Fakes

FAKE modified

I realize this is hard to believe. But sometimes realtors lie. Real estate boards revise statistics when they think nobody’s looking. Big outfits like Re/Max and Royal LePage publish ‘reports’ with zero methodology. Agents routinely relist pooched houses so they hit the market as fresh. And the most brazen house-floggers even try to dupe the media. Which is none too hard.

A famous case is rattling the industry in Vancouver (you can read all about it on the Whispers blog). Of course. Where else? The dorks who run MAC Marketing, a bunch of vigilantes usually hired to flog condo developments, outdid themselves during the Chinese New Year last year when network TV cameras were invited to the grand opening of a new building called Maddox.

Two comely babes were introduced to the gullible reporters as sisters who were shopping for condos which their wealthy parents from Mainland China would soon be buying for them. It was perfect. It hit all the buttons. Hot Asian Money. Giggly girls buying real estate like pots of liquid lip liner. Foreigners pushing out the locals. Endless gobs of offshore money promising ever-higher prices. And, of course, a sexy hot building destined to brim with monied pulchritude.

Below are the “sisters.”

SISTERS modified

The news items went to air. A breathlessly horny city lapped it up. And, in the afterglow, it was all proven to be fake. There were no Chinese condo-snorfling sisters and no rich parents. Just two MAC Marketing employees pretending to be buyers, and another employee pretending to sell them units.

Buried in complaints, the Real Estate Commission of BC was ultimately forced to look into the event. The outcome was never in question. It was marketing fraud. Somebody’s orifices had to run red. And the unlucky guy turned out to be Nic Jensen, who was managing the condo presentation centre that day. His penalty: no selling real estate for two weeks, and a $1,200 fine.

Huh? For overseeing a complete and total ethical breach? For orchestrating a lie that was subsequently seen by hundreds of thousands of people? For trying to influence market conditions and sell product under false circumstances? For pissing off Global?

Obviously the penalty did not fit the crime. It begged more realtor justice. They could have revoked his vanity license plate or banned him from reality television. But that would have been just too cruel.

However, besides the fake buyers and the media manipulation, the Sisters Affair has raised some other questions. Like, why was the manager punished personally and the company behind it all wasn’t? How come the two employees who falsely identified themselves as buyers weren’t also nailed? How about the other employees who joined the masquerade, pretending to help the sisters pick out two-bedroom units?

The answer, says the real estate cop agency, is simple. All those people are just employees, not licensed realtors. Therefore they’re not subject to disciplinary action. Bug off.

I now hear that the outstanding blog, Whispers from the Edge of the Rainforest, and the mag Business in Vancouver are vaguely apoplectic about all of this, believing it’s outrageous that unlicensed, unregulated and apparently unethical employees of a marketing company are actively selling condos to ordinary schmucks at pre-build presentation centres. But they are. And there’s no law preventing it, in BC or Ontario.

Sayes the Whispers top dog: “I believe this is an astonishing revelation and that real estate industry is failing to protect Canadians from a massive potential for abuse here. The only people who should be allowed to show, market, or otherwise promote condos at a real estate pre-sale centre should be licensed realtors bound by their professional code of conduct.”

Well, duh.

It’s wrong, and it’s also standard practice.

Says one senior executive working for a major Toronto-based developer: “You can work for a builder as a sales representative and sell homes legally in Ontario if you are hired as an employee of the organization. However, most builders prefer to hire a 3rd party sales organization which provides salespeople. Benefits do not have to be paid by the builder who subsequently saves money and liability.”

Now, look at the picture below, published here some days ago:

SHOPPING

Those people are at a sales presentation centre for new houses north of Toronto, with some of them spending well over $1 million, and doing it in an average time of about 15 minutes. Closing the sales – which are legally binding, firm and require on-the-spot deposits – are sales associates who may or may not be trained, licensed, regulated or even registered. Do you think the buyers realize that?

Of course, we all know people who flock to a developer’s pre-construction event to buy imaginary real estate from fuzzy drawings and compete to have red dots put on a board are fools. But now we know more. It’s all fake. Except the regret.

118 comments ↓

#1 TurnerNation on 07.01.14 at 6:15 pm

It’s July Furrrst.
US indices going into ‘hockey stick mode’ now.

#2 Randy on 07.01.14 at 6:23 pm

We can’t fix Stupid. Thanx for trying to protect people from themselves Garth.

#3 Dean Mason on 07.01.14 at 6:23 pm

If people believe that when they are doing business in any fashion that there is a truly honest transaction then they maybe believe in Santa Clause and the Easter bunny too.

#4 mortgagebrokeron on 07.01.14 at 6:28 pm

I know one of the top realtors in Canada, he has many many open houses at once, what he does is has people at the open house, his employee, when someone walks thru the house and has a question then the employee calls up realtor on his cell phone and realtor will answer questions.

Its a way around it I guess.

I too wonder when is this market going to head south????? I personally know too many people buying and flipping sooner or later isn’t there going to be more houses than occupants?

Where do we see the supply outnumber the demand??? Oh well, one day it will hit and I think it will hit people pretty hard.

Garth up the good work

#5 mr blobby on 07.01.14 at 6:32 pm

first

#6 Yahoo on 07.01.14 at 6:36 pm

Everything is fake !!!

#7 Cici on 07.01.14 at 6:36 pm

Real estate in Canada is a travesty!

#8 v20percdownbut2late on 07.01.14 at 6:40 pm

At least first on the blog today

#9 Sheane Wallace on 07.01.14 at 6:48 pm

Ethics in real estate business in Canada?
Garth, you ask for too much.

Some regulatory body is sleeping again. No regulations, no serious penalties for clear fraud… while introducing legislation for up to 1 million penalties for unsolicited emails.

It is clear that certain people are very dangerously incompetent up there so don’t discard the system risk, it could blow up big time.

Mark my words, these people will lie and cheat, they will even make illegal to criticise their policies by penalizing critics news or statements as ‘rumours endangering the soundness of our financial system’

Let’s remember: the gold window was closed due to the ‘international gold speculators’ not due to the reckless economic policies.
So any mention of full reserve banking could be made illegal for example.

It is always messenger’s fault so use the opportunity to make your statements now, soon it could be criminal to express it.

#10 Van Isle Renter on 07.01.14 at 6:52 pm

If any frauds like these were perpetrated by ANYONE in a public company they would be subject to massive fines, permanent banning or possibly prison. RE needs oversight of the caliber of the Stock Exchanges.

Think about it…. more people have spent more $$$ and run more risk with more misleading and false information information in buying real estate than ever have purchased penny stocks from bucket shops.

Ridiculous.

#11 Mr Reality on 07.01.14 at 6:55 pm

Its stories like this that make me sit back and prey that the outcome of this mess is a slow, steady decline in prices for a decade or so.

Then i snap back to reality and realize that this industry is pretty much unregulated and when this bubble bursts, it will be epic ugly.

Thanks Sheeple, i’ll buy your home at 50% off. Good times

Mr. R.

#12 Lurcher on 07.01.14 at 6:57 pm

I have also heard many builders operate one off numbered companies that are folded upon the completion of a project. This is likely done partly for tax purposes I suppose, but it also means no one is liable if there are unrectified problems later on.

#13 Waiting on 07.01.14 at 7:05 pm

Waiting

Deception in Canada , Smoke and mirrors here ? The true north strong and free. The LOVE of money is the root of all evil. What will tip the domino ?

#14 omg on 07.01.14 at 7:06 pm

Sorry, but….if people are too stupid to check things out, and think for themselves, they get what they deserve.

Media reports cannot be trusted, not because there is some great conspiracy, but simply because there is no such thing a investigative reporting at MSM anymore.

The RE industry – they are simply sales people out to make a buck. Their ethics are bound by the money they can make from a deal. End of story.

There are all kinds of old sayings that cover all this:

“Let the buyer beware.”

“There’s one born every minute.”

And of course “The Greater Fool”
——–
And BTW, Happy Canada Day!

#15 Waiting on 07.01.14 at 7:07 pm

Garth , can you change my name… oops. Waiting is good

#16 Happy Renting on 07.01.14 at 7:10 pm

Well, that’s an appallingly non-existent punishment. Hopefully, if we stay tuned, there’s more hell to pay for the blatant misrepresentation.

#17 Oceanside on 07.01.14 at 7:13 pm

With all the hype about this it is still buyer beware…..If it seems too good to be true it probably is. Old, well worn sayings but still current. When buying a car, boat, home or any big dollar item take the time to decide if you really need it and can afford to keep it…Should be simple. Guess I have been around this blog too long to think that people still think “Buy now or be priced out forever”

People will spend months shopping for that beige Camry, Consumer’s reports, visiting dealers, getting prices from brokers but spend a million on a glued together box on a .13 acre lot…A day or two…

#18 duffydawg on 07.01.14 at 7:20 pm

When it comes to real estate facts in Canada especially gathered by sources from within, that great English philosopher, Robert Plant said it best in one of his many famous poems: “I don’t think that’s right”

#19 Sheane Wallace on 07.01.14 at 7:30 pm

#12 Lurcher
…………………..
Liable? Nobody will be found liable, suck it up and move on and get ready to pay for the fallout.
It was my dream to see the little elfin deity in jail, but I guess there is god after all so he is now in a ‘better place’.

#20 Idontgetit on 07.01.14 at 7:33 pm

Great piece, Garth. But the issue of people being licensed or not is pure semantics. I can pick up the phone anytime and call a licensed broker or real estate agent, and they can be the most useless, unethical, dumb, useless (sorry already used that one) person on the planet. There lies the real issue. The folks you trust and not trustworthy. This is one of the few examples of where the internet really can educate, and there is little sympathy for people duped in 2014. None.

#21 rainclouds on 07.01.14 at 7:46 pm

Always a good idea to have the inmates running the asylum. In light of this loophole bcrea isn’t lobbying for more regulation…..why?
Boiler room business tactics propped up by incompetence

#22 Debtfree on 07.01.14 at 7:47 pm

Well imagine that happening in Canada . Good thing the venture and T.O. Exchanges aren’t emulating the realestate sales racket . What a country . A ship without a helmsman. Only in Canada .

#23 Joe2.0 on 07.01.14 at 7:54 pm

DELETED

#24 Andrew Woburn on 07.01.14 at 7:54 pm

#38 Italians love real estate on 06.30.14 at 8:42 pm

He makes minimum payments shuffling one minimum from one card onto another as the total grows and grows. He has no assets to speak of.

He has made it clear that when he is no longer able to get more credit he will simply default, claim bankruptcy and start again.
===========================

And people wonder why they are paying 20% on their credit cards. He’s not screwing the banks, he’s screwing the other cardholders. I don’t know what banks expect to clear on a portfolio of credit card debt but I guess they would be real happy with five percent. The rest of the 20% is a tax paid by the good creditors to cover the deadbeats.

muppets who can’t stop playing with their plastic.

#25 Snowboid on 07.01.14 at 7:56 pm

Many years ago I witnessed first hand how our local real estate board dealt with fraudulent member.

They bald-faced lied, lost all copies of the written minutes of a previous meeting, then banded together to destroy some close family members.

All over a written promise they didn’t want to honour because it would have cost them some money. After many days in court, and some $ 60K later our relatives lost – kinda lost faith in the justice system after that.

I’ve never seen such slimy tactics…

Or not, could be a typical BC Liberal caucus meeting!

#26 Debtfree on 07.01.14 at 7:58 pm

@16 happy renter. Are you kidding ? If it ain’t about big oil/gas/coal , it ain’t . The rest of us are on our own . It’s blatantly obvious that law makers could care less about people . Just look at the nicanoids pesticides that are killing all the insects like bees . Our idiot gov . Is taking a wait and see stance even though Europe has already banned them .

#27 Daisy Mae on 07.01.14 at 8:16 pm

#25 Snowboid: “I’ve never seen such slimy tactics…”

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

Happens every day. Everywhere. However, when we finally hit bottom with regard to corruption at every level there’s only one way to go — and that’s up.

#28 momo on 07.01.14 at 8:19 pm

Taking about Vancouver…

https://medium.com/spencers-collection/why-vancouvers-housing-costs-arent-the-problem-its-the-people-who-buy-them-d094a420da2b

Already posted six times by people who like to blame other people for what they cannot afford. — Garth

#29 Mississauga on 07.01.14 at 8:22 pm

Rich people, parents from China, two sisters looking for apartment, all coming to Vancouver to take our houses and jobs etc .. This is big, I can sue this realtor and make some money

#30 juno on 07.01.14 at 8:30 pm

Two things that fuel this behavior

1) No regulations
2) The loaners has no commitment to the mortgages they give out.

Get rid of CMHC and go back to a free market. For a Family saving 50K a year (note saving), they would only probably only get 250K. Imaging what that would do to re-estate prices.

Treat Re-agent and all the people they employ, include the guys they pay 40 dollars an hour for lining as the headmasters responsibility. If an employee of any company commits fraud, the head employer can be held responsible especially when the employer orders the employee to behavior in this fashion.

eg. If I paid someone to off someone else. I can be held responsible for masterminding the crime

#31 ozy - stop being Jealous on 07.01.14 at 8:31 pm

stop being Jealous ;) the kanatian fraud is poised to fly high until the overseas fraud (ghost towns in neo-communist densely populated countries) POP HARD

hahaha – I will laugh at all of the suckers then, they have a tendency to get burned in all crashes…..

#32 Babblemaster on 07.01.14 at 8:33 pm

Garth, it doesn’t matter how many legal, ethical or moral transgressions the Realtors are guilty of. Nobody cares. All they care about is that RE is going up 8% YOY. They will keep buying RE from these unethical purveyors as long as it continues to go up. I used to believe you that there was a day of reckoning coming, but that has not transpired and will not for as long as rates remain low. And low they will remain for a long, long time.

Rates can go to zero and the outcome will be unchanged. — Garth

#33 Maxi on 07.01.14 at 8:40 pm

#12 Lurcher on 07.01.14 at 6:57 pm
I have also heard many builders operate one off numbered companies that are folded upon the completion of a project. This is likely done partly for tax purposes I suppose, but it also means no one is liable if there are unrectified problems later on.
————————————————————–
Directors are held responsible if they oversaw fraudulent activity; does not matter that the company has wound up. This is an urban myth.

#34 Catalyst on 07.01.14 at 8:44 pm

I have been lied to by many a salesman in many an industry.

The only defense is knowledge. Arm yourself well.

#35 Vanecdotal on 07.01.14 at 8:56 pm

People are nuts, but it seems that the buyer pool is finally drying up around here, at least in the In South-ish Surrey area. There is a staggering amount of redevelopment of previously rural acreages being rapidly regurgitated into an endless forest-raping sea of pressed cornflake row homes, townhomes and condos. Many with the same signage from 2-3 years ago, “BUY NOW”, “NO HST EVENT”, “PRE-REGISTER NOW FOR BEST SELECTION”, etc. Some complexes are still not complete 3 years later, and I wonder if they ever will complete. New developments are still starting regularly though as new swaths of forest are rezoned and razed to the ground almost weekly. There is also a plenty of resale townhome/condo inventory on the market in this same area, that is @ 5-10 years old. These still seem to sell in a reasonable time frame, (more bang for your buck I guess), but I am seeing a steady downwards drift in pricing on the resales. One development (only one) has a few retail spaces incorporated into the complex, aside from a daycare, the other units are still empty, they’ve been for lease for over a year, with no takers. The unsold residential units in these developments are still sticky on pricing, developers are getting pretty creative with the “perks”, anything to avoid lowering the actual price, but it appears inevitable, prices are going down. The amount of overbuilding is unprecedented I’d say. Not unsurprisingly there are not a lot of lights on at night in many of these developments. This does not bode well for the market as a whole, as this is considered a “desirable” area, walking distance to amenities, good schools, views, greenbelts, 10 min. drive to the ocean, White Rock, etc. I daresay the era of tripping over one another to put your deposit on a hole in the ground is finally coming to an end here.

#36 Lurcher on 07.01.14 at 8:57 pm

Acquaintance of mine was selling his car and I was over visiting. Potential buyer arrives to look at the car so my buddy says to pretend I am interested in buying it to make it look more desirable to the victim… I mean potential buyer. Don’t know if they actually bought the car though… I wasn’t a very good actor. Silliness all over.

#37 Freedom First on 07.01.14 at 9:06 pm

In 3rd world countries corruption and fraud is openly rampant. In the developed nations the corruption and fraud is much more sophisticated. I am my own consumer protection in all financial matters.

#38 Smoking Man on 07.01.14 at 9:25 pm

Nothing to say… Little bit bummed out.

Mom and Dad at the gate, boarding call soon..
Taken that one way flight to gone for ever.

Even though, we can’t really communicate anymore.. The though of not coming up to the Nursing Home..

It’s bugging me.

I remember the Centennial party my folks held.
1967

Memories, good ones. Is all we have till its our turn to board that flight.

Happy Canada Day bastards….

#39 sheane wallace on 07.01.14 at 9:27 pm

#32 Babblemaster

rates will skyrockets once the inflation shows up.

Look at what low rates brought to the states – 3 %dip in GDP in the first quarter despite inflation picking up – we are talking about 6-7 % declene in economic activity due to malinvestments – direct result of central bank policies.

If you like to have a house but not economy, go to Zimbabwe, if you like to have economy kiss that house good buy as rates are going much higher.

#40 Write the RECBC, let them know what you think about RE fraud on 07.01.14 at 9:31 pm

Here’s email address for the lawyer’s in charge of the MAC marketing case for the Real Estate Council of British Columbia. Send her a note and let her know what you think about the farce of a judgement. Her name is Jessica Gossen [email protected]

#41 Victor V on 07.01.14 at 9:52 pm

My wife and I checked out a rental listing over the weekend as we are looking to expand on our current digs. The listing agent is well known here in the GTA, decades of experience in the business, face plastered on many a bus shelter, a top earner, etc

So as we toured the house, he chatted me up about why we weren’t buying and when I explained our blog-dog rationale (ie: market top, leveraged buyers, high risk, rent and invest, etc); he countered with the following 3 main talking points:

1) There are 1 million immigrants coming into the city each year
2) He doesn’t trust the ‘stock market’
3) Rates can be had as low as 1.99% – 2.5% allowing for easier carrying costs

The house wasn’t the right one for us, so we thanked him and said goodbye. I did leave wondering whether he truly believed what he was saying…

#42 Sandra on 07.01.14 at 9:55 pm

Report it to the competition bureau?

well they would likely be uninterested so consumer protection bureau maybe time to get their attention?

#43 Godth on 07.01.14 at 10:08 pm

Garth, it’s all a bad fiction…all of it – everything.
If you haven’t realised this yet the Scotch isn’t working.

Business + comic book plots.

#44 Fort Mac Flatlander on 07.01.14 at 10:08 pm

Enough is enough! When will Ottawa pull their collective heads out of their a$$es and implement a national regulatory body to end this fraud! Garth, your new mission, if you choose to accept it, is to lobby on the behalf of the poor misinformed to implement a true regulatory body with the teeth of jail time. This needs to end!

Sorry for the outburst;

Fort Mac Flatlander

#45 Godth on 07.01.14 at 10:13 pm

#38 Smoking Man

…ashes to ashes – dust to dust. In between we laugh and cry.

#46 research on 07.01.14 at 10:22 pm

so would you recommend reading articles such as this with a dose of scepticism:

First Brentwood mall tower sells out in hours

http://www.burnabynewsleader.com/news/264423231.html

#47 Dr. Talc on 07.01.14 at 10:25 pm

Apparently we’re being lied to. Some here think
‘the government’ should do something. That’s right, they want more government. People, the system of lies is top down, there is no human situation that cannot be made worse by the intervention of the government (or by the police),
grow up. Assume you are being lied to and act accordingly. Make them prove it triple. Don’t buy anything ‘pre-construction’.

#48 Joseph R. on 07.01.14 at 10:36 pm

#41 Victor V on 07.01.14 at 9:52 pm

1) There are 1 million immigrants coming into the city each year

1 million immigrants per year?????

http://www.cic.gc.ca/english/resources/statistics/facts2013-preliminary/02.asp

There are currently 81K permanent residents in Toronto; 258,619 in the entire country in 2013.

#49 Joseph R. on 07.01.14 at 10:41 pm

#44 Fort Mac Flatlander on 07.01.14 at 10:08 pm

Do you know of any jurisdiction that have a very strict code of conducts for its realtor?

#50 R on 07.01.14 at 10:50 pm

They’re tricksy.

Like when Frito Lay charges the same for a Family Size bag of chips, but the bag gets smaller.

#51 sheane wallace on 07.01.14 at 10:58 pm

worth posting, in Arizona sales price: 695 k

http://www.zillow.com/homedetails/13537-W-Terra-Vista-Dr-Sun-City-West-AZ-85375/8116032_zpid/

#52 KommyKim on 07.01.14 at 11:01 pm

RE: #41 Victor V on 07.01.14 at 9:52 pm
The house wasn’t the right one for us, so we thanked him and said goodbye. I did leave wondering whether he truly believed what he was saying…

To become an accomplished liar you must believe your own lies.

#53 young & foolish on 07.01.14 at 11:02 pm

People just want housing ….. it’s what’s driving this. The demand comes from deep within, a primal urge. And ultimately, one of life’s necessities. They’re right of course, everybody needs shelter, but under what conditions?

Housing people has always been shady, almost everywhere. If you’ve got the money, you live well and safe. If you don’t, you end up with little control. Does it have to be that way?

For us, debt is a kind of prison. But obviously, it’s not in the spirit of the age. What will happen to us?

#54 randman on 07.01.14 at 11:08 pm

Dr Talc

What wonderfully and refreshing common sense reasoning …..

however…your audience are liberal/marxist trained sheep …..they are brainwashed that Gov.com is good!

I don’t like Harper but heaven help us if Son of T gets in!

#55 Fed-up on 07.01.14 at 11:24 pm

Huh? For overseeing a complete and total ethical breach? For orchestrating a lie that was subsequently seen by hundreds of thousands of people? For trying to influence market conditions and sell product under false circumstances? For pissing off Global?
———————————————————————-

A respectful “duh” Garth

Didn’t you know that white collar crime pays in this country? The penalties/punishment never come close to fitting the crime.

#56 Tedfiftyfour on 07.01.14 at 11:39 pm

Your blog today just proves Garth that you don’t know shit. Calling everybody who sells Real Estate a Realtor is incorrect and you have been doing it for years. Considering you are advising blog dogs it’s amazing that you did not know that developers are completely unregulated. The regulated Real Estate would like to see all sales people regulated but it’s big money and the lobbying by Developers will never allow this to happen. For your education only licenced Sales people who are members of CREA can be called Realtors.

Correction. Realtors must be called REALTOR®s. Nincompoop. — Garth

#57 Ole Doberman on 07.01.14 at 11:47 pm

In the Calgary NW I’m still seeing the same places for sale and not selling in a couple weeks – it’s now 3-4 weeks.
Getting more positive of a trend reversal, will keep you posted.

#58 James on 07.01.14 at 11:50 pm

Why can’t you admit it is more solely a condo problem? People who owns SFH have more than enough equity to withstand 25%+ correction IF it ever happens (highly unlikely). Plus most desirable neighbourhoods will be mildly affected IF at all.

#59 Mr. Frugal on 07.02.14 at 12:02 am

It’s pretty clear that ever the realtards can’t prop up this market forever. At some point down the road, people are going to be forced to refinance at higher rates and the mortgage default rate is going higher. Who is going to lose? We need to be short real Canadian estate. The question is how? Anyone got any good ideas I’d love to here them.

#60 millenial1982 on 07.02.14 at 12:04 am

Too many people are irresponsible when it comes to real estate and personal finance. We all personally know at least a handful of friends and aquaintances who fit that bill (or more). I know of two families at this moment struggling to get by on extremly modest mortgages. Problem is though what they have isn’t good enough and with a spoiled brat attitude they want their forever house NOW. The banks will help them out and even offer 90 day bridge financing to ensure they get the house they want. In fact on impulse it’s the only one they have both looked at! Sounds so responsible doesn’t it? Lots of due dilligence here. And of course the offers to purchase will be with no conditions. There’s just so many sound traits missing from the general society today. Can’t help but feel many grandparents would be turning over in their graves if they only knew (sorry parents you are no better).  Fortunately I was able to spend many hours with my grandfather who taught me well to play it safe. Thank you.

#61 Chickenlittle on 07.02.14 at 12:04 am

“Like pots of liquid lip liner.”. – Garth

LOL!!!! You crack me up, Garth! I can tell you’re straight. There is no such thing as liquid lip liner.

Victor V @ 41:

“There are 1 million immigrants coming into the city every year.”

Did the agent say that with a straight face? That is the stupidest thing I ever heard! We would have a crisis on our hands if that were true.

I wouldn’t trust a guy that’s not good with numbers.

What tawdry stuff do you wear on your lips? — Garth

#62 lisa T on 07.02.14 at 12:05 am

Disgusting!

#63 YVR on 07.02.14 at 12:07 am

“I have also heard many builders operate one off numbered companies that are folded upon the completion of a project. This is likely done partly for tax purposes I suppose, but it also means no one is liable if there are unrectified problems later on.”

No, ALL builders set up one off companies for any project. Yes it limits liability, nothing to do with taxes. That is why there is a mandatory New Home Warranty program provided by a third party. Of course the warranty has major limitations on what it covers and for how long. And if you buy a presale you have forfeited almost all recourse by signing the presale agreement written to protect the developer.

#64 Jimmy on 07.02.14 at 12:14 am

Justin will solve all of our problems.
Can’t wait.

#65 Mr Zipper on 07.02.14 at 12:34 am

For one thing….the sub agency real estate exam ( the real estate agent you talk to is not an ‘agent’ under the law but a ‘sub agent’) takes twenty minutes to write…..you can upgrade and become a manager/agent under Sec 9.15 of the BC Real Estate Act in the same time. The multiple question exams are nothing a seventh grader can’t pass. In all honesty my kid was doing math in grade 10 that we weren’t doing until second year at UNI in 1972.

Under Section 9.15 you can rent a dumpster and fill it with sub agents and call your self an agency if you like…..fill it to the brim…..that’s obviously what MAC Marketing has done.

And it’s a fact that a builders/developers employee does not have to be licensed under any real estate act or be bonded in any way. It’s Caveat Emptor when you walk into a sales office.

The fireworks in Vancouver should start in 20 minutes here on the left coast….try and enjoy what our braindead politicians have wrought.

#66 ozy - REPLY to #41 Victor V on 07.02.14 at 12:36 am

REPLY to #41 Victor V – My friend, they are schooled to overcome objections. They will picture a rosy future. That’s a risky assumption. Why did you even bother…the truth is the current buying is very punctual in nature, the market has split and soon parts will be falling. Don’t expect them to enlighten you on best buy out there – they do not think it is profitable to show you 50 houses and 5 cities and 5 types of property. They have devalued themselves a lot. you walk in a OH and they lie on the sofa, shoes off…or talk on the phone with their siblings for hours…the game is over. move south.

#41 Victor V on 07.01.14 at 9:52 pm
My wife and I checked out a rental listing over the weekend as we are looking to expand on our current digs. The listing agent is well known here in the GTA, decades of experience in the business, face plastered on many a bus shelter, a top earner, etc

So as we toured the house, he chatted me up about why we weren’t buying and when I explained our blog-dog rationale (ie: market top, leveraged buyers, high risk, rent and invest, etc); he countered with the following 3 main talking points:

1) There are 1 million immigrants coming into the city each year
2) He doesn’t trust the ‘stock market’
3) Rates can be had as low as 1.99% – 2.5% allowing for easier carrying costs

The house wasn’t the right one for us, so we thanked him and said goodbye. I did leave wondering whether he truly believed what he was saying…

#67 Waterloo Resident on 07.02.14 at 12:49 am

– Imagine a street where there is one house for sale for $100,000.
– Now imagine that house drops in value by 15% to $85,000.
– Now imagine 100 house lusting home buyers who come along and say “I cannot wait for houses to drop 10% to 15%, then I’ll swoop down and snatch them up.” (just like they say here at this blog regularly.)
– Now imagine those 100 house buyers now bid for that one house, bidding the price of it back up to $100,000 and beyond, with it selling eventually for $120,000.
– Now imagine this trend going on over the entire country of Canada.

THIS IS WHAT IS HAPPENING IN THE GREATER TORONTO AREA CANADA.

Until this house-lusting desire to buy on the drops goes away, house prices in Toronto will never go down no matter what.

#68 Tiger on 07.02.14 at 12:52 am

Just look around as your driving, industrial , commercial properties fore sale ,for lease ,for sub lease . More than I have ever seen before,
You figure it out!
I all ready have!

#69 Bobby on 07.02.14 at 12:58 am

Not really sure why so many are surprised by this in the least. I’ve spoken with many realtors over the years and most will say what is necessary to facilitate a sale. Some of the comments were outright lies. Remember if they don’t sell, they don’t get paid.
I ensure everything is in writing. It is amazing how quickly their stories will change.
Sorry, I have no sympathy for those in the industry. They have brought this on themselves.

#70 stop lying on 07.02.14 at 1:35 am

That may be standard practice for condo’s but not for sfh’s, any sales office I’ve been to always had a real estate agent selling. Of course they work for the builder not you, so I’m not sure why that would help you. Nothing they say is part of your contract, the contract overrules everything. So as long as you get a lawyer to look over the contract, what difference does it make? I’d say that is much more important with a condo than a house, as they have all kinds of stupid rules that you need to know about. Maybe that’s why they have a 10 day cooling off period.

As for those red dots being fake, those things are gold! Finding the perfect lot is damn near impossible if you are picky. A good lot can add a lot of value to your home and the builder doesn’t always charge a lot more for it.

#71 Babblemaster on 07.02.14 at 1:42 am

#39 sheane wallace – “rates will skyrockets once the inflation shows up.”

———————————————–

Don’t think so. With all the debt out there at all public and private levels, rates can’t climb. The geniuses in Ottawa have painted the country into a financial corner with no room to maneuver.

#72 SHELTER THE MONEY NOT THE PEOPLE on 07.02.14 at 2:31 am

A Realtor dies and soon finds himself standing in front of St. Peter. St. Peter tells him “You have a choice of going to heaven or to hell and I suggest you check them both out before deciding.” So he chooses to check out hell first. He goes down to hell and finds himself in the middle of the biggest party he has ever seen. People are dancing and drinking and doing the limbo (and nobody’s doing the Macarena!). Everyone is laughing and having a great time. Next St. Peter takes him up to heaven to look around. Everything is white and pristine. People are speaking softly about philosophy and mathematical formulas. Others are simply contemplative and serene. He’s bored in about five minutes. St. Peter then says to the realtor, “I want you to sleep on it and meet me back here in the morning to let me know your decision.” The next morning he comes back and says to St. Peter, “Heaven is very nice and all, but hell looks great, so I’ve decided that I want to go to hell”. So St. Peter puts him on the escalator down to hell. When he gets there he sees Satan whipping people and there’s fire everywhere and everyone is screaming in pain. So he goes over to Satan and says “Hey, what gives here? Yesterday I came here to check the place out and everyone had me partying and it looked like a great time. What happened?” Satan looks at him and says “You used to be a Realtor so you ought to know the answer to your own question. Yesterday you were a prospect. Today you’ve Been sold!”

#73 The Iceman on 07.02.14 at 3:06 am

Interesting clip on tonight’s Vancouver CTV News. (Not on Global, of course).

Funny to see the realtor still trying to persuade the virgins.

Quite nice to see the UBC professor (Davidoff) present an opposing view. I loved his line at the end when he said: “…your economist does it [rents] too!”

http://bc.ctvnews.ca/video?playlistId=1.1895125

#74 Mithan on 07.02.14 at 4:13 am

I am not a doomer, but I need to say something here:

When things are THIS BAD, pretty much everywhere, I think the eventual result will be a bad collapse in the real estate market in this country, probably more so than the 10% a lot of people seem to expect.

All it needs is a trigger.

#75 Derrick on 07.02.14 at 7:12 am

Even if this case with Mac Marketing was fraudulent, it ended up as more PR for the real estate industry and despite the bad publicity it worked out well for them. Most media outlets continue their regular conversation about how good & resilient Canadian real estate is. Although one can’t expect too much ethical behavior from two industries renown for dishonesty.

#76 down and out on 07.02.14 at 8:17 am

#12 and 33 are both right we went after builder found he was a numbered company , lawyer goes after directors of company, legal bill more than original problem and climbing without any guarantees of compensation or remedial work . Both sides had hefty legal bills when case mutually dissolved without a judgement after a few years .

#77 David W on 07.02.14 at 8:34 am

I met with a RE agent last week and he tried to get me to sign a BRA and I said no – thanks Garth.

#78 Holy Crap Wheres The Tylenol on 07.02.14 at 8:39 am

#38 Smoking Man on 07.01.14 at 9:25 pm
Nothing to say… Little bit bummed out.

_______________________________________________

This proves that you are human Smoking Man, we all go through it. I’m assuming that I am probably 10 to 15 years older than you so I can tell you been there, done that! It sucks watching your parents grow old and slowly go downhill. All I can tell you is to take note of your children and grandchildren and enjoy them as this is the circle of life (no pun intended). Just think we are all immortal as we live on through our children’s, children’s, children……
Don’t be bummed out man, remember the good times with them that will always bring a smile to your face!
You are correct we all get a turn at the gate!

#79 Holy Crap Wheres The Tylenol on 07.02.14 at 8:51 am

Fakes are all around us Garth but this one takes the cake. If I was to pull that kind of shit in my industry and get caught I would be drummed out, drawn and quartered. My name and company would lose its reputation and never, never, regain the confidence of my customers and peers again. Its simply amazing what you can do in the real estate industry.
I remember these guys……………..

http://www.youtube.com/watch?v=NwrL9MV6jSk

#80 rosie "moving forward" in the knowledge that, "this won't end well" on 07.02.14 at 9:03 am

It’s different here. No need to panic.

http://www.huffingtonpost.ca/2014/07/02/banking-crisis-risk-canada-bis_n_5545662.html

#81 X on 07.02.14 at 9:17 am

The RE powers that be have proven that they are either unwilling or incapable of regulating their industry, not that I am one for more gov’t intervention, but there really should be some oversight of the industry that most Canadians have most of their net worth.

#82 rosie "moving forward" in the knowledge that, "this won't end well" on 07.02.14 at 9:24 am

Talk about a one horse town. Realtors lie, by the way.

http://www.bnn.ca/News/2014/7/2/Halifax-housing-market-picks-up-steam-after-long-slump-.aspx

#83 Toronto_CA on 07.02.14 at 10:02 am

Wowza. Strong payroll numbers from ADP in the US.

#84 rosie "moving forward" in the knowledge that, "this won't end well" on 07.02.14 at 10:31 am

The liar in chief, 2005. He’s not responsible though because he was not a realtor.

http://realtytimes.com/agentnews/marketingadvice1/item/10784-20050303_boomnotover

#85 rosie "moving forward" in the knowledge that, "this won't end well" on 07.02.14 at 10:51 am

How to make $20000 into $75000.

http://business.financialpost.com/2014/06/30/hgtv-effect-pushes-home-renovation-spending-to-record-63-billion/

#86 Dupcheck on 07.02.14 at 11:12 am

Two sisters from China? I thought China had a one child policy. That is a lie from the start.

#87 Fed-up on 07.02.14 at 11:19 am

@ #58 James on 07.01.14 at 11:50 pm

Why can’t you admit it is more solely a condo problem? People who owns SFH have more than enough equity to withstand 25%+ correction IF it ever happens (highly unlikely). Plus most desirable neighbourhoods will be mildly affected IF at all.
————————————————————————

You seem to have all the concrete answers. You should start your own blog instead of forcing the author who runs this one into agreeing with your conclusions.

#88 DM in C on 07.02.14 at 11:58 am

“In the Calgary NW I’m still seeing the same places for sale and not selling in a couple weeks – it’s now 3-4 weeks.”

On our small court in the NW a place went up two months ago, for $620k. Smaller than the house we bought, no fence, no finished basement, and asking $70k more than we paid.

No interest.

Same lawn sign, now listed on the realtor’s site as a NEW LISTING @ $599k. I don’t see any interest yet. Their window may have passed.

#89 Nemesis on 07.02.14 at 12:30 pm

#Fakes. #Ain’tSoHardToSpot. #IfYaKnowsWhatToLookFor. #MatchStickMenAreAmateurs. #ComparedToSome[Redacted]™. #”GuaranteedPrizes!”

http://youtu.be/GwQdBsTpmOM

#90 Dominoes Lining Up on 07.02.14 at 12:38 pm

Toronto weekly newspaper folding on 24 hours notice:

“Regretfully, despite a strong and loyal following, we have been unable to generate sufficient revenue from marketers and other sources to fund The Grid’s great journalism,” the statement said.

Like all media brands, The Grid has been tremendously impacted by the proliferation of new advertising vehicles that are available to marketers in today’s world, the statement said.

from:
———————————————————
http://www.thestar.com/business/2014/07/02/the_grid_weekly_magazine_is_closing.html

I have pencilled in 2015, for a variety of reasons, as the year by which Canada’s print media will be in complete tatters.

National Post
Toronto Sun
Vancouver Sun
Vancouver Province

I think at least two of these will be gone by next year.

There are not enough lying realty ads in the world to keep the print business alive at anywhere near the levels we have seen in our lifetimes.

#91 Smartalox on 07.02.14 at 12:50 pm

#24 Andrew Woburn:

Good creditors don’t pay 20% to the credit card companies. Those that pay off their balances in full every month, pay ZERO interest.

It’s only those that use credit cards to fund lifestyles beyong their means that get walloped by high interest rates.

#92 Sheane Wallace on 07.02.14 at 12:59 pm

#71 Babblemaster on 07.02.14 at 1:42 am
#39 sheane wallace – “rates will skyrockets once the inflation shows up.”
———————————————–
Don’t think so. With all the debt out there at all public and private levels, rates can’t climb. The geniuses in Ottawa have painted the country into a financial corner with no room to maneuver.
…………………………..

Oh yes, they will, just watch it.
Interest rates are defined by the bond market, not by the central banks no matter what the media tells you.
At some point and that pretty soon as inflation is staring to show up they will be faced with a dilemma:
1. Either increase interest rates and crush the economy to same extent but save the currency
or
2. Keep inflating without increasing interest rates which will save the economy but crush the currency.

The currencies crush is a bigger danger than moderate economy crush so once it becomes impossible to hide the inflation they have to increase the interest rates no matter what.

We live in an open and much more complex world and any closed internal models that account mostly for internal debt and consumption could be highly inaccurate.

At the first signs of currency weakness there could be a stampede out of certain currencies and bonds.
Currency swaps have limited impact, the fact that they are massively employed lately as well as certain naked shorts along with some very suspicious bond actions show that we might not be far from a rate increase.
The more they delay the rates increase the faster they will go up once unleashed.

Repetition of Japan’s experience is highly unlikely in the west due to lack of savings and room to further grow depth.
This is why we have this exercises in under reporting and openly lying on inflation. When lying and market manipulation become policies, then watch out.

#93 Sheane Wallace on 07.02.14 at 1:03 pm

excuse my spellchecker, some and debt

#94 TheCatFoodLady on 07.02.14 at 1:06 pm

I’m not so sure how well things really are in Halifax. More people renting? Really? My youngest brat & his GF just scored the ultimate sweet deals in apartment living. The 2nd of a 3 building complex in Bedford is now renting. They have a 1 bedroom, 2 bathroom, walk through closet, granite, hardwood, stainless, brand new everything.. balcony with a view to the Harbour one way & Bedford Basin the other. Free utilities, internet, cable & landline phone for the 1st year – all for the princely sum of $650/month. No, that’s not a typo. Six hundred and fifty dollars per month for 1100 square feet of gorgeous. Needless to say, I’m suffering a bad case of apartment envy.

The HGTV effect – yeah, see it here. I love those shows – as ENTERTAINMENT. The key line, (paraphrased here), in that article was something along the lines of “people don’t know they want a designer kitchen until… etc.”

WANT is the key word.

I will be the first to admit in my eyes many improvements are anything but. All character is erased from some of these lovely old homes. Maybe my taste is peculiar. I shriek when beautiful old wood staircases – especially railings are torn down to be replaced by the latest craze – glass. I have a thing for stained glass & would prefer to keep some of the old stained glass doors & windows so quickly ripped out.

I don’t see what’s so kewl about granite or quartz countertop – if you like the looks, plain old countertops – the cheap ones – come in literally thousands of colours & patterns for a lot less. Do they function as surfaces; yes? Then unless you want to brag about the cost of your fancy assed counter tops – who cares?

‘Soaker tubs’ – we have a combined shower/tub & the tub rarely gets used. I wouldn’t pay thousands for something I’d rarely use. I hate dark hardwood & speaking as a cleaning lady – nothing shows dirt faster; that & all that glass you’ve installed to replace stair rails & for your glassed in shower. If you live in a hard water areas – have fun with that.

Kitchen fittings – subway tile reminds me of… subways – the smell especially. They look cheap. I much prefer some of the really nice glass tile backsplashes. They can look snazzy. I’ll happily admit some of the newer faucet systems are the cat’s ass & under mount sinks can be much less grotty – just don’t forget to take a toothbrush to the ‘under’ area of the under mount. You don’t want to know what kind of grot can accumulate there.

I could go on – lucky you all – I won’t.

But all this to say for all the gushing about tarting up a young couples’ ‘forever home’ – tastes change. The counter colour pattern you loved in June will be making you scream by 2017. If it’s YOUR forever home, remember you may brag about it at the office; you may show it off a couple of hours a week to adoring & envious visitors but YOU live in it 24/7. You’d better really like the finishes you choose.

#95 Nemesis on 07.02.14 at 1:33 pm

#SpeakingOfFakery #WickedWednesdayNauticalMischief

[G&M] – Bluenose II is foundering in a sea of waste and squabbles

…”After four years and $20-million, Bluenose II is forbidden to leave the dock. The ship can’t be steered; there are concerns about its stability and safety. Some even predict it will never go to sea again.

When the original Bluenose was wrecked on a Haitian reef in 1946, it was called a national tragedy. What’s happening on the Lunenburg docks in 2014 is also a national tragedy. It’s a testament to what happens when a people contract out their heritage and turn their backs on history and experience.”….

http://www.theglobeandmail.com/globe-debate/bluenose-ii-is-foundering-in-a-sea-of-waste-and-squabbles/article19395299/

[NoteToGT: Just between the two of us, I am reliably informed that the DukeOfLunenberg is, to put it mildly, “not well pleased”… accordingly, TheDuke has dispatched a BoardingParty to teach those ScurvyScoundrels a lesson they won’t soon forget. Fortunately, there’s nothing the GoodCitizens of Lunenberg enjoy more than a JollyeGoode ‘PublicAmusement’: http://youtu.be/aKSoi12DuNc ]

#96 CP on 07.02.14 at 1:36 pm

Scary:

“Mortgages Aren’t Debt, Nearly Half Of Canadians Say”

http://www.huffingtonpost.ca/2014/07/02/mortgage-debt-canada_n_5551820.html

#97 gladiator on 07.02.14 at 2:10 pm

@72 SHELTER:

there is another ending to the story: Satan says “Don’t confuse tourism with immigration”.
But the reference to house floggers is better, imho.

#98 Not an Economist on 07.02.14 at 2:34 pm

comely
pulchritude
snorfling
apoplectic

I see someone bough a thesaurus.

My dear Garth, the rabbit hole of intentional deceit runs much much deeper than what you’ve discovered here, as you occasionally allude to when you talk about how there is no reliable statistical data available, and not on accident either. Even those clueless idiots in the Conservative party (like your dearly departed F) didn’t have the faintest idea what they were facilitating, and what was already brewing before they even took power. So much for their so-called technocracy, this government is a sick joke.

The housing situation today is a long time in the making, and it still baffles me that you think the price drops are going to be moderate once the bubble pops. When residential housing shits the bed, it has some pretty severe knock-on effects which enter a feedback loop. You (correctly) claim that current housing prices are unsustainably high, but keep in mind that’s based on TODAY’S income and employment situation. In the midst of a real estate correction, what is sustainable may be a lot lower than today. To me it’s clear that our housing market will crash worse than the States, the only question is how much worse. Timelines may also vary, after all logic and experience tells you the end result, but markets can stay irrational longer than you can stay solvent so you’re never safe betting on the “when” or the “for how long”. Safest thing is to stay the f*** away until the dust settles, and that won’t be for years.

I wouldn’t bet on changing any hearts and minds with revelations like these, but I appreciate today’s article because the absurdity is amusing. Rampant conflict of interest has infected our society from top to bottom, and nothing is clean. Ah, the culture of “f*** you, I got mine”. Harper did say we won’t recognize this country when he’s done with it. I hope he’s close to being done, because I for one am not starting to recognize the prevailing attitude anymore. Too much selfishness and greed. From the bigshots orchestrating all this real estate stupidity, to each individual by-the-hour loser that acts in these commercials or stands in line to create the illusion of overwhelming demand. No raindrop ever wants to be responsible for the flood.

#99 Omg on 07.02.14 at 2:34 pm

Due diligents requirements for CMHC loan

To follow up on Garths June 30 post about what happens when you default on a loan.

Surely CMHC has some requirements for the banks in terms of due diligence they must undertake when providing a mortgage that will be secured by CMHC. No due diligence no insurance pay out.

One would hope the requirements provide for some level of assurance that the mortgage can be serviced.

Of course it would not surprise me that, CMHC being a government entity with no ones neck on the line other than tax payers, probably has pretty soft due diligence requirements.

#100 Happy Yuli on 07.02.14 at 3:09 pm

Garth,

What do you think about investing in Iraq dinnar?

https://www.sterlingcurrencygroup.com/

thank you :)

#101 Dominoes Lining Up on 07.02.14 at 3:34 pm

re: #90

Yikes, Garth, looks like I missed another media outlet in trouble.

http://www.huffingtonpost.ca/2014/07/02/globe-and-mail-strike-fences_n_5552046.html

It’s understandable why the staff are upset with management. Someone mentioned a while back about the hypocrisy of management overruling the editorial board on endorsing a candidate. That’s a complete disaster for credibility of leadership, and combine that with the financial pressures, a recipe for chaos.

Apparently they have already erected barricades at the Globe, expecting a long conflict, and staffers are talking about creating an alternative media outlet.

Here’s the question: how long can any paper media producer withstand this kind of thing in 2014?

#102 triplenet on 07.02.14 at 3:37 pm

There are other “legal” requirements in BC that afford buyers protection in a strata property purchase as you mention above. You may have overlooked them.
The Disclosure Statement – is a start.

#103 Mark on 07.02.14 at 3:39 pm

“Surely CMHC has some requirements for the banks in terms of due diligence they must undertake when providing a mortgage that will be secured by CMHC. No due diligence no insurance pay out.”

Yes, the CMHC has such requirements. And there is no evidence to suggest that banks fail to fulfill their obligations. CMHC uses a system called “emili”, to do automated appraisals. Tragically flawed, most likely, but that’s what they use.

The higher level problem is that the CMHC needs the banks to continue to lend, otherwise, its portfolio of guarantees will be exercised on a widespread scale. So if the CMHC decides arbitrarily to damage their credibility as a timely payor of default loan guarantees, the banks will simply refuse to lend, and the housing market will crash to all-cash valuations.

#104 Harry Wilson on 07.02.14 at 3:42 pm

Questions for the more knowledgeable dogs:

What would it take for an actual government agency to investigate this matter, and what agency would that be? Could they initiate an investigation on their own, or would it take a citizen complaint? If the latter, would it have to be a citizen who was an actual victim of the ruse, i.e. a buyer of one of the condo units? (And yes, I know that hoping for government involvement makes me a Marxist Pinko Leftard; thank you.)

When I first saw the news of this disciplinary inaction, my jaw dropped: a two week vacation in July, and a symbolic fine. Upon reading the ‘Agreed Statement Of Fact’ (between Mr. Jenson and the Real Estate Council of British Columbia), however, I realize that Mr. Jensen did nothing wrong; he was just a poor misguided angel. It was, of course, two non-realtrz that caused the problem.

While both fake buyers may still be employees of MAC Marketing (according to their ‘Company Team’ webpage), it would be interesting to hear their account of the events of that day. Generally, when one person is investigated, they tell their story, and stick to it, but when two or more are under investigation, once one implicates the other(s), they are at each other’s throats like rabid dogs (barring some serious hush-money).

——————–

P.S. re #56 Tedfiftyfour

Congratulations, Mr. Turner, on a stellar bridging of the analog and digital ages, by being the first person to use the word ‘Nincompoop’ on the internet. I laughed for five minutes.

Keep these ne’er-do-wells in line! :)

#105 Aggregator on 07.02.14 at 4:10 pm

*GM CANADA JUNE SALES DOWN 15%

How long before the Wynne regime steps in to provide more subsidies and grants to save GM Canada’s sinking ship? We’ll find out soon.

#106 Holy Crap Wheres The Tylenol on 07.02.14 at 4:12 pm

On the bright side Rob Ford looks good. He’s baaaaaccck!!

http://news.ca.msn.com/top-stories/rob-ford-drug-use-ran-the-full-gamut

#107 Victor V on 07.02.14 at 4:51 pm

Asking $875,000. 100 showings. Zero offers. A home seller’s riddle

http://www.theglobeandmail.com/life/home-and-garden/real-estate/asking-875000-100-showings-zero-offers-a-home-sellers-riddle/article19346572/

#108 jame on 07.02.14 at 5:26 pm

#87 Fed-up on 07.02.14 at 11:19 am

Same kind of solid facts Garth is providing. Where has he proved that home owners are putting 5% down? On what kind of properties ? And how much equity people have depending on type of dwelling and age group ?

Yeah nothing. Just kinda like trust me, a correction is happening. I borrow his words – nicompoop.

#109 The Man from Alcan on 07.02.14 at 5:55 pm

#100 Dominoes Lining Up on 07.02.14 at 3:34 pm

Here’s the question: how long can any paper media producer withstand this kind of thing in 2014?

—-
Until the add revenue dries up.
I have my own conspiracy theory about that. Large corporations are forced into advertizing in the dinosaur
media publications. ie they are told by the powers above them that ‘traditional media’ requires their advertizing dollars. For example. McDonald’s would be told to spend millions on newspaper adds, if they don’t? 24/7 exposure on CNN ABC NBC BBC etc with endless mind numbing loops about how unhealthy their food is. A kind of blackmail.

#110 Mark on 07.02.14 at 5:56 pm

Re: 41, 52
To become an accomplished sc.mbag you must be a lurid sc.mbag!

#111 Gary on 07.02.14 at 6:35 pm

Yes, well this practice is going on in China as well and the bubble there is ripe and ready :-) The main issue is the mentality that there is much more bubble room (opportunity for profit) here than in China so big money keeps flowing from overseas. As long as there are suckers foaming at the mouth to put down over a million dollars for a hole in the wall then we will continue to see this insane appetite for horny home ownership.

#112 TurnerNation on 07.02.14 at 6:54 pm

Too bad The Grid is closing.

Gird the Grid!

#113 Cici on 07.02.14 at 7:41 pm

#38 Smoking Man

Nice post! Not enough people care about their aging parents and relatives. Many are just lurking about, waiting to get their hands on the inheritance.

So you have a heart after all. Good to know. Your parents are very lucky ;-)

#114 Babblemaster on 07.02.14 at 8:30 pm

#92 Sheane Wallace – “At the first signs of currency weakness there could be a stampede out of certain currencies and bonds.”

——————————————————-

But that’s the thing. All currencies are weak. Canada is one of the least weakest. We may not have a lot of savings like Japan, but we have lots of natural resources. Though you make a lot of good points, I don’t see rates going up for a long time, maybe never. Central banksters today have co-ordinated global low rates and there’s no other currency to go to. Even Garth, some time ago admitted, he’s been wrong about rates rising:)

Canada’s is the fifth most widely-held currency in the world. Hardly weak. — Garth

#115 dienekes on 07.02.14 at 8:41 pm

Piss me off
I want to train additional electrical apprentices in Northern Manitoba to get them to Journeyman status in a few years and the government busts my balls about the stupid 1 to 1 ratio.
Texas ratio, as many apprentices as you like as long as a master is onsite. A few years ago they tried to bring in 10 to 1 ratio in Texas. It was shot down, to restrictive.
Guess were the Canadian economy is headed without skilled labour you morons.
No wonder everyone, there dog, wife and whore are becoming realtors. They are not permitted to train in anything else.
Canada day, celebrate now, cause it will be bankrupt from a lack of competivness in a short time

#116 Tedfiftyfour on 07.02.14 at 8:44 pm

Nincompoop

Ok you got me on
that one

#117 Patricia on 07.03.14 at 9:10 am

Time for a confession. It is not only a hike in mortgage rates that will depress the market, too much inventory will hurt the market terribly. I pre bought a condo in downtown victoria. Built by Concert, a quality builder. Paid $625,000. Within two years there was so much building in Victoria that prices fell drastically. Rented it out for a year which covered the mortgage and strata fee BUT after that all that inventory which could not be sold became rentals and rents went down. Now I could not cover the expenses. So I sold and lost $165,000. I would caution everyone to just rent. somehow we have to take the stigma away from renting.

#118 vancouver's real estate bubble - Page 98 - REVscene Automotive Forum on 07.03.14 at 1:25 pm

[…] just lol'd at this one; Fakes ? Greater Fool ? Authored by Garth Turner ? The Troubled Future of Real Estate […]