Too late

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Let’s review, class. The TSX is ahead more than 9% in 2014 and 12% from this time last year. Yes, even though oil’s tanked and kinky Jian Ghomeshi along with it. Eighty per cent of major US corporations have exceeded expectations for quarterly profits, and two-thirds have topped sales estimates.

That stock market meltdown lasted a few days, blew off some froth, was reversed even before the moaning and gnashing could end. Now cheap gas, lower mortgage rates and more jobs are a giant tailwind for the Yanks. Even the Ebola-in-Texas thing is over.

The Fed seems sure to carry out its commitment to end stimulus spending in a week or two, and yet the economy’s chugging. Now the S&P is up 15% from last autumn and within a whizz of its all-time high. American unemployment has gone from 10% to 5.9% and something profound has happened to our southern neighbours.

Americans have reduced their mortgage debt by $1.5 trillion over the last six years, while we’ve bloated ours. And the savings rate there has doubled since 2007, while ours has collapsed – and some places that shall remain nameless (British Columbia) now have a negative savings rate.

Yes, our house-horniness has overwhelmed personal finances, even while the home ownership rate in the States is at the lowest point in 20 years. (It’s at 70% here, 64% there, and still on the way down.)

I mention this stuff in light of the latest survey by the Conference Board of Canada on how screwed Canadians are becoming. Most of it’s self-inflicted.

The results: 60% (including the sexy 55-64 group) say they haven’t stored enough for retirement. Ironically, most of them save. But they can’t save enough. As a result, people are pushing out the age at which they expect to stop working. Now it’s over 63 years of age, with a fifth saying they’ll never be able to retire and half believing they’ll labour part-time. That Freedom 55 stuff with martinis on the yacht? We are so not there.

You may be wondering what all these things – stock markets, the Fed, US stats and failing Canadians have in common, not to mention Ghomeshi, handcuffs and udder cream. It’s simple. Most people (especially women, says the Conference Board) are on the wrong path, and things will not turn out well as a result. Americans learned the bitter lesson. While Canadians are house-huggers and bank account addicts, the Yanks have fallen out of love with real estate and embraced financial assets.

Granted, Boomers in both countries are somewhat pooched, given that corporate pension plans have evaporated and their kids have turned into human sponges. But the risk level for Canadians seems vastly more elevated, thanks to our slagging economy, personal debt levels and horniness. As this pathetic blog has argued, real estate peaked some time ago, and will not be delivering the returns most people expect. In fact, recent buyers could be in line for painful losses. Worse, expect illiquidity – exactly what anyone within years of retirement doesn’t need.

Combine this with the findings that 60% don’t have enough put aside, that 51% couldn’t survive a week with a missed paycheque, and 40% have trouble making the monthlies, and you can see where it’s all headed. Sadly, nothing will change unless everyone understands why they need to have more ETFs and REITs, and less Moen and Miele.

But that’s not going to happen. The masses will carry on until it’s too late. The 1% (and the aspiring) will invest and earn. The wealth gap will swell faster than a broadcaster in bondage.

*   *   *

Yesterday you read a real-life example of why the BRA (buyer representation agreement) can ruin your day. Unless you happen to be a realtor. The document, pushed by organized real estate across the country as a way to ensure lame buyers don’t jerk around agents, can also entrap and ensnare unwary first-timers. Most reasonable people would never expect an agent to be owed commission on a deal they had no part of, but that’s exactly what a BRA can end up doing.

That seemed to be the case with Karan, whose story I told you. He engaged an agent to make an offer which failed. Then he bought a FSBO on his own, and received a $9,400 invoice because he’d signed a BRA potentially covering every property in the city.

After that blog post, there was considerable movement. The manager of the real estate brokerage called me to claim, “my agent introduced that property (the FSBO) to the buyer, and even sent him the phone number of the seller.” The company alleges Karan tried to wiggle out of his obligation to pay commission, “and now he’s trying to use you as well.”

Of course, I have no idea who’s telling me straight. Including Karan, who Tuesday night said he received a text from the agent saying, “I will let you go this time, but don’t ask any realtor in your life to give u any assistance.”

The horror.

145 comments ↓

#1 Jimmy on 10.28.14 at 7:47 pm

FIRST!!!

#2 North Burnaby on 10.28.14 at 7:50 pm

Yes, the warnings are certainly there.. But what do you think I should do? Sell my condo and rent another condo? My monthly mortgage payment+maintenance+property tax is just $100 more than if I were to rent a similar place.

What return are you making on your equity? — Garth

#3 Frustrated Kiwi on 10.28.14 at 7:58 pm

Score one for the little guy – yay!

#4 Millenial on 10.28.14 at 8:00 pm

“While Canadians are house-huggers and bank account addicts, the Yanks have fallen out of love with real estate and embraced financial assets.”

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

Garth,

Yes, Canadians love condos and semis and detached houses, but I’m not sure I would say Americans are ’embracing financial assets.’ There’s big time wealth inequality in the US, worse than in Canada, maybe you should investigate and do a blog entry about that one day.

According to Gallup’s annual Economics and Personal Finance survey, which was conducted in April (2013), just 52% of Americans are personally or jointly with a spouse invested in the stock market. This is the lowest level since at least 1998.

Read more: http://www.businessinsider.com/us-stock-ownership-at-record-low-2013-12#ixzz3HUGLJlF9

http://static3.businessinsider.com/image/529b79c969bedd513db6dcd7-802-465/ownership.gif

#5 nincompoop on 10.28.14 at 8:02 pm

Almost 10k for a phone number. Seems about right.

#6 Rick Manjin on 10.28.14 at 8:07 pm

Garth, Jim Rickards is saying the U.S is going into a 25 year Great Depression wiping out 70% of major stock markets values.

Is this just someone he trying to sell stuff or is he warning us of a possible financial, economic crash ahead?

He said as much as 100 trillion dollars or more will be wiped out comparing this to the 7 trillion in U.S. housing wealth that was wiped out in 2008-2009.

Don’t be so gullible. — Garth

#7 LazyJason on 10.28.14 at 8:07 pm

So is there a No-realtor list, like a no-fly list?

#8 takla on 10.28.14 at 8:08 pm

So QE 4 is about to end,what lies ahead?..Could we be into a month or two of dropping markets and the initiation of QE 5? or will this economy down south become self supporting with-out the free money gooseing from the fed.
lets recap QE 1 was started then stopped,failure,started up again as QE 2.Then another repeat to stumbling economy and QE 3 initiated,same story repeated as last time then comes operation twist,pulled and down she goes again to lead into QE 4.Each time the Fed pulled quantitive easing the economy stumbled and threatened crash.Will this time be different ,I don’t think so.
Europe is sick,south America is sick,the price of oil will make the fracking boom in the states uneconomical thus more lay-offs.Houseing down south has partially recovered and is stubleing again…garth you have to take of the rose coloured glasses!

#9 -=jwk=- on 10.28.14 at 8:09 pm

I don’t know of any other business with a guaranteed jackpot for every client. My business bids, and loses, on business all the time. We don’t get to hit up the winning company for a commission!

It’s called risk, folks. You try to win business. Sometimes you do win business. Sometimes you spend a lot of time with a client and don’t win anything. sometimes they walk in the door with plans in hand and you cant believe your luck.

You don’t “deserve” to get paid for driving people around to look at houses if you failed to show them the right house!

#10 };-) aka Devil's Advocate on 10.28.14 at 8:10 pm

#129 LP on 10.28.14 at 11:59 am

The only buyer beware in real estate is; when choosing an agent to represent you be sure to do your due diligence.

#130 NEVER GIVE UP on 10.28.14 at 12:07 pm
Contracts like this are only for the benefit of the Agent. There is no upside to the buyer.
If I went to get a quote from a carpet store and they made me sign a BRA that protected that store from loss of profit from any competitor in the city for the next 30 days. How is that any different from a RE BRA?

Of course there is an upside. When you have done your due diligence and having found the right agent who you have the confidence is really going to work with and for you with your interests first and foremost by signing a BRA/EBA with them you will know they are going to have a commitment to getting the job done and not try push you into something that isn’t right for you for fear if they don’t you might deal with someone else.

#146 devore on 10.28.14 at 2:30 pm

It’s the relationship. An agency relationship is quite a different thing than a customer relationship. Look it up. Read up on the law of agency.

#163 Entrepreneur on 10.28.14 at 6:46 pm
Sounds like some real estate agents are abusing the BRA. It should be outlawed or at least take the money-side of it away.

So then why don’t the courts see it that way as they have been upheld many times before the courts.

“Of course, I have no idea who’s telling me straight. Including Karan, who Tuesday night said he received a text from the agent saying, “I will let you go this time, but don’t ask any realtor in your life to give u any assistance.”” – Garth

Any agent who would say such concluding remarks divulges their true nature. Again, when choosing an agent do your due diligence and once you have found one who works for you sign them up to ensure they do so.

#11 Flatlander on 10.28.14 at 8:10 pm

So I am a moist TFSA virgin and I didn’t jump in during the short-lived correction.

Blog dogs, is now a good time to purchase a TSX Index ETF? Or shall I wait for a further correction?

What was wrong with last week? — Garth

#12 not 1st on 10.28.14 at 8:11 pm

Hope Garth never has any kinky revelations for the unsuspecting public.

#13 Linda on 10.28.14 at 8:13 pm

Garth, the numbers you quote are mind boggling. Question I have is, these numbers are based on surveys of a couple of thousand Canadian households, yes? Then the data is collated & used as a baseline for all of Canada – as in if the survey says 51% of those surveyed w/b in trouble if they missed one pay, then 51% of all Canadians are deemed to be in the same boat. I would like to say it isn’t so, but given how people want their goodie now & too bad if they’ve not the cash in hand to pay for it – put it on credit & let the good times roll – but I do wonder if the survey was repeated in various areas of the country with similar results. Or whether they took one survey in maybe an economically depressed area & used it as the baseline. Would you have any knowledge of whether these surveys took place across Canada?

#14 mid20millenial on 10.28.14 at 8:13 pm

Notice how the market participation correspond nicely (inverse) to the S&P 500?

That’s because a lot of people buy in when stocks are going up and bubbly, then sell when it bursts. Swear off the stock market, only to rejoin when it’s high again.

So when you start seeing that ownership level go up, you know when to sell.

#15 Marsha on 10.28.14 at 8:13 pm

“Yes, Canadians love condos and semis and detached houses, ” [unquote]

The Canadian economy is stronger than the American economy. To be a Canadian in today’s economy is one of the best opportunities.

Canada’s public schools far outrank America public schools, and more women are earning higher salaries than America women.

The school boards in Ontario turns students into intellectuals and scholars.

Toronto is a world class city, and the women in Toronto are more beautiful, smarter and richer than women in other countries.

To be a Canadian is the envy of losers such as ISIS sympathizers and homegrown extremists. If a Canadian women does not love you, you will get no love and instead turn into a raging lunatic like Elliot Rodgers or other misogynist homegrown extremists.

Can I give you Jian’s number? — Garth

#16 Chickenlittle on 10.28.14 at 8:14 pm

“I will let you go this time…”

LOL!!!

Or WHAT? Is he going to form some kind of RE terrorist group?!? Sounds like it!!!

#17 GeorgeSoonToBeRetired on 10.28.14 at 8:19 pm

Garth,

I got a taste of what you talk about on the weekend. Bored, I went with some slightly older friends who got free tickets (from their retirement home no less) to the “Zoomer Show” at the CNE in Toronto. It’s coming to Ottawa and Vancouver next, by the way.

http://www.zoomershow.com/splash/

Anyway, I thought it might be fun to troll for some silver haired babes. There were some nice ones there, but that isn’t what I took away. (Literally, and sadly for me)

I was really depressed by the mood of the place. Marketers seeming desperate to sign people up for various services, with few takers. Silent auctions, with dozens of items on offer, with only blank pieces of bid paper – nobody apparently had any money to bid on anything in the two hours I was there.

Then there was the ‘speakers’ section. I heard a guy calling himself a thirty year financial professional telling people how to pick stocks. The section was packed full of grey-haired folks, many having to stand. He told them that all they needed to do was find one or two good companies, like Apple or the people who make those K-cups (Keurig coffee thingies), and all would be well in their portfolio. Their attention was rapt.

Having tried and failed badly at stock picking in my younger years, I walked away thinking of the folly and/or desperation of these 60+somethings following such advice to gamble on funding their retirements by finding the next Nortel, or maybe Bre-X.

What must be going on for them financially to even consider gambling like that at this age?

I think at the end of the day we will curse that our real estate bust took almost a decade longer than our American cousins. Our boomer group is the same age and proportion, but will end up having much less time and chance to recover their losses. Maybe they’ll even gamble themselves right down the drain.

Depressing.

(Good news though – the wiener dog races were pretty good. I have newfound respect for those little mutts, and might even adopt one!)

#18 Italians love real estate on 10.28.14 at 8:20 pm

The ” horror” is right.

I am the biggest ” brick licker ” there is on this blog. I love real estate but even I will tell you that RE agents are the biggest vultures on the face of the planet.

Money sucking vampires is all they are

#19 };-) aka Devil's Advocate on 10.28.14 at 8:22 pm

I don’t seek to work with buyers so much, but when I do they

1.) Are past clients.

or

2.) Are People I have interviewed and agreed to take on as clients and they have agreed to sign a BRA/EBA. I don’t mean to be pompous but I am good at what I do and don’t need the hassle of working with someone who I think might become a Royal Pain in the Ass.

NEXT

#20 Attaboyyyyyyyy! on 10.28.14 at 8:30 pm

Nicely done Garth, using your influence to help out someone who couldn’t look out for themselves. A good lesson to read something before you sign it. I know I do at the banks, and everywhere else. The person on the other end looks at me like I’m crazy, and asks ‘what are you doing?’, to which I explain I am reading up on what arrangement I am entering. Common sense would dictate anytime someone has you sign something, you’re likely getting screwed, and I’m not saying Ghomeshi style.

You should do an expose on the current Canadian bank scams, TD and CIBC and their ‘promotions’ where you only have to meet 2 or 3 criteria, and then they have some phoney baloney excuse why your promotional product or funds take longer. CIBC apparently ran out of plastic to print credit cards that Tim’s card was so popular, imagine that…TD, well be sure to read the fine print (that doesn’t even show up on the promotional page).

#21 Rick Manjin on 10.28.14 at 8:38 pm

Garth, we will just continuing maxing out my RRSP’s, TFSA’s and non-registered accounts with my spouse.

We are in 35% in bonds, 40% in common equities and 25% in REIT’s, preferred dividend equities.

We will stick with this and ignore being scared leaving that to Halloween and horror movies.

#22 West Coast on 10.28.14 at 8:41 pm

Great post Garth – so true re savings (or lack of), debt and general self-inflicted misery.
Just realizing how reluctant the Americans are to reenter the housing market should give Canadians something to think about.
U.S. Homeownership Rate Falls to Lowest Since Early 1995
http://www.bloomberg.com/news/2014-10-28/u-s-homeownership-rate-falls-to-lowest-since-early-1995.html

#23 Porsche on 10.28.14 at 8:41 pm

QE1, QE2, QE3, QE# have artificially inflated the U.S. markets. They are so friggen overbought.

Why did the market go up 1000 points the last week?

All I see are the Amazons, the Linkdens, the Twitters, the Facebooks crashing after earnings

Today the the U.S. Durable Goods Orders fell unexpectedly for the second straight month but the markets up 200 points?

But it’s all a bed of roses. LMFAO

#24 Flatlander on 10.28.14 at 8:43 pm

#11 Flatlander on 10.28.14 at 8:10 pm
What was wrong with last week? — Garth

This virgin made their first ETF purchase only days prior to the correction. Had been a tad emotionally jilted during the correction, though I did not sell (at least I’ve been learning).

Need to finally shelve emotion and just have faith in the long run.

#25 West Coast on 10.28.14 at 8:46 pm

http://www.bloomberg.com/news/2014-10-27/the-great-recession-put-us-in-a-hole-are-we-out-yet-.html
Interesting charts and graphs re current US house prices, rents, income, savings, stock market, and retirement assets. Will we be following in their footsteps soon?

#26 Bobby on 10.28.14 at 8:46 pm

Call it whatever you wish, but if the seller is paying the commissions in the end, everyone works for the seller.

Regardless what DA says, I think this buyer’s agent nonsense is a closet full of crap. They are paid by the seller.

Just like the editor of Moneysense recently said, trust no one.

#27 Spectacle on 10.28.14 at 8:46 pm

#3 Frustrated Kiwi on 10.28.14 at 7:58 pm

” Score one for the little guy – yay! ”

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

Ummm…..and thank Garth , again.

Ps: anyone know Sir Garths preferred winter beverage? Shhh, Christmas is nearing. Thnx

#28 Linda on 10.28.14 at 8:49 pm

#17 George: maybe the reason there were no bids on those silent auctions wasn’t lack of money. Maybe the people looking at the stuff on offer didn’t see anything they didn’t already have. Sad (for retailers) but true – I’m buying less these days as is many of my contemporaries, because I’ve already ‘got’ what is on offer.
However, the desparation thing is sad. Because if you have to gamble on the next Bre-X or other scams to retire, you are pooched. Frankly, better off just buying a lottery ticket per week – outlay isn’t that big if you only buy one ticket per week & since the ticket is paid for, no worries. Plus if it wins ‘big’ you can maybe retire after all…..

#29 juno on 10.28.14 at 8:51 pm

http://www.milliondollarjourney.com/how-much-do-you-need-to-retire-in-canada-not-as-much-as-you-think.htm

Yep at 65 you need a million in savings no debt

You need whatever you need to have the life you wish. There is no glory in old-age frugality. — Garth

#30 Just Jack on 10.28.14 at 8:55 pm

You’re a good man, Mr. Turner

#31 omg the original on 10.28.14 at 8:55 pm

I onced signed a BRA when I needed to make a quick offer on a property in a super hot market (good old S’tooner in 2007).

Made the deal and the agent got his nice commission for about 1/2 hours work.

So then I asked him if he would let me out of the BRA since he had represented me in one property purchase and made his commission.

NO WAY he said – its a 90 day BRA and that is what it shall be. In my view he was being greedy.

Ended-up not being a big deal in the end because I didn’t buy again within the 90 days.

BUT when it came time to sell my three S’tooner rental properties he did not get my listings so lost out on about $55K worth of gross commissions.

Nor did he get the several referrals I have made to other people buying and selling in S’tooner.

It goes around.

#32 rex murphy's dominatrix on 10.28.14 at 8:56 pm

That Freedom 55 stuff with martinis on the yacht?
—————————-

Garth, are you planning on retiring when you hit 55?

#33 Sean on 10.28.14 at 8:56 pm

The wealth gap will swell faster than a broadcaster in bondage.

————–

lol.. that’s gold garth, pure gold… (or some other substance, that you hold in higher esteem)

#34 earthboundmisfit on 10.28.14 at 8:59 pm

Highland Park

#35 omg the original on 10.28.14 at 9:04 pm

#11 Flatlander

What is your time horizon – if its longer term. 10 years or longer.

NEVER try to time the market – IT IS NOT POSSIBLE.

Let me say it again – TIMING THE MARKET IS NOT POSSIBLE.

Those that CLAIM to have timed the market are just plain lucky, as some percentage of people will be. Over the long run they will miss other calls and it will all even out.

Just buy and do not worry about whether you missed the bottom of a correction by 15%.

10 years from now you not even remember making the decision.

#36 devore on 10.28.14 at 9:04 pm

#5 nincompoop

Almost 10k for a phone number. Seems about right.

At least he got a phone number! My (reputable and respected) realtor posted my listing, then went on vacation. Hey, thanks for letting me know, buddy! Not. Must have slipped his mind juggling all those fiduciary duties he had for me. I had to do the showings myself, because the other realtors in the office had their own clients to deal with, then did lots of legwork and paperwork to close the deal. Oh, then referred me to a notary friend of his who wanted to charge me double the usual rate to file some papers.

Worst $8500 I ever spent.

#37 Mark on 10.28.14 at 9:04 pm

Another great post, as usual. Opportunity abound for those who avoid the RE bubble, and are invested in inversely correlated assets. Still don’t understand the fascination with REITs — REITs’ have inputs similar to residential RE, and although the discount rates have not been driven down as low with CMHC subprime credit, REITs are still quite expensive and most people are overweight RE anyways. There’s a reason why most major corporations have spun their RE assets off into REITs — to take advantage of the generalized bubble in the asset class and to gain additional operating leverage for their businesses!

The ideal audience for REITs are those who don’t own any RE and want some exposure to such. Or those who own a heavy portfolio of bonds and stocks, a paid-off principal residence, and want some additional exposure to RE without being an explicit landlord. For most people these days, owning an ‘average’ house of $400k, this means that their net worth should be well in excess of $1M before even the thought of a REIT going into their portfolio arises. And even then, serious consideration should be given to underweighting such asset class given the extreme valuation problems of RE more broadly.

#38 DreamingInTechnicolour on 10.28.14 at 9:11 pm

How come more people who like homes don’t use canada411.ca to locate via reverse look up to who lives at an address and what their phone number is – so that they can contact them directly to see if they may want to sell for fair market value. Wow – Canadians have all the tools at their fingertips and could save themselves tens of thousands of $$$ on realtor fees if they would only try to do the so-called “legwork” themself – e.g. pick up a phone and make the call!

#39 Air Canada Spokesperson on 10.28.14 at 9:12 pm

Hey Garth,

Lay off Jian, will you!

His personal preferences are part of a well-thought-out second career plan, to work for us.

http://www.cbc.ca/news/canada/sexual-images-in-air-canada-flight-decks-worse-than-airline-admits-pilot-1.2815730

We are confident he will be an excellent pilot and fit in well with our workplace culture.

You will be welcome to join the mile high club with him when he gets his wings next year.

#40 Freedom First on 10.28.14 at 9:21 pm

Karan is very fortunate to have dodged that $9400 bullet. Karan, say, thank you Garth.

51% are screwed if 1 payday is missed and 40% are having difficulty making the monthlies. Well, I don’t care, if it was me in that position I would downsize my lifestyle to a less costly alternative. It does not matter if I hadn’t had a raise in years and my costs have increased for necessities, the fact is, I can’t afford my current lifestyle. It is either that, or make more money.

#41 Nomad on 10.28.14 at 9:40 pm

“But that’s not going to happen. The masses will carry on until it’s too late. ”

Yep.
And every time we’ll have a 10% pullback, the media will publish scary headlines non-stop, and people will tells others that buying stocks is gambling and it’s all coming crashing down again.

I own:
– HomeCapital
– Genworth
– Timbercreek Senior Mortgage Corp

First two just got upgraded by RBC Capital.
The third pays a monthly 7% dividend

Lending to the herd.

#42 Young & foolish on 10.28.14 at 9:44 pm

So, Jim Rickards is a fear monger …. Out to sell some books.

That is for you to determine. — Garth

#43 Ray Skunk on 10.28.14 at 9:48 pm

#15

The school boards in Ontario turns students into intellectuals and scholars.

Toronto is a world class city, and the women in Toronto are more beautiful, smarter and richer than women in other countries.

Although we’re not even half way through, I hereby declare this post my “LOL of the week”.

Absolute gold.

Jian has nothing on Marsha.

#44 economictsunami on 10.28.14 at 9:56 pm

The Fed merely enables the conditions for asset bubbles and global hot money flows from QE. The Fed is pulling back out of concern from possible(?) financial instability from their years buying USTs and MBS; causing unintended market liquidity flows.

Years of Emergency low rates, although providing refi opportunities, has done much to get many companies and people further in debt. Money velocity in the real economy stagnates from ‘underinvestment’.

The Fed has previously stated that ending QE isn’t tightening. Wouldn’t want to spook the Muppets

For Pete’s Sake, we’ve already had 2 dress rehearsals from QE 1 & 2 ending.

Forward Guidance/ market telegraphing (hand holding) continues…

#45 Air Canada Pilot-in-Training Jian on 10.28.14 at 9:58 pm

Well, hello there travellers ;)

For your safety and comfort, please remain seated with your seat belt fastened until the Captain turns off the Fasten Seat Belt sign.

Otherwise, I may have to come down the aisle. Look into your eyes deeply. And slap you. Hard. Like you deserve. And want . So badly.

And then invite you up front.

Into the cockpit.

(God, I love saying that.)

#46 Retired Boomer - WI on 10.28.14 at 9:58 pm

“You need whatever you need to have the life you wish. There is no glory in old-age frugality. – Garth”

Quite true. It works out better if you do a little work to decide when you can “afford” to retire. That’s based on your investments, savings, government supports for the geezers, debt (hopefully none). If you can afford to retire at 60,62,66, or whenever you decide, and assuming your body cooperates, it is great.

Losing a job at an older age is a reality I see all took often these days. Add in the surprise health issue, heart attack, or some such can radically change your plans.

Always better to have a plan even if it has to be changed, than to wake up at retirement and say, “Shazam -I’m broke!”

I am amazed, and saddened to see friends struck down with cancer, congestive heart failure, all sorts of health things crises never saw coming! Truly, money is the last thing on their minds. That said, it is no fun to be 70-75 house rich, cash poor, maybe widower, or widow, and somewhat clueless what to do next.

That would be even WORSE!!

#47 Zorik on 10.28.14 at 10:00 pm

Marsha
Can you stop your communist propaganda
I know what is communism so you are acting like communist.
Leave this propaganda to yourself

#48 Greater Fool on 10.28.14 at 10:00 pm

I agree, Garth to your response to #2. I did a thorough analysis of my 5% down Town home and when I put all numbers together, from a purely number perspective, I am losing money at the current rates. I dont see any hope of the price point of a town home in Westwood Plateau (Vancouver Tricities) going up to ever qualify for any return on the money put in. Needless to say, what this is doing to my disposable income and my ability to invest in other avenues.

As a matter of fact, having owned the place for 4.5 years now, I don’t think any form of residential real estate in the Vancouver Metro area is making an ROI sense. My conclusion is that only those who are renting out basement suites aka “Mortgage Helpers” will be making some value out of their residences. Not because of the price appreciation, but the sheer fact that someone else is paying part of their mortgage.

#49 MJ on 10.28.14 at 10:08 pm

#2, I dont think that is the only way to look. We should also account for the space horniness factor and genuinely question if we really need the plush spaces that we ask for. Maybe a 1500 sq ft place would suffice instead of the 2500 sq ft condo. Again, that really depends on what the situation is.

I think while we can keep arguing about all the additional costs that add up to the Total cost of ownership in real estate, there is definitely maintenance, rising strata fees and special levies. I agree that your principal residence should be purchased as a necessity and not as an investment.

For the most part, your property must appreciate at least the same as your interest rate in order to not lose money or have a negative return on investment. And then again, I agree with Garth that unless one hasnt lined up the retirement, education and other key ducks in a row, making such a big commitment with value appreciation in mind and that too or borrowed money does not make sense.

The feeling of “house poor” is definitely not worth it.

#50 Zorik on 10.28.14 at 10:10 pm

“The school boards in Ontario turns students into intellectuals and scholars”
Hahahhah what is the joke
Give me break
I do not understand sometimes why Canadians do not accept the truth and they are seeing things like thru green glasses

#51 b on 10.28.14 at 10:11 pm

Garth, you’ve done it again: “The wealth gap will swell faster than a broadcaster in bondage.”. Bravo!

#15 Martha – what is wrong with you? The TDSB must consist of a bunch of idiots (yes, there are some great teachers). Have you ever met an intellectual? Parents today, even in “great school districts”, have to do most of the educating. Great public schools in the US far outrank our best public schools. I know, I have kids at school in Toronto and lived in the US 10 years. Our American friends who have kids in good US schools are fantastically ahead of our kids.

#52 Tony on 10.28.14 at 10:12 pm

Re: #4 Millenial on 10.28.14 at 8:00 pm

These stupid Americans with their 401Ks will become 401 KOed when this market melts down worse than the ’29 crash.

#53 AK on 10.28.14 at 10:13 pm

#6 Rick Manjin on 10.28.14 at 8:07 pm
“Garth, Jim Rickards is saying the U.S is going into a 25 year Great Depression wiping out 70% of major stock markets values.”
=====================
Right. Just like the: The Great Depression of 1990

#54 Cici on 10.28.14 at 10:22 pm

#27 Spectacle

A good single-malt whiskey ;-)

I believe that, along with Dorothy’s and Bandit’s care, is what helped him rebound from his winter fall.

#55 Tony on 10.28.14 at 10:22 pm

Re: #6 Rick Manjin on 10.28.14 at 8:07 pm

Rickards must read this blog as I stated the under/over on the U.S. stock exchanges are 70 percent downward earlier this year. I guess Jim can thank me for the information I provided him.

You are both loonies. At least he has a book. — Garth

#56 Retired Boomer - WI on 10.28.14 at 10:29 pm

Ah the Markets…..

Yes, had a good day. Should a retired guy be IN the markets? My read is yes, but with balanced portfolio anywhere from 25/75, 50/50, to a max of 70/30% stk/bnd.

I like the 60/40% split myself.

Many of the future indicators tell me there will be more choppy waters ahead. Since this investment is more for long term growth than a regular ‘draw’ monthly to supplement the income, I feel comfortable at 60/40.

Our election day in Nov 4th. Who knows where we will end up after the votes are tallied. I have my own thoughts on what, and where I will shift investments should the elections vary wildly from forecasts.

Darn, every day beings new challenges, as well as opportunities. I await the game’s outcome to see what’s next!

#57 Nemesis on 10.28.14 at 10:33 pm

#FlyingLowInBritishColumbia?… #BewareTheGiantTotem!… #NOTAM’sForUnconventional Aviatrixes…

http://youtu.be/30YsOsoT-fc

#BonusZenForBroomOwners:
https://flightplanning.navcanada.ca/cgi-bin/CreePage.pl?Langue=anglais&NoSession=&Page=Fore-obs/notam&TypeDoc=html

[NoteToGT: Just between the two of us… you do realize that the FortressOfSolitude is encircled by GiantTotems, eh? One can never be too careful, ya know.]

#58 CalamityJane on 10.28.14 at 10:35 pm

So glad it worked out for him in the end, this could easily have been us and it’s infuriating to think how easily buyers are misled by a BRA.

When we were trying to buy our first house we used an agent to show us a few properties and when we were finally ready to place an offer he kept trying to force us to sign a BRA. Reasons included “for our protection” and when I said no he said he could make it “apply to that house only”. Again I said no and he told us “we’d have to sign it eventually if the deal was accepted so why not just sign it now and if we decide not to work together we can write him a letter and he’s a nice guy so he’ll release us”. I told him to drop it or we’d walk right now so he did, we placed the offer and didn’t get it and that was the last time we dealt with that Realtor… too bad because the next place we put an offer on and the purchase went through. By then I wised up – skipped the Realtor entirely and had my Dad’s very thorough lawyer in my corner instead. Pulled documents on who held the mortgage and all financing on the property as well as previous sales and were properly informed to make an offer. Also haggled the seller down on price and fought the listing agent to take a smaller percentage if he wanted to close the sale.

After that experience and deliberate misinformation I will never recommend using a Realtor. They definitely DO NOT explain the consequences of signing a BRA, and in fact try to downplay that it is a legal contract you are signing — and many thanks to Garth for highlighting it as we could have easily been in the same situation had I not read his warnings.

#59 learningfromyou on 10.28.14 at 10:38 pm

“I will let you go this time, but don’t ask any realtor in your life to give u any assistance.”

Why?,
Is it because all the disgraced and money suckers like Karambir Sira of Save Max Real Estate will stop paying their licenses and find a job collecting cucumbers on the fields?

I explicitly added his name in my post to help the google search adding more scores to this page, so his name will be easier to be found.

Hopefully some new buyers search for the realtor reviews before doing business with them.
Hopefully google will keep doing some additional justice in the future.

Thank Garth for helping the little guy one more time.

#60 Mark on 10.28.14 at 10:40 pm

“I own:
– HomeCapital
– Genworth
– Timbercreek Senior Mortgage Corp”

Unless those are just a miniscule part of your portfolio, you’re asking for trouble. A lot of trouble.

#61 Mark on 10.28.14 at 10:42 pm

‘Should a retired guy be IN the markets?”

Literally every asset class trades “IN the markets”, so the answer is obvious, an individual, retired or working has no choice.

The question becomes, are you confident about the amount of risk taken. Are you buying future promises of cashflows discounted enough for the risk? Are you diversified so if one “promise” goes bad, that it doesn’t destroy your portfolio? Can your portfolio respond to various macroeconomic conditions that may or may not be anticipated? Its far less risky to have at least some of your wealth invested in stocks, than it is to leave it all in a GIC with a single issuer, which is what a lot of people tend to do.

#62 Helen on 10.28.14 at 10:43 pm

#12 not 1st
“Hope Garth never has any kinky revelations for the unsuspecting public.”

I hope he does, hubba hubba!

#63 learningfromyou on 10.28.14 at 10:43 pm

I wonder if publishing cases like this one around the country will unveil the real face of Real Estate Boards that at some point nobody will trust them so new Gov. regulations will find their days to restore their reputation?

#64 pravchaw on 10.28.14 at 10:43 pm

Yep! The doubloons rolled into the old family chest today – S&P up 1.2%. Have made up more than half the losses in 1 week from the “correction”. Loaded up on IBM – ROE of 90%, P/E < 10 – whats not to like?

#65 Mark on 10.28.14 at 10:46 pm

‘For the most part, your property must appreciate at least the same as your interest rate in order to not lose money or have a negative return on investment.”

And in the long term, no lender will deliberately make a loan that guarantees them a loss in purchasing power in a specific asset class. Hence, credit is, over the long term, always expected to make home ownership more expensive, and less attainable. The goal should always be to minimize the use of credit when buying a low-return asset like real estate. After all, since RE is so ubiquitously available, any time excess credit is available to buy it, by implication, its price has most likely already been elevated.

The only long-term way to get ‘rich’ in RE is to actually do stuff that creates meaningful value in a property, or be one of those rare individuals who can sniff out extraordinary value. But when the sheep and lemmings become involved with RE, poor, if not negative long-term returns are almost guaranteed.

This is why I like the TSX so much these days. Its almost universally hated, even by Canadians. Everyone seems to think that the TSX, and even the CAD$, somehow “belong” beneath the DJIA, beneath the USD$ valuation. Almost as though such is an unalienable truth. There is far more money to be made by taking a contrarian position, than to go with the herd off to slaughter!

#66 kommykim on 10.28.14 at 10:49 pm

RE: #19 };-) aka Devil’s Advocate on 10.28.14 at 8:22 pm
I don’t mean to be pompous but I am good at what I do and don’t need the hassle of working with someone who I think might become a Royal Pain in the Ass.

A good agent can keep it together without a BRA.

#67 Chickenlittle on 10.28.14 at 10:51 pm

Martha:

Are you by any chance Olivia Chow?

MARTHA!!!!

SLOOOWLY I turned…..

#68 Debtfree on 10.28.14 at 10:52 pm

DA , do your dd on a realtor , really ? What are you talking wikipedia ? LinkedIn ? Criminal record ? Babysitting coarse ? My first two buys were with realtors . The last three without . The last three were dead simple and a heck of a lot cheaper for both us and the seller . Btw I love the last TV comercial IT was great . You know the swat team in the new owners bedroom cause they dint have a realtor . It seems so real . Putting the columbia in British Columbia . But I’m not convinced . I wonder if that guy that got sucked in to signing the bra felt as violated ? Gives me the creeps just thinking about it . As if one of you guys would tell us . Remember that poor couple that rented the drug house in the OK and were murdered as a case of mistaken identity . Was that rented by a realtor ? Most of the houses Ive ever rented were trough realtors .

#69 Skeptical on 10.28.14 at 10:56 pm

There was a correction near the end of the first two QE programs and ultimately the stock market was back stopped each time. With the end of QE3 looming, will there be a correction when it is stopped? If so, by how much? I’ve read that there is disagreement at the fed about ending the 15 billion/month stimulus. Could the Fed potentially extend the program for another few months?

Cheers

#70 kommykim on 10.28.14 at 11:00 pm

RE #51 Zorik on 10.28.14 at 10:10 pm
“The school boards in Ontario turns students into intellectuals and scholars”
Hahahhah what is the joke

You almost got it. It IS a joke!

#71 Helen on 10.28.14 at 11:06 pm

and 2nd of all – yay for Karan!! Save Max Real Estate is clearly a 3rd rate operation. Any business touting savings such as “Save Max” should have been a yellow flag my dear. Remember that!

#72 Debtfree on 10.28.14 at 11:08 pm

@#70
Maybe .
If so plus or minus 15 % .
They could extend if it feels right .
Where did you read that there is a disagreement at the fed ? I would love to read it too. You’d need some really big ,err , brain cells to disagree with ms Yellen .

#73 espressobob on 10.28.14 at 11:12 pm

#38 Mark

The whole idea of investing is to take profit! REITs have outperformed over the past few years and many investors are sitting on play money. Even with rebalancing there ain’t much to figure out.

Diversification has its merits!

#74 Jackofall on 10.28.14 at 11:12 pm

Wow. So now a phone call introduction is worth a 2.5% commission? These guys just keep digging themselves in to a deeper hole.

#75 European on 10.28.14 at 11:21 pm

YES>…haha the horror.

Who’s going to help him get in debt now, and ruin his finances.

#76 InvestX on 10.28.14 at 11:26 pm

Thank you for the warnings regarding the BRA.
Shame on Realtors.

#77 Waterloo Resident on 10.28.14 at 11:47 pm

I don’t understand that Jian Ghomeshi stuff that’s going on.
If a lady was let go from her job in the same way there would be headlines all over the place about wrongful termination and she would get at least $300,000 in a settlement.
Now while I believe that $55 Million is totally too much, he should be given either his job back or the show should be cancelled outright, since he was never actually convicted of any crime and everything was just hearsay. But then when I hear about his weird sex habits; YUCK ! I wonder about the mental state of those people who do that to women?

I hear of guys who say to a lady co-workers: “I like the color of your dress, its very beautiful” , and suddenly the next day they are accused of SEXUAL HARASSMENT and let go from work (that has actually happened to one guy, he sued and got his job back, but now all of the women at his work hate his guts.)

In response, a very famous man wrote this a few months ago:

“Don’t speak to women you work with unless it is work related. Don’t tell them they look nice, don’t comment on anything except on what work needs to be done. Your conversation should be limited to Good morning and goodnight with exception of the occasional good afternoon. Saying anything more may and most likely will lead up to a lawsuit.”

Well, look at that Ghomeshi guy and you can see how guys have to walk on eggshells around women these days. No kidding. But then again, if you beat women in sex acts you probably have more women hating you than if you say “nice dress”, or at least in a normal world it would be like that.

Now about oil: Its probably heading to $65 per barrel, maybe less, or at least it is according to this article:

http://www.theatlantic.com/business/archive/2014/10/its-coming-65-oil/382025/

While that is really GREAT NEWS for us who need to buy gas, its not good for Alberta, the only place that was creating jobs up till now. If you own a house in Alberta, I’d be thinking of selling it this week or next if possible.

As for my own stock indicators: everything is still roaring ahead, full green, no sell indicators anywhere just yet. So don’t place any sell stops yet. I just made 14% in the last 2 weeks, pretty good so far. ( SPXL, UPRO )

#78 Tom from Mississauga on 10.28.14 at 11:57 pm

April guy snatched up place in town on Ramsay Lake, Sudbury. Prestigious. Down for Jays game in September, no viewings on other place.
Parents friends in Belleville are almost retired. Short on cash, listed in Spring, went no bid. Better luck next year.
Aunt and Uncle, retired, Haliburton, need cash, listed in the spring, no bid, still on MLS.
The fraying continues.

#79 Jeremiah Bullfrog on 10.29.14 at 12:06 am

More likely K’s ‘realtor’ got a call from legal saying that if the BRA deal went to court it could go either way and potentially set an ugly precedent for all other BRA deals the agency is involved with.

I can hear the lawyer now..”Better to let the odd one get away than scare off all the fish”. The suckers who don’t make noise will pay up without knowing they could have fought and made a difference.

Lessons learned….never ever ever sign such a stoopid document as a BRA agreement….are you mentally deficient? If you have a ‘realtard’ that begins to make aggravating demands of you or even threats of ‘withholding service’…or in K’s case ‘blackballing’…..I suggest that you point to the front door of your home and make distinctively unhappy gestures.

At this juncture I would demand an explanation from the Real Estate Board after meeting with the local press about the ‘threat of blackballing’.

#80 Happy Renting on 10.29.14 at 12:28 am

#11 Flatlander on 10.28.14 at 8:10 pm
& #24

Another blog dog posted this previously, but I’m re-posting as you may enjoy the read. Some points on the list help remind me to act rationally, not emotionally.

http://www.fool.com/investing/general/2014/02/10/77-reasons-youre-awful-at-managing-money.aspx

For your short-term worries and reactionary panic, #26 and #42.

#37 and #62 for your “should I buy the TSX ETF now” question.

#81 Happy Renting on 10.29.14 at 12:35 am

True that you don’t know where the truth lies in Karan’s BRA story, but I’m willing to believe he naively signed the BRA because he was told it was “standard” and “no big deal”. Which is what I did as a moist virgin, long, long ago. I was lucky, that particular foolish move didn’t bite me in the ass.

Karan, give a big thank you to Garth and make sure you educate others on what the BRA actually means.

#82 nonplused on 10.29.14 at 12:52 am

You know, when we bought our current abode, my agent did not push the BRA thing on me. I even asked him about it and he said it was “unnecessary”. Well I guess he knew I’d be using him anyway, we had a gentleman’s agreement.

Well how did that agreement start? When he sold our other house, his charge was $2500. Flat. He then said “I only ask that if you buy another property, consider using me as your agent.”

I think he understood things a little bit. Selling a house is either easy or hard depending on guess what? The house. If it’s decent it sells itself. So he didn’t do any staging or all that crap, just planted a sign and plastered the internet with photos. $2500 for that was good money.

But he also understood that bringing a buyer was again the house selling itself, but he got his 3% for walking us through.

We love our current house. Great house, new enough it’s probably not rotten, good efficiency 2×6 and all the stucco and plastic, etc, windows are wood might do something about that but they are triple pane, it’s ok efficiency wise maybe could be a little better but the heating is about the same as our former half size house.

But he didn’t sell it to us. Oh no no. The house sold itself. This is what we were looking for and we looked a long, long time, and we looked at a lot of junk. Absolute Junk.

A lot of those houses you people are buying are junk junk junk. Would you buy a 95 Corolla? No. Why? It’s junk. So is your house. We were renting a ’78. What wasn’t junk was filled with wasps. What a disaster. If you are buying anything old you are buying junk.

#83 Lillooet, BC on 10.29.14 at 1:29 am

The price of oil is being supressed in the lead up to the US mid-term elections, also to soften the impact of the Fed ending stimulus spending, and to punish Russia. By year end, oil will be back up to $90/barrel, by early next year back to the $100/barrel range. Now is a good time to pick up inexpensive oil shares.

Who wants to retire anyway? Sit around all day and watch TV or sit around on the yacht all day. Gets pretty boring after awhile. Most people will continue working part-time after they leave their full time career, whether because of financial necessity or not.

#84 Kreditanstalt on 10.29.14 at 1:32 am

“The Fed seems sure to carry out its commitment to end stimulus spending in a week or two, and yet the economy’s chugging.”

Sure. Looks that way. But kick the tires…

#85 cynically on 10.29.14 at 2:13 am

Love you Marsha @52. You are a very funny woman. You should meet Tony on this blog as he is a joker too. I’m sure the two of you would keep each other laughing and that is good in life. The best to both of you.

#86 };-) aka Devil's Advocate on 10.29.14 at 2:37 am

#26 Bobby on 10.28.14 at 8:46 pm
Call it whatever you wish, but if the seller is paying the commissions in the end, everyone works for the seller.
Regardless what DA says, I think this buyer’s agent nonsense is a closet full of crap. They are paid by the seller.
Just like the editor of Moneysense recently said, trust no one.

Sorry Bobby but you are misinformed and do not know what you are talking about. The buyer’s agent, in the eyes of the law, IS paid by the buyer. The process has been designed to ensure these legal requirements are met.

The buyer’s agents commission, for simplicities sake, flows through the proceeds of the sale. The selling price is inflated to represent the amount the seller anticipates the sellers agent ought to be paid by the buyer. What the buyer’s agent is actually paid is a matter between the buyer and the buyer’s agent. If the seller has underestimated what the buyer has agreed to pay the buyer’s agent then the difference might be negotiated in the negotiations to reflect what the buyer has agreed to pay their agent deal or the buyer might agree to top up the difference outside the deal.

The buyer’s agent MUST, by law, in every province that I know of, disclose to the buyer that amount of commission which is being offered through the transaction because it is the buyer, in the eyes of the law, who is paying the commission and ought to know what it is they are paying their agent. If it is more than the buyer and the buyer’s agent mutually agreed the buyer’s agent would be paid then the excess is the rightful property of the buyer who, in the eyes of the law,IS paying the buyer’s agents fee. In a case of a “customer” relationship there is no such agency relationship and therefore there is no obligation for the agent, who then represents only the seller, to disclose to the buyer the amount they are earning..

#67 kommykim on 10.28.14 at 10:49 pm
RE: #19 };-) aka Devil’s Advocate on 10.28.14 at 8:22 pm
I don’t mean to be pompous but I am good at what I do and don’t need the hassle of working with someone who I think might become a Royal Pain in the Ass.
A good agent can keep it together without a BRA.

Sorry but too early on in my lengthy career had I’d been screwed too many times before finally coming to the realization that a BRA/EBA is an absolutely essential conclusion to the initial consultation process which NEEDS to be done prior to moving forward in an agency relationship. The initial consultation/BRA/EBA process is a relatively new formalization of what experienced true professionals sought to do all along. It (that formal process) has evolved out of the law of agency and the industries awareness that, as in all things real estate, while a verbal agreement may be binding and enforceable it is a good idea for both parties to it to have it in writing.

There are two types of buyers I trust: Those I have done business with before and those who sign a BRA/EBA. I require every buyer I deal with to sign an EBA/BRA. Would I actually enforce it? Not likely. But the fact is, the BRA/EBA is a pretty good qualifier; those who are willing to sign it aren’t the type you might find yourself needing to enforce it against and those who wouldn’t sign it aren’t typically the type I want to do business with in the first place.

As Bobby quoted Moneysense “Trust no one”. But I am not so prejudice as I do trust my clients because before they become clients I qualify them before I put myself at risk.

As I have said before the BRA/EBA is an invaluable tool in qualifying a buyers character. Would I ever enforce it? Never had to because once we (a prospect clients and I) have had an initial consultation in which I explain the real estate process, agency relationships etc, etc and answered any questions they might have such that they are satisfied they fully understand our obligations to one another, as is required, by law, which I do at the very earliest opportunity in the relationship and which as a matter of process as I am required to have them sign that they have received, perused and been explained to the brochure “Working with a REALTOR®” I deem them well enough qualified to work for and they me to employ to “represent” them knowing that I will, as I am required by law to do, put their interests before my own. Part of the due diligence process prior to moving forward in the process. Kinda like dating to get to know the other party before proceeding to the next step of getting married and signing that marriage contract.

As in all things real estate, while an oral contract is binding it is hard to prove in court and should, therefore, be in writing. Both parties deserve that.

Reading the comments on this blog is only serves to remind me how misinformed so much of the general public really is on matters of agency and reinforces my conviction to that process that needs to be undertaken before entering into any further commitment with any prospect buyer, just as so to that buyer ought to expect before choosing to work with an agent. Through that “initial consultation” you learn so much about the personality of the person you might be considering doing business with that you should come away well enough informed, on both sides, whether to move forward to the next step (signing a BRA/EBA) or not. Sometimes I don’t ask a prospect client to sign a BRA/EBA because I have no intention of every meeting with that person again as so too should it be from their perspective.

#87 };-) aka Devil's Advocate on 10.29.14 at 2:56 am

Reading the comments on this blog is only serves to remind me just how misinformed so much of the general public really is on matters of agency and reinforces my conviction to that process that needs to be undertaken prior to entering into any further commitment with any prospect buyer, just as so too should any buyer expect before choosing to work with an agent that they have opportunity to interview them. That process begins with an “initial consultation” and ends with the signing, or not, of a BRA/EBA.

Through the “initial consultation” both the prospect client and I have good opportunity to learn about the personality, expectations and character of the person we might be considering doing business with. A properly conducted initial consultation will result in each party coming away well enough informed, on both sides, that they can make and informed decision on whether, or not, to move forward to that next step in the relationship (signing a BRA/EBA). Quite often I never do ask a prospect client to sign a BRA/EBA, because I have determined that I have no intention what-so-ever of doing business with that person just as so too ought that person have the opportunity to decide of me.

This is a part of the due diligence both parties should embark upon before ever looking a real estate. In real estate the only buyer beware is in the agent you choose.

#88 Glad to buy black goo on 10.29.14 at 3:33 am

The conspiracy behind the oil patch macro is indeed interesting.

http://arcfinancial.com/research/energy-charts/a-canadian-oil-conspiracy/

#89 maxx on 10.29.14 at 7:13 am

Recently, a realtard pushed one of those BRAs at me. I told him: that thing, (insert name here) is a complete deal breaker. He then proceeded to show me properties as though nothing had happened.

Don’t sign!!!!!!!!!!!!!

#90 maxx on 10.29.14 at 7:23 am

#9 -=jwk=- on 10.28.14 at 8:09 pm

Bingo. There are no lame buyers, only lousy realturds and overpriced product.

Never sign a BRA and don’t buy yet.

Realturds are fighting like mad to support idiotic prices. Lowball, lowball, lowball until you get VALUE.

Boomers need the cash a lot more than you need re.

Way more.

#91 BS Meter Reader on 10.29.14 at 7:52 am

#87 & 88 aka DA

The BS meter is flashing “RED” after your posts.

Do you realize you just wrote 1225 words trying to justify your existence as a realtor? The first post alone was 994 words long!

In contrast, Garth’s entire blog post, what most of us come here for, was only 848 words long.

Some simple advice: if you can’t say what you mean in one sentence, or at least briefly, you don’t really know it yourself.

You have amply demonstrated that the value of most ordinary real estate agents, of which you are clearly one of the most ordinary, is mostly smoke and mirrors.

Realtors like you are about as essential in the 21st century as a chequebook.

I haven’t written a cheque in years.

Good luck if your only way to assert your value added takes so much circumlocution and bafflegab as you have show here.

Thanks for exposing the reality of yourself and too much of your industry.

(163 words)

#92 economictsunami on 10.29.14 at 8:08 am

More Renters, Less Risk for Wall St.:

http://www.nytimes.com/2014/10/29/business/economy/more-renters-less-risk-for-wall-street.html?ref=business&_r=0

For Canada the headline would read:

More renters less risk for CMHC (neeTaxpayer)

The world’s most unaffordable housing markets:

http://www.cnbc.com/id/102069526?slide=2&trknav=homestack:topnews:11

Internationally, Canada is #3…

#93 Piccaso on 10.29.14 at 8:56 am

Homeownership in U.S. drops to two-decade low

http://www.marketwatch.com/story/homeownership-drops-to-two-decade-low-2014-10-29?link=MW_home_latest_news

#94 Grantmi on 10.29.14 at 9:50 am

#85 Kreditanstalt on 10.29.14 at 1:32 am

“The Fed seems sure to carry out its commitment to end stimulus spending in a week or two, and yet the economy’s chugging.”

Sure. Looks that way. But kick the tires…

Don’t be too sure!!

FED HEAD YELLEN had some of her lap dogs come out on TV this last month Jaw-Boning that MAYBE the FED shouldn’t be cutting back. yada yada yada.. and so on.

After the recent rally! I think the fix is in! The FED has leaked that it’s is either:

1. They are NOT totally getting rid of the QE(pi) or

2. That the language will be so dovish about interest rates NOT going up for a longer term, for a very, very long term in the future. (Which the MSM will interpret as 2016)

Presto! Markets goosed! (As they say…. Don’t fight the FED!!)

All eyes on Bloomberg and CNBC at 11am today!

#95 Holy Crap Wheres The Tylenol on 10.29.14 at 9:51 am

Of course, I have no idea who’s telling me straight. Including Karan, who Tuesday night said he received a text from the agent saying, “I will let you go this time, but don’t ask any realtor in your life to give u any assistance.”

The horror.
_____________________________________________

Oh ya, Karan was lucky only because of some devinge intervention from above. Now Karan head these words, Caveat Emptor! Gloria in excelsis deo!

#96 Bottoms_Up on 10.29.14 at 9:56 am

Let’s investigate why Canadians are so indebted:

Of course, high house prices due to government policy. But outside of that:

1) Predatory banks with ‘hands in my pocket’. Monthly account fees; inactivity fees; trading fees; transfer fees; fees to carry their credit cars; insurance fees; account opening and closing fees; ATM fees; etc.

2) Mandatory (high-priced) insurance that we don’t use: car insurance…with many small accidents that go unclaimed because of future higher premiums. House insurance the same…something happens, and it costs more to claim it than it does to just pay to fix or replace.

3) Double-paying every time you move — usually you’re paying for 2 places for at least a month….move 12 times, and you’ve just shelled out an extra year’s worth of rent.

4) Utilities–how is it that cost of electricity is doubling every few years?

5) Food–have you tried to buy chicken or ground beef lately?

6) Cost of running an automobile — monthly payments; gas; exorbitant maintenance/repair cost (we pay at least double what is charged in the USA), mandatory government emissions tests, licensing fees; parking (up to $20/day in most big cities); predatory parking/traffic tickets

But, we have “free” health care baby!! It’s needed, so they can keep us alive as their cash cows.

#97 Daisy Mae on 10.29.14 at 10:03 am

#19 DA: “…Are People I have interviewed and agreed to take on as clients and they have agreed to sign a BRA/EBA.”

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

Sounds pompous. I should think you need them more than they need you.

#98 Godth on 10.29.14 at 10:15 am

Here we go again. The US is getting ready to lower down payments and credit scores for mortgages…for a start.

“Easy Money” Mel Watt Loosens Lending on Mortgages
Risky Business
http://www.counterpunch.org/2014/10/28/risky-business-2/

Rinse and repeat.

#99 bill on 10.29.14 at 10:28 am

#92 BS Meter Reader on 10.29.14 at 7:52 am
da has been asked to have a look at ‘strunk and whites-
elements of style’ on more than one occasion ….
its ever to late to have a look da.

#100 bill on 10.29.14 at 10:29 am

http://en.wikipedia.org/wiki/The_Elements_of_Style

#101 Daisy Mae on 10.29.14 at 10:47 am

#67 kommykim RE: #19 };-) aka Devil’s Advocate
“I don’t mean to be pompous but I am good at what I do and don’t need the hassle of working with someone who I think might become a Royal Pain in the Ass.”

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

A good agent can keep it together without a BRA.

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

I agree with #9 jwk and KommyKim — quite frankly, ‘you win some, you lose some’. I would never sign a BRA and I wouldn’t seek out DA.

#102 Mark on 10.29.14 at 10:53 am

“The whole idea of investing is to take profit! REITs have outperformed over the past few years and many investors are sitting on play money. Even with rebalancing there ain’t much to figure out.”

REITs have risen mostly on multiple expansion (just like residential RE). Not actual “earnings” growth. Just like residential RE, they face the spectre of higher future financing costs, and an onslaught of new supply coming to market in competition with their existing supply.

REITs were obviously not a bad thing to buy 10 years ago as the RE bubble was inflating, but today, you’re just asking for trouble with most of them at contemporary valuations.

#103 Daisy Mae on 10.29.14 at 11:00 am

#92 BS: “Do you realize you just wrote 1225 words trying to justify your existence as a realtor? The first post alone was 994 words long!”

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

Right! I scroll past the long posts, and rarely read those posted by DA. Whereas I’ll read Garths’ posts 2-3 times! ;-)

#104 Kenchie on 10.29.14 at 11:21 am

Interesting if you like baseball and US politics.

http://www.marketwatch.com/story/why-republicans-are-rooting-for-the-kansas-city-royals-2014-10-28?link=mw_home_kiosk

#105 xdisciple on 10.29.14 at 11:24 am

Xdisciple: You were the chosen one! It was said that you would destroy the evil political culture and banker family financial parasitic class, not join them. You were to bring balance to the force, not leave it in darkness.
Garth Vader: [shouts] I hate you.
Xdisciple: You were my inspiration, Garth. I admired you. But you have allowed this dark political culture to twist your mind, until now, until now you’ve become the very thing you swore to destroy.
Garth Vader: Don’t lecture me, Xdisciple! I see through the lies of the wellaware1s. I do not fear the dark side as you do. I have brought peace, freedom, justice, and security to my new blogosphere Empire.
Xdisciple: Your new Empire?
Garth Vader: Don’t make me ban you.
Xdisciple: Garth, my allegiance is to the Republic, to democracy.
Garth Vader: If you’re not with me, then you’re my enemy.
Xdisciple: [realizing that Garth is charmed by the evil political culture and banker family financial parasitic class and there’s no reasoning with him anymore] Only a media-induced fool zombie deals in absolutes.
[draws his lightsaber]
Xdisciple: I will do what I must.
Garth Vader: You will try.
[draws his lightsaber and confronts Xdisciple]

#106 Godth on 10.29.14 at 11:27 am

Drilling Deeper: A Reality Check on U.S. Government Forecasts for a Lasting Tight Oil & Shale Gas Boom
http://www.postcarbon.org/drilling-deeper/

When the Shale Runs Dry: A Look at the Future of Fracking
http://www.wakingtimes.com/2014/10/28/shale-runs-dry-look-future-fracking/

#107 Bobby on 10.29.14 at 11:53 am

DA, thanks for your lengthy post about the BRA. Your comment refers to how misinformed the general public is. May I suggest oftentimes it is the realtor who didn’t get the memo.
With the last property I was involved in purchasing, the realtor made a big deal of our buyer’s agent relationship. Fortunately, I have the wherewithal to ask the relevant questions as the important information was not forthcoming. At a number of junctures I stated that my requests would be expected of a competent buyer’s agent.
No, I wouldn’t sign a BRA, and will move on if a realtor demands it.

#108 Linda Pearson on 10.29.14 at 12:13 pm

#100 bill on 10.29.14 at 10:28 am
#92 BS Meter Reader on 10.29.14 at 7:52 am
have a look at ‘strunk and whites-
elements of style’ on more than one occasion ….
***********************
The Elements of Style and my grade 12 education have got me out of more jams than enough. I recently gave my grandaughter, who is almost thirteen, my dog-eared copy because she wants to become a writer when she grows up. Never too soon to learn the right way to write.

#109 Joe2.0 on 10.29.14 at 12:22 pm

Greenspan today announced that the Fed cannot quit QE without causing market turmoil.
Also US home ownership lowest in 2 DECADES.
Not a recovery, postponing the enivitable.

QE will end today. The market expects it, and is calm. Greenspan is way beyond his best-before date. — Garth

#110 Joe2.0 on 10.29.14 at 12:30 pm

The markets not all that calm check out the Vix.
The market has it’s finger on the button depending on what the Fed does.

The VIX has dropped by 50% in the last week. Calm. The market knows exactly what the Fed will do. — Garth

#111 Londoner on 10.29.14 at 1:00 pm

I see all these posts congratulating Garth for standing up for the little guy and achieving a successful outcome. I disagree. All this has done is shown that whiner like K can suck up to someone with some influence and get his way. I’m not saying I agree with what the agent did, but K did absolutely nothing for himself.

Garth, you could have raised the awareness of BRAs without using specific names. All you’ve done now is open the spigot for more ignorant whiners to come here asking for your help in the hopes of achieving the same result. You should have stayed far away from this one.

#112 calgaryPhantom on 10.29.14 at 1:02 pm

Considering how popular you are Grath. If a fan wants your autograph on BRA, would you sign?

#113 bigtown on 10.29.14 at 1:13 pm

Our family has been looking at condos to rent in Milton and Burlington for over a year…we are unable to wrap our heads around the rent owners expect. The asking rent is approximately 15 to 20% above our range.

Also the units are small even the one plus den are just not worth the big money to move in.

My biggest gripe: WHY ARE ALL THE KICHENS 5 by 5 with no counter space and one or two cabinets? It doesn’t matter if the condo is $300k or $400k or $500k all those itsy bitsy rooms.

Now I accept the reality we will probably move to another aging Ontario apartment.

Whatever possessed me to continue believing that somewhere out there we would actually find a unit that did not cause me to stop breathing due to the claustophobic reaction I had as I entered the unit and found myself already in the combo living/dining room which was 7 by 9 feet abutting the 5 by 5 kitchen.

#114 Snowboid on 10.29.14 at 1:14 pm

#84 Lillooet, BC on 10.29.14 at 1:29 am…

“…Who wants to retire anyway?…Gets pretty boring after awhile…”

Maybe for some it’s boring, but most folks I know over 65 that are still working, are doing it out of necessity.

If you follow the investment advice of the esteemed professor, and had properly prepared for retirement from your first working days, it’s amazing what you can do.

I’m volunteering, travelling (able to at a moments’ notice), becoming a foodie, and becoming more active in organizations I belong to (Veterans, etc). The ability to do whatever I want, when I want, is very enjoyable!

Of course when I retired at 55 my management career was getting a bit boring, so leaving wasn’t a hard choice.

To each is own…

#115 Snowboid on 10.29.14 at 1:17 pm

#92 BS Meter Reader on 10.29.14 at 7:52 am…

It would be reasonable if he didn’t always shovel manure at us. He forgets that a few years back he told this blog who he was, and with that he can’t pretend to be a reliable source of real estate information.

(41 words)

#116 bill on 10.29.14 at 1:17 pm

#109 Linda Pearson on 10.29.14 at 12:13 pm
eschew obfuscation eh!
da could stand a bit of that.

#117 Caesar Marcus on 10.29.14 at 1:29 pm

};-) aka Devil’s Advocate…you’ve the arrogance to believe that you can nitpick clients and conduct sound business? To a certain extent yes, however, avoiding business opportunities for the reason that it may hurt your ass a little tells me that you are not one to roll up your sleeves and apply yourself conscientiously to hard work. Per that statement, you have no business providing services to decent hard working people.

Remember that success == hard work or you inherit Daddy’s fortunes.

It must suck to be you.

#118 Tkid on 10.29.14 at 1:41 pm

O Wise One, explain! Why is Greenspan suddenly for gold and trashing QE? Did the Fed pee in his pureed oatmeal this morning?

I might have to sell some jewellery – if Greenspan hates gold I love it but if Greenspan loves gold I hate it.

#119 Mister Obvious on 10.29.14 at 1:41 pm

#29 juno

“Yep at 65 you need a million in savings no debt”
———————-

Yep… that’s about right.

#120 Mike S on 10.29.14 at 1:52 pm

http://online.wsj.com/articles/former-fed-chief-greenspan-worried-about-future-of-monetary-policy-1414597627

I’m not a gold bug, but:

“Mr. Greenspan said gold is a good place to put money these days given its value as a currency outside of the policies conducted by governments.”

#121 Cato the Elder on 10.29.14 at 1:52 pm

The west is bankrupt. There is no wealth left. China and the east have it all now. Try telling people that have been lounging in offices lavishly spending money and consuming that they are going to have to work in factories and underconsume/save. It won’t go over well.

What our future holds is bigger, more tyrannical government. Those same people that have become so used to our subsidized lifestyles won’t want to give them up. The massive shortfalls we face in our social programs will be made up by punishing productivity. That means hard working farmers, entrepreneurs, and whatever is left of the middle class.

Read the road to serfdom. Everything it describes is happening right now around us, and will continue to until it’s very prescient predictions fulfill themselves.

#122 Mister Obvious on 10.29.14 at 1:56 pm

#84 Lillooet, BC

“Who wants to retire anyway? Sit around all day and watch TV or sit around on the yacht all day. Gets pretty boring after awhile.”
—————————

If that’s the limit of your imagination regarding the potential of retirement I strongly recommend you keep your current job well into your late eighties.

Someone needs to mind the shop while us retired folk remain free to pursue new avenues of creativity.

#123 Grantmi on 10.29.14 at 2:04 pm

There you go! FED FUNDS END!! but keeping rates at CONSIDERABLE PERIOD!!!!!

http://bloom.bg/1wGfCJD

Markets heading down!!

#124 Debtfree on 10.29.14 at 2:55 pm

I guess DA only talks about doing DD on a prospective realtor . He doesn’t know how to do that or won’t tell us . I would love to hear how one does that . And no link to ” there is a disagreement at the fed ” btw QE is over at the end of oct. 2014 . Just like Garth has been telegraphing for some time . Excellent call Garth .

#125 Caesar Marcus on 10.29.14 at 2:57 pm

Censoring my post Garth? In true Harper right wing driven transparency, its a wonder you 2 did not get on well… however in hindsight…compared to some of the more thought provoking comments, my post was dribble.

I censored nothing. Apologize. — Garth

#126 20something on 10.29.14 at 2:59 pm

I was in a similar situation putting an offer on a property in burlington. The BRA which was presented to me gave me the option to get representation for that deal alone, or for a specified period of time (for example if that sale didn’t go through, the rep could work with me to find another property for “x” number of weeks, months, etc.). I was allowed to choose the period myself. The rep I was dealing with explained everything to me as I was very skeptical, and answered all of my questions. I didn’t feel pressure to sign up. I think people need to do more research when partnering with an agent. Read online reviews, about the process, ask for references, etc.

#127 Caesar Marcus on 10.29.14 at 3:05 pm

oops!

LOL!

#128 TheLaughingCON on 10.29.14 at 3:28 pm

Re #110 Joe 2.0 and Garth’s comment

QE will end today. The market expects it, and is calm. Greenspan is way beyond his best-before date. — Garth
======================================

Agree 100%. The little devil even joined the dark side – by recommending to buy …. not stocks but GOLD:

From Wall Street Journal:

http://online.wsj.com/articles/former-fed-chief-greenspan-worried-about-future-of-monetary-policy-1414597627

“…Mr. Greenspan said gold is a good place to put money these days given its value as a currency outside of the policies conducted by governments.”

#129 Renter's Revenge! on 10.29.14 at 3:41 pm

Question for the blog dogs (probably Mark would know this):

Are insurance companies like MFC, GWO and SLF good investments in rising rate environments?

#130 calgaryPhantom on 10.29.14 at 3:46 pm

End of QE. Markets shrug it off. Goes to show the last correction was just to lure people into fixed income assets before the free fall begins.

Stock up!

#131 joe calgary on 10.29.14 at 3:55 pm

good job in the BRA advice Garth.

#132 Caesar Marcus on 10.29.14 at 4:15 pm

RE: I censored nothing. Apologize. — Garth

I humbly apologize (no sarcasm intended whatsoever), I most certainly pulled the trigger too fast and here I stand, deservedly, with egg on my face.

I herewith forgive you. — Garth

#133 Calgary Ice King on 10.29.14 at 4:21 pm

Everyone is of course entitled to free speech whether anyone agrees is irrelevant. House horniness? How about never. The only way I would ever feel that way is many times a day about women, anyone over about age 20 up to about 80 is viable. Housing everywhere all the time is a big rip off. Renting, mortgage owning, it is all a ripoff!

Ever see the commercial “home owners helping home owners?(with expert advice)”? Uh no. Should say mortgage owners helping mortgage owners, with retarded advice.

There is no one responsible for the mess that is modern society. It really isnt a step above a bunch of domesticated rats. Perhaps a step below. The only difference is there are “laws” made to bend to those in power with money. Can you say corrupt?

The reason people buy mortgages in Calgary is simple: People dont vote because voting doesnt matter in Calgary. As one person, that person has zero power in getting things to work correctly. The key element is to be the one not holding the hot potato. And because no one has any power there are zero rent controls. Oh your landlord decides to raise your rent because he/she is passing on the “savings” from the city council who despite their funds stolen by photo radar “policing” cannot seem to pay all the salaries and still be able to fund things like snow removal. So there is the dilemma: Rent and pay lots. Or acquire it from the bank and pay lots. Either way you will pay.

#134 Mark on 10.29.14 at 4:23 pm

“Are insurance companies like MFC, GWO and SLF good investments in rising rate environments?”

Modern “insurance” companies hold a lot of stuff in their portfolios and are the ones you list are substantially diversified businesses with many different lines of business, ranging from purely transactional, to pure long-term “insurance”, but generally speaking, rising rates are quite negative for insurers as they induce capital losses in the long-term fixed income investments they tend to perform.

Falling rates have essentially given the insurance industry, and the financial industry more broadly, essentially a tailwind, wind at their back. Bond investment portfolios that were only predicted to return, for instance, at the 8% coupon — ended up returning not only the 8% coupon, but additional capital gains in addition. With rising rates, those capital gains will turn to capital losses.

Insurers tend to be somewhat limited on how much they can hold in inversely correlated/counter-cyclical investments by way of various government/regulatory policy actions, so they almost always are significantly weighted to longer-term fixed income. So no, I wouldn’t look to insurers or the financial sector broadly to outperform in a rising rate environment. Pension funds have big problems as well in a rising rate environment for nearly the same set of reasons.

#135 Mark on 10.29.14 at 5:04 pm

““Are insurance companies like MFC, GWO and SLF good investments in rising rate environments?”

Just further to my previous answer — the sorts of things that a person should own in a rising rate environment:

a) Utilities with lots of very, very expensive long-term debt financed infrastructure. This could also include long-term oil and gas production, long-life assets such as you see in the oilsands.

b) Mines. For the same reason, rising rate environment increases the hurdle rate of any new mining development, thus drives up the prices of mine output.

c) Gold and silver. As an investment with inverse long-term correlation to the long-term bond market, and increased hurdle rates as to constructing mines to produce more.

d) Telecoms *with lots of fixed infrastructure*. Again, the high rates make it wickedly expensive to build competing infrastructure.

e) Railways. Same as telecoms. Also, with railways, the rising rate environment will drive up costs for the trucking (and even airline) industry considerably, making rail more attractive. Governments will be less able to provide heavy subsidies for the trucking industry by way of the roads as they’ll be dealing with their own huge debt service burden.

f) Manufacturing — eventually the high rates will weaken the value of the US dollar, and some manufacturing will return.

Basically put, most industry sectors that have underperformed over the past 35 years of a falling rate environment, are likely to outperform in the next 35 years of a rising rate environment. So look at what’s been out of favour for the long term, and buy it. Underweight the past 2-3 decades’ best performers (namely the financial sector, and sectors that mainly rely on heavy government involvement such as healthcare and defense). Or just do a reasonably balanced portfolio with an overweight on the TSX that encompasses much of such (the TSX is a hodge-podge of long-term underperforming industries which are going to be the outperformers for the next part of the economic cycle).

#136 Mike S on 10.29.14 at 5:12 pm

“The west is bankrupt. There is no wealth left. China and the east have it all now. Try telling people that have been lounging in offices lavishly spending money and consuming that they are going to have to work in factories and underconsume/save. It won’t go over well.”

lost you here. with all the automation less and less people need to work in factories anyhow

#137 Tony on 10.29.14 at 5:29 pm

WARNING: Transfer-out fees from Tangerine for registered accounts | Tangerine Bank (formerly ING Direct) Starting January 01,2015

https://www.highinterestsavings.ca/forum/tangerine-bank/warning-transfer-out-fees-from-tangerine-for-registered-accounts/

A responsible financial advisor will compensate such transfer fees. — Garth

#138 Mark on 10.29.14 at 5:42 pm

“lost you here. with all the automation less and less people need to work in factories anyhow”

I think his comments were more of a metaphor for the fact that it isn’t likely that sitting in an office and flipping paper in one of those big downtown bank towers isn’t going to be viewed by society as being an immensely valuable activity.

A huge number of jobs in FIRE and government are dramatically over-compensated. This will eventually come to an end, and at some point, revert to significant under-compensation.

#139 Retired Boomer - WI on 10.29.14 at 5:42 pm

Well the FED ended QE. Market took that required 100 point drop then recovered most before the bell.

Gee, a ‘free(er)’ market what the hell are we going to do now? Get on with life, and don’t fret the obvious crap.

That’s my take. If we fall we get up if we get too cocky, we get knocked down a little, if we get humble, we get appreciated, if we get arrogant we get France?

just kidding

#140 Stickler on 10.29.14 at 6:01 pm

@ #84 Lillooet, BC on 10.29.14 at 1:29 am

Who wants to retire anyway? Sit around all day and watch TV or sit around on the yacht all day. Gets pretty boring after awhile. Most people will continue working part-time after they leave their full time career, whether because of financial necessity or not.

————————————-
HA! no one wants to retire. That’s funny.

I do agree with you on oil though.

#141 Realtor on 10.29.14 at 6:22 pm

First of all I would like to congratulate Mr. Garth for his commendable job for creating the awareness in the public about BRA. His profile and experience is great.
With due respect and regards to all the readers and who commented on the post , I would like to ask you a simple question
” How would you feel if someone ask you to work for him and after putting your hard work , time and money for Gas , you come to know that the person/employer don’t want to pay you . ”
I am sure you would feel bad and will do everything to give a lesson to that particular employer . In the BRA , the buyer and Realtor has a kind of employee employer relationship. The Realtors are putting their time , money for gas and hard work to negotiate the best deal for their clients. They have their bills to pay , keep them self up to date by doing no. of course ( of course there is a fees for those courses) , pay fees for Real Estate License and other professional Insurance and the list goes on . Realtors also have kids and family to feed and this is their source of earning to run their families .
In this particular case , an over smart rather I should say a cheater used the realtor to use his professional know how and acted as naive so that he can gain public sympathy and bad mouth about the profession .
He approached the realtor to work with him through one of his friend . The realtor was putting his valuable time to search the properties for him and even showed him the properties no. of times. The realtor was working with him for last few weeks and showing him the houses . The so called innocent client liked one property and decided to put an offer on the property . Realtor explained him Buyer Rep and requested him to sign . The so called innocent client knew everything about it and asked the realtor to sign the Buyer Rep only for 10 days with 30 days holdover period. He even made a statement there that he does not want to have binding for long term and realtor followed his instructions . I am sure every body can use their common sense if the realtor has got a blank buyer rep signed, he will at least do it for few months to make sure to trap him properly . But for sure that was not the intention . ( documentary proof is there ) now as per the blog The so called naive buyer provided the copy of the BRA and claiming that it was signed blank , I am not sure if he filled the similar details himself or what in his copy.
The realtor send him all the details about the particular property with sellers phone no and other details as the property was on MLS as a mere posted listing ( email and other documentary proof is there) . As there was an open house and the buyer said he can go and see the property . In case if he likes it , the realtor will come with him to make sure everything is ok. Now this so called naive buyer texted the realtor that he didn’t like the property as there is some issue with the neighbourhood

The text below is a good proof about this so called naive buyer lies .

I wanted to paste the picture for his text message but was not able to do so as there is no option to upload the picture.

If his intentions would have been clear , there was no need to lie . Any reasonable person can easily judge that if a particular individual is knowledgeable enough to sign a private deal ( I am sure later he may claim that the seller got the blank papers signed from him and filled the details later ) signing a buyer rep for 10 days only and making fool of other hard working people for their job and time , how much innocent he would be .
Just to make the air clear , if the realtor wanted he could have sued him directly on the court and claimed his commission . His intentions was to give him a lesson so that he doesn’t play around with other people time and joke about their job . When this so called naive buyer realized that the realtor is asking for his right , he tried to use some other person for his benefit . I am sure if he would have been fair and honest with the realtor and used his expertise and negotiation skills for this particular deal , he might have got a better deal and the realtor would have been paid by the seller as it happens in most of the cases.
We should appreciate the realtor gesture for not disclosing the client’s details and his personal information to a third party when he was contacted by Mr. Garth . By not disclosing the information the realtor has followed the professional ethics and privacy act as well.
I would request everyone to please respect other people ‘s job the same way they want respect for their job. No body forced him to sign the BRA as its against the ethics of a profession . It’s a good gesture on the realtor part that he decided to let him go at the end. .Every body can understand that he could have easily screw him up on all the documentary evidence and would have been paid by the buyer in court . Let’s not encourage these kind of over smart buyers to make a joke of others job and profession.
By this incidence I can recall one story .
In real life it happens if a bigger car hits a pedestrian, the insurance company will always put the fault on car driver, even if the pedestrian was walking blindly in between the road .
Thanks everybody for understanding and reading the other side of story .

Written by an informed realtor .

#142 45north on 10.29.14 at 6:39 pm

Mark : Still don’t understand the fascination with REITs — REITs’ have inputs similar to residential RE, and although the discount rates have not been driven down as low with CMHC subprime credit, REITs are still quite expensive and most people are overweight RE anyways. There’s a reason why most major corporations have spun their RE assets off into REITs — to take advantage of the generalized bubble in the asset class and to gain additional operating leverage for their businesses!

MILLER: When I saw what was happening in the housing market, I liquidated all my multifamily apartments, shopping centers, and office buildings. I liquidated all my loan portfolios, and I’m happy I did.

Then it occurred to me in 2005 and 2006 that the commercial world had to follow suit. Why? Because it’s a normal progression. Obviously, when single-family homes decline in value, multifamily apartments decline in value. And when consumers hit the wall with spending and debt, that’s going to have an impact on retailers that pay for commercial space.

http://www.financialsensearchive.com/editorials/casey/2010/0209.html

so rereading this Mark you are saying that in Canada REITs are not a great investment whereas Andy Miller said that in the US REITs were a bad investment.

#143 The American on 10.29.14 at 8:06 pm

@#15: Martha, oh how misinformed you are. You may want to stop spewing meaningless drivel and instead understand that despite all the problems in education within the U.S. that the media loves to claim (it’s always easiest to pick on the prettiest girl in the prom), you should consider doing a little research first. Canada has BY FAR worse educational problems and risks than what is found in the U.S. This is for public education. Now, if you want to talk higher education, yes, the U.S. kicks ass in this department too…

http://www.nationmaster.com/country-info/compare/Canada/United-States/Education

#144 Daisy Mae on 10.29.14 at 8:39 pm

#138 Tony: “A responsible financial advisor will compensate such transfer fees. — Garth”

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

Garth does!

#145 Mel on 10.29.14 at 11:03 pm

Honestly Garth, it is time for reality check, and stop taking Janet Yellen seriously. It was the Fed lack of Banking oversight, low interest rate…. why the Banking sector blew a big hole into the economy.

Now, after trillions of tax payer money, all is well in the world. It has worked so well, that European Central Bank wants to copy the Feds success.

Forget about higher interest rates next year. Debts are too high everywhere you look. Nothing has been fixed. Only thing that has been fixed is Stock market. Even Stock market eventually have to live in the REAL world. It will eventually find out that you cannot live on Fed’s love stories forever.

Stocks, like housing in this country is way overvalued. I would not touch it!