A time to vultch

LUNCH modified

Well, after two dismal, suicidal posts on recourse mortgages and scummy marketers, it’s time for a GreaterFool Success Story. And what better topic could we pick than mountain people?

You know the kind. Marry cousins. Hang nuts from trucks. Feed dogs beer. Skin things. Chainsaw trespassers. Live in trailers. We sure could use folks like this on a blog overrun with thirtysomethings making an average of $170,000, driving Audis and being urbane. It’s just so useful to have lesser people around in order to gauge one’s own insufferable success.

Actually, Mountain Man wrote this pathetic blog two years ago asking for advice. Of course, we ridiculed him in an envious kinda way, and did offer a slew of suggestions. In case you have not yet memorized all of the past articles here, this is MM said:

“My wife and I live in a small BC mountain town. Great place. In the mid 2000s when real estate was going nuts the town also built a kick-ass ski-hill and real estate got pumped with a double-whammy. Houses that were previously 130K went to over 300K. 250K went to 450K in a relatively short period of time.

“I moved back in 2008 and met a great gal in 2009. At this time I was only employed seasonally and my girlfriend (now wife) didn’t make much so in 2010 we bought a trailer for 85K on a rented lot, the only affordable buying opportunity in town. I know what you’re thinking, “white trash trailer park boys”, but you city folk don’t understand. The place was built in 2008, almost new, no renos needed, 924 sq/ft with a nice little yard and cheap to heat. And with double-up mortgage payment and pad rental we’re paying $200-$400 less per month than renting a house and at least $100 less per month in utilities. We like living here.

“So time has moved on and now we have good jobs (difficult to do in this town). We’ve been very disciplined and piled a bunch of money away. I have agreed with your projection of Canadian real estate for some time. In fact a year ago I put my place up for sale to try and make a profit and wait it out renting for a few years. After a couple of price drops we still haven’t seen much action so here is my dilemma: Should we make a drastic price drop and try to get what we paid for it or stay in this cheap living situation during this inevitable drop in real estate and keep piling the money away? Long live the trailer park! Tks, George.”

The advice at the time was this: Stay. With the market starting to decline, and living in trailer heaven for less than renting, why cut your asking price to the point where you make nothing, then have to lease a place? Not like you’re dumping a $1.5 million McMansion in Mississauga or Surrey that has a huge price downside. Let’s get a grip. This puppy cost only $85,000.

Besides, if the real estate market moves over time to where I think it’s now headed, there may be buyers clamoring for 924 square feet of affordable housing, even with the used toilet planter out front.

Two years later, I’ve heard from George again. “You and many of your blog regulars encouraged me to stay put (while poking fun at me in good fun),” he writes. “I did stay put and we couldn’t have been happier with the decision.

“The prices in our awesome town have continued to slowly erode and now modest homes are in the range I am actually willing to pay. Since then and now we have enjoyed the cheap living, paying down lots of our small mortgage and pumping the maximum into my wife and my TFSA and RRSP. And we still love the trailer living! As I stated in the past, the place is a 2008 with a nice little yard. No expensive renos needed and plenty of room for gardens and such.

“My mantra the last two years has been: ‘stay in the trailer until it’s paid off in 2017 then sell and buy a house or buy a house and rent the trailer if the market is really weak’. But now we have a trailer kidlet in the mix and I am finding myself checking the local listings fairly regularly.

“So my dilemma is as follows. I agree with you that nationwide prices will continue to decline. It just makes sense with the Canadian average debt load, mortgage vs. rent ratio, inevitable rising interest rates etc. etc. blah blah blah. But I am not sure how much lower it can go in my town. It has dropped roughly 30-40% already so I wonder how much further it could really go. And with 3.09% 5-year fixed right now I could get a mortgage on a modest house that I could afford to double-up payments and pay that sucker off in ten years. So from that perspective is it a good time to buy? Or when the nationwide prices melt away will prices in our nice little resort town get punished even further and provide me an outstanding buying opportunity (would likely have to rent the trailer in that scenario)?”

Here’s my advice, MM: Buy. After all, this is what a serious housing correction looks like – a drop of between 30% and 40% over the course of more than two years, creating affordability in a time of weak economic growth and cheap interest rates. This is exactly when listings rise, buyers lose their nerve, prices wobble and the brave act.

So what if the value of your tin can house on wheels has faded along with the fancy homes? You can always rent it for a handsome cap rate on the measly amount you have invested there. Besides, this ‘small homes’ thing is really taking off, so maybe some urban refugee will come and pay you ridiculous rent just to feel unplugged. And probably get a rash.

Could prices in your resort town dip more? Of course, as I wrote about Invermere the other day. There’s a huge downside for anyplace that depends on recreational property, especially if Calgary is involved. But when prices have already caved by a third, it’s time to seriously vultch.

BTW, George Boy, I have written previously on exactly how to write an offer that will make sellers cry for mercy. Just try not to shoot them.

107 comments ↓

#1 @crazyfasteddy on 07.02.14 at 8:45 pm

What do you make of this?? You’re richer than you think? So that 165% debt levels are are kids I guess..“@MoneySenseMag: If you had the $, would you pay off your home? Rich Canadians choose not to, Investors Group study suggests: http://ow.ly/yI5H2”

#2 Drunken Stupor on 07.02.14 at 8:56 pm

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

Just wondering when would we see similar moves in the likes of GVA or GTA.

Also, I thought you might be mentioning the latest BIS warnings… as per link above

#3 Financial Poodle on 07.02.14 at 8:58 pm

Hmmm… I’m kinda thinking George the Mountain Goat should wait a bit longer before buying. I personally think that prices that have started to slide around the county’s edges will work a little more at the interior, and his town might see another 10-20% slippage? OR… make an offer that will not only make the seller cry, but make them want to reach over the table and punch Geo. Either way, he *does* seem to be in good shape to take advantage of the current/near future market.
Good for him.

#4 Babblemaster on 07.02.14 at 9:00 pm

Can prices go lower? That is the relevant question and the answer should dictate whether to buy or not. Another factor is whether your job is safe or not.

#5 Flawed on 07.02.14 at 9:03 pm

Here in BC the teachers are on strike. I have never in 15 years of listening to politics on the radio heard so many pissed off people at the Public Sectors salaries, pensions and benefits something most of the private sector – who funds the public sector – will never receive.

Class Warfare has begun right on schedule.

And here is how your dog dollars…….I mean tax dollars are being spent Garth. They want you to now walk 5kms past 20 city garbage cans carrying your dogs poop. Then when you get home you are supposed to empty said poop into your toilet and flush the dog poop. No mention as to what you are now supposed to do with the poopy bag.

http://www.huffingtonpost.ca/2014/07/01/coquitlam-dog-waste_n_5549632.html

The public sector workers making decisions like this make over 100K per year. Can’t imagine why class warfare of public vs private has begun.

#6 Saskatoon Ian on 07.02.14 at 9:06 pm

Definitely buy. You have saved up long and hard and are looking for a modest house that you can certainly afford while continuing a decent retirement savings rate even with an interest rate increase. You earned and saved your money. Might as well use it now.

#7 JSS on 07.02.14 at 9:13 pm

What is the typical cap rate on a trailer?

#8 mathman on 07.02.14 at 9:14 pm

Sounds like George lives in Revy!

The challenge with our home and native land, is Gov’t policy makes anyone with a heartbeat feel entitled to owning a home with – not a shred of financial literacy, a downpayment or a sense of the risk. CMHC is the punch and low interest rates are the booze, and despite countless examples that this is not a good strategy, we are drunk in this country. We have subprime everywhere, call a spade a spade. We have ARM’s, a legion of would be Donald Trumps buying 3,4,10 condo;s etc.

On the flip side, the entrepreneur, who will employ people and hopefully many people, can’t get a dime from the banks. There are programs out there, but it’s not easy. The homeowner is generating short term economic growth by taking on debt but the entrepreneur has the potential to create exponential economic growth with no time limit. We are creating growth through artificial means, and not through innovation.

Ontario has become the province of entitlement, the only thing the gov’t has raised is their own salaries and gold plated pensions. The housing market will crash, and once I’m asked to pony up for the stupidity, I will be on the first plane out of here.

#9 Pope Nosty666mrVlad the Snugglebombed on 07.02.14 at 9:14 pm

Interesting post. Proves that people can be happy without having to buy a McMansion just to impress their relatives (and being hopelessly in debt).
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#89 Nemesis on 07.02.14 at 12:30 pm — “#MatchStickMenAreAmateurs.” Ahh but Nem dear boy, there are always many sides to every story. Admittedly, this may be before your time, however here is my take on #MatchstickMen.

Bear in mind that I am one of those crotchety, curmudgeonly, tragic and broken down repugnant old geezers, farting in my cereal and listening to ZZ Top for my Frank Sinatra – Dean Martin moments. What’s left of my brain went thru its final fracking moments decades ago — enjoy! BTW, The Pythons are back!

#108 The Man from Alcan on 07.02.14 at 5:55 pm — “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.”

As with Nemesis just prior, there are always two sides to every story. To some extent, it’s not how much junk food one eats, it also includes how much physical exercise one would need on a daily basis to keep one’s weight in check.
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Starting Small The UN has begun to assume control of US borders, which could be combined with this. ISIS — Go west, young man; Bitcoin for oil? Ukraine pix The money-junkies, who pay for and control the m$m doesn’t want these pix out in the public’s eye, Gazprom in Argentina and up and ready to fight by mid-July.

#10 Drunken Stupor on 07.02.14 at 9:19 pm

Garth, or how about this? Would think this sorta thing could get you going ;-)))

Aparently about half of the population doesnt consider mortgage to be a ‘debt’????

http://www.huffingtonpost.ca/2014/07/02/mortgage-debt-canada_n_5551820.html?utm_hp_ref=canada-business

#11 hohoho on 07.02.14 at 9:20 pm

> And people wonder why they are paying 20% on their credit cards. He’s not screwing the banks, he’s screwing the other cardholders …

same with the people who try to screw the government, thanks for racking up the pensionable time that the rest of us have to pay!

#12 Mic on 07.02.14 at 9:25 pm

Does anybody else perceive that there are less smart ass (donkey) comments from Realturds on this blog lately? Are they hiding in holes or trying to run away from this RE mess?

Re: 30 – 40% price decrease …I expect to see a 70% price decrease in Ottawa …yes, seriously!

#13 Van Isle Renter on 07.02.14 at 9:26 pm

Teachers strike in BC is a big deal. No $$ to educate kids but they have $250,000,000 to give to David Suzuki, Al Gore and Tom Steyer to buy unicorn fart (Global Warming) credits. Creditr that they pay $40/tonne for that can be bought in Eurspe for less than a buck.

It just shows that the BC government, like Obama, have thrown in the towel on dealing with real problems and much prefer to tackle imaginary ones.

#14 Cici on 07.02.14 at 9:28 pm

Great post Garth…love your humour tonight.

#15 Ret on 07.02.14 at 9:29 pm

If you have a decent down payment and equity in the trailer, 3.09% on a 5 year fixed sounds high.

If you are creditworthy and have a decent down payment, negotiate the heck out of the mortgage conditions, fees, and the interest rate. Shop around for sure.

The bank can also re-negotiate the terms of that trailer loan too if they want your continued business.

If you choose to sell that trailer now or a year or so from now and put the proceeds into paying off some of your new mortgage, the bank can take a flyer on those early closing and interest rate differential penalties for winding up the trailer mortgage. Everything is on the table and open to negotiation.

Negotiate, negotiate, negotiate.

#16 Yuus bin Haad on 07.02.14 at 9:29 pm

I thought we were only allowed one question and was saving mine up.

#17 Nemesis on 07.02.14 at 9:34 pm

#IAmSoGoingToBePunishedForThis. #What’sWrongWithTrailerParkLivin’!?! #TheyHaveChoirs,Too. #YaKnow.

http://youtu.be/6mgFgKuvN5k

[CelebrityTipsForHillBillies: It’s usually not such a GreatIdea to stockpile your propane in the trailer.]

#18 mathman on 07.02.14 at 9:40 pm

With wedding season in full swing, and after the handshake and typical what do you do’s/have any kid’s/where do you live, the topic always comes back to RE. I tell people where I live, which gets me instant street cred, then I mention my wife and i rent, the looks are priceless. Confusion and WTF being the most common.

The majority of people can’t comprehend why two people, one with their own business and the other gainfully employed would ever rent. The odd person or two we meet, is in the same boat and rent, they tend to be open minded and very financially literate. They value things other then pristine landscaping and the latest outdoor patio furniture from Restoration Hardware.

What people fail to realize is the gov’t/the media/marketers/the parents, have driven in them so deep the idea that homeownership is what you do and renting is the devil, that they are unable to see the other side of the coin. They lack perspective in a lot of cases or only gain it after it is too late (two leased cars/two kids and a big mortgage in burlington and a wonderful two hour commute, oh the joy!)

It is a lifestyle choice for many people and nothing to do with their income or net worth. What they also don’t see is we live debt free, have never said “I can’t afford that”(within reason), have enough savings/investments to cover our incomes for five years and live in a really nice place in an incredible neighbourhood. We also didn’t get into a tiff on how much to give in the envelope.

Perspective is hard to gain however when everything only ever points to one side of the coin.

#19 Cranbrook on 07.02.14 at 9:42 pm

You must be talking about Golden bc. The Kootenay’s are struggling right now!

#20 Andrew Woburn on 07.02.14 at 9:46 pm

I was in the real estate development business in Victoria in the early eighties when TS really hit TF. One thing about BC, and I don’t think it has changed much, is there is no security in real estate outside Vancouver and Victoria and even Victoria is wobbly. The small towns around BC were killed in the 80’s downturn because they don’t have much of an economy to start with and few jobs. We had a rental development in Nanaimo that went from 100% occupancy to 40% in six months. People lost their jobs or had their hours cut and moved home with Mom or doubled up. It came so fast it felt like a train crash.

I don’t think the downturn will hit that fast this time but real estate in resort towns is always a little iffy. My advice to George would be to make sure that you are really committed to staying where you are. Next, decide what the price levels in your area were like when interest rates were more normal, say 2005. Are prices approximately back to those levels? Next, could you build the house you want for what it will cost to buy? If you don’t like the answers, buy a bigger trailer. Anyone who mocks you for buying a trailer is a fool. Its the kids who mortgage their future and their soul for the sake of their identity who are the fools.

#21 Happy Renting on 07.02.14 at 9:47 pm

Way to go, Mountain Man! I don’t doubt that the blog dogs tore you a new one two years ago, good for you for taking the sensible advice and being good natured about the savaging received in the comments.

Yes, RE has dropped a lot, but here are the real questions: are your jobs stable? Will you stay 10+ years? Does the rent-to-price ratio look good? You already stated there are favorable mortgage and payment numbers in your favor, and that prices are low enough you’d be willing to pay them. With a kidlet (congrats!) it seems like it is the right time in your life, too. Don’t overly fret that prices may drop further. They may, they may not, but if things look good now you might as well lock in, as you’re not actually vultching a good deal until you buy.

#22 hohoho on 07.02.14 at 9:48 pm

> … Don’t think so. With all the debt out there at all public and private levels, rates can’t climb.

Not so. gov debt is mostly 5-10-30 year fixed rate. once the budget is balanced rate increases have minor impact, especially if it is still below the previous bond rate.

in the last few years a bunch of 8-15% 30 year bonds just got re-financed (for 30 years) at 2-4% and 6% 10 year bonds got re-financed at 3% …

#23 Jsan on 07.02.14 at 9:52 pm

What? House appraised for 875,000, one hundred showings and zero offers? This is a travesty! This, this, this, can’t happen? Shouldn’t there be offers hundreds of thousands over the asking price? Isn’t that how real estate is supposed to work?

“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/

#24 Banjopete on 07.02.14 at 9:55 pm

The realturds are probably out looking for real work. Despite the National Propaganda stories, maybe things are burning up like most of us suspect.

To mountain man I say why buy? You’re probably in a position to bargain for rent with money in the bank and good jobs in a small town, you’re an ideal tenant. This way you can keep your savings rate, and then have even more options in ten years.

I had to laugh at the slight grammatical error in there garth, “pumping my wife….. or pumping my wife’s rrsp and tfsa?”

#25 Yogi Bear on 07.02.14 at 9:57 pm

#13 Van Isle Renter

Are you kidding? The BCTF is the most militant, ideological and obtuse public sector union in BC and maybe the country.

They are everything that’s wrong with public sector unions and make the others look bad by association.

#26 Happity on 07.02.14 at 9:58 pm

It’s not different there, prices will go lower, especially when the lower rain land tanks and cow town waddles.

#27 rosie "moving forward" in the knowledge that, "this won't end well" on 07.02.14 at 10:02 pm

Somebody’s getting moody.

http://www.huffingtonpost.ca/2014/07/02/moodys-ontario-debt_n_5553379.html

#28 al on 07.02.14 at 10:03 pm

Great skiing and beautiful scenery in Revelstoke but too far away from major urban centres. Whistler scrapes by on weekend Van and Seattle visitors. Cowtown is 4-5 hours over Rogers Pass. Have fun with that on a snowy friday night going to the chalet. Wait to buy, it will get worse.

#29 Mark on 07.02.14 at 10:09 pm

“Does anybody else perceive that there are less smart ass (donkey) comments from Realturds on this blog lately? Are they hiding in holes or trying to run away from this RE mess?”

Yeah I’ve noticed it a lot too. Here, and on the RFD forums, where a few Realtors (and one “economist” also a vice president of a RE management firm who had a particular love of libelling Garth) basically spammed/trolled/libelled a person with significant expertise (with my same namesake) off the forum.

The ‘take away’ message in it all is that the RE market must be hurting if they have all this time to spend on-line, rather than far more useful endeavours.

#30 Mark on 07.02.14 at 10:12 pm

“Not so. gov debt is mostly 5-10-30 year fixed rate. once the budget is balanced rate increases have minor impact, especially if it is still below the previous bond rate.”

My local community actually entered into an interest rate swap with RBC to swap new long-term borrowing for short-term interest rates. Why? “to take advantage of lower interest rates” was the reason offered up by the City financial administrator. City Council actually fell for it. Don’t know about Canada, but in the US, there has been a progressive move to shorten debt maturities on government debt.

#31 takla on 07.02.14 at 10:12 pm

got my eye on a [email protected] the moment that has dropped 50% in the last yr.Problem is I feel this one can go lower but have to admit its a bit nerve racking laying in the weeds waiting for the next price drop,haveing already tipped my hand to the realtard who has the listing.

Hopeing for another 10-15 % drop can cause extreme anxiety and this one has an actual house….couldn’t live in a trailer.

#32 . on 07.02.14 at 10:13 pm

Hey Garth,

What are your thoughts on airbnb and other similar start-ups that have been gaining a lot of traction?

Basically rent out your apartment/condo/house on a per day basis and make a killing.

Are they a viable option to offset the costs associated with buying a place and maybe even payoff your mortgage sooner?

#33 Aggregator on 07.02.14 at 10:23 pm

#27 rosie

Credit rating agencies have lost all credibility. Seriously, nobody cares what they say anymore. Everything you’re seeing is being done to force pension funds to buy government and provincial bonds, and if that means rigging ratings to look positive (because pension funds by law can’t buy low rated debt), then that’s what the gov’t will do.

They’re going after pensions savings now because that’s the only real money left. So say bye bye to the purchasing power of your retirement savings because it’ll be debauched by the time you use it.

#34 Inglorious Investor on 07.02.14 at 10:25 pm

It’s unfortunate that a small grouping of analysts on Wall Street can have more influence over Ontario’s budget than 13 million Ontarians. But if that’s what it takes to restore fiscal sanity to this woefully mismanaged polity, so be it.

#35 John Prine on 07.02.14 at 10:25 pm

The public sector workers making decisions like this make over 100K per year. Can’t imagine why class warfare of public vs private has begun.

VERY few public sector workers make over $100K management like in any other sector is paid well. I worked over 20 years in the public sector as a qualified technician and never made over $55K. My wife worked for a Telecom related business and made over $100K and got lots of bonuses, company car, trips, stocks etc..

#36 Mountain Man on 07.02.14 at 10:27 pm

Hey Garth. Thanks for addressing my dilemma and giving some advice. Can you post a link to the blog entry you mentioned on how to write an offer that ‘will make sellers cry for mercy’? I would like to read that. Cheers.

And Ret, thanks for the advice. I didn’t know there was so much negotiating possible with the banks. I’ll grind them to see what I can get!

Ciao the mountains!

#37 Inglorious Investor on 07.02.14 at 10:30 pm

Yogi Bear on 07.02.14 at 9:57 pm

“The BCTF is the most militant, ideological and obtuse public sector union in BC and maybe the country.”

You think the Ontario Teachers Federation is any better?

“They are everything that’s wrong with public sector unions and make the others look bad by association.”

These public sector unions, especially Teachers are far to politically powerful, the main result being engorged, lazy teachers and students starved of real education resources. A good argument against the very existence of public sector unions.

#38 45north on 07.02.14 at 10:31 pm

But when prices have already caved by a third, it’s time to seriously vultch.

prices in Cape Coral Florida had caved by a third when my brother-in-law bought. Then they caved by another third.

It’s not Florida. I have never believed what happened in the hardest-hit US areas will be replicated here. American prices, on average, fell 32% – enough to destabilize most of the world. — Garth

#39 Freedom First on 07.02.14 at 10:36 pm

By George, he’s right!

It’s always in the numbers. And Garth saying brave is right on the money.

Buying anything or re-balancing is not about worrying if an asset is at the absolute high price, or the absolute low price. Selling high is always good, and buying low is always good. Stick to Garth’s formula for asset distribution, in buying and re-balancing, and things will work out good. Just be wary of sales people, [email protected], co-workers, the media, the Gov’t., and don’t marry a house worshiper, especially if the MIL is the same.

Personally, I am more anal than Garth’s formula, as I didn’t buy my first property at 34 until my net worth was higher than the cost of the house. I am conservative. Like right now. I re-balanced after the gains in the market during Dec/Jan2014, and am overweight cash. Brokers have to always invest for their clients. Their boss demands it. It is a distinct advantage for an individual that can take profits and practice patience. Makes the market corrections more pleasant.

#40 Inglorious Investor on 07.02.14 at 10:38 pm

#35 John Prine on 07.02.14 at 10:25 pm

“I worked over 20 years in the public sector as a qualified technician and never made over $55K.”

Nothing personal, Mr. Prine, but if you were a union member you were likely paid more than the value of your work warranted. If your wife made over 100 K in a private enterprise, then she was likely paid, more or less, fair market value. Apples to oranges.

#41 Suede on 07.02.14 at 10:39 pm

Who likes insurance?

VIX closed today near 52 week and near 5 year low. I’m throwing down a crap shoot bet. Question is 3 months or 4.

October is crash month. So why not

It’s either that or tell my wife i have some spare cash and then she’ll buy some shoes.

“Baby, why own a Louis Vuitton or Coach purse when you own the ETF that holds those companies. You are an OWNER of the company.”

**blank stare**

“Nevermind, get back to House Hunters International”

:)

she’s a sweetheart

#42 TurnerNation on 07.02.14 at 10:47 pm

What about the Squamish Sasquatch?

Or the Samsquanch out in NS:

http://www.youtube.com/watch?v=aJphX1WtVSY

#43 Inglorious Investor on 07.02.14 at 10:48 pm

#33 Aggregator on 07.02.14 at 10:23 pm

“They’re going after pensions savings now because that’s the only real money left.”

As I’ve said before, if real money continues to dry up, they will systematically and in draconian fashion hunt down every single dollar they can get as they continue to sacrifice the people in order to save themselves.

#44 Sheane Wallace on 07.02.14 at 10:56 pm

So Garth you think 700 k SFH in Toronto is ‘affordable’?

Maybe if the dollar declines by 60-70 %.

Cheers to both savers and buyers.

#45 KommyKim on 07.02.14 at 10:57 pm

RE: #24 Banjopete on 07.02.14 at 9:55 pm
I had to laugh at the slight grammatical error in there garth, “pumping my wife….. or pumping my wife’s rrsp and tfsa?

Well, he has a kidlet and cash flow, so he’s obviously been doing both.

#46 KommyKim on 07.02.14 at 11:09 pm

RE: #36 Mountain Man on 07.02.14 at 10:27 pm
Can you post a link to the blog entry you mentioned on how to write an offer that ‘will make sellers cry for mercy’? I would like to read that. Cheers.

These links might help:

http://www.greaterfool.ca/2013/04/01/offer-like-a-man/

http://www.greaterfool.ca/2008/11/26/how-to-be-a-vulture/

http://www.greaterfool.ca/2013/07/12/how-to-pick-a-realtor/

#47 Flawed on 07.02.14 at 11:13 pm

#43 Inglorious Investor on 07.02.14 at 10:48 pm
#33 Aggregator on 07.02.14 at 10:23 pm

“They’re going after pensions savings now because that’s the only real money left.”

As I’ve said before, if real money continues to dry up, they will systematically and in draconian fashion hunt down every single dollar they can get as they continue to sacrifice the people in order to save themselves.

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

Too bad for greedy corrupt govt they can’t steal private bitcoin keys that can hold as much value as you wish to put on them. Oooops….did I just say that? I guess I must be a money launderer like HSBC. Please send me my 1.2 billion dollar fine for the 500 million in drug money I just laundered cuz I know I won’t go to jail right?

For all you “Bitcoin is for laundering drugs”. Think again. ALL of the creation of those illegal drugs was done with US Dollars. Bitcoin doomers leave out that part. They also leave out the banks that launder the trillions a year in drug money. And you can’t roll up a bitcoin and snort the coke you bought with it on silk road. But you can with a US dollar.

#48 Kits388 on 07.02.14 at 11:15 pm

Whatever … Garth may be right in some jurisdictions but he may missed the boat so far in BC …. Like, in a huge and painfully awful way. Yes, Garth still does not acknowledge the extent of the HAM impact … Often implying that people who raise the issue are racists. Well, I saw another West. Van real estate agent today and apparently the bidding by HAM in certain areas of West Van has never been higher. Just crazy. If you happened to want to live in one of those areas and listened to Garth then you are screwed. The average price is now $2.5m.

Mansions in West Van are hardly indicative of BC real estate. And maybe your agent has an agenda. Just saying. — Garth

#49 AACI Home-Dog on 07.02.14 at 11:25 pm

#7 JSS…What is the typical cap rate on a trailer?

I figure rent at $1k/mo, less say $3k pad rental, $1.5k taxes, ins & mtce, which leaves $7,500 net income into $85k invested = 8.8% cap rate, or his annual return on “investment”.
I am guessing he is in Revelstoke, BC…similar market here where I am…

#50 Setting the Record staight on 07.02.14 at 11:34 pm

“These public sector unions, especially Teachers are far to politically powerful, the main result being engorged, lazy teachers and students starved of real education resources. A good argument against the very existence of public sector unions.”

Even FDR did not support public sector unions.

#51 winterpeg on 07.02.14 at 11:39 pm

Great post as usual.
As some others have mentioned, MMan, wait a little longer. Prices will likely go down more. Kidlets don’t care about the size of their domain until they’re older. Slap an addition onto it. You probably live where folks dream of living.
But start the “vultching” research for now as recommended. You seem sensible enough to buy another , well… sensible home. (Not over the top expensive)
I live in a cracker box size bungalow < 700 squ ft.A trailer would be roomy, and is actually one of my considerations for more room. A bit chilly in the Peg, though manage. How much do you want for it now? How about 85,001 dollars. (Peggers are notoriously cheap)

#52 Mister Obvious on 07.02.14 at 11:59 pm

#18 mathman

“The majority of people can’t comprehend why two people, one with their own business and the other gainfully employed would ever rent”
———————————

And yet… that’s exactly the kind of renters they would seek (and expect to find) if they themselves were looking to fill a revenue property of their own.

I am reminded of an episode of the ancient sitcom “All In The Family” where Archie proclaims it’s normal and expected for young men to seek sex out of wedlock but the same certainly did not apply to young women.

But Archie hadn’t thought it out too far and was unable to say exactly who these young men were expected to have sex with.

#53 Son of Ponzi on 07.03.14 at 12:08 am

#30
My local community actually entered into an interest rate swap with RBC to swap new long-term borrowing for short-term interest rates. Why? “to take advantage of lower interest rates” was the reason offered up by the City financial administrator.
—————
Same reason was offered by the Treasurer of Orange County before it went belly up in the 80s.
Funny, the guy’s name was Citron.

#54 Mike T. on 07.03.14 at 12:10 am

I think it is either Revelstoke or Golden. The ski hill was built in Revy right in line with this case however leading me to think it is Revy.

Great place to ski, but then so is Kicking Horse.

Real estate will far further there in my opinion. When the I told you so time comes.

#55 Inglorious Investor on 07.03.14 at 12:13 am

#47 Flawed on 07.02.14 at 11:13 pm

“And you can’t roll up a bitcoin and snort the coke you bought with it on silk road. But you can with a US dollar.”

Doesn’t that give the US dollar real, intrinsic value? ;)

#56 Joseph R. on 07.03.14 at 12:30 am

#41 Suede on 07.02.14 at 10:39 pm

If you believe the market will crash, then put a “collar” on your stocks, that is a “put” option. That means that you can get an investor to buy your stock at a set price and walk away with a bag full of cash.

http://www.investopedia.com/terms/p/putoption.asp

However, It’s going to cost you a set fee per share but at least your equity is safe.

#57 Brian on 07.03.14 at 1:14 am

Who cares? It is in the middle of nowhere. Let us when that happens in urban metro areas ie Toronto and Vancouver.

#58 Kits388 on 07.03.14 at 2:07 am

Garth, I quite like you and would have voted for you if I lived in the riding where you ran for federal politics. You are tenacious and will never admit you are wrong. Not sure how the Mrs. deals with perfection. The most amazing thing I read tonight that you wrote is that “mansions in West Van are not indicative of BC real estate.” Yes, West Van is not indicative of the BC real estate market as a whole but I am not talking about mansions. We toured a home today way out in Eagle Harbor … The pictures looked ok but it turned out to be a house you would not let your dog live in … list price is $1.14m. Crap houses on reasonable lots are going for $2m plus. To find an old house that Asian buyers do not like will cost at least $1.8m and trust me, these are not mansions. BTW, the agent may have an agenda but I live in Sentinel Hill and can tell you from legs on the ground experience that there is a foreign investment invasion happening. I suppose that makes me a racist. The stupid thing is I can afford to buy but refuse to because it is simply crazy.

#59 Exurban on 07.03.14 at 2:19 am

#35 John Prine

I live in the Tri-Cities myself, I am a public sector employee, and I can assure you that the officials making these idiot decisions about garbage and recycling are indeed making over $100k a year. BTW just as irresponsible consumers are spending every dollar they can borrow, Lower Mainland municipalities flush with increased property taxes are living the high life like there’s no tomorrow.

#60 nubbers on 07.03.14 at 2:44 am

Mountain Man,
I sure wish I was in an area where it was time to buy (would have so much less earache).

It is worth remembering at this time that the housing market is very inefficient i.e. unlike, say, shares in the stock market, there is a big difference between the maximum and minimum price that a house might sell for. I bring this up because because I have bought 3 times in my life, and every time I have paid the asking price. On every sale, I have accepted less than the asking price (Doh! – just kick me, it won’t happen next time.).

A question to the audience at large – can anyone quantify just how inefficient the house market is? I guess the answer could be a bit fuzzy and would have to be qualified to remove extreme examples. Perhaps someone could come up with something like ‘95% of sales are spread over a spread of 25% (this is just my guess)?

#61 H.E Haw on 07.03.14 at 3:32 am

this good ol’ boy needs to get financially literate and hedge them there bets….yous sell the trailer and the family heirloom banjo, and buys a fully levered home quick now….but yous keep the fiddle and jaw harp just in case the market turns against yous and yous need to busk to make ends meet

#62 Confused on 07.03.14 at 4:15 am

It’s not Florida. I have never believed what happened in the hardest-hit US areas will be replicated here. American prices, on average, fell 32% – enough to destabilize most of the world. — Garth

I’m confused now. I think Toronto prices will go up another 15% before there is a correction of about 10-15%. Should I buy now? After all, no one including you thinks the market will correct by 30%.

#63 World Traveller on 07.03.14 at 5:06 am

Hey, did anyone stand in 40 degree temps to save $12 on Canada day?

https://www.youtube.com/watch?v=-Y4zDip_c28

Ironically, they are lined up in front a Winners, not!

#64 Priced Out on 07.03.14 at 6:38 am

I am priced out of a decent home since 2008 because the “experts” told us to wait for a correction in prices that would make RE affordable to low income earners such as myself. 6 years on I am still renting.

What do you earn? Where do you live? — Garth

#65 Frustrated Kiwi on 07.03.14 at 6:49 am

I love stories like this, where good people make good decisions and it pays off. MM: listen to Happy Renting. Now may be an OK time to buy. It’s hard to time the market and there’s a lot to be said for being done with the stress of watching house prices. Sure, prices may go down a fair bit more, but you plan to stay put for a while, right?

#66 Realtor # 1 GTA on 07.03.14 at 7:19 am

Crash in 2016 or 2017?

We are always two years away from the crash being two
Years away.

Depends where you live, obviously. For George, it’s now. More importantly (as I continually point out), those who expect a clone of the US experience will be disappointed. I know that includes you. — Garth

#67 LL on 07.03.14 at 7:36 am

To #20 – Andrew Woburn

…”We had a rental development in Nanaimo that went from 100% occupancy to 40% in six months”….

Occupancy from 100% to 40% in 6 months????

I am looking to buy a foreclosure (townhouse, condo) and rent it maybe 1 year and resale the place for the assessment value.

I knew Nanaimo is 8.3% vacancy but did not know it went down so much!!!

I will contact some Management Property first and ask how is the renting.

#68 Vlad on 07.03.14 at 8:33 am

Buying a trailer on rented land has to be the worst investment one could make. I know a woman who did this with small down payment and long term mortgage. After five years when she went to renew, the bank refused. A trailer is a deprecating asset and she had no equity in the land. She lost everything. Caveat emptor!

#69 TurnerNation on 07.03.14 at 8:35 am

Today’s Modern Blog Dog is more likely an erudite debonaire bon vivant ? Who knew.

#70 David W on 07.03.14 at 8:39 am

#12 Mic

In what world do u see a 70% drop in Ottawa? 30% maybe if we’re lucky.

#71 Paul on 07.03.14 at 8:46 am

#62 Confused on 07.03.14 at 4:15 am

It’s not Florida. I have never believed what happened in the hardest-hit US areas will be replicated here. American prices, on average, fell 32% – enough to destabilize most of the world. — Garth

I’m confused now. I think Toronto prices will go up another 15% before there is a correction of about 10-15%. Should I buy now? After all, no one including you thinks the market will correct by 30%.
———————————————————-
Actuality if you put 5% down and that’s all the money you have and there is a 20% decline in prices it’s a 400% correction for you.

#72 Chickenlittle on 07.03.14 at 8:51 am

I stand corrected. I can’t believe they have liquid lip liner!
Wow! Financial AND beauty advice! You are a true renaissance man, Garth.

#73 LL on 07.03.14 at 9:04 am

#20 – …”The small towns around BC were killed in the 80′s downturn because they don’t have much of an economy to start with and few jobs”….

Ha..this was in the 1980 years…ouf!
Hopefully it’s better now.

#74 Paul Singh on 07.03.14 at 9:06 am

Hi Garth,
Love the blog I’ve been reading it 4/5 years now. I live in
Surrey, BC and have a joint income of $80k. We are in our early 40’ss, 3 kids and wonder when the heck to buy here. Not seen any price decreases lots of people just pass on basement rent hikes when they see fit. I’m looking to buy and want to stay put in the house for good.
I was wondering if you could shed some light on the market here In fraser valley Delta/ Surrey as the realturds are full of shite and lie out there back teeth.
Are you please able to do a dedicated artical on this market segment not quite HAM but lots of immigration attracting area from what we hear?

Thx Jim Singh

#75 Smoking Man on 07.03.14 at 9:07 am

#64 Priced Out on 07.03.14 at 6:38 am
I am priced out of a decent home since 2008 because the “experts” told us to wait for a correction in prices that would make RE affordable to low income earners such as myself. 6 years on I am still renting.

What do you earn? Where do you live? — Garth
…………

It’s your own damn fault, waiting for experts.

No such thing as experts when it comes to cyrtal ballmenship.

You make bet, you live with it.. Yours was to sit on sidelines.

And why are you low income earner.. World is full of opportunities, just add two balls, and press the button that says go…

People who make bets solly on experts are in reality avoiding responsibility.

#76 Opportunists on 07.03.14 at 9:07 am

Imagine a business in which you made money on people coming and people going. For example, you run a mobile midwifery (Baby Bus) and a full-service funeral business that comes to your door (Dead and Gone).

In a sense, if and when (emphasis on when) there is a real estate correction, the purveyors of real estate will still make money. Properties that have fallen in value and which have destroyed the equity of the soon-to-be house limp will need to be disposed of from the bank’s books and so, enter the Realtors ©.

True, not as many of them may be needed because there won’t be as many sales and many of them will be wiped out but houses will still be sold to people looking for deals or smaller digs. And of course, commissions will be paid: coming and going.

Scum.

#77 Sean on 07.03.14 at 9:08 am

OK Garth, interesting answer to MM… and I would LOVE if you would give your thoughts on the following… when is it time to vultch a Whistler, Squamish or a Canmore? The key difference of course being that while prices have fallen 30% or more (in the cases of Whistler and Squamish) we are still not exactly talking cheap. Additionally, in the case of those two towns, they are pretty much on the outskirts of Ground Zero – The Mouldy City. Will the Van crash further kill Squamish and Whistler, or will the international crowd (not HAM!) cushion the blow? Thoughts would really be appreciated!

#78 Toronto_CA on 07.03.14 at 9:08 am

Nice US Job numbers. The ADP pre-release survey was right. QE should be on its way out and bond prices rising to almost normal if that keeps up.

#79 Jim Singh on 07.03.14 at 9:08 am

Hi Garth,
Love the blog I’ve been reading it 4/5 years now. I live in
Surrey, BC and have a joint income of $80k. We are in our early 40’ss, 3 kids and wonder when the heck to buy here. Not seen any price decreases lots of people just pass on basement rent hikes when they see fit. I’m looking to buy and want to stay put in the house for good.
I was wondering if you could shed some light on the market here In fraser valley Delta/ Surrey as the realturds are full of shite and lie out there back teeth.
Are you please able to do a dedicated artical on this market segment not quite HAM but lots of immigration attracting area from what we hear?

Thx Jim Singh

#80 Toronto_CA on 07.03.14 at 9:34 am

Bond yields rising, not prices. Coffee first, then comment.

#81 Smoking Man on 07.03.14 at 9:54 am

#77 Toronto_CA on 07.03.14 at 9:08 am

Nice US Job numbers. The ADP pre-release survey was right. QE should be on its way out and bond prices rising to almost normal if that keeps up.
……..

Full time jobs drop by 50%,part time Jobs surge by 800k

Rates will never rise till, all the slack in the Labour force is absorbed and workers are in a position to demand more money, the employer having a difficult time replacing him.

Look for rates to rise then… Not a second sooner..

#82 Stickler on 07.03.14 at 9:56 am

@ #13 Van Isle Renter on 07.02.14 at 9:26 pm

Teachers strike in BC is a big deal. No $$ to educate kids

————————————

Um, they do get great compensation…no more raises!

In fact, cut public sector compensation across the board, across the country.

Reality called. It wants to come back to Canada…at least for the summer.

#83 LL on 07.03.14 at 9:57 am

…”Buying a trailer on rented land has to be the worst investment one could make. I know a woman who did this with small down payment and long term mortgage. After five years when she went to renew, the bank refused. A trailer is a deprecating asset and she had no equity in the land. She lost everything. Caveat emptor!”…

In Qc right now, for most trailers for sale on the market, the asking price is lots over the assessment!

And not all of them had renovations!

#84 Chris on 07.03.14 at 10:14 am

Big fan of the site, and the insight. Last year I bought an acreage outside of Cochrane, AB for $400+. It’s a beautiful place that my wife and I both dreamed of owning. A year later, we still love it. When we looked at selling out home last year in town, the realtor gave me the bad news. My 1978 4-level split that we bought in 2008 for $310 (and required another $25k in repairs) was now going to list for $289k, probably sell at $280k (minus fees, blah, blah blah). We decided to hold on and rent it. We rent it out for $2k/month (which seems outrageous, but the rental market is crazy right now). I got the property reassessed last month, and the same realtor gave it a price of $359k, with the likelihood of selling for more. Unfortunately, we just signed a year-long lease with new tenants, and we want to honour that. I couldn’t believe my ears that my home jumped that high in just a few months. Let’s hope it sticks long enough to sell when the lease is up. Things are still crazy here in Calgary.

Nice. But because a realtor gave you a fat price in order to secure a listing does not mean that is market value. — Garth

#85 Jeff in Moose Jaw on 07.03.14 at 10:20 am

#18 mathman – I agree and run into this.

So the DOW is at a record – great okay so lets raise the interest rates!

#86 Daisy Mae on 07.03.14 at 10:30 am

#5 Flawed: “…Then when you get home you are supposed to empty said poop into your toilet and flush the dog poop. No mention as to what you are now supposed to do with the poopy bag.”

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

As usual, we, as a society, go from the sublime to the ridiculous….

Here’s a thought! Just don’t do it.

Years ago we had push mowers. Homeowners regularly walked around their lawns picking up rocks, sticks, poop…..and then mowed their lawns. No one made a fuss. It was just what we did. ;-)

#87 Calgary Rip Off on 07.03.14 at 10:52 am

It may be now that those in Calgary who want to buy cant.

http://www.calgaryherald.com/business/Record+June+Calgary+resale+housing+market/9996669/story.html

These record prices only help those who bought long ago and are ready to move elsewhere where prices are mostly lower. Everyone else suffers due to this price expansion. Higher taxes, high costs, everything.

#64 is a perfect example of what waiting will do if you are in a position to buy at present. Prices may go too high to afford. People who are in this situation should make absolutely sure that prices wont go beyond their reach, which is a gamble. So you wait all the while wasting money on rent? The argument that interest rates skyrocketing justify this rent paying seems mute. Where are the skyrocketing rates? So in the meantime the person renting if they can find a place is probably spending $18000 a year on rent, and now they have to wait so many more years so that hopefully the boomers will either sell/and/or die so that their properties are being listed and prices drop? Not an ideal strategy to acquire a mortgage.

If your rent is the same as a mortgage and a person is looking at working many more years, what is the justification to rent? To subsidize landlords? Really? Gotta love Alberta without any rental controls.

Higher prices breed more debt and elevated risk. Renters shoulder none of that. You are blinkered. — Garth

#88 Sheane Wallace on 07.03.14 at 11:44 am

81Smoking Man

Full time jobs drop by 50%,part time Jobs surge by 800k

Rates will never rise till, all the slack in the Labour force is absorbed and workers are in a position to demand more money, the employer having a difficult time replacing him.

Look for rates to rise then… Not a second sooner..
———————————-
Get you pills man, respect your originality but you are very confused.

‘Slack’ in labour force will never go away, there would be permanent high unemployment masked by doctored numbers called statistic (there are lies, dawn lies and statistic).

Rates have no relationship to employment, they are determined by:
1. in short to mid term by central banks
2. in long term by the bond market.

Inflation of important things (quality organic food, drugs, education, health care) is fact, inflation of commodities is also fact as there is GLOBAL DEMAND. So global demand for commodities and local demand for IMPORTANT ESSENTIAL SERVICES AND PRODUCTS will keep driving prices of important things up.

These are global processes and central banks in the west can do nothing about it except ignore these items in their inflation statistics.

I could not care less what the price of local hair cut or local services or GMO sh.t food is in Canada or what is the price of a computer or flat screen TV as either I don’t consume them or their real weight on the real inflation of my expenses is insignificant.

Rates will stay low until there is currency crises and then they will rise abruptly.
We (the west) think that we can export out inflation to the world and force them to accept our currencies but we would be in for a very rude awakening.

Japan’s scenario with long term zero interest rates is possible only with:
1. savings (which we don’t have)
2. room for further debt growth (which we don’t have)
3. trade surplus (which the west does not have)
4. low real unemployment

let’s not forget that the Japanese had deflation, not the stagflation that we have now (inflation + economic contraction).

The only reason for the stock market to rise is that smart people are looking to preserve their money in anticipation of the coming inflation, there are not other alternatives except gold but gold market is highly manipulated or general commodities (that oil is not going back down in price ever).

So inflation pressure is building and some point when it blows up watch out, interest rates will skyrocket as there is global bond market and obviously nobody is interested in our bonds that pay zero interest and with potential significant inflation, people can freely invest in the other actually growing part of the world AND WE CAN’T BOMB THEM INTO SUBMISSION.

So as Inglorious investor once declared: this is a fight for a larger piece of a shrinking pie IF YOU ACCEPT THE RULES OF THEIR GAME.

You are always free to invest in commodities and in the growing economies – Europe, BRICS hence the diversification advise by Garth who can’t say what I can as he would be shredded into pieces and would ‘loose credibility’.

#89 Inglorious Investor on 07.03.14 at 11:44 am

#86 Daisy Mae on 07.03.14 at 10:30 am

“Years ago we had push mowers. Homeowners regularly walked around their lawns picking up rocks, sticks, poop…..and then mowed their lawns. No one made a fuss. It was just what we did. ;-)”

I have a push mower. Bought it mainly for environmental reasons, but they cost less to operate too. And it’s good exercise. And far less noisy. No fumes. No toxic gasoline to spill. No filters and spark plugs to change. Or batteries to charge. Or cords to drag around and mangle.

However, a push mower (at least my push mower) just doesn’t cut the grass as evenly. On the other hand, I all but gave up trying to keep a golf-green lawn. I haven’t watered it in two seasons and it looks fine what with all the rain we’ve had.

However, I would recommend weed control by applying a corn gluten based pre-emergent, granular product in Spring and Fall. I’ve used the stuff for several years and nothing––nothing––else I’ve ever tried works as well.

#90 2CntsCdn on 07.03.14 at 12:04 pm

Any hints on what the name of his town is or what it might rhyme with : )? I just did a great quicky 4 day weekend vacation in Banff/Jasper/Lake Louise with amazing drives up and down the hwys out there (and I love BC from the very west coast to the Alberta border. My girl friend and I are biker/runner/skier/hiker/kayak types and after landing back here in TO last night (at 1:00 AM) and being stopped in a frickin construction traffic jam for 20 minutes (really!) I’ve decide I’m outta here. I also live in a town north of Toronto that happens to be the middle of one of the most aggressive attacks by developers I’ve ever seen. Why people in southern Ontario live here mystifies me. Yah … the job thing …. but for lower income earners do the math on how much better you could live where house prices were a third. Or for mid to higher income earners how much less income you could make and still live exactly the same (or better) lives with no (or a vary small) mortgage. Plus …. it’s really nice out there. Less people … trees …. fresh air … rivers … mtns. And towns actually feel like towns. Here we build jammed clusters of breeding boxes placed between malls or “retail centers” so big business can suck every last dollar from our bored and over stressed lives. So stupid.

#91 macintosh on 07.03.14 at 12:32 pm

Reading comments like those from ‘priced out’ gives me little hope for my generation. They pander on like purhasing a home is the only real accomplishment one could have in their life. “I can finally be complete when I have 2.5 baths and 4 guest rooms”. How unfufilling your life must be. People who haven’t traveled, have few skills and fewer good friends seem to be comforted by the ‘idea’ of a ‘forever home’. (Quotes for the difference between perception and reality).

My generation, it seems, has forgotten that there are other goals to be had in life. They just ‘want to be comfortable’, get a full HD cable package, sit back and get fat. To me that is akin to saying “you know I’d really like to start dying by the time I’m in my late 20’s. I have lost intrest in life”. I genuinely feel sorry for these folks.

Don’t get me wrong.. I love my friends and family, and I completely understand the frustration with a tight rental market. However, the prevailing mentality seems to be homeownership or certain failure. People have no confidence anymore, and often that is rightly so. The idea of a home a dog and a family gives them the confidence and identity they seek. To me that is building a life on a very shaky foundation. People find it odd that I should invest in myself and find confidence elsewhere before starting a family. Perhaps if more of society functioned in this manner we’d have less divorce and mid-life crisis. Perhaps we would have more insight and information to pass on to our children, and not just perpetuate the cycles of stupidity we cling to. Perhaps I’m wrong, but I don’t think so.

Meanwhile the so called ‘productive’ young members of society spend their days contemplating another renovation project to half-complete, or what type of addition they perceivably need on their non-productive asset. The country flounders and innovation wanes. It will all end of course, and people will look back; jaded and distainful. I have my paradigm, and it is different from theirs. Good luck everyone.

#92 Flawed on 07.03.14 at 12:36 pm

#55 Inglorious Investor on 07.03.14 at 12:13 am
#47 Flawed on 07.02.14 at 11:13 pm

“And you can’t roll up a bitcoin and snort the coke you bought with it on silk road. But you can with a US dollar.”

Doesn’t that give the US dollar real, intrinsic value? ;)

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

As it pertains to US Banks laundering a trillion dollars in drug money – yes.

#93 Flawed on 07.03.14 at 12:38 pm

#86 Daisy Mae on 07.03.14 at 10:30 am
#5 Flawed: “…Then when you get home you are supposed to empty said poop into your toilet and flush the dog poop. No mention as to what you are now supposed to do with the poopy bag.”

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

As usual, we, as a society, go from the sublime to the ridiculous….

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

With all due respect please do not lump me or my family into the world of brain dead tax dollar consuming zombies called “the govt”.

#94 Lurcher on 07.03.14 at 12:40 pm

I have another anecdote for you guys: my wife met up with another mom yesterday and the other mom mentioned they (her, hubby, 6 yo and 3 yo kids) have just bought a house in Coquitlam BC. They immigrated from somewhere in Europe last year (can’t remember where) and I think she is Canadian born. My wife says very basic house in central Coquitlam and house was listed for two months before these good folks bought it. Apparently they paid almost all cash for it. They were renting an apartment until now. Don’t know if they had money in the equity markets and cashed out or what, but the house lust continues for younger families.

#95 Aj on 07.03.14 at 12:42 pm

#12 Mic

My God man, I hope you are right. It feels like I have been holding off living at the rent’s forever. I have another year where they’ll kill me from driving me nuts or the gf will kill me from not “getting our life started”! lol

#96 Mark on 07.03.14 at 1:37 pm

” So in the meantime the person renting if they can find a place is probably spending $18000 a year on rent”

So? Not many, if any houses that one can actually buy for $18k/year of mortgage + maintenance + tax payments.

Calgary prices have been declining for the past few years, but not nearly fast enough.

#97 To The Moon.. on 07.03.14 at 1:38 pm

All asset classes are at record levels . Stocks, Bonds, House Prices, Food….

If this isn’t Inflation, I don’t know what is.

#98 Sheane Wallace on 07.03.14 at 2:02 pm

#91 macintosh

Yep,
Confidence?
While brainwashed and with small d.cks? So we need houses.

#99 Sheane Wallace on 07.03.14 at 2:07 pm

The movie ‘idiocracy’ starts to look normal compared to the reality we live in:

https://ca.finance.yahoo.com/news/canadian-home-prices-rise-5-6-per-cent-161450997.html

Canadian home prices will rise 5 to 6 per cent for remainder of 2014: TD report.

brought to you by Carl’s Jr.

#100 Panhead on 07.03.14 at 2:21 pm

#91 macintosh on 07.03.14 at 12:32 pm
Reading comments like those from ‘priced out’ gives me little hope for my generation.

Naw … you ain’t wrong, you got yer head screwed on right, should be more like you …

#101 Vancouve MLS on 07.03.14 at 2:23 pm

We bought a house 3 years ago in Langley, BC it is growing in price 2-3% every year but the amount of headache we have with neighbours, city hall, tenants, etc is just amazing. Renting was so much easier….

#102 Aggregator on 07.03.14 at 2:43 pm

As if yoga mat rubber in your bread wasn't bad enough, now there's some extra tasty wood pulp in your burgers.

There is a secret ingredient in your burgers: wood pulp

There may be more fiber in your food than you realized. Burger King, McDonald’s and other fast food companies list in the ingredients of several of their foods, microcrystalline cellulose (MCC) or “powdered cellulose” as components of their menu items. Or, in plain English, wood pulp.

The emulsion-stabilizing, cling-improving, anti-caking substance operates under multiple aliases, ranging from powdered cellulose to cellulose powder to methylcellulose to cellulose gum. The entrance of this non-absorbable fiber into fast food ingredients has been stealthy, yet widespread: The compound can now be found in buns, cheeses, sauces, cakes, shakes, rolls, fries, onion rings, smoothies, meats—basically everything.

And if you think this is bad, you ain't see nothing yet, because it'll get worse as real inflation rises, prompting big corps to use every dirty trick in the book to keep prices down.

Hopefully, one day soon parents will begin to realize the consequences of their kids future for continually subsidzing and bailing out big corps/banks. The elilte could care less what you and your kids eat and whether it causes diseases or death. It's all profit to them.

#103 GsAmazon on 07.03.14 at 2:49 pm

#36 Mountain Man

your question makes me think of this one…
http://www.greaterfool.ca/2013/10/21/how-to-buy-3/

happy pumping!

#104 Shawn on 07.03.14 at 3:04 pm

Go Canada!

With Eugenie winning today I am reminded of of one of the main purposes for dividing the world up into 200 countries in this modern increasingly mono-cultural and mono-lanquage world (If not mono it is becoming a handful of cultures and lanquages that really matter).

And that main reason I refer to, for having all these 200 countries is so that we can all have seperate people and teams to cheer at for world sports events.

I will be watching the women’s final on Saturday.

Go Canada.

#105 jess on 07.03.14 at 3:18 pm

“They’re going after pensions savings now because that’s the only real money left.”

Who are THEY…hedge/dark pools

Stealth bombs? Killer plagues? Don’t panic, just follow the money
Politicians and scientists have a vested interest in propagating panic: it’s the one superbug there’s no known antidote for
Simon Jenkins
The Guardian, Thursday 3 July 2014 19.59 BST
http://www.theguardian.com/commentisfree/2014/jul/03/what-next-from-david-cameron-factory-of-fear

=====

========
timing death
NHS cancer care could switch to private contracts in £700m plans
Private health firms ready to bid for £1.2bn worth of outsourced services

I wonder how those zero-hours contracts will fit in?

…”Nor is this Victorian-style scheme mainly confined to small firms or seasonal work. This is about household names: McDonald’s, Boots, Amazon, Abercrombie & Fitch, Cineworld, the Tate galleries and Buckingham Palace. All rely on zero-hours contracts. In the case of Sports Direct, they’re used to enforce a two-tier workforce: 90% of its 23,000 workers are on zero-hours deals, while the rest are full-time employees on bonuses of up to £100,000.

Now the zero-hours culture is spreading rapidly throughout the public and voluntary sectors. There are already up to 100,000 workers on zero-hours contracts in the health service. And the large majority of home care workers are forced to operate under these standby contracts – which have also colonised colleges and universities, reducing continuity of support for students and the vulnerable into the bargain.”…

http://www.theguardian.com/commentisfree/2013/aug/06/david-cameron-britain-dockers-line-up-back

#106 Nemesis on 07.03.14 at 4:00 pm

#Meanwhile,BackInTheHillBillyRiviera… #YouCanAlwaysCountOn… #TrailerParkSirens… #ToDoWhatComesNaturally.

http://youtu.be/Uzn5ttfPwWA

#107 gladiator on 07.03.14 at 4:05 pm

@101 Aggregator:

It gets even better! Have a look in your fridge and see if you have a jar of Kraft jam in there – it contains Dimethyl Polysiloxane, which prevents foaming.
A very stomach-friendly ingredient: also used in contact lenses, shampoos, caulking, lubricating oils, and heat-resistant tiles.

Although officially it was found to have low toxicity (although it caused skin irritations and such), then question is: why would I buy a product with mystery ingredients like this one?