If everybody cared about you as much as themselves, we wouldn’t need laws. But we have tons of them. And probably need more. At least when it comes to shills and their get-rich schemes so prevalent today.
Of course this blog will not unfairly target any individuals. So let’s talk about Mako Britz and AJ Hazzi. The latter young buck, as I’ve mentioned before, is known around Kelowna for his bling Mercedes SUV and his unwavering support of the hair gel industry. Mako, a realtor in the Lower Mainland of BC, I am embarrassed to admit, has a Harley and likes dogs. It’s tragic.
I wouldn’t pick on either one if they didn’t make it so easy. But here goes.
The other day Mako sent out a mass email that starts this way: “We all want to be wealthy. I had an interesting talk with an investment banker yesterday and he kind of laughed at me when I said I can always get my clients 20% interest on their money. Let me show you how.”
Now, imagine a financial guy sending you a note guaranteeing a 20% return on your investment. If you forwarded that to the regulator, the dude would soon be back shaving goat meat at the local Shawarma hut. But if you’re a property flogger, you can pretty much promise whatever you feel like and see who gets reeled in.
The deal here is what you’d imagine: Buy a condo, rent it out, and make an easy 22%. The voodoo math is designed to ensnare the unsuspecting. In Mako’s world, mortgage rates will stay at 2.3% forever. Repayment of debt is called a return on investment. Rental units are never vacant, never need repairs and are never trashed. Property taxes, condo fees and insurance costs never rise. And, there’s this cincher: “But wait… real estate always goes up in value.”
So a $300,000 unit bought with a $60,000 downpayment turns into a clear profit of $184,700 ten years later. “Is any bank offering you these rates?? Any mutual fund performing at these levels?? Is there any index out there doing this? Let me know if I can help in anyway to make you wealthy.”
In reality, while Mako earns a plump commission selling the property, the buyer ends up with a quarter million in variable-rate debt, $60,000 less in liquid assets, and a piece of cheap real estate in a market where appreciation is anything but assured. There is market risk, rate risk, builder risk and tenant risk.
But Mako is tame, compared with AJ. Just read this. For some reason (ad dollars, maybe?) the local news site gives Mr. Gel his own pulpit.
The story is of a local guy named Tom who nears retirement with a $500,000 house and a $500,000 investment portfolio. Not good enough, says the realtor. So he masquerades as a financial advisor, then sells the poor guy four rental properties, including a small apartment building, all with heavy leverage. At the end of it he claims Tom will have an income of $120,000. Amazing.
“All of his hard earned equity that he worked so hard to get over the years is doing the heavy lifting. Each of those dollars has been given a healthy quota of returning an average of 14.6% per annum. He has $750,000 of his cash in the real estate market to earn him his dream income. To replicate that in what he was doing before, he would need close to three million dollars!
“In addition to the amazing cash-flow, Tom’s properties are appreciating further adding to his returns. The best part of this entire process was helping Tom see what’s possible for his retirement years. He left my office filled with hope and excitement for the future. That was a good day for everyone involved.”
Well, it sure was a good day for Mercedes man, who stands to receive commissions on more than $2 million worth of properties in the stagnating Kelowna market, plus his mortgage broker friend, who finances the deals, including sucking the equity from the client’s house. But for Tom, he ends up in retirement with $1.88 million in debt.
Is it possible to make money buying rental real estate? Of course. When properties are fairly priced, there’s robust tenant demand, steady cash flow, low financing charges and an appreciating market inside a growing economy. Guess how many of those conditions we have now? Right. One. Cheap debt.
Plus, has a realtor ever explained that rental income is taxed at 100% of your marginal rate while investment returns are generally taxed at just 50%? Or that financial investors can bail out of a liquid portfolio with a mouse click, while property owners have to wait months or years for a buyer? And then pay AJ or Mako a huge fee?
Nope. Instead we have this: “I can always get my clients 20% interest on their money.”
And the regret is free.
* * *
Cowtown Death Watch update: The layoffs continue in Calgary, and with each day so does the anxiety of those trying, and failing, to sell their homes. So far in February, sales are down by a third from this time last year and there are now about 5,400 properties on the market – a 3,300 increase over the last six weeks. It’s taking longer to sell a home, and prices are dropping. The average home is 5.5% cheaper, or about $30,000. There is much more to come.
Blog dog Jamie thought you might enjoy this Google search summary in Alberta for the words “realtor” (blue) and “EI” (red). This won’t end well.
248 comments ↓
Hence why so much effort, so much investment has been made towards keeping the delusion alive, especially in the major centres, of RE price appreciation. The Toronto/Vancouver markets have been in decline for most of the past 2 years, but the RE sell side crowd has been working overtime, in almost every venue possible, to deny such fact.
Me thinks that a lot of RE sell-siders are going to have to get real jobs (or securities licenses) in the near future. If they even qualify for them after their probable personal bankruptcy, as most “drink their own Kool Aid” (no insult intended to the real purveyors of Kool Aid, who certainly don’t appreciate the association with their product!).
Caterpillar dealer Finning International to cut Canadian workforce by 500
http://globalnews.ca/news/1839655/caterpillar-dealer-finning-international-to-cut-canadian-workforce-by-500/
No1 !!!
AJ’s hair is a Kelowna landmark. Don’t diss it.
that one was too funny!! get this……yesterday , the bc finance minister , I’m told , said that the vancouver housing market is not in a bubble in any way and that the market is well balanced. he sees no reason for concern. we have demand from overseas that is not going away, a robust economy , low rates and get this……. he actually said that vancouvers housing market will benefit from our white knuckled neighbours that are losing their jobs in alberta as they will be flowing here to get jobs? so …..people that own houses in alberta that they can’t sell , will move to vancouver and buy a house that is 3x the price and work as a waiter or a part time retail clerk?
“Rest assured — even if inflation turns negative for some time that would not constitute deflation,” Cote said in prepared remarks of a speech she delivered in Mont-Tremblant, Que., north of Montreal.
So even when inflation is negative, it still means we are in inflationary times says the BoC. For years many people have been laughing at the ‘posted’ core inflation of 1-2% with real inflation at least double that. And this from the Bank of Canada website (http://www.bankofcanada.ca/2001/01/technical-report-no89/)
“The Bank of Canada uses core CPI inflation, the year-over-year rate of change of the consumer price index excluding food, energy, and the effects of changes in indirect taxes, as the operational guide for monetary policy.”
So if the core inflation rate excludes energy, why should we ignore it due to oil? But hey, when the numbers support our mantra then they are gospel; but when they don’t then the numbers aren’t actually reflective of the overall economy.
FIRST!!!
Given Walmart’s sheer size in the US, perhaps their increase in hourly pay may show up strongly the future wage growth metrics Yellen et al monitors…
We shall see…
http://www.bloomberg.com/news/articles/2015-02-19/wal-mart-s-1-billion-wage-hike-spurred-by-customer-service-woes
By this logic realtors shouldn’t have any clients. They should just buy all the properties for sale themselves. It’s guaranteed money, why give up a sure thing and share the wealth? Lol
This is why the RE industry should be regulated just like financial institutions. So why isn’t Ottawa moving on this important issue? I raised this issue with my MP, and only got back a steaming pile of boilerplate on how the PCs are looking after families.
Why is the blue line not following the red line around 2008 recession. Weird.
Spendshi’s pissed.. no more public funded giant art rings
http://calgaryherald.com/news/local-news/terribly-short-sighted-nenshi-rips-bid-to-slash-public-art
Mark in first place for the First time!
should be a hangin’ offence.
Hard to know who to hate more.
The banks for providing the credit.
The people who apply for the credit because working hard is too good for them
The boomers who sanction it all up via political bribes
Luckily reality doesn’t have favourites. All three are gonna take a nice long bath.
“Me thinks that a lot of RE sell-siders are going to have to get real jobs (or securities licenses) in the near future. If they even qualify for them after their probable personal bankruptcy, as most “drink their own Kool Aid” (no insult intended to the real purveyors of Kool Aid, who certainly don’t appreciate the association with their product!).”
RE salespeople get commission on the way down, as on the way up. But I certainly see many RE agents who buy extra investment properties for themselves and their family members.
Don’t know about real jobs, though. Not many people seem to be doing them nowadays. It is more like the real job people left some time ago to sell real estate, and nobody is going back yet …
I laughed myself silly at the “back shaving goat meat at the local Shawarma hut” bit. Hilarious. :)
And geez, Mako, that 20% return you are describing is not “interest”.
Cowtown deathwatch? The only RE that isn’t purely CMHC enabled is in Vancouver and Toronto.
Vancouver detached prices about to set a record for the month. In February.
Wait until June.
Where are the housing market stats from Fort Mc?? been looking for Jan and Feb but nothing to be found.
Here is more unfortunate news for Calgarians which will further hinder RE demand:
http://business.financialpost.com/2015/02/19/mortgage-firms-tighten-lending-standards-in-calgary-as-housing-boom-turns-sour/
The party is officially over. Please grab your stuff and go home, Alberta’s going to have to sleep this one off for a while…
Hilarious. Back to realtor bashing. I wonder if Mako or AJ will join in for a chat!
Once again the CONservatives have sold canada and canadians out to the 1%. All that oil money gone. Cons are useless and those who vote for Cons are weak minded fools. Alberta is finished and it couldn’t happen to a more ignorant province.
http://www.cbc.ca/news/business/alberta-squandered-oil-wealth-with-big-spending-fraser-institute-says-1.2963338#commentwrapper
This report on Singapore’s response to foreign ownership of property might be interesting. 18% tax on property for a start.
http://www.nytimes.com/2015/02/18/realestate/a-high-end-property-collapse-in-singapore.html
Not going to lie… looking at the weather out east I can almost justify prices in YVR.
Yes we definitely need more regulatory oversight on these real estate agent bandits.
One of the reasons for that is that I think a lot of these guys actually believe their own BS that they sell to others. With all due respect, Real Estate Agents are not exactly known for their math skills or ability to look at a slightly bigger financial picture than their own sale.
Oh well guess it is still buyer beware (big time) for now.
With those Shysters it’s a fine line between marketing and grand theft!
Which for the 1000th time begs this question.
Why does the gov of Canada allow this to continue without end ???????????????????????????????????
“…the dude would soon be back shaving goat meat at the local Shawarma hut.” ~ Garth. Haha so good.
Keep on exposing these opportunists Garth you’re doing a world of good.
#22
Lol.
Alberta is a land locked province. Norway is a country with easy access to lucrative global markets, for starts. Not exactly apples to apples…
Alberta still has huge reserves of oil that will inevitably become more valuable again. What does a Norway oil production history chart look like? Norwegians are to be commended for their exemplary budgeting and spending, but their future as an oil producer is finished.
From what you share, you’d have to be pretty thick headed to buy into the oil sands… Oh wait, isn’t that what Berkshire just did?
I mainly read the blog to loom for layoff updates in alberta. We just laid off 20 People with many more to come. Talking to all my friends in the same industry (energy services & manufacturing) Everyone isnlaying off 20-60% of their employees, none of which makes the news. If you where not sure how bad it is then know its bad out here. These are all 50-150k paying jobs (including ot which people bank on getting these days).
Interesting to follow the Cowtown death watch. And speaking of Truck nutz, I am reminded of a simple method to follow how an economy is doing. Just follow the Housing market and the car market, and if they are both doing well the economy is rocking and rolling. I wonder if $100 Oil, 8 year financing of Trucks/just add nutz, record low interest rates, combined with lusting hot hormones, Maka and Aj, et al, had anything to do with Calgary( actually Alberta) now having their very own death watch.
Dear Gullible. Always a good title. As always, my freedom first.
#22
The enlightened ones in the ROC can now send back the transfer payments….
Ya might want to see a doctor.. all that pent up rage can’t be good for the innards.
Was thinking of that poor guy who was the subject of the blog post a couple of days ago. The guy from Montreal who it sounds like was being hen pecked into buying a house.
Yesterday Bombardier hit the news, and today SNC Lavalin again. Both on potentially shaky ground for big financial hits. (which usually translates into layoffs)
Man who would want to buy a house in Montreal these days? You can enjoy the months of -30 with a wind chill quite nicely from a warm apartment thank you.
#There’sGullible… #AndThenThere’sReallyGullible…
[Telegraph] – Germany’s army is so under-equipped that it used broomsticks instead of machine guns
…”The German army has faced a shortage of equipment for years, but the situation has recently become so precarious that some soldiers took matters into their own hands.
On Tuesday, German broadcaster ARD revealed that German soldiers tried to hide the lack of arms by replacing heavy machine guns with broomsticks during a NATO exercise last year. After painting the wooden sticks black, the German soldiers swiftly attached them to the top of armored vehicles, according to a confidential army report which was leaked to ARD.”…
http://wapo.st/1E94jxN
[Telegraph] – The Queen gets stuck in traffic outside of Canada House: Canadian HighCommisioner Responds with GiftHorses
…”But as the Queen of Canada she was greeted by the familiar site of two mounties, in their famous wide brimmed hats and red tunics, sat on horses – George and Elizabeth – that were gifts to the monarch from the Royal Canadian Mounted Police.”…
http://www.telegraph.co.uk/news/uknews/queen-elizabeth-II/11422869/Queen-gets-stuck-in-traffic-outside-Canada-House.html
#19 CoolDude0
This morning I was able to see the January ’15 stats on the Ft. McM REB site and they were dreadful. A few hours later the website link does not work. They are probably massaging the data. It was dreadful. Listings to the moon – sales to the basement – average selling price significantly down (although across all classes SFD, attached, row and condos) and who knows what the sales mix actually looked like.
Colleagues arriving at work up here in the Taiga were breathless recounting the radio news.
I cannot remember what the period of measurement was hence do not quote me. I expect it was YOY using January 2014. The average selling price decrease was $100K. If the sales were across the entire spectrum, then $100K/$750K (2014 average price) is a 13% drop.
We shall wait and see.
Saw this before comments section on another finance blog (sorry GT); thought you might want to update the HELPFUL REMINDERS FROM YOUR FORUM HOST, GARTH TURNER:
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
Party on in the Kingdom….
“Now we are asking that the king forgive all the citizen’s debts,” said one visitor, Mohammed al-Sahli, adding that his bonus would help him marry a third wife.”
http://www.nytimes.com/2015/02/20/world/middleeast/saudi-king-unleashes-a-torrent-as-bonuses-flow-to-the-masses.html?hp&action=click&pgtype=Homepage&module=first-column-region®ion=top-news&WT.nav=top-news&_r=0
There’s been quite a few houses in Calgary that I’ve been keeping tabs on in terms of drops in prices and there have been MANY and several cuts in the past 2 months! Here they are:
This one from $674,900 to $619,500
http://www.realtor.ca/propertyDetails.aspx?PropertyId=15161008
This one from $589,900 to $529,900
http://www.realtor.ca/propertyDetails.aspx?PropertyId=15259005
This one from $639,900 to $599,800
http://www.realtor.ca/propertyDetails.aspx?PropertyId=15327858
This one from $674,500 to $649,500
http://www.realtor.ca/propertyDetails.aspx?PropertyId=15239016
This one from $689,900 to $674,900
http://www.realtor.ca/propertyDetails.aspx?PropertyId=15147619
This one from $649K to $599K
http://www.realtor.ca/propertyDetails.aspx?PropertyId=15196596&
Please share anymore major house price cuts if you have any!
BBD halted.
They’re selling paper at $2.21. Ouch.
Does anyone know if Smoking Man is continuing to buy?
Upon sober reflection, I should stick to my knitting and stay away from real estate stats.
The $750K average was the SFD average.
Henceforth, I will restrict my comments to assisted suicide law and those damn activist judges.
re: “Cowtown Death Watch update”
I mashed up charts on Canada’s trade balance, global demand for energy products and the Baltic Freight Index:
http://www.chpc.biz/history-readings/dollar-depreciation
Snippet from the International Energy Agency: “There are several reasons why lower crude oil prices so far seem to have failed to stimulate demand. Those include heightened deflationary risks in both Europe and Japan; adverse revenue impacts on net-oil-exporters; a global trend towards reductions in energy price subsidies and/or increases in oil consumption taxes; and the heavy falls experienced by many currencies, versus the US dollar, negating the impact of lower crude prices in domestic currency terms.”
The low CAD/USD may not help Canadian energy exporters.
Last summer when I was still a fool, I was looking at buying a property in YYC, and actually looked at this one:
http://www.realtor.ca/propertyDetails.aspx?PropertyId=15152388
This thing is a piece of crap and the seller is screwed for unloading it. Uneven floors, cramped bedrooms, and the only thing going for it is the single bathroom in the house which was newly renovated. Yeah, sounds like a solid investment of 435k (sarcasm).
This has been listed since summer of 2014 (in the hottest market in YYC’s history), but the original ask was 450k. Still for sale 6 months later, and the market has tanked. As Garth said in a previous blog post, in R/E, liquidity can be a bitch.
Anyway, I’m now invested in ETFs as per Garth’s advice and fully liquid. I sold my house in the summer (which was a whole crapload of work to fix it and stage it) and am now (happily) renting. Owning a house is way too overrated. If I want cash, selling my ETFs is a 60 second process. Try accessing your equity in a house that fast.
Garth – Thanks for your blog and for showing me the light. I actually have a chance at retiring comfortably without relying on the government.
But why isn’t it illegal to pose as a financial advisor (rather than a property-flogger)? The very tactics of offering guaranteed returns on purchases marketed as investments sounds like something the regulators should be policing. Isn’t it illegal to sell investments if you are not a registered practitioner? Shouldn’t provincial governments regulate this field if they aren’t already?
AJ is well known around Kelowna, and Castanet will not publish anything that questions the myth of real estate gains. They may as well be a subsidiary of OMREB.
Mr. Hazzi is also the rent-to-own king of Kelowna, a scheme that seems to attract desperate sellers and not so smart buyers. I like how he calls it the Empowered Renter Program!
His big sales pitch used to be flips as in: http://www.castanet.net/news/Investment-Real-Estate/78194/Flipping-101-Is-it-time-to-quit-your-day-job
We toured a couple of properties they had for sale that were ‘fixer-upper’ flips, and the renovations and improvements were laughable, the proverbial ‘lipstick on a pig’. But that is no different than the flips we saw when we were looking at Phoenix homes in 2010.
Even the golden god of real estate commented in the following GF post from 2013 that he wasn’t an advocate of Hazzis’ business practices:
http://www.greaterfool.ca/2013/01/17/brilliant/
#23 Martin Cooper on 02.19.15 at 7:42 pm
This report on Singapore’s response to foreign ownership of property might be interesting. 18% tax on property for a start.
http://www.nytimes.com/2015/02/18/realestate/a-high-end-property-collapse-in-singapore.html
*****************************************
Oue pussy gov would never consider this as it would make them look racist or as Garth puts it,ISOLATIONIST.
Foreign buyers are not responsible for houses Canadians have themselves bloated. How about an 18% tax on stupidity? — Garth
Job losses and expenditure cuts are in vogue now with the Big Banks at Bay/King. Contractors and full timers are impacted. Notices issued. None of this reported but rest assured, shareholders of the Banks will get their dividends :)
A quick search for Mr. Hazzi reveals that he’s had his wrist slapped by his industry un-regulators who normally are not very prone to disciplining their own. Something to think about.
[…] Source: http://www.greaterfool.ca/2015/02/19/dear-gullible/ […]
garth weren’t you going to do a story on Fortress Real. How are these guys allowed to sell this? Where are the regulators?
http://hardcorevalueblog.blogspot.ca/2015/01/earn-8-fixed-interest-fortress-real.html
“Google Adwords Keyword Planner”
#18 Vancouver Agent
“The only RE that isn’t purely CMHC enabled is in Vancouver and Toronto. ”
Valid point perhaps.
Question: once the last gaggle of builder/speculators outbidding each other on mediocre East Van lots, and the last dregs of HAM are ultimately priced in this year, who will be left to buy SFHs, including all that new post-flip “luxury” stock sitting empty in coming years?
Hint: Majority of SFH owner-occupier buyers (making average, or even median income) are almost entirely priced out of 604 SFH market at CURRENT pricing.
HAM tap turned almost completely off this years of Jan. 2015 via Fed policy changes, and Very Little Interest so far: http://www.scmp.com/news/world/article/1714514/canada-extends-millionaire-migration-deadline-scheme-appears-flop-rich
Perhaps one of the reasons the feds are finally altering the previous IIP program: http://www.scmp.com/comment/blogs/article/1715970/refugees-earn-more-chinese-millionaires-canada-why-bother-wealth?page=all
Other immigrant categories also have New Stricter Rules for eligibility to stay: http://www.ctvnews.ca/canada/top-shelf-workers-students-left-behind-by-new-immigration-rules-lawyers-1.2232553#
…and per Brand New CRA foreign income and asset reporting changes: http://www.theglobeandmail.com/globe-investor/personal-finance/taxes/a-tax-checklist-for-immigrants-to-canada/article19226846/
*Note the last 5 points in this article, which are especially relevant to High net Worth individuals. CRA wants their piece of the pie, and they have changed the game in order to get it.
So, I’m truly curious. Who exactly do you believe will be hoovering up all this present and future SFH product at “ever-increasing prices”? Especially as you will also have to factor in the phalanx of Boomers needing to liquidate their SFH’s en masse (that few locals can afford even at TODAY’s prices) to fund their retirements in the coming years.
Where is this ever-increasing projected future price support going to come from?
http://business.financialpost.com/2015/02/19/mortgage-firms-tighten-lending-standards-in-calgary-as-housing-boom-turns-sour/
Home Capital, which has 5.1% of its $22.6 billion of mortgages in Alberta, is curtailing lending in the province. The Toronto-based company will continue to avoid some areas completely, including Fort McMurray, the heart of the province’s oil industry, CEO Soloway said. The lender will also examine applications from energy industry workers more critically in the wake of the region’s job cuts, he said.
Oakville, Ont.-based Genworth MI said in its fourth- quarter conference call that it’s planning to cut the size of its Alberta portfolio. The insurer said it’s testing more rigorously borrowers’ ability to repay a loan and examining more closely the collateral backing that mortgage.
The insurer expects its costs to cover bad loans to rise, paying 20 cents to 30 cents in claims for each premium dollar earned in 2015, according to the conference call. Last year the company paid 20 cents.
That expense may increase to as high as 34 cents by 2016, according to Bank of Montreal analyst Paul Holden, who adjusted his earnings forecast for the company on higher delinquency and lower sales in Alberta this year and next. Genworth has 24% of its $356 billion of insurance in Alberta, Saskatchewan and Newfoundland, the three regions most dependent on oil.
“We foresee storm clouds on the horizon in the more oily parts of the country, namely Alberta, which we expect will put more significant pressure on the loss ratio,” Holden wrote in a Feb. 11 note. “The housing market fundamentals in Calgary do not look good.”
I hate CONservatives as they are sellouts and have sold out every canadian in canada. Alberta a backwards province who’s voters vote in the most crooked party in canada like the uneducated puppets Albertans are known to be. What did the spend spend spend waste waste waste Cons do with hundreds of billions of dollar? Norway who has over 50% of population in a union and where the people ……as in all the people of Norway benefit. Norway has saved $759 BILLION dollars while the anti union lazy spend spend spend waste waste waste conservatives saved nothing. Shame on Alberta for voting in conservatives who ruined canada. I hope Alberta gets all the lay offs they deserve.
20% that’s it..
My kid made 27% in two weeks. I can’t wait for him to screw up, so I can teaches you guys not what to do.
He’s becoming more disciplined. I finally, got him to not think about the money as money.. Just watch the charts.
But unlike the realtors, no one gets my secret sauce.
I need people to shine my shoes, dry clean my shirts, prepare my meals.
Those that can’t do, teach. Those that can do, just do.
He’s head is the size of a balloon.. In this game, needles lurking everywhere. Plus he forgets his 45k shit kicking he did that I bailed him out of with some remarkable moves.
Click on my name if you want the proof.
I so want to talk about the Ontario liberals, maybe after a few JDs I’m still to agree.
To Karma #8
Paying people $9 to $10 an hour which includes the wage increase to only about 40% of Walmart workers is not going to do much.
It will be eaten fast with higher transportation costs, gas, auto insurance, food, utilities, rent etc. etc. etc. cost of living.
A sad but true reality.
You don’t buy from these realtors you use them to sell your property.
Dang, there goes up in smoke any reliable trend search for deflation.
First you got negateeve inflation UK, then negateeve inflation Canada, now neegateeve inflashun France:
http://www.bbc.com/news/business-31532269
I’m a negateeve optimist: I see very positeevely negateeve growth on the horizon.
Did I mention BigD is staring us in the face? Most probably won’t get to know him by name, as usual in these times. He’ll be renamed in many different ways, as always throughout history. But it will still be BigD for connoisseurs.
Thanks Garth.
I just talked to AJ and we are going to put my RRSP on steroids. I’m so excited.
PS – nobody pays taxes on rental income. If they did nobody could afford to own a house in Vancouver. Half the houses in Van are subsidized by illegal suites.
Kilt.
@#18 Van Agent
“Vancouver detached prices about to set a record for the month. In February.
Wait until June.”
Hubris and the fall. Or should I say IN the Fall
Thank you Garth for rebutting the column by AJ Hazzi here in Kelowna. I read it yesterday and was incredulous. I have many friends here that buy into this bunk. I am tired of arguing with them over the state of real estate. So many people here with the “my house is my retirement plan” mentality. It boggles the mind. What can you do? Lambs to the coming slaughter. Keep up the good work.
The government of Quebec (indebted to its maximum capacity) will help Bombardier (indebted to its maximum capacity) if needed !…that won’t end well either…!!!
http://www.bnn.ca/News/2015/2/18/Quebec-prepared-to-bail-out-Bombardier-minister-says.aspx
#55 Ray Vaquez — “Paying people $9 to $10 an hour which includes the wage increase to only about 40% of Walmart workers is not going to do much. It will be eaten fast with higher transportation costs, gas, auto insurance, food, utilities, rent etc. etc. etc. cost of living.”
It is going to do lots. Most of those Wal-Mart workers save very little, if anything. Meaning they spend everything. So this move is actually injecting money into the economy at a place where it will have some velocity. And other businesses may have to raise their wages to compete.
Bernanke was known as ‘Helicopter Ben’ for his observation that, if all else failed, a central bank could drop hundred dollar bills out of helicopters to stimulate the economy. But he never did that, instead pumping money into the system via those who were LEAST likely to spend an extra windfall (holders of appreciating government bonds).
This wage increase is a helicopter drop from the Arkansas Fed.
No surprise here… Maybe DA could enlighten us … http://www.theprovince.com/business/Oilpatch+downturn+slows+Okanagan+real+estate+market/10821329/story.html
Why are some of you so happy when you see large layoffs?
No surprise for Hazzi who, on more than one occasion has been censured by the BCREC tribunal….but memories are short – aren’t they? And this is only one (of whatever he didn’t get his fingers slapped on) and punted from ReMax in this case
In the matter of Adrian Joseph Hazzi…..
Why is nobody talking about COMER vs BOC lawsuit ?
Because it’s a bogus non-event, wrapped in tinfoil. Go away. — Garth
#56 Millmech on 02.19.15 at 8:51 pm
You don’t buy from these realtors you use them to sell your property.
^ This.
I’m looking forward to my upcoming bidding war for my 50 year old, tear down, musty, Toronto bung.
My agent and I will both be laughing all the way to the bank! Poor buyer!
#47 4 AM Sunrise, you piqued my curiosity.
http://caselaw.canada.globe24h.com/0/0/british-columbia/real-estate-council-of-british-columbia/2007/12/20/hazzi-re-2007-71635-bc-rec.shtml
AJ Hazzi was found to be acting for both sides (undisclosed), his father-in-law being the seller of a fix-and-flip of a “manufactured home” in a trailer park on First Nations land. The buyer sounds a treat, too, as AJ was censured for “failing to ensure the buyer was advised to include a subject to financing in light of the fact that the construction was incomplete and the buyer had separated from his spouse” … and the deposit consisted of a quad ATV.
From humble beginnings…
#66 Hang em high on 02.19.15 at 9:17 pm
Why is nobody talking about COMER vs BOC lawsuit ?
Because it’s a bogus non-event, wrapped in tinfoil. Go away. — Garth.
……..
Most Tinfoilers get it wrong, the where it like a Yamaha.
If your a gifted tinfoiler, you use the shape of your to make a parabolic arch, then filp it around, bit of duck tape, you point your head at the UCC.
And boom, you get the signals, you know everything.
Mine are in the shape of a Fedora, still get the beams, but I can still keep the sun out of my eyes.
I work for a small company in Toronto which employees around 60 employees. In my company there are at least 15 young employees who have either already bought a house in last 3 months or looking for houses and condos to buy as soon as possible. Even an employee who had had disappeared for a whole month from work to treat his clinical depression recently(and has the job only because my company does not want to have HR issues) has also bought a house.
Top reason to buy house: Why pay rent and pay somebody else’s mortgage.
Instead of risking 400k on one condo in the hopes of making 20%, I’d risk it on a series of growth companies that profit from cheap debt. EasyHome, HomeCapital, DHX.B, Constellation, OpenText, etc.
Look at EasyHome. Up 10% in one day.
Jacksonville, Florida has an economy most Ontario folk would die for…so many different businesses and government and military sectors all seeming to find their own little corner.
I am visiting the southeast suburbs of Jacksonville so I can get to the beaches faster.
The area looks like Oakville, Ontario but there are miles and miles of fresh looking office parks and mid size bank and financial and insurance and health office complexes and towers all interlaced with outdoor retail at SouthPointe and the very attractive but still mighty nice ST. JOHN’S TOWN CENTRE outdoor mall. There seems to be a very VIBRANT JOB MARKET here and absolutely no condo building????
What really is very unusual from the GTA perspective is most of the housing in this mega suburb is RENTAL low rises and townhomes for the mid range and some luxury market but Florida has HOUSING VOUCHERS which opens the rental market up to the point that the social housing is much less of an issue compared to Toronto.
I drove around for hours and did not see one CONDO FOR SALE…not one. Of course these poor folks have to endure sun and warm climate for twelve months a year and never have wet feet…you feel sorry for folks like that.
#34 Nemesis re German “army”
The German army is a joke. Those who serve in the military live at home and attend military service like work, ie 8-5.
HOWEVER, lest we start chuckling too soon, the fact that Germany was denied an army by the Allies and their constitution, allowed them (and Japan) to plow those resources into the economy, education, social services. Those are the two countries that emerged with the strongest economies in the second half of the century. Makes you wonder – what are the trade offs for a strong military.
http://m.thestar.com/#/article/news/queenspark/2013/07/15/wynne_denies_levin_crafted_ontarios_sexeducation_curriculum.html
So Cathy Wynee is ramming threw a new sex eduction bill/coriculum . That no one has seen, it targets kids long before they hit puberty. She tried to do it under mcginty, he killed.
See the dude in the link is second in command In education , Wynee says he had nothing to do with. Perhaps.
But hum, where are the gas plant emails.
Millennials, home school your kids. At leased till high school age.. In fact, you all should organize, use some ones place to teach em, I will come in free of charge, I teach gambling..
#69 Smoking Man
Help me out and I will send you a box of Cohiba Esplendido straight from the factory floor. I get UofG but what is UCC? Upper Canada College?
Any thinking person would know that any advertisement for something which ‘will pay a guaranteed high return’ must not be on the level. If any such SURE-TO-GO-UP-AND-PAY-FANTASTIC-RETURNS investments existed, they would either already have been bought up by the super-rich without said investment instrument ever going to public market or it would be made illegal for the little guy to partake in such an investment (Eg. the so-called laws for the protection of the novice investor).
Hey Garth, what annoys you more, people who post ‘first’ and end up #7, or the people who end up actually getting the first post and being more wrong than poster #7.
Maroon is reading the chart upside down and doesn’t even know it. Nobody has to work to prove the GTA/YVR markets haven’t been in decline for 2 years, because they haven’t.
I know I shouldn’t respond to the troll but now I see why he got booted from RFD.
“….The other day Mako sent out a mass email that starts this way: “We all want to be wealthy…….”
_________________________
Actually that’s a myth.
Becoming ‘wealthy’ is yet another form of OCD (Obsessive Compulsive Disorder) affecting just 1% of the population.
The rest of us just want to be happy.
“Nobody has to work to prove the GTA/YVR markets haven’t been in decline for 2 years, because they haven’t.”
Of course they have. Do you actually believe a word of the propaganda out there, which has failed to completely acknowledge the dramatic change in the sales mix? Do you actually believe that Canada would enter a deflationary period with housing remaining as vigorous as the sell siders are claiming? Think about it for a moment before you make claims so asinine and disconnected from reality.
I provided data and commentary to back up everything I said on RFD, and I stand by my analysis. Most of the posters who dared to ‘debate’ me were so insolent and out of touch that they refused to even acknowledge that a ‘sales mix’ even exists for RE. Most had to resort to extremities in trolling.
#72 bigtown
Jacksonville can be quite dangerous; make sure you get a concealed carry permit and a rottweiler if you are going to live there. I suggest you google some of the stories about violence, flash robberies and all the rest.
Canadians are in general psychologically unprepared to defend themselves. (As with everything else, they rely on the government to do everything for them, no matter how obviously incompetent it is). In the US, failing to take charge of one’s own safety can be a fatal mistake.
DELETED
Portfolio Diversification: How Many Stocks Are Enough?
“The first published study on this subject was a paper by J. Evans and S.H. Archer entitled “Diversification and the Reduction of Dispersion: An Empirical Analysis.” It appeared in the December 1968 issue of The Journal of Finance.
The authors concluded that an investor needed to construct a portfolio containing as little as 15 randomly selected stocks before the benefits of diversification, as measured by the standard deviation, were basically exhausted. A similar study from the same era found that 90 percent of the diversification benefit came from just 16 stocks, and 95 percent of the benefit could be captured by just 30 stocks.”
“A Different Approach
A 2007 study, “Diversification in Portfolios of Individual Stocks: 100 Stocks Are Not Enough,” took a different approach to this issue. In it, the authors again attempted to determine how many stocks are needed to properly diversify portfolio risk.”
http://mutualfunds.com/expert-analysis/portfolio-diversification-how-many-stocks-are-enough/
Best,
HD
Median home price in Venice Los Angeles: 1.1 million.
Equivalent home in Toronto: 1.1 million.
Something is wrong.
#75 Washed Up Lawyer on 02.19.15 at 9:48 pm
#69 Smoking Man
Help me out and I will send you a box of Cohiba Esplendido straight from the factory floor. I get UofG but what is UCC? Upper Canada College?
….
Universal Consouness Consolidater.
AK little voice in your head.
Lunatics have better connections to it.
Aliens fly their ships with electo magnetic brain waves.
I use it for picking out winning slit machines for wife poo.
Or betting on forex.
Hard to describe how it works.. Have guys at the tax farm screaming my name, my computers broken, I just get close to the machine and will it back to health..
Lol
You should add the ability to vote on comments. It would help sort through the chaff. Like this completely off topic comment.
Devil’s Advocate, please pickup the white courtesy phone.
Greater Fool blog has an important call for you. We need you to defend the honour and of the brave Okanagan real estate professional.
But what will happen to Smoking Man’s “life” if posts MUST remain on topic???
#75 Washed Up Lawyer on 02.19.15 at 9:48 pm
#69 Smoking Man
Help me out and I will send you a box of Cohiba Esplendido straight from the factory floor. I get UofG but what is UCC? Upper Canada College?
….
It comes in handy when calling bond yields have peeked, Sep of 2012, than there will be no Tapper, when 99% called for it at the FOMC meeting last year. Or when I called for a BOC rate cut last month, or when I’m staying FED won’t spike this year.
And the dozzy..
Next time BOC cuts the rate.. Im thinking. 0.5 not 0.25 like everyone’s thinking.
Not always right, but God damn close..
It’s in the archives here.
Yup UCC, helps if your from planet Nectonite.
I am currently watching a cnn show on Bitcoin.
It is blowing my (very small) mind!
I just seems so futuristic almost like a post apocalyptic
Invention.
So which one hits first?
1) BoC cuts
2) Fed raises
Canadian dollar goes down again.
#69 Smoking Man on 02.19.15 at 9:26 pm
_________________________
You’re on top of your game this evening.
Hilarious.
#54 Smoking Man on 02.19.15 at 8:47 pm
20% that’s it..
My kid made 27% in two weeks. I can’t wait for him to screw up, so I can teaches you guys not what to do.
…
Nice going there smoking man! I checked out your son’s trades on your link and he is consistently up. How does he minimize losses so well? What is he looking for before buying into a position and what does he look for that triggers a sell? Keep up the good gambling!
#87 Agreed on comment votes on 02.19.15 at 10:24 pm
But what will happen to Smoking Man’s “life” if posts MUST remain on topic???
……
Man I’m sorry I don’t live up to the expectations and behaviour modle your teachers welded into your head as execptable.
It is what it is.. Some times I contribute some pretty Good shit, amazing shit..
But 85% of the time it’s just shit..
Get over it.
“Not going to lie… looking at the weather out east I can almost justify prices in YVR.”
Not all ponies and rainbows out here.
I had to cut my lawn on Sunday.
If everybody cared about you as much as themselves, we wouldn’t need laws. But we have tons of them. And probably need more. At least when it comes to shills and their get-rich schemes so prevalent today.
—————————————————-
I stopped reading right there. Why have more laws when they aren’t applied…2008, 2008, 2008
Does anyone on this blog use Bitcoin?
#75 Washed Up Lawyer on 02.19.15 at 9:48 pm
Back when Plato had his Daemon…so did Dr. Faustus. Smoking Man does the esoteric in more modern lingo though, machine language – Aliens (instead of angels and demons) and colliders (instead of God).
#92 Nacho Cheese on 02.19.15 at 10:40 pm
#54 Smoking Man on 02.19.15 at 8:47 pm
20% that’s it..
My kid made 27% in two weeks. I can’t wait for him to screw up, so I can teaches you guys not what to do.
…
Nice going there smoking man! I checked out your son’s trades on your link and he is consistently up. How does he minimize losses so well? What is he looking for before buying into a position and what does he look for that triggers a sell? Keep up the good gambling!
……
I don’t give up the secret sauce that easily. Less your a needy short term rental, who wants to get out of the business, I’m not saying shit..
But then again, next time I’m on a big drunk, not buzzed like now..
I’ll spill the beans.. Problem is, you wont understand it.
Hjff4598 be something like that.
I mistakenly wrote conservatives are lazy anti union spend spend spend waste waste waste Cons.
What I wanted to say is they are lazy anti union steal steal steal waste waste waste cons.
If CONservatives would spend the money on the people of Canada then Canada wouldn’t be in this economic mess. Alberta will suffer a thousand cuts until they end up like Detroit.
What to do? Greed and fear in the sun.
http://www.theglobeandmail.com/globe-investor/personal-finance/retirement-rrsps/is-it-time-to-sell-your-us-snowbird-property/article23046347/
#54 Smoking Man on 02.19.15 at 8:47 pm…
In one breath you are going to teach us guys not what to do, then in the next:
“…Those that can’t do, teach…”
Then in #74, you state you will teach us gambling – does this mean you don’t know how to gamble?
Whoops!
BTW, how come your not here in Phoenix for the Nectonite convention (UFOs’r’us)
#93 Smoking Man on 02.19.15 at 10:43 pm
_________________________
Southside Johnny’s……Sunday Night jam evening…
Rebecca can give you inspiration…..
My Mother-In-Law believes that buying a rental houses is a great retirement income strategy. She has two, and hopes to buy a third soon. (In the Edmonton Area!) All are mortgaged. She just retired this month from a well paying career. Watching HGTV and doing renos are her hobbies, so I seriously doubt she has much squirreled away. So here is what I would like to know: when those mortgages come up for renewal and she no longer has employment income, what will happen? (No one else in the family thinks this is a problem. I’m the only one that is scared for them.)
#38 CalgaryBoy on 02.19.15 at 8:11 pm
————————————————————————
Give us a heads up when all of those dumps go under 250K. Still complete rip-offs at those “reduced” prices.
How about just selling the house tom. If there is a tom. I hope there isn’t a tom.
Smoking Man, if you don’t already know them, Henry Makow (good Ontarian) and David Icke, have long ago said about it, when it was not apparent or not existing in some places. Prediction is the best proof of who and why when something comes real.
“Does anyone on this blog use Bitcoin?”
Bitcoin is an excellent investment, but be wary of the NAV price.
…@SM: actually along your thinking about education, Henry Mackow, who’s a writer, PhD in Literature, has advised his son to avoid getting into university. Not that it does not teach you, but it damages your capacities. Interesting, eh?
#38 CalgaryBoy
Thank you for posting those links.
Did you ever notice that realtors are now using those wide-angle lenses to ‘stretch’ the outside edges of the photographs to make the rooms of the house appear to be larger and more spacious than they actually are?
This not only bends the rules of perspective, it also bends the rules of false advertising.
Many (but thankfully not all) realtors have little or no integrity. I have been around long enough, and seen enough, to know that this is true. Living on a commission will do that to you.
Did you ever see the sleazy real estate agents in the 1992 movie, ‘Glengarry Glen Ross’ ?
Watch that movie sometime! Star-studded cast and entertaining, well worth your time. Al Pacino, Alec Baldwin, Ed Harris, Alan Arkin, Jonathan Pryce, Kevin Spacey, Jack Lemmon…
In the movie, the rules of selling are A-B-C
ABC – “Always Be Closing”
In my opinion, this should actually be…
ABC – “Always Be Conning”
if
Hanging with my Realtress. The spy that loved me. Blog dog lounges 3-5. Putting on the Ritz.
What bear market.
Ps. Buy nat gas.
hair gel industry: from your link: Home Capital, which has 5.1% of its $22.6 billion of mortgages in Alberta, is curtailing lending in the province.
Victor V: you had the same link but “hair gel” is first
so I wonder maybe the big Canadian banks adopt the same policy but skip the press conference
notagreaterfool: Job losses and expenditure cuts are in vogue now with the Big Banks at Bay/King. Contractors and full timers are impacted. Notices issued. None of this reported
I suppose that at each of the big banks there is a Vice President of whatever. That person makes damn good and sure that it’s not reported.
lifeIsGood: The government of Quebec will help Bombardier if needed
I’m afraid it’s going to be needed. Quebec needs Bombardier to succeed. Canada needs Bomardier to succeed.
The CSeries was simply a mistake that Bombardier could not afford to make.
http://www.flightglobal.com/news/articles/opinion-bombardier-counts-cost-of-cseries-gamble-409042/
#228 happily married but on 02.19.15 at 3:26 pm
—————————————————–
It’s possible some of the issues you’re having could be alleviate by joining assets? It sounds like you’re happily married…why wouldn’t you help out your wife with her investments? You talk about ‘her’ financial assets and ‘your’ assets, but if you’re truly a team, there should be no distinction.
#109 BurnItToTheGround on 02.19.15 at 11:38 pm
————————————————————
I think the wide-angled lense works against them. Sure it may entice viewers to go see the place, but then they are let down when the rooms are smaller, dirtier and less finished than they were expecting.
Better to post pics that leave something to the imagination, and then have them pleasantly surprised by what they see in person.
#103 Mrs Bluesky on 02.19.15 at 11:17 pm
————————————————
The rental income can count toward the mortgage renewal. So she will likely be able to have them renewed.
To the Gullible…
A small side note about renting your poorly-thought-out condo buy…it is often mentioned here (and by the realtors, apparently) that if things go badly you can just rent and cover your mortgage. But, depending on the size/slant of the strata corp you may not be ABLE to. My strata is sub-20 units (on the small side, certainly) and we have, over the years, reduced our rentals to 3 (down from 5) because we really don’t want the intrusion/complication of renters. Not sure how things are in larger developments, but no one should presume that renting is a given!
#45 aL pacino on 02.19.15 at 8:28 pm
#23 Martin Cooper on 02.19.15 at 7:42 pm
This report on Singapore’s response to foreign ownership of property might be interesting. 18% tax on property for a start.
http://www.nytimes.com/2015/02/18/realestate/a-high-end-property-collapse-in-singapore.html
*****************************************
Oue pussy gov would never consider this as it would make them look racist or as Garth puts it,ISOLATIONIST.
Foreign buyers are not responsible for houses Canadians have themselves bloated. How about an 18% tax on stupidity? — Garth
————————————————————————
Garth with the greatest amount of respect I ask you, what would be wrong with taxing foreign ownership? So many countries apply these measures. Would it not contain/mitigate at least 1 more factor contributing to real estate speculation in Canada regardless of how minor you consider it to be? Why would we give anyone the same access to our country’s real estate as you would any Canadian??? Couldn’t our bankrupt governments use every dime they can get their hands on nowadays???
Seriously, what would be the down side in taxing foreign owners over and above the considerable amount that those who live, work and die in our country, have to pay?
#99
Yeah whatever… just admit it.. yer mistaken…and haven’t a clue what yer spewing
I repeat, – rates will NOT go up
The currency war is dirty and lots of underbelly punches are traded – from Greece to Germany from Rusia to Ukraine, you name it… from USA to Japan and Iran, etc …
All central banks play the dance (tough talk) but in reality they all EASE, EASE, EASE…..
Even there will be a fake little HIKE, it will be soooo temporary in the whole scheme of things, that it will not matter in a decade
FELLAS, let’s be clear (and wake up for God’s sake) the rate hike can ONLY happen if the shit really hits the fan and we have overthrown oligarchic capitalistic and communist goverments all over the world.
Change of world order, per say. So, you’re safe for a decade until the master of puppets decide to change the game. For now, they’ve lost control, so enjoy….
Looks like AJ Hazzi has been a naughty real estate agent… He was once suspended for 30 days for misconduct… Plus ça change…
http://caselaw.canada.globe24h.com/0/0/british-columbia/real-estate-council-of-british-columbia/2007/12/20/hazzi-re-2007-71635-bc-rec.shtml
#109 BurnItToTheGround on 02.19.15 at 11:38 pm…
I like the agent in this clip…
https://www.youtube.com/watch?v=HAeprWIOQqQ
“Why are some of you so happy when you see large layoffs?”
Happy is far too simple a characterization.
For some reason which I haven’t bothered to research, natural resources are a provincial bounty, not one for Canada as a whole. So some provinces boom and bust on the commodity cycle, and others are forced to trade with the disadvantage of a see-sawing dollar, but little offsetting advantage. This has led to interprovincial pettiness and jealousies.
Some of us are older and have read our histories, but there’s plenty of young and/or ignorant people in Alberta who claimed that the Alberta Advantage was all about low taxes and business-friendly government policy, that oil prices had reached a new permanently high plateau, that Calgary and Edmonton real estate prices had only one way to go, and that the rest of Canada just didn’t get it. If only Ontario’s government changed its fiscal policies, it could be just like Alberta! They posted here on this blog, and everywhere else.
We got a Prime Minister who was in the pocket of the oil industry, who ignored the one unwritten rule of his position (keep good relations with the US), and who, along with the Canadian Association of Petroleum Producers, figured if they could just buy enough advertising and advertorial, they could convince a lot of people worldwide that our hydrocarbons were cleaner than they actually are.
Whether or not you agree with my characterization of the above, it’s safe to say that Ottawa and Alberta have been absolutely incompetent at getting the oil to global markets without lining the pockets of the railroads or US refiners who buy it at a discount. Alberta’s negotiating position with BC on pipelines (“you’ll get some jobs for a few years while you build them for us, and can you shine our shoes while you’re down there?”) was spit-out-your-coffee laughable. Ottawa’s refusal to implement a carbon tax or anything else to appease POTUS made Keystone XL no easier. But the drilling, digging and pumping continued, at a discount, with even whole companies sold to foreign governments.
When a bug has been cocking a snook at you for years, it does put a bit of a smile on your face to see it hit the windshield with a juicy splat, even though you know that it’ll be bad for the country as a whole.
There’s another part to it:
Deep down, most of us know that burning vast quantities of hydrocarbons is not making the world a better place. It makes us worse off collectively, but the pain isn’t evenly distributed. Shareholders and some energy workers are greatly enriched, and your average schmuck gets the benefits AND the drawbacks of cheap but polluting energy.
Similarly, the oil bust makes Canadians worse off collectively, but the pain isn’t evenly distributed. And for the true opportunists, the vultures if you will, who know that all is cyclical and have been stacking cash for a new car, a new boat or a new house, others’ misfortune is the precondition to a deal. It isn’t a matter of wishing misfortune on these people, merely of knowing it was inevitable and wondering how they could possibly believe that the cycles had been suspended.
#77 pwn3d on 02.19.15 at 9:55 pm
Maroon is reading the chart upside down and doesn’t even know it. Nobody has to work to prove the GTA/YVR markets haven’t been in decline for 2 years, because they haven’t.
I know I shouldn’t respond to the troll but now I see why he got booted from RFD.
Why did he get booted from RFD?
Mark never provides any links to sources. He talks a lot about having provided them though. I guess that’s similar.
Who believes this realtor drivel anyways? Certainly not me.
I recall a colleague, turned realtor, told me I was stupid to have my money in retirement funds. Real estate was where it was at he said. I said thanks for the advice and moved on.
Fast forward a number of years and I understand he is still flogging real estate, but driving a bus part time. And my retirement funds, a balanced portfolio 40/60 is now 7 figures.
Wonder if I should have listened to him?
Recall looking at condos on Bear Mountain in Victoria. Realtor said they were a great buy and said I was foolish not to get in. I asked how many he owned. His response, none, he had gotten burnt in the last downturn.
So, again I wonder if the realtor is offering sound advice?
And this:
“Apple Inc., which has been working secretly on a car, is pushing its team to begin production of an electric vehicle as early as 2020, people with knowledge of the matter said. […] could set the stage for a battle for customers with Tesla Motors Inc. and General Motors Co., both of which are targeting a 2017 release of an electric vehicle that can go more than 200 miles on a single charge and cost less than $40,000.”
Those oil sands start to look less like a natural bounty and more like a stranded asset if, in the foreseeable future, we’ll only need oil for petrochemicals, marine, air and heavy transport.
Calgary Deathwatch…
A large number of Cowtown condos are rental investments. Heaven help the owners when the layoff tsunami hits.
Imagine holding property you will not be able to find renters for and trying to come up with mortgage payments.
A lot of opportunist greedy landlords about to be taught some hard life lessons.
Couldn’t happen to a more deserving bunch!
I don’t remember anyone in Alberta (or Ontario) complaining about the money being spent on new programs over the last decade.
” So here is what I would like to know: when those mortgages come up for renewal and she no longer has employment income, what will happen?”
The problem with such a scenario is that the bank that holds the mortgages may very well only send a letter offering a renewal at the ‘posted rate’. Which is at a substantial premium to the widely available ‘discounted’.
Now, without employment income, the ability to refinance these mortgages with another lender, particularly if equity in the properties is poor (due to depreciation) could be relatively minimal. Hence, in such a scenario, with a relatively weak equity position, the mortgage rates offered upon renewal could be very uneconomic.
If she has a strong equity position in the properties, then the risk of not being able to find low cost financing will be somewhat less. After all, there’s usually always going to be lenders out there willing to give pretty good rates out against relatively low LTV loans. Its the high LTV stuff that will face the worst of the escalation in risk premia, for the obvious reason of risk, especially as LTV’s rise across the board due to declining housing prices.
“…the dude would soon be back shaving goat meat at the local Shawarma hut”
thing is, making and serving cheap food is perhaps one of the more honest professions out there. I am not always sure about financial services.
Everyone is hedging for inflation by maxing out on debt for real estate.
But what if instead of inflation, we get deflation?
How many people have an exit strategy if this goes the other way?
Smoking Man, big month for you at the supreme court.
Garth, what you think of the Euro vs USD trade in the medium term 3 years?
@snowboid
Where are you in the states ? Any recommendations for a location to enjoy a second home during the winter? Phoenix?
#109 BurnItToTheGround: “Glengarry Glen Ross”
If I had to list the ten greatest American movies I’ve ever seen, “Glengarry Glen Ross” would be on that list, near the top.
Lying for a living has its consequences.
Jack Lemmon as a failing Reaturd gives the performance of his life. Al Pacino as a gifted Realturd delivers the monologue of a lifetime.
If you liked “Glengarry Glen Ross” (it was not a commercial success) have a look at Mamet’s “Oleanna”. Both plays also raise gender issues.
No females appear on the screen in “Glengarry Glen Ross”; “Oleanna” examines the psychological destruction of a male professor by an angry female student.
#112 Bottoms_Up on 02.19.15 at 11:48 pm
#228 happily married but on 02.19.15 at 3:26 pm
—————————————————–
It’s possible some of the issues you’re having could be alleviate by
joining assets? It sounds like you’re happily married…why wouldn’t you
help out your wife with her investments? You talk about ‘her’ financial
assets and ‘your’ assets, but if you’re truly a team, there should be no
distinction.
——–
Hi Bottoms_up
We have joint chequing acct and share title on vacation home we bought for cash 50/50. We put a picture of it on wall and saved for three years together, but all the research/dealing I had to do. Our will’s are to each other, etc, harmony in relationship, it’s just that she has no interest in investing. Making little steps tho, back when dollar was near par, we started a joint US saving acct and put some cash in it. Now she’s checking the exchange rate because it’s fun. But I don’t think she would ever do something as ‘crazy’ as set up a US acct on her own. Wonderful person, just believes that the lottery fairy will provide. The stupid thing is that she probably will win and her game plan will be complete.
I think that Realtor AJ above gets clients because he spells it out… do this, this, and this, and you win. “Balanced and diversified” doesn’t have a clear recipe for novices.
I learned what the term ETF was from this blog about two months ago and now plan to acquire one. I hope they take less maintenance than a cat. I also never knew what the forex was before this blog and started a demo acct on Zulutrade to see. Sort of like Bingoblitz on ipad, she might like it.
is FINISHED on 02.19.15 at 8:45 pm
“…uneducated puppets Albertans are known to be.” We’re quite well educated; observe:
“What did the ….Cons do with hundreds of billions of dollar?” – the link you shared mentioned only in the range of ‘~$50 billion wasted’. Still a lot, but typically the use of the quantity of ‘hundreds’ would apply when there are at least 200. In this case there is not, only your hyperbole.
“Norway has saved $759 BILLION dollars while the anti union lazy …conservatives saved nothing.” – again, referring to your link, the article said that alberta has saved $16 billion (the latest report is actually $17.4B), which is not nothing and is still infinity% more than the what the rest of the country’s provinces have set aside.
“I hope Alberta gets all the lay offs they deserve.” – what about all the out of province layoffs? Do they and their families deserve that? Men, women and children will soon be seriously hurting all over the country, it’s sickening that some have no thought of compassion for them.
Central banks around the globe have lowered interest rates 14 times already this year.
Money velocity at a 55 year low in the US. 36 year low labour participation rate in the US.
Money printing has not stopped in the US..
http://www.usdebtclcock.org
I can’t believe the realturds can legally sling this horse crap. These jack assess need to be reigned in. We need a regulatory body that actually gives Canadians unfiltered access to real time and historical market data.
It is total horse crap that I can go buy 100 shares of Canoe Income fund, spend a whopping $1,250 and I will have more market information and statistics available to me then people buying a house. Statistics on the stocks that have the same method of calculation, and which don t change month to month to suite the companies manipulation of the performance metrics.
People spend $500,000 (mostly on debt) on a POS 1,200 square foot new bungle, constructed by a bunch of hacks who couldn’t have a viable business model in a well informed and balance housing market, and there is less transparency and market data available then when making a $1,200 cash stock purchase.
Thanks for keeping this blog going Garth! Your critical thought and alternative perspective to the mainstream masses is much appreciated. It is sad to see that the majority of people have been brain washed into granite sniffing, hardwood humping, cheap laminated cabinet door licking, mdf trim loving, assess.
And seriously, I am not one who gets wrapped up in letters, degrees, titles or credentials even though I technically have quite a few of my own. Buy when the hell did taking a week or two course qualify someone as being a professional. Give me a break.
Al Pacino as an angry Realturd
https://www.youtube.com/watch?v=GbcfyLfPdlc
(viewer discretion advised . . . )
Interesting Facts For Thursday Feb. 19, 2015:
Toronto, Ontario:
—————–
“Extreme Cold Warning In Effect”, several feet of snow on ground.
High: -16 C (windchill -28 C)
Low: -22 C (windchill -34 C)
Average 2 bedroom house price $875,000
Lillooet, British Columbia:
————————–
All snow has melted, green grass sprouting.
High +12 C (warm and sunny)
Low 0 C
Average 2 bedroom house price $175,000
Orlando, Florida, USA
———————-
High +11 C (warm and sunny)
Low +3 C
Average 2 bedroom house price $190,000 ($C)
Lillooet, British Columbia was actually WARMER than Orlando, Florida on Feb. 19, 2015 and felt 40 C warmer than Toronto!! Freaking mind-boggling!!
i think that the law historically has looked at the securities industry as the wild west where canada during the 50 to as late as the 80’s was viewed around the world as the vancouver bucket shops. i briefly worked at one in toronto. the regulators have all shut them down. calling people up and selling securities that eventually go to zero was written in the cards, everyone knew that. The government wrote the rules up to protect the little guy from guys calling wanting to sell them 500 bucks of some resource company stock.
then it was tightened to know the client rules, and with regulations tightening they simply went away. i can mention brokers names that dont exist anymore but nothing matters anymore. Canada was a big player in the 60’s and 70’s selling worthless securities especially to european investors.
but in real estate, they allow this marketing of high returns i think because in the end you get a piece of drywall, not a worthless piece of paper. even if the drywall you ended up paying 20-40 percent more than it might be worth, it doesnt matter its a business transaction, you actually get something in the end, you dont loose all your money, real estate will never go to zero, but securities do, and the law is to protect the real low end spectrum where it was assured that all these stocks go to zero.
currently in the venture exchange small resource companies are hanging on and barely surviving, hundreds of them. as larger barrick and goldcorp are having trouble the smaller ones are walking dead.
garth should discuss raising money problems for small venture exchange companies, looking at tax credits for non-resource companies such as in the biotech and tech industry to get capital into the hands of up and coming companies.
our past has been about selling worthless securities to nieve americans and europeans, but the regulators look at real estate as selling potentially an overpriced product, not a misrepresentation and total loss issue.
hence the big difference in licensing and regulations.
between the securities and real estate industry
Mark on 02.19.15 at 6:45 pm
Hence why so much effort, so much investment has been made towards keeping the delusion alive, especially in the major centres, of RE price appreciation. The Toronto/Vancouver markets have been in decline for most of the past 2 years, but the RE sell side crowd has been working overtime, in almost every venue possible, to deny such fact.
===================
The delusion equates to a cash grab. Higher price means higher property taxes for the government. You think they want to stop this gravy trains in its track. Absolutely not. Without the tax dollars the government will have to cut back.
Also note concerning yesterdays blog. Yes the old guys like to keep their jobs forever. But there will come a day when they would get laid off for some younger prospects.
What has happened is several companies is they red circled guys that are 58 and higher and gave them a package and got rid of them. Companies are realigning themselves for the future and most likely the doesn’t involve a geezer
Yup…yer right G. The guy who leverages himself into a 1.88 million dollar bind at the beginning of a real estate crash…is pooched. Even in the best times there is only one rationale for buying real estate….the market must be going up. If it isn’t…stand back and let the crowd roll by.
The long term landlord business has big risk. If you’re on title…you are ultimately responsible…so if you’re rent to buy tenant loses his job…he walks…you’re stuck.
There wil be a time to buy Alta….it ain’t today. The people who drove up prices in Kelowna were Albertan’s….and if Albertan’s are in the crapper…so is Kelowna.
There is a much more straight forward and less risk method of making money. You need to go to the place where all money is created …the stock market.
And BTW…nobody believes the story about the oil price crash being based on fundamental facts. This crash has been arranged….professionals and leaders around the world know and agree. They have made very public statements. I don’t think Obama has any idea what he’s doing…but her sure isn’t going to get rid of Putin or weaken Iran in the time he has left.
http://www.talkmarkets.com/content/us-markets/who-is-behind-the-oil-war-and-how-low-will-the-price-of-crude-go-in-2015?post=55751
Astonishing what people will believe. I feel sorry for you. — Garth
#133 happily married but on 02.20.15 at 2:19 am
————————————————————–
Sounds like the lottery fairy is you lol.
Yes ETFs are a good way to be diversified (if you buy the right ones), I use blackrock’s website (click ‘ishares’ then ‘products’ to see the list of ETFs available from blackrock):
https://www.blackrock.com/ca/individual/en/products/product-list#categoryId=1&lvl2=overview
@ Lillooet BC – Shhh. You’ll hex our BC weather.
You know what they say about Canada – 3 months of winter and 9 months of damn cold. The east is the designated Arctic freeze zone… for now. We’ll get our turn at something ugly soon enough.
Dunno why they’re calling it the Siberian Express though because most of Siberia is much warmer than eastern Canada right now.
Maybe Siberia is a good retirement option now that it’s warming.
https://www.youtube.com/watch?v=3uWlUh-aLyE
bonus: For those suffering from snowed-in cabin fever here’s a lovely river cruise on the Volga.
https://www.youtube.com/watch?v=c-9IXak8_3Y
The media loves it’s lists. How did you do?
http://www.theminimalists.com/broke/
To Ralph Cramdown
Walmart’s 1 billion dollar raise is peanuts to an annual 15 trillion dollar U.S. GDP economy.
It is all just hype by the media and soon in the next 1 to 2 years that they get their $1,000 to $2,000 a year raise for only 40% of U.S. workers not worldwide workers, it will be so little for wage inflation.
Wait in 1 to 2 years and see how much their rent will go up, another $50, $75 a month.
Their wages are taxable so they may keep only $800 to $1,600 and then by the time they pay others for everyday expenses, it is gone……..
The WM workers I saw on TV looked happy. Maybe you should worry about you instead. — Garth
#101 Snowboid on 02.19.15 at 11:07 pm
#54 Smoking Man on 02.19.15 at 8:47 pm…
In one breath you are going to teach us guys not what to do, then in the next:
“…Those that can’t do, teach…”
Then in #74, you state you will teach us gambling – does this mean you don’t know how to gamble?
Whoops!
BTW, how come your not here in Phoenix for the Nectonite convention (UFOs’r’us)
………
Got nothing to sell yet, perhaps next year after my book is published.
Understand Bob Lazar is speaking, should be a good one.
Thanks Blog dog Jamie, that is a great search.
I thought a Mako was a shark? Beware of anyone named Mako! Were Mako and AJ running Internet scams out of Nigeria before then latched on to BC real estate?
#9 Hit the nail on the head.
I once asked a telemarketer selling a trading system, if his system was so good, why doesn’t he just make millions using it instead of wasting time on the phone trying to convince others to buy it? He shocked me with his candour and honesty. He said it was easier and less risk to make hundreds of thousands giving support to those who buy his system. Besides he had alimony to pay an ex-wife!
A commodity broker also told me that those who have a real system for making millions keep it secret, and those who sell get-rich trading systems do so because they are a house of cards.
I agree with everything you said except this part
“Plus, has a realtor ever explained that rental income is taxed at 100% of your marginal rate while investment returns are generally taxed at just 50%?”
On a rental building you will claim depreciation to offset the income. So you basicly turn the current income into capital gain to pay down the road.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/rntl/cca-dpa/clsss-eng.html
Income is income. It is fully taxed, unlike dividends or (future) capital gains. That’s why most people (in this case, as a good example) buy rental properties. — Garth
LOL the retail sales printing… coming from the ministry of truth on top of that. I guess the easier money didn’t get to live long. Bets are on for a nice spring market.
“It’s practically like giving away free money”. You can’t keep a good realtor down.
http://www.biv.com/article/2015/2/cheap-money-floods-commercial-real-estate-market/
Housing prices are comparable to the Maple Leafs…. how you might ask??? Well, the Leafs suck, and they will continue to suck for a long time. They will continue to charge outrageous amounts to see their games. Why? Because no matter how bad they are, no matter how many games they loose, no matter how poorly the team is managed, there’s always at least 17K people who will go see every game at those prices. The fans have the power to make change by not buying tickets, jerseys etc.
In the same way, people have the power to make changes in housing prices by refusing to pay inflated prices. But because we are collectively stupid and easily manipulated (thanks organized religion and public education), we blindly believe everything that comes out of our television and MSM or anyone who claims to be an expert.
Nagraj: If I had to list the ten greatest American movies I’ve ever seen, “Glengarry Glen Ross” would be on that list, near the top.
Al Pacino plays the part of Ricky Roma who says ( with great talent and conviction) “what you’re hired for is to help us”
http://www.imdb.com/title/tt0104348/?ref_=nv_sr_4
the written words don’t convey the real emotion behind them
I believe that real estate sales are now declining in Canada, maybe not by a lot. Prices will follow. The real estate boards across Canada are determined not to be the first to announce this decline. Behind their determination is the emotion and anger that you see in Ricky Roma.
I’m looking for ideas. One idea is to require that public statements on sales and prices be independently compiled and verified. That is if you want to say “average prices are up 5%” or whatever then the sales and prices must be independently compiled and verified and be independently published on the internet. I’m thinking this could be done with a dozen people across Canada, probably within CMHC without any new hires.
The RE industry definitely needs to be regulated like the finance industry. How is this not a concern to at least one responsible politician??
115 – Grasshopper 604
”Not sure how things are in larger developments, but no one should presume that renting is a given!”
Exactly. Several years ago I purchased a townhome in a 24 unit development before any rules were put into place. It was my intention to rent it for awhile before possibly retiring to it. I was only 46 at the time. Once units were sold and board set up it was decided that the age limit to purchase would be 55 and that units could not be rented, plus no animals. It seems that most of the purchasers were retirees. I was able to rent it since I’d purchased it before the rules were in place but exactly as Grasshopper says, you could be buying into a problem. Not only that, but in a bad market if you are forced to sell and can’t and not able to rent, you could be stuck with a vacant unit and all the costs involved.
#121 Ralph Cramdown – great post Ralph.
The Canadian dollar is back below 80 cents US, where the ***** belongs!!!
65 dosouth on 02.19.15 at 9:15 pm
Thanks, that was a great laugh! A person has to be some kind of moron to get himself disciplined by his real estate board- they aren’t exactly known to be draconian.
My favourite part: “(i) failing to clarify in writing the value of the 2002 Bombardier (quad ATV) for the purpose of the contract, failing to clarify why a deposit of $5,000.00 was payable to someone other than the seller;”
Ask yourselves: if AJ Hazzi does not know the value of a quad, how well could he possibly know Kelowna?
69 Smoking Man on 02.19.15 at 9:26 pm
“Most Tinfoilers get it wrong, the where it like a Yamaha.”
That took me a minute, Smoking Man. What about the Jewish tinfoilers among us? Yamaha might be the right method for our foil hats.
#154 45north
Back in 2002 or so, while researching a property, I went to the city records in Toronto. They had hard copy paper files of what I recall were the agreements of purchase and sale, these included dates and prices. I was surprised this stuff was accessible because it gave me a hint as to the seller’s position. (for those who don’t know… in a buyer’s market, buyers can perform research on a property and bid what they feel a property is worth based on history, condition and what’s in the neighbourhood, rather than blindly faxing irrevocable offers 10% over asking in the middle of the night.)
I heard that these records are not so easily accessible now, title fraud having been a problem in those days…
Anyone know if there’s a similar electronic record now?
Hi Garth and Blog Dogs,
Well I know this is a blog about houses/finances/comedy/ and even women/marriage advice, so I have a question…
We just rented (leased) a new van, will have it for 3 years. I wanted a Grand Marquis or Crown Vic, but if I got one the wife said I’d have to sleep in it, and she was serious! I even said if we get the full size sedan I’d buy her a set of diamond earrings, no deal. Now which vanity plate is better for a Caravan?
FORHER
or
RATRACE
I’m not sure which one to go with?
Sometimes I think Freedom First has good points…
If you’re looking for an easy 20% gain on your money, forget about condos and only buy stuff that’s on sale. Most recently that was oil ETFs like XEG-T or USO-NY that were almost being given away earlier this year. Others that were recently being given away (but are still cheap) include HNY-T and AHY.UN-T. In the last half of 2013 the sales were on REITs. Did I hear someone say buy low, sell high?
As for the Cowtown (and the rest of Alberta) death watch, it wasn’t long ago employers in Alberta were bitching and bellyaching about labour and skills shortages. It seems like it’s been going on since Sir John A MacDonald quit politics and went back to Kingston to retire. So, all you employers, now is the time to strike while the iron is hot and scoop up those skilled people you’ve been looking for! Well, what are you waiting for?
Dollarama stock price hit new high today. Sign of the times.
(I exited nat gas at the open (3 days in play) and jumped into oil. Why not.)
In addition to my above comment at 12:15, AHY.UN is still on sale! Forget about those overpriced condos.
Crazy question:
I have $500k in RRSP & TFSA at age 39.
I put in $35k (RRSP and TFSA) every year (for my wife and I).
Assuming 5% return and retirement @ 65 years old, it gives me $4.2m in the accounts according to TD’s online calculator.
Is it possible or dangerous to have too much in the investments, RRSP or TFSA?
“Mark never provides any links to sources. He talks a lot about having provided them though. I guess that’s similar.”
I’ve provided plenty of links, data, and thoroughly detailed examples of calculations to back up my claims, and always have. Not sure what you’re talking about.
“, real estate will never go to zero, but securities do”
Real estate goes to zero plenty of times. For example, in Dartmouth I am told, some vandals ran around to a number of residences and snipped lines from the outdoor oil heating tanks to the buildings a few years back. The result? A bunch of effectively worthless properties since the cost of cleaning up contaminated soil exceeded the economic value of the property.
The main reason why RE isn’t regulated like securities is there is a virulent anti business environment in Canada at almost all levels of government. Which is why the employment situation in Canada sucks so bad.
#162 – Jeff how about “notmine” :)
YIKES! Things are getting quite bleak:
http://www.wsj.com/articles/ivanhoe-files-for-bankruptcy-protection-in-canada-1424438405
#110 TurnerNation on 02.19.15 at 11:42 pm
Ps. Buy nat gas.
————————————————–
#164 Turner Nation –
(I exited nat gas at the open (3 days in play) and jumped into oil. Why not.)
————————————————-
Geeze, make up your mind. Now what am I supposed to do with my gas you suggested I buy. lol
@Jeff in Moose Jaw:
I prefer RATRACE over FORHER, but there are others:
WAGESLV
CBCLMKY
TAXFARM
SHEEPLE
GTRFOOL
HMOWENR
This is fun, but I should really get back to work.
#162 Jeff in Moose Jaw
Do you have kids? Are they being driven around for hockey lessons or other extra-curricular activities? I hardly think women are so different from men that a Caravan would be considered a status symbol for her.
#162 Jeff in Moose Jaw on 02.20.15 at 12:04 pm
Hi Garth and Blog Dogs,
Well I know this is a blog about houses/finances/comedy/ and even women/marriage advice, so I have a question…
We just rented (leased) a new van, will have it for 3 years. I wanted a Grand Marquis or Crown Vic, but if I got one the wife said I’d have to sleep in it, and she was serious! I even said if we get the full size sedan I’d buy her a set of diamond earrings, no deal. Now which vanity plate is better for a Caravan?
FORHER
or
RATRACE
I’m not sure which one to go with?
Sometimes I think Freedom First has good points…
_________________________________________
How about GAVEIN?
I would have gone for the Grand Marquis, had one back in the late 80’s best car I ever had. Ran that sucker for 457K before I traded in for an SUV. By the way the Grand Marquis and Crown Vics were made here in Ontario down in St Thomas.
“back shaving goat meat at the local Shawarma hut”
*snort*
Brilliant exposé of these ridiculous shills. The housing market in Kelowna is a vast morass of stale listings.
I’d like Mr. Hazzi to assure my neighbours of the wisdom of his “fail safe” plan. They have been trying to sell their unit now for just over 3 years, along with several other poor saps in my building. My neighbours have already shaved off $50K of the original asking price and no biters. Worse yet, the unit has sat empty for months at a time for lack of tenants.
Realtor-scammers ought to be prosecuted to the fullest extent of the law. It’s simply revolting.
#64 lee
Some people are like this I believe because they can’t stand to see someone without higher education who hasn’t payed their educational dues who has taken a chance they would never take,make more money than them.The school system pushes them and tells them that their future is with a degree,they spend the time,money,effort and sacrifice only to get a low paying job competing with grads,this can make people very bitter.We love to knock everyone down in Canada it seems,no one celebrates or congratulates risk takers who succeed,we wait for them to fall and then secretly gloat about it.The British SAS have a saying “he who dares,wins”
#147 Smoking Man on 02.20.15 at 9:49 am
#101 Snowboid on 02.19.15 at 11:07 pm
#54 Smoking Man on 02.19.15 at 8:47 pm…
In one breath you are going to teach us guys not what to do, then in the next:
“…Those that can’t do, teach…”
Then in #74, you state you will teach us gambling – does this mean you don’t know how to gamble?
Whoops!
BTW, how come your not here in Phoenix for the Nectonite convention (UFOs’r’us)
………
Got nothing to sell yet, perhaps next year after my book is published.
Understand Bob Lazar is speaking, should be a good one.
_____________________________________________
Smoking Man is a Contradictio in terminis!
http://www.youtube.com/watch?v=vwVZ-sLkPGE
The latest from my favourite Arnold impersonator and son.
The trend to condos because of affordability, interesting until near the end they talk about one of their listings, a condo that just happens to be over-priced for its’ location – funny!
https://www.youtube.com/watch?v=Re3IA8eFskU#t=26
More Alberta layoffs – Finning is letting 500 people go (9% of their workforce). Things are getting ugly out here in Alberta. The longer we have sub-$70 oil the deeper the cuts will get.
http://www.vancouversun.com/business/resources/Alberta+oilpatch+cuts+bite+Finning+other+based/10827623/story.html
Talk about a fish out of water, I saw a shiny new red F-150 with Alberta plates on the QEW in Burlington this morning. It had a serious lift kit and fender flares installed. No truck-nutz swinging, but it had wicked moose-bars installed across the front. I’ve never seen another truck like it in Ham/Burl. Wonder where he was headed at 8 o’clock in the morning with a step-ladder in the back?
Crossbordershopper you say real estate can never go to zero ,but isn’t that what happened in large parts of Detroit?
crash callaway on 02.20.15 at 12:41 am
Calgary Deathwatch…
A large number of Cowtown condos are rental investments. Heaven help the owners when the layoff tsunami hits.
Imagine holding property you will not be able to find renters for and trying to come up with mortgage payments.
A lot of opportunist greedy landlords about to be taught some hard life lessons.
Couldn’t happen to a more deserving bunch!
-_______________________________
Alberta is going to face a world of financial hurt. The house of cards in Alberta is come down and will crash hard! Alberta is finished and it really couldn’t happen to a more deserving bunch of fools.
#131 TRT on 02.20.15 at 2:09 am…
We are in the NW valley of Phoenix, purchased a SFH in 2010 for a tad over $ 100K in a managed community with golf courses, rec centres, pools, etc. HOA (strata) fees are $ 600 a year and nice houses average around $ 200K US now. Renting similar furnished homes during the peak winter season run around $ 2200 a month.
There are close to 800,000 Canadians who spend all or part of the winter in Arizona. Most of them seem to be from Alberta, Calgary is a sister city to Phoenix. But only one of our Albertan neighbours (and one from Sask) have sold in the last year.
There are enough Canadians here to host an annual picnic (a couple of weeks ago) http://canadianpicnic.com/
To enjoy yourself here you must like sun and sand.
Being a large city there is tons of things to do, sports, concerts, car sales/auctions (Barrett-Jackson every year), museums, galleries, and a zillion restaurants.
We considered Florida and California for second homes, but settled on Arizona as we both love the desert.
http://securerealestatephoenix.com/moving-2/move-to-phoenix-relocating-to-phoenix-top-7-things-you-should-know-about-phoenix/
http://www.huffingtonpost.com/moira-mcgarvey-/retire-in-arizona_b_5066055.html
#162 Jeff in Moose Jaw on 02.20.15 at 12:04 pm
————————————————-
For that vehicle I’d prefer:
THISUCKS
Just because someone looks happy it does not mean they are.
I never worry. Just like the song when you worry you make it double, don’t worry be happy.
2400 students left in limbo and another 450 permanent pink slips issued as Everest Colleges shut down in Ontario.
http://www.huffingtonpost.ca/2015/02/19/ontario-shuts-14-everest-_n_6715532.html
#121 Ralph Cramdown,
One thing to think about when pondering why natural resources are a provincial duristiction and not Federal is that in the beginning it was not a given that Canada would even happen. Provinces had to be convinced that there was a net benefit to joining the federation as opposed to going it alone. Likewise, once Canada happened the provinces that had already joined had to be convinced there was a net benefit to letting new provinces join. There would have been provinces who’s resources were worth more than others. Rather than sitting at the bargaining table for years and never coming to a deal it was more practical to just say resources remain with the province. Remember too at the time Alberta joined Canada we would have been considered a very resource poor province. They would not have wanted us to “unfairly” share in their rich pool of resources.
I get that some Albertan’s have come off as smug and/or cocky and how many people like to paint us all with the same brush as a result. But some of the vitriol that comes back in return still astonishes me. I suppose it’s just human nature, which is why (some) people like to read tabloid papers about which formerly high flying celeb has fallen flat.
184 Snowboid on 02.20.15 at 1:45 pm
Thanks for the links. I learned that they call themselves Phoenicians (that is hilarious), and that they have some self-awareness about the fact that they have organized themselves to be completely car-dependent. When I’ve (briefly) been there, they seemed oblivious to it.
This one’s my favourite: “Summers are just plain hot, but we have plenty of pools & air conditioning everywhere! You have to make sure you have covered parking and good air conditioning in your car and you will be just fine.” No one can accuse them of being tree-huggers, I suppose.
#169 FormerSaskie
#172 Renter’s Revenge!
#173 Mixed Bag
#174 Holy Crap Wheres The Tylenol
#185 Bottoms_Up
Thank you all for the advice, those are some good plates (glad I asked):
TAXFARM
THISSUCKS – if they let it pass?
GTRFOOL – I like this one!
NOTMINE – Another great one.
Will have to think about it.
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/cnrls-warning-to-oil-sands-cut-costs-or-face-death-spiral/article23108318/
Mr. Laut said oil sands producers were making three times the profit in 2004 when a barrel of oil cost about $40 (U.S.) than it did when the price hit close to $100 in 2013.
He said rising costs from suppliers, and not world oil prices, were the reason that CNRL and others could no longer produce the profits it once did.
Mr. Laut expects oil to eventually settle in the $60 to $75 range but insisted that the oil sands can only avoid collapse if the people in the room – contractors and service industry representatives – begin cutting costs.
…
Mr. Laut said the American fracking industry has become the oil sands’ biggest competitor by developing new technologies to bring down extraction costs. If nothing is done to bring down oil sands costs, he said, the industry could be doomed.
Anybody expecting the crazy boom-era salaries to return anytime soon may be in a rude awakening. A lot of experienced, unemployed folks will be looking to take what they can get and the major players may no longer pay to get labour at any cost.
Inventory build yesterday was either 7 million barrels or 14 million barrels. New records either way. Analysts expected 3 million. The collapse in rig count might start to impact production in the summer. Methinks the spring real estate season in Calgary is looking pretty grim.
Further to the sentiment that people “love to hate” Alberta … Most “Albertans” are actually from somewhere else. It use to be half of Albertan’s were actually Saskatchewanians(?), but now it’s really a microcosm of Canada. I count former BC, Territories, Sask, Man, Ont, NS and Newfoundlanders all amoung my close circle of friends. In a down turn it’s usually the new comers that suffer the most because they’re less established. So I don’t get why you all (and by that I mean the vocal few) love to see Alberta “get what’s coming”. I hate to tell you it’s not the big fat oil tycoon that takes it on the chin, it’s the little guy who just lost his job and took a chance by moving his family from Newfoundland.
#166 Irish Stew on 02.20.15 at 12:37 pm
RRSP: yes. In my days as a bank teller, I’ve met a few pissed off Boomers who diligently built up hefty RRSP accounts, just as they were taught to, and who now are hit with hefty tax bills for the withdrawals. Everybody’s situation is different, so analyze yours.
#122 Leo Trollstoy on 02.20.15 at 12:35 am
#77 pwn3d on 02.19.15 at 9:55 pm
Maroon is reading the chart upside down and doesn’t even know it. Nobody has to work to prove the GTA/YVR markets haven’t been in decline for 2 years, because they haven’t.
I know I shouldn’t respond to the troll but now I see why he got booted from RFD.
Why did he get booted from RFD?
Mark never provides any links to sources. He talks a lot about having provided them though. I guess that’s similar.
——————–
Yup, a professional troll. Make ludicrous statements of fact, and then when asked to prove it claim he already did or ignore the question and answer with some other argument with no other purpose than to inflame those trying to have a rational conversation. I wasn’t inolved but did read some of the real estate threads at rfd and it was a little disturbing the way he was talking in the third person, I think he may be touched.
#183 Alberta is Finished
You really are not well. It is obvious you are an ignorant uneducated fool.
“Is it possible or dangerous to have too much in the investments, RRSP or TFSA?”
It might mean that you’re not fully diversified across all asset classes. As what can be held in a RRSP/TFSA is limited to investments that the government has authorized for inclusion in such.
For instance, if that’s your entire portfolio, its quite possible that you’re underweight residential real estate. Now, I’m not going to advise that you go out and buy a house at current nosebleed prices, but if you don’t own one, you certainly should consider such when prices fall enough so that the cost is more reasonable (ie: 60-70% off current prices!).
Garth, I feel like this picture belongs in one of your future posts. http://33.media.tumblr.com/7035904a15c6769700498be815d21808/tumblr_n3y0ndZK421tvada4o1_1280.jpg
The longer you hold a paying investment (re-invested dividend, or rent), the higher the rate of return.
“Pictures are worth a thousand words”
I wouldn’t trust Hazzi any further than I could throw him.
#62 Ralph Cramdown on 02.19.15 at 9:07 pm
#121 Ralph Cramdown on 02.20.15 at 12:31 am
Both posts worth saving; bulls eye. You should be writing a blog as your insights are clear and I believe accurate.
Trickle down does not; has not and will not work; they already have all money at the top. Drop $1000.00 into the pocket of a Walmart Worker (Service Sector) and it will be spent and the real economy will move.
I am in Alberta and sick of the smug SOB’s; we had the luxury of oil revenues to pay for the nasty ideology; and superior attitude.
What is with the CON alignment to Oil and Gas; Bush(s), Harper, Prentice the Wild Rose. All in the O&G industry pocket.
“I wasn’t inolved but did read some of the real estate threads at rfd and it was a little disturbing the way he was talking in the third person, I think he may be touched.”
Talked in third person? What are you talking about? What’s disturbing is that people like you are willing to make stuff up, and then use such made up stuff in what effectively amounts to personal attacks instead of debating the issues at hand.
Why did he get booted from RFD?
I guess I wasn’t buying enough advertising on the site. But seriously, even after my ‘departure’, the trolling continued by the individuals in question and my absence has had little impact on the very poor behaviour of the trolls in question. They simply moved onto other targets. The mods have now cracked down to an extent that practically no useful RE discussion exists at the site anymore. Which is quite unfortunate for participants who, if they actioned my comments on RE over the past 2 years, have saved themselves literally tens of thousands of dollars in avoided RE depreciation.
” … merely of knowing it was inevitable and wondering how they could possibly believe that the cycles had been suspended.”
Exactly … cycles! Everything goes up, and then goes down. My mum’s investing advice? Don’t sell, especially if you are getting paid (unless something is in terminal decline). Instead if rebalancing and triggering cap gains and fees, just pour new money into what is down today (it is bound to go up later … cycles, remember?)
God bless my mum :P
#168 Real estate goes to zero plenty of times. For example, in Dartmouth I am told, some vandals ran around to a number of residences and snipped lines from the outdoor oil heating tanks to the buildings a few years back. The result? A bunch of effectively worthless properties since the cost of cleaning up contaminated soil exceeded the economic value of the property.
Mark, Proof Please….Am from Dartmouth and visit every year, never heard this before. Not saying it isn’t true but am thinking urban myth.
Assuming this is true.
-Why would some idiot cut oil lines given they likely couldn’t afford the house in the first place.
– Remediation. here in Van average cost about 30k. assume less cost back east, ( labour is a lot less)
-Average house price in Dartmouth likely 150k (I don’t have the stats but expect this to be a lowball amount)
-There would still be 120k of “Value” in the prop making your comment seem suspect
On a more general note, the reason why we are in this RE mess:
“Think of how stupid the average person is, and realize half of them are stupider than that.”
― George Carlin
“What has happened is several companies is they red circled guys that are 58 and higher and gave them a package and got rid of them. Companies are realigning themselves for the future and most likely the doesn’t involve a geezer”
Haven’t seen much evidence of this. But I am seeing a lot of “geezers” being kept on at relatively modest salaries, rather than hiring the younger talent that requires a compensation package large enough to actually pay the inflated housing prices. In this way, with paid off houses, paid off kids’ educations, paid-off cars, and lots of assets, are effectively under-cutting the young in the employment marketplace.
Also, running the old guys into the ground avoids having to give them a ‘package’, avoids training costs, avoids maternity leave and gives them a lot of future optionality in terms of additional downsizing. After all, stress out an old worker, and they will just retire. Stress out a younger worker, and they might just drag the employer into a costly long-term mental health disability claim or similar.
For the Calgary crowd. This was used extensively in the states around 2007-11. If you bury it upside down facing the direction you wish to move (that would be east for most folks) it is very effective. Available as a kit at Amazon.
http://realestate.aol.com/blog/2010/03/02/st-joseph-can-sell-your-home-while-standing-on-his-head/
http://www.amazon.com/St-Joseph-Home-Seller-Statue/dp/B000WMH1CQ
“Why would some idiot cut oil lines given they likely couldn’t afford the house in the first place.
“
Vandalism.
– Remediation. here in Van average cost about 30k. assume less cost back east, ( labour is a lot less)”
To remove all of the soil around a foundation 10 feet down, truck it away, and install new soil? And any follow-up testing and consulting as necessary. No, that’s a heck of a lot more than $30k anywhere in Canada.
Anyways, I’m sure if you spend enough time Googling, or talking to people in the area, you can find out the details. But the long and short of it was that the properties declined to a value less than zero representing a total loss on investment.
Seems to me that Alberta ought to have a Provincial tax regardless of oil revenues. The latter can then be considered gravy.
Until then, AB will always be a one trick pony as they say, at the mercy of one guy in Saudi Arabia.
“Trickle down does not; has not and will not work”
Maybe that’s the whole point. Do you really believe the 1%ers “misallocated” all that credit out of ignorance?
just got outbid in calgary again.
this guy was smart and priced a tiny bit lower than fair price and got competing offers and sold in a day.
good properties still go fast.
mispriced ones or those not in move in ready shape dont. which is pretty much all on the calgary market. those are dominating the market. with months on the market. then a small price cut. which is not big enough. so again few months on market and so on. guess someone has deep pockets to wait this long!
hope it changes fast.
Well, I opened my big yap – and my timing was bad.
The Couple were of the “West Van” variety, and were sipping their whatever and snacking on the crab cakes.
The Gentleman and his lady friend were quite friendly, and after cards were exchanged – this turns out to be a Couple of RE Agents.
Oh God.
The spiel started and I decided to let them run for a few years and then I would shoestring tackle them with the the truth.
He started: “The Interest rates are a gift – you can build equity fast – we have a couple of Yaletown and West Van properties that kill……”.
I asked him if he saw a rate rise, in the foreseeable future. “Not a chance…..did you see what the BOC did last time…..”. (*Yeah, gut the CAD and screw investors, anything to make Oil cheaper from the Oil Sands).
I was waiting. Here it comes – “So where do you live”?
I told him about our West End Penthouse and how much we enjoy it.
Then I waited a beat, while their greedy eyes sparkled, and then I said “I lease”. I am NOT buying any RE until Elvis comes back”.
They were gob smacked. ” Well, how do you build wealth?”, she said…”.
I was blunt: “It’s called INVESTING” in a balanced portfolio and staying out of a crashing RE market.
They were starting to back away….like I had a disease.
Yeah – it’s called SANITY.
#143 Bottoms_Up on 02.20.15 at 8:37 am
————————————————————–
Sounds like the lottery fairy is you lol.
Yes ETFs are a good way to be diversified (if you buy the right ones), I
use blackrock’s website (click ‘ishares’ then ‘products’ to see the list of
ETFs available from blackrock)
——–
Thanks for link. Puts a face to the ETFs and fixed income symbols talked about on here. Appreciate your time. Did some reading and will see about contributing to spousal rrsp this year, collect refund, stick that into tfsa and buy a mix. Again, thanks.
#184 Snowboid
———-
Thanks for the update on AZ. Love AZ & the desert, so want to return. Florida didn’t work out this year, so I’m considering AZ for next winter. Maybe there will be less Albertans there, hence more choices for accommodation. Wish I had of seriously considered RE there in 2009-10.
#195 drill baby drill
It is obvious to me you are a puppet of propaganda and clueless to reality. The Cons took Alberta for a multi hundred billion dollar ride where private interests got to lease oil sand lands for pennies on the dollar while raking in all the profits. It doesn’t work that way in Norway which is why they have $759 billion saved up. The Cons throw out a stupid report that it’s the public service workers fault and the gullible puppets in Alberta eat it up. Once harper is done he and his cons will sit on the boards raking in millions. The Cons love Alberta with all the puppets that live there.
Smoking Man re Bob Lazar, don’t mess with “THE MAN” Bob Lazar got his burn notice several years ago. I’m ex Air force we know about things and you don’t comment! Ever!
#206 Mark on 02.20.15 at 4:01 pm
Anyways, I’m sure if you spend enough time Googling, or talking to people in the area, you can find out the details.
————-
lulz
Alberta is the only province in Canada to have declared a sovereign default. (1935)
Extra taxes on foreigners buying RE in other countries is quite common and forbidden in some countries.
The property taxes on my condo in Florida are double to what the Florida residents pay. I think it is fair, since I don’t live there to support the local economy through consumption taxes. Extra tax on foreigners buying Canadian RE, will stop the hot foreign money from coming to ONT and BC. If they have to pay the extra tax they will go to places with more hospitable climate.
Your Florida condo taxes are property taxes only, because you do not qualify for a grant given to locals who actually apply for it. Out-of-state Americans also pay more. Your levy is not double, and largely inconsequential. — Garth
#162 Jeff in Moose Jaw on 02.20.15 at 12:04 pm
——————————————————–
Best one I saw …
A gorgeous blonde driving a mint late 50’s Corvettte … WASHIS
I just can’t figure out why Ontariowe inhabitants think they need to give Alberta advice on financially managing it’s business. I mean really, look in the mirror people. Clean up your own house.
What’s next? Donald Trump advising on hair styles?
Plus, we’re not Norway, we don’t tax people at 70% with a 25% sales tax. You want Norway, go live in Norway. Be a nice tax paying slave and F off.
But on the other hand, if you’re hard working, in Alberta, you can (at least until recently) make enough money to set yourself and your family up for the rest of your life. I’ll pick this option anytime.
#206 Mark
Or there is another explanation…….
Your are blowing smoke dude
#216 kommykim — “Alberta is the only province in Canada to have declared a sovereign default. (1935)”
Alberta is the site of Canada’s most recent (as far as I know) bank failures…
http://www.bankofcanada.ca/wp-content/uploads/2010/07/bank.pdf
All you worriers about bail-ins might want to read about actual occurrences.
https://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB0QFjAA&url=http%3A%2F%2Fblogs.vancouversun.com%2F2011%2F03%2F31%2Fcanada-should-welcome-100000-more-immigrants-per-year-report%2F&ei=i7DnVLfCDNfpoATOroHYDg&usg=AFQjCNH4jJNU_a9_b13eBUMmk_ZjywuL5A&sig2=j8zZ5yQ5d-G8yLLBaWgdBQ
This bubble is over fo good.
“It doesn’t work that way in Norway which is why they have $759 billion saved up.”
Lots of people like to cite Norway as some magical panacea. However keep in mind that $759B in Norweigan Kroners is “only” $126B Canadian. Which is somewhat less spectacular considering that North Sea oil requires but a fraction of the long-term investment in infrastructure to extract compared to the Alberta oilsands oil.
In comparison, the Canadian CPP investment fund is over $200B. And then there’s the whole question of whether its actually morally ‘right’ for governments to collect excess taxes from citizens, merely to give them to high-priced investment managers (like the $3.1M/year head of the CPPIB) for performance that over the long term isn’t much different from that of a Garth-style balanced index ETF portfolio.
#193 and 196
Thanks for the responses.
I do own a home and it is paid in full.
I do not carry any debt and all cash goes to investments…..though I paid cash for my new Corvette (I had to get something foolish w/ my funds in my life).
Thanks again for your responses – it is appreciated.
#204
What has happened is several companies is they red circled guys that are 58 and higher and gave them a package and got rid of them. Companies are realigning themselves for the future and most likely the doesn’t involve a geezer”
Haven’t seen much evidence of this. But I am seeing a lot of “geezers” being kept on at relatively modest salaries, rather than hiring the younger talent that requires a compensation package large enough to actually pay the inflated housing prices. In this way, with paid off houses, paid off kids’ educations, paid-off cars, and lots of assets, are effectively under-cutting the young in the employment marketplace.
Also, running the old guys into the ground avoids having to give them a ‘package’, avoids training costs, avoids maternity leave and gives them a lot of future optionality in terms of additional downsizing. After all, stress out an old worker, and they will just retire. Stress out a younger worker, and they might just drag the employer into a costly long-term mental health disability claim or similar.
Wow! Don’t know what your Corporate experience is but is contrary what I saw.
Geezers: Yes the employer tries a half hearted attempt at aggravated attrition knowing full well everybody understands the game. A tiny minority bail, the rest knowing they are untouchable wait it out for the “package” . No grinding, that would be a lawsuit and will set a precedent for future “packages”. Stress out an older worker, Lawsuit or a long grinding “disability claim”. Seen it several times.
Young employees: get paid less, will bail at the drop of a hat and are disposable (another fresh keen eager MBA right out of the mill will take their place in a heartbeat)
You. Don’t. Have. A. Clue.
#218 Panhead
That is a good one, she knew how the game works.
“You. Don’t. Have. A. Clue.”
Oh really? Why has the 19-54-year old segment of the working population not really participated in the so-called ‘recovery’? Its certainly not because what you claim is widespread:
http://www.zerohedge.com/news/2014-10-03/hiring-grandparents-only-230k-september-were-added-55-69-age-group-10k-lost-prime-25
Hiring has been scant by Canadian corporations over the past decade outside of the narrow sectors of O&G and FIRE, and examples are a’plenty of the workforce in Canada’s industry getting very old while the HR clerks are in receipt of thousands of applications from the young.
RE#219 CalgaryRocks on 02.20.15 at 6:01 pm
#216 kommykim on 02.20.15 at 5:27 pm
Alberta is the only province in Canada to have declared a sovereign default. (1935)
I just can’t figure out why Ontariowe inhabitants think they need to give Alberta advice on financially managing it’s business
I’m not from, nor do I live in, Ontario.
Have a look on the miami dade county’s tax collector web site and you will see properties on the same street, one paying 2500$/year in taxes and the other paying 4-5 times as much on a property assessed the same value.
http://www.miamidade.gov/propertysearch/#/
I did this exercise when looking for property in Miami Beach and it cured me from having to buy in Florida as a non resident.
Not only are your taxes much higher as a non resident but also they increase at a much faster pace.
This one has a 580K assesment REDUCTION compared to the guy a few doors to the left. On Espanola way between Jefferson & Pensylvania.
830 ESPANOLA WAY
Miami Beach , FL 33139-3802
Benefit Type 2014 2013 2012
Save Our Homes Cap Assessment Reduction $583,255 $512,030 $405,903
Non-Homestead Cap Assessment Reduction $30,078 $26,046 $15,002
Homestead Exemption $25,000 $25,000 $25,000
Second Homestead Exemption $25,000 $25,000 $25,000
Senior Homestead Exemption $50,000 $50,000 $50,000
Widow Exemption $500 $500 $500
Note: Not all benefits are applicable to all Taxable Values (i.e. County, School Board, City, Regional).
#189 Rational Optimist on 02.20.15 at 2:36 pm…
I know the heat is hard to deal with, and many of the locals have cabins up in northern AZ where they escape when they can in the summer.
The last couple of weeks have been around 28C – perfect, but we don’t like it when it the few times we’ve been here when it gets up around 40C.
One does not make it a habit of hugging trees down here, they have a tendency to ‘bite’ back.
My better half backed into an ironwood tree a couple of days ago while looking at our new ocotillo, and came away looking like a pincushion.
Most of our desert landscaping has spikes, thorns or sharp tips (like the agave and aloe vera).
*******************************************
#212 cramar on 02.20.15 at 4:59 pm…
Like I said we haven’t had a big exodus of Albertans out yet, but who knows what the rest of the year holds.
*******************************************
#217 john on 02.20.15 at 5:55 pm…
Another reason we didn’t look in Florida. Here in Arizona we do pay about 10% more in property taxes as non-residents, but as the esteemed Professor noted so do the snowboids from the rest of the US.
#223 Mark on 02.20.15 at 6:13 pm…
Wrong, wrong, wrong. It is about 5 trillion krone, which is closer to 800 billion dollars.
Might I suggest a tool called Google so you can check do some fact-checking before you post.
#223 Mark
It doesn’t work that way in Norway which is why they have $759 billion saved up.”
Lots of people like to cite Norway as some magical panacea. However keep in mind that $759B in Norweigan Kroners is “only” $126B Canadian. Which is somewhat less spectacular considering that North Sea oil requires but a fraction of the long-term investment in infrastructure to extract compared to the Alberta oilsands oil.
…….
Oh Mark, why would you think this figure is in kroner?? Nobody ever suggested this…nor is it true. The actual figure (according to this list of Sovereign Wealth funds
http://www.swfinstitute.org/fund-rankings/ ) Noway leads the world with $893 billion…that is “dollars”…I am guessing USD). Alberta is listed at $17.5 B). The fact is, the Norwegian government saw fit to ensure the oil industry in the North Sea, provided a decent benefit to ALL the people in Norway….instead of just a few…as Alberta has chosen to do. It has also ensured that the legacy will continue to provide in tough times, and when all the oil is gone…or no longer useful. This does not seem to be a bad thing!
LAST !!
#68 Ralph Cramdown
AJ Hazzi was found to be acting for both sides (undisclosed), his father-in-law being the seller of a fix-and-flip of a “manufactured home” in a trailer park on First Nations land. The buyer sounds a treat, too, as AJ was censured for “failing to ensure the buyer was advised to include a subject to financing in light of the fact that the construction was incomplete and the buyer had separated from his spouse” … and the deposit consisted of a quad ATV.
ROFLMAO that is classic Brokanagan RE action. You have to know the area to get the flavor.
Good catch Ralph.
@#227 Mark
I’m a tad confused. You’re talking about Canadian employment but posting US employment stats?
Perhaps the reason most US companies hire older folk is most dont want full time work. A few hours a day or a few days a week to supplement their retirement. Thus saving large companies money when they dont have to pay Medicare, pensions, etc. OR the 19 to 54 year olds are too busy playing video games and surfing porn on the internet……..
Your other comment
“Hiring has been scant by Canadian corporations over the past decade outside of the narrow sectors of O&G and FIRE.”
is bizarre to say the least.
The Vancouver job market is NOT O&G and or FI/RE.
We are a city unionized govt workers, barristas and short order cooks……
This is why houses are 1.5 million on average and the banks are nervous.
But you already knew that because……you’re “Mark”
#214 Holy Crap Wheres The Tylenol on 02.20.15 at 5:16 pm
Smoking Man re Bob Lazar, don’t mess with “THE MAN” Bob Lazar got his burn notice several years ago. I’m ex Air force we know about things and you don’t comment! Ever!
…….
Disclosure coming soon… :)
Just not sure what city I should buzz first…
Garth,
You Either don’t know all details or deliberately distorting the truth.
The levy is 2.2% of the assessed value of the property.
Annual increase of assessed value is capped at 10% for non-residents, and 3% for the residents, plus they are entitled to the grant.
Since 2010, the assessed values for non-residents has increased by 46%, for the residents 12.5%. Now you can calculate the actual tax. This formula will continue until the pe-crush values are reached.
There is more than one way to skin a cat you know!.
#162 Jeff in Moose Jaw on 02.20.15 at 12:04 pm
If you would like to continuously self-flagellate for acquiescing to the Caravan, how about NOPAIR.
#231 Snowboid on 02.20.15 at 7:27 pm
#223 Mark on 02.20.15 at 6:13 pm…
Wrong, wrong, wrong. It is about 5 trillion krone, which is closer to 800 billion dollars.
Might I suggest a tool called Google so you can check do some fact-checking before you post.
Mark’s definitely on a roll. Keep on trucking!
#YouCallThatADesert,SnowBoid!?! #That’sNotADesert,Or… #”It’sGoingToBeFun” #”ItIsRecognizedThatYouHaveAFunnySenseOfFun”
http://youtu.be/uE0DBpw09SU
[NoteToSnowBoid: 29Palms,TheMojave&DeathValley are favourites… now cut it out, you’re making me HomeSick.]
http://www.halifaxrealestateblog.net/
This guy is starting to piss me off. Apparently the rise in inventory is due to all of the positive activity that’s been happening in Halifax over the past month.
Apparently it’s different in the Maritimes these days…
#27 aL pacino on 02.19.15 at 7:45 pm
“Which for the 1000th time begs this question.
Why does the gov of Canada allow this to continue without end ???????????????????????????????????”
Because Canada is all about guidelines, voluntary compliance and gentle slaps on the wrist.
It’s the Wild West out in “consumer” land.
But Canada is keeping a “close eye on it” and “monitoring this closely”.
#219 CalgaryRocks — “I just can’t figure out why Ontariowe inhabitants think they need to give Alberta advice on financially managing it’s business. I mean really, look in the mirror people. Clean up your own house.”
“Campbell said the [Alberta] government won’t hold the budget to an estimated 3.9 per cent increase in population growth plus inflation, instead opting for a five per cent cut that totals a nine per cent reduction in overall spending in Budget 2015.”
I understand that not everyone believes in Keynesian fiscal policy, where the government taxes more in a boom and spends more in a bust, using its own spending to counterbalance the business cycle and make things more copacetic for its citizens. I get that. I completely agree with the criticism that democratic politicians are usually too unwilling to tax and cut in the booms.
But the alternative to Keynesianism is SURELY a flatline government spending and taxation regime, keeping tax and spending constant or on a gradual upward slope through boom and bust.
Alberta has created an anti-Keynesian regime. Resource taxes and government spending are highest in the boom years — adding to inflation and overall provincial growth. When the bust hits, the government — having saved nothing for the drought — madly cuts back on its spending too, compounding the bust. Government spending is, after all, private sector income. The biggest spender in the province just announced an absolute cut of 9% per head.
Private sector, public sector. This is the fiscal equivalent of getting your nut caught on the barbed wire while climbing over a fence, and applying fencing pliers to the other nut to balance out the pain while you wait for help.
To JAMES in response to personal security in Jacksonville, Florida….any crime committed with a weapon in Florida is dealt with very seriously in the justice system.
The most valuable security is found when your co-pilot is Jesus. PRAY 24/7 and don’t let up until you are back in Canada.
Funny thing happened at the Starbuck’s next to the TD Bank and Merrill Lynch headquarters in Southpointe area…a group of young women were having a prayer meeting at the Starbucks and it struck me that I never see any sign of Christianity out in the open in Canada. Of course, they were just minding their business and quiet.
#60 Gary: “I have many friends here that buy into this bunk. I am tired of arguing with them over the state of real estate….”
****************
People just can’t handle the truth. It’s sad…but it’s a simple as that. I’ve given up. Garth hasn’t! (Thumbs up!)
#206
Buried Heating oil tanks are a real problem in Vancouver and Metro Vancouver.
Prior to the sale of the house, we had to remove an oil tank from my Dad,s Dunbar property that cost us 50K and after researching this problem people were paying up to $300,000 in West Vancouver for Tank removal and soil remediation. (House sold for 1.9K in 2013)
It is a racket. Once you have signed a contract for removal you are on for the ride and they will hold you for ransom over contaminated soil, which in most cases is minor, but you have to have it tested by an environmental Company, before the city will allow a sale of the property.
This is another cost which people often miss and often the mortgage owed and the tank removal and remediation fees are greater than the value of the house and property, ie Surrey
Home Owners Be Ware!
#240 Nemesis on 02.20.15 at 8:00 pm…
Thanks for the clip, there are some pretty wild dunes near here as well. My favourite is within Monument Valley, but the AZ/CA border area is great too!
Dear god we need Politicians with FORESIGHT. And not just thinking about the how do they win the next election.
I was in Vancouver the other day at Brentwood and Broadway. So many new rises, tons, and more going up and my friend says there is never a light on in any of them at night. All Chinese buyers. What is really going on Garth? Has our government made a deal with the Chinese government to take their excess population at some point? My God everyone hates the government. A lot of People are not even going to vote anymore including myself, What the hell for ? All a bunch of straw heads.