

Unless there is a big correction in housing young people are going to be working until they die. I don’t see any other way to add this up.

Do you? How does it add up Garth without cheap living costs and rampant asset appreciation to cash in?

If it doesn’t add up then tell me how many iterations have we had of people who retired having paid for their own pensions (defined benefit does not count!) and their own housing like today’s kids are supposed to. I make it … none.

#21 KommyKim on 04.09.14 at 9:36 pm

RE: After work you can draw $4,500 a month from the unregistered portfolio and enjoy it as return of capital, which means the money is not added to your reportable income. Cool.

The return of capital will reduce the Adjust Cost Base of your investment resulting in a massive capital gain once the investment is liquidated. Hopefully when you are dead. Now that would be cool. ;-)

You can withdraw your own capital at any time with no ACB change. — Garth

#22 Joe on 04.09.14 at 9:40 pm

I think prices still will go up in Toronto like in Australia,

better buy it now…what you call the pick!!!

#23 KommyKim on 04.09.14 at 9:43 pm

One other “detail”. Once the ACB (Adjusted Cost Base) has been reduced to zero, those return of capital distributions will become taxable as capital gains. At $4,500 a month, it should take just under 15 years to reduce the ACB of the $800K investment to zero.

Nope. You can take ROC payments from a non-reg portfolio with no ACB adjustment. — Garth

#24 Smoking Man on 04.09.14 at 9:43 pm

15 Holy Crap Wheres The Tylen on 04.09.14 at 8:58 pm
#149 Smoking Man on 04.09.14 at 4:34 pm

You still don’t get it Smoking Man! E = MC 2 has nothing to do with the biological interaction of your neurons.
…………..

Dude you keep interrupting my marathon viewing of true detective and my essay on what really happened to MH370
Complete report on my blog some time this week. It ain’t in the Indian Ocean… I would post it here but already 3000 words and growing fast.

So if you want to know the true meaning of E=Mc2

Follow the link below… And stop bugging me for a couple of days..

My science is settled…

http://dyslexicsmokingman.blogspot.ca/2013/11/the-shear-lunacy-of-science-and.html?m=1

#25 Andrew Woburn on 04.09.14 at 9:46 pm

Houses: the greatest investment delusion known to man

” it is easy to persuade people that property is a one-way bet and for speculative behaviour to take hold. This is happening now. It isn’t only about greed. It is also about fear – the fear that if you don’t buy now, you will never be able to afford to. ”

http://www.telegraph.co.uk/finance/comment/rogerbootle/10733345/Houses-the-greatest-investment-delusion-known-to-man.html

#26 Shawn on 04.09.14 at 9:47 pm

My Vote for Rick:

If you have good pensions coming, no need to do anything but gloat.

If not, given you like the house, I will pick Garth’s door number three:

Or keep the house and remove four hundred thousand in equity through a home equity line of credit at prime, invest the proceeds in a well-balanced, carefully-managed portfolio to (hopefully) double over a decade, and along the way have 100% deductibility of the interest-only payments.

******************************************
Borrowing to invest goes against what most of us have been taught, but this could bea decent option.

The problem is you really need to go big like $400k and $400k is a BIG mortgage. Also not sure you can get interest-only LOC which is what works best here.

I’m betting Rick has pension(s) coming.

#27 Joe on 04.09.14 at 9:51 pm

How do you know that your money will exist??
They are fiat paper money….
Never thought that dollar can go to drain…..
And hard assets will stay…so is worth to take million dollar mortgage and wait for depreciation of the dollar…
History likes to be repeated….
I think that people buying houses because they fell that dollar will stop to exist….

#28 Ret on 04.09.14 at 10:05 pm

Rick lives north of Toronto so he may be able to find a builder to semi-custom build him a 1100-1400 sf raised ranch/bungalow. All brick to minimize maintenance and with enough usable basement space to suit your hobbies, needs, and accomodate overnight quests if occasionally needed. Configure the house to suit your needs.

A new home should be warmer and more energy efficient and free you from endless major renovations and repairs for at least 20 years. Close to shopping and medical care will be very important as well as driving will become more problematic.

A little gardening, wash the car, bbq when you want etc. and not be a slave to bathroom renos, $9000 roofing jobs and horrendous utility costs. Whoever lives the longest, will be able to carry on in the home with fairly minimal support.

Some of these in the link are very stylish or could be if quality exterior finishes and windows were used.

https://www.google.ca/search?q=raised+ranch&es_sm=122&tbm=isch&tbo=u&source=univ&sa=X&ei=8fNFU5DjJ4zLsASK94KoBg&ved=0CDYQ7Ak&biw=1248&bih=878#q=raised+bungalow&tbm=isch

#29 Shawn on 04.09.14 at 10:05 pm

The Irony of RRSPs and TFSA and who has ’em

RRSPs and TFSA are, in theory, ideal for big wage earners who don’t have pensions.

Problem is most of the best jobs still come with pensions. (Yes, government work, plus good jobs at the banks, rail roads, car companies Telcos, cable companies, all the biggies). Okay lately they may have DC pensions in a lot of cases but at least a pension of some kind. And everyone over 35 or so got in before the DBs were taken away.

Most of the people with pensions have good jobs and are therefore able to max out any RRSP room and also used RESPs and lately TFSA.

The poor sods who the RRSP and TFSA were supposed to help usually (with exceptions of course) have lower paying less secure jobs and on average have no money to to use much of their HUGE RRSP room or even TFSA.

This is sad but I think true.

The benefits of the best jobs are many, that is just the way life is.

It’s true, Princess, if you thought government workers and others with DB pensions and benefit plans had it good in their working years, wait till you see how much better they have it in retirement. If they earned double while working, they probably will have triple to quadruple income in retirement. Their biggest gripe will be paying taxes on RRSP withdrawals because their incomes are so high they get into the clawback zone. It’s not a bad problem to have.

The working poor will receive in retirement probably as much as they made while working.

It’s the next level up the lowest rung of sort of almost middle class, that will get killed in retirement. No pension, their incomes will drop down to about the same as the working poor. They may get decent CPP but that just makes them ineligible for the Old age supplement and the GST cheque. The lowest rung of middle class has always paid the highest marginal tax rates because when they make an extra dollar they lose some benefit like GST cheque or child tax credit or they lose eligibility for need based bursaries for kids to college. (I am sort of guessing here but I think I am not far off).

Had Garth remained Revenue Minister perhaps he could have fixed some of this.

#30 About Face on 04.09.14 at 10:06 pm

Wow….am I seeing a shift in sentiment here. You are using the word “hope” twice in one post….for the last few months it was a sure thing….always the politician, looking for an exit plan are we?

“and hope that a balanced portfolio will continue to do what it did for the last ten years”

“invest the proceeds in a well-balanced, carefully-managed portfolio to (hopefully)”

I always hope people will make wise choices. — Garth

#31 Shawn on 04.09.14 at 10:10 pm

Fiat Dollar?

Joe at 27 asks:

How do you know that your money will exist??
They are fiat paper money….

*****************************************
Joe, ponder this. Is money invested in shares of companies money, or is it wealth measured in money.

Money invested in bonds is invested in paper dollars (not something I worry about but yes, paper dollars)

But is money invested in stocks of real company an investment in fiat? Stocks are paper you say. Yes so is title to a house.

Are shares in a company that owns rental apartments less of a hard investment than owning apartments?

#32 Big Leafs Fan on 04.09.14 at 10:11 pm

Kommy Kim #21
I was going to say I could agree with you and Garth but then we would all be wrong , then you corrected yourself on the reducing ACB which is correct. Still a tax efficient income straem when you average the taxes paid over the entire withdrawal period given that the first 14.8 years is tax free.

Capital withdrawals from cash (interest, dividends, distributions) flowing into a non-registered portfolio are not reportable and have no impact on the taxable value of assets held. — Garth

#33 Nemesis on 04.09.14 at 10:12 pm

#Choices #BadIdeasInSmallPackages #TheBeautyOfTheBurst’ #ThreeKoolKats #ACreativeWritingWorkshopForAureliusCribbingSmokin’Men #PerfidiousAlbion

Funny thing about “Choices”, SaltyDogz… sometimes you celebrate ’em… and sometimes you regret them.

Often you do both.

Did you know that some of Life’s BiggestSurprises… come in SmallUnobtrusivePackages?

Of course you do. That’s why you’re here… Right?

Never mind all that… As SmallSunbursts go… It was, definitively… like… Totally… our WorstIdea.

Ever.

Which is probably why ‘TheManagement’ approved it. Who could’a known they take that tack?

I digress… Naturally, we were drunk.

It was TheBigApple at FatTuesdays – albeit, on a Wednesday.

LastCall following a CommandPerformance by none other than…

LesPaul. NoSh**.

Les had just obliged us with an impromptu Brubeck encore: “Take5”

http://youtu.be/PHdU5sHigYQ

…&… as only a TrueMaster could have played it… on his SilverFretted, Ebony&IvoryInlaid, Gold[Not Beryllium]PlatedPickUp, GibsonsCustom.

http://tinyurl.com/ne9mhgn

And thence we returned to our cheap lodgings… got out our SlipSticks and NoteBooks… and the rest, as ‘they’ are wont to say… “was history.”

In retrospect, not our FinestMoment.

What’s worse… they’re still out there somewhere, SaltyDogz.

Hint: They’re not in Samsonites.

What can I say?

We were just ThreeThermoNuklearKoolKats on the FerrisOfWheelLife…

http://youtu.be/pi38SLUbkRU

[NoteToOttawaMike: “L’Angleterre est une nation de boutiquiers.” – http://en.wikipedia.org/wiki/Perfidious_Albion ]

#34 KommyKim on 04.09.14 at 10:15 pm

RE:You can withdraw your own capital at any time with no ACB change. — Garth

Yes that is correct. Selling some of your ETF “shares” does not effect it’s ACB. But the resulting capital gains/losses WILL be effected by the ACB which has been reduced due to the return of capital that you have already received from the ETF or trust.

RE:Nope. You can take ROC payments from a non-reg portfolio with no ACB adjustment. — Garth

Hmmm…. Why does the CRA gives this example:

For example, Mika purchased RST Mutual Fund Trust units for $1,000 in 2006 and received a $200 return of capital in each of the 2008 to 2012 tax years. Because of these returns of capital, totalling $1,000, the ACB of the shares is zero by the end of 2012. In 2013, he received an additional $200 return of capital for the units. Since the ACB of these units is already zero, he must include this $200 in the calculation of his capital gains and losses for 2013.

Source:
http://www.cra-arc.gc.ca/E/pub/tg/rc4169/rc4169-e.html#P31_4476

Because it is a capital withdrawal, not an earned distribution. — Garth

#35 Nemesis on 04.09.14 at 10:15 pm

Addendum

[NoteToGT: Not my favourite pair of shades, but I still I think I looked somewhat Kool …BrushingSkins behind ‘Beck.]

#36 Aggregator on 04.09.14 at 10:19 pm

Toronto, Vancouver, Calgary rated tops for real estate investment.

Ahh boy, I guess I'm the only one who watches for these UN Agenda 21 funded reports promoting densification by world order.

You see, you have to know how to track the UN's little Canadian muppets — they leave trails — and if you read Grosvenor's research report and scroll all to page 12, you find the following logo: Forest Stewardship Council Canada http://www.fsc.org

And who is the Forest Stewardship Council in alliance with? Find out for yourself here, or you can track their socialist climate change staff like this guy:

Linkedin: Larry Joseph, Director, Social Chamber North at Forest Stewardship Council International

Senior Policy Analyst, Climate Change and Environmental Stewardship Assembly of First Nations

Negotiated inclusion of indigenous knowledge into the five-year workplan for the United Nations Framework Convention on Climate Change

There you have it — a 21st century feudalistic dictatorship trying to clear the lands by promoting resilient luxury micro-condos as the new standard of living for Canadians.

They hate when they get exposed.

#37 AK on 04.09.14 at 10:22 pm

Never, ever be un-cool….

#38 greg on 04.09.14 at 10:25 pm

Garth would you say you gerald celente ,peter shiff all have same views?

#39 KommyKim on 04.09.14 at 10:28 pm

RE:Because it is a capital withdrawal, not an earned distribution. — Garth

Are those “capital withdrawals” not subject to capital gains?

No. — Garth

#40 Linda Mulligan on 04.09.14 at 10:28 pm

Definitely downsize if its possible to sell the house. If you can’t find anything you like to buy, rent & try out options you are considering (condo, city life, country life, small town life etc.). Also plan for when various body systems fail – as in don’t rent/buy a place that would keep a Sherpa in shape if your hips/knees/ankles are protesting one short flight of stairs now. Which also means looking at how much work the current house is to keep up & being realistic about the fact the amount of upkeep required is never going to go down unless you get a place that requires less upkeep. Or have both the money to pay for & the access to a service provider who can keep the place up when you no longer can.

#41 Victor V on 04.09.14 at 10:36 pm

http://themashcanada.blogspot.ca/2014/04/and-it-went-for-11-ridgewood-road.html

This 5+1 bedroom, 5 bathroom house on a 62 x 268 foot lot at 11 Ridgewood Road in Forest Hill has been listed for a while.

I first posted it in February 2013. The asking price was $2,495,000.

I thought it would sell fast as a teardown if a buyer didn’t mind the odd location. It didn’t sell.

The price was dropped in September to $2,279,000.

In the meantime, the house located 2 doors away at 15 Ridgewood Road that was first listed at $4,498,888 wasn’t selling either and had 18 price drops.

This house didn’t sell in September and had another price drop in November to $2,100,000.

15 Ridgewood was then at 19 price drops. It finally sold for $2,675,000 in February after 20 price drops!!!

And now this house has finally sold as well…

For $1,700,000.

#42 KommyKim on 04.09.14 at 10:41 pm

RE:Capital withdrawals from cash (interest, dividends, distributions) flowing into a non-registered portfolio are not reportable and have no impact on the taxable value of assets held. — Garth

Sure, capital withdrawals of cash are non-taxable. But interest, dividends, & distributions are taxed if they are generated in the non-registered account!

You say “flowing into a non-registered portfolio”. OK. Flowing IN from where?

#43 Joe on 04.09.14 at 10:50 pm

response to Shawn #31

In case of dollar collapse your shares are worthless and your all paper assets but hard assets stay…
So you better off to take one or two million dollars mortgage because will be forgotten anyway…..
or hyperinflation will take care of///
Poor people don’t believe in RRSP , Stock market…it is a game…to suck you in…
Hard assets stay…
The share’s system is the best financial trick I have ever seen…..imaginary value….inflated 1000000……% or more…Try to sell hard assets of the company and give to shareholders…=nothing , zero!!!!
Your house you can give to kids….worthless shares you can throw to garbage ….
Ask homeowners what they think about stock market…one big rip off…..all pensions based on mutual funds big BS….

#44 Victor V on 04.09.14 at 10:59 pm

http://business.financialpost.com/2014/04/09/cbc-may-cut-roughly-600-positions-on-thursday-lobby-group-says/?__lsa=d9ec-ede5

The Canadian Broadcasting Corporation could be facing layoffs in the range of 600 positions as it grapples with a financial shortfall of $130-million to $150-million, according to a lobby group that watches the national broadcaster closely.

The CBC will hold an all-employee meeting Thursday and Ian Morrison, spokesman for Friends of Canadian Broadcasting, said Wednesday specific details of the announcement “remain fluid” but that he expects it to be in line with those numbers based on conversations with multiple senior-level sources inside the broadcaster.

The lobby group predicted the sports division “will be gutted” and that cuts will affect both English and French services with the English division likely to be hit about twice as hard.

#45 GTA engineer on 04.09.14 at 10:59 pm

Garth,

Can you share what institutions are offering HELOCs at prime? I’m renewing my mortgage and my broker tells me (as do all the rate sites) that the best on offer is prime+0.5%. Very interested to hear if you know otherwise. Thank you.

#46 Smoking Man on 04.09.14 at 11:08 pm

Heaven defined, listening to handsome family on my boses noise canceling head phones, while watching Jango….

Wife poo thinks she’s a smart ass rationing me to two glasses of wine a night.

I’ve strategically hidden Mickie’s of Scotch around the property.

She’s happy with the illusion and thrill, knowing she’s finally got control of hubby…

Me, I’m happy that I can I’m still a bad ass.

#47 Bob Rice on 04.09.14 at 11:12 pm

Anyone like to comment on this?

http://business.financialpost.com/2014/04/09/grosvenor-ranks-toronto-vancouver-and-calgary-most-resilient/?__lsa=c7ce-8194

#48 Role on 04.09.14 at 11:14 pm

Heh, ya I can see when’s peeple say soft marjrine on house! Sell now… Or regret youre-self!

#49 Spectacle on 04.09.14 at 11:14 pm

Thanks Garth.

#36 Aggregator on 04.09.14 at 10:19 pm
Toronto, Vancouver, Calgary rated tops for real estate investment.

Ahh boy, I guess I’m the only one who watches for these UN Agenda 21 funded reports promoting densification by world order.

Reply: Wow, Aggregator, excellent analysis of the two situations/reports. The corrupt financing by Agenda 21 . The Agenda-21 plans are now eliminating the Native Canadian for good. Because they had serious potential to ward off their land grab, water resources, cheap hydro electrical power, and on….

I’m so glad you mentioned Agenda -21 and it’s massive insidious force on our culture. It is wiping out the dollar earnings of our youngest, decimating the middle class, and will take everything it can from the retired. They will start on the “weak perimeter” of society……..

As Garth said,

“We know where demographics is taking us”

Agenda-21 is tearing up the road we used to take!

Thanks Aggregator.

#50 shawn on 04.09.14 at 11:14 pm

Raise my Rent at 13 says…

p.s. I have the one buddy who is liquid, debt-free, and has an online self-directed brokerage account with at least 5 figures on it. Yet, he invests only in Canadian stocks. I spoke to him about this and that the other day, and casually pointed out to him that he has lost about 10% since the loonie shed its value. There was a brief silence on the line…

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

He has lost 10% only if he planned to spend that money in the U.S.

Currency fluctuation has extremely little impact on everyday Canadian spending. To the extent it does it shows up in CPI.

The silence from your liquid, debt-free friend in response to your analysis may not exactly have signified what you think. He sounds pretty smart.

There are plenty of stocks to buy in Canada, investing in U.S stocks is not a strict requirement.

#51 groovin123 on 04.09.14 at 11:25 pm

Rick,

Here’s an idea that has never come across this sad, pythetic, unwashed blog. Do whatever makes you happiest and enjoy your golden years.

#52 Victor V on 04.09.14 at 11:28 pm

Why you should never put U.S. stocks and ETFs in your TFSA

http://www.theglobeandmail.com/report-on-business/video/video-carrick-talks-money-why-you-should-never-put-us-stocks-and-etfs-in-your-tfsa/article17729545/

#53 Freedom First on 04.09.14 at 11:36 pm

Looks like Rick and wife have done well, even without seeing all of the factors, pensions, etc.

Today’s post really got me thinking. For myself, who has never been what I call a high income earner, but certainly always comfortably, for me, above the average earner, since my teens my financial philosophy, since then as I was self supporting by 18, was to keep it simple. My simple philosophy is to avoid debt, which I see as being equal to financially castrating myself. Also, to always live a lifestyle well below my income, save and always have FU liquid funds. Invest in minimum 8 diversified assets, the majority always being liquid, as well as balanced. Not paying interest and being creative can provide a life with: travel, driving nice paid for vehicles, owning a home well within Garth’s rule of 90, (I have owned, but not necessary, as I only bought because RE dropped 60%, and owning was cheaper than renting, when it reversed after a high run up, it’s sold as my home is where I live, period).

But, what my main thought is, right from this second and forever, is, most importantly, be financially fit “Right Now”. That, is priceless, no fear, no greed, and always……….freedom first.

#54 Brian P on 04.09.14 at 11:46 pm

Garth,

In your analysis, how much of the $800K non registered is being assumed to be in the TFSA? With a balanced portfolio as you prescribe and I fully agree with and I have in place, $10K dividends per year only represents a return of 1.25% on the $800K. Seems mighty low.

#55 betamax on 04.09.14 at 11:51 pm

#19 No-Body: “Toronto, Vancouver, Calgary rated tops for real estate investment”

Newsflash: prices rise in a credit bubble.

#56 Fortune500 on 04.09.14 at 11:57 pm

Honest question for the blogdogs …

Who comes out ahead?

Couple A, 35 years old- Have 500,000

They buy an ‘average’ house in Canada and have less than 100,000 left for a new car, lawn furniture, etc. They go on to earn the median household income, but since there house is paid, they spend the next 25-30 years easily topping up their TFSA and or RRSP.

Couple B, 35 years old – Also have 500,000

They invest their 500,000 in a balanced portfolio (ala Garth). Also go on to earn the median household They rent their homes and do a bit more traveling than couple A, but due to those costs, only scrounge together 1000 dollars a year to add to their savings.

Which couple do you honestly see coming out ahead financially after 25-30 years?

A silly hypothesis. The question is not to live a life as an owner or a renter, but to ensure you have diversification and balance. Never put all the eggs in one rabbit. — Garth

#57 Son of Ponzi on 04.10.14 at 12:14 am

Off topic.
But maybe an explanation for slow driving in Richmond,
BC.
http://www.richmond-news.com/news/thousands-of-illegal-chinese-motorists-could-be-driving-in-richmond-1.947451

#58 Jane24 on 04.10.14 at 12:24 am

At 59 and 63 we downsized three weeks ago. Sold our 4 bed family home and moved to a three bed bungalow about 2 kms from our old place so same neighbourhood and same friends. Note that this is not a Canadian size ranch-like bungalow but an English bungalow so more traditional East York size for the TO readers. We are then building a hobby room in the garden.

The real problem was getting rid of stuff and deciding what exactly was worthy of coming with us to our new lives. That old house with its high energy bills was really just a big expensive box to house our stuff. Empty bedrooms for the occasional weekend when our adult children slept over.

We are very comfortable here as it is amazing how little space one actually needs to live and the move allows us both to go part-time so enjoy life more.

The moving van guys told us that most of their business now is down-sizers so the demographic shift is starting here in England. With so few bungalows being built today, especially right next to shops, bus stops and other facilities, I can see that in 5 years time this bungalow may be worth more than the big family home we left although half the size. Great lot size too. Supply and demand will kick in.

#59 bill on 04.10.14 at 12:33 am

nemesis: I picked up one mikes originals,lo these many years ago when he was in his les paul phase. they are decent for sure.
I am famous for being the worst [hands down]guitarist to own one of his.nope I am not kidding…. the worst.

http://www.kinal.com/

#60 MrHulot on 04.10.14 at 12:41 am

Here is an article in the G & M that demolishes Garth’s false assertion that foreigners do not influence the Vancouver market.

“Vancouver will never go back to being a beautiful but sleepy – and relatively inexpensive – town on the West Coast.

It has become one of the new landing sites on the continent for global capital and immigrants, say experts who specialize in what are called “emerging gateway cities.”

http://www.theglobeandmail.com/news/british-columbia/the-challenge-of-vancouvers-appeal-to-foreign-investors/article17910691/#dashboard/follows/

Actually I said offshore money is not the primary reason Van houses are unaffordable. Blame the locals for that. — Garth

#61 Joseph R. on 04.10.14 at 12:41 am

#36 Aggregator on 04.09.14 at 10:19 pm

” … Agenda 21 funded reports promoting densification by world order. ”

Was the lobotomy painful?

#62 Transplant on 04.10.14 at 1:09 am

Re. #19
So what? This “study” reported in the National Post addresses only long-term real estate investment and does not purport to offer any information on how this form of investment performs in the long run compared to other strategies, for example a balanced portfolio.

Furthermore, although I am not a statistician, it appears based on the graph shown, that the difference between #1 for example and #10 are rather trivial. Five of the top ten cities are American. Admittedly I am only familiar personally with Chicago real estate which has risen in value by just a fraction of prices in the Canadian cities listed; this suggests to me the likelihood of increased short-term risk on the Canadian side. If the differences in long-term “soundness” are small between the cities I used as examples, why would one take an increased risk in the short-term?

Also, the article does not make clear what the study authors mean by “sound”-return on investment, risk of principal loss or what?

#63 Nemesis on 04.10.14 at 1:10 am

#ThruxtonThursdays #BlackStallions&BlackerBirds #MakingPictures:TheSeventhArt&TheFifthEstate #TomorrowIsAnotherDay-&That’sExciting! #PastPresent&Future?

TeachYourChildrenWell…

http://youtu.be/0r4H3u1mrWc

And then, perhaps… if you’re really lucky:

https://www.youtube.com/watch?v=wMGaIr7kCqc

They not only won’t need you… but you’ll never worry about how far… or precisely where… Destiny will take them:

http://youtu.be/ogJSRa5cukc

Well. That was then.

This is now.

And then there’s tomorrow…

It’s an imagination thang, SaltyDogz…

See!

ToldYaSo.

FADE TO:

http://youtu.be/saQJ8z4714w

[NoteToGT: Sure. PensionedOff… but StillInTheHangar, so to speak. OK, if you insist you PersnicketyPedant, you… “SortOf.” http://youtu.be/59BeWSmPkCk NoteToTylenolChallengedSlipStickSlider: That last one was for you. AGenuineHollyWoodOriginal. Do you have any idea how much StreetCred MelBlanc & FogHornLegHorn have heaped upon you? I’m betting that you do. Cue WoodyWoodPecker: http://youtu.be/1PWcc3y_NlY ]

#64 Babblemaster on 04.10.14 at 1:28 am

“Or, of course, you can do nothing. Be conservative. Wait for real estate to correct, and regret it. Wait for all the wrinklies to start panicking, and regret it.” – Garth

——————————————————–

People that waited the last few years to get into RE in anticipation of a correction are the ones that have done all the regretting.

#65 Nemesis on 04.10.14 at 3:02 am

#Optimism?YouWantOptimism!? #Yes…OfThemAllThereWereButThreeKoolChicKs #ButOneHasARanch #YeeHah!August!…

Yes, SaltyDogz… You might just have to forgo DigitalEntertainments and… purchase a a PaperBack ThisSummer.

KeepCalm&ReadOn… You’llDoubtless SurviveTheExperience…

I might not, though.

http://youtu.be/BqDjMZKf-wg

#BonusZen:

http://youtu.be/pz9G5sIS62I

[NoteToSaltyDogz&Smokin’Creatives: Where do you think ‘Fiction’ comes from?]

#66 Tony on 04.10.14 at 3:30 am

Re: #3 everyone should sell on 04.09.14 at 8:18 pm

Good advice but they should put a sizeable amount into physical gold and silver as the U.S. dollar is set to roll over and croak. Also soon the U.S. dollar will be replaced as the world’s reserve currency. This will be one of the times the precious metals mainline to the upside as the world deflates.

#67 Nemesis on 04.10.14 at 4:03 am

#ArsGratiaArtisAfterThoughts #FilmedInSiena #QuantumOfSolace #GooneyBirds

http://youtu.be/nwKbTuDcdUU

[ProductionNotes: “The Army toast their Sky Train in lousy scotch and soda… The Tommies raise their glasses high to cheer their old Dakota… Some claim the C-47’s best, or the gallant R4D… Forget that claim, they’re all the same, they’re the noble DC-3.]

#68 Buy? Curious? on 04.10.14 at 4:46 am

Yo Garth! First of all, no one cares about “north of Toronto”. You might as well said you live in Barrie because the commute is a soul-sucking length of time to be spending in a car. Those places are so far away public transit and would be hit harder in the event of multple economic waves of bad luck. So Ricky, if things go pear shaped, please come back in a few years and (if Allah makes it happen) that this delightful blog is still here and not soldout to the Huffington Post, let us know how it’s going.

#69 saskatoon on 04.10.14 at 6:48 am

#36 Aggregator

Great info..

#60 Joseph R.

“Sarcasm: the last refuge of modest and chaste-souled people when the PRIVACY of their soul is coarsely and intrusively invaded.”

#70 unbalanced on 04.10.14 at 6:48 am

I know mutual funds are disliked, but Mawer Balanced Fund has had decent track record with a low MER. This may be a easy one stop shop. Any comments.

#71 Millenial on 04.10.14 at 7:41 am

http://www.ctvnews.ca/business/young-canadians-view-home-ownership-as-good-investment-rbc-poll-1.1769430

86 per cent of Canadians aged 25-34 believe owning a house or condo is a solid investment!

#72 Luc on 04.10.14 at 8:02 am

If they have $400,000 in RRSP and $400,000 in TFSA (means they earned a lot of interest, CG and dividends with their max contribution) and have a paid for house worth $750,000. How can they have $800,000 in non-registered account when they buy a house worth $350,000, the numbers don’t had up? Should it be $400,000 TFSA plus $400,000 in principal residence sale and $400,000 in RRSP? A total of $1.2 MM plus $350,000 in a paid for house.

#73 shawn on 04.10.14 at 8:52 am

Can’t Be Helped

Joe at 41: It’s unfortunate that you can’t sue those doomer sites that have contributed to your mis-guided views.

#74 T.O. Bubble Boy on 04.10.14 at 8:55 am

@ #52 Victor V on 04.09.14 at 11:28 pm
Why you should never put U.S. stocks and ETFs in your TFSA

http://www.theglobeandmail.com/report-on-business/video/video-carrick-talks-money-why-you-should-never-put-us-stocks-and-etfs-in-your-tfsa/article17729545/
———————————–

What an over-simplified video/article… they should have clarified that they are only looking at *dividend-focused* investments.

There are plenty of US stocks/ETFs that are not focused on dividends, and therefore do not fall into the scenario that the video highlights (withholding tax on US dividends).

For example, take Berkshire Hathaway… doesn’t pay a dividend, so situation doesn’t apply. Or, a growth-focused ETFs… if they have say a 1% dividend, but grow tax-free capital gains, are you really worried about the withholding tax on the 1% dividend? You could have the max TFSA contribution of $31k invested, and a 1% dividend would be $310 per year, and the 15% withholding would be all of $46.50.

#75 Condo Minion on 04.10.14 at 8:56 am

#71 Millennial

Yep, that RBC poll is trending across media everywhere.
Quite the PR storm just in time for a late spring push.

Hey Look!

– there are some other equally credible poll results out, but getting less notice today:

“86% of Ford Nation believes there will be no more drunken stupors, wife beating or crack smoking – guaranteed!”

“86% of Leaf fans say this last 47 years has just been a blip, a Stanley Cup is dead ahead!”

“86% of Harper appointments have not been arrested for cocaine and death threats or kicked out of the Senate (in the last six months)”

“86% of climate change deniers have IQs above 65”

“86% of Toyota owners have their cars recalled”

“86% of CREA board members have Garth Turner voodoo dolls (pins in the leg, of course)

“86% of new Toronto condos have location, location, location”

#76 Angela on 04.10.14 at 8:57 am

Of course not. Buy a house now and you’re probably pooched. So don’t. — Garth

That’s only if you need to sell in the next 5 years. Price will be higher over the long run.

#77 :):(Ying Yang on 04.10.14 at 9:38 am

#68 Buy? Curious? on 04.10.14 at 4:46 am

Yo Garth! First of all, no one cares about “north of Toronto”. You might as well said you live in Barrie because the commute is a soul-sucking length of time to be spending in a car. Those places are so far away public transit and would be hit harder in the event of multple economic waves of bad luck. So Ricky, if things go pear shaped, please come back in a few years and (if Allah makes it happen) that this delightful blog is still here and not sold-out to the Huffington Post, let us know how it’s going.
………………………………………………………………………

Just returned from a business trip in London England and I can tell you that from my experiences on London and New York transit that Toronto SUCKS! The public transit in this city is terrible, Toronto is NOT a public transit friendly city at all. I consider the transit system here terrible so for all those out there that think its great go and use the system in NYC or London to see what a real transit system looks like!

#78 RVP on 04.10.14 at 9:41 am

Headline news in today’s Vancouver Sun:

“Thousands of Chinese motorists could be driving illegally in Richmond”

http://www.vancouversun.com/news/Thousands+Chinese+motorists+could+driving+illegally/9719931/story.html

#79 Trevor on 04.10.14 at 9:42 am

Hi Garth,

What is your concern with RRSPs being in mutual funds?

“The bulk of your liquid assets are in RRSPs which, of course, will be taxed as income once you retire (and I hope they’re not in mutual funds). ”

If you are not concerned about paying high non-deductible fees, then neiter am I. — Garth

#80 World Traveller on 04.10.14 at 9:46 am

#46 Smoking Man on 04.09.14 at 11:08 pm

She’s happy with the illusion and thrill,

***

Speaking about illusion, everyone of SM’s posts.

#81 Luc on 04.10.14 at 9:51 am

RBC out with a poll that supports their video campaign. What a coincidence…
http://www.ctvnews.ca/business/young-canadians-view-home-ownership-as-good-investment-rbc-poll-1.1769430

#82 Doug in London on 04.10.14 at 9:52 am

@Joe, post #22:
How timely you mention Australia. I recently came back from a vacation there, and while I didn’t check housing prices everywhere (that’s not my idea of a vacation) I’ll share some observations. One place I visited was Mount Isa, population about 30,000 in northwest Queensland. I heard some locals say house prices were quite high there, and have gone up a lot in recent years. In Alice Springs I walked by a real estate sales office and had a look at prices. They seemed outrageously high for a place also of about 30,000 people in the middle of the outback, and no major industry. I’ve also heard a lot of talk of outrageously prices in Sydney. These observations are anecdotal, but suggests Australia has a real estate bubble like in Canada. As I’ve heard and read many times, these dirt cheap interest rates have caused a lot of money to flow into real estate in both countries.

#83 GTA Engineer on 04.10.14 at 10:18 am

Garth,

Can you share what institutions are offering HELOCs at prime? I’m renewing my mortgage and my broker tells me (as do all the rate sites) that the best on offer is prime+0.5%. Very interested to hear if you know otherwise. Thank you.
——————

No response? I guess the MSM aren’t the only ones making up data..

Every major bank offers HELOCs at prime. It’s the quality of the borrower that determines the rate. That should be self-evident. — Garth

#84 Not Impressed with Smoker on 04.10.14 at 10:26 am

#24 Smoking Man on 04.09.14 at 9:43 pm
15 Holy Crap Wheres The Tylen on 04.09.14 at 8:58 pm
#149 Smoking Man on 04.09.14 at 4:34 pm
You still don’t get it Smoking Man! E = MC 2 has nothing to do with the biological interaction of your neurons.
…………..
Dude you keep interrupting my marathon viewing of true detective and my essay on what really happened to MH370
Complete report on my blog some time this week. It ain’t in the Indian Ocean… I would post it here but already 3000 words and growing fast.
So if you want to know the true meaning of E=Mc2
Follow the link below… And stop bugging me for a couple of days..
My science is settled…
http://dyslexicsmokingman.blogspot.ca/2013/11/the-shear-lunacy-of-science-and.html?m=1

++++++++++++++++++++++++++++++++++++
Wow I checked out your link. Where did you go to school dude, and what are you on medication wise! I bet you are one of those guys that believe that no one made it to the moon.
Here’s a page dedicated to you!

http://www.physics.smu.edu/scalise/www/misc/crackpot/

#85 Beltline Renter on 04.10.14 at 10:38 am

money for 25 years after 65?

my grandfather dropped dead at 62 and my father at 65.

i’ll be lucky to see 70.

i think i’ll gamble on my genes.

#86 Ronaldo on 04.10.14 at 10:47 am

#58 Jane24 –

”That old house with its high energy bills was really just a big expensive box to house our stuff.”

Couldn’t have said it better.

#87 Dan on 04.10.14 at 10:51 am

Of course not. Buy a house now and you’re probably pooched. So don’t. — Garth

You’ve been pretty wrong so far in regards to RE prediction.

So, buy. See what happens. — Garth

#88 robert james on 04.10.14 at 11:08 am

Anybody buy V. PTK that little known .46 stock I was talking about? If you are still thinking about it, it might be an idea to buy before April 28.. It will be better known after this.. http://www.empireclub.org/events/poet-technology/

#89 Marty Mcfly on 04.10.14 at 11:10 am

Can you blog dogs help me out. I m looking to move to a new area for my kids sake thou the prices are about $100k higher for the same home. I have $340 to put down on a $630K budget. To rent the homes are about $22-2400/mth. any imput would be helpful. I am 40 years old.

#90 Dan on 04.10.14 at 11:15 am

So, buy. See what happens. — Garth

I am 300K richer already since I bought my house in 2009. There is now way that gain will evaporate. I see steady RE growth for then next 25 years.

Until you sell and pocket the money, you have made nothing. — Garth

#91 Dean Mason on 04.10.14 at 11:32 am

People that have seen the movies Pacific Heights and The Money Pit know how putting all your money and being deep into debt with real estate can devastate anyone financially at the very least.

People are going to learn the hard way if they don’t take this last chance to get out while they can.

#92 Blase on 04.10.14 at 11:32 am

Dan, you are suffering from an acute case of recency bias. Consult a mechanic immediately to replace your rearview mirror!

#93 shawn on 04.10.14 at 11:34 am

Until you sell and pocket the money, you have made nothing. — Garth

Respectfully, that is bunk. I won’t bother to argue why, it’s self evident in my view.

It’s often used as an excuse by people who resent others that have made market value gains on houses or stocks or gold or Rembrants. Yeah, it’s bunkum.

Sorry, but this is one case I must disagree with our host.

Shall we have an opinion poll of the readers here? (Disclaimer I won’t be swayed by what others think about this, but it would be entertaining)

Not bunk at all on assets that pay no income, carry inherent costs, have an inefficient market plus staggering exit fees. That is why real estate wealth is unlike financial asset wealth. Surely you know that. — Garth

#94 Dr. Wu on 04.10.14 at 11:36 am

Are people still debating the Apollo fraud? I call it a massive transfer of wealth. Buz Aldrin was prone to punching anyone who confronted him with doubts. Buz maintained that when he was sober he flew to the moon and back in a rocket. Believe it or Not!

http://davesweb.cnchost.com/Apollo1.html

#95 jess on 04.10.14 at 11:37 am

Hewlett-Packard
33.4 b. amount held offshore
22 – number of tax haven subsidiaries

http://uspirg.org/sites/pirg/files/reports/Offshore_Shell_Games_USPIRG.pdf

Press Release
Hewlett-Packard Russia Agrees to Plead Guilty to Foreign Bribery

HP Russia,Poland Mexico

“Hewlett-Packard subsidiaries created a slush fund for bribe payments, set up an intricate web of shell companies and bank accounts to launder money, employed two sets of books to track bribe recipients, and used anonymous email accounts and prepaid mobile telephones to arrange covert meetings to hand over bags of cash,” said Deputy Assistant Attorney General Swartz.

http://www.justice.gov/opa/pr/2014/April/14-crm-358.html

#96 Aggregator on 04.10.14 at 11:38 am

Condo developers start 2014 with record number of launches

Developers are so optimistic that confidence has returned to the condo market, they’ve launched sales of a record number of new units — more than 2,700 — in January and February alone.

And more are planned, with new project launches scheduled unusually late, into May, as builders see a surge of pent-up demand after the downturn of the last two years, especially for condos close to the Toronto core.

Those 2,721 new units are in eight projects, according to figures from research firm RealNet Canada, which will release March launch numbers later this month. That exceeds the 2,394 units in nine projects launched in January and February of 2011, the record year for condo sales.

And now time for reality (Chart) as developers resort to lying about market conditions in order to dump their inventory (including units they manage on behalf of global investors that have already lost money) and a few remarks from former Fed chair, Ben Bernanke, about what he really thought pricked the US bubble.

Bernanke said he could now speak more freely about the crisis than he could while at the Fed – "I can say whatever I want" – and in remarks to over 1,000 bankers and financial professionals in the capital of the United Arab Emirates, he made clear that he had regrets.

The United States became "overconfident", he said of the period before the September 2008 collapse of U.S. investment bank Lehman Brothers. That triggered a crash from which parts of the world, including the U.S. economy, have not fully recovered. link

Whenever you see that type of confidence or eurphoria, is exactly when you should be selling and running out of the market.

#97 april on 04.10.14 at 11:45 am

#87 – Dan. Garth has not been wrong. Sellers are already loosing as many homes are not selling for what they did a couple of yrs ago. Your just not hearing about it, or your only hearing what you want to hear.

#98 kommykim on 04.10.14 at 11:48 am

RE:#70 unbalanced on 04.10.14 at 6:48 am
Any comments.

The Mawer Balanced Fund is one of the better MFs. The only cavet with them is you need a discount brokerage to buy them ($5000 minimum) or a $50,000 minimum if you want to deal direct with Mawer.
The MER at 0.78% is not a bad tradeoff for simplicity.

#99 april on 04.10.14 at 11:50 am

#76 Angela. No one really knows when they’ll “need to sell’. As prices are now falling across Canada it will take along time to reach bottom and selling in 5 yrs will mean selling at a loss.

#100 april on 04.10.14 at 11:56 am

#71 – I wouldn’t believe anything that’s said by anyone who makes money from RE or selling mortgages. Besides that age group are mostly uninformed and gullible.

#101 Paul on 04.10.14 at 12:06 pm

#90 Dan on 04.10.14 at 11:15 am

So, buy. See what happens. — Garth

I am 300K richer already since I bought my house in 2009. There is now way that gain will evaporate. I see steady RE growth for then next 25 years.

Until you sell and pocket the money, you have made nothing. — Garth
———————————————————-Now Garth
why did you have to go and say something like that.
lol

#102 Godth on 04.10.14 at 12:13 pm

Is the US or the World Coming to an End?
It will be one or the other

http://www.paulcraigroberts.org/2014/04/09/us-world-coming-end-paul-craig-roberts/

#103 Vamanos Pest on 04.10.14 at 12:43 pm

#89 Marty Mcfly

The historical norm for a price to rent ratio (the rent cost per year over the price of the home) is ~15. So a ratio of less than 15 would imply it’s a better deal, historically, to buy. The price to rent ratio in your situation, even assuming 2400/month rent, is about 22. That number quite clearly indicates renting is the better choice.

If an owner actually paid 630,000 to rent out for 2400 per month, net of property taxes and maintenance, even assuming the rental is occupied 100% of the time, said owner would struggle to make 4% on the money, and may very well be cash flow negative month-to-month (unless the down payment was larger than average, but this would increase the opportunity cost of the investment). This owner is subsidizing the lifestyle of the renter, not profiting from it.

This situation, from a pure money management perspective, is an easy call: rent.

From a lifestyle perspective: hey, it’s your money.

#104 LaparoscopicPoetry on 04.10.14 at 12:48 pm

#90 Dan

Until you sell and pocket the money, you have made nothing. — Garth

Don’t worry, all the wrinklies invested in Berkshire Hathaway stock have made nothing either. And apparently some of them have been suckers for decades.

Income, plus capital gains from rebalancing. — Garth

#105 Vamanos Pest on 04.10.14 at 12:56 pm

#87 and #90 Dan

If you actually listen to Garth’s advice, rather than over-simplify it to “real estate is bad”, then he’s been spot of since you bought your home. Garth’s advice, more accurately, although still over simplified, has been that most people would be better off not owning a home, renting, and putting that capital into more productive assets. For exampe, in the last 5 years (to the day) the S&P 500 is up 223%. A more diversified portfolio, like mine, is up ~170%. Is your return on investment on the house 170%

No?

Damn. Should’ve listened to Garth.

#106 :):(Ying Yang on 04.10.14 at 12:59 pm

#80 World Traveller on 04.10.14 at 9:46 am
#46 Smoking Man on 04.09.14 at 11:08 pm
She’s happy with the illusion and thrill,

***
Speaking about illusion, everyone of SM’s posts.

……………………………………………………………………….
Smoking Man whats up with the bashing today! Were you deleted?

Just got back from business in London where my colleges are all yapping about the boom in housing prices. We export Mark Carney as their new governor to the bank of England and BOOM!

http://uk.reuters.com/article/2014/04/10/uk-housing-market-idUKBREA3823X20140410

#107 ozy - what happened with SUCCESS STORIES material? on 04.10.14 at 1:02 pm

What happened with SUCCESS STORIES material?
Why are we mocking here the one that bought in 2009, 2012, etc and saved hundreds of thousand on their mortgage, compared with ones that buy today? And that live decently, compared with their living standards before (aka. reffering to building -shared -washers and dryers and cockroach infested rentals, and fear of bed bugs like a sword above their heads)

When is that article coming? or at least the CALL for material….I would like to contribute.

#108 shawn on 04.10.14 at 1:02 pm

Until you sell and pocket the money, you have made nothing. — Garth

Me: That’s Bunk

Not bunk at all on assets that pay no income, carry inherent costs, have an inefficient market plus staggering exit fees. That is why ral estate wealth is unlike financial asset wealth. Surely you know that. — Garth

*****************************************
Okay, I thought maybe you were including that statment for assets like stocks.

I agree the increased wealth in a house is uncertain and must account for a realistic sale price minus costs to sell. Still, if people have big gains on their house, that is largely a very real gain in wealth. It’s unrealised and it’s subject to risk but it is real.

#109 Bottoms_Up on 04.10.14 at 1:04 pm

#97 april on 04.10.14 at 11:45 am
—————————————
No, it’s all based on location. You’ve lost money if you bought in Edmonton or Brockville in 2009, but gained money if you bought in Toronto or Vancouver. It’s all local.

#110 Holy Crap Wheres The Tyenol on 04.10.14 at 1:08 pm

#97 april on 04.10.14 at 11:45 am
#87 – Dan. Garth has not been wrong. Sellers are already loosing as many homes are not selling for what they did a couple of yrs ago. Your just not hearing about it, or your only hearing what you want to hear.
_______________________________________________

Location, location, location people. Most areas will see down, Toronto up!

#111 Bottoms_Up on 04.10.14 at 1:08 pm

#93 shawn on 04.10.14 at 11:34 am
—————————————
I think Garth has a point.

I may have ‘made’ 100k on my house, but it might not sell for the price I think I can sell it at. Hell, it might not even sell at all (CMHC pulls the plug, or requires higher dp). So, as I sit and wait for my ‘sale’, I have property taxes to pay, things to repair, and it is costing me money.

I eventually sell for what I paid for, made no money, and in fact lost money on taxes, upkeep and exit fees.

That’s not hard to understand.

#112 Bottoms_Up on 04.10.14 at 1:11 pm

#89 Marty Mcfly on 04.10.14 at 11:10 am
——————————————-
Let the P/E ratio guide you. Don’t pay more than 16-18x what 1 year’s rent would be.

So for you that is 420k to 520k, based on market rents of 2200 to 2400. Anything more and you’re likely overpaying for the house.

#113 Smoking Man on 04.10.14 at 1:27 pm

#84 Not Impressed with Smoker on 04.10.14 at 10:26 am
http://dyslexicsmokingman.blogspot.ca/2013/11/the-shear-lunacy-of-science-and.html?m=1

++++++++++++++++++++++++++++++++++++
Wow I checked out your link. Where did you go to school dude, and what are you on medication wise! I bet you are one of those guys that believe that no one made it to the moon.
Here’s a page dedicated to you!
#######$$$$$$$$#####

I currently attend 3 Universities UOY, UOB, UOG. As far as meds go, Oxygen, tar nicotine with a bit of fomented grape juice and the odd sips of Tennessee bourbon.

Your categorizing of me with other critical thinkers is taken as a huge complement. Thank you.

 
I’m thinking you’re a teacher, and my teacher trap has captured you and put you in the light of public debate.

Now my theory on shrinkage is a viable counter to the junk and hypothetical  arguments put forward by main stream science. If you can come up with a better explanation to the following contradictions I may elevate my perception of you from a single cell organism to a fire ant.

Science says to move a grain of sand to the speed of light it would require almost all the energy in the universe, yet in the next breath they expect me to swallow that galaxies are moving away from each other, and the further you go the faster they move away from each other. In fact at 13 billion light years out galaxies are moving close to the speed of light. Any idea how mush a planet weighs let alone an entire Galaxy. The say the speed is related to the distance from ours, closer they are the slower they move away. This suggests that earth, the little blue marble is the center of the Universe.

My little diagram dummied down so the schooled could understand has the answer.

Beat that, teacher.

If you can come up with a better explanation to the following contradictions I may elevate my perception of you from a single cell organism to a fire ant.

And remember :

Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth.Marcus Aurelius…..

 

#114 joblo on 04.10.14 at 1:32 pm

Sell the BIG house, Invest funds in Non reg balanced portfolio.
Buy Downsized for $350K and finance with SDRRSP mortgage invest payments.
You pay yourself and pay down the house at same time.

#115 Old Man on 04.10.14 at 1:41 pm

#105 Ying Yang – oh please enough with Mark Carney the wonder boy called Nancy. He lied to Canadians about moving to England, and all he ever did was follow orders issued from high above. Mark was a good puppet who followed orders well, but it was time for a new assignment from his masters.

#116 Dupcheck on 04.10.14 at 1:48 pm

@#27 Joe,

Hey Joe you must be italian or a gold bug.
Do not be ignorant.

#117 Dan on 04.10.14 at 2:02 pm

#97 april

That is not happening in North York and Lawrence Park. And I doubt RE price is lower in other urban area in Toronto. Detach = Gold. Financial Investment = Bonus

#118 not 1st on 04.10.14 at 2:03 pm

#112 Smoking Man on 04.10.14 at 1:27 pm

SM, put down the crack pipe and please remove Rob Ford from your speed dial.

Your understanding of the cosmos is as limited as your political views. The galaxies are not moving away from each other, the space they inhabit is expanding just like blowing up a balloon. So no matter is being accelerated to the speed of light at the edge of our universe, the edge of the universe (i.e space) itself is.

#119 T.O. Bubble Boy on 04.10.14 at 2:12 pm

wow – Jim Flaherty died… I definitely didn’t agree with most of his decisions, but sad news nevertheless.

#120 Condo Minion on 04.10.14 at 2:13 pm

Jim Flaherty gone.

Notwithstanding any disagreements on policy and such talk that has filled these boards, RIP. He had obviously been suffering.

Condolences to his family.

#121 Hawk on 04.10.14 at 2:13 pm

#43 Joe on 04.09.14 at 10:50 pm

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

Its very rare when good quality shares i.e. the type of corporations with a solid long term “business models” and reputations become worthless.

Some examples are Coca Cola, McDonalds, Daimler, Microsoft, Colgate, Tesco, Unilever, Nestle etc etc.

These corporations are not likely to disappear overnight and are quite probably even a safer bet than many hard assets.

If you want to minimize risk avoid financial institutions and trading companies which are filled with the criminal banker / broker classes.

#122 Calgary Boomer on 04.10.14 at 2:15 pm

Just read in Calgary Sun that Jim Flaherty dies, then quickly changed to gravely ill. No other reports on this yet elsewhere

#123 Smoking Man on 04.10.14 at 2:17 pm

F IS DEAD

#124 Calgary Boomer on 04.10.14 at 2:22 pm

And now back to “dies” with the story. RIP

#125 Ralph Cramdown on 04.10.14 at 2:27 pm

He’s dead. Jim.

#126 Victor V on 04.10.14 at 2:28 pm

Sadly…Jim Flaherty has passed away. RIP.

http://news.nationalpost.com/2014/04/10/jim-flaherty-has-died-sources-say-paramedics-outside-former-finance-minsters-condo/

#127 gladiator on 04.10.14 at 2:30 pm

Flaherty died?

#128 Bottoms_Up on 04.10.14 at 2:35 pm

Condolences to F’s family, friends, colleagues and Canadians.

#129 tex on 04.10.14 at 2:36 pm

Condolences to Jim. Surprising news today.

#130 Fortune500 on 04.10.14 at 2:36 pm

Breaking

http://www.cbc.ca/news/politics/jim-flaherty-former-finance-minister-dead-at-64-1.2605728?cmp=fbtl

#131 tex on 04.10.14 at 2:36 pm

Condolences for Jim. Surprising news today.

#132 Holy Crap Wheres The Tylenol on 04.10.14 at 2:37 pm

Former finance minister Jim Flaherty has just passed away!

#133 Sotiri on 04.10.14 at 2:40 pm

Former Finance Minister Jim Flaherty dead at 64

https://ca.news.yahoo.com/former-finance-minister-jim-flaherty-dead-at-64–report-181840478.html

#134 Waterloo Resident on 04.10.14 at 2:41 pm

Oh wow, Jim’s gone!

#135 tkid on 04.10.14 at 2:41 pm

My condolences to Jim Flaherty’s family and friends. I did not know him, but I had a great deal of respect for him.

#136 Not Impressed with Smoker on 04.10.14 at 2:43 pm

#112 Smoking Man on 04.10.14 at 1:27 pm

Not a teacher. As for your shrinkage, well that’s your own personal problem to discuss with your wife.

BTW right back at ya!

And remember :

Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth.Marcus Aurelius…..
BOOM!

#137 World According To Garth on 04.10.14 at 2:45 pm

Yup. The thugs in boots will certainly have to make a choice after 2015.75 as to whether they support the govt or the people. Gee that’s in little over a year from now. And of course the main slime media does not cover it.

http://armstrongeconomics.com/2014/04/10/economist-asks-police-or-soldiers/

#138 Holy Crap Wheres The Tylenol on 04.10.14 at 2:51 pm

So saddened at news of Jim Flaherty’s passing. My deepest sympathies to his family and friends. A genuinely likeable, widely respected man.

#139 Truth be told on 04.10.14 at 2:53 pm

Its strange that many of you are sad….

Yet just a few months ago you all hated “F” to the max.

Make up your mind bears. Its laughable really.

#140 airhead princess on 04.10.14 at 3:01 pm

CBC lay offs….”no longer competing with the private sector’….bwahahahahahahahahahahah

http://www.bnn.ca/News/2014/4/10/CBC-cuts-650-jobs-will-not-compete-for-rights-to-sports-coverage.aspx

Since when was a monoply and the bottomless tax payer pocket ‘competition’?

650 layoffs is not enough….close the doors and sell the property…….they all have to go….’private’

#141 jan on 04.10.14 at 3:06 pm

#138 Truth be told on 04.10.14 at 2:53 pm
Its strange that many of you are sad….

Yet just a few months ago you all hated “F” to the max.

Make up your mind bears. Its laughable really.

Me – you’re moron and, please don’t procreate !!!

#142 JL on 04.10.14 at 3:07 pm

This guy should definitely sell and downsize. Way too much risk in the Toronto market to justify holding for 10 more years.

I debate Garth all the time, mostly on calgary Buy vs Rent debates, but this is a no brainer. Sitting on that much equity is insane.

#143 Ronaldo on 04.10.14 at 3:08 pm

Extremely sad to hear of Jim Flaherty’s passing. My thoughts go out to his family.

#144 SRV on 04.10.14 at 3:10 pm

F :-(

His departure was so sudden it had to be health related… class move for such a public man to keep it private.

RIP, and condolences to loved ones.

@Truth be told… grow up

#145 gut check on 04.10.14 at 3:12 pm

#138
Your post displays your utter lack of development as a human being

#146 Enthalpy on 04.10.14 at 3:14 pm

RIP F. May your financial instrument lead us all to prosperity!

#147 Ry YYZ on 04.10.14 at 3:16 pm

#78 RVP on 04.10.14 at 9:41 am

I wonder what’s actually involved in getting licensed to drive in China? The videos I’ve seen of driving habits in China don’t fill me with confidence. Then again, our licensing standards are also a joke, judging by the driving “skills” exhibited by many road users. Our lax standards may have made more sense when there were far fewer cars competing for the same space, but driving in places like Toronto, Montreal, Calgary, Edmonton, or Vancouver demands (or should, anyway) skilled drivers.

#148 Spiltbongwater on 04.10.14 at 3:20 pm

I will eat my bacon and eggs with my fingers tonight in honour of F.

#149 Fortune500 on 04.10.14 at 3:21 pm

#138

Sorry if your concept of people on here is so off. Terms like ‘bears’ and ‘doomers’ make it easy to discount and ignore the balanced arguments presented on this blog that do not fit your understanding of the world. The truth is, most on this site are intelligent, reasonable individuals with a great deal of insight and compassion.

I might have disagreed with F’s policies, but I am Canadian, and deep down, I have respect for someone who would devote their lives to public service for this country. Disagreement is an important part of democracy, but it does not make us inhuman. He has died too young, left a family behind, and deserves respect.

#150 T.O. Bubble Boy on 04.10.14 at 3:21 pm

@ #138 Truth be told on 04.10.14 at 2:53 pm
Its strange that many of you are sad….

Yet just a few months ago you all hated “F” to the max.

Make up your mind bears. Its laughable really.

—————————-

You can still have empathy for someone dying, even if that person is a hack politician.

If Rob Ford OD’ed tomorrow, you’d still feel bad for his wife & kids, even though he is a horrible Mayor and person.

#151 T.O. Bubble Boy on 04.10.14 at 3:22 pm

(empathy for the family – clearly not going to know what he’s feeling)

#152 gladiator on 04.10.14 at 3:25 pm

@138 Truth be told:

it would be pretty stupid and inhuman to dance and jump for joy that F is dead.
Regardless of how much we hated him, and how much we will now hate his legacy, he passed away and it’s normal to at least not say anything bad about him.
RIP Jim.

#153 Nemesis on 04.10.14 at 3:25 pm

#ComicRelief #FuturologyUnpacked

@SOP57&RVP78…

On the BrighterSide… “CouldBeWorse”; e.g. – Mianzhu village in Sichuan province, China – where…

[SCMP] – Doting Chinese dad builds three-tonne working tank… for his six-year-old son

http://www.scmp.com/news/china/article/1473591/doting-chinese-dad-builds-high-powered-tank-six-year-old-son

…&Today’sBestThink[NotDrink]Piece…

[NewStatesmen] – Why futurologists are always wrong – and why we should be sceptical of techno-utopians: From predicting AI within 20 years to mass-starvation in the 1970s, those who foretell the future often come close to doomsday preachers.

…In 1752, Dr Johnson mused that our obsession with the future may be an inevitable adjunct of the human mind. Like our attachment to the past, it is an expression of our inborn inability to live in – and be grateful for – the present.

“It seems,” he wrote, “to be the fate of man to seek all his consolations in futurity. The time present is seldom able to fill desire or imagination with immediate enjoyment, and we are forced to supply its deficiencies by recollection or anticipation.”

http://www.newstatesman.com/culture/2014/04/why-futurologists-are-always-wrong-and-why-we-should-be-sceptical-techno-utopians

#154 VICTORIA TEA PARTY on 04.10.14 at 3:28 pm

JIM, HE WILL BE REMEMBERED

He seemed like a tough but likeable chap, as he parried with fellow pols and those gnat-like hacks of the Press Gallery in Ottawa, during interminable budget presentations in the House of Commons and afterwards.

A finance minister’s job can never be a totally happy experience. Oxen always wind up being gored, and other oxen that should have been done away with, sometimes got away with it one more time! Special interest groups are such a plague.

The following accomplishments of Mr. Flaherty’s get a mixed review from me: he should not have trashed the royalty trusts; implementing the TFSA (invented by Garth) was a stroke of obvious brilliance; fiddling with mortgage rates in 2008, etc., was a bad idea but still better that launching into unstoppable QE’s; not reining in government budgets until two fiscal years ago was also a mistake.

But in the end I must, as a taxpayer and citizen, excuse it. Why? Because Canada is still a bit player on the world’s financial stage, small spuds.

Living next door to the sick-as-all-get-out US empire and its still wheezing economy, must have provided many sleepless night for this great Canadian statesman. Could you have done better?

God be with you Jim. Condolences to his family and friends.

#155 jan on 04.10.14 at 3:31 pm

Christy Clark just reacted on Global on the news of Jim’s passing.
Zero emotion, just cold calculated complementary commentary.
I guess its fair to say I DON’T LIKE OR TRUST HER.

#156 Sheane Wallace on 04.10.14 at 3:32 pm

Jim Flaherty passes away., RIP and may god have mercy on your soul.

Who will take the blame for the CMHC now is my worry.

#157 chapter 9 on 04.10.14 at 3:39 pm

Well Rick, you are getting into that zone “where you have more history than future” dump the house while you can and cash out.
#102 Godth
outstanding article!! Too bad mainstream media is on the take!!!

#158 ILoveCharts on 04.10.14 at 3:43 pm

RIP Jim and condolences to your family. There are many who disagreed with your policies but no one can question the time you gave to this country to serve your fellow citizens and it’s very sad to see that you won’t be able to enjoy that time away from politics that you were looking forward to.

#159 Sheane Wallace on 04.10.14 at 3:48 pm

#153 VICTORIA TEA PARTY
……………………………………
Could you have done better?

Yes.

#160 Dupcheck on 04.10.14 at 3:50 pm

What? Mr. Flaherty passed away. That is sad he did not even enjoy his pension. Condolences to his family.

#161 Shawn on 04.10.14 at 3:50 pm

Jim Flaherty

This is shocking news. Very sad for his family.

I am going to try to use this as a wake-up call that life can be short. Too short to spend time doing things that I am less passionate about.

For me a reminder to get more exercise, and generally look after myself better and attend to medical check ups.

#162 Cici on 04.10.14 at 3:51 pm

Rest in peace Jim, terribly sorry to hear of your passing.

May you be good with God, and may your spirit watch over and protect your wife and sons.

Didn’t always agree with the way you managed the economy, but at least you did manage it, and managed to contain the worst while in office.

#163 Old Man on 04.10.14 at 4:01 pm

They are all leaving one way or another and RIP Jim Flaherty and my personal condolences to your family members. But let us never forget those who rigged the Canadian economy out of intent to steal an election so Caesar could reign. It was a plan to make the economy roar; creating a false reality; obtaining votes from fools; and giving Caesar his bragging rights that under his leadership all would prosper. It worked, but at the expense of most Canadians going forward towards a reality of debt with no happy ending.

#164 Holy Crap Wheres The Tylenol on 04.10.14 at 4:04 pm

I currently attend 3 Universities UOY, UOB, UOG.

Smoking Man what University’s are you attending currently? The only one I can figure out is University of Guelph? Hell I could only handle one university back in the sixties and it was enough for me thanks!
Good luck with your courses.

#165 jan on 04.10.14 at 4:06 pm

#155 Sheane Wallace on 04.10.14 at 3:32 pm
Jim Flaherty passes away., RIP and may god have mercy on your soul.

Who will take the blame for the CMHC now is my worry.

Me – moron alert
Second one in the last 1/2 hour.
Let me ask you this, what is the humidity level of your rented basement ??????

#166 Sheane Wallace on 04.10.14 at 4:17 pm

164 jan

……………………………..
I was being very polite. I tried to cry but I could not.
If you don’t like it take a hike.

If one needs to express condolences to all victims of the financial policies in the last years individually one’s life will not be enough.

#167 MM on 04.10.14 at 4:23 pm

#147 Spiltbongwater on 04.10.14 at 3:20 pm
I will eat my bacon and eggs with my fingers tonight in honour of F.
———————-
And you will die of a hart attack too because that is high percentage cholesterol

#168 Smoking Man on 04.10.14 at 4:24 pm

Like I always try and tell you dog…

Why race to a red light…. Shalala live for today… Rip Jimbo.

Years of public service, about to go to private sector make serious loot. The Boom..

Taken out by the random life death engine….

Tylenol.
UOG= University of Google
UOY =University of Yahoo
UOB=University of Bing

#169 learningfromyou on 04.10.14 at 4:32 pm

I wonder why the human nature tends to flame in the unpersonalized environment like Internet and without any mercy criticize those dead or alive.

It’s like the way to be yourself at least for a moment, like those that cover her body in the country’s lakes but want to be naked and crazy drunk in a Caribbean beach where nobody knows you.

How many of those critics will have the guts to take big decisions in a similar o better ways than their victims?

I come to this blog to grow financially and personally, to learn the good things from those who want to share real knowledge, to make a difference in my life and teach my family the right way.

Whatever the future reserves for our actions depend on our own decisions, financially and personally, it will never depend on our job, manager, politician or country because at the end all of us have had the choices to make. Nobody forced you to do anything.

Maybe F tried to do his best on his way, you like it or not, if it’s the later then swallow it even if it’s hard to do it and keep going in your life.

Rest in peace Mr F, even if I disagreed in some of your decisions, I do not even know if mines are better than the ones you took, at least I have the lack of knowledge.

In life everything is true or false depending in your believes and situation at the moment of doing your analysis.

#170 TrumpVu on 04.10.14 at 4:40 pm

RIP F – Anyone recommend a good Irish Whiskey.

Didn’t agree with the 0/40 and CMHC stuff but try and show a little class

#171 Happy Renting on 04.10.14 at 4:46 pm

Shocking news, F’s passing. I don’t remember heart troubles ever being mentioned (and it’s only speculation that it was a heart attack), but I didn’t have the impression that his health problems were quite so dire. Sixty four is pretty young to be checking out. My sympathies to his family.

I was remarking today to my spouse that life can have many unexpected turns. Not so long ago I was overly preoccupied with career and money. I hope F enjoyed the past few weeks smelling the roses and spending time with his family. We should all make a point to spend some time doing the same.

#172 BigM on 04.10.14 at 4:47 pm

RIP F.

Another man who never gets to enjoy retirement.

Condolences to the family.

#173 Sheane Wallace on 04.10.14 at 4:47 pm

And I absolutely meant no disrespect for Jim.

RIP.

#174 Jamaican_gal on 04.10.14 at 4:48 pm

RIP, Mr. Flaherty. You probably did the best you could with what you had to work with…possibly under duress, too. My prayers to your family.

#175 devore on 04.10.14 at 4:53 pm

#112 Smoking Man

Everyone who has read your post (and even worse, your blog) is now stupider from their brain cells facepalming themselves repeatedly.

You’ve perhaps heard of the expanding balloon analogy, which easily shows all points moving away from a reference, without the reference itself being in the center? I’m surprised someone with your supposed lateral thinking abilities can’t grasp the concept.

Sometimes reading a book can make you smarter.

#176 espressobob on 04.10.14 at 4:55 pm

Jim Flaherty, RIP.

#177 Gainsaywhodare on 04.10.14 at 4:56 pm

Wow.

RIP elfin deity pixie dust. That’s unbelievable.

Garth, I think you owe him an article now. Tomorrow.

#178 TrumpVu on 04.10.14 at 5:05 pm

We are hooped.

http://www.cbc.ca/news/business/young-canadians-increasingly-upbeat-about-home-ownership-survey-shows-1.2605866

Still hope for some boomers I suppose

#179 some like it hot on 04.10.14 at 5:06 pm

Some action on the stock market today.

Gold up.

Black Friday tomorrow?

#180 Mixed Bag on 04.10.14 at 5:07 pm

RIP Mr. Flaherty. I never knew you, but for some reason just liked you, you seemed to stand out as a good person. My sincere condolences to your family and friends.

#181 Dual Citizen In Canada on 04.10.14 at 5:21 pm

#112 Smoking Man on 04.10.14 at 1:27 pm
On SM’s theory of everything…
“What you have just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this room is now dumber for having listened to it. I award you no points, and may God have mercy on your soul” – The Prinicipal from Billy Madison

#182 Tony on 04.10.14 at 5:49 pm

Re: #178 some like it hot on 04.10.14 at 5:06 pm

If there is a black Friday and blue Monday expect both gold and silver to get absolutely hammered to the downside due to margin calls on stocks, options and futures. Much the same way copper fell due to margin calls and rebounded strongly a few days later.

#183 bdy sktrn on 04.10.14 at 6:42 pm

If there is a black Friday and blue Monday expect both gold and silver to get absolutely hammered to the downside due to margin calls on stocks, options and futures.
————————
cdn cash not looking so bad lately

glad i’m mostly in van dirt patches.
if someone was up 1m in RE , and it could be sold in a week, do they have nothing until they sell?