So, remember what I said yesterday about sleazy realtors deliberately listing properties under market in order to create a feeding frenzy? It’s not illegal, or even unprofessional. It’s merely unethical. And it sucks.
But it sure brings out the animal spirits in house-horny buyers. It stokes competition. Makes the lusty do extreme things. Plus, when all is said and done, it sure helps with the Audi lease payments.
Just ask Paul Eviston, the agent who listed a $2 million house on E 26th Ave. in Vancouver for $1.6 million. You can imagine what happened in a city where people would rather make offers than have sex. Eight panting couples competed for the ho-hum house with a basement suite, pushing the price skyward until it topped at $2,167,000. Not only did Paul succeed in deliberately inflating the value, but he also squeezed out some useful market-pumping headlines. Like, “Vancouver house sells for $567K over listed price.”
Eviston also defended himself thusly: “If the product’s right, the timing’s right and the inventory is right, it’s the right strategy. I wouldn’t call it underlisted, I would call it strategically listed to garner the interest level that we wanted to get the result that we got.”
By the way, this house – just inside the East Van border where all the poor people live – set a new record for property in that region. The average income in the neighbourhood is $82,020, and about 30% of the people living there don’t work. But they sure can borrow.
Josh is a realtor in Hamilton who reads this blog at night under the sheets on a secret iPad.
“I get a kick out of some of your commentary on my fellow Realtors, many of which are the Audi driving vultures you describe,” he says. “I’d like to think I’m not one of them, I happen to drive a KIA! Granted, its a nice KIA, but its a KIA. And I make about $120-140k a year working more hours than most for the same salary, primarily evenings and weekends. In the last week or two you seem to have taken a more aggressive aim at my profession and I’m hoping you’ll comment on a few observations of mine.”
On the issue of unethical sales practices designed to draw in unsuspecting virgins for evisceration on the altar of house porn, Josh has this to share with us:
“I agree the pricing low tactic and holding offers for a certain number of days is a tad slimy. I refuse to do it on my own listings despite it becoming the prevailing strategy among my peers. I agree there are agents out there that will fabricate offers to inflate the perceived interest in a property, but to suggest that this is some sort of foregone conclusion I think is ridiculous and, forgive me, equally slimy to suggest. Multiple offer situations are already regulated by RECO (the regulator), and I’d challenge your assertion that RECO is understaffed (perhaps complaints driven). Any buyer agent can request to confirm the existence of each and every offer by way of form 109 “Offer Acknowledgement”. I’m a professional, as are 90% of my colleagues. I would never portray the existence of an offer if there wasn’t one.”
That’s a relief. Now if only we could get the real estate board to stop secretly altering monthly statistics, as happens in Toronto, or publishing a meaningless market Frankenumber instead of average prices, as in Vancouver, or letting buyers see selling prices, price changes or days-on-market stats, we might feel better. But if you need an honest realtor in the Hammer who actually admits to reading this pathetic blog, lemme know.
Now, I feel duty bound to share with you some words from the Italian Mama whose boy, Junior, I so mercilessly mocked earlier this week. He joined a 13-idiot bidding war for a suburban GTA bung listed for $649,000 which sold for $810,000. His offer was for $785,000, no conditions, and I now learn that Mama gave him big whack of the $500,000 he had in his shorts for a down payment.
She sent me a long letter explaining the family’s inbred house lust. I will spare you most of it, but here is her argument:
“You accused me of trying to make my son into a mini version of me. I have taught my children as my parents taught me…..by example. It is their decision not mine to follow a similar road or choose a different path. In the end it’s what they feel comfortable with. Freedom, fun, mobility might be their choice. I respect that. But you should understand that for some freedom, fun and mobility will come to those who work hard, diversify their investments from a young age and yes, sacrifice for the goal of achieving financial freedom.
“I am not your typical whining blog dog. I have nothing against people who rent but I hope they are still following the same simple steps mentioned above. Save and invest wisely. Sadly most are not. Most people are not disciplined and when you talk to them about financial investments their eyes glaze over. For them a house and a big fat mortgage is their only hope.”
Now, let’s take that sentiment to its extreme.
Back to Vancouver, where Greg’s parents have gone postal:
“My aging parents (65 + 70) are looking to build a laneway house in Vancouver. They have a $1M house (all paid off), and about $400K in bonds/mutual funds, etc. They think their purchasing power is just getting eroded by inflation, and want to put $250-300K in a laneway house, and rent it for $1K a month for the next 30+ years or so. Basically payback is 25 years. They think this is a better investment. I think they’re out of their minds, and can get better returns with less risk by holding a mixed portfolio instead. How do I convince them otherwise? They think Vancouver real estate is only going up, and want to get in again by this path. It’s insane. Let me know how I can convince them otherwise.”
Of course they think that way, Greg, because a house in East Van just sold for $567,000 more than the asking price! It was on TV! Don’t be a dipstick, kid, and get with the program. Your dad has it all figured out – a sure thing winner to start making him some serious money when he’s just 95. If the market doesn’t collapse under its own folly, of course. If mortgage rates don’t move for a decade or two. If the economy survives the oil mess or death by debt. If the feds don’t reign in CMHC. If enough people actually want to live in a laneway with the rummies and ‘coons.
Naturally, Greg’s parents are fools. Taking three-quarters of their liquid net worth to plow back into real estate, so they can make about 3% on their money, fully taxable, while risking everything on a single asset class, now at its most inflated point, is just weird. But telling.
Did I ever mention this won’t end well?
345 comments ↓
I wish I could be more positive about this issue, but unfortunately, I can’t. Canadian individuals unfortunately are just truly stupidly idiotic when it comes to personal finances. Canadians have the opportunity to learn from the US mistakes, as it pertains to residential real estate. Unfortunately, Canadians choose not to do so for reasons that are clear to only God Almighty himself.
As a results, Canadians will be financially destroyed soon.
God Bless the United States of America!!!
Et tu?
What is wrong with implying there are other offers? Buyer beware.
Same story…I like it.
“Vancouver house sells for $567K over listed price” – and the highest per square foot ever paid for a bung in East Vancouver.
Is there something weird in the water in this burg?
My friends don’t talk about anything but Real Estate.
I have a friend who owns 5 condos, but is paying for groceries on his Credit Card, because he is committing financial Hari-Kari, and is drowning. His Banker must have been hallucinating! Sickening.
I mean, doesn’t anyone remember what happened in 1981?
Rates hit the ceiling and the City folded like a tent, with it’s pegs pulled.
Yellen is screaming RATE increase, and these morons keep on going further into the quicksand?
Oy gevalt!
First!
I can’t believe I’m trying this, but, first?
I wouldn’t trust a real estate agent without doing my own research on a property first. The whole Vancouver housing market is starting to become laughable at this point. lol.
Wait… coons?
Thanks for answering my email, Garth. You’re the best.
And why not take advantage of a less than astute home buyer who may have less on the ball on the subject than is necessary to find the front door. Hey … this is the capitalistic system. All the more power to the realtors (I actually call them ‘realtards’) and the sellers. As Barnum & Bailey pronounced “A sucker is born every minute”. And where is this more appropriate than in Vancouver … and, of course, in other so called ‘hot’ markets. Kind of a pathetic situation, but that’s life …
All I can say about the real estate market in Vancity and TO is: CRASH, DAMMIT!
As I’ve said before, there is a huge wealth disparity in this country where rich parents hand their lucky offspring piles of cash ($500k in the example above) to buy a house. The kids did not earn that money. Not fair.
@ TheAmerican, regarding your suggestion in Garth’s previous post, that I learn how to write a complete sentence, I hate to tell you this, but “Or is that stupid?” is a sentence.
I guess you got your education along with Leroy in ‘Americuh’ huh?
Garth when will the right time to buy be?
Garth, I have been a long time reader of this blog and I agree with most of your views (and I respect your work). However I cannot believe how you (and many others here) remain so ignorant on HAM.
As for HAM, I hate to say that Brad Lamb has nailed it (as extracted from the 2015 Real Estate Roundtable script). It aligns with what going on in real life, in Vancouver as well as pockets of GTA.
===
Brad Lamb: Sorry. I just want to deal with that because what you don’t realize is that a lot of this money — well, maybe you do — a lot of this money is coming from China, and I can tell you that they’re not buying real estate in their name.
Sherry Cooper: Right.
Brad Lamb: They’re buying it in the name of landed Canadians.
Sherry Cooper: Right.
Brad Lamb: So you may think you’re selling a condominium to a guy that lives in Vancouver, but, in fact, it’s his diaspora of family in China that are buying it. They’re doing it with farmland in Saskatchewan, too.… So those stats aren’t correct. They’re not even close to correct.
Garth Turner: Well, when you can prove any of what you just said, I’m all ears.
Brad Lamb: Come to my office. I can show you hundreds and hundreds and hundreds of these situations, not just from China. It happens every day. Sorry, continue.
It’s a disaster garth.
Would mom hand over the 500k for the son to invest?
It’s not just about working hard and sacrificing. It’s about being smart and having the financial system work for you.
Would these people choose a $2M house in Lawrence park or east van or would they want the $2M in the bank.
I’ll take the $2M. See ya. No sacrifice. Just time to do what I want and help the way that suits me best.
People are afraid to have money.
Yer certainly an odd one Leroy….
https://www.youtube.com/watch?v=QvwDohEEQ1E
#3 Corey
“What is wrong with implying there are other offers? Buyer beware.”
It’s misrepresentation.
CMHC getting reigned in? Interest rates going up? I’m starting to believe this may never happen in Canada. Our government and central bank are poised to change the whole system to keep this debt mess under control. Our dollar will be $0.10 to the USD in a decade.
This is embarrassing. I should have said, “Or twice as stupid?” not “Or is that stupid?” in my previous comment.
Regardless, both are sentences. I was educated in Canada. :)
Intended warning or unintended slip? After Alan Greenspan’s confessional admission that
“Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it,”
we found it remarkable that during the Q&A after her speech today that Janet Yellen, when asked about negative rates, admitted that
“cash in not a very convenient store of value,”
seemingly hinting at Bernanke’s helicopter and that there will be no deflation in The US ever…
Rick Santelli then sums it all up perfectly…
“deflation is clearly the boogeyman… and the only thing that will save the middle class.”
* * *
Yellen: “cash is not a convenient store of value”
You have been warned. Do you really think the stockmarket will fair better??
#1 Leroy Washington on 03.27.15 at 6:02 pm
——————————————————
You are an A-hole troll that needs to go. Sir Garth, please ban this individual.
Does it really cost $250K to build a laneway house? seriously?
I read your blog regularly but don’t normaly post comments however I must admit I used to think your blog was quite educational but have come to the realization that I now do it for the comedy of it all. You truly are the king of sarcasm. I do believe however if your were a better business person you would be selling prime time advertising for this comedy network. Maybe you could get the odd realtor our two.
Garth, feel free to send Mama and Jr my way, I have just the house they’re looking for.
“For them a house and a big fat mortgage is their only hope.”
————————
Then they are indeed hopeless.
Well…not everything is going up anymore. I talked to a business associate today who’d held a rental T/H in Richmond BC.
Purchased for $287,500 10 years ago and rented, sold a few days ago for $535K. Had it listed for 7 months….last sale was $585,000 a year ago. Highest sale in the complex was 2 years ago at $610K. He says the offers weren’t coming…at all….so he blew it out at the first one in the door.
He accepted an unusably long completion…into July… I asked him if he’d taken an unusually large deposit and he blanched….I assume he hadn’t. Anything could happen between now and July. If prices continue to drop at this pace it might behoove the buyer to bolt. if they’re ‘overseas buyers’….what would stop them?
hey Garth, please tell us about Alberta tax grab, no increase in corporate taxes or energy royalties, zero, squat…… but everything else was on the table.
Alberta had years of record windfall taxes from energy royalties, and in less than a year, they are running a deficit. Hello government , did you know that oil price fluctuates ??
I have now seen the foreign money thing first hand after a little sleuthing. It’s there. Just like it was in the 80’s. When HK money was pouring in. Young trump like guys seem to be in the game too.
The brad lamb types would say “I told you so”. I would say “it’s never different”.
Except this time rates have only one way to go. Grandma Janet just reminded us of that. Listen up Junior.
“As I’ve said before, there is a huge wealth disparity in this country where rich parents hand their lucky offspring piles of cash ($500k in the example above) to buy a house. The kids did not earn that money. Not fair.”
I would *love* a parent to hand me 500k. I would have a well diversified dividend paying TFSA and skip town to a cheaper town/country to live in.
Here’s another “sob story” of stupid parents:
http://www.moneysense.ca/planning/a-life-more-ordinary-after-a-big-job-loss
With that much income and that much net worth, they are broke/hemorrhaging money? Stupid doesn’t even cover it.
[…] Source: http://www.greaterfool.ca/2015/03/27/slimy/ […]
Smoke # 206,
“Dude I’m on the shit list for sure, I’ve had people email me, smokey let’s go for a beer, want some advice.
I’ve met them, CSIS, CIA, And once the MOSAD.
Starts of innocent then they start asking me political questions like what do you think of Ron Paul.
Busted, and then I call him out on it you should see their body language react. On the way out, they instantly get on there phones and report to headquarters.
Amateurs I tell you. too impatient, they should wait a few meetings before they start asking the Hard political questions.
Bottom line, they know I’m a harmless funny drunk..
But because I push the envelope of acceptability here on a regular basis, Like wink Isreal was in on 911.”
—————————————————————
Smoke, I think your suffering from illusions (of grander)?
Gov. organization XXXX, could care less about the cattle’s opinion on 9/11. Anybody with half a brain figured out it was total bullshit and vented online, 13 long years ago.
Sure, your on a list, like I’m on a list, like Nosty’s on a list, like a dozen others that frequent this blog, voicing critical thoughts, are on a list.
What you gonna do, live in fear? f–k that.
The trick is to make sure you stay of list #, 1 / A / Red.
I’m just fine being know one of particular influence or insight and thus considered an irrelevant level, # 4 / D / Brown, threat.
Ron Paul was the last, great hope for the US and we saw how he was dismissed, confirming democracy as a ruse.
You want to learn what really is going on?
Check out G. Edward Griffin’s:
“The Creature from Jekyll Island”
https://www.youtube.com/watch?v=lu_VqX6J93k
Start with “political and economical scientists”.
#3 Are you serious?
Your government and thus you backs these transactions with your money. You are the buyer if someone can’t pay.
It is not only the Realtors that price low to induce multiple offers. In B.C. many foreclosure listings are dealt with the same way. I have seen the Judge disclose the amounts of all offers and send the prospective purchasers out to the hallway to write new sealed bids. Hard to fault the realtors when the Judges encourage it?
Doesn’t anybody remember the 80’s? The oil price collapse hit Alberta the hardest but the whole Canadian housing market came under pressure.
I just don’t understand why there isn’t more of a sense of panic already. The job losses are turning into an avalanche and there doesn’t seem to be an end in sight. Some of the midstream companies are still hiring but they literally get swamped with a tsunami of resumes for every posting.
And the toys are already hitting the market. It was quite warm today (although awfully breezy) so I decided to head to the liquor store and stock up for the weekend on my motorcycle. Ended up parking beside another guy just getting off his (they were everywhere today) and struck up a conversation, as motorcyclists are prone to do.
Anyway, turns out he’d just bought this 2007 Yamaha Road Star 1300 with all the bells and whistles and only 10,000 km for $6000 from a guy who’d lost his job. I don’t know what a 7 year old Road Star should be worth, but it seemed like a pretty good deal to me the bike was in pristine condition. I’m guessing the bike retailed for north of $20,000. They do depreciate pretty quickly, like cars, but they depreciate more quickly when people are trying to raise cash. And typically low mileage bikes “bottom out”. What I mean by that is at some point the cost of a used motorcycle becomes much more dependent on its condition than its age. Anyway I think he got a good deal but there will be even better deals to come. Boats, bikes, RV’s, quads (4 wheelers for our US friends), skidoos, vacation properties, etc., I’m thinking if you are in the market hold off as there will be deals to come in the days ahead. These are the first things that get jettisoned when unemployed people are trying to raise cash to cover living expenses. Especially if they still have financing.
So we’re wondering why the boomers are holding onto their paid up houses instead of cashing out while the market is at the highest?
I was at the mall the other day and noticed a fair number of guys my age (OAS eligible) window shopping, wandering around looking a little bored.
Then later, in at Home Depot, a similar number of guys loading up with wood, plumbing supplies, etc..
Having a house gives you something to do.
There is always a reno project, a garden redo… something to keep you from wandering the mall until suppertime.
I hated doing renos when I owned and fill my retired days on my bike but a lot of guys my age would rather work on the house than wonder what to do with all that free time.
PS so I did some research into my new friend’s purchase, and it turns out $6-7,000 is about what the bike goes for in the US. But the Canadian dollar has collapsed as we should all know. So he got about a 20% discount by my reckoning.
So the blog dogs visit Junior and the Italian mom, and manage to briefly hypnotize them long enough to park the 500k with our financial guru Garth, and his financial planning descendants. Junior proceeds to rent for the rest of his working life, and spends every dime he earns never touching his investment
Despite the amazing changes in the world for the next forty years, and all the recessions and changes in technology, the portfolio kicks out 7.2% on average. Junior retires with an 8 million dollar net worth, having returned his landlords a taxable 1% return on their investment net of inflation. His salary went on nice cars, furnishings RENT and travel. His family and friends believe him to be a god.
There is no such thing as a nice Kia…
Here is my gift to the board
Nph on the venture
Vanc pharmaceuticals
Do Ur own due diligence
#3
It’s happening with your money backing it. What happens if 10% of it goes bad. How much money are we on the hook for. Think Ireland.
meanwhile in Thunder Bay, ON one can get a deal like this http://www.18southhigh.com …. 1/4 the price of Toronto!!
#38
Sounds like a fairy tale. But it’s the truth. Well written.
Blacksheep #32
Don’t feel the troll. Smokey is a fake, just some lonely 30-something know-it-all basement dweller who likes to pretend he is a hardcore drinker, smoker, and baller with millions in the bank, while fishing for free legal advice on a net blog. Please – I like to think the visitors here are slightly less gullible than that.
#28 Mauricio
How did we Albertans blow through the greatest natural bounty in history?
*******************************
“You don’t need no teeth for kissing girls or smoking cheap cigars….”
“And if we drink ourselves to death, ain’t that the cowboy way to go…”
“If our bones bleach on the desert, we will consider ourselves blessed….”
“Tonight we ride boys, tonight we ride.”
https://www.youtube.com/watch?v=h5pbQWhoncY
Scary
http://business.financialpost.com/2015/03/27/adventures-in-mortgageland-three-tales-of-the-house-buy-in-the-modern-age/
Couple #1: “Forced to seek financing outside their Bank when it refused to pony up the cash.”
The Bank turning you down, shouldn’t that be red flag #1?
http://business.financialpost.com/2015/03/27/adventures-in-mortgageland-three-tales-of-the-house-buy-in-the-modern-age/
Good luck to the lady paying $830 in maintenance fees!!
“Junior proceeds to rent for the rest of his working life, and spends every dime he earns never touching his investment”
There’s no reason why RE can’t be a part of a balanced portfolio. At some point in time, prices will have fallen enough where it makes sense, from an investment point of view, to include residential RE in one’s portfolio.
Its just that, that time is not now. Despite the minor price declines experienced to date in Canadian RE, it is still overpriced, by a factor of 2-3X, versus its historical valuations and compared to other asset classes. Additionally, on account of its sheer size and expense, it is very difficult, especially if mortgage credit is involved, to actually maintain a balanced portfolio as a younger person. A person with a few million in assets that buys a house at the top of the market, yes, that’s a mistake, but its not going to hurt them over the long term. Someone who leverages their money even 5X to buy RE when they have literally nothing else is just asking for long-term pain and inability to create value.
#11 DR. WAYNE
Sure, but stop claiming professionalism, integrity and honesty, if you’re gonna act the equivalent of a used car salesman.
Fun mail bag. If Horny Mama’s Boy has the half mil down payment plus other diversified investments, he’s certainly rich enough to read this blog in his own, and whine for himself. :)
Eight panting couples competed for the ho-hum house
————————
Just heard an interview of the agent that sold the house.
He has now says that there were only 3 written offers, but 10 people were interested in it.
BUY SUCKA’S BUY
What a bunch of duplicitous bull shit.
X
what about this form of slavery?
AP Investigation: Are slaves catching the fish you buy?
By ROBIN MCDOWELL, MARGIE MASON and MARTHA MENDOZA
Mar. 25, 2015 12:37 AM EDT
There Are More Slaves Today Than at Any Time in Human History
Ben Skinner spent four years inside the world of modern-day slavery; an industry that produces huge profits and countless wasted lives.
By Terrence McNally / AlterNet
August 24, 2009
http://www.alternet.org/story/142171/there_are_more_slaves_today_than_at_any_time_in_human_history
In a recent report, “‘Work Faster or Get Out’: Labor Rights Abuses in Cambodia’s Garment Industry,” Human Rights Watch documented lax Cambodian government enforcement of labor laws and the need for apparel brands to improve their monitoring and compliance. For the report, Human Rights Watch examined labor practices in factories producing products for Adidas, Armani, Gap, H&M, Joe Fresh, and Marks and Spencer, among others.
Perhaps Ms. Rinehart should watch the video on how to become a slave free business
https://vimeo.com/37626566
The idea to create large special economic zone in our north, stretching across northern Queensland, northern Western Australia and the Northern Territory, with fewer regulations and taxes, a region that truly welcomes investment and people,” she said.
Gina Rinehart has used a rare video appearance to repeat her warning that Australians need to work harder to compete with Africans who will labour for less than $2 a day.
“I know people hate me saying (it), but their wage rates are so much lower over there and they’re lower in lots of countries, like Indonesia, for instance, which is a coal mining country we’re competing with,” Rinehart said.
http://www.miningaustralia.com.au/news/gina-rinehart-reignites-foreign-worker-debate
http://www.hrw.org/news/2015/03/27/germany-clothing-brands-should-increase-transparency
Kuwait’s Novel Solution for Undocumented Residents: Buy Them Citizenship in Some Other Country
http://www.slate.com/blogs/the_world_/2014/11/19/kuwait_s_novel_solution_for_undocumented_residents_buy_them_citizenship.html
Not only did Paul succeed in deliberately inflating the value, but he also squeezed out some useful market-pumping headlines. Like, “Vancouver house sells for $567K over listed price.”
————–
Yes CBC dutifully reporting the story every 1/2 hour one late Friday afternoon. Feature interview with the agent as well.
This may not signal the absolute market top but I bet its pretty damned close.
BUY SUCKA’S BUY
#36 boonerator
“I hated doing renos when I owned and fill my retired days on my bike but a lot of guys my age would rather work on the house than wonder what to do with all that free time.”
——————————-
I did plenty of renos back when I was fit to do them. That is, when I was young enough to handle the physical work, unconcerned about the risks associated with power tools, and still of the belief I was contributing to the eventual resale value of my home.
I have a friend getting into his late sixties. He was a
hands-on, capable fellow all his life. He now lives in a huge four bedroom house with an enormous yard.
His wife has endless long term projects for him: new flooring, bathroom remodeling, landscaping, cabinetry, endless painting, etc.
Its burning him out. He would love to sell and downsize but his wife wants no part of that. She also believes the house will depreciate without constant upgrading and become unsaleable when the time comes to sell. Of course, the ‘time to sell’ will never come.
Perhaps the guys you see loading up drywall and two by fours at Home Depot might actually be fulfilling somebody’s else’s agenda?
Dunn’s Famous Smoked Meat is up from $6.75 to $10. this year so there is inflation on the rise no matter what our Mr. Poloz tries to sell us.
GDP or growth in Canada has been steady at 2% per year for many decades with interest rates at much higher than close to zero as is the rate now. There will be much dislocation when the rates are normalized above zero.
Haha Leroy.
You’re right it’s going to be a hard pill for Canadians to swallow considering the gloating we did about how The American experience could never happen here, because our banking system is more prudent. Ya their prudent alright if you look at the McKinsey report on debt deleveraging, that was pointed to by Garth a while back, our banking system is not leveraged nor debtified near any other Country because of CHMC.
“Unfortunately, Canadians choose not to do so for reasons that are clear to only God Almighty himself.”-Leroy.
You see Leroy up here the God is the house. The deliverance to retirement.
The sheeple merely being herded by Realtors in an endless sea of condo and housing pasture.
Cheers.
Household credit in Canada to the end of Feb 2015
http://credit.bankofcanada.ca/householdcredit
Business credit in Canada to the end of Feb 2015
http://credit.bankofcanada.ca/businesscredit
The laneway house is, actually, an attractive investment. Particularly to those seeking cashflow. The rent is significant more than $1,000/mo. It is more like $2,000/mo on the Eastside. At 2% vacancy and an 85% operating margin there’s $18K+ in EBITDA. Applying an outrageously conservative cap rate of 5.0% the income value is $360K. There’s value creation of $110K-$160K. There is an ability to finance the construction for next to nothing to provide levered returns into the teens.
For a 70-year-old? Get serious. — Garth
Garth, did the pile on Galley Avenue ever sell?
Wait a minute, the old folks want to spend $300k on a laneway house, collect $1,000 a month that’s taxed as income, and hope to break even in 25 year? Are you senile, or just plain stupid?
A simple math done on the back of a napkin will show that even money in GIC at 2% will be more liquid and more flexible than a garden shed in the back of the house facing the back lane.
Why don’t they just sell their million dollar home and move to their neighbor’s laneway house and pay $1,000 a month? THAT would make sense. People are stupid, really stupid.
Garth, I have no idea why you try to invoke morality or ethics in this day and age. How moral or ethical is what you advocate? We live in a time no different than any other in that the strong dominate the weak, it’s only the scale that differs – and that we’re in a time of contraction.
Humans are simply a social primate that forms hierarchies and tells stories. When the cheap money floodgates are opened the primates gorge themselves, scrapping and arguing all the way to the top. Morality and ethics have nothing to do with this. You grew up in a time of expansionary growth; we’re now in a time of contraction and fictional growth. Win at all costs is the motto – the alphas are killers and always have been. If you tell anything close to the truth to people they will kill you, nothing new. Forget your civil fairy tales, this is war, and we all know the first casualty is truth never mind morals and ethics.
You haven’t seen anything yet. Eventually you’ll be more correct but it will be eclipsed by global suffering, as this isn’t just a Canadian phenomenon. Every civilization ends in madness – why should ours be different?
#44 Smoldering Man on 03.27.15 at 7:38 pm
Smoke some MJ watch this. It will calm you down.
https://youtu.be/tKCOdgD6J54
“Household credit in Canada to the end of Feb 2015
http://credit.bankofcanada.ca/householdcredit
”
Good catch! Consumer credit flat-lining, as RE prices continue well into their 2nd, almost 3rd year of drops drop and the wealth effect finally starts to go into reverse.
I’m sure Poloz et al have seen this data and have come to the conclusion that they need to cut policy rates even more let the economy continue to weaken.
Bugs bunny n the flintstones provides all the wisdom needed.
The Alberta economic reality is very positive…an example, my sibling is a boomer edging near 60 with her husband. Her two kids are making good incomes. the Alberta couple have serious pensions and they own their modest Red Deer bung which is worth a modest $300k. Now compare that to Central Ontario and it is a total different ballgame never mind the weak dollar and Ontario’s hearty INDUSTRIAL capacity. Last I heard even Stephen Poloz was casting diminishing remarks something to the effect auto capacity continues to move to Georgia and Mexico.
An easy fix for Harper would be to open up trade with Mexico and ease immigration and trade and travel to and with Mexico because Mexico has none of the skills the auto trade needs but we have an overcapacity of thousands of highly educated engineers and auto related professionals sitting around drinking beer taking care of kids instead of working.
Garth, I hope you are approving this stuff while at a bar. Ya cant save everyone.
I can clearly see that unfortunately we live in a world that many people they see the meaning of the word “ethical” as being anything they can get away with without going to jail. Sad, but true.
As for the insane house worshipers, well, they remind me of the old joke about what is the last thing a bug sees before it hits the windshield?
Well, what is it? — Garth
My Vancouver SFD “double-double” chart shows that an average April 2008 SF house price in metro Vancouver will double by Aug 2022:
http://www.chpc.biz/bull-horse-mountain.html#Double
But that assumes the current speculation remains intact for the next 7 years without any change in sentiment.
http://www.reuters.com/article/2015/03/25/canada-cenbank-lane-idUSL2N0WR2AD20150325
“Bank of Canada says foreign buyers complicate housing market”
Read it. Non-story. — Garth
price to income:
in 1973 I bought a house in Ottawa for $34,500. My salary was $11,500 so price to income was 3. Exactly 3. I looked up the mortgage rates in 1973, around 8%.
http://www.ratehub.ca/prime-mortgage-rate-history
Garth gives an example of a house in Vancouver which sold for $2167000. The average income is $82000 so the price to income is 26.42. Mortgage rate is around 3% today.
The point is prices in Vancouver have decoupled from income! Now the average guy may not see the relevance of this observation but the banks had damn well better see it. Or the credit unions as Mark says.
Leroy Washington: Canadians have the opportunity to learn from the US mistakes, as it pertains to residential real estate. Unfortunately, Canadians choose not to do so for reasons that are clear to only God Almighty himself.
preach it brother!
God bless America
You want to know how totally absurd it is paying 2.2M for that box
https://www.google.ca/search?q=2million+dollar+house+with+view&rlz=1C1KMZB_enCA584CA584&espv=2&biw=1366&bih=677&tbm=isch&tbo=u&source=univ&sa=X&ei=8fsVVavKLefjsASo1oDQCA&ved=0CB4QsAQ#tbm=isch&q=2+million+dollar+house+with+view&spell=1
The laneway house is, actually, an attractive investment. Particularly to those seeking cashflow. The rent is significant more than $1,000/mo. It is more like $2,000/mo on the Eastside. At 2% vacancy and an 85% operating margin there’s $18K+ in EBITDA. Applying an outrageously conservative cap rate of 5.0% the income value is $360K. There’s value creation of $110K-$160K. There is an ability to finance the construction for next to nothing to provide levered returns into the teens.
For a 70-year-old? Get serious. — Garth
———
Easy Garthy boy, I am well over 70 and I still enjoy a karfty good M&A…
If you have a talent for in-depth analysis and are willing to relocate, there’s a job waiting for you in Berlin.
http://www.cnbc.com/id/102530031
I will never forget the mind shattering moment when in 1982, I opened a letter from the bank informing me that my five year mortgage at 10 3/4 percent was being renewed at 17 1/2 percent. It felt like the end of my world, and yet it happened. Utmost caution ever since!
I’m not sure how the east van house was inflated – did the reeltor just lowball the list price and “tip off” buyers about competing bids, as they waltzed onto the property?
When I read this article I just thought it was typical of the lower mainland. We are running out of room here. Dumb dumbs out here do not know what densification is, but sure don’t want that highrise in their neighbor hood. When I went to New York City for a week, in 2010, I saw the future of Vcr. NYC is one tall city!
The mountains, the us border, and the ocean should boost prices in Vcr/Bby by 20% over the next 5 years no matter what happens to the interest rate. Same for abby/Chilliwack.
I never bought in Vcr/Bby in the 90’s because I knew my salary could not cover the bet – even in hindsight – would have been mortgage poor – no cashflow. Best decision / observation I ever made – slow and sure wins the race, builds equity, reduces the mortgage to zero, and puts cash in the bank.
I also have a question about low ball offers. If the east van house is listed at $1.6 million, wouldn’t I complete the contract by offering that amount? The contract has been satisfied – the owner should not be able to reject it. (unless there is a condition letting the owner reject that offer??) Maybe I’m thinking to much in regards to contracts.
Smoldering # 44,
“Don’t feel the troll. Smokey is a fake”
———————————————–
Of course he’s not real. He’s a ‘persona’, a ‘character’. I called him out on it years ago. Look in the archives. He’s not even that sharp. Supplied him a couple links last week and he misunderstood the point of both. Alcohol dulled senses? Who knows or cares.
At least SM uses his real or feigned ‘character’ to speak his mind. C-51, building 7, M-17, especially critiquing the system. Far too many Cattle are scared silent or just plain ignorant about the real world we live in.
Here is a thought:
How bout concerning ourselves with something more important, like the link I supplied to G. Edward Griffins book, ” The Creature From Jekyll Island”
https://www.youtube.com/watch?v=lu_VqX6J93k
Do you have an opinion? Total bull shit or earth shattering disclosure?
Or did you just want to criticize.
#45. WUL
That’s old school.
Good luck to you and your better half as you work through this.
I’m sure Alberta will hold its head high no matter what. You are not blaming others. Or asking for someone else to foot the bill. That counts for something.
@ 15
I totally agree with your comments. I’ve been reading Garth’s blog for a few years and agree with most things he’s been writing about..…however,
I really don’t understand why Mr. turner continues to ignore the substantial impact of HAM on Vancouver and Toronto RE.
I’m married to a Korean myself….the Korean community in the GTA (majority of whom have been residing in the GTA for no more than 5-8 years) is so house horny you have no idea….never mind Italians ….a couple of friends of ours work as RE agents in Oakville
and just the other day….they explained to us that 70-80% of their sales are due to Chinese (not Canadian Chinese) buying properties…outbidding everyone else by at least 100K….and that if weren’t for the Chinese..the Oakville market would actually be in a real slump!
Notice on BC assessment that house sold for 810k 2 years ago
I don’t mind the artificially low price listings. It’s just a salesman trick.
I’m more concerned with the lack of transparency in the bidding process or accuracy in statistics.
Wow.
I’m really impressed with you this time Garth. How did you know Greg’s dad is 70 years old? (ROI of 25 years.)
I read his comment a number of times and still, I can’t be sure.
The under pricing scheme is more about the market pumping headlines than about inflating the value. I would bet they could have gotten the same amount by asking for it in the listing price or maybe even more.
The underpricing is not about helping the buyer maximize the selling price but about free advertising for the realtor. What is a 60 second story about you as the rock star realtor on all the news casts and having your face plastered over all the local papers worth? That is equivalent to 10s of thousands in advertising or more. You couldn’t buy that publicity. Too bad the media gets sucked in every time. I wish the media would get an independent appraiser to assess the house and do the story on how the house may have sold for more if the realtor priced it correctly. Now that would be a story worth running.
That house in question was perfect for this stunt. The realtor brags it sold for the most per sq ft on the east side ever. Great, but it was a 1 year old house built to high standards in arguably the nicest part of east van only a few feet away from being a westside house where prices on average are 50% or more higher. It should have fetched one of the highest prices on the eastside if sold. Nothing to do with the pricing stunt or realtor.
“Asset class” made an appearance in Garth’s second last paragraph, and “asset classes” in Mark #48
I assume real estate is a subset of the asset class Commodities. (As vs Stocks, and Bonds.)
GOLD leads all commodities, always. (Gold miners lead gold.) OIL is a close second. Copper is down, lumber is down, iron ore is down. (Somebody else check corn and wheat.)
Low rates have done nothing to raise commodity prices. Or suppress the $US. ZIRP don’ work’ like it’s supposed tuh, eh?
Canadian real estate is overdue for a crash.
The most important factor re Canadian house sales is the collective perception of job insecurity. The next two Statscan jobs reports . . .
Academically and ideally the next asset class to turn down is stocks.
Don’t hold your breath. — Garth
Everybody knows that the US recovery is bogus, interest rates can never rise again and there will never, ever be inflation because wages are flatlining. Hey, it’s all laid out in Zero Hedge.
Some people don’t read ZH, like the Journal of Commerce, the leading US transportation magazine.
“Driver wage hikes could raise truckload pricing 12-18 percent
Hefty increases in truck driver wages will propel truckload rates higher in 2015 and beyond, potentially pushing pricing up by double digits, a transportation analyst warns. Truckload rates may need to rise as much as 12 to 18 percent to pay for higher driver wages.(Paywall)”
http://www.joc.com/trucking-logistics/truckload-freight/driver-wage-hikes-could-raise-truckload-pricing-12-18-percent_20150325.html?mgs1=35e2jEk5Ll
“Major US fleets hiking driver pay”
http://www.trucknews.com/business-management/major-us-fleets-hiking-driver-pay/1003059174/
Wage inflation doesn’t wait until every American has a job. It happens when the workers who are important to the economy get more money. Trucking is the bloodstream of the economy and a major component of delivered cost. This is not just wage inflation, it is general price level inflation as well and will ripple everywhere.
# 8 …Hilarious! :)
Your last 2 posts are appreciated. It is important to hear about the slimy moves on selling real estate. In the previous post, the discussion with high profile people who affect our perspectives on real estate is disheartening. Thanks for being “David” with the many Goliaths. I have benefited for many years on your economic slant and how to diversify our financial assets. You do so much good for the many bloggers who read your messages and share them with others.
It isn’t fair to remind you of how you have expected real estate to correct years ago. It is so obvious that it is just a question of time and those of us who diversified when you suggested we do, have reaped the financial benefits. My portfolio has changed radically and is well balanced
Here is what self serving Canadian Association of Accredited Mortgage Professionals (CAAMP) lobby group is telling Ottawa
http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2015/03/promoting-consumer-choice-in-ottawa.html
Don Derc # 75
“… I also have a question about low ball offers. If the east van house is listed at $1.6 million, wouldn’t I complete the contract by offering that amount? The contract has been satisfied – the owner should not be able to reject it.”
—
Actually the property is merely listed by an agent of the seller for a suggested price. The prospective buyer makes the “offer” to buy. And the seller accepts or rejects the buyer’s offer.
The same thing happens at the grocery supper market. After all your groceries are rung up you make an offer to buy which the clerk accepts along with your VISA. If you decide to just walk out of the store at that point there is really nothing the store can do to enforce the sale. Granted it does seem backwards.
#84 Andrew Woburn on 03.27.15 at 9:20 pm
So when do commodities recover? Are the Americans upgrading their funky infrastructure yet or what?
Want to share this with the blogdogs:
Spoke to a friend today who gave me a history of buying her aunt’s condo about 25 years ago, spending money to fix it up, renting it out and after a number of years selling it for $5,000 less than she bought it.
In the next breath, she talks about real estate today, advising that my daughter should buy because real estate in GTA keeps going up.
I don’t get the logic.
I believe this is the typical Canadian mentality. They don’t seem to be able to learn from the past.
Wham, bam, thank you HAM. Won’t matter who’s loot is buying what when this whole facade collapses on itself. When whoever from wherever pays whatever for something that just lost 30% or more in a massive wake up call, they will all get what they paid for.
By the way Leroy says if you are canadian you are stupid.
Just wondering if Alberta is still finished.
Dawgs, I was thinking about an idea-sharing exercise, which would provide food for thought in fine tuning our own portfolios. Sharing one core portfolio ETF or stock per category would be useful. I’ll start.
International: HEDJ*
USA: ZSP**
Canada: XIU
REIT: VTR (Ventas REIT)
Bond: XLB
Prefs: Don’t have one, maybe CPD
*HEDJ during ECB QE; VEF afterwards upon QE windup
**ZSP whilst CAD expected is expected to depreciate; XSP once CAD becomes bullish against USD
Mark Carney: next interest rate move will be up, not down
http://www.telegraph.co.uk/finance/mark-carney/11499411/Mark-Carney-next-interest-rate-move-will-be-up-not-down.html
#67 Freedom First
Nothing. It never saw it coming.
Once the bug hits though the last thing it sees is an a$$hole.
http://business.financialpost.com/2015/03/27/adventures-in-mortgageland-three-tales-of-the-house-buy-in-the-modern-age/
Holy Shit!
“We saw it [the house] on a Sunday and the selling agent basically said that they’re going to put it up on MLS on Tuesday, so we literally had to make the biggest financial decision of our life in under 24 hours.”
So…the biggest financial decision in your life and you decided to make it in under 24 hrs, with your current “girlfriend” nonetheless. Bravo young man, you’ve just screwed yourself with your own dumb move. Bravo.
#78 daves
100% agreed. I hope Mr Turner and others who think that “HAM is a myth” can take a deeper look at what’s happening in reality.
If you take a bird eye’s view of Canada as a whole, it is correct that easy credit and lax lending are key factors.
However, for Vancouver, Richmond Hill, Markham, Oakville, and many pockets of GTA – HAM is the dominant driver of RE prices. It is written on the wall.
Wealthy Chinese has no interested in buying a house in places like, say, Milton. So yes, in the Milton scenario HAM is absolutely a myth. Probably Calgary too.
But again, HAM does drive the RE prices in areas mentioned above. Why? because those are places that HAM likes. Established Asian communities. Good schools.
Garth needs to visit Vancouver, Bayview Hill, Unionville, Pleasant View, etc. to take a look. Checkout who’s buying. Also check out buying /selling agents of those houses – mostly Mandarin speaking catering to HAM.
RE prices in Milton and Calgary may fall drastically, but RE price in HAM-dominated pockets WILL NOT fall. Because for RE price to fall, you need a squeeze. HAM do not buy RE with highly leveraged mortgages. They are in no hurry to sell at a lower price to cover any shorts. Indeed, there is no short for HAM. They bought with lots of cash and they still have lots of cash left over after their RE purchases. For HAM to exit these areas, ranking of schools in such areas will need to nose dive and established Chinese communities will need to disintegrate (so they have no more interests in those areas).
HAM is skewing a number of niche markets big time. We shall not be in denial.
Vastly overstated. But, so what? Most real estate is inflated because most locals made it that way. Obsess about that. — Garth
Nagraj # 83,
“GOLD leads all commodities, always. (Gold miners lead gold.) OIL is a close second.”
————————————————————-
Surprised OIL doesn’t lead GOLD.
Due the OIL buyers with US $, to GOLD Miners selling futures, to leased GOLD from Bullion banks, to OIL sellers demanding gold, relationship.
Or is that just bullshit?
I read a wonderful quote today, which I will try to translate into English:
“It seems that the goal of some people’s lives is creating comfortable conditions for pissing away their lives.”
#76 Blacksheep on 03.27.15 at 9:05 pm
Smoldering # 44,
“Don’t feel the troll. Smokey is a fake”
…………
I need to confess something, I am from Nectonite, IQ of 800. My adopted earth name is Jay Smokeweeden, My Nectonite name Zolsrqa Kivrack.
The world is at the precipice of total annihilation, smoldering man will be the name of all men in the not to distant future, if we Aliens don’t stop you.
I know which tribe Smoldering Man belongs too. I know why he’s pissed. I know every thing he will say going forward, I read minds. Its what Nectonites do.
I’ve call shit accurately here for years , far beyond any mortal man could come close to..
Its all in the Archives…
Smoldering here is my manifesto..
Please share with the community..never mind they’re already know about me and are watching.
I’m trying to created division within the ranks of the true power structure. appeal to level headedness and logic if the normal men.
The current captins steering this western vessel are insane.. I’ve read their minds they truly believe that they can get away with the first strike against Russia. They can’t .
100 years for perfect success dose not guarantee the next bet will win..
The wise elders of the days gone by are gone, today we sit and listen to several spoiled generations down stream , they have no logic, no morals, just pure confidence. The stakes are high, just like me.
Personally I have no issues with the current owners of the west, I can’t imagen living under the rules of an Iman. I would kill myself.
But don’t fk with Russia..You will kill us all. I read their minds too.
Well not me , I have a force field, its in my book.
#79 Porsche
That parcel of land did. That house did not, seeing as it’s a 1 year old house.
#84 Andrew Woburn
I wouldn’t “sweat” seeing trucking wages rising very much. They have dropped rather deeply over the last 20 years, but when did you “see” the products you buy drop in price? Merely another ‘noise’ report on Zerohedge. I would be far more worried should the FED actually raise short term rates. I rather doubt any fast moves in that direction, but I don’t get to set rates. If I did they would be higher than at present.
#180 Mark on 03.27.15 at 1:17 pm
““The extent of Vancity’s analysis is drawing a straight line…”
Which is why Vancity probably won’t exist a few years from now. Either taken over in sheer desperation by a consortium of the big-5, or in some sort of perpetual receivership.
Good riddance!”
That’s essentially what I said to my house horny friend who sent me the Vancitybuzz article about the report.
If it went bust, it would be a very rude awakening in BC.
The Federal Reserve is a giant scam and most people don’t even know or care.
The name is very misleading. A comment that I got a kick out of on here in the past few days was about the US only having to service its debt.
HAHA, good one. I’m sure every private bank in the world would love it if people simply just serviced their debt and only added to the principal
Think about it… This won’t end well.
God bless America… Right Leroy?
Well you’ve been had cause the Federal Reserve is a private bank and they own you
Private banks are having their way with us while we bicker over nonsense. The root of the problem needs to be addressed
Actually the Fed is under the direct control of the legislative and executive branches of the US government. — Garth
Those communists over at PBS say Canada is likey headed off a cliff. Imagine that.
http://www.pbs.org/newshour/making-sense/why-canadas-economy-may-be-headed-off-the-cliff/
Surely a leftist propaganda campaign to create unrest to unseat the fascist regime that has seized power in Ottawa.
Who doesn’t love Bugs Bunny.
Millennials, Google my hero. learn.
Why is the Room moving. I haven’t willed it. WTF.
I learned everything from Rabbit, not to be confused with Rabbit from Banshee.
#103 SWL1976 on 03.27.15 at 10:35 pm
The Federal Reserve is a giant scam and most people don’t even know or care.
========================
And the reason they get away with this stuff is because they spray us with chemtrails to keep us all docile in servitude…
#15, #96
Vastly overstated. But, so what? Most real estate is inflated because most locals made it that way. Obsess about that. — Garth
===
Garth, RE prices in HAM-infested areas inflated because of HAM. In a sense you are right, most locals made it that way – albeit locals whom have HAM as money sources.
HAM doesn’t necessary mean foreign visitors from Guangdong arriving with suitcases of cash. HAM simply means money sourced from mainland China. Local, landed wealthy Chinese immigrants of mainland China origin (with money sourced from China) are HAM.
Locally established shell companies owned by offshore businesses (with money sourced from China) are also HAM.
I didn’t “vastly overstate” the situation. It’s written on the wall. Also, inflated RE price has a huge impact on local people whom do not have HAM money sources, as they are being priced out. This fueled the fire for such people to take on huge amount of debt to compete /catch up. Ultimately this affects people’s finance, and hence their overall life.
So, should we round those yellow folks up, as we did in 1944? You disgust me. — Garth
The Nectonites
https://twitter.com/alienaxioms/status/551196255532355586
#104 OttawaMike on 03.27.15 at 10:36 pm
Those communists over at PBS say Canada is likey headed off a cliff. Imagine that.
http://www.pbs.org/newshour/making-sense/why-canadas-economy-may-be-headed-off-the-cliff/
Surely a leftist propaganda campaign to create unrest to unseat the fascist regime that has seized power in Ottawa.
———————————————
Jeez even PBS thinks it’s HAM…
“Detached single-family homes in Toronto now average more than C$1 million and Vancouver is now deemed the second least affordable city in the world – thanks to Chinese buyers (who are themselves facing a slower economy). ”
PBS knows what it reads in Canadian media, which is basically what realtors tell reporters. — Garth
with the rummies and ‘coons.
====
nope
it is rats and coyotes
Alberta is in for a rough ride. There is over production of oil worldwide especially in the USA due to enhanced fracking techniques. Unless there is a wreck in the middle east the economy in oil producing regions will slow down considerably. This will affect ALL of Canada because so many from everywhere in the great white north depended on income from northern Alta for their paychecks from labour to trucking to equipment supply and manufacturing. This will not end well for those who are house poor.
Freedom First on 03.27.15 at 8:54 pm
I think you either have a different version or got the joke mixed up a little.
What is the last thing that goes through a bugs mind when it hits the windshield?
The answer would be its Asshole.
Actually the Fed is under the direct control of the legislative and executive branches of the US government. — Garth
——————————————-
And who owns the US Government?
Full circle
Re #97 Blacksheep
Up or down, historically gold leads commodities (sometimes with a considerable time lag). Not oil.
Re GT’s “Don’t hold your breath.” (Re a sudden crash in Canadian house prices.)
On the graph depicting the rise and fall of US bubble house prices, the up line is almost the mirror image of the down line. Canada could be different after all, the decline could be much faster and steeper.
The decline of real estate in Alberta has been dramatic. The price of oil began falling approximately nine months ago. What’s causing Alberta real estate to blow up now is job loss and fear of job loss.
Half of working Canadians live paycheck to paycheck, doesn’t much matter what rates are, if you lose your job the mortgaged house goes on sale.
–
#15, #96, #107
So, should we round those yellow folks up, as we did in 1944? You disgust me. — Garth
===
Haha, I take that as a joke. I never have that intention because I myself is a Chinese (albeit I have no HAM connection).
Now, to further disgust you….
I think you seem to be in the camp of “absolute Free Market”.
Free Market is good, but Free Market shall have check-and-balance; and shall address interests of EVERY PARTY. Without proper check, a “Free Market” will ALWAYS lean towards and benefit the rich and the powerful.
In my opinion, the influx of hot asian money needs to be controlled; so the scale doesn’t tip only to one side all the time.
So, an acquaintance bought a house out here just before the Olympics. Paid a bit too much, and the rates were a bit higher. Now, years later, they have paid around 90K off on their mortgage, and, they have decided that they need a bigger house.
So, they bought a bigger house, after all the rates are lower.
Plus, they can add in enough money to buy a – MOTOR HOME!
it is different here.
At #13: BlackDog, I need to correct you again your last post. You stated the following:
“TheAmerican, regarding your suggestion in Garth’s previous post, that I learn how to write a complete sentence, I hate to tell you this, but “Or is that stupid?” is a sentence.
I guess you got your education along with Leroy in ‘Americuh’ huh?”
Well, here are the corrections needed to make your writing eligible enough to freely correct others at-will. First, there was no need for you to put a comma between the words “post” and “that” in your first sentence. In your last sentence, you should have included a comma between the words “Americuh” and “huh.” Additionally, in the original post in which you incorrectly used a conjunction to start a sentence, you should have included a comma after the word, “Or.” This would have made your sentence complete. Otherwise, it does not stand on its own. Indeed I received my education in America. Clearly it is better than you received. Consequently, it is also why the greatest Canadian minds head South of the 48th to receive their educations, too. Have a great evening, moron!
Enjoyed this humerous post. No doubt, fools abound.
@#92 Oscar
I have a gem, currently performing extremely well in my portfolio: CNXT NYSE
VEF has been holding course and I am satisfied with it’s performance as well.
Picked up a copy oh Hilliard macbeths ‘when the bubble bursts’. Seems as it was written by Garth. Very good read. Hard to argue with reason and math unless you are a hardcore member of the cult of BCology. Does that 2 million east sider come with tulips ?
At #107: HAM, you are a bigoted and despicable human being. Arian Nation much?
#84 Andrew Woburn
Dude…in 5-7 years there won’t be professional driving jobs – computers will be doing the driving.
The future for professional drivers is unemployment. It’s becoming quite clear that this is the next major technological replacement of human labour.
If you are a professional driver…the writing is on the wall….but can you read it?
http://www.wsj.com/articles/google-sees-self-drive-car-on-road-within-five-years-1421267677
There is nothing wrong with a Real Estate strategy for building wealth and stability. It rates were to go up, it would be a different story because the buyers would dry up. But rates are NEVER going up again. Not significantly. Janet Yelling will not raise rates and neither will Poloz. The reason being because they can’t. If the did, the whole ponzi scheme would come crashing down. Janet Yeller knows this and that’s why she just talks about thinking about raising rates at some point when the conditions are right in the US. The US will never be right economically again. The US can only pretend that things are OK, when in fact they’re not. The US is no better in some ways than Greece was when they hit a debt wall. The only reason the US hasn’t hit a debt wall yet is that, for some reason, there is an abundance of confidence that the US can pay back their debt. When, in fact, they never can. Especially not if they were to raise rates.
Talk of rates normalizing in the US is nonsense. The US bubble economy simply would not be able to tolerate higher rates. The US has to rely on low rates to continually inflate asset bubbles. Janet Yellper knows this.
So don’t be afraid to buy RE thinking that rates will go up. In the GTA, especially, RE will continue to be hot. High unemployment might create a bit of a damper, but then the Feds will come up with something to heat up the market. Also don’t forget that massive immigration will always help to keep things bouncing.
#189 Smoking Man on 03.27.15 at 2:56 pm — “Revolutions are spontaneous, generally not lead by the people they are watching. The loud mouths on line.” Chew On This, then add this to further complicate matters.
Yo there SMan, blacksheep, SWL1976, Spectacle, HCWTT, shanks, Godth, chapter 9 and a couple of others.
Spontaneous combustion and spontaneous (color) revolutions are quite common these days. Bearing mind that sheeple are no more than cannon fodder, this is a major distraction to keep sheeple off guard (plus this), and have their attention spans focussed elsewhere — Good question. Why? But geddaloadovthis (new technology). However, an asteroid hit would level the playing field.
Because peace is not profitable enough, the US has moved to organize chaos in Yemen, in order to get to Iran. So far, it is working well, but involving Russia is Israel’s goal — to have both the US and Russia wipe each other out, to enjoy Iraq’s and SArabia’s oil with no public not-for-profit central banks anywhere.
However, China would be free to advance and disassemble Dimona, and would end up being the winner, except if Dimona blows up.
“So, should we round those yellow folks up, as we did in 1944? You disgust me. — Garth”
I don’t think that the commenter was showing any hostility towards immigrants; let’s not overreact.
Going back to the subject of the discussion – even if the Van prices are affected by HAM, as long as a large portion of the RE is owned by people with regular incomes, the prices will be sensitive to an economic downturn or intest rate increases.
Having a city with RE prices 5 (or is it 10?) times higher than the rest of the country cannot be sustainable. Don’t get bogged down in details; look at the big picture.
Greg,
I suggest you and your parents find out exactly what the CRA’s rules are, with respect to the definition of “principal residence”, should they proceed to upgrade in the manner that you described. You see, your parents want to add a $250,000 lane-way house. And they want that as a rental property. Is their basement also rented out? If so, are we going to end up with their present dwelling as a property that has SUBSTANTIAL rental values?
If all the upgrades and additions end up invalidating the “principal residence” status, any future capital gains will be taxable.
I do not know what the exact rules are. But I know there are wrinkles.
Perhaps Garth or other blog dogs can shed some lights.
Good luck!
#89 Godth on 03.27.15 at 9:32 pm
#84 Andrew Woburn on 03.27.15 at 9:20 pm
So when do commodities recover? Are the Americans upgrading their funky infrastructure yet or what?
=======================
It is difficult to say if commodities are actually beaten down or whether they have settled back after being driven up by speculation fueled by cheap money.
This annual commodity index from the Bank of Canada shows that major commodities produced in Canada are down from their peaks but still higher at least in nominal terms, than they were in 2006. http://www.bankofcanada.ca/rates/price-indexes/bcpi/commodity-price-index-annual/
The idea that US infrastructure is on the point of collapse may owe more to politics than reality according to a report in Forbes. Paul Gregory, a research fellow at Stanford, a professor of economics at the U. of Houston and a research professor at the German Institute for Economic Research Berlin says that US infrastructure spending is pretty much on a par with other advanced countries. He says asking civil engineers if you need to spend more on roads and bridges is like asking a barber if you need a haircut.
http://www.forbes.com/sites/paulroderickgregory/2013/04/01/infrastructure-gap-look-at-the-facts-we-spend-more-than-europe/
Not all Canadians are stupid…I know one who’s pretty smart.
#107 HAM on 03.27.15 at 10:50 pm
“I didn’t “vastly overstate” the situation. It’s written on the wall. Also, inflated RE price has a huge impact on local people whom do not have HAM money sources, as they are being priced out. This fueled the fire for such people to take on huge amount of debt to compete /catch up. Ultimately this affects people’s finance, and hence their overall life.”
First – I disagree that HAM has a 70-80% impact on the market in Van (maybe 10-15%). And even if they are buying at large surpluses to the going rate, all the more reason to sell to someone who is willing to buy at a premium. But that does not mean that I have to buy at that premium. I can rent.
I am going to use a different example… If a bunch of Italians come over to Vancouver and buy up all the cars at ridiculously high prices, I have a choice… buy them at the “market value” which is way too high or rent a car. Let’s say you can rent the car for a really good deal compared to the sale prices being amortized. I decide to rent because it makes financial sense.
Back to RE. Renting does affect my life – it makes it better than buying a property. At some point, I assume (and hope) that we will get closer to the mean. At that point, I would like to buy. Anyone who argues that their lives are deeply affected by these high prices are people that knowingly are sabotaging themselves… they need to wake up and do what makes economic sense and give up the “entitlement of owning their own home at present”.
So, should we round those yellow folks up, as we did in 1944? You disgust me. — Garth
————
Come on now, Garth…
Is this why you resist to acknowledge the influence of foreign buyers on real estate markets?
I am from a former Communist country, the same effect happened there after the fall of the Berlin Wall.
Western European capital started to flood the country, including German, Austrians dentists, lawyers, etc. buying apartments for their kids.
Real estate was cheap compared to Western European capitals and the city is absolutely beautiful. Demand for apartments jumped suddenly, prices grew fast and steady. Locals quickly realized again that their income can’t compete with Western European income.
Sounds familiar?
The market took care of it, after the initial excitement and spike of interest settled and the prices were no longer a steal.
I am happy to tell you Garth that not a single German, Austrian, etc. was round up because of the sky high real estate prices – and in that country rounding up in 1944 was far worst, way more shameful and tragically deadly than in Canada.
Lets clarify that “yellow folks rounded up in 1944” were Japanese Canadians that lived on the coast. And the year was 1942. It was partly a reaction to Canadians suffering 50% casualties in the Battle of Hong Kong (Dec. 1941), Pearl Harbour, & politics. McKenzie King, like leaders since forever needed to divert civilian fear & rage against something that is the “other”. The Japanese have the highest level of integration through marriage of any ethnic group in Canada. Canada has the 2nd highest migrants accounting for population 22% after Saudi Arabia 27% &ahead of the U.S.at 13.8%. So my take from this is that we round up all the Chinese in Vancouver. Ship them to the Canadian hinterland. Naturally its boring out there so they will all intermarry & we’ll live happily ever after.
Mr Turner
Post 107 is just stating the obvious…in regard to the detrimental effects that HAM is having on the affordability of RE in most of the GTA. No one on this blog has expressed the kind of disgusting thought you refer to in your reply to post #107. ” So, should we round those yellow folks up, as we did in 1944? ”
But one thing is sure, I work as nurse earning $85000/year and there’s no way in h…I could ever keep up and purchase anything decent in this area…where I was born!! Some call it the centre of the universe! I call it HAM land!
Ha Ha Garth… “A city where people would rather make offers than have sex”…. LOL…
Actually the Fed is under the direct control of the legislative and executive branches of the US government. — Garth
—–
The Fed was certainly not created by any of those branches.
Is is certainly not owned by the US government.
The control itself is quite interesting.
Sure, we can see the Fed chair testifying at the Congress from time to time, but if the reports were true, during the 2008 financial crises and meltdown the US government (legislative and executive branches) was relying pretty exclusively on people directly linked to the Fed one way or an other… It was pretty fuzzy that who was really controlling who.
@Russ L re: #81: Garth didn’t include that info in the post, but I did in my email. My dad’s 70 and Mom is 65.
You continually censure me just because my views are divergent from yours. You must have a real megalomaniacal bent. Or something.
Actually, you’re just a jerk. — Garth
#108 Wildnutter on 03.27.15 at 10:52 pm
The Nectonites
https://twitter.com/alienaxioms/status/551196255532355586
Um, right. I’m not sure that England is that alien a place, although it is a little different from Canada. Mind you we are talking about Norfolk, so maybe there’s something in it.
But see what Wikipedia has to say about Necton. And here are some pictures. Looks quite pretty to me but definitely more of a village than a planet.
How is the payback period 25 years?
A realtor friend was bragging at me the other day that he had just completed a “double fister”
.. Which to me sounded, not just immoral but something which should be illegal (if it isnt already).
Basically what he’d done is represent both the buyer and the seller of a single property – without telling either client that he was representing the other one.
I cant see how anyone but the realtor stands to gain in this situation. So how is this legal?
I’d never heard of such a thing before. Would love to hear your comments on it Mr Turner.
“Most people are not disciplined and when you talk to them about financial investments their eyes glaze over. For them a house and a big fat mortgage is their only hope.”
Actual quote from a gainfully employed grown-up in financial services:
“I really like how the system automatically deducts money for my TFSA whenever my paycheque comes in, because otherwise if there’s money in my account, I would just spend it until it’s all gone.”
#103 SWL1976 on 03.27.15 at 10:35 pm
“The Federal Reserve is a giant scam and most people don’t even know or care.”
——————————————–
And here I was silly enough to think that ignorance was bliss!
Actually the Fed is under the direct control of the legislative and executive branches of the US government. — Garth
But the Fed is a weird entity when it comes to “ownership”. It exists due to an act of Congress. But it is also considered an independent entity because it is not part of the Executive or Legislative branches of government. The Fed exists because Congress created it, but it doesn’t enact policy measures with any Congressional or Presidential approval. Politically, this makes it a very independent entity.
Read more: http://www.businessinsider.com/who-actually-owns-the-federal-reserve-2013-10#ixzz3VfIyLPor
Let’s also not forget the primary purpose of the Fed. Remember, the Fed exists to serve the payments system. This means it is a supporter of the US banking system. Before it can ever achieve its dual mandate on price stability and full employment the Fed must ensure the payments system is healthy. Therefore, the Fed is often viewed as a servant to the banking system while also trying to be a public purpose servant. It has, in effect, two masters by design.”
In actual fact it does no such thing…..It can only serve one master …guess which one?
Read more: http://www.businessinsider.com/who-actually-owns-the-federal-reserve-2013-10#ixzz3VfJjA0Va
Smoking Man, you didn’t answer my question about the Fermi Paradox last week?!
I just got back from Fairmont Pavific Rim on YVR waterfront. Sat back and observed. Felt important right from the start cause they parked my buddies cat between a lambo and a Ferrari. They couldn’t figure out what it was but knew it was expensive cause of the gullwing doors.
Anyways, we became kings. Funny how the illusion of one having money makes others do strange things.
After some gin tonic lime and a special Indian masala, it became clear. This is all an illusion. You can make it anything you want it to be. Please read Fermi Paradox and help me out.
Garth, maybe right a post on it.
@Mark
What did you drink tonight mark? Just curious. Make sure this is in bold and a reply back in Normal don’t below.
#22 DUI_on_Money_Road on 03.27.15 at 6:44 pm
#1 Leroy Washington on 03.27.15 at 6:02 pm
——————————————————
You are an A-hole troll that needs to go. Sir Garth, please ban this individual.
—————————————————–
I couldn’t have said it better and I agree . He’s at the beginning of each comment section as well. Sets up a foul mood.
This will start a rift between The Canadians and our American friends on this blog eventually.
#58 Corey — “At 2% vacancy and an 85% operating margin there’s $18K+ in EBITDA. Applying an outrageously conservative cap rate of 5.0% the income value is $360K. There’s value creation of $110K-$160K.”
Because the land was free, right? Prospective occupants of the main house aren’t going to mind having a smaller (shared?) backyard with gnomes living at the bottom of it?
Is that Smokey in this blog post’s photo? Wow, he really has hit the big time!
#128 willworkforpickles on 03.28.15 at 12:30 am
———————————————————–
Actually, Canada has a more highly educated population than Japan, Korea, the US, New Zealand, the UK, Australia:
https://ca.finance.yahoo.com/news/most-educated-countries-world-135700294.html
This post is from the Vancouver Condo Info blog……………Toast Says:
March 20th, 2015 at 1:29 pm 29
Spoke to a long time Westside Realtor yesterday over coffee. Points he made:
1) Initially the Chinese were using local realtors like him to buy. Now more likely to use mandarin speaking realtors to buy. Business has dried up for him and his colleagues as locals cannot afford to buy.
2) Many of homes being sold are flips from the first wave of Chinese buyers to the second wave. Never having been lived in.
3) There are huge numbers of unoccupied or occupied only a few months a year in the Westside. There are boarded up homes in Westside and even Shaughnessy held as a substitute for a bank account.
4) This is buying to live in, it is not even investing, it is a way to get money out of the country before they are nabbed and into something else. The same person who owns three homes here may own two in London and one in Sydney. Anywhere were ownership laws are lax.
5) Banks, lawyers, accountants realtors all help in moving the huge funds out needed for these purchases.
This is what an experienced local realtor is saying. When will the local and national politcians, bank economists and people like Turner admit what is happening.
Well-loved. Like or Dislike: Thumb up 67 Thumb down 6
Toast Says:
March 20th, 2015 at 1:30 pm 30
4) This is NOT buying to live in…
sorry
Well-loved. Like or Dislike: Thumb up 24 Thumb down 1
Vancouver’s natural beauty is tarnished by its human failings. So much hate and resentment, so many anecdotes masquerading as data, so much prejudice. This is the world we live in. Deal with it. If you can’t afford a house on the Westside, punishing those who can won’t change much. — Garth
#117 The American on 03.27.15 at 11:21 pm
No paragraphs in the USA? How gay.
#3 Corey: “What is wrong with implying there are other offers? Buyer beware.”
********************
Because it’s a lie. And liars can’t be trusted.
#24 John: “You truly are the king of sarcasm….”
******************
Maybe Garth is just getting fed up with the financial stupidity he sees all around him on a daily basis?
#113 SWL1976 on 03.27.15 at 11:09 pm
Actually the Fed is under the direct control of the legislative and executive branches of the US government. — Garth
——————————————-
And who owns the US Government?
Full circle
—————————————————–
Nectonites?
#34 TN: “I have seen the Judge disclose the amounts of all offers and send the prospective purchasers out to the hallway to write new sealed bids.”
***************
What the judge did was above board — he doesn’t have to accept ridiculous offers.
What the realtors do, is not.
CBC News Alert
Future Shop closing all stores across Canada…converting some to Best Buy.
#136 Derek R on 03.28.15 at 2:04 am
#108 Wildnutter on 03.27.15 at 10:52 pm
The Nectonites
https://twitter.com/alienaxioms/status/551196255532355586
Um, right. I’m not sure that England is that alien a place, although it is a little different from Canada. Mind you we are talking about Norfolk, so maybe there’s something in it.
But see what Wikipedia has to say about Necton. And here are some pictures. Looks quite pretty to me but definitely more of a village than a planet.—————
——————————————————-
They are hiding in the swamp……
https://www.youtube.com/watch?v=GAXT7zmLn0E
Future Shop is closing!…..Tragets closing earlier!
Run run run for the hills
More minimum wage jobs lost.
Alberta meet Quebec………. now send back the damn transfer money.
http://calgaryherald.com/business/energy/albertas-rising-debt-rattles-bondholders
Not sure if it is all HAM up there in Markham (GTA), lot of co workers (2nd generation) bought their places in the area, b/c its close to their parents, easy access to all the grocery/restaurants etc etc. But some friends (who came as international students) are forced to buy into the area because their parents can go around and run errands by just speaking Chinese.
As a renter I have no problem putting half of my after tax $ into investment accounts at the meantime having a comfortable living without wrapping my head around budgets and jars (Sorry Gail). So friends with mortgage can hardly win the arguments. Recently they came up with new argument, no house therefore no marriage (since when you need to OWN a place to get married?). I wonder what is more shaky, your marriage or your RE value, oh snap
The closing of Future Shop stores across Canada is the beginning of a new season of retail meltdowns that will accentuate the coming slide.
Keeping an eye on other chains as well – RONA, Lowe`s and Rexall looking particularly unhealthy, plus many clothing chains.
Re: Julia, #46:
“The bank refused him..shouldnt that be a red flag?”
Umm…yes!
So he thinks trading $15000 in rent payments for over $7000 per year in free money (interest) for the bank is a fair trade.
Good luck with that one, buddy.
Paul Eviston in Vancouver ALWAYS underprices to create bidding wars. It’s his only strategy. When I have looked I have always avoided his listings as I know exactly what he is attempting to do. Unfortunately it usually works :/.
I truly have no dog in this fight… couldn’t care less.. this is all tiresome.. but Garth you have no data either… your Victoria data can’t be extrapolated…. different worlds
Vancouver’s natural beauty is tarnished by its human failings. So much hate and resentment, so many anecdotes masquerading as data, so much prejudice. This is the world we live in. Deal with it. If you can’t afford a house on the Westside, punishing those who can won’t change much. — Garth
Strong Canadian economy:
“Future Shop stores closed across Canada, some to become Best Buy”
“About 500 full-time and 1,000 part-time jobs will be eliminated”
http://www.cbc.ca/news/business/future-shop-stores-closed-across-canada-some-to-become-best-buy-1.3013534
First read this one (already dated but still…)
http://www.macleans.ca/economy/business/the-new-upper-class
Earning $100k place the person in the top 8%.
If one is to download the sunshine list and add the employees, their salaries and taxable benefits one will end with the following summary:
Total numbers of employees – 111,586 (different from the one quoted above ?!)
Total Salary paid – $14,190,415,041 (significantly higher than the deficit – just from these 111,586 people)
Total Tax benefits paid – $96,770,359
Cost to the “society” – 14,287,185,400
One thing to keep in mind are that these “public servants” have very generous pension plans – they pay usually 10% or more of their salaries and the governments matches (if we are lucky) $ for $ and in some cases even more $$$ – so I will add 10% of the amount for salary paid – $1,419,041,504
Total “cost” to the society – $15,706,226,904
Distribution:
1. Ministries – 13,682 people paid $1,687,800,810 and $3,908,237 in TB
2. Legislative – 252 people paid $33,660,688 and $78,044 in TB
3. Judiciary – 628 people paid $125,830,462 and $1,025,571 in TB
4. Crown – 3,910 people paid $527,032,382 and $3,601,011 in TB
5. OPG and Hydro1 – 12,026 people paid $1,616,421,767 and $15,395,311
6. Municipalities – 30,790 people paid $3,634,494,375 and $29,484,592 in TB
7. School Boards – 12,723 people paid $1,453,935,172 and $8,028,496 in TB
8. Universities – 16,375 people paid $2,382,445,915 and $9,795,463 in TB
9. Colleges – 4,631 people paid $525,054,499 and $1,573,767 in TB
10. Hospitals and Public care – 11,622 people paid $1,534,246,248 and $10,566,265 in TB
11. Others – 4,947 people paid $669,492,719 and $13,313,597 in TB
And one more thing to keep in mind – according to CANSIM table 282-0011 Ontario had (as of Dec.2014) 1,336,600 public servants.
Granted some of them are under federal jurisdictions (and payroll) but still you can imagine the amount of money sucked for the “public service” compensation – all coming from the struggling private sector (outside of FIRE).
Nothing wrong to have a public servant paid $100k provided for each one of these there are 9 people (like in Germany) in the private sector earning $100k.
But in Ontario we have a situation where each public servant is paid with the taxes of only FOUR people in the private sector (and these are usually paid less than $50k with no DB pension).
This is unsustainable and the result is structural budget deficit until Ontario hits the Greece status.
And the last.
1,336,600 public servants in Ontario. And since they usually retire early (age factor of 85 and even 80 for the police) we probably have 1,000,000 or more of the “public sectors” retirees protecting their “gold plated” DB pensions and benefits.
This is a formidable voting block and it is practically impossible to wrestle the control out of them.
GOD (or whatever you worship) save Ontario!!!
It’s worth remembering these public employees pay an average of 28% in income tax with a marginal rate of 43%, as well as contributing significantly to their own pension plans. There may be too many high-paid public sector workers for your tastes, but they certainly contribute to overall revenues, as do you. — Garth
Yes indeed Daisy Mae, another 1500 jobs lost. It looks like retail is in serious trouble in this country. Yet I don’t see any bargains.
http://www.theglobeandmail.com/report-on-business/future-shop-closes-canadian-stores/article23677084/
Blackdog and Eaglebay,
Quit being jerks and launching personal attacks on The American, he brings perspective to this blog.
I enjoy his posts.
Every time a Canadian puts down the States it just sounds silly and petty, like we can actually compete against the biggest economy in the world.
Biggest markets for everything, get over it.
When this baby pops don’t expect any sympathy from The USA considering we looked down on them, and said their experience would never happen here.
I am Canadian.
Cheers.
At #117: Eaglebay, we have these things called JOBS in America. You did an excellent job with name calling, and a bigoted name at that! Congratulations for being a biggot. Glad you showed your true colors.
So they fix the election dates…but then punt the budget to when it might best suits them…nice one….. yer a devious charmer harpo
http://www.theglobeandmail.com/news/alberta/expect-pleasant-surprises-in-the-budget-despite-downturn-eventually/article23675225/
Blind psychotic pilots… Lufthansa lawyers are going to be very busy
http://www.theglobeandmail.com/news/world/germanwings-pilot-was-psychiatric-patient-planned-big-gesture-report/article23677061/
Because I don’t do anything I have lotsa time (a Grace) and so in the wee hours I checked to see what the BNN cognoscenti were up to.
Oh my goodness! There’s a perfectly coiffed Mr. McCreath fulminating about Poloz and the “more stimulus is needed” paragraph in the annual BoC written statement issued yesterday. The man takes GT’s actually quite reasonable point of view that the last thing the Canadian economy wants now is lower rates. [Cue blogdog Mark.]
The BNN segment further informed me that Ms Horodelski was on the phone, phonin’ around to see whether FOREX traders had got the “more stimulus” memo.
All for now.
Millennials will become minimalists… and that will crash Mcmansions at some point
http://www.washingtonpost.com/local/boomers-unwanted-inheritance/2015/03/27/0e75ff6e-45c4-11e4-b437-1a7368204804_story.html?hpid=z1
Foreign investors are simply buying at prices inflated by cheap credit and CMHC fuelled mortgages. Our policies and peoples’ appetite for owning homes in this country, at all costs, got us to where we are today.
The lower the mortgage rates the higher the prices go,
People can afford a fatter monthly because the interest rates are low so sellers and their partners in crime, the realtors, ask for more money. And they get it.
Besides sellers, mainly the Woodstock Generation, love selling at high prices for retirement and to give a little bit to their offspring to buy overpriced real estate, and so on and so on.
Blaming Foreign investors for high prices is a little too late.
The high prices were already here, after all the mortgage rule changes and low interest rates kicked in, in 2008.
Blame the policy makers for keeping interest rates too low too long, and CMHC and the banks for today’s prices as well as the unending propaganda machine pumping real estate for all it’s worth.
Hard to cast any doubt on any entities that we deem trustworthy and looking out for our best interests, right?
This is Capitalism not Socialism. Caveat Emptor.
#143 TRT on 03.28.15 at 5:17 am
Smoking Man, you didn’t answer my question about the Fermi Paradox last week?!
…
Send a video clip..tryed reading it at Wiki no idea what it means.
#136 Babblemaster
Jerk? Really Garth, that is not warranted and I take offense to it. I know I tend to babble, but I was simply calling you out on the deletion of my posts when they express opinions that differ from yours. I don’t believe rates will ever go up, you do. So what? That means my posts should be deleted? I know this is your blog, but with great power comes great responsibility and presenting differing opinions is a responsibility.
@#166 manwhostares
Interesting numbers.
God forbid you point out the fiscally unsustainable reality to a DB pensioned public servant. Deficit budgets and growing public debt dont foster a warm cosy future for most retired public servants. I see “benefits” reduced or cut. The pensions will be taxed more than they are now. The govt always gets its pound of flesh.
@#168 Marco
As Canadians launching personal attacks and looking silly when they “put down” the American or the US.
True, but then again Leroy Washington IS a bit of a dorkus malorkus
Future Shop and Best Buy are owned by the same person
How many times have you visited any REIT area and seen both stores… redundant
#143 TRT on 03.28.15 at 5:17 am
Smoking Man, you didn’t answer my question about the Fermi Paradox last week?..
…
Don’t bother with the clip…its figured out..
SETI is on the wrong frequency, radio waves…not sure if they’re look for light waves.
Truth is Alien intelligent life forms are here, hello…
They should study brain waves , esp. ucc. That’s how we communicate..
When you see crazy people at the looney bin, their not crazy..
There brain wave receivers are too powerful. To the ones tuned out..well they look mental.
Puzzle solved , any other mysteries you want answers to?
Re Paul Eviston as far as I’m concerned he is a fraud artist. Boy would I be ticked if I was stupid enough to pay way to much over asking and it was plastered all over the news. The neighbors already know they have a dumb dumb moving in
Vancouver’s natural beauty is tarnished by its human failings. So much hate and resentment, so many anecdotes masquerading as data, so much prejudice. This is the world we live in. Deal with it. If you can’t afford a house on the Westside, punishing those who can won’t change much. — Garth
—–
Garth, nobody is punishing anybody here. People are simply expressing views that differ from yours.
This is the world we live in. Deal with it! :-)
It is a well known fact that many people, from all over the world, park their excess money in real estate. Vancouver is one of those places. Greek money is lately being parked in Germany or London, Middle-East money has long been parked in London, Côte d’Azur or Costa del Sol real estate. Chinese in particular like to buy up and keep homes empty, as the value of a never inhabited home is perceived to be higher.
http://www.theglobeandmail.com/news/british-columbia/vancouver-mayoral-candidate-proposes-fee-for-empty-properties/article20596753/
http://business.financialpost.com/2014/09/11/china-buyers-vancouver-housing/
http://www.bloomberg.com/bw/articles/2014-10-15/chinese-home-buying-binge-transforms-california-suburb-arcadia
Serious question for Vancouverites:
How does anyone justify building a Vancouver laneway house? The city apparently charges more in fees than Maple Ridge charges for a full sized SFH, and contractors quote $200-250+ per square foot. This compares most unfavourably to the $90-150/sqft built cost for midrange stick-built construction most places in Canada and the US.
In Toronto, houses get converted from single family to multi-unit and back again all day long, with or without permits. But if a contractor said it would cost even $100k to put a suite in the basement, the door would slam hard and fast. Doesn’t anyone in Vancouver watch HGTV?
There’s that poster I already made fun of, who thought a 5% cap rate extremely generous, and conveniently forgot about land value. Who accepts a 5% cap rate and takes all development risk upon himself for zero? You can buy exchange traded REITs with property in Canada, the US or Europe with higher cap rates than that, geographically diversified portfolios, conservative leverage, in-place tenants and professional management. Better yield+growth prospects, no development risk or management headaches, and you won’t need to hire an accountant to do your taxes. Furthermore, you won’t be converting an SFH (which everyone wants) into an unseverable, asymmetric two building two unit property, for which the market is smaller.
OK, that was more of a rant than a question, but what the hell? Are there that many desperate-for-income seniors living in properties that they can’t really afford, scared of equities and REITs but willing to place their faith in toolbelt Tim the contractor, and certain of their ability to pick solid, reliable tenants?
P.S. My reading for the weekend:
http://goo.gl/CL69OJ
#201 gut check on [email protected]:10 pm
You mentioned warrants in your post(C-51) good point.
A judge may now be asked to give warrants to allow for disruption measures that contravene the Charter and Canadian law.A judge would grant a warrant for surveillance or search and seizure as long as the investigation is reasonable and doesn’t infringe on section 8 of the Charter.
This bill turns judges into agents of the executive branch-CSIS.
A judge can be asked in advance or required to say “yes” to say, wipeing a person(s) in question computer clean of all information,fabricating materials that discredit a person(s) in question in ways that cause others to no longer trust him/her. CSIS is authorized in any measure it chooses and is under no obligation to even seek a warrant.
“IF” a warrant is granted proceedings will take place in secret with “only” the government side represented,and no prospect for an appeal.Unlike a police investigation the person(s) in question will not be served with a warrant.
Quis custodiet custodes ipsos? “Who watches the watchers”?
@TheAmerican,
I did not know that a sentence could never, ever start with a conjunction! And to think that I did not learn this after 6 years of post-secondary education in Canada, is horrifying. Ooops. I did it again. Old habits die hard I guess. Oh well, at least I know what a paragraph is.
“Yes indeed Daisy Mae, another 1500 jobs lost. It looks like retail is in serious trouble in this country. Yet I don’t see any bargains.”
Bargains everywhere right now! As shelf prices, despite a 20% currency depreciation, haven’t really moved upwards even on the imported stuff. Not to mention, lots of bargains to be had at the Target liquidation, and soon enough, the liquidation for that department store that rhymes with “ears”. Not to mention Tiger Direct, etc. if you buy computer parts.
GOD (or whatever you worship) save Ontario!!!
Great post. What’s perhaps the most disturbing about the Sunshine lists is that positions in which, if advertised, would receive thousands of applications from qualified individuals, are still highly compensated. There’s HR clerks being paid $160k+/year. $100k+/year secretaries. Etc. Its the height of delusion to think that their jobs couldn’t be done by young relatively new BA grads who are unemployed in droves and would gladly work for half the money. Basic labour market principles have been repealed in favour of just handing a select group of people enormous amounts of money simply because they happen to be public “servants” rather than being exposed to the reality of the labour market that the rest of us non-public servants deal with in the ordinary course of business.
A “$100,000+/year secretary”? Show me one. — Garth
Garth,
Much has been written about the ‘methods’ used buy realtors and their boards, in Canada.
I have used these folks 5 times in my life and while the ones I have engaged are ‘nice folk’ the services that they provided never justified the fees that they charged.
The first case, the realtor had little interest in us as buyers and even though we found our own home, she got a commission.
In one case I had to show the house I was selling myself, when the realtor never showed.
Another time an offer we made was ‘replaced’ by an offer from the listing agents client.- an outright case of fraud.
So 60% of my experience with these folks was negative.
I know your opinion about FSBO’s.
But my question is: What is the alternative?
IF not FSBO, and if the fees charged by realtors are usurious, then what alternatives do you suggest?
Negotiating from 5% to 4% on a sale may save you $5000 on an average $500k house in Calgary.
But the fee for the value of the work from the realtor to sell an average house is still far too high.
Realtors will not negotiate a fixed fee of $7-$10k on a home sale, which would be fair in my opinion.
You nibble around the edge of the problem:
Don’t sign the BRA.
Don’t get involved in bidding wars.
Don’t buy a home at crazy prices.
All good advice for buyers.
But every buyer eventually becomes a seller.
And when a house needs to be sold, what alternatives do you suggest?
Should sellers just suck it up and pay obscene fees that the monopoly demands?
Should sellers just wait until some government body gets around to addressing the mess?
Any advice for sellers other than your past comments regarding FSBO’s.
#150
HAM, you are a bigoted and despicable human being. Arian Nation much?
===
Can you please elaborate? I am just stating the fact, how did it make me a “bigoted and despicable human being”?
166 TheManwhoStaresatSheeple
… “public service” compensation – all coming from the struggling private sector
——
Mostly employees are struggling in the private sector, the owners in most successful businesses are taking pretty good care of themselves.
It is Capitalism after all, you are supposed to be fairing best as a Capitalist.
#132: I am totally in agreement with you
#129: My point is that, Free Market needs to have check-and-balance so the interest is balanced. Massive influx of HAM does skew the market, forcing local people to either take on huge debt, or to rent, or to move out the area.
A coin have two sides. Now you rent, because renting makes more financial sense relative to owning. Let me ask you this: if you could have owned RE at very reasonable valuation, cheaper that the cost of rental, would you buy instead of rent? Yes you would, because it makes more financial. Now, what caused that unreasonable valuation? What actually drove you to rent?
Mind you, if more and more people choose or forced to rent, rent will go up and it will eventually affect you.
DELETED (Anti-Chinese)
Retail and restaurants are “canaries in the coal mine” for the general health of an economy. Household balance sheets in Canada suck because housing is sucking the life out of disposable income.
I don’t know if anyone else has noticed that both retail and restaurants are going highend. I think it’s because the middle class is broke so everyone is competing for the high end of the market or the bottom. Walk threw a mall and you see one of two things, really expensive stores or really cheap ones. I think the same is true for restaurants. The fast food chains are expanding, high end are thriving and mid-range are struggling.
I don’t want to sound like a doomer but I don’t see a fix until household balance sheets improve. I can’t see how they’ll improve with job and wage growth being stagnant so the only option is a mass of bankruptcy to clear the household debt problems. Am I crazy for thinking this way? Can anyone else see a different solution?
Forget Canadian real estate.Buy cash flow rental properties in the USA and use the money to pay your rent in Canada.Prices in Canada are insane,so boycott ever buying a house and never give a second thought about it again.I welcome higher prices in Canada because it means homeowners will have a great stash of money when they retire and cash out.
What a ridiculous farcking world we live in….
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/barrick-boosts-chairman-john-thorntons-pay-package/article23675413/
Thank you for your ongoing entries about the Vancouver Real Estate Clown Show. You are absolutely right, this bubble will pop, they always do, leaving too many people in financial shambles. As an example, there was a market peak here in 1981 followed by a severe correction. My first real estate purchase was a foreclosed condo (RBC) in Kitsilano and it cost $95k in the summer of 1984. The previous owner purchased it three years earlier for $139k. I make that to be a drop of about 31%. When I see 1 BR “garden suites”, that is basement suites, selling for 450k in Kitsilano, I know that the end is near. It will be brutal!
“There may be too many high-paid public sector workers for your tastes, but they certainly contribute to overall revenues, as do you. — Garth”
G…..what’s this…. a joke on us you spew? How do public servants contribute? They take from the public revenue…they produce nothing of economic value. They are a net drag on the economy…not any part of what defines ‘contribution’. You so funny G.
As I pointed out, they pay taxes just like you. They also run the public infrastructure that keeps you safe, healthy and protected. Stop being a redneck extremist. — Garth
#185 Mark
You say a lot in your posts but rarely, if ever, back up your claims with proof. After Target went into receivership the liquidator, not Target, set the prices. From what I understand most products were reduced 10% off full retail. Targets pricing put it out of business in the first place. Tigerdirect is going online, no deals there, they will just warehouse product until it’s ordered and then ship it out. Sears may go out of business, who knows, but until proof is provided, you certainly don’t.
A crushing victory in landlord\tenant resolution court yesterday. Amatuer, ignorant, arrogant landlady came into waiting area, laughing, giggling (shes late 50’s) then we went in, we spoke for 1min, immediatly the judge\woman started smacking her down for not being prepared in the LEAST, 2min later the landlady is singing like a Canary, admitting all the guilt, she just went on and on looking like an idiot, like she was being grilled by the FBI or something, it was hillarious! judgement quickly for us to get our damage deposit back. I was a real adult Garth, after all the arrogant emails she sent, the rediculousness, I didn’t even laugh at her, or high five my wife in front, a really classy guy I am. I did however burst out laughing when we left the resolution centre and was basically high-fiving pedestrians downtown Calgary as we walked back to city hall.
Your typical ignorant\arrogant house owner in Alberta, has been just getting by with 110$ bbl oil by selling granite (I kid you not, she sold granite….) bought some POS house to flip, partially finished reno’s when she got divorced. With no evidence or paperwork or anything did she just think she’d stroll in there and get awarded the 950$ she took from us for “cleaning” with no reciepts? Tales of things to come for AB, total wasteland I’m afraid, 5 Billion shortfall they say, what a joke, more like 2x\3x that for 2015, myself and other GF readers have always said Calgary and AB could be ground Zero, and its coming.
Imagine the outlying little towns in AB that had just oil money to keep them going, thats over…back to fighting over who gets to work in the Pulp plant on 12hr shifts I bet.
It’s earth hour Day apparently……
And here in Oilberta I hope we celebrate it as it should be ……with a giant lighted finger …….
“The worst result was from Calgary, Canada. The city’s power consumption actually went up 3.6% at the hour’s peak electricity demand.[19] “
@TheAmerican #169 re: “Glad you showed your true colors. ”
I don’t understand. I thought that unlike me, you always wrote perfect sentences. But now I am not so sure.
Gen Z on the way.. so I guess we will need to expand the alphabet now.. or will it be Gen A to follow…or more likely Gen ZZ top – retro version….
http://www.nytimes.com/2015/03/29/jobs/make-way-for-generation-z.html?hp&action=click&pgtype=Homepage&module=mini-moth®ion=top-stories-below&WT.nav=top-stories-below
#166 TheManwhoStaresatSheeple
“There may be too many high-paid public sector workers for your tastes, but they certainly contribute to overall revenues, as do you. — Garth”
garth…i am sorry…but this kind of thinking is so radically inverted.
government employees contributing to overall revenues!?!?
only private sector employees TRULY contribute to overall governmental revenues.
public servants (when taxed) are simply giving back money taken from private sector contributions.
if you were right…government employees could essentially pay themselves through taxation…and government could be maintained without any private tax contribution.
history tells us that this is simply not feasible.
incidentally, as many blog dogs have indicated…this is exactly why socialist canada (esp. ontario) is ultimately up the proverbial creek–at least economically.
#196
A clarification on Target. The liquidators set the prices because they actually purchased the inventory. They were only using the Target locations to liquidate as well as liquidating other inventory from different sources.
Pricing was not the issue. The CCAA filing materials, specifically the Affidavit of the Company, shed a lot of light on the issues that brought them to this. And it was not pricing.
http://www.alvarezandmarsal.com/targetcanada
Let me just make a slight correction to my comment on Target. The liquidators were an agent of the court to liquidate the inventory.
#74 A Believer
“I will never forget the mind shattering moment when in 1982, I opened a letter from the bank informing me that my five year mortgage at 10 3/4 percent was being renewed at 17 1/2 percent. It felt like the end of my world, and yet it happened. Utmost caution ever since!”
I had family and an acquaintance that were forced to renew at 19% and almost lost their houses. That would have been 13% to 19%, a 50% jump. Forced to work two jobs for a couple years til rates pulled back to 15% or so. All we need is a pop from 3 to 5% and she’s game over for most.
If you can’t see the top of the market is in, when all the crazy bidding shit is happening then you’re on the eve of destruction.
@TheAmerican, I take that back. You remain perfect, at least as far as I can tell which isn’t saying much. :)
Can we add the ability to reply to poster comments like many other websites? It would be great to create more discussion on various posts (keeping things on topic!) than have to scroll through all the chaff to get the wheat.
No. — Garth
Greg’s parents 67 & 70 with 400L in investments and a million dollar property are nuts to think of building the lane way house.
They need to realize they are 2/3 dead and the next road is all downhill from there. Sorry, stats tell me otherwise.
While I wish them a long and healthy life, the need for CASH in older years will kill that $400K in rather short order.
Best consider investing the proceeds from a sale of the big house, and moving to the 2nd or 3rd or 47th best place on earth, and rent. Buy small if you must buy anything. You need about a million* to retire in reasonable comfort kids, sorry. Your home sold is the ticket. Ticket prices may ride, or they mat go down -your gamble here.
(* reasonable comfort as lived, and experienced by the Retired Boomer your mileage may vary)
dam…. should read “stats tell me no otherwise.”
#96 HAM: “Garth needs to visit Vancouver…”
********************
Specifically, Richmond. All Asians now. All storefront signs are Mandarin. No English. And this is becoming a serious issue — our two official languages in this country are English and French.
Is this not a free country where folks are at liberty to speak whatever language they wish? Many Canadians have sacrificed much to maintain that freedom. Don’t dismiss it. — Garth
#189 HAM on 03.28.15 at 12:48 pm
“#129: My point is that, Free Market needs to have check-and-balance so the interest is balanced. Massive influx of HAM does skew the market, forcing local people to either take on huge debt, or to rent, or to move out the area.
A coin have two sides. Now you rent, because renting makes more financial sense relative to owning. Let me ask you this: if you could have owned RE at very reasonable valuation, cheaper that the cost of rental, would you buy instead of rent? Yes you would, because it makes more financial. Now, what caused that unreasonable valuation? What actually drove you to rent?
Mind you, if more and more people choose or forced to rent, rent will go up and it will eventually affect you.”
So – a few things…
1. A free market by definition does not need checks and balances as the supply/demand mechanism takes care of it. Of course, there are few true free markets. Housing is an example of a market that is far from free as the government MASSIVELY supports us buying them and, in Vancouver, restricting land development (both making prices artificially high). Granted, even the small but significant amount of buying by foreigners adds to an increase in demand/price but nothing compared to other factors.
2. It is a misnomer to say it is a MASSIVE influx. Has this helped inflate some pricing in very specific areas – sure. But most of the market is local and is really just playing musical chairs and inflating the price.
3. Yes – if RE was reasonably (or closer to the mean) priced, I would buy. If a business I was considering buying was overpriced, I would pass on it (even if I really liked it)
4. But rents are not going up. This is a POWERFUL demonstration that the house values are decoupling from true value. My current situation is a prime example with rent at 50% of what the cost of ownership would be. Of course, as we move closer to the mean, some of it will be due to prices realigning with financially sensible numbers and some of it will be due to rents increasing. But it will not be all of one or the other. Ultimately, I will reevaluate as the housing market conditions and rental conditions change over time.
If you look at the US, rents are much more in line (or even in some states high) with house prices. That was not the case either in 2006/7.
#209
Is this not a free country where folks are at liberty to speak whatever language they wish? Many Canadians have sacrificed much to maintain that freedom. Don’t dismiss it. — Garth
===
Hey Garth, I guess Daisy Mae is referring to store signs on the street, not speaking language.
Moreover, store signs shown in Chinese ONLY (without English) does not seem to promote multiculturalism, which many Canadians have sacrificed much to maintain.
Again, I myself is a Chinese. I have nothing against Chinese as an ethnic group.
#209 Daisy Mae on 03.28.15 at 2:37 pm
“Specifically, Richmond. All Asians now. All storefront signs are Mandarin. No English. And this is becoming a serious issue — our two official languages in this country are English and French.”
My son (we are Italo-Norse-German-Canadian) studied Mandarin in high school (instead of French). He went to Hong Kong to work at a 3D printer startup in Kowloon (working with people from HK, Mainland China, Phillipines, the US and Germany).
Two official languages mean that our government services MUST be provided in those. I could care less if a store/restaurant wanted to be in only Mandarin (or Italian). If they lose customers because they cannot read the sign – that is their business… I think Quebec’s misguided French language laws are something we do not want to engage in.
We need to let go of fear and embrace our diversity in Vancouver – it is a huge benefit for all of us to become more global in our mindset. We have much to learn and share with everyone. Not to mention the great food ;-)
My previous post for some reason didn’t make it. Here we go again.
DELETED. This is not a blog for Chinese haters. It’s not for those who dislike wealthy immigrants or believe some external force is the reason you can’t afford a house where you feel entitled to one. It will not denigrate an ethnic group or allow the use of slurs or derogatory labels. There is no shortage of sites devoted to losers. Go sniff one out. — Garth
SF housing frenzy… bit at least based on an economy…
http://blog.sfgate.com/ontheblock/2015/03/26/tech-jobs-lack-of-new-housing-supply-lead-to-feeding-frenzy/#photo-612338
#122 NoOneOfConsequence on 03.27.15 at 11:36 pm
#84 Andrew Woburn
Dude…in 5-7 years there won’t be professional driving jobs – computers will be doing the driving.
=================
I have made this point myself but I question how fast it will come. When oxen are about to be gored they can get obstreperous.
Under NAFTA, Mexican trucking firms were supposed to get rights to compete directly in the US and Canadian markets but immense lobbying pressure about “safety” from the Teamsters among others have limited their access to a few miles from the southern border. As far as I know, there is nothing to prevent major US truckers from operating a Mexican subsidiary so I doubt that their fear of competition is a big factor.
I agree that the technology is there but the process of getting social and regulatory buy-ins will take longer. The way I see it happening is that major trucking companies will experiment with one fully automated highway truck following another with drivers aboard. As the technology improves and becomes accepted by the public, highway “trains” of a “driven” truck and several automated units that can run 24/7 should be possible. Rather than employment falling off a cliff, I would see a steepening decline and a preference for younger, more tech savvy drivers.
In my view the drivers who are more at risk in the shorter term are city bus drivers. Where you have absolutely predictable routes managed by a trusted central authority struggling with the cost of union wages and pensions, it’s a no-brainer. Nobody in Vancouver worries that Skytrain has no drivers.
DELETED
Small business (and big ones) are the ones who are the money makers for the country. I really think that every person should go out on the streets and start a business. Start living from that business and see if what kind of life it is. Not so easy then start another one.
HAM…I think you should go to Brad Lamb’s office and get the facts and figures. We do have to be careful of money laundering coming in.
Is it not in The Canadian Charter Rights for the government to support Canadians in ownership. Know many Canadians that career minded (like #132 Dave) making big bucks but are not stupid enough to buy high. Thinking out loud.
DELETED (Anti-Chinese)
Future shop punting 1500 souls……….translation to canadians…….great TIME TO BUY A HOUSE……………….LOL
DELETED (Anti-Chinese)
All I did was posting news links. I thought you are open and fair.
After reading this blogs for 5 years, you have really let me down.
Maybe you should go back to just reading. — Garth
Vastly overstated. But, so what? Most real estate is inflated because most locals made it that way. Obsess about that. — Garth
********************************************
80k a year locals buying east van 2.2 mil houses for 560 over asking …
DUDE…I JUST DON’T UNDERSTAND YOU ANYMORE!!
The average house is not $2.2 million. Stop being extreme. — Garth
#58
You are capitalizing the income stream of a laneway home?
Unbelievable!
Your pro-forma is….
Do you manage a REIT?
“believe some external force is the reason-Garth”
——————————————————–
As a 50 year resident of Van, having lived in multiple locations in and around the area, can confirm, this IS
the number one (but not the only) reason housing prices have gone ballistic.
I suggest we stop the focusing on the ethnic distraction, as it is, 100% irrelevant.
This has nothing to do with prejudice or anger, I’m simply stating facts, as experienced.
Now we know how Mexican locals feel when canadian’s fly to Cabo and buy condos.
Such is life, ride the wave.
House prices are a function of interest rates, public innumeracy and governmental policies such like CMHC insurance, not immigration. — Garth
#101 Retired Boomer – WI on 03.27.15 at 10:18 pm
#84 Andrew Woburn
I wouldn’t “sweat” seeing trucking wages rising very much. They have dropped rather deeply over the last 20 years, but when did you “see” the products you buy drop in price? Merely another ‘noise’ report on Zerohedge.
========================
This wasn’t from ZH, it was from authoritative industry sources. It is true that independent truckers, who usually get paid by the mile, have been losing ground for years, but the situation is different for employees of large highway carriers.
If there really were no blue collar jobs in the US, you wouldn’t see industry headlines like this.
-Driver turnover at US truckload fleets remains above 90%
http://www.trucknews.com/human-resources/driver-turnover-at-us-truckload-fleets-remains-above-90/1002962793/
“We saw turnover at fleets with at least $30 million in annual revenue bottom out near 50% at the depths of the Great Recession and have increased steadily since,” ATA chief economist Bob Costello said. “The rate appears to have flattened out at an elevated level for the moment. However, it could easily increase as tightness in the labor pool should continue, and even worsen, as the economy improves.”
Back in 2004, an executive of one of the top 20 private US trucking firm told me his drivers earned $40-50K p.a. and yet he was “lucky” he only had 50% annual turnover.
The whole “just-in-time” US economy depends on highway trucking. If drivers are in short supply, they will get raises. If they are finding other jobs, employment must be tightening.
The Fed’s job is to get ahead of this process and keep the lid from blowing off. This means they must and will raise rates in increments starting this year.
DELETED (Anti-Leafs. Pro-Flames)
Is this not a free country where folks are at liberty to speak whatever language they wish? Many Canadians have sacrificed much to maintain that freedom. Don’t dismiss it. — Garth
Tell the first nations all about it. The last residential school closed in 1996.
Garth, care to explain in layman words what you meant in the footnote to post 166:
“It’s worth remembering these public employees pay an average of 28% in income tax with a marginal rate of 43%, as well as contributing significantly to their own pension plans. There may be too many high-paid public sector workers for your tastes, but they certainly contribute to overall revenues, as do you. — Garth”
From my side I will provide one example that we can cut the public sector compensation by 20% without any extra harm except to the locales around the Danubian cruise lines, Hawaii and the traditional snowbirds locations in Arizona, Florida, etc…
No harm to the Canadian economy at all.
I will compare the public service compensation for Toronto with their equivalents from Chicago – been that both are in similar size, close geographically and with similar economies.
Public transportation:
TTC (Toronto)
TTC sunshine list:
2012 list (for 2011) – 1158 people
2013 list (for 2012) – 1395 people / CEO paid $294,366 plus $14k TB
2014 list (for 2013) – 1748 people / CEO paid $323,638
2015 list (for 2014) – 2075 people / CEO paid $345,147 plus $14.5k TB
CTA (Chicago)
On the other hand Chicago Transit Authority has only 147 people (out of 11,415) paid over $100,000 in 2013 with the president being paid $205,501.
Only one person paid above $200k
You can download the latest payroll data as of Mar.1,2015 or you can search here their entire payroll database:
http://www.bettergov.org/payroll/?PensionCode=202&F_Employer=%27Chicago%20Transit%20Authority%27&F_Year=%272013%27
Police:
Chicago PD
The salary list DB is here:
https://data.cityofchicago.org/Administration-Finance/Current-Employee-Names-Salaries-and-Position-Title/xzkq-xp2w
2014 – only 1278 people paid over $100k (data updated every quarter)
Top3:
Superintendent – $260,004 (only one above $200k)
First deputy – $188,316
Chief – $185,004
Toronto PD
SL2014 (for 2013 )- 2983 people paid over $100k
SL2015 (for 2014) – 4125 people paid over $100k (52% of the workforce)
Top 3 for 2014:
Chief of Police – $349,259 + $2,333 benefits
Police constable – $244,095 + $774 benefits
CAO – $240,879 + $15,926 benefits
Granted today – there is a big difference between the C$ and U$ but for the most of 2014 and the few years before there were more or less at pair.
Who will dare to explain why we are robbed in daylight by our “public servants”
Median house prices: Chicago – $218,000, Toronto – $625,000. — Garth
#198 Squirrel meat on 03.28.15 at 1:16 pm
It’s earth hour Day apparently……
And here in Oilberta I hope we celebrate it as it should be ……with a giant lighted finger …….
“The worst result was from Calgary, Canada. The city’s power consumption actually went up 3.6% at the hour’s peak electricity demand.[19] “
…….
Thanks for the heads up, got to go to home depot , have a few burnt out lights.
I turn on every light in my house.
In Ontario when demand drops we sell our excess power to the USA at loss.
#209 Daisy Mae
All storefront signs are Mandarin. No English. And this is becoming a serious issue — our two official languages in this country are English and French.
***********************************
So let’s start the conversions with:
lululemon – what does that mean in either English or French?
Rexall – meaning?
Bregman’s – Croissant?
Chinook Mall – Chinook is Blackfoot for “snow eater”
The city of Okotoks – Blackfoot for “big rock”
Mistaya Pass – Mistaya is First Nation for Grizzly
Toronto? Ottawa?
Next time you are in Richmond, park your car, take a walk, poke your nose into the various shops, be greeted by a graceful and industrious proprietor and on your way out, memorize the branding.
When you come to Calgary visit Na Trang and La Brezza. The meals will knock your socks off.
Regarding the Futureshop closure, it is baffling how entitled many Canadians feel. Check out some of the quotations at http://edmonton.ctvnews.ca/workers-shoppers-shocked-by-future-shop-closures-1.2302124:
” … it is nothing near what some people deserve,” full-time employee [said] … “It is kind of dirty how they closed down the store,” customer [said]. … Everyone losing their jobs with no notice is absolutely unfair. … I don’t think there is going to be any brand loyalty left for them, at least from me and a lot of consumers.”
Here is news for you: you are NOT entitled to work and a salary, and you are NOT entitled to any more notice than what labor law requires. Also, customers in today’s internet age with abundant choice and near-instant delivery and availability do not give a hoot about brand loyalty: all they care about is the best quality for their purpose for the best price. This move by Best Buy is simply necessary for them to remain competitive, and driven by changing customer and supply realities. “But it is now fair, how can they do this to ME?” Grow up, it is not about you, business has never been about you the employee, if you are lucky you are in for a long ride as long as the company gets more out of your contributions than it costs, in relation to its business objectives; if not, you are out. You are NOT entitled to a job, it is called capitalism. It is the same capitalism that has tripled the home values of many homeowners who are employed by companies like Futureshop, without having to lift a finger. “But I deserve that, I made smart investment decisions, I am so clever!” It is pathetic what our masses have turned into. A good strong recession is the only thing that will help to hammer to sense back into the brainless self-entitled masses. Guess what, it is around the corner now. It will not only beat common sense back into people, more importantly it will also bring back fairness to our young people, who are more educated than ever but have few prospects ahead of them if the status quo continues. A good recession, accompanied by a further major increase in the valuation of the CAD, will do wonders to bring back entrepreneurship in our country, aided by investment from within and abroad. We should be thankful as a society a major recession is imminent; without it our businesses will continue to erode even further until there are no prospects left for Canada other than to do a giant sell-out to foreign interests.
Is this not a free country where folks are at liberty to speak whatever language they wish? Many Canadians have sacrificed much to maintain that freedom. Don’t dismiss it. — Garth
=====================================
Ever been to Banff?
The street signs and stores are English and Chinese , there’s no French here.
Chinese spend a lot of money, good for business.
@#221,220,216,213,211,190,189,187,130,115,107,96,15……..all HAM all day.
Go away.
Nobody likes a whiner.
As Garth has said, real estate is local. My inference is that while pockets of areas can be temporarily moved by foreign money, the movement of entire markets(Vancouver, Toronto) can only be caused by lax lending and low rate.
The value of these pockets eventually move in correlation with the City’s employment health. Only places such as London, Bay area, Seattle, with relatively more abundant high paying jobs, can sustain high realestate value.
HAM is strong in Van and To, but it is and has always been the strongest in L.A. Having lived in all three of the cities above, I can tell you that even HAM heaven Arcadia L.A, before the arrival of HAM from China, had almost for a decade of reasonable real estate price ,way below its previous peak caused by HAM from Taiwan/Honk gong.
I lived in China for the past 11 years(very recently relocated to Singapore) and I think the HAM money from China is about to dry up. HAM does not lasts forever, yes this wave has lasted longer than the last wave from HK/Taiwan as mainland is simply much more massive, but this wave in my opinion is about to end.
Dogs, remember I said my son will get his ass kicked in Forex. Soon.
Click my name if you want to see the damage.
USDCAD broke correlation to oil. My guess the market had already priced in a Rate spike , and removed it on Friday
Ouch……
BlackDog, I didn’t claim I was perfect. However, should you want to continue to discect a person’s punctuation, spelling, grammar, or if a paragraph is in order, you should also be prepared to have it thrown right back at you. :-) If you’ve noticed, I never pick on anyone in this blog with respect to their spelling, grammar structure, punctuation, etc. If you’d like to know more, you should understand it is not at all a complete sentence to begin with the conjunction “Or” and not provide a comma afterward. Additionally, you’ve proceeded to make no less than twelve additional errors since your last three posts toward me. I’ll concede to stop here, and hopefully you’ll continue with your education, or you’ll remain more focused on one’s content, rather than seeking to needle on such an elementary note. Cheers!
CPPIB.COM Boy do they need investment advice.
#221 HAM Go with Boomers and “wrinkleys “. You can say anything you want about them on this blog.
Yes, much better choice. — Garth
I’m curious how everyone with all their capital invested in stocks and bonds, GICs, etc. will be doing when they start going to negative interest rates in Canada and the United States as they are now doing in Europe. That’s right folks, negative interest rates are coming, get ready!
Not gonna happen. — Garth
Hey! HAM person! Yeah, YOU! Dig this:
Ni shuo Zhongguo-hua? Ni shi Zhongguo-ren? Ni hao-a? Wo hen hao. Translate: Wo yao chi fan. Doshao quien? Wo dao quiche zhan q’.
AND Sange laohu, sange laohu, pao de kwai/ yge meio weiba . . . zhen qui kwai.
Hey, Daisy Mae!
Ausser diesem Quebeck sollte ja doch Deutsch die zweite offizielle Sprache sein, nicht wahr?
And for my Italian friends:
Sei qui, sei qui mi baci e m’accarezzi? Ah, dimmi quando in cielo te potro vederti, te carezzarmi? Dillo alla mamma, creatura bella, con un leggero scintillar di stella, parlami, amore, amor-
AND: Nesun dorma, nesun dorma . . . a domani vincero, vincero, vinCEEEEEEEEEro!
And in universal language: HA HA HA
(Forgot my friends in Brampton: Hum tere bin ab reh nahi sakhte, tere bina kya wajood mera . . . tum hi ho . . . tum hi ho.)
[Helpful hints for the bigots: quiche, qui-che = compressed air – vehicle = bus
Say Kitchna-Voterloo.
Google Suor Angelica, and Turandot.
Tum hi ho (see Arijit Singh) is the polite way of saying You just are, as in You’re just you OR Just the way you are, nuthin to do with “Hi ho, off to work we go”
Bonus aria: La mamma morta/ m’hanno alla porta/ della stanza mia// moriva e mi salvava// E Bersi, buona e pura/ di sua belleza/ ha fatto un contratto per me
Bonus bonus song: Kuch is tarah
UND: Hansel und Gretel verliefen sich im Wald/ Es war so finster und auch so grimlich kalt . . . Huhu da schaut ‘ne alte Hexe rein
I could go on.
#102 Karma on 03.27.15 at 10:28 pm
““The extent of Vancity’s analysis is drawing a straight line…”
Which is why Vancity probably won’t exist a few years from now. Either taken over in sheer desperation by a consortium of the big-5, or in some sort of perpetual receivership….
If it went bust, it would be a very rude awakening in BC.
======================
BC’s credit unions didn’t go down in the debacle of the early eighties when interest rates spiked and house prices plummeted overnight. As I recall it, there were a couple of hasty marriages of institutions that had been a bit too friendly with overly optimistic real estate developers, but no depositor lost a dime.
Since the 1980’s the credit union system has been greatly strengthened. Many are unaware that there is now a inter provincial central credit union (BC and Ontario) that acts like a central bank. The credit unions didn’t fail in the financial crash of 2008.
I believe that house prices will decrease but I have no sense that the change will in any way resemble the literal catastrophe of the 1980’s or even the GFC. I would therefore like to see some solid evidence that the credit unions represent a greater risk today than they have in the past.
For me personally a mere implication of ‘possible’ competing offer(s) was always a major turn-off, no matter how great the property was. Out of principle, I would never give my money to someone who tries to ‘extort’ me.
I once drove ~350 km to pick up my brand new bike only because a local dealer raised the previously agreed upon price. I knew that by the time I made the round trip coupled with few nights at a hotel (made a mini get-away out of it) it would cost me way more than buying it locally but the satisfaction of not giving them my money was priceless.
Playing games have always had exactly opposite effect on me.
Saw this and it blew my mind. Appropriate for the blog post title. “Slimy” is understating it.
http://www.sunnybatra.com/blog/p/can-you-get-400-roi-from-investing-in-toronto-condos#.VRZO61BXXfQ.twitter
Smoking Man, I told you to be careful trading headlines. They are trying to starve Russia/Iran, they’re not going to let a little regional conflict spike oil prices. Ouch. Whatever, you can’t win everything, price of admission. You’ll make it back.
Garth, real estate is not going to ‘crash’ or correct. Although the Canadian dollar might. That $1 million house won’t seem so expensive when it takes $100 to buy a pizza with our devalued currency. They’ve set the system up for that, an interest rate hike will forced the government to default on at least some of it’s debt. Or austerity, then we will have a crash. But I doubt that, they’ll just kill the Canadian dollar, less riots that way.
As stated, rising truck driver’s wages and benefits is a good thing. Anybody who thinks driving a truck for 50 grand is good, has never been around the industry.
Frankly, there were many who routinely earned this amount in the later 1970’s. I know, I did the books back in those days.
Now, shall we add in 40 years worth of inflation to that compensation? No, having drivers’ wages rise by 50% still would not bring back those heady days in most barns today. Back then a large percentage of drivers were teamsters with expensive benefits. Today a non-union shop that might pay you .55 a mile book miles (subtract 12%) from what you are actually driving, and maybe a 401K and participatory health insurance.
I like seeing hard working, smart people get a raise, and there are few who are “smarter” or, work harder than interstate truckers (my opinion only).
RE:#238 Henry on 03.28.15 at 6:07 pm
I’m curious how everyone with all their capital invested in stocks and bonds, GICs, etc. will be doing when they start going to negative interest rates,,,…..”
If you are so sure that there will be negative interest rates in the future, then you should load up on stocks and bonds now. A 40/60 mix of bonds and stocks would be a good start.
Is there really something wrong with the Bank of Canada? http://www.theepochtimes.com/n3/1290580-bank-of-canada-faces-lawsuit-for-alleged-imf-conspiracy/
#225 Andrew Woburn
I would be delighted to see short term lending rates increase from their current floor rates of zip to.25 by a factor of 10. Yeah, not going to happen, but it would a huge brake on speculative purchasing, and borrowing for investment (margin).
You cited the ATA’s piece for a boost in driver’s wages. ATA is primarily a lobby group these days, so take a l;rage grain of salt with that news. If drivers’ wages get too high, they will be replaced in time by the driverless trucks.
Rate clerks were largely replaced by the development of the freight brokers to move TL freight, why not?
More technological innovations will vastly change the working landscapes of both countries within the next decade. We will hardly recognize the place.
RE:226 Washed Up Lawyer on 03.28.15 at 4:26 pm
DELETED (Anti-Leafs. Pro-Flames)
LOL! Was this Garth or just WashedUp pretending to be deleted by Garth?
Leroy: “Canadians have the opportunity to learn from the US mistakes, as it pertains to residential real estate. Unfortunately, Canadians choose not to do so for reasons that are clear to only God Almighty himself.”
“As a results, Canadians will be financially destroyed soon.”
Leroy, haven’t you heard? 1. Their not building any more (land) and 2. Vancouver real estate ALWAYS and ONLY Rises in price. There is no way to go but up.
Get with the program.
#161 Dominoes: “Keeping an eye on other chains as well – RONA, Lowe`s and Rexall looking particularly unhealthy, plus many clothing chains.”
********************
Value Village should do well….if you have the time to scout, there are great deals. Sign of the times.
@#239 Nagraj
“I could go on”
++++++++++++++++++++++++++++++++++++
Please dont.
So mama is encouraging her kids to follow their own path is she? In my experience, when parents give you a huge chunk of money for a house, they’re doing the exact opposite. If Jr. gets tied down to a massive mortgage in his home city, that means Jr. can never ever move away. He will always be just a few minutes drive from mama.
I said I speak from experience. 5 years ago, my in-laws offered to give us their house. With the in-laws still in it. Meaning they could live out their twighlight years in their own home, with no property taxes, no maintenance, no utilities, no rent, no cost of living whatsoever. Hell, no housekeeping duties! If they gave us a house, what right would we have to ask them to lift a finger or pay for anything? Plus they’d have someone to drive them around to shop and for appointments and what not. Took me all of 1 second to turn this generous offer down flat.
Now, do you really think mama just wants sonny to make sound investments and pursue financial freedom? No, she wants him anchored in place within easy driving distance. And being a mamas boy, he’ll agree.
#168 Marco: “Blackdog and Eaglebay,quit being jerks and launching personal attacks on The American, he brings perspective to this blog.I enjoy his posts.”
*****************
So do I.
#174 Marco: “People can afford a fatter monthly because the interest rates are low so sellers and their partners in crime, the realtors….”
********************
Until they renew. By that time, the realtors couldn’t give a damn.
Re: Futureshop closing up shops. I bet there will be push by realtors and developers to build more condos in those “in-demand” areas.
#185 MarK: “Yes indeed Daisy Mae, another 1500 jobs lost. It looks like retail is in serious trouble in this country. Yet I don’t see any bargains.”
Bargains everywhere right now! As shelf prices…”
***************
We’ll pay what we feel the product is worth. And not a penny more. NO RETAILER should sell the buyer short. We’re digging in our heels…
#146 Darryl on 03.28.15 at 8:01 am
#22 DUI_on_Money_Road on 03.27.15 at 6:44 pm
#1 Leroy Washington on 03.27.15 at 6:02 pm
——————————————————
You are an A-hole troll that needs to go. Sir Garth, please ban this individual.
—————————————————–
I couldn’t have said it better and I agree . He’s at the beginning of each comment section as well. Sets up a foul mood.
This will start a rift between The Canadians and our American friends on this blog eventually.
Blimey! Why so harsh, friend? Foul mood? Just because the cuddly Leroy has an RSS feed that’s locked on Mr. T. blog posts? Just look at his cute fuzzy head and give him a pat…
It’ll take a lot more to generate a rift between people who have so many common interests…complaining about the government, complaining about idiotic young people, complaining about idiotic old people, other posters’ grammar and spelling, excoriating rich foreigners, being annoying about (or from) Alberta, house prices and those impossibly perky real-estate salespeople, and, of course, the inevitable market collapse that will allow us to be right…finally…any day now.
Anyway, I see Leroy’s tone has changed recently. He might be a bit drooly, but I think he likes us.
#206: “Can we add the ability to reply to poster comments any other websites? It would be great to create more discussion on various posts (keeping things on topic!) than have to scroll through all the chaff to get the wheat.
No. — Garth”
***************
Everyone is entitled to a opinion…even if it disagrees to yours. And, we don’t have to make it worldwide.
#248 kommykim on 03.28.15 at 7:16 pm
“RE:226 Washed Up Lawyer on 03.28.15 at 4:26 pm
DELETED (Anti-Leafs. Pro-Flames)
LOL! Was this Garth or just WashedUp pretending to be deleted by Garth?”
+1 – I made a fake post on the first day Garth did it…
DELETED (Truth)
But the post didn’t come up… Guess I was too cheeky. ;-)
#206: “Is this not a free country where folks are at liberty to speak whatever language they wish? Many Canadians have sacrificed much to maintain that freedom. Don’t dismiss it. — Garth”
****************
Don’t dismiss the fact that this is CANADA. And in CANADA, we speak English or French. This is a very touchy subject in Richmond, BC…and rightfully so.
#206: “Is this not a free country where folks are at liberty to speak whatever language they wish? Many Canadians have sacrificed much to maintain that freedom. Don’t dismiss it. — Garth”
*****************
Don’t agree. “When in Rome, do as the Romans do.” Richmond is not Asia. We have a multicultural society — a ‘melting pot’. Supposedly. Richmond does not belong to the Asians.
It belongs to the people who live there. All of them. — Garth
https://www.youtube.com/watch?v=mHXg_V8cu8U&feature=youtu.be
Re 226 and 249. Was thinking the same.
Enjoy.
#248 kommykim
“RE:226 Washed Up Lawyer on 03.28.15 at 4:26 pm
DELETED (Anti-Leafs. Pro-Flames)
LOL! Was this Garth or just WashedUp pretending to be deleted by Garth?”
LOL I thought maybe he was a Habs fan but then he would hate the Leafs so he would not have deleted that.
I like your explanation better!
GO HABS!
#259 Daisy Mae on 03.28.15 at 7:58 pm
#206: “Is this not a free country where folks are at liberty to speak whatever language they wish? Many Canadians have sacrificed much to maintain that freedom. Don’t dismiss it. — Garth”
****************
Don’t dismiss the fact that this is CANADA. And in CANADA, we speak English or French. This is a very touchy subject in Richmond, BC…and rightfully so.
Rightfully? Sounds like a dog-in-the-manger attitude to me.
Y’know this has happened before. Waves of people have come to Canada. Boatloads of them. It changed the country and made it what it is. I am grateful that people want to come here and bring their money, if they want to.
There’s a very interesting wee book by John Ralston Saul, Louis-Hippolyte LaFontaine and Robert Baldwin about two founders of Canada who fought against bigotry and division, rioters and vested interests. In the 1840’s. Without such tolerant and determined people in the past we wouldn’t be speaking English and French.
It’s worth remembering these public employees pay an average of 28% in income tax with a marginal rate of 43%, as well as contributing significantly to their own pension plans. There may be too many high-paid public sector workers for your tastes, but they certainly contribute to overall revenues, as do you. — Garth
Mr. Turner, according to your logic, we should all get a public servant job and everybody would be happy? Why would we need a private sector then?
I merely reminded you that everyone, including public workers who protect and care for you, plus teach your kids, pay taxes. Go ahead and privatize the cops. See what happens. — Garth
@ #5 Bill Gable “I have a friend who owns 5 condos, but is paying for groceries on his Credit Card…”
Using credit card doesn’t imply anything. Many do it out of convenience and pay the full balance when due. I have. Stopped carrying cash years ago.
#261 Daisy Mae — “Don’t dismiss the fact that this is CANADA. And in CANADA, we speak English or French. This is a very touchy subject in Richmond, BC”
It took BC a long time to reconcile itself to French. As recently as 2003, fewer than half there thought their province should be bilingual.
http://www.ocol-clo.gc.ca/html/evolution_opinion_section_1_e.php
I wish I could remember the title of the book that used to be de rigueur on every western bookshelf, opining that teaching French in schools was some evil plot from central Canada… Ah, here we are: Bilingual Today, French Tomorrow: Trudeau’s Master Plan and How it Can be Stopped (1977)
#240 Andrew Woburn on 03.28.15 at 6:29 pm
“I believe that house prices will decrease but I have no sense that the change will in any way resemble the literal catastrophe of the 1980’s or even the GFC. I would therefore like to see some solid evidence that the credit unions represent a greater risk today than they have in the past.”
Did the credit unions of the 1980s lend up to 97.5% of value?
And even if they were hastily married, that’s essentially saying that they are no longer viable as an independent financial institution… In other words, those ones you mention went “bust”.
C’mon Garth, can’t you just shut this pathetic blog down for one measly hour!!???
It’s Earth Hour, fergodsakes!!
Let the doomers, realtor trolls, moist virgins and conspiracy nuts on here stay in the dark, where they are most comfortable anyway.
No issue. It’s powered by beet juice and weasel droppings. — Garth
I merely reminded you that everyone, including public workers who protect and care for you, plus teach your kids, pay taxes. Go ahead and privatize the cops. See what happens. — Garth
Public workers are necessary, I agree, but they are paid with money raised by government from taxes. My point is that there should be a balance between the number, wages and benefits of public workers and the number, wages and benefits of the private sector workers. My understanding is that in Ontario, this is not the case… but hope I am wrong!
#247 Brucecounty Girl in Ft. Mac on 03.28.15 at 7:10 pm
Is there really something wrong with the Bank of Canada? http://www.theepochtimes.com/n3/1290580-bank-of-canada-faces-lawsuit-for-alleged-imf-conspiracy/
*************** My Response *******
Wow ! Thank You #247 Brucecounty Girl in Fort Mac !
Astounding Evidence that when truth / fact meets conspiracy, Canadians will be seeing how the massive Agenda-21 and International Tyrants ( yes the IMF et al) are well into the process of destroying Western Civilization.
Thanks Mr Turner for the financial blog and a forum putting together the pieces of a truly healthy life, and those elements that can negatively harm humanity.
A Must read link above. Regards All,
You silly ignorant clueless conservatives must feel like fools knowing a socialist country like Norway Just kicked your “conservative” cowboy mad cow eating butts which isn’t that hard to do when conservative are in power. What’s the score? Norway 1 trillion dollars or 1000 billion dollars saved vs Alberta $17 billion dollars. I will put it in mindless terms for the conservative cowboys who still have no idea what I’m talking about. Think of the oil fund as a hockey game. Norway scared 1000 goals and Alberta managed to score just 17 goals. Yes Norway has a much smarter team but to get blown away by 983 goals is embarrassing. That’s the problem is that canadian conservatives are an embarrassment to Canada and the whole world is laughing at how stupid we are. Well done Harper . You to Mad cow eating fools.
Enough, already. — Garth
#226 Washed Up Lawyer DELETED (anti-Leafs-pro Flames)
Haha…as a former season ticket holder & long-suffering Flames fan, I object.
For years, I have reckoned the first day of spring from the moment the TML were mathematically eliminated from the playoffs…
At least Johnny Hockey, Monahan, et al; might get us into the PO’s…fingers crossed…
Btw, is there anyone out there (besides my MIL) who’s still an Oilers fan?
Enough Ham bashing tonight, I need help with my book, doing the final edits. I need to replace “plasma isotopes” with something sexier. Spent two hours at UFG. Exusted and brain drained.
I’m including a few paragraphs , to help you find a replacement.
You will get a magnificent credit with disappearing ink.
……
“Gents, we need shift shape back into our original Vegas faces, get ready to fire up the personal flyers, it’s show time. The mission is simple, we are going to take out area 69, it’s located on the California, Nevada border where highway 15, and highway 164 meet. It’s a secret base disguised as a solar farm.
They are manufacturing plasma isotopes, simular to the fuelcells we use on the mothership. We have to wipe it off the face of the earth, the crater has to be no less than a hundred feet deep.” I said.
“Smokey, I’ve been asking you all week, why now, why the hell do you tell us the mission just now, shit!.” Ashman asks.
“What the hell Ashman I just found out tonight after meeting Krunt at Cheetahs , what did you do man. I need the truth. Shit!, the cops are here. They’re about to come through the doors guns a blazing. Fire up the Flyers now.” I said.
At that moment, our room door is knocked down with a battering ram. Crazed cops who watched too many Bruce Willis movies charged at us with weapons drawn.
We’ve already gone orange plasma ball, one of the cops, the shortest of the lot starts to fire his machine gun first. Then then they all join in. We just float watching them put in clip after clip, laughing our heads off, cracking jokes at the various kill faces on the cops as they squeeze the triggers of their guns. The funniest is the fat one whos skin is experiencing an epileptic seizure, his tong hanging out of his mouth like one of those things you hung from the ceiling in the seventies to catch flies.
Finally, they all run out of bullets. I mean they are stund, don’t know what to do, usually at this point in a killing they call the paramedics and get their stories straight.
They lower their weapons and look at each other and dazzed confussed. I change the shape of my plazma flyer into the shape of a hand, I extend the middle finger then back into a perfectly round ball.
The four of us blast out of the window making an immediate left, flying south on Las Vegas Boulevard.
Couldn’t let this go without comment:
Garth – Almost 100% of a public servant’s compensation is paid for by taxpayers directly through taxes and fees or indirectly through taxes and fees on what we consume. The sad argument that they pay for any part of their benefits is ludicrous. TAXPAYERS PAY FOR THE SALARY AND BENEFITS. The number of public servants and attendant costs (buildings, building maintenance, utilities, security, insurance, office furniture, computers and other equipment, communication services, training, travel, defined benefit pension plans etc. etc. etc. etc. is unsustainable full stop. Non-productive parasitic bloat. It’s a race to the bottom alright, except public servants aren’t in the race – they are spectators.
Such a pack of haters here today. — Garth
“After Target went into receivership the liquidator, not Target, set the prices.”
Did I ever say otherwise? The point was, liquidations of large retail chains have a downward effect and have helped stabilize retail prices in Canada despite the obvious rapid currency depreciation. Now, if/as Target and other chains disappear, over-capacity might not be as extreme in Canadian retail and pricing power (ie: the ability to pass on the forex change) might return.
Then again, Canadian retail is under distress for a reason, ie: consumer demand is falling, and there’s no end in sight for the trend. I predict a lot more distress, especially in the sort of consumption that is HELOC-supported.
True high-end retail, the sort of stuff not supported by the riff-raff HELOC’ing or re-mortgaging their houses, might do okay. But obviously catering to a dramatically smaller segment of the population.
“I would therefore like to see some solid evidence that the credit unions represent a greater risk today than they have in the past”
Credit unions used to be the bastion of prudent lending. Today, at least the one where I live, has a sign prominently hanging in their lobby offering to lend borrowers their down-payment. Without deference to other factors such as the balance sheet, the credibility of management, the relative un-diversity of typical credit union portfolios, etc., just the fact of being an obvious subprime lender is proof enough for me that certain (but not all) credit unions are extremely risky and that provincial regulation is perhaps failing to curtail systemic risk.
No issue. It’s powered by beet juice and weasel droppings. — Garth
…….
On the floor, epileptic belly laugh, its starting to hurt. Think I broke a rib.
I’m my hood, an incredible observation, old farts, all lights on,
The under 35s lights off, and you can hear songs of kumbaya coming from the darkened dwellings.
Wow, your curriculum , and future carbon taxes at play.
House prices are a function of interest rates, public innumeracy and governmental policies such like CMHC insurance, not immigration. — Garth
The. As interest rates rise to around 4 percent or so, then house prices will fall to 2002 levels based on your thesis. But, then you say no crash and talk about a 30% correction.
Just doesn’t add up.
Mr. Turner, according to your logic, we should all get a public servant job and everybody would be happy? Why would we need a private sector then?
I merely reminded you that everyone, including public workers who protect and care for you, plus teach your kids, pay taxes. Go ahead and privatize the cops. See what happens. — Garth
—–
The public sector does not pay taxes. You have to earn private sector money to do that. A govt worker simply takes $1000 in earned tax wages and gives 35% back as so called “taxes paid” when obviously it comes from the same pot of “taxes pool” collected from the private sector.
just saying…..
Tell that to the soldier, the doctor or the teacher. Fool words. — Garth
#272 Spectacle – Big PLUS ONE to that
Always enjoy your humor WUL
Big thanks again Garth for going the distance with this blog.
Great source of information to all
Productivity growth and innovation, what Canada needs the most, comes from the private sector, mainly. If we offer greater pay and security in the public sector, then skills and potential innovation will get squandered.
Non-productive parasitic bloat. It’s a race to the bottom alright, except public servants aren’t in the race – they are spectators.
Such a pack of haters here today. — Garth
——-
Garth move to Vancouver where a family of 4 with a house and car pay 60% in taxes to corrupt, overpaid inefficient govt workers who can never be “voted out” cuz they are not elected. Live here for a year making $60,000 between 4 people and see what it feels like when you know all the nice cars and houses around you are owned by HAM or the public sector and you will never afford anything.
Real easy to talk from the other side of the fence.
Pulling others down will not lift you up. — Garth
@TheAmerican,
Jeezus, if I’d known you were such a grammar nazi I never would have complained about the lack of paragraphs. Whether or not someone has a few grammar mistakes, makes little difference to the reader as long the message is clear. But it is very difficult to read someone’s writing when they do not use paragraphs – that was all I was trying to say.
Go ahead, count the grammar errors. Who cares. Just use paragraphs, please, to make it easier for those of us who can’t parse and chew gum at the same time.
#273 Alberta is FINISHED on 03.28.15 at 9:31 pm
You silly ignorant clueless conservatives must feel like fools knowing a socialist country like Norway Just kicked your “conservative” cowboy mad cow eating butts which isn’t that hard to do when conservative are in power. What’s the score? Norway 1 trillion dollars or 1000 billion dollars saved vs Alberta $17 billion dollars. I will put it in mindless terms for the conservative cowboys who still have no idea what I’m talking about. Think of the oil fund as a hockey game. Norway scared 1000 goals and Alberta managed to score just 17 goals. Yes Norway has a much smarter team but to get blown away by 983 goals is embarrassing. That’s the problem is that canadian conservatives are an embarrassment to Canada and the whole world is laughing at how stupid we are. Well done Harper . You to Mad cow eating fools.
Enough, already. — Garth
————————————————–
Here, here. Foaming at the mouth again.
And if may suggest I hope all blawg dogs could turn on EVERY light in their house to celebrate happy earth hour. None of this commie hiding in the dark crap. Oilberta has been taking it on the chin for a while and some help burning through the surplus oil would be much appreciated.
#283 BlackDog on 03.28.15 at 10:29 pm
@TheAmerican,
Jeezus, if I’d known you were such a grammar nazi I never would have complained about the lack of paragraphs. Whether or not someone has a few grammar mistakes, makes little difference to the reader as long the message is clear. But it is very difficult to read someone’s writing when they do not use paragraphs – that was all I was trying to say.
Go ahead, count the grammar errors. Who cares. Just use paragraphs, please, to make it easier for those of us who can’t parse and chew gum at the same time.
————————————————————-
Would you two just go get drunk somewhere..,.. and see that none of it matters!
#276 As Is Old Man — “The sad argument that they pay for any part of their benefits is ludicrous. TAXPAYERS PAY FOR THE SALARY AND BENEFITS. The number of public servants and attendant costs (buildings, building maintenance, utilities, security, insurance, office furniture, computers and other equipment, communication services, training, travel, defined benefit pension plans etc. etc. etc. etc. is unsustainable full stop. Non-productive parasitic bloat.”
There once was a country called the Soviet Union. It had no private sector; everything was owned by the government. It put the first artificial satellite into orbit, the first man into space, built a fully industrial society and became a global superpower with prowess in the sciences, mathematics, engineering and hockey.
It was not coasting on the remains of an earlier, more productive society. Far from it — at the birth of this nation, its population were mainly rural serfs with 80% illiteracy.
We in the west tell ourselves that this system could not work for long and that its collapse was inevitable, but we sure weren’t thinking that in the 1960s and 70s.
#285 BlackDog on 03.28.15 at 10:29 pm
….
Go get him. Grammer nazias are the pathetic officers of compliance, and suck upedness.
School taught them this and that are important , and that and this are bad.
Slave training masquerading as knowledge, served by slaves who are convinced they own…its paradox of some kind.
The Smoking paradox.
Figure that one out TNT
#269 Karma on 03.28.15 at 8:49 pm
#277 Mark on 03.28.15 at 9:41 pm
Did the credit unions of the 1980s lend up to 97.5% of value?
And even if they were hastily married, that’s essentially saying that they are no longer viable as an independent financial institution… In other words, those ones you mention went “bust”.
==================
No one was lending on this basis in the 80’s. I don’t like it either but I assume all these “no money down” deals are insured by CMHC, so no different from the banks.
Yes, obviously those merged CU’s in the 80’s went bust but when your developer clients wake up one morning to find they have to finance out their projects at 19% and the doctors who agreed to purchase units from them are declaring bankruptcy, some debt crashing was inevitable. By and large the BC credit unions managed brilliantly but I’ll bet their employees from that time never forgot the experience.
#206 Willy H
You’re not understanding the dynamic of this blog.
Let me help you…
Garth is a prolific, consistent and most entertaining blogger. That makes the price of admission ($0) an infinite bargain.
Garth publishes a fresh, stellar post six days a week without fail. Even a shattered ankle last year could barely slow him down.
If that wasn’t enough, he personally moderates an average of two hundred comments a day, many of which are not worth the time it takes to hit a delete key. All this occurs in an ad-free format completely free of financial service solicitations.
This isn’t an ‘absentee host’ forum like VCI. Even there you can’t respond to individual comments.
This blog moves along smartly. If you don’t like today’s post just wait 24 hours for the process to start again. Nobody wants to manage a bunch of irrelevant, stale threads from yesterday or last week.
Every reasonable, civil person is free to ride along but you’ve got to try to keep up. This thing is golden my friend, count your blessings.
#253 Raging Ranter on 03.28.15 at 7:25 pm
“Italians Love Real Estate” should change his handle name to “Italians Love Mama’s Boy.”
Future shop gone
Another big name gone, better lower the rates even more
Get house prices up so people can hedge against their house to gain more spending power.
Yep its like increase a herion addict dose.
How does that usually end. Oh yeah overdose. And a trip to the morg
Inspired by some hockey and great debate on the blog today I’ll try a little Ron McLean.
Get yourself some beet juice, mix in a little HAM and you’ll find the borscht blog in the country right here. Garth Turner and all the weasel stool.
“Productivity growth and innovation, what Canada needs the most, comes from the private sector, mainly. ”
****
I can’t let this go. Please develop some nuance.
What does Canada actually need “the most”?
I vote for education, health care, inter-provincial and international trade, and infrastructure investment. All of which increase productivity. And all of which are funded by the PUBLIC sector, mostly.
*****
Also Garth, thanks for this:
“Pulling others down will not lift you up. — Garth”
Planet # 270,
“C’mon Garth, can’t you just shut this pathetic blog down for one measly hour!!???”
“It’s Earth Hour, fergodsakes!!”
—————————————-
F-that. I turn on every light and appliance in the house, crank the old school 60 lb, Yamaha P 2200 amp to 11, till the lights dim and the neighbors cringe.
Good fun.
#245 Retired Boomer – WI on 03.28.15 at 7:04 pm
I like seeing hard working, smart people get a raise, and there are few who are “smarter” or, work harder than interstate truckers (my opinion only).
=================
I agree. People who think serious trucking is for dummies don’t know much. I have had the pleasure of working with smart truckers and heavy equipment operators. There is a lot to know when you are slamming 60,000 lbs down a public highway without killing people along the way and even more today with ever increasing regulations and time pressure.
I also agree that these guys were making more in real terms in the 70’s. I was surprised to realize that my first real job, punching an adding machine in a unionized factory office when I was 20, paid about $30K in today’s money. Of course, labour had immense bargaining power then. Forget automation, there wasn’t even a lot of power equipment around. If a contractor needed a hole dug, he probably used two guys with shovels, not an excavator. That’s how you get full employment. That’s why the prosperity of those years and the more equal distribution of income isn’t coming back.
Regarding my earlier post #247, I was hoping Garth could take a look at this? If the BoC is in trouble with the possibility of being sued, what kind of implications could this have on our country, our banks?
It’s a non-story with zero implications for anyone, save the nutbar tinfoilers who will end up with big legals. — Garth
Stop all the pummeling of government workers already.
If you have never worked for “government” at any level you are most totally clueless of how it operates. What you see from the outside is much different on the inside.
A teacher has to deal with your kids. If the discipline little Johnny the parents sometimes react that it must be the teacher who is defective. (Sure, sometimes -rarely- I think) that may be accurate. Usually Johnny is just a brat.
The cop the fire fighter out there lives on the line when it is necessary. Happens at your place of work, huh?
I worked for the US Feds. After a year of no raises, I said screw this, I CAN take my retirement, and go. Good thing, as they had 2 more years of no raises. Now I get BIGGER raises NOT to work!! What a country!
Sure it makes no sense, few things in America do. Our private sector corporations pay less effective taxation today than they did in the 1950’s, is that because they are smaller? No, it is because they have wonderful, effective lobbies that affect legislation FOR their benefit. Do taxpayers think like a corporation with effective lobbying, few parts maybe, the bulk no. We just never seem to “see” the bigger pictures of what’s coming next.
Oh well….
Alberta is WAKING UP
Breaking news.
Empty headed, traitorous dope loses Progressive Conservative nomination.
http://calgaryherald.com/news/local-news/danielle-smith-toppled-in-pc-nomination-race-no-regrets-about-floor-crossing
I was waiting for you to weigh in….
FYI, I have worked for the government of Canada. Assume much?
I didn’t know that every public servant is a cop or firefighter putting their lives on the line every day.
#300 Washed Up Lawyer on 03.28.15 at 11:39 pm
Alberta is WAKING UP
Breaking news.
Empty headed, traitorous dope loses Progressive Conservative nomination.
http://calgaryherald.com/news/local-news/danielle-smith-toppled-in-pc-nomination-race-no-regrets-about-floor-crossing
——————————————–
She deserved that. Ridiculous stunt she pulled. Abdicating her role as official opposition..
Meanwhile, the Wildnutters have picked a new leader.. never heard of him.
If I hired Josh to sell my place found out afterwards that I could’ve potentially gotten WAAAAAY more money, I’d be pretty upset. Especially considering the fact that he’s fully aware that his peers are using and proving the efficacy of said tactic successfully.
Immoral? Yes, but not serving your client’s best interests is immoral(possibly more?) as well.
The system is screwed and I have no idea how to fix it.
A Trulia or similar would be a good start.
Wow! Shocked to see my comment deleted? It was not “Abusive, obscene or disrespectful” at all. Not angry just trying to figure out what rubbed you the wrong way?
No deletion. It sat until I reviewed it. Relax. — Garth
What a day. First the ROM seems to have even crazier real estate/reno debt issues than the average house horny Canadian.
http://www.theglobeandmail.com/news/toronto/crystal-myths-behind-the-roms-philanthropic-facade/article23653032/
Then this blog gets weird.
@#209 Daisy Mae on 03.28.15 at 2:37 pm
“Specifically, Richmond. All Asians now. All storefront signs are Mandarin. No English. And this is becoming a serious issue — our two official languages in this country are English and French.”
As a Chinese-speaking immigrant to Canada, what would you have people like me do? Pack up and go home? It is a plus for some of us to be here because we can transact our daily lives in Mandarin. Doesn’t mean we don’t know English or French. Just means that we can also do things in another language if we choose to do so. We can entertain Chinese-speaking colleagues easily. More importantly, colleagues can look after themselves. The fact that you can send a Mandarin speaker (or a speaker of any other world language that you hear frequently on the street), who knows little English, out onto the TTC alone because they can just listen for someone who can give them directions should they get lost is a great perk of being in a multilingual city like TO. So what if a shop sign isn’t in English or French: you can always go in or look through the window to see what they sell, and surely they will sell you something if you want it – likely in English.
And then there’s #271 Dan from Richmond Hill on 03.28.15 at 9:11 pm
“My point is that there should be a balance between the number, wages and benefits of public workers and the number, wages and benefits of the private sector workers.”
So, for example, when Target goes belly-up and the number of private sector workers decreases, whom do you cut? Public school teachers, police, firemen, doctors…, and how many of each??? Your scenario would mean that periods of high unemployment in Ontario would necessarily correspond to a lack of public services, despite the on-going need for those services, and despite the fact that a reduction in the number of people employed in the public sector (to maintain the ratio of private:public sector worker that you suggest) would only exacerbate unemployment.
#261 Daisy Mae
Don’t dismiss the fact that this is CANADA. And in CANADA, we speak English or French. This is a very touchy subject in Richmond, BC…and rightfully so.
– – –
I was stopped at light in Richmond, BC on 3rd last summer with my window down. On the other side of the road a woman in a BMW had been pulled over by the RCMP for some infraction or another. Interestingly, the RCMP officer was speaking Mandarin.
Canada may have 2 “official languages” however that does not prevent us from using another language when the situation requires.
#295 Victory on 03.28.15 at 11:21 pm
I’m all for a solid public sector, funding services and hopefully making good decisions for individuals and business.
I’m not for private sector becoming unable to compete with public sector for talents/skills.
It’s a bit of an extreme comparison, but Wall Street plucked brilliant scientists and mathematicians to become quants and do… Well… Whatever that is. How? Better pay and lifestyle.
And yes, there are motivations outside of money to becoming an innovator or public servant.
When public sector employees are overpaid, it’s important to scrutinize it. Can’t have the inherently better job security, retirement/pension package *and* better pay.
Ralph Cramdown
That’s right. Trotsky describes just how rapid the industrialization was during the early years of the USSR in his work on the history of the Russian Revolution. Also in “The Revolution Betrayed” if memory serves me.
#305 Underhoused on 03.29.15 at 2:09 am
I believe that if you pay public workers with borrowed money, sooner or later you will have a problem.
#238 Henry on 03.28.15 at 6:07 pm
I’m curious how everyone with all their capital invested in stocks and bonds, GICs, etc. will be doing when they start going to negative interest rates in Canada and the United States as they are now doing in Europe. That’s right folks, negative interest rates are coming, get ready!
——————-
No offense, but you’re a clown. If you’re so sure interest rates are going negative then obviously you should be backing up the truck on bonds – the capital gains would be amazing. Yet you’re questioning how current bond holders would feel in that situation. Clearly you know the sqrt of F all.
of topic, but interesting read
http://techcrunch.com/2015/03/24/tech-bubble-maybe-maybe-not/
Well Stalin had to kill 20 million of his own people before everyone ‘agreed’ to this vision.
Also, let’s not forget prison for thought crimes, slavery, starvation, poverty for the majority of the population.
I wouldn’t say that the soviet system is the best example if you want to sell us on a strong public sector.
Especially since a lot of Canadians are first or second generation victims of this system that literally enslaved half of Europe.
Black Dog…
I did not know that a sentence could never, ever start with a conjunction! And to think that I did not learn this after 6 years of post-secondary education in Canada, is horrifying. Ooops. I did it again. Old habits die hard I guess. Oh well, at least I know what a paragraph is.
You forgot to indent the first sentence!
#276 As Is Old Man on 03.28.15 at 9:35 pm
———————————————————
You’re always welcome to move to a country without organised government, including Somalia and the Western Sahara.
#230 WASHED UP: “Next time you are in Richmond, park your car, take a walk, poke your nose into the various shops, be greeted by a graceful and industrious proprietor…”
***********************
I was referring to stores signage. I’m sure the stores are interesting…and the people friendly.
Richmond is not an island unto itself — it’s part of Canada. And Mandarin is not one of our official languages.
#268 Ralph: “It took BC a long time to reconcile itself to French. As recently as 2003, fewer than half there thought their province should be bilingual.”
***************
I read somewhere long ago that a mere 2% of BCers actually speak French. And, that is why.
#267 not me on 03.28.15 at 8:39 pm
“Using credit card doesn’t imply anything. Many do it out of convenience and pay the full balance when due. I have. Stopped carrying cash years ago.”
Hookers and drug dealers don’t take Visa. You can always get better deals with cash.
@ #288 Ralph Cramdown:
SOME of use WERE thinking just that in the 1970s. And we were right.
#306: “Canada may have 2 “official languages” however that does not prevent us from using another language when the situation requires.”
********************
Canadians can talk any language they want to. Who gives a damn?
I’m talking about Richmonds’ STORE SIGNAGE. Omitting English on store fronts shows disrespect to Canadians who do not speak Mandarin. Which, of course, is the vast majority of us.
On the other hand, North Korea has an organised government and I wouldn’t want to move there either.
#306: “Interestingly, the RCMP officer was speaking Mandarin…”
****************
He’d have to know Mandarin, since that is the language spoken thruout Richmond.
I really wish we had some information on the impact foreign money is having on this market. I have a copy of a newsletter we received from our realtor a few years ago. She is one of the highest volume realtors on the westside (group of 4 realtors). In the newsletter she said that 78% of buyers of detached homes were mainland Chinese represented by their own realtors. This was in 2012. Why do we still have no reasonable data that looks into foreign ownership and it’s impact on the local market?
#312 CalgaryRocks — “I wouldn’t say that the soviet system is the best example if you want to sell us on a strong public sector.”
I’m not trying to sell anybody on anything. But for people who believe that the public sector is a parasite which needs a healthy and much larger private sector to feed from, I’m providing a history lesson.
re: Public Servants
Look at it this way. Government and government workers are necessary and they do good work at keeping us safe and all that.
A house is necessary too, yet when we say, buy a house that’s 3x your income or rent, most people agree. At least here.
Nobody says, move to Somalia and live in a hut if you don’t want to buy that 2M$ Vancouver bungallow.
So it should be with the size of government. Have a government that is necessary and that we can afford.
Government institutions should be free to get rid of people that are useless just like private institutions.
And nobody should say, either like overpaying for something or move to Somalia.
#299 Retired Boomer – WI on 03.28.15 at 11:34 pm
Corporations don’t pay taxes, the consumers do.
That’s like saying you don’t pay taxes. Your employer does. Spurious. — Garth
Communist Canada
I often get pissed waiting an hour or two for my laugage at yyz.
But your on a plane, it crash lands in Halifax , then you got to wait an hour for anyone to show up.
Guess should just be happy they only lose my luggage luggage. Once every 10 flights.
@322 Lm
The only way we will get meaningful data from the government is to write a sufficient number of letters to our politicians and policy makers to demand it. Although we vent our concerns on this blog, unless enough of us write letters to our politicians voicing our concerns we are voiceless. I have written to the finance minister and my MLA. Have you? Just cut and paste your blog submission in an emails and send it to as many politicians and policy makers as you can list and if we collectively do so, something will hopefully come of it.
English, Chinese, French……. Whatever
At Metrotown, drop off neighbours mother to shop (she speaks only Mandarin) Wife speaks bumpkin dialect of Cantonese, I speak bad English exclusively.
Take”first Aunt” to Save-on-foods, try and decipher/explain meet up conditions.
Uh Oh. not going well, Need enigma machine……….
Find Asian employee in store with Wife/ “First Aunt” in tow to get code broken
Quickly (via 3 party trilingual summit) Determine location and time for meet up to drive everyone home.
I see quizzical look from Mandarin/English/Cantonese employee, as in, why cant you (wife) speak to your mother? Explain situation, much hilarity ensues.
Assumptions…we all have em
I’m talking about Richmonds’ STORE SIGNAGE. Omitting English on store fronts shows disrespect to Canadians who do not speak Mandarin. Which, of course, is the vast majority of us.
Maybe the vast majority of their customers don’t read English.
Who cares about the ‘vast majority of Canadians’ who don’t shop there?
Sorry Garth , my hate for conservatives grows by the day. Its to bad as a conservative myself I understand that the Harper conservatives is anything but conservative. The only conservative worth voting for is you .
#326 Smoking Man on 03.29.15 at 11:11 am
Communist Canada
I often get pissed waiting an hour or two for my laugage at yyz.
But your on a plane, it crash lands in Halifax , then you got to wait an hour for anyone to show up.
Guess should just be happy they only lose my luggage luggage. Once every 10 flights.
Oh for shame. Every flying mishap is the result of communism. Poor dear.
And I was waiting for the next installment of the story of our alien overlords. Just panting for the hot, shiny, lycra-clad alien dominatrices to make their appearance…
BTW “Plasma isotopes” = “incandescently hot gas” – weirdly reminiscent of a lot of the emanations here :-)
http://www.businessinsider.com/i-achieved-the-american-dream–and-it-was-awful-2015-3
@Lm
Who cares about stats for the westside of Van (Shaughnessy) or West Vancouver. Doesn’t matter where you’re from you need big money. These areas have always, since I can remember attracted wealth. Especially above the highway in West Van in the British Properties. Incidentally the Guinness family is developing a swath of land in their British properties holdings which they bought way back when for peanuts. This will attract more wealth. In a nut shell these areas are exclusively for the rich, local or not. These areas have always skewed the average, probably in this crazy environment caused other areas to remain high because of realtor propaganda. “Buy now or never”. “There not making anymore land” the Guinness family evidently is.
Cheers.
# 322
Why do we still have no reasonable data that looks into foreign ownership and it’s impact on the local market?
———-
It’s a political hot potato.
Why would politicians be interested to face inconvenient questions and potentially explosive social tensions if it all can be kept under the rug simply by obscuring data?
I can’t blame them, history proves that things can get out of control fast, shedding all civility and common sense or turn into tragedy.
FUTURE SHOP stores = Mass closing of stores !
Listen; the Canadian economy is going down quickly just like the Titanic. Jobs will be lost an a massive scale. So how will housing be able to keep prices up when so many people will be losing their jobs in the new coming recession? I know that the only sectors holding up the Canadian economy right now is the consumer and government sectors, and that is retail jobs, construction jobs, and government jobs. The government cannot hire any more workers so that’s out of the question. The retail sector is dying a slow death. So the only thing left is home and industrial construction. I just went to a photo developing store here in Kitchener, a place I never went to before, and I got lost and found an industrial mall with over 40 huge and ‘FOR LEASE’ industrial buildings, each one of them multiple times as large as a typical ‘Future Shop’ store, and all of them empty for at least the past 4 years. I was blown away, so much available space, so little demand. It’s like those Chinese Ghost City videos you see on YouTube, except its right here in Canada. So my thought is that the Canadian government will be doing whatever is needed to keep the real estate party going full steam, including practically anything and everything possible. That will suck in the last 5 or 10% who have not yet bought houses, and when those are gone and in debt up to their eyeballs also, then that is when our economy will finally crash as there won’t be anyone else to consume what is left to buy out there.
@ CalgaryRocks
I wouldn’t go that far and say that people in eu are enslaved, Europeans do pay bit more tax than we an average, but I can tell you that Europeans do have lot more vacation time and FUN than we here.
Talking about enslavement here, Mrs. NoName made sunshine list, and on top that of I am collecting welfare*… nothing like god old fashion capitalism.
(i am secretly reading sadomazo man’s posts, and i can tell you, it is paying-of in spades).
Problem here in Canada is that people don’t understand difference between noun and adjective. tell me, what is the difference of word “liberal” is used as a noun or adjective.
vote PiCi on next election or even better, vild rosse!!!
#don’tsteemmysunshine
https://youtu.be/E1fzJ_AYajA
#Ain’tNoSunshine
https://youtu.be/tIdIqbv7SPo
#WalkingOnSunshine
https://youtu.be/CKh0dLIuIu8
*
I would rater be gainfully employed that welfare recipient!
Pardon me Blackdog, should have written, “they’re not making anymore land.” Not, There.
To the grammar police my sincere apologies.
Cheers.
#231 Alert to Canadian homebuyers
Wishing for a recession to “teach” the mass….
I guess a recession would not hit you too hard, would it?
” you are NOT entitled to any more notice than what labor law requires[..] it is called capitalism”
Try to imagine a world where nobody would get or give anything more than what they entitled to. Sound a lot like Communism to me.
You seem to imply that in capitalism consumers act rationally and go for the cheapest, and then you proceed to mention the Real Estate market that’s been irrational for while… It’s not that simple.
Many factors are involved in consumer decision, and brand image is certainly one of them.
Australian tax on bank deposits in federal budget to raise $500 million a year
Reported by: `Customs Today Report March 28, 2015
CANBERRA: The federal government is planning a tax on bank deposits at the May budget in a move that will raise about $500 million a year but which bankers warn could be passed on to customers.
http://customstoday.com.pk/australian-tax-on-bank-deposits-in-federal-budget-to-raise-500-million-a-year/
Maybe not exactly negative interest… but headed in that direction.
#334 – I’ve never understood why we as a society are perfectly accepting of limits to foreign ownership in business but are afraid to even look I to foreign ownership when it comes to personal real estate.
It is absolutely not a race issue imo (though I will admit I’ve seen some awful vitriol from people who think it is). It’s an economic argument. People living here, earning an income here are being forced to compete with incomes from all over the world. Places where they cannot earn an income.
At the very least, we should be measuring that impact. Maybe the impact is small, maybe it’s huge but the point is why don’t we have any idea!? It’s insane to me.
regional centres/ EB-5program
Many foreign investors seek help from 617 Immigrant Investor Regional Centers in the US to identify projects that qualify for the visa program. The investors are often under the mistaken impression that the centers are sponsored by the government. In fact, although they need government approval to get the “regional center” designation, they are private, for-profit operations.
The Securities and Exchange Commission and the US Citizenship and Immigration Services have jointly said they have no “view on the quality” of the investments the centers are promoting.
us china economic and security review staff research report February 26, 2015
http://www.uscc.gov/
http://origin.www.uscc.gov/sites/default/files/Research/Ch%20invt%20paper_2%2026%2015.pdf
http://www.thestandard.com.hk/breaking_news_detail.asp?id=57770
http://www.scmp.com/news/china/article/1725321/green-card-schemers-out-dupe-chinese-investor
see-Northern District of Illinois, “Chicago Man Allegedly Exploited U.S. Visa Program to Defraud ChineseInvestors of $160 Million in Purported O’Hare Complex,”Justice Department FBI Press Releases, August 27, 2014, via Factiva; Peter
Elkind and Marty Jones, “The Dark Disturbing World of the Visa-for-Program,”
Fortune, July 24, 2014http://fortune.com/2014/07/24/immigration-eb-5-visa-for-sale
@lm
“People living here, earning an income here are being forced to compete with incomes from all over the world.”
Compete for houses only. In expensive areas that have always been expensive even to locals. If there were no foreign investors you can bet your bottom dollar that a The British properties and the Westside of Vancouver would still be out of reach for most Vancouverites. They would be bid up by locals. The low interest rates and CMHC has enabled Vancouverites of average income to believe that they can actually afford a big mortgage. Stop buying overpriced houses Vancouverites and see which direction the inventory goes.
See where prices go with a soaring inventory.
Cheers.
#328 Rainclouds on 03.29.15 at 11:45 am
English, Chinese, French……. Whatever
At Metrotown, drop off neighbours mother to shop (she speaks only Mandarin) Wife speaks bumpkin dialect of Cantonese, I speak bad English exclusively.
………..
Hahahaa bumpkin dialect.
We’re always scrambling for translation at work. One of our colleagues is a language Goddess. She is from Malaysia. Cantonese,Mandarin,Shanghaiese… you name it, she can do it. I’ll have to ask here about Bumpkin lol.
I always feel tougher when she’s working beside me :)
Income inequality is actually about housing.
https://medium.com/the-ferenstein-wire/a-26-year-old-mit-graduate-is-turning-heads-over-his-theory-that-income-inequality-is-actually-2a3b423e0c
East Van?
– dirt, prostitutes, drug dealers on every corner