The entitled

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Yesterday #DontHave1Million flitted through the Twittersphere one day after a 29-year-old named Eveline created it. Suddenly all kinds of people were posting selfies holding signs saying things like, “DontHave1Million, Manager, 30” and “DontHave1Million, Sprinkler Fitter, College Diploma, 33” and “DontHave1Million, Double Major Sociology/Visual Arts, Film Worker. Plus my Landlord just sold House for $1.86 million. Now I have to Move.”

You get the drift.

It took about forty seconds for the Tweet barrage to turn into a mainstream media headline and story, with a nice pic of Eveline (who says she is an ‘environmental professional’) which helped shove the whole thing to the next level. “Don’t have $1 million for a home,” it said, “Join the club.”

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Of course it took about 30 seconds more for an enterprising realtor from Prince George, where open metrosexuality is a crime, to Tweet that PG is affordable. So come on up! The odds are this will all die out in a few days, and the uber-educated kids will go back to behaving properly as baristas and child care workers.

Nonetheless, this is an interesting Canadian thing. Kinda like the #Occupy movement, but in reverse. The 99% crowd who stormed Wall Street and other financial capitals around the world wanted to Eat the Rich and railed against the growing income disparity around us. The #DontHave1Million kids actually want to be rich, and think they’re entitled to buy a $1,000,000 house. The overriding reason for this seems to be (a) they went to school a long time and (b) they’re clearly special. Mom said so.

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On Friday I spoke with a couple who have $72,000 in liquid assets, most of it in RRSPs, a combined income of $125,000, are in their mid-30s with two kids (five and three) and have just been approved by a major bank for a mortgage of $800,000. They were moaning. “Do you understand how few houses there are for sale for $900,000,” she asked? “This is simply not fair. There is nothing decent or in a neighbourhood I’d let my kids run around.”

I patiently explained that putting all of their net worth into a house, plus taking on mountainous debt, was completely irresponsible. In 15 years when the kids need gobs of money for schooling, and they’re both over 50, they’ll still be struggling with a mortgage so fat it prevented them from saving. Of course by then rates will have normalized and house prices likely retreated. Hard to imagine a worse potential situation – all to get a house they feel entitled to.

So on Friday we got the latest cost-of-living numbers. Core inflation surged higher in Canada, largely because of a weak dollar. This is what I told you would happen after that central bank rate cut in January. The core inflation rate is now 2.4%, right in the 1%-to-3% zone established by the Bank of Canada.

So what?

So no more rate cuts here, unless things really hit the fan. But with oilsitting above $55, the dollar recovering to 81 cents and the latest jobs report showing surprising gains, the worst might just be behind us. That also means you’re currently enjoying the lowest mortgage rates of your lifetime.

Meanwhile US inflation has risen for a third month, along with consumer confidence. In fact, more jobs have led to wage pressures, which could be behind an increase in consumer prices. Core inflation is 1.8%, on its way to the 2% target set by central bankers.

So what?

So the odds are still overwhelming the Fed will raise rates for the first time in six years in a few months. That was one reason the Dow shed 280 points on Friday, since markets don’t like tighter monetary policy, which raises the cost of doing business and eats into profits. Higher rates for bonds (they’re coming) also creates competition with stocks, since investors can get a better yield with no risk.

Now what does this have to do with #DontHave1Million?

Everything.

All the self-serving bodies (Vancity, Re/Max, Royal LePage) forecasting prices will bloat far more in the next few years are wrong. Ditto for the realtors who have been trying to scare people over an invasion of horny Chinese or panting Americans. Ain’t gonna happen. Same goes for those who tell us central bankers will never raise interest rates, and soon banks will be paying people to buy houses. Nuts.

You’d think 30-year-olds who spent more than two-thirds of their lives in school would have figured this out. But I guess they skipped that bit in sociology and films arts classes. Truth is, mortgages will cost more next year and houses will cost less – pretty much everywhere. Those who take on massive debt now to buy at the top of the cycle will long regret it.

Nobody, after all, is entitled to a house. Getting a university degree doesn’t guarantee you to a six-figure salary. And maybe these virgins will have to do what so many in the past have done – move to the burbs, find a starter home sans granite or (horrors) get a job in PG.

Better still, get ready for what’s coming, and invest in financial assets. On Sunday I will give you the first lesson. Tweet that.

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322 comments ↓

#1 zedgt87 on 04.17.15 at 6:11 pm

Garth I think you completely missed hte point of #donthave1million

“The #DontHave1Million kids actually want to be rich, and think they’re entitled to buy a $1,000,000 house.”

I think they are showing that despite being successful professionals they are priced out of the housing market and how sad/ridiculous that is.

The professional communication consultant is right, vancouver needs young professionals like her. But a basic house costing way over a million is a sure fire way to drive out the youth and the future.

You missed the point.

You believe being a young professional and not being able to afford a detached house is in the priciest city is “sad/ridiculous”? I don’t think I missed a thing. — Garth

#2 ILoveCharts on 04.17.15 at 6:17 pm

Are we witnessing a huge inter-generational transfer of wealth or are we witnessing one generation set up their kids for failure. My parents didn’t give me any money – hoping that somehow helps me come out on top of this.

#3 Anthony G on 04.17.15 at 6:17 pm

As a millenial, I may not be able to afford a million dollar home

I rent and save

What else can you do? … I don’t understand why people complain about things they control in their own life

#4 Randy on 04.17.15 at 6:18 pm

40 years of teaching socialism and self-esteem has really paid off in Canada.

#5 LazyJason on 04.17.15 at 6:20 pm

So it would be wrong to tweet #have1millionwontbuyahouse?

#6 Smartalox on 04.17.15 at 6:22 pm

I’m a young, expensively educated professional, and I #donthaveamillion either. I have about half that so far, invested, and I’m pretty satisfied with that.

Of course I also #donthaveamilliondollarmortgage.

But a hashtag like that would just be #ridiculous.

#7 Leo Trollstoy on 04.17.15 at 6:23 pm

I think they are showing that despite being successful professionals they are priced out of the housing market and how sad/ridiculous that is.

Why is that ridiculous?

Why should they be able to afford a property at any price?

#8 mark on 04.17.15 at 6:24 pm

Prince George smells funny and you have to avoid the game tight soldiers.

They’re kinda on the right track though, but they just need to take it further and move. If a city can’t find nurses, school teachers, police officers, firefighters, the garbage man etc because they’ve moved away, that city’s in a little bit of trouble.

#9 Leo Trollstoy on 04.17.15 at 6:24 pm

I think they are showing that despite being successful professionals they are priced out of the housing market and how sad/ridiculous that is.

Why is that ridiculous?

Why should they be able to afford a property at any price?

Garth is dead on. Again.

#10 everythingisterrible on 04.17.15 at 6:25 pm

They aren’t complaining about their salaries, they are complaining about the cost of housing – you write a blog everyday in essence, doing the same thing.

#11 Bobs ur uncle on 04.17.15 at 6:25 pm

Even at 2.5%, 800k mortgage over 25 years is almost $3600/month – not counting taxes, utilities, and all the money you’re going to pay for maintenance on your sh*t-shack. And you make 125/year? That’s CRAZY!! Don’t do it!!!! You are signing up to be someone’s slave for the rest of your life. Sad really.

And to the banks (and credit unions) giving out this money like it’s candy – no sob stories when it hits the fan okay? Our eyes are wide open.

#12 Iceflows on 04.17.15 at 6:26 pm

Hilarious! I just got a job transfer to Prince George!
I requested a transfer largely because living in Vancouver is overrated and expensive.
It’s not just houses, everything is more expensive. Taxes, insurance, housing, transportation. All that would be okay but, the wages are the same or lower. This is because employers in Metro Vancouver are assuming that the weather here is part of the compensation package.
I will save almost $1000 a month on rent!
Vancouver doesn’t need you nearly as much as you think people. And if you aren’t mobile then the decision makers don’t care what your problems are because you have no bargaining position.
Until people start pouring out of the metro in numbers that matter and employers can’t hire qualified people for what they afford nothing will change.

And, Garth is right. People think that because they spent a few years in post secondary society owes them soemthing. Sorry folks, it’s the other way around. You owe society for the years of subsidized schooling, time to pay up (even if you don’t get paid what a school counsellor said you would.)

#13 juno on 04.17.15 at 6:27 pm

I do have several million of liquid assets. And Don’t Want a freakin house at this price

It’s too costly and will bit into my early retirement!

#14 Justin on 04.17.15 at 6:28 pm

I never understood why people from big cities feel they are too good to move more than 4 blocks from where they grew up. Move to where the jobs are and buy a house where you can afford it!

#15 Heisenberg on 04.17.15 at 6:29 pm

I have no sympathy for these entitled whiners. You can buy a house in North Surrey for $300K. Yes, a house. It will be 50 years old, and a fixer-upper. But you’ll get at least a couple of bedrooms and a roof over your head. You can walk to the skytrain in 5 minutes. God forbid you might actually have to lift a finger to do some repairs or painting around the place.
Instead, they’d rather whine, keep buying $6 lattes daily, dinners at restaurants 3+ times a week, $200+ a weekend on bars/booze, and insist that they actually have to live in the Vancouver core. Riding the skytrain for 30 minutes is too much to ask of them.

#16 PM on 04.17.15 at 6:31 pm

I know it’s fun to slag millenials as entitled but not everyone is saying they deserve a million dollars or should be able to buy a mansion in the Westside. They’re saying they’re angry that’s what it takes to buy even a lousy home.

And there’s every right to be angry. It doesn’t mean they’re entitled. It means our governments have failed us. At the national level the central banks and the CMHC have made sure that anyone with a pulse and an income statement can be approved for loads of cheap debt. Municipally the city has made sure to keep property taxes low so that developers and speculative investors can keep low carrying costs while trying to turn a profit in a juiced market. They know that the only ones who vote in lowly municipal elections are old fogies sitting on paper fortunes waiting to cash out when the market shows the first signs of cooling so they keep the cost of maintaining that dirty cheap.

Housing is an important part of life and expecting legislators to use their tools to keep it a rational market isn’t being entitled, it’s what we pay fucking taxes for.

I make a six-figure salary and have 3 times my annual salary in savings invested. I’m in the top 20% of earners my age. I don’t think I should be able to own an SFH in West Van, that’s fine. However something is pretty out of whack when I can’t get a decent attached condo/townhouse over 1000 sq ft without going into a debt range that would be inadvisable. Even renting that place is going to cost $2500+.

That’s not entitlement, that’s a overcooked market and it sure as hell isn’t my fault so a little resentment shouldn’t be scorned. It should be recognized as a failing of our leadership to create stable economic conditions.

#17 PM on 04.17.15 at 6:33 pm

>Why should they be able to afford a property at any price?

Because a thriving middle class is what keeps nations at their most productive and housing affordability is part of that.

We’re going backwards in terms of income equality.

#18 TS on 04.17.15 at 6:33 pm

Garth,

I’m not a big believer in HAM, but how do figure that Ottawa, the land of defined benefit pensions and government jobs, has house prices that are $400,000 cheaper and $600,000 or more cheaper than Vancouver?

The suburb I live in has an average family income of $115,000 and the houses are still mojo cheap for the most part.

What gives?

#19 not 1st on 04.17.15 at 6:34 pm

Well the business owners in Guangzhou do have a million and don’t care about the little signs you are holding.

#20 dosouth on 04.17.15 at 6:34 pm

If I had a million dollars…..I’d think I was (insert here). This seems to be the mentality and surprise, where are the “Boomers did this to us” and where is it written that a degree, of any kind, defines what you make?

Most of these “professional students” are just that, students that, like apprentice plumbers, electricians etc…need to earn their stripes. Oh no, mommy said I don’t have to and you’re too old and should go off and ……

#21 Bill Gable on 04.17.15 at 6:36 pm

I wish I had a twenty, for every occasion one of my younger friends has complained that they can’t afford a home, in Dampcouver.

Excuse me, but, my Dad, a Career RCN Officer (and Corvette Navy Vet), couldn’t afford to buy a modest home, in Ottawa, until he was in his late thirties.

No one was whining in 1961, that you actually had to (GASP), save and invest, to finally afford a home.

Now?
Work?
Too busy on moi’s stylish $1,000 iPhone 6S, posting selfies to Instagram to worry – but “waaaaaaa, where’s my splashy home”?

It just astounds me that this pathetic blog has basically given everyone a roadmap though this economic minefield, and people are still full of house lust.

People’s lives have to be pretty empty, if their existence revolves around granite countertops.

#22 crowdedelevatorfartz on 04.17.15 at 6:40 pm

@#12 Iceflows

Its name isnt “Prince George” or “Pee Gee” as the locals would lead you to believe.

Its affectionately known as “Pigs Gorge”.

#23 PM on 04.17.15 at 6:40 pm

The “1,000,000” is flashy for PR (cause a million is big number right?) but it’s not saying everyone should be able to buy a house.

The problem when houses are a million is that townhouses are $750K, 2 bed apartments are $600K and 1 beds are $400K. A million just represents the top of the chain but the bloat of pricing is found in the entire market. Some of these folk are just mad that they can’t buy a one bedroom condo with an average salary ($60K). That sounds reasonable. I think that’s wrong too. That’s what one bedroom condos should be for, 26 year olds who want to live in the city and cram themselves into 500 sq ft.

The point is that the market is over inflated and that affects the generation that is of age to typically enter the housing market. The market is inflated because the government let people go stupid with money and if the bubble bursts everyone will pay for it, even those with a diverse portfolio, as they follow the tide.

It’s justifiable anger.

#24 Mama Bear on 04.17.15 at 6:40 pm

My 31 year old daughter just bought her first home in Brantford. A 2 year old end unit freehold townhouse, 3 bed, 3 bath for 246,000. They were asking 249,999. No bidding war and she included conditions on financing and a home inspection. No granite. She works full-time at home so there are no commuting issues. Mortgage and taxes will add up to the same amount as she was paying to rent a 1 bed, 1 bath in Toronto.

#25 Nick on 04.17.15 at 6:41 pm

All this really shows is that people should leave Vancouver.

#26 Sebee on 04.17.15 at 6:42 pm

I propose,

Ihaveamillion
38
Still don’t want a house.

So funny…1st world problems.

#27 Goldie on 04.17.15 at 6:42 pm

Tweeting selfies of oneself holding a sign that says, “don’t have one million” is just so … ridiculous.

#28 james on 04.17.15 at 6:49 pm

37

“Why should they be able to afford a property at any price?”

What do you mean?

Do you mean that the fact that 30-something professionals cannot afford to buy dwellings in Vancouver is not a sign of unaffordability?

I should wager that when the median family income is insufficient to purchase more than 5% of dwellings, there are problems afoot. Hence the dismal savings rate in BC, negligible retirement contributions, etc etc.

#29 Former Vancouverite on 04.17.15 at 6:54 pm

More people should leave the Lower Mainland and move to places like PG and Smithers. If you have an education, work experience and motivation you will do fine. Yes it’s hard to start over in a new town, but there are many, many young families in the same boat. Your friends become your local family. Then, when you really want to see your “real” family, you just cash in your travel reward points and it costs you $150.00 to go shopping in the city. Housing is cheap, you can walk to work and you’re never more than 10 minutes from the kids school. I wouldn’t go back to the madness in Vancouver.

#30 S.Bby on 04.17.15 at 6:54 pm

The only reason people want houses is because every one else wants houses. Wait until this sentiment changes and we’ll see what happens.
And Prince George? Oh the horror!

#31 worth repeating on 04.17.15 at 6:57 pm

#4 Randy

40 years of teaching socialism and self-esteem has really paid off in Canada.

********

Everyone’s a winner!
Until life happens and they’re not.

Plenty of new beaver barf boxes (townhouses and low rises) going up in Langley, East of 200th.. not sure how many units need to be filled but I suspect hundreds.

The posh Vancouver babies can move there and recreate themselves a nice kommune-ity.

#32 T.O. Bubble Boy on 04.17.15 at 6:58 pm

#DoHave1Million #WorkedHardAndSaved

#33 Henry on 04.17.15 at 7:03 pm

How ridiculous is it to expect to have a million at 30? If you are a professional and only got a bachelors degree you probably graduated when you’re 23. Say you had no student loan debt you would need to earn $230000 per year in BC to have a million in after tax income in 7 years. I mill after 17 years is attainable on a $75K average salary but these days bachelors degrees wont get you that much.

#34 SI2K on 04.17.15 at 7:04 pm

Time to stop bashing the liberal arts. See the backslide in race relations, gender equity, and general human decency we’ve had during this long economic slump? Humanities and social sciences cuts, full stop. That’s why they’re called, you know, the humanities. We help make people into decent human beings. We can also have jobs, economic sense, and sometimes even a million dollars. Generalize not.

#35 pete on 04.17.15 at 7:05 pm

zedgt87 on 04.17.15 at 6:11 pm
Garth I think you completely missed hte point of #donthave1million

“The #DontHave1Million kids actually want to be rich, and think they’re entitled to buy a $1,000,000 house.”

I think they are showing that despite being successful professionals they are priced out of the housing market and how sad/ridiculous that is.

The professional communication consultant is right, vancouver needs young professionals like her. But a basic house costing way over a million is a sure fire way to drive out the youth and the future.

You missed the point
____________________________________

I think garth missed the point. The point is even though they make a very good living wage they still can’t afford to buy what deadbeats with no educated or money were able to buy in 2006. Those who foolishly /lucky to buy into the housing ponzi before it exploded into an unaffordable ponzi scheme. Thanks to CHMC Canada is at the point of financial ruin when the ponzi crashes down since risk isn’t priced right . Remove CHMC and see where interest rates would be. Remove CHMC and see how much banks are willing to lend. People @ #donthave1million want FREE MARKETS but realtors, mortgage brokers and every other leach in the FIRE industry hate free and open markets. I think Canada hates free markets. Is it fair that people with NO MONEY or JOB were able to buy and gamble on housing while those who are educated and good job and or savings still can’t afford a house?

#36 Spiltbongwater on 04.17.15 at 7:10 pm

Easy for a person from Toronto to say we should move to Prince George. #Donthave1millionwontmovetoPrinceGeorge

#37 next year.. #didnotlose1millioninYVR !! on 04.17.15 at 7:17 pm

Seriously, are these kids for real? Shit is about to hit the fan and they’re crying because they cannot buy a million Dollar property in Vancouver?

This is for their own protection! Many who are loading up at these levels will choke on the debt load.

What do they think will happen? That the banks will forgive the debt and let them keep their houses when they can’t make the payments for whatever reason?

And when the whole enchilada does turn South, the same kids are going to cry some more?

Seriously!

#38 I'm stupid on 04.17.15 at 7:18 pm

These stupid donthaveamillion people will look back at this and shake their heads in 20 years. If housing corrects 95% they still won’t buy because they only want what they can’t have. It won’t be cool to own a home if it’s losing money. Lol

#39 ShawnG in TO on 04.17.15 at 7:18 pm

@zedgt87
you are wrong. you are the one who is missing the point.

I think those who tweet #donthave1million are pathetic.

Start with the tweet itself. who is it for? got rich friends who can make you a millionaire? ok fine. Is the tweet for the government? what you want them to do? outlaw expensive houses? is it for mom?

why do these kids think they are victims? instead of wasting time on that tweet, perhaps it’s better to think about how to make yourself worth 1 million dollars (or more) ? Perhaps more efficiency? more training? job at a different company?

Think about what Garth said. Why do these kids think they need to buy a million dollar home? what is wrong with renting? rent,save, and invest. It’s an easy combination to grow your net worth.

have patience. if you are a real professional as you claim to be, then it’ll all come to you.

Of course, iPhone S+ upgrade, 100$ monthly plans, eat out everyday and exotic annual vacations does not help. But that’s what they think life should be like.

what can i say? stop watching your expensive screen. welcome to real life !

#40 Suede on 04.17.15 at 7:21 pm

OMG PG? That’s like living in lillooet except they have an Earls

Just bc you’re a professional doesn’t mean you’re entitled to own a house in Vancouver.

#nailedit

I went to school for 5 years. Good degree for a good income.

Wasnt till I got educated in the real world that I made greater money.

Oh universities, still selling dreams and useless credits. You want to make money. Trade that communications and business degree and learn to be a power line technician. 18 month’s of school and you will make six figures in a year. Guaranteed. As long as you want to work OT in butt f* nowhere.

Next Ppl will say that’s not fair they have to work longer hours for more money.

Ugh, Ppl

#41 zedgt87 on 04.17.15 at 7:21 pm

#35 Pete:

“I think garth missed the point. The point is even though they make a very good living wage they still can’t afford to buy what deadbeats with no educated or money were able to buy in 2006. Those who foolishly /lucky to buy into the housing ponzi before it exploded into an unaffordable ponzi scheme. Thanks to CHMC Canada is at the point of financial ruin when the ponzi crashes down since risk isn’t priced right . Remove CHMC and see where interest rates would be. Remove CHMC and see how much banks are willing to lend. People @ #donthave1million want FREE MARKETS but realtors, mortgage brokers and every other leach in the FIRE industry hate free and open markets. I think Canada hates free markets. Is it fair that people with NO MONEY or JOB were able to buy and gamble on housing while those who are educated and good job and or savings still can’t afford a house?”
__________________
Exactly! If your educated professional middle class can’t afford even basic housing in your major cities you got problems. That is what this hastag is all I about. Garth completely missed it, but of course his ego prevents him from seeing it that way.

You wee doing fine until you allowed the ad hominem comment to make you sound like a churlish youngster. Better work on that. — Garth

#42 Scully on 04.17.15 at 7:21 pm

Wow, that’s so pathetic. But hey, that’s the herd. Everyone complains about how expensive this mouldy city is and how crappy the commute is anywhere, but there seems to be a genuine anxiety about being mobile. I can only think that the two strongest emotions are at play…fear and greed. Either that or snow “flakes” don’t drift far from their parents. So my question to you Garth is since I can’t afford a 1 mill house should I buy an iPhone 6?

#43 Smoking Man on 04.17.15 at 7:22 pm

Supply and demand bitches.

Understand this, exploit it, and you will have many millions.

Its so easy , but your programming has screwed you up.

#44 Mark on 04.17.15 at 7:22 pm

These youngsters should spend a little bit of time studying history and the markets. Youngsters (at the time) who took a modest housing downpayment in 1990, invested it in a TSE/TSX index fund (ie: the TIPS) — by the end of the decade, with the combined effect of a tripling of the market, re-invested dividends, and a reduction in housing prices from the bubble peak, had enough to buy the house of their previous desire in cash. There is no reason why youngsters can’t do this today, with great success. In fact, because so much pessimism is built into the psyche of society against “the stock market”, and so much optimism towards RE is present, it can be argued that stocks are unduly cheap.

“You are signing up to be someone’s slave for the rest of your life. Sad really.”

Indeed. Better to be a slave owner, than a slave. Leverage over the long term always costs more than the total return on a house.

In fact, for these Millennials who are probably quite underpaid relative to boomer cohort at the same stage of life, participating in the “capital” side of the economy (as opposed to participating through “labour”) is most likely of dramatically greater importance. Of course, many won’t “get” it. In fact, most won’t..

#45 zedgt87 on 04.17.15 at 7:25 pm

#16 PM

“I know it’s fun to slag millenials as entitled but not everyone is saying they deserve a million dollars or should be able to buy a mansion in the Westside. They’re saying they’re angry that’s what it takes to buy even a lousy home.

And there’s every right to be angry. It doesn’t mean they’re entitled. It means our governments have failed us. At the national level the central banks and the CMHC have made sure that anyone with a pulse and an income statement can be approved for loads of cheap debt. Municipally the city has made sure to keep property taxes low so that developers and speculative investors can keep low carrying costs while trying to turn a profit in a juiced market. They know that the only ones who vote in lowly municipal elections are old fogies sitting on paper fortunes waiting to cash out when the market shows the first signs of cooling so they keep the cost of maintaining that dirty cheap.

Housing is an important part of life and expecting legislators to use their tools to keep it a rational market isn’t being entitled, it’s what we pay fucking taxes for.

I make a six-figure salary and have 3 times my annual salary in savings invested. I’m in the top 20% of earners my age. I don’t think I should be able to own an SFH in West Van, that’s fine. However something is pretty out of whack when I can’t get a decent attached condo/townhouse over 1000 sq ft without going into a debt range that would be inadvisable. Even renting that place is going to cost $2500+.

That’s not entitlement, that’s a overcooked market and it sure as hell isn’t my fault so a little resentment shouldn’t be scorned. It should be recognized as a failing of our leadership to create stable economic conditions.”

—————————————————————-

Couldn’t agree more. You laid it out perfectly, I was a little shocked that Garth was mocking them. This is the exact prime demographic for entering real estate and starting families. Instead housing inflation has completely pushed them out of their local markets and they are (rightfully) mad. This isn’t about entitlement.

#46 Daisy Mae on 04.17.15 at 7:26 pm

‘Professional Communications Consultant’?
What the hell is that? LOL

#47 Mark on 04.17.15 at 7:29 pm

‘I’m not a big believer in HAM, but how do figure that Ottawa, the land of defined benefit pensions and government jobs, has house prices that are $400,000 cheaper and $600,000 or more cheaper than Vancouver?”

Here’s a suggestion — perhaps people in Ottawa are mortally afraid of personal bankruptcy, as it may cause one’s government security clearance to be revoked.

Maybe there’s a few more brain cells too involved. After all, the Ottawa public servant crowd has managed to twist the arm of the government to shower compensation upon them dramatically greater than what is paid in the private sector.

What happened to your penance? — Garth

#48 Cici on 04.17.15 at 7:29 pm

Personally, I do think it’s kind of tragic that couples who are bringing in $125,000 or more in household income “can’t afford” to buy a detached house, and have to settle for raising kids apartments or condos.

I mean, to be fair, even many “high-income” earners in Toronto and Vancouver cannot afford to purchase any property without seriously jeopardizing future retirement dreams.

And while I do enjoy the mobility and freedom of renting, the fact that I don’t have children makes it all that more agreable. I can’t imagine raising teens in a crowded apartment or condo, or having to pack up and move everything every couple of years because the landlord wants to flip the property.

The fact is that house prices are completely bloated and out of touch with reality, from Prince George to Halifax, and Montreal back to Vancouver with a stopover in Calgary. Build quality is low and design is hideous.

And it kind of makes me wonder, what is the government going to do in 20 years if the average rotten bungalow ISN’T worth $4 million? How else will the endebted masses be able to afford to retire or pay for their kids’ educations?

Sorry to sound so gloomy doomster tonigh, but I can’t help worrying about where Canadians are headed.

I’m sure Smoking Man can answer this question, or at least tap into his universal consciousness consolidator thingy for a response?

#49 Kim on 04.17.15 at 7:31 pm

If I had gone to school, volunteered in the community, worked many part time jobs, gone to university, got a real job, made memories and had lifelong roots with friends and family in Prince George, well definitely that is where I would want to live and stay. It is not about the burbs or Prince George- it is not about saying Vancouver is better than those places. It’s not, but it just happens to be my ‘birthplace/homeland’.

But I grew up in Vancouver, and yes, I do feel that hardworking, contributing members of a city should have an expectation that they can one day have some sort of small modest home and permanent roots in their hometown. And when I say ‘home’, I am not referring to a house, a small condo is also fine.

I have contributed to building this community: coached teams, raised money for libraries and schools etc – there is sweat equity and commitment and roots and involvement and so yes, that makes me feel that I have earned a right to live in the place where I was born.

I really think that people here are missing the true sadness and frustration and hopelessness behind the #don’thave1 million campaign and dismissing it with their tired “go drink a $6 latte” comments about whiners.

And that wasn’t a whine? — Garth

#50 Buddha on 04.17.15 at 7:32 pm

Careful what you wish for……

#51 Daisy Mae on 04.17.15 at 7:32 pm

#1: “The professional communication consultant is right, vancouver needs young professionals like her. But a basic house costing way over a million is a sure fire way to drive out the youth and the future.
You missed the point.”

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

Garth didn’t miss a thing. These young ‘professionals’ need to give their heads a very serious shake.

#52 Yogi Bear on 04.17.15 at 7:32 pm

#1 zedgt87 on 04.17.15 at 6:11 pm
The professional communication consultant is right, vancouver needs young professionals like her.

lel. It’s a him.

#53 Yuus bin Haad on 04.17.15 at 7:38 pm

Be sure to include your best pouty-face pic with that Tweet kids.

#54 North Burnaby on 04.17.15 at 7:39 pm

These millennials are too stressed out seeing detached house prices going up by $200k/year on average. That’s way more than how much most of us earn in income after taxes. So, no matter how much they’ve been trying to save, affordability is getting farther away from their reach.

#55 Freedom First on 04.17.15 at 7:40 pm

I have learned that entertaining self-pity, criticism, blame, envy, or any form of expectations/entitlement will keep me in a very bad emotional state. I had to grow up. I also learned that either I learned to control my emotions or my emotions would control me. No exception.

I always place my Freedom First.

#56 Entitlements on 04.17.15 at 7:41 pm

Garth, if you call this entitlement, how would you label the 50+ years old CEOs, who are also 10+ million dollar worth of shareholders – demanding that the government should continue to pay 65% of the wages for the hundreds of 25-30+ years old, highly trained professionals they employ to build the shareholder value of the company they are hoping to sell some day?

At the same time when talking to analysts they are proud how they improve the margin by maintaining lower than industry average salaries.

Is this an other type of entitlement – or just smart opportunism, taking advantage of milking the public for their own private good?

#57 Cici on 04.17.15 at 7:42 pm

#16 PM

Housing is an important part of life and expecting legislators to use their tools to keep it a rational market isn’t being entitled, it’s what we pay taxes for.

____________________________________________

Wow, thank you ;-)

#58 David W #1 on 04.17.15 at 7:49 pm

Loved this article. “Dude, where’s my job?
What happens when the most entitled generation ever hits a recession” (Macleans, Jan 2009).

Showed this to a bunch of 20 somethings at work who were just hired to work for me. Only one understood it. The rest thought absolute entitlement to a good paycheck with minimal effort. I see this attitude has only got worse. Need a Mil !!! We all need a Mil.

#59 Drunk Actuary on 04.17.15 at 7:52 pm

Totally disappointed by today’s blog by Garth. For once in the media we have a trend and an article pointing about the bubble in Vancouver and Toronto that made the housing market totally unafordable.

This is the exact same thing you’re complaining about since years on this blog, and the only thing you do is making fun of them and ridiculize them. You don’t even know their story, maybe they’re renting and investing in a balanced portfolio like you and the blogdogs in here, maybe theyre just posting picture to say houses are totally unaffordable (exactly like you).

You’re very fast to judge people Mr. Turner.

Forgive me. Tweeting will fix it all. Well done, Millennials. — Garth

#60 mdm on 04.17.15 at 7:53 pm

How long before dampcouver has to pay people $20/hour to work at mcd’s or timmys like fort mcmurray did? a city full of millionaires who will require common folk services will have to pay more for these services in higher property tax. next they will have to bring in citizens of poorer countries and set them up in camps to do their dirty work?

#61 David W #1 on 04.17.15 at 7:53 pm

Sorry, Forgot the link.
http://www.macleans.ca/education/uniandcollege/dude-wheres-my-job-2/

#62 Shawn Allen on 04.17.15 at 7:55 pm

Living Without Granite

Mama Bear on 04.17.15 at 6:40 pm

My 31 year old daughter just bought her first home in Brantford. A 2 year old end unit freehold townhouse, 3 bed, 3 bath for 246,000. No granite.

********************************************
No granite? That’s unthinkable! Be assured the granite will be installed before too long.

#63 to_be_frank on 04.17.15 at 7:56 pm

We have 300,000 people immigrating here every year, and most understandably want to cluster among their own kind so Toronto and Vancouver get the lion’s share and nobody wants to go to Northern Ontario. Consequently, the cost of housing becomes unaffordable in these population centres. If you can’t afford a house, and you need a place to live, then renting or moving away are your only options. Don’t expect house prices to come down too much because more people keep coming.

#64 OttawaMike on 04.17.15 at 7:57 pm

Stay tuned for Sunday’s episode of Greaterfool and find out what really happened to JR after he got shot.

Spoiler: It was all a bad dream just like Canadian real estate.

#65 Shawn Allen on 04.17.15 at 7:57 pm

The hashtag should have been Cantaffordamilliondollarhouse, but that is not as catchy.

or
cantbuyahouse, but again not as catchy.

#66 irent on 04.17.15 at 7:59 pm

Hi Garth – I am a daily reader of your blog since the first I came across. Please when you give investment advise on Sunday take real examples of ETFs or other investment products. You can add a disclaimer that they are just examples and investor should research. Enjoy your weekend!!!

You expect me to tell you exactly what to invest in without knowing any personal circumstances? — Garth

#67 Arthur on 04.17.15 at 8:02 pm

Garth I think you completely missed hte point of #donthave1million

“The #DontHave1Million kids actually want to be rich, and think they’re entitled to buy a $1,000,000 house.”

I think they are showing that despite being successful professionals they are priced out of the housing market and how sad/ridiculous that is.

The professional communication consultant is right, vancouver needs young professionals like her. But a basic house costing way over a million is a sure fire way to drive out the youth and the future.

You missed the point.

You believe being a young professional and not being able to afford a detached house is in the priciest city is “sad/ridiculous”? I don’t think I missed a thing. — Garth

____________________________________

Garth,

Lets be fair here, you said:

“The #DontHave1Million kids actually want to be rich, and think they’re entitled to buy a $1,000,000 house.”

Which assumes:
1) That everyone’s in agreement that the houses are actually worth a $1,000,000.
2) That the these twitter-folk actually feel entitled to a SDH.

In reality these people clearly aren’t stupid enough to take out a million dollar mortgage and are really just using ‘million dollar home’ analogy to illustrate just how bad the situation has become, even for renters.

We all just think your statement is a bit presumptuous :P

My 2 nickels.

— Arthur

#68 Arthur on 04.17.15 at 8:03 pm

Oh, and doesn’t everyone want to be rich ;).

#69 jrochest on 04.17.15 at 8:09 pm

Add me to the chorus pointing out that Garth missed the point: they are not saying that they should make more money, or that they want to be rich. They are pointing out that housing is unaffordable for everyone: when someone who makes a good salary can’t afford to buy, prices are out of wack. And the solution “move to Prince George!” isn’t one: it’s not like Vancouver will not need doctors and lawyers and cops and software designers. It’s just that none of them will be able to live there, unless they live six to a room.

As everythingisterrible pointed out, Garth’s blog is making the same point.

Of course prices are our of whack. But moaning that you want one won’t change that. You are not entitled to own real estate, and often it is a major mistake. — Garth

#70 waiting on the westcoast on 04.17.15 at 8:11 pm

#34 SI2K on 04.17.15 at 7:04 pm
“Time to stop bashing the liberal arts….”

I have a BA and it hasn’t made me a kinder, gentler soul…. Many engineers I know are far more introspective and kind. I think you should give up on the generalizations.

I do think many of my courses were valuable FOR ME. But, I think that the BA is not the greatest degree for our society. We need far more skills-oriented programs to create businesses, infrastructure, etc.

#71 Ogopogo on 04.17.15 at 8:17 pm

The signs and hashtags scream millennial entitlement. Have these snowflakes not heard of renting? I’m slightly older (Gen X) and I couldn’t care less about owning a house in this bubble.

These coddled kidults should be holding signs saying #whywouldibuyahousewhenicanrentforless? or more simply #boycottthebubble or (for the passive-aggressive snowflake) #upyoursrealtors

#72 small steps on 04.17.15 at 8:20 pm

I do not know why everyone is entitled either -what makes boomers think people should pay a million for their homes?

#73 Just Do It on 04.17.15 at 8:20 pm

Home ownership is achievable… even in Vancouver… and you don’t need a million… to start.

My wife and I started with a modest 1 bedroom in English Bay.

Shortly after that, we moved to a cozy 1 bedroom with den in the West End.

When my daughter was born, we moved to a funky 2 bedroom condo on Main St.

After that, a 3 bedroom condo in False Creek… with a view of David Lam Park… that was pretty swish.

Then, we upgraded to a 3 bedroom duplex in Kitsilano… did a full renovation… sold it for a tidy profit.

Took the equity… and bought a sweet rancher in North Vancouver… fixed it… moved along.

Put our money and effort into a 4 bedroom home on a beautiful property in North Vancouver… updated it… added a pool for good measure… just sold that.

Just bought a Mid-Century modern by renowned architect, Fred Hollingsworth… needs a little update… we’re up for it.

Baby steps. Baby steps.

Drop the “I can’t afford a home” sign… and get started.

Seriously. You can do it. Now go do it.

#74 Entrepreneur on 04.17.15 at 8:22 pm

When the professional youth cannot buy a house/home you know the prices are unrealistic for Canadians. Many have left Canada and moved to the States, brain drain and small business. This has being going on for some time. Time for a big correction to keep our youth in Canada. This is so important.

#75 Ralph on 04.17.15 at 8:24 pm

The Economist cited Canada as one of the most overvalued markets in the world, both compared to rent and income, so it is only a matter of time before the place tankThe invasion of Chinese ain’t gonna happen because they have already invaded. We all recognize this.

#76 TakingResponsibility on 04.17.15 at 8:26 pm

#missingthepoint

What is Socialism other than:
Having a nationalized mortgage insurance agency (cmhc) that socializes the bank’s risk and privatizes bank’s profits.

What is social engineering other than:
Lowering BoC rates to create “stimulus” – where the only discernable change is in lower variable rate mortgages.

Pffft. I could go on and on with examples.

Using the “socialism” talking point totally misleads and blinds people to what is happening right in front of them. As if the HarperCons could not possibly practice Market Interference, Socialism (lemon socialism, as it were), or police statism.

People need to take a little anthropology or another ology to see the irony in the blindness of rigidly blinded ideology.

#eyeswideshut #freemarketsmythologies

PS. I agree with GT’s premises and the “go where the jobs are” message as certainly everywhere is as one makes it.

#77 nonplused on 04.17.15 at 8:28 pm

Well, housing prices could correct substantially, but it could be inflation as well.

One of the common themes behind most inflationary episodes is that most people don’t have any money, despite rising prices. So when housing zooms up to the point where nobody can really afford it without huge debts and near zero interest rates, it can still be inflation of the money supply behind it. Speculators who have access to the free money take it and buy up all the assets with the view to selling to a “greater fool” prior to the end of the free money. If the free money never ends, they get the assets they bought for free basically.

Put long term interest rates back at 5% and let’s see where we are at.

#78 Ralph on 04.17.15 at 8:28 pm

What many of these “educated” self-entitled thinking people don’t realize is how easy it is to get a degree these days and the higher ed institutions are trying to make money and maximize their enrollment. University grads are explained more by socioeconomic status than by general intelligence so just because you have a degree doesn’t mean that you have earned a decent job, and if you have failed to research the market you have studied for then, well…

#79 Homeless in Canada on 04.17.15 at 8:33 pm

Garth, you sound like a Republican with all your “people feel entitled” nonsense. No one feels they are entitled. They are working hard and making sacrifices but no amount of hard work will allow one to buy a decent house when they are 10-11 times the median income.

Media always states that the Harper Government has “acted four times in four years to cool the housing market”. How often have you heard that? The reality is that it took them four years to simply repeal the policy blunder of allowing zero money down and 40 year mortgage terms!

They need to limit CMHC insurance to a max of $300,000 per home and let banks start taking on risk.

They also need to stop wealth immigrant programs that fill cities with millionaires and slowly push down the standard of living for average Canadians.

#80 Sebee on 04.17.15 at 8:34 pm

Smoking Man, will you finally tell us where to get the new software you highly recommend for the kidos…funny OS right in there, I think we have a product name.

#81 Randol on 04.17.15 at 8:37 pm

When exactly did the title of professional lose all meaning?

Dazed and confused.

#82 crowdedelevatorfartz on 04.17.15 at 8:42 pm

@#59 Drunk Actually
“the only thing you do is making fun of them and ridiculize them…..”
+++++++++++++++++++++++++++++++++
No.
You did that all by your little self.
Bottoms up!

#83 TheAwakenedOne on 04.17.15 at 8:44 pm

LOL… ack ack ack…

I’d rather have the cute dog and her puppies here than owning a house in Vancouver and be a slave to the Bank for the rest of my natural [email protected]$$ing… ** beep** life…

At least they are grateful and loyal to you until the last day of their lives (or beyond your last)… not sucking you dry and throw you out onto the street like the Banks do.

Dogs or Banks? Pick one, folks…

#84 Randol on 04.17.15 at 8:44 pm

I can name a dozen BC cities/towns where hard working, educated folk can afford a home, today. None start with the letter ‘V’. Why is this a problem?

#85 crowdedelevatorfartz on 04.17.15 at 8:44 pm

@#64 Ottawa Mike
“Stay tuned for Sunday’s episode of Greaterfool and find out what really happened to JR after he got shot.

Spoiler: It was all a bad dream just like Canadian real estate…..”
+++++++++++++++++++++++++++++++++++

jayzus! warn me when yer gonna do that!
Almost snarfed beer out my nose.

#86 Karl hungus on 04.17.15 at 8:45 pm

Garth, since you used to run the cra, riddle me this.

Would the cra disallow this deduction? I have a rental house. I take the rent check and put it against my personal mortgage. I pay all condo expenses (maintenance, fees, property taxes) with a line of credit. Is the interest tax deductible?

The rent is fully taxable in your hands and the rental mortgage interest is deductible. — Garth

#87 TurnerNation on 04.17.15 at 8:46 pm

When Kandos strike back. I know two people living in this building near me.

I call bear market. Reminds me of 2001 when all those tech stock IPO lawsuits began.

http://www.thestar.com/news/gta/2015/04/14/condo-developer-freed-slapped-with-65-million-lawsuit.html

#88 Capt. Obvious on 04.17.15 at 8:47 pm

You would think people would be more appreciative of the fact ridiculous house prices is a side effect of staving off what would have been a crippling economic contraction following the GFC. So it goes I guess. They don’t know what they don’t know.

#89 Alex G. on 04.17.15 at 8:53 pm

#69 jrochest on 04.17.15 at 8:09 pm

Add me to the chorus pointing out that Garth missed the point: they are not saying that they should make more money, or that they want to be rich. They are pointing out that housing is unaffordable for everyone: when someone who makes a good salary can’t afford to buy, prices are out of wack. And the solution “move to Prince George!” isn’t one: it’s not like Vancouver will not need doctors and lawyers and cops and software designers. It’s just that none of them will be able to live there, unless they live six to a room.

————————————

I may be wrong here but I think the point Garth is trying to make is that , as today’s title suggests, “the entitled” these Millenials’ approach considers, much like yourself seem to do, that owning real estate (perhaps real estate that is more than their parents even currently after decades of working are inhabiting) is some sort of birthright. It’s not, owning real estate is a privilege. Having access to a place to shelter is closer to a right (and even there, the homeless would tell you otherwise). Doctors, lawyers, and cops will be needed in Vancouver… and in any other major (and small) city, but those some doctors, lawyers, and cops can very well rent a house, a condo, or an apartment in an old apartment building. There’s their shelter; and they may be able to save the difference. If there were no places to rent and indeed buying was the only way to keep those people off the streets, I would be much more supportive of their “plight”.

They have a clear problem distinguishing between their wants and their needs which is saving 101. Heck, I’d love to have a private jet and a 332-foot yacht but tweeting #IDon’tHave543Million ain’t gonna make anyone deplore my situation. And while a Vancouver house may not be a private jet, buying one is as much a want as it is buying a jet… the need is shelter, and there are plenty of places to rent!

FYI, I’m a millennial too, PhD in Neuroscience and shitty job prospects in the present economy; turns out renting and living within your means and putting the rest in a balanced portfolio works wonders at building your savings instead of whining on twitter… go figure.

#90 Willy H on 04.17.15 at 8:53 pm

I didn’t interpret the “dont have a 1 million” movement in quite the same way.

It’s a comment on housing affordability and little more.

These young folks are doubly screwed. With all but certain shortfalls in government inflows (from TFSA’s and possible changes to tweak RRIF withdrawals, irresponsible cut’s to the GST and billions in corporate tax cuts*) it’s a sure bet that income taxes on the middle class are going to gravitate higher over the mid-term. The only way the Reformicon’s can continue on their current trajectory is to further shrink government. Good luck with that! Personally I’ll wager that the GST will be back up to 7% within 5 years.

Our current government has done more to increase the divide between have’s and have not’s than any government in post-war Canada. To make matters worse they have pursued the 1980’s GOP neo-con “starve the beast” methodology. It failed back then and it will fail in Canada in the near future.

*Not much change in unemployment (particularly youth unemployment) considering all these cut’s and our corporations sit on billions in cash reserves waiting for something with real growth potential to invest in.

#91 Julia on 04.17.15 at 8:56 pm

#73 Just do it

All I can’t think reading your post is how much money was spent on realtors, land transfer taxes and moving costs…

#92 PGer on 04.17.15 at 8:58 pm

Don’t usually comment on this blog, but still love it. My wife and I moved to Prince George 27 years ago. We bought our first house for 72K and had the mortgage paid off in 4 years (through hard saving), and then moved to a 188K house 10 years ago (paid for the mortgage in another 4 years). It`s now worth about 350K. We both worked in moderate paying jobs and now have 1 MM in savings (mostly invested) plus pensions. Hence I will shortly be retiring (at 56). Not saying this was easy, or we didn’t sacrifice trips and material stuff, but it can be done. As for all of those who slag PG, they should actually visit it – great city to live in, great and beautiful outdoors, and the people here are actually genuine and friendly (which I can`t say for many Vancouverites). We both grew up in the lower mainland (and we lived in Vancouver for 8 years), have family there, but it would be the last place I would chose to live in BC. So some of these kids whining about vancouver house prices should get of their asses and move somewhere (like PG).

#93 Just Do It on 04.17.15 at 9:03 pm

#91 Julia.

Lots of money was spent on realtors, land transfer taxes, and moving costs… don’t forget contractors, sub contractors, Home Depot, and Rona, as well.

Good news is… we contributed to our local economy… bettered our living spaces and lives… and had a tidy share left over… it’s the ultimate win / win.

Just do it.

#94 Sylar on 04.17.15 at 9:07 pm

@ zedgt87

I’d say that comment is the very definition of entitlement. First comment of the day no less. Go figure.

Nope I’d agree, Garth didn’t miss a thing.

#95 Nora Lenderby on 04.17.15 at 9:07 pm

Yesterday there was this:

#68 gungho on 04.17.15 at 1:07 am
Some old fuddy duddy suggested we go out and vote, if we wanted the housing market fixed. To a man, the table burst out laughing. No one votes any more. None of my friends have ever voted in any kind of election. We’re all Vancouverites, good jobs and roughly early to mid 30s. All that election stuff is a waste of time, we know the rich really run everything here.

If this is really true, my dear, you’re going to get a very nasty shock. If your generation doesn’t go out and vote (yes, actually participate in your democracy, instead of just taking advantage of it), you will be irrelevant.

This “I don’t vote” attitude is just silly – it’s basic passivity and pretend-cynicism-sophistication. It’s also facile and lazy. You have to think, compromise, make a choice.

For goodness sake get off the couch every few years, at least the walk to the polling place will do you good.

And if that doesn’t convince you, please read this post by a popular left-wing British blogger (I bet you can’t be bothered, though):

http://anotherangryvoice.blogspot.ca/2015/04/not-voting-pitifully-ineffective-protest.html

#96 John Williamson on 04.17.15 at 9:08 pm

Left Leaning Whiny wimps!!!!! Pour me i dont havé â million dollar house! Start a business! Move to where the Money is like Toronto! Stop being a victim!!!!!

#97 Bcd on 04.17.15 at 9:09 pm

I’ll admit I didn’t like the slogan of that viral little episode either, however I do see their point. Yes they are whiny little buggers, a lot of them anyway, but they are also educated Canadians that have been sold a lie that the Canadian dream is within reach for everyone.

Increasingly I see poor people everywhere. At Walmart, at my work, on the streets. Older people living on incomes of 30k a year. This problem is not going to go away. In a country so rich as canada do we really have to cater to foreign investors and foreign ownership to the extent that it excludes the people who were raised here and want to live and work in a city and raise kids? Why is making a statement like this deemed racist?

These people aren’t asking for a house, they want a liveable wage, and for the playing field to be levelled so that they can have a shot at the Canadian dream. I also don’t blame them. When speculators enter the real estate market and don’t live and work in neighbourhoods (as many have argued has happened in Vancouver) the fabric of those neighbourhoods disintegrates. I pity young people in Vancouver. Every time I go to Vancouver I just see a bunch of young people pretending they can afford it and that all is well, when the truth is they are outcasts in their own city and its a place most of them will never “really” call home.

#98 lala on 04.17.15 at 9:10 pm

Forget it, i don’t know what to say.

#99 John on 04.17.15 at 9:11 pm

I just opened up the Winnipeg Free Press to find an article courtesy of Royal Lepage. Here’s a direct quote. ” we saw a lot of listing on the market early in the year, up approximately 33 per cent compared to this time last year. While this is putting downward pressure on home prices, it shows people are confident in the market, as they believe they will be able to sell their homes”

Really!? Higher listing along with lower sales and lower prices now represents CONFIDENCE in the market. That’s new! Haha these guys are unbelievable.

#100 Boomer on 04.17.15 at 9:13 pm

Well, in the late 60’s I moved from Vancouver to PG. Loved it! I was offered a fabulous job and was surprised by the beauty of winter. Yes, it was hard at first. Met my husband, had a wonderful life, we had four children. You find that he city is full of new friends in no time, because everyone is from some where else. Quickly you become an “adopted” aunt or uncle to your friends’ children – The standard of living is fabulous for the young and the young at heart. We were always skiing, snowshoeing, at hockey games, hiking, camping, swimming… attending the first rate schools – modern schools with well equipped libraries, good music programs,and the university … getting under graduate or graduate degrees, going to the symphony, or rock concerts, attending fabulous plays and had so much money we bought a condo in Vancouver for when we popped down to visit the old folks and cycle around the park. We were so happy to return to a sane world with out so much pollution and traffic. Prince George has very little pollution now. It’s a fabulous place to live – but you’ll have competition for jobs. The smart people are living there. Yes, many own their own houses – comparable homes here in West Vancouver are worth about 2 million… Why did we boomers move here again? The kids flew the coop. We moved into the “holiday” condo, and now we hike the mountains, cycle the seawall and don’t have to worry about slipping on the ice at our age. Hospitals up there are great too, with teaching doctors at the UHNBC medical program, pouring out doctors for the north. There are even direct flights to Mexico, for those who need a bit of warmth as a break from the cold. Maybe we’ll move back. My husband misses his double garage, I miss the sewing room.

#101 Ben on 04.17.15 at 9:15 pm

Oh dear Garth has fallen down to the level the rest of the boomers occupy. He picks out the “communication consultant” as typical of youngsters and decries their “right” to have land.

Lazy kids eh – always wanting something for nothing, right Garth? Wrong.

Try not to stereotype. Makes you look dumb. — Garth

#102 Iceflows on 04.17.15 at 9:18 pm

#22 crowdedelevatorfartz on 04.17.15 at 6:40 pm
Its affectionately known as “Pigs Gorge”.

I always liked to keep it simple; just, ‘The Pig.’

#103 not 1st on 04.17.15 at 9:20 pm

You expect me to tell you exactly what to invest in without knowing any personal circumstances? — Garth

Well I can tell you what not to invest in and thats preferred share ETFs. These things are always getting burned with interest rate speculation and resets. I have owned 2 of them over the last few years and they always get hammered for no reason. And they are thinly traded so no support from the common stock and broader stock market.

Buy preferreds for consistent yield, not capital value, and in the proper weighting. An important component of a balanced portfolio. — Garth

#104 Ben on 04.17.15 at 9:21 pm

I guess that’s irony there Garth after a whole blog post stereotyping? Good one…

I admit to dissing a bunch of Tweeters. The stereotyping was all yours. — Garth

#105 Smoking Man on 04.17.15 at 9:22 pm

The guitar player at ceases, tight jeans , middle age. He’s got a singer half his age, the show. Where did he go wrong.

He played other peoples songs, read other peoples books, listened to other peoples advice.

Not everyone is a Nectonite. For that would take, living without fear of judgment, living in a mind void of gravity. Loathing everything while loving it at the same time.

Its how I roll.

#106 The entitled | Realties.ca on 04.17.15 at 9:31 pm

[…] Source: http://www.greaterfool.ca/2015/04/17/the-entitled/ […]

#107 craig on 04.17.15 at 9:31 pm

I don’t have a million… however I am 26 make more than most of my friends with no debt and about 300k invested yet I rent a bedroom for $350 a month all inclusive. The only thing that will kill the entitlement in our generation is reality hitting them in the face. Parents need to cut the cord.

#108 BG on 04.17.15 at 9:32 pm

Old rich people bashing poor young people.
How original.

#109 Iceflows on 04.17.15 at 9:34 pm

If you think they are justified in complaining about the cost of living take another think on it.

They are complaining that (they feel) their education or job title means society should give them everything they want. After all, we are talking about people with decent jobs, health and housing, presumably.

A lot of people don’t get the opportunities that let you be an ‘Environmental Professional.’ So what if you don’t get to buy a house with a backyard and parking for two. Try not being able to afford your room in a house after working your weekly 40hr. Then add in a pregnancy. Then I might start to have pity.

If it is about the general cost of living then the answer is not some twits. Cut expenses and find new income sources. That’s how it’s done.

Besides, why buy a $1M house, what a waste of money (unless it’s a sound investment.)

#110 Ben on 04.17.15 at 9:38 pm

Well all-right maybe I was too harsh – people expecting a big salary life on a regular job don’t “deserve” to be rich, sure. I get that.

I think the thrust of this is the frustration of those who have a job in the salary % of their parents but have a life that looks very different to them. They see they are in the top 10 or 15% of wage earners and they are renting a small condo where a 65 year old who use to drive a bus lives.

Not that I’m saying there is anything wrong with driving a bus(!) – I’m just saying that there is great frustration at the detachment between salary and land costs. And this same detachment has brought great riches to many a boomer who are often very dismissive of the young in spite of the fact that the youngster may well have a far better job than the older person ever had.

I mean – if you literally cannot work your way out of a hole because land costs have detached from wages what can you do? Most are just waiting.

Anyways – like it or not this is building up into a generational issue as the olds take the bribes from the banks and the politicians to exploit the young via debt, taking their cut in unfunded pensions and land price appreciation.

Time they chose a side instead of profiting from it. We are all in this together!

#111 Trojan House on 04.17.15 at 9:44 pm

Some folks think they’re entitled to things.

#112 Oot der Hoos on 04.17.15 at 9:48 pm

I lived through the same housing boom in the 1980s.
Everyone thought I was crazy to wait for the Bank of Canada insanity (of too low interest rates), to cause enough damage. In other words, I figured the boom eventually would go bust. It did, and without any interest rate hikes. House prices dropped 30% by 1993.

I waited 7 years to buy a house. I saved 5 years of taxed salary in terms of the 30% house price drop.

I remember a tense house party discussion, during the boom, where one person said it is just supply and demand and the socialist couple got annoyed about free markets.

Free markets work if the Bank of Canada and the entire western world banking system would quit the failed notion that inflation is good for the economy.

Inflation is not good. It makes the socialists blame capitalism, like Paul Craig Roberts blamed it in “Failure of Capitalism”, and so does JesseL-whatever website.

See #77 nonplused on 04.17.15 at 8:28 pm above.

The interest rates are always a little too low. I think the central banks do it to compensate for the failing socialism system in Europe USA and Canada.

At 55% GDP directly controlled by three layers of governments you have to admit this is socialism. Only 45% is in the hands of individuals, and yet the communists want more control, promising to make it all better than last time.

We are run by a new world of neo-comms neo-communists or banker-communists, not neo-cons.

#113 Washed Up Lawyer on 04.17.15 at 9:55 pm

Garth:

I am sitting here in Fort McMurray in my self imposed exile for having made a dopey and embarrassing hockey prediction. My self imposed exile ends May 15.

I was drunk.

Do you have a “faint hope provision” in your code?

I have something pithy to say on today’s blog. It will help Millenials who do not have a million dollars.

Signed,

Convict

#114 TurnerNation on 04.17.15 at 9:57 pm

I’m waiting for the Americans on here telling us we need a good old fashioned war draft, giving these soft hipsters a dosing of reality. :-(

#115 betamax on 04.17.15 at 9:58 pm

If they had the money, would they be complaining about house prices? Likely, not.

They want to jump on the bandwagon, and they’re complaining because they can’t and therefore feel disenfranchised.

That’s not the same thing as perceiving a housing bubble.

#116 Keith in Calgary on 04.17.15 at 9:59 pm

So a bank approved a coupel with two kids and $125K pretax for $800K ????

We’re f_ _ ked.

That’s $4,500 a month before taxes, and insurance, and utilities…….or about $5,300 a month +/- including all those little unmentionables………probably 85% of their net income.

We’re f_ _ ked.

#117 rosie "moving forward" in the knowledge that, "this won't end well" on 04.17.15 at 10:01 pm

Maybe the kids coming up post millennial will get it.

http://wac.450f.edgecastcdn.net/80450F/wgna.com/files/2013/01/mommy-says-if-we-get-likes-facebook-picture-630×472.jpg

#118 Marco on 04.17.15 at 10:11 pm

@Ben

I hear where you’re coming from, but this Boomer house appreciation is pretty much dumb luck.
The only way Harper was getting his majority was to appease the boomers for votes. Thanks to 2008 the window opened for him.
low interest rates, mortgage changes etc… Is the reason the entitled Boomers are all full of themselves with their home gushing pride and multimillionaire status.
2008 couldn’t have been a better event for the Boomers and Harper outside of Woodstock.
The Twitter fest is just highliting the issue of un-affordability without any real insight into the ludicrously of why?

Garth’s blog is showing the reasons why it doesn’t add up. Why these people really shouldn’t wish for a 1,000,000 house anyway.

“Better still, get ready for what’s coming, and invest in financial assets.” – Garth.

Cheers.

#119 ShawnG in TO on 04.17.15 at 10:17 pm

It’s not like YVR has locked them up; enslaved them; somehow owe them money. No. These kids wants to be in Van, and somehow it’s society’s responsibility to lower the house price, so they can buy, and stay.

Of course YVR houses are ridiculously over priced. But what these kids want is not how they can avoid the bubble, and wait it out, rather, they are the educated professionals (not to say they are valuable members of the society) so they deserve to pay less than what others are willing to pay to buy.

In other words, they are part of the problem, not part of the solution.

#120 gladiator on 04.17.15 at 10:18 pm

I may not have a million dollars, but I surely have a million reasons to be happy. Love my life.

That’s it. Thanks for your attention.

#121 Interstellar Old Yeller on 04.17.15 at 10:21 pm

#88 Capt. Obvious on 04.17.15 at 8:47 pm
You would think people would be more appreciative of the fact ridiculous house prices is a side effect of staving off what would have been a crippling economic contraction following the GFC. So it goes I guess. They don’t know what they don’t know.

Well, some of us know this is just kicking the can down the road, probably making the eventual day of reckoning that much worse. It has created opportunities for the clear-eyed to make a killing, though (like Boomers selling to cash out at the peak. Hello, comfortable retirement!)

#122 mikef on 04.17.15 at 10:24 pm

I’m not a big believer in HAM, but how do figure that Ottawa, the land of defined benefit pensions and government jobs, has house prices that are $400,000 cheaper and $600,000 or more cheaper than Vancouver?

——————————————————–

I think it is the Hull/Gatineau effect where where young
families can live across the river and have $7 a day
daycare,French schooling and cheaper homes

#123 BS on 04.17.15 at 10:26 pm

35:

I think garth missed the point. The point is even though they make a very good living wage they still can’t afford to buy what deadbeats with no educated or money were able to buy in 2006.

I am a Gen Xer born and raised in Vancouver. Yes we are in a bubble in Vancouver and across Canada. But, a Vancouver proper SFH has never been affordable for an average or even above average income earning family. Not in 2006 and not in 1967 when my parents were renting in Vancouver and moved to the Fraser Valley so they could afford to buy a basic 1300 square foot SFH for a family of 4 (which was really the sticks then). Is it less affordable today? Yes, but it has never been ‘affordable’ for a first time home buyer like those tweeting the selfies. Get over it.

Having said all that renting is reasonably affordable in Vancouver. Not so much for families with kids who ‘require’ bedrooms for each kid, a yard, a theater room, nannies quarters, etc. But for families who can live in a smaller space or couples and singles it is very affordable to rent. I could actually afford to buy a decent house in Vancouver but why would I? I rent a nice downtown waterfront condo at a fraction of the cost. I spend and invest my money on other things than housing. I also have less worries about maintenance, interest rates, collapsing prices, etc. Life is good. The sooner these Idonthaveamillion crowd who are currently renting in Vancouver realize life is fine as renter the better off they will be.

#124 greenpotato on 04.17.15 at 10:29 pm

Garth

Most of the advice on rebalancing here seems to be taking long positions in stock, then rebalancing by taking additional long positions. Is there any room for shorting stock in your 60-40 portfolio? Also, what about holding cash when there is fear and uncertainty in the market? It seems portfolio managers sometimes switch to cash when the conditions justify it?

#125 DonDWest on 04.17.15 at 10:30 pm

#15 Heisenberg

I find it hilarious how you think a 300K house is affordable. The truth of the matter is you should only pay at most 3 times your income for a mortgage. I doubt anyone in this Twitter rant is making 100K a year.

Our perspectives are certainly warped if we’re telling young people to quit whining because there’s a 300K “fixer-upper” 30 minutes out of town.

The truth of the matter is that the only way my generation is going to have any chance of economic success in the current system is for the current system to be radically destroyed, uprooted, and re-created.

You’re set up to fail in a poker match were you’re required to compete against a generation that has received millions of dollars worth of free housing wealth without so much as having to even lift a finger.

The futility of it all, to quote an old favourite childhood movie, “the only way to win is not to play.”

The problem with generation Y is that our education system has taught us to be “good little boys and good little girls”, work hard, work within the system, people will come to appreciate it, etc. Generation Y seems to think that if they plead a logical case they’ll be invited to the economic societal table.

It’s time Generation Y get a grip! We’re now starting to push 30 years old. If the baby boomers wanted to include you, they would have done so already. I got the message, “I’ve got mine kid; I’ll be damned if you get yours!” I got the message, and I’ve listened. I painfully got the message.

I believe the message to be genuinely immoral, but if there’s one thing I’ve learned from my self-taught Stoic education the past 3 years, is that you can neither force nor persuade an immoral man to become moral. You either fight him or flee his presence – for this is the language these men speak – you’re only making yourself a victim by attempting to appease or reason with them. And if the immoral man is stronger than you, then the only practical action to take is to withdraw until you gain greater strength.

I’ve since withdrawn from civilization and set up a small poultry farm. I’ve accepted the situation for what it is – and I watch. I suggest many do the same. I never thought or even imagined I could be doing what I’m doing today, but here I am.

Withdraw from the game and refuse to play – and by that I don’t mean renting in the city or playing around with funny stock options. When you withdraw from the game, you don’t sit on the bench hoping to pinch hit.

#126 AFrame32vcr on 04.17.15 at 10:31 pm

Hey Garth – I’m 32, wife and two small kids. Making about $200k in Vancouver with $600k liquid. I’m in the market for a home and target price is 650k and moving to the Kelowna area to avoid the madness. People are nuts around Vancouver and I only see these buyers as making leveraged investments that won’t work out well. They spend everything they make, and view real estate as the only real option to make capital.

#127 cd on 04.17.15 at 10:34 pm

I saw the dont have a million campaign and I thought of entitled children. It made me a bit angry since I’m about their age and I don’t want my age group represented like that (and I don’t have a mill). There is a real need for affordable housing, and especially safe clean housing close to ones workplace. Their campaign don’t seem to address that.

This whole expensive real estate is really killing life in places like toronto. Some of the bookstores I used to like going to don’t exist anymore since their rents got jacked up so high that they were forced to close (or go online which isn’t the same). Stopping for a quick bite to eat has really jumped up over the past couple of years, again they gotta cover their rents. Cheaper venues to see a band or art show have a hard time to still be cheap or exist. Don’t get me started on record stores. Life is more than a million dollar house, its about living, and toronto for me isn’t as fun as it used to be.

#128 iceflows on 04.17.15 at 10:36 pm

75, Ralph said:
‘The invasion of Chinese ain’t gonna happen because they have already invaded. We all recognize this.’

It’s not an invasion. It’s an economic and political migration.

Invasion implies an imposition on the nation.

The other implies all the benefits of free markets and societies. Freedom of choice, association and mobility.

Migration is something that should be encouraged. Controlled, but encouraged.75, Ralph said:
‘The invasion of Chinese ain’t gonna happen because they have already invaded. We all recognize this.’

It’s not an invasion. It’s an economic and political migration.

Invasion implies an imposition on the nation.

The other implies all the benefits of free markets and societies. Freedom of choice, association and mobility.

Migration is something that should be encouraged. Controlled, but encouraged.

#129 greenpotato on 04.17.15 at 10:42 pm

#70 waiting on the westcoast on 04.17.15 at 8:11 pm
#34 SI2K on 04.17.15 at 7:04 pm
“Time to stop bashing the liberal arts….”

But, I think that the BA is not the greatest degree for our society. We need far more skills-oriented programs to create businesses, infrastructure, etc.”

Looks like some wise elders might disagree with you….

http://www.nytimes.com/2015/04/16/opinion/nicholas-kristof-starving-for-wisdom.html?rref=collection%2Fcolumn%2Fnicholas-kristof&_r=0

Starving for Wisdom

After all who wants to inhabit a society full of modern day Philistines?

#130 Markopolo on 04.17.15 at 11:03 pm

Garth,

I work among a number of CAs between the ages of 25-35. We can prepare the financial statements of public companies but most of my colleagues don’t have balance sheets (net worth statements) or income statements (budgets) for their own personal finances or, even a clue where their money goes.

I admire your consistent message, but its competing against decades of societal pressures to consume. If even those who are supposed to be money-savvy don’t get it, what chance to others have?

A have and have not world will continue.

Thank you.

#131 VB on 04.17.15 at 11:08 pm

When I was kid I thought I could never afford a house, so I had to find a way to get ahead without my parents help. I don’t feel bad for Millenials because it’s not supposed to be easy. Go for that massive mortgage on the house and you will be educated when money gets more expensive. Good luck.

#132 PM on 04.17.15 at 11:09 pm

I know HAM isn’t real but lots of real estate isn’t even being attempted to sell here. It’s being marketed directly to Asia: http://cbreemail.com/cv/f12455ec61e928475ddf863682a458fcf688d60f

That is selling commercial RE to institutional investors. It’s a global market. — Garth

#133 HammerGuy on 04.17.15 at 11:15 pm

Or you could buy a house up wind from the mills North End Hamilton, by Bayfront Park, Pier 4, yacht clubs, 70 min. New GO service LIUNA to Union, pending GO to The Falls and LRT to airport. Art scene. $2-400k.

#134 Exurban on 04.17.15 at 11:16 pm

#97 Bcd

Yours is the best-written and truest post on the thread. Thank you for taking the time to write it.

#135 Love my Kia on 04.17.15 at 11:25 pm

#47 Mark:

‘I’m not a big believer in HAM, but how do figure that Ottawa, the land of defined benefit pensions and government jobs, has house prices that are $400,000 cheaper and $600,000 or more cheaper than Vancouver?”

Its quite simple Mark….LAND. Ottawa has it, Van doesn’t. Van is bound by the ocean to the west, the mountains to the east and north and the US line to the south. Locational geography, not HAM

#136 Coleslaw on 04.17.15 at 11:27 pm

It’s all about narcissism – just like those guys who pretend to be millionaires and have to tell everyone.

#137 A Yank in BC on 04.17.15 at 11:31 pm

#73 Just Do It on 04.17.15 at 8:20 pm

Don’t be so smug. What you fail to acknowledge is that you had the great advantage of steadily declining interest rates all during your decades of trading-up in Vancouver, which steadily drove-up property values to their present astronomical level. A 29 year-old today will instead face the headwinds of increasing rates during her life. It will be impossible for her to do what you have done. So count your lucky stars.

#138 Shawn Allen on 04.17.15 at 11:31 pm

04.17.15 at 7:17 pm
Seriously, are these kids for real? Shit is about to hit the fan and…

*************************************
Really shit is about to hit the fan?

That has been a prediction of many on this blog for quite a few years now… the shit hawks are coming the doomers said.

Well have not seen it yet.

Lived through the great crash just fine thank you.

Life on earth has never been better and yet people see doom.

#139 Washed Up Lawyer on 04.17.15 at 11:55 pm

Millenials:

Fortunes are made on frontiers. Always have been. Always will be. I do not mean only geographical frontiers. I mean intellectual, technological, scientific, health and other frontiers, including Nectonite.

In 1947, Imperial Oil ushered in the petro-state in Alberta with Leduc #1. I do not think those young engineers from Colorado and Oklahoma were happy to be sent to Edmonton.

Sine then we have seen microwave ovens, Facebook and Tesla. Frontiers.

If you can start a career in Prince George, Pouce Coupe or Kapuskasing, take the position. It is not permanent and you will be able to return to Toronto or Vancouver or Red Deer after you get 2 to 4 years experience under your belt.

Let me offer one anecdote or shaggy dog story which might be illustrative.

I attended a public consultation session on a planning and development effort in Fart McMurray and met two young (and very attractive female) urban planners employed by the Regional Municipality of Wood Buffalo. One from Port Coquitlam and one from Van Isle. One had studied planning and the other studied environmental science. Can you imagine them hanging around the Lower Mainland applying for positions in the planning department of Vancouver? No chance with the 1000s of applications received for each opening.

It is not much fun mushing to work each day when it is dark out and -35 degrees but if they put in their time they will be back at Nathan Phillips Square or taking their direction from Gregor on his concept for False Creek in no time.

Those two are headed for the big time.

#140 ozy - Kiddos -you are entitled to VOTE on 04.17.15 at 11:56 pm

Sweet Kiddos – you are entitled to VOTE – stop whining on twister and form a new party (political not marijuana) and change the RULES of the GAME, for God’s sake! Just change your mindset and you can have it all…

I was told I give ladies no chances….
Like, why not?… Nice guy, but….the rules are simple…. ONE CHANCE!

Go do it. Now.

#141 Kilt on 04.17.15 at 11:57 pm

As taxpaying Canadians, I think we have a right to complain about the cost of homes in Vancouver. Especially since we are all going to be paying for them if this bubble does burst.
But, as long as 250,000 people are immigrating to Canada every year, house prices are going to stay elevated. There is just too much demand. You need a catalyst to pop the bubble. People have jobs and are paying their bills. Oil is gonna hammer Alberta, but already I see people moving from Cowtown to the lower mainland in search of work. Thats just more demand in an already tight rental market or more houses coming off the market.
You can cry wolf about rising rates year after year but I think the government would be happy to see a 60 or 65 cent dollar. I’d wager you will still see 5-year rates at under 3% five years from now.
Kilt

#142 Carpe Diem on 04.18.15 at 12:10 am

I moved my 3 kid family from Vancouver to Ottawa in 2008.

Never thought twice of moving back.

Ottawa is a much better place for a family and kids can roam outside and parents worry not!

Schools are better, neighbors aren’t Meth addicts and the cost of homes are just fine.

Ottawa has more than the feds for jobs and a great high-tech community!

Winters are cold but ice fishing rocks, snowshoeing and skiing is 20 mins away!

Summers a good too. Ottawa river offers anyone is looking for!

Quality of life is what is important. Move to a place that is affordable, wages are higher and better for you family. You will never regret it!

Some whining! Move to a better place!

#143 AACI Home-Dog on 04.18.15 at 12:20 am

Compared to the way the Vancouver market was 50 years ago, it is a “sad/ridiculous” situation. A labourer could afford a house back then, with the wife at home.

#144 Arch Douche on 04.18.15 at 12:30 am

It’s unfortunate that Canadian millennial’s had a relatively economically easy time of it growing up so that they now expect that life will be an easy step by step process without delays or difficulties. Not being able to afford a house you want is not a real problem anymore than not being able to afford the Porsche you really want. We learned poor lessons about what matters in life and are obsessed with measuring up against others materially, because we live in a superficial time in history. We have a poverty of patience, humility and resolve as compared to the rest of the world. We’re all “unique” but our main aim is to conform – its sad.

People don’t want to look at themselves, but Garth is absolutely correct. Life is not a f*cking even glide path to easy street. Rather than hold up signs on social media like a bunch of helpless children, change yourself. Adapt, change with your environment, like everyone else has done in history. We live in a first world country without war, famine, or rampant disease. This is pretty much as good as it gets on this planet, so if people are waiting for “the good times to roll” they’re going to be waiting a long, long time. Everyone would like a better life, that’s human nature. But if people can’t appreciate what they have, then the material chase never ends. That’s Vancouverites real problem – it’s a city largely devoid of authenticity and warmth, so it slowly drains the soul. Like a beautiful woman without a heart, it only looks good from afar.

#145 Obvious Truth on 04.18.15 at 12:36 am

I’m a professional time waster:)

If you gave me a slanty semi is say no thanks. It would take up all my time and extra money.

Only 800k approval. It’s a lost cause.

#146 timmy on 04.18.15 at 12:39 am

Prince George is a shithole. It stinks of the pulp mill and it is ugly, redneck and cold. Of course housing is cheap. It is also cheap in Zimbabwe

#147 Paul on 04.18.15 at 12:41 am

#123

I couldn’t agree more. I’m originally from NS but we rent in Vancouver with two seven year olds. I love the city and we’ll stay for 15 more years. It’s our home and the kids don’t care if you rent or you own. In the event we are forced to move to a new place, well, that’s just a new adventure.

I can somewhat understand this twitter campaign but, in the end, it’s just self-defeating victimization.

We rent the top floor of a well-maintaned modest 50’s house with a great landlord for $1525 a month including utilities. Granted, it’s a good deal if you’re able to establish yourself as the ideal tenant – but they’re out there if you’re open to living outside the city core (but within a 35 minute commute to work). Personally, I find it’s more interesting to live in SE Van than the trendier neighborhoods.

I try to:

1) Appreciate how fortunate I am to live in this great country;

2) Accept responsibility for my life;

3) Provide value on the services I provide;

4) Care less about what people think;

5) Realize that circumstances change;

6) Adapt to a changing reality; and,

7) Invest.

#148 Obvious Truth on 04.18.15 at 12:46 am

#113. WUL

Have another bevy. Flames hockey is just starting. Even stajan found himself shaking the mitts.

The tone for game 3 has been set.

#149 Nodebt on 04.18.15 at 12:59 am

#49 Kim
Hey Kim how old are you? Quite obvious you work a minimum wage job. To bad for you! Your wise decision!
My heart bleeds for all those donkeys & donkettes posting those stupid signs. If that was my daughter or son I would put them over my knee and spank their bare ass raw for embarrassing themselves. You want to make a million fast? Get a trade, work for somebody to gain experience. Work every hour your entitled to, go work in every shit hole in bc, be away from your family and friends, then when you have done it for 10 years and buy the way all the money you made you have saved! Now go in business for yourself and do the exact same thing! Now your 38-40 and your worth millions and your house is paid for! I live in the interior and great place to live! I could easily afford a 1.5-2 mil house in van , move away from mommy and daddy and go get your million! You can face time your friends ! I love subway cookies Kim! Good luck it can easily be done, just have to work and save your ass off! Garth I don’t know how you do it , I would love to be a fly on the wall when your reading the dumbass comments!!

#150 Lillooet, BC on 04.18.15 at 1:01 am

I have a sobering message for those 20 or 30-somethings who can’t afford a house in Toronto or Vancity: unless you are lucky enough to have a job paying $100k+, and/or inherit or gifted an equal amount from parents, you will never be able to afford a house in those cities. Maybe a condo, and maybe a pathetic fixer-upper with crushing debt load.

Why is this? Because Canada has a generous immigration policy allowing 300,000 newcomers every year, the vast majority want to live in TO and/or Vancity. Each of those cities get about 125,000 per year, each and every year, then have families. This puts tremendous pressure on the rental, condo and house market. This is not my opinion, it is fact. That, coupled with booming job markets make those areas ultra-unaffordable.

The good news is, there is a solution. But you have to get out of your comfort zone. Canada is a large country with many mid-size and small towns and rural areas that are eager to accept “urban refugees”. There is a myth that there are “no jobs” in small towns and rural areas. If you check the local classified ads in these small places, you’ll rarely see a job listed. But there are jobs.

Every small to mid-size town needs workers: medical support, nurses, home-care, bank clerks, retail, trades/carpentry/electrician/contractors/renovators, landscaper, police, ambulance, elementary and high school teachers and support staff, municipal/provincial and federal staff, environmental, fisheries, forestry, logging, pulp and paper mill workers, agricultural, automotive techs, restaurant managers. Or you could start up your own small business.

No, you’re not gonna get a high-tech job designing the next killer app. Get your head out of your apps. Shut off your mobile for one second and look around you, explore outside your comfort zone, explore this great country and what is has to offer. Or stay in the big rat race and spend the rest of your life renting, or paying sky-high condo fees and special assessments and taxes.

Or move to Prince George, or Lillooet, or Merritt or Kamloops, or Princeton or Osoyoos or Grand Forks or Clinton or a couple dozen small to mid-size towns where you don’t have to shovel snow 5 months of the year. The choice is yours.

#151 Mike T. on 04.18.15 at 1:05 am

#million$house?

how about just a room?

http://www.hgtv.com/shows/million-dollar-rooms

apples and oranges, but still fun

a million bucks – for a room

#152 Obvious Truth on 04.18.15 at 1:06 am

highest inflation in food prices. Noticed that a few weeks ago my self.

No worries. Amanda Lang says it’s fine.

Thanks Amanda. I feel better.

#153 PharmBoi on 04.18.15 at 1:07 am

@craig #107

Same situation here, clear low 6 digits a year and if my peers knew how much exactly I have invested they probably wouldn’t believe me. I can liquidate my entire portfolio and buy a property now in cash but that just doesn’t make sense when I run the numbers. It makes even less sense when I think about my personal situation.

Seriously, people are in need of a good smack on their head. I am so sick of being asked when I’m going to buy a place and settle down with my love instead of renting. 3 years ago I moved to a new city for a new job, and thank god I wasn’t saddled to a property. Maybe it’s a blessing in disguise that those people can’t afford a Vancouver property, perhaps it’s time to think about job mobility? If there’s ever a time to avoid becoming leveraged with debt, this uncertain job climate would be it.

#154 Granite good on 04.18.15 at 1:19 am

got no problem with granite. It’s not the high end thing it used to be 15 years ago. Did our kitchen counters for 1760 $ 4 years ago. Saw a big kitchen counter done in a nice laminate counter for $6000. Who knew? Granite is nice with lots of variety and affordability. Let it go.

#155 Jack Delacy on 04.18.15 at 1:26 am

To #130 Markopolo

I can say that it is at least 15 years that our family saved, invested, maxed out RRSP’s, TFSA’s, RESP’s, non-registered accounts etc.

We have paid off our house in 13 years and have no debts. We have about $500,000 in financial investments, assets and real estate, primary residence only, nothing else worth about $400,000. We are both in 44 and 45 years old.

Most of our friends are similar to us when it comes to money.

We never spent much money on the house until we paid it all off.

People, today have lost common sense and financial basics that work through and through!

#156 NoWarToys on 04.18.15 at 1:27 am

Hey young people, I have a brilliant idea I got from Jimmy Pattison in 1986: His EXPO 86 campaign slogan was “Invite the World”. Now he volunteers to monitor our taxes that are going to go towards accommodating another 1 million immigrants to Vancouver by 2030. Yay! Let’s vote YES to another 1 million people to compete for a home, a parking place, a tight squeeze on the freeway, a long wait in our overcrowded and underfunded Emergency Rooms etc. But oh no let’s dare not look closer at Jimmy’s motives. Is it possible that he alone has manipulated us into telling the world how great it is (was) here so he can open up more Save On Food stores and all his other businesses? Of course…..HE is largely responsible for our traffic nightmares and foreigners buying our real estate and now he wants to accommodate a 2nd wave. Oh Great! Jimmy, how about you suggest that these non resident owners of empty condos be taxed at 15% yearly on the value of their condos and let THEM pay for the services we can’t afford anymore. I’m shocked that no one else has floated this idea

#157 angela on 04.18.15 at 1:32 am

#15 Heisenberg – North Surrey is an ideal, central location. I loved loving there. I don’t understand why more hasn’t been done with that area in the recent buildong boom.

#158 Observer on 04.18.15 at 1:37 am

Fannie and Freddie Restart Risky ‘Affordable Housing’ Programs

http://www.foxbusiness.com/industries/2015/04/17/fannie-and-freddie-restart-risky-affordable-housing-programs/

#159 willworkforpickles on 04.18.15 at 1:39 am

The million plus average detached houses today are the slums of tomorrow .
Everything is going to suffer.
After the crash, money will be tight , prices will crash, money will be tight, inflation will run rampant, money will be tight, mortgage rates will greatly increase, money will be tight, taxes will rise, money will be tight, defaults will be numerous, money will be tight, maintenance will suffer, money will be tight, houses will deteriorate , money will be tight, jobs will be lost, money will be tight, bankruptcies will abound, money will be tight, crime will skyrocket, money will be tight, food shortages are coming, money will be tight,civil unrest is coming, money will be tight, neighborhoods will burn, money will be tight…..and so on.

#160 Keith on 04.18.15 at 1:50 am

Those damn entitled millenials, how dare they demand to own a house. After all, if they were born in the thirties, they could have bought a house in Victoria for $7100 in 1961 on the salary of a clerk in the civil service, like my Dad did, with two children and third on the way.

Or they could have emigrated from Portugal in 1967 like my inlaws, landed in Vancouver in their mid thirties with five kids, a grade school education and no English. No problem, a union job at a sawmill for him, and a union job as a chambermaid at a downtown hotel for her, and a home purchase in 1968 for $13,500. Three years of taking on as much overtime as possible, they were mortgage free.

I will argue that the current state of affairs for young Vancouverites can hardly be characterized as “entitlement” by anyone who was working at a time of higher union density, lower real housing costs, and pay rises at a level higher than the cost of living, all quaint empowerments of the working and middle class that have been incinerated in a bonfire of Chicago school of economic practices that were supposed to trickle down to everyone.

They aren’t entitled. They are economic victims of the sellout of a majority of Canadians by three levels of government. The federal, with artificially low interest rates and reckless mortgage insurance policies, the province of B.C., with it’s special charter for the City of Vancouver, and the city of Vancouver, that never met a developer they didn’t like and whose campaign contributions they didn’t accept.

At least in Whistler they created some non market housing so the lift attendants and teachers could afford to work and live there. In Vancouver the young have been sacrificed on the altar of ever increasing house prices propelled by all levels of government, without a realistic affordable housing program in sight.

#161 Ralph Cramdown on 04.18.15 at 1:55 am

I think it’s legitimate to ask just what kind of dystopian hell our political leaders and real estate developers have created. We live in a country with one of the lowest population densities in the world. We’re rich in natural resources, and in most other measurable ways. We’re home to a world-beating maker of mass transit and a few of the world’s best civil engineering firms. And in two of our three biggest urban agglomerations, housing is completely unaffordable unless you’ve two six figure incomes, and mass transit is a joke.

I took a look at the posts on Twitter. These aren’t baristas and entitled art majors. They’re people with graduate STEM degrees and good jobs.

Shrugging and calling somebody entitled? That’s crap. These people don’t feel entitled to what a million buys in Beverly Hills or a borough of New York. They feel entitled to what a million buys in and near Vancouver. And I don’t blame them.

Regardless of whether you feel the problem is CMHC, banking regulations, foreign money, drug money, poor development and infrastructure planning or demographics, saying to hard working, well educated and well paid adults that a house in a decent school district in a third-tier world city is only within reach if they forego saving for retirement is shitty.

“It’s the market, kid. We saw the bubbles in other places but we didn’t do anything about ours. We’d rather have lower, deferred taxes on older people than infrastructure. We build vacant homes as a store of value for the global wealthy. A greater and greater share of tax will be paid by wage earning families in their high spending years, and a smaller and smaller share by the rich and the old. And by the way, our retirement plan was for you to indenture yourself to massive mortgages to buy our decidedly middle class houses, and to pay high taxes to pay for our healthcare. We’re entitled to our entitlements, and there will be no means tests. Suck it up, kid. The bank’s that way, and the mortgage officer is there ’till four.”

Bullshit.

#162 McFly on 04.18.15 at 1:56 am

#donthave1million is another great example of the obsession over real estate in Vancouver. Yea, houses cost too much. Stop crying, get over it and move on.

#163 Debtfree on 04.18.15 at 2:04 am

Aren’t these the people that don’t vote ?

#164 Linda on 04.18.15 at 2:11 am

#8 Mark: in fact, lots of people have been living outside of the place where they work for years due to not being able to afford to buy/live (at a reasonable cost, that is) in the place where they work. Or they choose to live outside of where they work, because they actually want a slower, less hectic pace of life.

#48 Cici: hate to break this to you, but the government doesn’t actually want you to retire. What is ideal from their perspective is you making enough taxable income to keep their tax base as high as possible (fact of life – pension income is highly unlikely to be as high as your working income & thus you end up paying lower taxes, mainly because there is less to tax). Bonus if you die before they have to pay out any benefits & especially if you die without tying up the medical system for any length of time. Education is considered a two edged sword. On the one hand you potentially have high income earners so potentially can get more tax revenue. One the other hand there is always the danger that those who are educated might actually think for themselves. Governments prefer that you not do that, could upset the status quo.

#165 Fed-up on 04.18.15 at 2:43 am

I’m sorry but we shouldn’t be ridiculing anyone who feels disillusioned and frustrated over the fact that they may never be able to afford a home in the community where they were born and raised. Their parents were able to do so very easily, earning far less even with inflation taken into account. This generation has watched its country turn its back and sell them down the river. No, owning is not a right. But it shouldn’t be a financial Waterloo either.

OK so Tweeting is not the answer. So what is it that they should do about it? Rent at inflated prices due to the disgusting overvaluations in real estate prices and hope that purchase prices come down and pray that their investments don’t take a drubbing while they wait? This is viewed as the “smart” option but let’s face it, for most young Canadians today, it’s the only option. Oh I forgot, “move to a smaller town or leave this country altogether” option. Why should they??? Is this what Canada is now all about? Can’t afford it so leave?

I’m a Gen-Xer who sold his home just over a year ago in the 416 for a substantial windfall, and I must tell you that it felt wrong then and even more so now. There is nothing “brilliant” about buying a home when it costs 2-4 times your annual salary. There was absolutely nothing so ingenious about it that would entitle anyone to almost triple and for many boomers, 10 fold their initial purchase price. I truly and honestly felt sorry for the buyers of my home. But it was time to get out and that is what this insane market valued my pile of bricks and mortar at.

It’s quite sad actually.

#166 zedgt87 on 04.18.15 at 2:56 am

“You wee doing fine until you allowed the ad hominem comment to make you sound like a churlish youngster. Better work on that. — Garth

Oh the irony. Garth frequently uses ad hominem personal slights, but if someone else points out the obvious, it makes them a churlish youngster.

You can’t make this stuff up.

#167 Kim on 04.18.15 at 3:30 am

…I have contributed to building this community: coached teams, raised money for libraries and schools etc – there is sweat equity and commitment and roots and involvement and so yes, that makes me feel that I have earned a right to live in the place where I was born.

I really think that people here are missing the true sadness and frustration and hopelessness behind the #don’thave1 million campaign and dismissing it with their tired “go drink a $6 latte” comments about whiners.

And that wasn’t a whine? — Garth

Wow, how cold and dismissive.

Don’t us every regular working-folk get to have the dream of one day owning a tiny fractional piece of the place where we work and volunteer and build our communities?

Or is that just for the elite and I should just face facts and stop whining? I thought you were on our side – railing against the damages of this crazy, artificially inflated real estate market.

(and yes I rent, save like a demon, have a 60/40 balanced portfolio as you recommend and have a good career blah blah blah)

But I want more, I want to own a little tiny piece of the city I love, and I don’t think I am an entitled whiner to say it.

#168 Pulp Faction on 04.18.15 at 3:40 am

Prince George R/E is overvalued too. Homes here are double what they used to be, and the economic situation here is far worse than it was when they were reasonably priced. I wouldn’t buy a house here right now for any money. Precious few jobs and nothing going on. This is a mill town and forestry is a mere shadow of what it used to be.

If a couple making $125k/annum can’t buy a $1M home, then maybe someone is doing the dingbats a favor.

Hey, want $1M homes to come down in price ?

Then stop buying $1M homes !!!

#169 johnny d on 04.18.15 at 4:39 am

Clearly these kids are in protest of our central bank’s low interest rate policy. And also our government’s decisions to loosen mortgage standards over the last ten or so years.
#BRINGBACK10%DOWN
#RAISEKEYINTERESTRATE
#[email protected]$500,000
#REGULATEREALESTATE

#170 Nagraj on 04.18.15 at 4:40 am

“Thou shalt not covet thy neighbour’s house”

Or any house, eh?

Actually – that commandment goes on to also say thou shalt not covet your neighbour’s manservant, or his ass. So when I was given the commandments to read out loud in church, when I got to the ass part I paused to look at the tenors.
I got called into the office and was prohibited from reading for the rest of the year.
It was worth it tho, I had the entire choir, and half the congregation, in stitches.

The PROBLEM with Canadians in general is they think they is morally superior (especially to Americans for some reason). Incontrovertible proof of this – lies in the undeniable fact that Canadians don’t know what Salome did with John the Baptist’s severed head.
Canadians are so morally superior they can’t conceive of what she did with the head.
It was so obscene that if I were to tell you – this post would be DELETED. Even Herod was so disgusted he had the soldiers crush her to death immediately.

Millenanalsals, young professionals (an oxymoron), yea even the rebalanced and diversified amongst you, yer all such INNOCENTS – yas thinks yas is entitled to good health, a spouse, kids, a house, a job, a fair wage, freedom from fear and want, honest dealing. Nice weather too. Why? Cuz yer all SO sure yer NICE people.

#171 TRT on 04.18.15 at 4:50 am

This is why I post here Garth. You’re leading your readers astray. Can Gov will not raise interest rates for at least a decade.

Housing must be protected at all cost. Banks must be protected as well.

Need I say more ?

You will see…like it has been the last 6 years.

#172 Eh? on 04.18.15 at 4:51 am

Totally missed the point of the tweet, as many have already pointed out.
The point was that the average middle class can’t afford an average house in Vancouver.
The same point this blog has been yammering on about for the last 7 years now….

#173 Bottoms_Up on 04.18.15 at 7:16 am

This is why young families are leaving Vancouver and BC has a negative immigration rate.

#174 maxx on 04.18.15 at 8:12 am

#16 PM on 04.17.15 at 6:31 pm

The young do have a point, but far more importantly, so does the rest of society, most of which got screwed by the cheap money come-on: the elderly, waiting in pain for months and sometimes years for surgery due to cutbacks in the health system, any other victims of needless “austerity” and of course, savers.

Many youth do work hard and figure out their plans to get ahead without necessarily buying a house immediately. They are tomorrow’s winners. But sadly, many more are simply luxe-life wannabees who will eventually face up to the inevitable fact that getting rich is not a sexy process, requires sacrifice and a
continuous juggling of priorities.

Unfortunately, by then, the window of wealth creation will have passed them by.

#175 LP on 04.18.15 at 8:16 am

#166 Kim on 04.18.15 at 3:30 am
Don’t us every regular working-folk get to have the dream of one day owning a tiny fractional piece of the place where we work and volunteer and build our communities?
***************************

Sorry, I’m not usually successful with links so let me just ask you to search out an article in today’s Toronto Star about the CEO of a smallish company in Seattle who decreased his pay sufficient to pay every single one of his 120 employees a base salary of $70,000 pa.

His reasoning? Everyone should be able to have hope of starting a family, getting an education, buying a home; in short, what we all want to achieve. He is quoted as saying this step isn’t charity but investment in his employees. He sees himself as a capitalist and expects that company profits will grow as money stresses are removed from his workers’ lives.

I think I really would like this man.

#176 earthboundmisfit on 04.18.15 at 8:25 am

Prince George. The horror. OMG, you have no idea. Spent the three longest years of my life there in the mid 90s. Stinking s***hole of a city, with nine months of winter.

#177 Grantmi on 04.18.15 at 8:33 am

#60 mdm on 04.17.15 at 7:53 pm
How long before dampcouver has to pay people $20/hour to work at mcd’s or timmys like fort mcmurray did? a city full of millionaires who will require common folk services will have to pay more for these services in higher property tax. next they will have to bring in citizens of poorer countries and set them up in camps to do their dirty work?

Haha… Are u kidding me. Have u been to a mickeyD’s or a TimmyHos….. It’s the newly arrived (they live 10 to a home), and the nearly a Dead. (Pre-boomers).

Both come cheap!!!

#178 H on 04.18.15 at 8:51 am

“Well the business owners in Guangzhou do have a million and don’t care about the little signs you are holding.”

Exactly. And to add, the china us sponsorship program just ran out in USA.

So once again the smart money fleeing china (yes it is) will once again make its way here.

The headline data Garth is so desperate to see will not show up as the transactions of the houses will continue to be performed through trusts, companies and cousins.

The simple fact is we cant seem to grasp in China they are facing reality. The property bubble they have makes our perceived one a joke. And if you have serious money in China, you are spending every dime you can on how to get the money the hell out.

More Yellow Peril. Give it up. You are as tiresome as you are wrong. — Garth

#179 Slimmer on 04.18.15 at 9:13 am

http://www.motherjones.com/kevin-drum/2015/04/economic-collapse-prediction-minimum-wage-raise

Another good way to help stimulate the economy. Raise the minimum wage.

…and crash small business. No solution. — Garth

#180 Vlad on 04.18.15 at 9:41 am

All the moaning IS pathetic. Nothing is guaranteed in life, even if you follow all the “rules”. When life gives you lemons, you better do something with them.

Is is also very selfish. If all these white collar workers have it “bad”, what about all the blue collar ones?

#181 Dan on 04.18.15 at 9:49 am

Long a few out of the money June 19 QQQ puts.

Let the “sell in May” 10%+ summer swoon begin.

#182 Keith on 04.18.15 at 9:53 am

Garth, I keep hearing that raising the minimum wage will kill small business. Please explain to me how if every business has to pay the same wages, and relative competitiveness doesn’t change in a market with local clientele, businesses will be lost.

Because wages and payroll taxes (overhead) rise it does not mean revenues do. — Garth

#183 Ralph Cramdown on 04.18.15 at 10:13 am

Because wages and payroll taxes (overhead) rise it does not mean revenues do. — Garth

Sure, because many people on minimum wage are prolific savers, and they’re going to put those extra wages into their newly expanded TFSAs, rather than spending it in the economy.

What kinds of businesses don’t see increased revenue when lower and middle class wages go up?

http://www.ritholtz.com/blog/2015/04/jobless-in-seattle-not-yet-anyway/

#184 minimum wage - maximum pofit on 04.18.15 at 10:36 am

#181 Keith on 04.18.15 at 9:53 am
Garth, I keep hearing that raising the minimum wage will kill small business. Please explain to me how if every business has to pay the same wages, and relative competitiveness doesn’t change in a market with local clientele, businesses will be lost.

Because wages and payroll taxes (overhead) rise it does not mean revenues do. — Garth

———-

Who is to say what the profit rate should be?

If the business relies on minimum wage jobs, it is not a cutting edge business, why would it expect great profit?

Obviously you have never started, owned or run an independent business. — Garth

#185 Daisy Mae on 04.18.15 at 10:47 am

#7 Leo: “I think they are showing that despite being successful professionals…”

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

They’re barely out of school. How much job experience can they have to consider themselves ‘successful professionals’? No one owes them a living. Or a million dollar house.

#186 Barb on 04.18.15 at 11:17 am

The key takeaway is most house will be cheaper “pretty much everywhere”. Except Garth didn’t tell us with the exception of Vancouver and Toronto. But very obvious fact.

#187 Retired Boomer - WI on 04.18.15 at 11:31 am

I don’t have a million dollars either in investible assets, and who gives a dam? Not me.

I don’t need a million in investible assets to live well.

There is “talk” of the FED raising interest rates this year.
I still think the old broad will never raise rates as long as a market weakness can be manipulated, business cries foul, or our the skies are overcast. What do I know?

Greece plays the rest of the world for suckers, the “have nots” think to is up to ‘us’ to save them from their spending.

Talked with a trucker my age last evening, getting ready to hang up his keys after 43 years on the road. Debt Free, makes furniture as a hobby, pays cash for everything. He is basically set for life. So tough to actually WORK a job that often goes begging, watch your dough, and retire rich.

Our Boomer generation largely screwed it for themselves, our kids will screw it for themselves, too. Why, watching idiot parents, and enabling grand parents. Glad I never drank that Kool Aid.

Freedom comes from not being a DEBT slave.

Last Post for a time…spring break!

#188 Last of the Baby Boomers on 04.18.15 at 11:32 am

What the government wants:

• Investment in growth and development of the country.
• Immigration and import of foreign wealth which props the country until there is sufficient development and growth from within.
• Sustainability of our current social programs inclusive of include health care.

What the majority of Canadians hope to achieve:

• Employment
• Stability which comes with home ownership (reduced risk of displacement associated with renting and lack of affordability), sufficient space to raise a family (harmonious relationships between family members).

Viable Solution:

#189 Millmech on 04.18.15 at 11:33 am

I want my red and yellow pedal tulip bulb#
I want my black tulip bulb#
I want my variated tulip bulb#
Sound familiar?

#190 Slimmer on 04.18.15 at 11:45 am

In theory payroll taxes could come down on the low end of the scale. Increase tax breaks for small business to help them get going and grow.

But then the wage increases could encourage people to just take on more debt. Interest rates would have to rise, too.

I guess the question might be, will wage increases help businesses to (in the long run) grow? And to me, that’s what it should be about…growth.

#191 Last of the Baby Boomers on 04.18.15 at 11:57 am

Viable Solution (continued)
Level the playing field while maintaining immigration and preventing disenfranchisement of those that make up the fabric of our nation, through:
-10 year waiting period before new immigrants are afforded the ability to purchase residential land. (Insures commitment and hopefully investment in the nation).
-unlimited opportunity of foreign wealth investment in growth and development of small and mid-cap Canadian companies.
-further restrict CMHC insurance limits and availability.
The current system mimics a serious clostridium difficile infection, displacing healthy normal flora causing a diversion of fluids from all of the integral life-sustaining body processes to a single area of the body where it is expediently evacuated and if left untreated leads to serious complications and possible death of the host.

There are not two classes of citizens. Shameful. — Garth

#192 TSH on 04.18.15 at 12:05 pm

Garth,

I have a large portion of my financial assets in US equities and my portfolio has done very well in the past year, with a lot of help coming from the CAD weakness. It has started to gain strength in the past couple of weeks and I am wondering if you think this will continue? Should I protect my gains with a hedging strategy of some sort?

Ask your advisor. — Garth

#193 Vancouver Troy on 04.18.15 at 12:12 pm

People who complain about rents / home prices in Vancouver always seem to be talking about living within 10 minutes of down town.

My wife and I just bought a cute little, renovated rancher on a nice piece of land that’s a 30 minute drive to Vancouver for under $600k.

You don’t need $1m to buy one, you need $30k with 5% down. #I don’t have $1 million implies people pay cash for houses with no financing.

#194 Broke Dick on 04.18.15 at 12:15 pm

Truth is, mortgages will cost more next year and houses will cost less – pretty much everywhere. _Garth

===================================

You sound so sure this time.
Worst case scenario for Toronto SFH is 0% increase for 1 year from now. Trying to predict beyond that time frame is nothing more than a guess.

#195 DM in C on 04.18.15 at 12:18 pm

PUPPIES!

I have nothing else.

#196 Daisy Mae on 04.18.15 at 12:19 pm

#34: “WIKIPEDIA: In modern times, liberal arts education is a term that can be interpreted in different ways. It can refer to certain areas of literature, languages, art history, music history, philosophy, history, mathematics, psychology, and science…”

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

How is this degree helpful…or productive?

#197 bdy sktrn on 04.18.15 at 12:33 pm

#169 Nagraj on 04.18.15 at 4:40 am
“Thou shalt not covet thy neighbour’s house”

Canadians don’t know what Salome did with John the Baptist’s severed head.
———————————
she gave it to her mother, who had called for it to be ‘removed’?

this cdn had not heard of this ‘fun tidbit’ of history. looked it up just now. am i missing something?

#198 Sheane Wallace on 04.18.15 at 12:38 pm

#178 Slimmer on 04.18.15 at 9:13 am
http://www.motherjones.com/kevin-drum/2015/04/economic-collapse-prediction-minimum-wage-raise

Another good way to help stimulate the economy. Raise the minimum wage.

…and crash small business. No solution. — Garth
………………………..

It is actually the solution. Small Businesses should be viable. If not, they should not exist.

Soon we could be making Indian salaries with Canadian prices.

#199 Kilt on 04.18.15 at 12:48 pm

Minimum wage is a joke. Your not hurting small business with minimum wage hike your hurting all the restaurant chains. A wage is a joke if you need to bring in foreign workers in order to fill vacancies. The only people who can afford to work at a minimum wage job are kids living at home and seniors who own their home. I can’t imagine how a family of four could survive on two minimum wage earners anywhere in Greater Vancouver.

#200 Republic_of_Western_Canada on 04.18.15 at 1:14 pm

#16 PM on 04.17.15 at 6:31 pm

I know it’s fun to slag millenials as entitled but not everyone is saying they deserve a million dollars or should be able to buy a mansion in the Westside. They’re saying they’re angry that’s what it takes to buy even a lousy home.

And there’s every right to be angry. It doesn’t mean they’re entitled. It means our governments have failed us. At the national level the central banks and the CMHC have made sure that anyone with a pulse and an income statement can be approved for loads of cheap debt. Municipally the city has made sure to keep property taxes low so that developers and speculative investors can keep low carrying costs while trying to turn a profit in a juiced market. They know that the only ones who vote in lowly municipal elections are old fogies sitting on paper fortunes waiting to cash out when the market shows the first signs of cooling so they keep the cost of maintaining that dirty cheap.

Housing is an important part of life and expecting legislators to use their tools to keep it a rational market isn’t being entitled, it’s what we pay fucking taxes for.

I make a six-figure salary and have 3 times my annual salary in savings invested. I’m in the top 20% of earners my age. I don’t think I should be able to own an SFH in West Van, that’s fine. However something is pretty out of whack when I can’t get a decent attached condo/townhouse over 1000 sq ft without going into a debt range that would be inadvisable. Even renting that place is going to cost $2500+.

That’s not entitlement, that’s a overcooked market and it sure as hell isn’t my fault so a little resentment shouldn’t be scorned. It should be recognized as a failing of our leadership to create stable economic conditions.

It’s your own collective fault for not showing financial restraint. The reasons prices are so high is because you all just stupidly pay them. Don’t like it? Then convince your cohort(s) not to buy [overpriced] real estate.

And learn to live together as groups of single people, instead of finding ways to isolate from one another. That’s what you’re there for in the lower mainland in the first place, isn’t it? Get a half-dozen friends together and rent out large detached or loft residences.

Governments have no business artificially capping housing prices, and nobody ‘pays taxes’ for them to do that. They do have a responsibility to ensure construction is appropriate and has been thoroughly inspected and maintained. And they do have a responsibility to mandate that natural resources are developed, refined, and have value added before being exported at all, as well as a social responsibility to restrict excessive immigration especially from 3rd world criminal shitholes.

It you want heavy-handed central housing planning, move to China. They’ve lots of brand-new empty cities begging for even 0.5% occupancy.

The only thing of value you have posted is to draw attention to artificially low property tax rates. CMHC should be funded solely through property taxes and residential purchase deposits, and special assessments for all residential property owners. In other words, by the real perpetrators of excessive pricing. Not through the general population.

#201 Nagraj on 04.18.15 at 1:29 pm

#196 bdy sktrn
Try “Salome” by Richard Strauss.

#202 Republic_of_Western_Canada on 04.18.15 at 1:49 pm

#166 Kim on 04.18.15 at 3:30 am
[…]

But I want more, I want to own a little tiny piece of the city I love, and I don’t think I am an entitled whiner to say it.

‘Owning’ real-estate is just an abstract concept you’ve been conditioned to think has some value. It’s fundamentally just an old means of keeping others off your little plot of grain, vegetables and pig & chicken pens.

But guess what? Now they have tenant protection laws, and lockable front doors. No need to be salivating over ‘owership’, especially when land use and all residential development is extremely restricted in all large urban areas anyway.

Assuming you have the cash, it’s still nearly impossible to assemble and build a good, esthetically pleasing and unique detached residential building. Mostly due to vested interests of developers, inbred neighborhood architectural requirements, municipal zoning bylaws, and provincial and federal prescriptive building codes.

Housing is just a consumable commodity, with limited lifespan, needing outrageous amounts of maintenance and now financing. It detracts from whatever other productive life you otherwise could have had.

#203 Dave in Sylvan Lake on 04.18.15 at 1:52 pm

Garth, I have not heard one factual or statistical point from you on why the US FED will raise interest rates in 2015.

All I’ve heard is the same regurgitation of what the media-hypos are stating, that they will raise rates.

What kind of factual or statistical information are you basing this thesis upon? Economic data? Dow Theory? National debt? Elections 2016? Yellen gospel?

I’m disappointed, frankly.

Here’s something statistical to chew on:

http://www.caseyresearch.com/articles/why-the-fed-will-chicken-out-and-not-raise-rates-until-at-least-2016

#204 alleged hipster on 04.18.15 at 1:58 pm

Don’t know if I can express my thoughts fully, but I’ll try.

Garth, what a bitter, judgmental and mean-spirited rant you have delivered here, in the eyes of this 30 year old.

So we don’t deserve even a decent chance to enter the middle class, or a liveable minimum wage while people like you and your clients earn money hand over fist, taxed at immorally lower rates than our hard earned income, while we can barely even hope to have investment accounts, or housing, let alone the increased TFSA that you seem to glorify.

To people of my generation, it is becoming increasingly clear that we can look to no one in the baby boom cohort for any kind of real democratic support or moral leadership.

Thanks for making it so clear that this includes you.

You jumped the shark today, Garth.

Bye.

You should know that a bunch of my clients making money hand-over-fist and paying immorally low taxes are your age. Think about that. — Garth

#205 hohoho on 04.18.15 at 2:02 pm

> how do figure that Ottawa, the land of defined benefit pensions and government jobs, has house prices that are $400,000 cheaper and $600,000 or more cheaper than Vancouver?

maybe …
people who collect those pensions live in Vancouver, people who pay into those pensions live in Ottawa?

#206 Republic_of_Western_Canada on 04.18.15 at 2:03 pm

#23 PM on 04.17.15 at 6:40 pm

[…]
The point is that the market is over inflated and that affects the generation that is of age to typically enter the housing market. The market is inflated because the government let people go stupid with money and if the bubble bursts everyone will pay for it, even those with a diverse portfolio, as they follow the tide.

Where do you get this stuff of ‘typical entry’ to a housing ‘market’?

A market for housing is anything but typical, and is only a recent historical post-war aberration cooked up by developers. And aided and abetted by automobile manufacturers, conventional oil companies, and anyone with a vested interest in paving over farmland with highways.

The government is not there to smack down anyone you don’t happen to like. If you don’t agree with something, fix it yourself instead of closing the door and running away from it by crying to ‘the gubmint’. Go run for public office, even.

With every post you’re sounding more like a shill for CREA.

#207 Dave in Sylvan Lake on 04.18.15 at 2:04 pm

@#197 Sheane Wallace on 04.18.15 at 12:38 pm

“#178 Slimmer on 04.18.15 at 9:13 am
http://www.motherjones.com/kevin-drum/2015/04/economic-collapse-prediction-minimum-wage-raise

Another good way to help stimulate the economy. Raise the minimum wage.

…and crash small business. No solution. — Garth
………………………..

It is actually the solution. Small Businesses should be viable. If not, they should not exist.

Soon we could be making Indian salaries with Canadian prices.”

Suggesting that increasing costs for businesses is good for the economy and is the “solution” is asinine. Raising costs on businesses, who then pass it onto the consumer, only hurt the economy.

When in economic history have raising costs ever been the solution to an economy?

While inflation has been outpacing income for years upon years, raising costs only creates attrition for the consumer and businesses.

What would be encouraging to see is the repeal of a minimum wage. Under a minimum wage we have disincentivized our the working class (including the youths), encouraged entitlement, discouraged merit and work ethic, increased the costs of living, penalized entrepreneurs, and turned every apathetic loser into a winner.

#208 Vaping Boy on 04.18.15 at 2:05 pm

Maybe all of you that think this post is contradictory to the blog have ‘got it wrong’.

Should these people be able to afford a million dollar home?

Isn’t the question, “Why would they want to?”

Maybe I had too much rye last night…soon I’ll write a book and show you all how to make millions trading bitcoin…but you’re not ready.

#209 X on 04.18.15 at 2:11 pm

We should start a new movement:

#haveamillionbutdontwanttooverpayforhousing

#210 Leo Trollstoy on 04.18.15 at 2:20 pm

This is what SmokingMan is talking about. Follow the robotic indoctrination of society and you get what you get.

#211 Ralph Cramdown on 04.18.15 at 2:21 pm

#199 Republic_of_Western_Canada — “It’s your own collective fault for not showing financial restraint. The reasons prices are so high is because you all just stupidly pay them. Don’t like it? Then convince your cohort(s) not to buy [overpriced] real estate.”

These kids didn’t educate themselves, their parents and their teachers educated them. It wasn’t the kids demanding 5% downpayments, 0% downpayments, 40 year mortgages with the first ten interest only. The kids didn’t demand 25 year amortizations with the rate only guaranteed for the first five, nor did they demand the right to borrow a downpayment from their RRSPs. The kids didn’t demand that CMHC’s board be stacked with real estate developer hacks.

The kids didn’t demand the creation of a “Conservative Housing Caucus” (Google it, it’s a thing). The kids don’t get a lot of meetings with that caucus, but lobbyists for homebuilders, realtors, lenders and mortgage brokers do.

And about those ghost cities in China:
http://www.economist.com/news/briefing/21648567-chinese-growth-losing-altitude-will-it-be-soft-or-hard-landing-coming-down-earth

#212 ANON on 04.18.15 at 2:35 pm

You get a loan, you have to pay it back (i.e. not yours).#donthaveanything
With interest. #thatwhichdoesnotexist.
Conclusion #youhavelessthennothing
Cheer up. It ain’t that bad…yet.

#213 MF on 04.18.15 at 2:44 pm

Great post Garth. I hadn’t heard of this campaign until now.

I am not disagreeing with their message, but overall I see Canadians of all ages trying to come to grips with the new reality. As someone said earlier, these are millennials who did not get the memo yet. The message is quite clear: the game has changed. Whatever worked for our boomer parents is not going to work for us. Our relative wages and job security are too low. We are competing against the best and the brightest the world over, and most importantly, we need to come to grips with the fact the government does not care. It is up to us and only us to learn to adapt. That’s what this blog is all about. I’m willing to bet those 30 year olds do not read this blog.

On the flip side are the majority of older folks forcing us to buy property because well, it worked out well for them. These people did not get the memo yet either, and their advice is toxic.

#16 PM

Solid post PM. I think our whole generation is frustrated here. Especially those of us in our late 20’s early 30’s, the prime demographic for household formation. Careful though, the more we complain housing is “so expensive and I want it so bad”, the more smug existing homeowners and the RE industry becomes. I work with the public and I hear it all the time:

“I bought this house in 1992 and now its worth 10 million. Look at all these bidding wars. You should really invest in real estate as soon as you can, it only goes up etc.”

Just ignore these folks, read this blog, and fight the market by renting, saving, and learning how to invest the difference.

#125 DonDWest

Also a great post DonDWest. The only way to win at this rigged game is to not play. I’m becoming ever more detached as well. I am putting my faith in financial markets though. You have to put faith somewhere, I suppose.

-From yesterday-

#120 Mike S

Thanks for the advice!

Lol yeah I must have missed that post about self exile. Glad he has returned though.

I think I am going to stick to 6 months to one year intervals for rebalancing and let cash reserves build up in the meantime.

#118 HD

Yes. BMO Investorline. All ETF’s.

Sounds good. I will let some cash build up. Thanks for the great response.

MF

#214 PM on 04.18.15 at 2:49 pm

The government is not there to smack down anyone you don’t happen to like. If you don’t agree with something, fix it yourself instead of closing the door and running away from it by crying to ‘the gubmint’. Go run for public office, even.

Individually, I’m working on it.

Hard to blame millenials for the policies of the government. Most of the choices the helps stoke the real estate market were make a decade ago before we could vote.

I’m not asking for direct price caps or market interference. That said, the country is not a vacuum and the market is a sandbox. There are controls available that would restrict the run away borrowing for housing. The government chooses not to use those because an inflated real estate market bouys economic numbers giving us an illusion of prosperity.

#215 Blobby on 04.18.15 at 2:51 pm

#dohave1million

(In various places)

Dont own property in vancouver – I prefer to rent.

#216 Republic_of_Western_Canada on 04.18.15 at 3:02 pm

#202 Dave in Sylvan Lake on 04.18.15 at 1:52 pm

Garth, I have not heard one factual or statistical point from you on why the US FED will raise interest rates in 2015.

According to Bernanke’s blog, the Fed does not initiate or fundamentally set market rates. They simply try to estimate where bond-market based rates will be, and set their own rates to approximately follow.

Based on data that they had when interest rate statements were made, they very probably assumed global bond markets would pump U.S. rates higher in the latter half of this year.

If you believe otherwise because global bond market indicators now tell a different story, more power to you. And if you’re right and they’re wrong, you could make a lot of money on that bet.

#217 Republic_of_Western_Canada on 04.18.15 at 3:09 pm

#209 Ralph Cramdown on 04.18.15 at 2:21 pm

#199 Republic_of_Western_Canada — “It’s your own collective fault for not showing financial restraint. The reasons prices are so high is because you all just stupidly pay them. Don’t like it? Then convince your cohort(s) not to buy [overpriced] real estate.”

These kids didn’t educate themselves, their parents and their teachers educated them.
[..]

To do what? Buy something that is ridiculously overpriced and essentially unnecessary? Or to throw away a young life by getting married into a debt slave position?

I thought we all saw through that particular ruse by the 1970’s.

#218 Leo Trollstoy on 04.18.15 at 3:31 pm

But I want more, I want to own a little tiny piece of the city I love, and I don’t think I am an entitled whiner to say it.

Perhaps you don’t understand the meaning of the term.

http://cdn.someecards.com/someecards/usercards/MjAxMi0xODhkNjFmNjc2NDMwOWI3.png

#219 Ralph Cramdown on 04.18.15 at 3:38 pm

#205 Dave in Sylvan Lake — “Suggesting that increasing costs for businesses is good for the economy and is the “solution” is asinine. Raising costs on businesses, who then pass it onto the consumer, only hurt the economy.”

And where do these consumers get the money they spend at those businesses?

Which countries are the most innovative, the most inventive, productive and produce goods and services with the highest value added? Countries with high labour costs. Business owners with low labour costs don’t bother trying to increase labour productivity.

Workers at the low end of the wage scale spend much of their money in the local economy — unless they’re TFWs. in which case it gets spent in a foreign country.

Keeping labour costs low for businesses in the non-tradeable sector (i.e. that don’t export or compete with imports) shouldn’t really be a policy priority. It’s just a wealth transfer from the servant class to those who employ them and those who use labour intensive services.

“What would be encouraging to see is the repeal of a minimum wage. Under a minimum wage we have disincentivized our the working class (including the youths), encouraged entitlement”

Yeah, nothing says entitlement like being on your feet all day in a goofy uniform for $7 bucks an hour. Next they’ll be wanting lunch breaks!

#220 Squirrel meat on 04.18.15 at 4:02 pm

All been covered before…..kraft dinner in spades!

https://www.youtube.com/watch?v=LHacDYj8KZM

#221 John Prine on 04.18.15 at 4:02 pm

That’s not entitlement, that’s a overcooked market and it sure as hell isn’t my fault so a little resentment shouldn’t be scorned. It should be recognized as a failing of our leadership to create stable economic conditions.”

—————————————————————-

Couldn’t agree more. You laid it out perfectly, I was a little shocked that Garth was mocking them. This is the exact prime demographic for entering real estate and starting families. Instead housing inflation has completely pushed them out of their local markets and they are (rightfully) mad. This isn’t about entitlement.
++++++++++++++++++++++++++++++++++++

Well said, our kids are 27 and 30, one owns a home with her boyfriend, they have 3 suites to cover the rent, if he wasn’t a carpenter they would not have it….Lots of work. Our other who has a Master’s degree in a marketable profession is just sad that things are the way they are, doesn’t feel she is owed anything.

#222 Paul on 04.18.15 at 4:02 pm

The entitled

Stuff this in your I want a million Hash tag

https://www.youtube.com/watch?v=0f6l1QljpMo

#223 BS on 04.18.15 at 4:06 pm

138 Shawn Allen

Well have not seen it yet…

Life on earth has never been better and yet people see doom.

Just because we have not seen it ‘yet’ does not mean we won’t see it in the future. Some things are inevitable. Has there ever been a bubble where most people cannot see it and or deny it exists?

Yes, life is great for people who have not over extended themselves buying RE and even better for those who had the good fortune to own prior to the bubble and cashed out. The doom part is reserved exclusively for those who continue own RE, not for those who don’t.

#224 BS on 04.18.15 at 4:29 pm

175:

Sorry, I’m not usually successful with links so let me just ask you to search out an article in today’s Toronto Star about the CEO of a smallish company in Seattle who decreased his pay sufficient to pay every single one of his 120 employees a base salary of $70,000 pa.

http://www.therecord.com/news-story/5562386-seattle-ceo-to-cut-his-pay-give-every-employee-minimum-salary-of-70-000/

It will be interesting to see how this plays out in years to come. Will it be good for the workers who got the big raises? Maybe not. How many who have a market job that should pay $35K per year and now make $70K per year will take a mortgage to reflect that $70K salary? Probably most of them. Then what happens if they lose this job or if the company has to restructure these jobs due to financial difficulties or a new management philosophy? These over paid workers will be sent packing (replaced by market wage workers) and will never earn that type of money again, yet will have a massive mortgage. I doubt this will last more than 2 or 3 years yet most will be locked in for 25 year mortgages. Seattle is also pretty bubbly so prices could be down in 2 or 3 years. It would have been better for them to give big bonuses or profit sharing that is not guaranteed so people don’t plan their lives on their current bloated salary as most will.

#225 BS on 04.18.15 at 4:44 pm

184

Who is to say what the profit rate should be?

The business owner has the choice to run the business or shut it down. If there is not a reasonable profit (to compensate for his time and capital) they shut it down and there are no jobs and no taxes paid. With current wages business are shutdown everyday because they are not profitable. Significantly raising the minimum wage would mean lost jobs and less tax revenue. Less tax revenue means less government services for lower income people.

#226 Debt Collector on 04.18.15 at 4:53 pm

I don’t get the problem here. I was born and raised in Vancouver but had to leave in the late 80s because I couldn’t find a job in my field, so to Ottawa I went. Just because you want to live in a particular place doesn’t mean circumstances will agree with you.

#227 Republic_of_Western_Canada on 04.18.15 at 4:59 pm

#213 PM on 04.18.15 at 2:49 pm

[…]
Hard to blame millenials for the policies of the government. Most of the choices the helps stoke the real estate market were make a decade ago before we could vote.

I’m not asking for direct price caps or market interference. That said, the country is not a vacuum and the market is a sandbox. There are controls available that would restrict the run away borrowing for housing. The government chooses not to use those because an inflated real estate market bouys economic numbers giving us an illusion of prosperity.

No one is blaming Millenials for government policy. But it’s their problem for a) continuing to believe the indoctrination of buying into real estate and b) playing into the hands of the Establishment by following their rules. i.e. becoming a poodle, getting married, squeezing out a bunch of pups, buying into debt, taxes, immobility, detached housing and student loans.

Of course the Establishment wants to appease the status quo. It’s protecting itself. Things have been that way since ancient Roman times.

Ever hear of Kent State? Sure it was bloody, but eventually the tide turned. Nowadays, giving up total isolation from the neighbors and i-phones is relatively minor in comparison.

And why would you need a government to control yourself(s)? That’s the part I don’t get. If the whole thing doesn’t work, just side-step it. This is not a new problem.

#228 Sheane Wallace on 04.18.15 at 5:16 pm

#206 Dave in Sylvan Lake

We need economy based on intelligence and middle class, not on slave labour.

Germany is doing it, we can do it as well.

I am not talking about high prices but about paying decent wages, without decent wages there is no middle class and consumption hence no economy. Capishe?

#229 Sheane Wallace on 04.18.15 at 5:19 pm

#218 Ralph Cramdown

absolutely, agree 100 %.

Soon they will be measuring the toilet breaks.

#230 Enoughlaready on 04.18.15 at 5:29 pm

They are ‘entitled’ because they want to be able to own some tiny dog kennel without having to compete against untaxed offshore money that is pouring into this city?!

pleeze

#231 Vangrrl on 04.18.15 at 5:59 pm

I have been living in the Mediterranean for 4 months now and learning more about the mass migration of people fleeing Africa and Libya for Mainland Europe, people with absolutely nothing to lose who will risk getting in a dinghy with little food and water, who have seen their homes destroyed and family members killed. This post today just makes me shake my head- perhaps the African refugees drowning in the seas over here in record numbers should start a little ‘don’t have a home/water/food/future to speak of’ hash tag… Just to make my fellow entitled Canadians see things with a little perspective.

#232 HD on 04.18.15 at 6:45 pm

@ #213 MF on 04.18.15 at 2:44 pm

“The message is quite clear: the game has changed. Whatever worked for our boomer parents is not going to work for us. Our relative wages and job security are too low. We are competing against the best and the brightest the world over, and most importantly, we need to come to grips with the fact the government does not care. It is up to us and only us to learn to adapt.”

As a fellow millennial, I heartedly agree with this.

@ Kim, take notes. Doesn’t matter what you ‘feel’ you ‘deserve’, the ‘economic forces’ don’t care.

MF, further to my answer:

http://canadiancouchpotato.com/2011/02/24/how-often-should-you-rebalance/

Best,

HD

#233 Shawn Allen on 04.18.15 at 6:46 pm

Natural Justice

Vangrrl on 04.18.15 at 5:59 pm

I have been living in the Mediterranean for 4 months now and learning more about the mass migration of people fleeing Africa and Libya for Mainland Europe, people with absolutely nothing to lose who will risk getting in a dinghy with little food and water, who
have seen their homes destroyed and family members killed.

*****************************************
Good post. And I would support their God-given human right to storm the shores of any country that does not have the decency to allow them in or to help out the situation in their homeland.

We have some right to private property in our houses and we have some right as a country to set immigration rules.

But I think BOTH of those rights are subject to those who HAVE being willing to pay taxes and to support a society that allows a chance for those with little or nothing.

If any society or the world at large allows people to starve they should expect those people to do what they have to do for survival of themselves and their children. And if that means they have to storm the shores of countries so be it. And if the poor in any country are subject to starvation, while others live in opulence, expect them to take what they need by force if they can. And if it gets to that point, I think natural human justice and rights are on their side.

So be a little careful all smug richer people. None of us are guaranteed anything if we don’t support a society with at least a reasonable chance for all.

Being willing to pay reasonable taxes and perhaps to support a reasonable minimum wage may be a small price to pay. None of us earned ANYTHING entirely on our own. Without the broader system around us, none of us would have much.

#234 Washed Up Lawyer on 04.18.15 at 6:46 pm

#148 Obvious Truth on 04.18.15 at 12:46 am

“Even stajan found himself shaking the mitts.”
**************************************

A real purse swinging affair.

For some reason a memory was triggered of my being in a Dublin bar in April 33 years ago. The Stanley Cup highlights on the TV did not feature any goals. Just the fisticuffs.

The Irish get hockey.

#235 BG on 04.18.15 at 7:04 pm

#204 alleged hipster on 04.18.15 at 1:58 pm
Don’t know if I can express my thoughts fully, but I’ll try.

Garth, what a bitter, judgmental and mean-spirited rant you have delivered here, in the eyes of this 30 year old.

So we don’t deserve even a decent chance to enter the middle class, or a liveable minimum wage while people like you and your clients earn money hand over fist, taxed at immorally lower rates than our hard earned income, while we can barely even hope to have investment accounts, or housing, let alone the increased TFSA that you seem to glorify.

To people of my generation, it is becoming increasingly clear that we can look to no one in the baby boom cohort for any kind of real democratic support or moral leadership.

Thanks for making it so clear that this includes you.

You jumped the shark today, Garth.

Bye.

You should know that a bunch of my clients making money hand-over-fist and paying immorally low taxes are your age. Think about that. — Garth
————————————————————-

“alleged hipster ” expressed my feeling about this blog post better than I could.
And Garth, the fact that “a bunch” of your clients are 30 something is not meaningful at all.
I’s about the mass, and the wealth gap that you’ve been calling out many times in this blog.
This #DontHave1Million movement is more about pointing at the growing gap than any feeling of entitlement.

We all know about the income gap. Thinking you’re disenfranchised because you can’t have a $1 million house is pure entitlement. Grow up. Or invest. — Garth

#236 Bottoms_Up on 04.18.15 at 7:14 pm

We should start the hash tag:

#RichBlogDog / can’t afford a Vancouver special.

#237 johnk on 04.18.15 at 7:30 pm

My late father-in-law couldn’t buy a home when he was 30 years old either.
Because he was getting strafed and bombed in Europe by a serious war machine. Real bombs, real bullets. The kind that kill people.
But it was a full-time paid job after graduating high school in 1932 when unemployment was 25%.
He got through it alive and finally got a shot at building a normal life in 1946 when he was 32.
Never heard him whine about how tough things were for him between ages 17 and 32.

#238 sudaca on 04.18.15 at 7:33 pm

#231
Mediterranean is a sea. You couldn’t have possibly lived in it unless you were living on a some kind of boat/yacht.

#239 kothar on 04.18.15 at 8:00 pm

You know another entitled group, are the people that always have had home mail delivery. With Canada Post phasing this out, we now have mass movement of people trying to stop the implementation of community boxes in their neighbourhoods. savecanadapost.ca

Now I grew up in a little town in nova scotia, and no one had the luxury of home delivery. All mail went to local post office. Young and old alike had to go their to get mail for eons without any issue. Today for past 10 years here in London southwest ontario, I have had community box, just saunter over and get my mail and all my neighbours too. Yet but 500m away is the “older” housing section (built 30 years ago). They have always had home delivery and now stand to loose it. Plastered on their lawns are signs with above website to “save” their entitlement. Really, is life going to go downhill so much that you can’t walk a little bit to get your mail in a community box, rather than have it hand delivered to your door????

#240 Daisy Mae on 04.18.15 at 8:09 pm

#35 Pete: “I think garth missed the point. The point is even though they make a very good living wage they still can’t afford…”
__________________
Zenge…whatever: “Exactly! If your educated professional middle class can’t afford even basic housing in your major cities you got problems. Garth completely missed it, but of course his ego prevents him from seeing it that way.”

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

Garth didn’t miss a thing. You brats need to get real.

#241 Ogopogo on 04.18.15 at 8:22 pm

I’ve read every single comment up to now, as usual. Those who took umbrage and even offense to Garth’s satirical take on the millennial twits’ campaign all invariably come back to the same point: at the end of the day they want to own a home.

What a pathetic generation of sniveling, craven shelter-seeking moles. You should be travelling the world, experiencing other cultures instead of crying over bubbly real estate and being “left out” of the tulip run.

Disgusting. Thank goodness for the other more worldly millennial I know who are essentially culture jamming the bubble and even monster car loans, etc.

Rent, and be free. Vultch when the time is right. Invest. Be happy.

#242 Daisy Mae on 04.18.15 at 8:24 pm

#45 Zedgt87: “And there’s every right to be angry. It doesn’t mean they’re entitled. It means our governments have failed us. At the national level the central banks and the CMHC have made sure that anyone with a pulse and an income statement can be approved for loads of cheap debt.”

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

True. Our federal government is seriously lacking…but we didn’t have to or need to bite.

#243 Mike T. on 04.18.15 at 8:33 pm

see, what I hear is people want a house because it means you own a house, you work, one day you’ll be rich just for existing in a house and going to work, worry free, I’m smart I deserve this path

that’s gone, that path is gone for a generation while this sorts itself out

the smart play is to not own a house, or at least to not buy one now

#I’m.smarter.than.the.debttrap.and.have.freedom

#244 Daisy Mae on 04.18.15 at 8:37 pm

#59 Drunk: “This is the exact same thing you’re complaining about since years on this blog, and the only thing you do is making fun of them and ridiculize them. You don’t even know their story….”

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

WHAT ‘story’? These poor babies can’t afford to buy a house in Vancouver? So what? Move to the ‘burbs. DO something…and quit complaining.

#245 Daisy Mae on 04.18.15 at 8:42 pm

#62 Shaun: “No granite? That’s unthinkable! Be assured the granite will be installed before too long.”

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

Granite is already passé….

#246 Marco on 04.18.15 at 8:47 pm

@Daisy Mae

“True. Our federal government is seriously lacking…but we didn’t have to or need to bite.”

I agree that we didn’t have to or need to bite but the government isn’t lacking. Housing prices in Canada were starting to correct in 2008.
Letting it correct would have been a great thing and we wouldn’t be where we are today.
Unfortunately Harper and gang had to orchestrate maneuvers to avoid a recession and get the consumer buying houses and propping up the economy, which gave him his majority, and smiles on homeowners faces. This has created a massive property bubble especially in desirable cities in Canada.
Now it seems it will fall under its own weight.
Design by Harper.

Cheers.

#247 Kim on 04.18.15 at 8:52 pm

As a Gen-Xer, I have been known to diss those so-called lazy, entitled millenials. But now that a couple of posters have assumed that I am a millenial and thus deserve being insulted, called names and accused ‘horrors’ of having a minimum wage job, I am beginning to feel a lot more empathetic towards them.

I am curious as to why this movement has created so much anger in people? Why the insults? Seriously, people – aren’t we all in this same sinking boat together?

I HAVE done the world travelling, gotten the degrees, live frugally and invest monthly in balanced indexed funds as per the Couch Potato Philosophy. I do have the degrees and the well-paying job. I am happy and enjoy my city and have hobbies, friends and a good life.

I work hard, and have worked hard to achieve my goals. And one of my goals is to one day own real estate in my hometown, Vancouver (and not a house for the 1000th time). Condos are also outrageously expensive here too!! I am working and saving and trying but the goal line keeps getting moved and, I fully admit, that is frustrating, scary and makes me sad.

One thing I know for sure, when my boomer parents were newly married and shared their aspirations of working towards buying a home, no one called them entitled brats.

#248 devore on 04.18.15 at 8:52 pm

#10 everythingisterrible

They aren’t complaining about their salaries, they are complaining about the cost of housing – you write a blog everyday in essence, doing the same thing.

If that’s what you think, you’ve missed Garth’s points entirely. I don’t see complaining, I see facts, well reasoned opinions, and plenty of alternatives and options. You might be right if you saw Garth holding up a hashtag sign, but you won’t because that’s not what reasonable people do.

#249 natrx on 04.18.15 at 9:09 pm

Funny that the Doctor that inspired this is 32 and still has 3 more years in residency! Of course if you’re a Resident you’re not going to make much. Wait a couple of years, you know, until you’re in your 40’s.

Also, I’m not familiar with Vancouver but I get the sense everybody wants to live in the best area. Here in Toronto, there are alot of people that have moved to the Burbs where it’s much more affordable.

#250 Kim on 04.18.15 at 9:13 pm

#248 devore

Here are the ‘reasonable’ actions I have taken so far:

vote – check
write letters to politicians at all levels of gov. – check
write letters to newspapers and blogs – check
get educated, get a job, make good money – check
live frugally and save money monthly -check
rent & decorate it etc to make it feel like home – check
save a 20% downpayment (total needed growing monthly) – check

So, please enlighten me.

What other ‘reasonable’ actions can I take that would work and make sense in this obscenely unreasonable situation?

#251 mdm on 04.18.15 at 9:22 pm

#245 Daisy Mae…stainless steel is passe too–hear appliances are moving towards the pastels again! people overspend on appliances as it is….has anyone mentioned they are not built to last anymore? same as houses, not built like they used to be either! so fitting Garth refers to them as particle boards…they aren’t much else

#252 devore on 04.18.15 at 9:29 pm

#34 SI2K

Time to stop bashing the liberal arts. See the backslide in race relations, gender equity, and general human decency we’ve had during this long economic slump? Humanities and social sciences cuts, full stop. That’s why they’re called, you know, the humanities. We help make people into decent human beings.

Wow, you need an education for that?

Education will not change you into a caring person, if you were not before. Neither will home ownership, so you can stop with all that community nonsense too.

#253 waiting on the westcoast on 04.18.15 at 9:31 pm

#129 greenpotato on 04.17.15 at 10:42 pm

“Looks like some wise elders might disagree with you….
http://www.nytimes.com/2015/04/16/opinion/nicholas-kristof-starving-for-wisdom.html?rref=collection%2Fcolumn%2Fnicholas-kristof&_r=0
Starving for Wisdom
After all who wants to inhabit a society full of modern day Philistines?”

Interesting article…. Did you note that it said the soft skills from a BA are advantageous when coupled with the technical skills of hard sciences…

I think you missed my point. I did not say people shouldn’t take a liberal arts program… Only to accept that it has little value on its own. The reality is society needs creators. It’s great if you have soft skills to smooth the waters and have an open mind to see a problem from many perspectives… But – it is the creators that develop the innovations that build our country.

And – it might be a little self serving for a journalist with a poli sci degree quoting a Harvard prof with an economics degree that a liberal arts degree makes you wiser… Did those BA milennials demonstrate wisdom with their twitter campaign?

Again – I have a BA and really enjoyed the experience and studied what interested me. But I get it’s limited value in the marketplace and don’t think I am a special snowflake because of it.

My reality is to look how lucky we are in Vancouver… We are able to rent for half the cost of owning!

#254 AB Boxster on 04.18.15 at 9:31 pm

Millennials,

Best way to get your revenge on the boomers is to start a movement.
En mass, if your entire generation were to stop buying their houses this would be the best payback.
Just refuse to buy.
Let the boomers with all their wealth in their houses have their homes.
Forever.
Let them be 85 in their 3000 sq ft monstrosity with 4 bathrooms and a walkout.

Or Stop consuming.
Stop buying crap from countries or companies that sell you crap.
Stop supporting businesses that pay minimum wage.
You will be noticed if you stop buying that mocha latte everyday.

Or vote. Not for the current folks, the are all boomer aholes.

There was a time that a generation changed the world.
They stopped wars and brought down governments.
They did not achieve this playing on facebook all day or watching youeffintube all day.

Collectively you have power.
Use it.

Give a shit about something enough to make a change.
And listen to Zepellin too.
Today’s music is shite.

#255 devore on 04.18.15 at 9:32 pm

Oh, I’m in transit between Seoul and Hong Kong presently. When I return to the best place on earth, the laughter whenever someone utters “world class” will be coming from my direction.

#256 Bobs ur uncle on 04.18.15 at 9:34 pm

To all those that were offended, newsflash: Garth can be a bit of a dick sometimes. He doesn’t make his living from this blog so don’t expect any new culpa as he doesn’t really care what you (or I) think. So get used to it, or find other things to do with your time.

#257 Fuzzy Camel on 04.18.15 at 9:34 pm

What a bunch of pansies. The 30 something social justice warriors earned a PhD is whining and snivelling, that is it.

Go build a house somewhere, there is tons of land in Canada. Oh wait, that social studies degree is useless and they are too stupid and lazy to build a house.

Go feminism, always the victim aren’t we?

Wynne is now making OHIP pay for gender re-assignment surgery. What a productive use of the struggling tax payers money.

Canada is toast, and when rates go up, it will be officially toast. Garth, you will be vindicated shortly. I’d personally diversify out of Canadian dollars, because I think Harper/Wynne will kill the dollar before they do austerity.

If time is money, then borrowed money is borrowed time. So we are running on borrowed time, not good.

#258 Bobs ur uncle on 04.18.15 at 9:35 pm

*mea* culpa

#259 Republic_of_Western_Canada on 04.18.15 at 9:38 pm

#247 Kim on 04.18.15 at 8:52 pm

[…]
I HAVE done the world travelling, gotten the degrees, live frugally and invest monthly in balanced indexed funds as per the Couch Potato Philosophy. I do have the degrees and the well-paying job. I am happy and enjoy my city and have hobbies, friends and a good life.

I work hard, and have worked hard to achieve my goals. And one of my goals is to one day own real estate in my hometown, Vancouver (and not a house for the 1000th time). Condos are also outrageously expensive here too!! I am working and saving and trying but the goal line keeps getting moved and, I fully admit, that is frustrating, scary and makes me sad.

So move to Seattle or Guangdong province or Malaysia or wherever, and buy something. Just because you started out in Vancouver doesn’t mean it owes you anything. Besides, it’s really not all it’s cracked up to be.

I’ve known 4 different Vancouvers. Over the decades, it has dramatically changed. It mostly just gets more crowded, expensive, congested, worn out, overdeveloped, less white, more crime-ridden, and now just tries to tag along whatever major trends are happening in other larger centers.

No reason to believe it will snag at just the point which you would like to remember it, whether you buy some condo or not.

#260 AB Boxster on 04.18.15 at 9:40 pm

whoops Zeppelin

#261 M on 04.18.15 at 9:48 pm

Gartho buddy, you DID NOT miss the point. You are spot on.
The lil’ schmucks are complaining for being THEMSELVES left out of the housing porn. They are not scandalized by the fact that at current rates of pay a mid level dig in Mississauga should be NO MORE THAN 210 K.
They are NOT scandalized by the irresponsible binges of Government AND the moronic public.
They don’t realize how actually lucky they are for being forced to do the right thing.

Democracy allows for collective madness to happen. Nothing wrong with that. The echo in history will be ear shattering.

I’m with you all the way

#262 Bottoms_Up on 04.18.15 at 9:49 pm

#240 Daisy Mae on 04.18.15 at 8:09 pm
—————————————————–
That’s a little harsh don’t you think?

From another perspective, would you actually consider uprooting from another part of Canada to take a job in Vancouver (at the same pay)?

Most people wouldn’t, for the mere fact that unless you’re an actual millionaire, you will never be able to afford a home there.

That’s a problem. But as another blogger indicated, you can’t hope that the circumstances around you suit you….so take action and LEAVE.

#263 Bottoms_Up on 04.18.15 at 10:03 pm

#175 LP on 04.18.15 at 8:16 am
———————————————–
Your Seattle CEO link (ps. he basically gave up his entire salary):

http://www.cbc.ca/news/canada/british-columbia/gravity-payments-ceo-dan-price-of-seattle-cuts-his-salary-to-boost-company-s-minimum-wage-to-70k-1.3035051

“I’ve heard things from, ‘I can finally afford to move out of my parent’s home,’ ‘I can finally afford to have a baby’, we have some people that are parents and really want a good education for their children and feel like they can finally afford that.”

Before the announcement, the lowest salary at the company hovered around $34,000 per year.

#264 BS on 04.18.15 at 10:07 pm

Kim 247:

I work hard, and have worked hard to achieve my goals. And one of my goals is to one day own real estate in my hometown, Vancouver (and not a house for the 1000th time). Condos are also outrageously expensive here too!! I am working and saving and trying but the goal line keeps getting moved and, I fully admit, that is frustrating, scary and makes me sad.

The sad part is one of your goals is to own a condo. I can tell you as a former owner of many condos and now a renter of a condo, renting is much better. If you own a condo you have to deal with dysfunctional strata’s and incompetent property managers who make major financial decisions on your behalf (mostly poor ones) and simply want to control your life with new rules. You have the continuos threat of new buildings blocking your view, major issues with the building developing and increases in strata fees and special assessments. If you get a nightmare neighbour you are trapped to live with them because it will cost you $40K plus in transaction costs just to move. There are so many things that are out of your control when you own a condo. I can see the advantage to owning a SFH but with a condo there really are not any advantages compared to renting. Only negatives. Consider it a blessing you don’t own a condo.

#265 45north on 04.18.15 at 10:13 pm

#DontHave1Million

pretty funny

up to now expectations have been rising and they have been satisfied. generally speaking. In the 50’s (1950’s) the expectation was 25% down payment and most people were able to save and buy a house. Gradually the down payment was lowered and most people were able to save and buy a house. This has now gone on for 60 years. Over 60 years. That’s a long time. Expectations are woven into the fabric of society. Into music, movies, books. So today #DontHave1Million means that expectations are not being met.

Garth has been saying that expectations won’t be met. You cannot keep on selling more expensive houses. At some point there won’t be buyers. Sounds like we’re here.

#266 Bottoms_Up on 04.18.15 at 10:17 pm

#161 Ralph Cramdown on 04.18.15 at 1:55 am
———————————————————
Vancouver has been unaffordable for a long time. 20 years ago it had affordability metrics that are similar to those in Toronto today.

This problem is nothing new, it’s systemic and integrated in the local real estate market.

#267 H on 04.18.15 at 10:19 pm

More Yellow Peril. Give it up. You are as tiresome as you are wrong. — Garth

Actually I have no problem with wealthy Chinese buying up property.

Seems as though you do however. You very well know the bulk of the reason for the rising prices in Toronto and Vancouver is coming from cash from abroad. Not sure why you chose to discredit it though. Puzzling. Its the facts.

Hardly. The locals buy 95% of the houses. — Garth

#268 Entrepreneur on 04.18.15 at 10:22 pm

When more and more youth, especially the educated, cannot afford a house/home one should look at the big picture.

In my area, Costco is controlling the gas prices and everyone is going there. The other gas stations are empty (and other businesses). Are they being sold to foreigners? I thinks so.
Also, the government is expanding it’s office for foreigners on upper Vancouver Island.

#213 MF…”our government does not care.” I totally agree. We are on our own. They only care about votes and to make sure they balance the budget before election time.

#269 Just Do It on 04.18.15 at 10:26 pm

At #137 A Yank in BC.

I’m not being smug… quite the opposite… I’m offering a path… and some hope… based on my own experience… which happened to be a step by step approach… and worked out very nicely… partially because of the prevailing circumstances… partially on account of our hard work and ambition.

My post happens to be one of the few positive… based on a true story… encouraging. post on this link… it;s interesting that you take exception to it… and consider my words of encouragement as being smug… have a re-read… and Just Do It.

#270 45north on 04.18.15 at 10:27 pm

Nora Lenderby: (formerly Sue): This “I don’t vote” attitude is just silly – it’s basic passivity and pretend-cynicism-sophistication. It’s also facile and lazy. You have to think, compromise, make a choice.

vote (verb, imperative). go into the polling station get your ballet and mark an X. Hand it to the officer. Look around, see the people. These are the people that elect governments. If you want change, these are the people you have to convince.

#271 vancityisgreat on 04.18.15 at 10:27 pm

Today in the GVRD it was 18 degrees or so. A warm breeze blew across the ocean and in burnaby, i spent the day with my son in the park, him playing and me drinking beers.

I am a renter and proud of it. I live in one of the best climates in canada. Lots to be upset about, but I don’t care at all. Im poor! You can’t put a price on the wind dancing through the leaves

#272 H on 04.18.15 at 10:28 pm

Between 2002 to 2011, US$1.08 trillion in capital has left mainland China illegally, according to the most updated report by Global Financial Integrity, a U.S.-based group.

Technically, there is a US$50,000-a-year limit on cash that can be taken out of China, but buyers have long got around this by using friends and relatives to move chunks of money under different names. Some also tack personal cash onto legitimate export and import transactions by using fake invoices.

Canada does not have rules about foreign ownership of real estate and does not track purchases as such.

Give it a rest. Real estate costs too much because Canadians are fools. Look at #DontHave1MIllion. — Garth

#273 plebers on 04.18.15 at 11:07 pm

“#192 TSH on 04.18.15 at 12:05 pm
Garth,

………… Should I protect my gains with a hedging strategy of some sort?

Ask your advisor. — Garth”

Garth, I think he just did!

#274 plebers on 04.18.15 at 11:09 pm

#265 vancityisgreat on 04.18.15 at 10:27 pm
….., i spent the day with my son in the park, him playing and me drinking beers.”

Isn’t drinking out of residence in illegal?

#275 Randy Randerson on 04.18.15 at 11:15 pm

Been busy these last few days. I still can’t believe my cohort (I’m 35) believes that when you graduate from university, you’re supposed to have your own SFH. Where on our Charter of Rights and Freedom does it ever says that a Canadian has rights to a house in Vancouver?

#276 Charter of Rights and Freedom on 04.18.15 at 11:48 pm

#275 Randy Randerson

Where on our Charter of Rights and Freedom does it ever says that a Canadian has rights to a house in Vancouver?

———-

Nowhere… mind you, every single thing you find our Charter of Rights and Freedom is also coming just from people, who decided to grant some entitlements.
None of those exists, of course, in the universe… it’s all construct of handful of people, who decided “because we say so”.

#277 Sheane Wallace on 04.19.15 at 12:07 am

We all know about the income gap. Thinking you’re disenfranchised because you can’t have a $1 million house is pure entitlement. Grow up. Or invest. — Garth
…………………..
Indebting population is policy. So get rid of politicians who promote it.

Housing should be affordable, not expensive.

#278 AisA on 04.19.15 at 12:08 am

“Give it a rest. Real estate costs too much because Canadians are fools. Look at #DontHave1MIllion.” — Garth

The honest to goodness root of the matter.

Whoomp there it is.

#279 fools on 04.19.15 at 12:16 am

Give it a rest. Real estate costs too much because Canadians are fools. Look at #DontHave1MIllion. — Garth

—-

Garth you may call these people fool, but what they are saying clear and loud is that they are not buyers, because: #DontHave1MIllion.

So these people might want to be fool, but they are actually not.

Who are the real fools then, those who do have the million dollar to buy and be real fool?

Which is raising an interesting question: if someone was able to put together so much money how likely is it that they are just lucky, but financially illiterate fools?

#280 Thomas on 04.19.15 at 12:31 am

This is old now, but relevant to this post:

http://www.crackshackormansion.com/

So many posters have missed the point here. Young people aren’t saying they want to be millionaires, they’re saying they want normal housing options that are unavailable because they’re not millionaires. Look at the piece of sh*t houses in the link, do they look like fancy, diva homes? Not even close.

Garth, I respect your blog and your attempts to help people with financial decisions, but your bashing of millennials is disappointing. For someone who has demonstrated such forward thinking, you really show your age when it comes to this topic.

#281 Blaine Bellichuck on 04.19.15 at 12:39 am

Don’t have front row playoff tickets and a penthouse condo #donthaveafewmillion BSC of Economics and MD of Education HS Grad..

I really can’t believe these people. What is their end goal with this campaign? Will they conclude that they don’t have enough education and more is the answer? No..the answer is to go to a market where it is less competitive if they really need property!

#282 Lady in Red on 04.19.15 at 12:44 am

Uhhh Garth – you got this one completely wrong!

Yes, there are many millennials who feel entitled but these people are simply stating that with hard work, they still have no future in their own communities. You are so stubborn when it comes to your thoughts (vs the truth) on YVR/YYZ housing so your point of view on this shouldn’t really surprise me. BTW, I’m a FT working millennial who owns a west-coast home that is now worth almost 2.5x the amount my husband paid 10 years ago) Just 10 years ago young professionals could afford homes in safe neighbourhoods. Does that help you understand why people are frustrated?

Still love your blog, but you really annoyed me with your bias on this post.
:)

#283 Steve French on 04.19.15 at 12:46 am

they should combine the women of #donthave1million, with #nakedselfies …

= #nakedafraidandwithout1million

#284 Rexx Rock on 04.19.15 at 12:49 am

I went to a Del Walmsley 2 day seminar in Houston on investing in real estae.He became a multi millionaire through real estate.While talking to him about Vancouver and Torontos sfh being over 1 million dollars his exact words were oh the greater fool theory.

#285 Rebecca on 04.19.15 at 1:08 am

Think you missed the mark on this one, Garth. Millennials here are pointing out how unbalanced our real estate market is in Vancouver when our average working professionals can’t afford our average homes.

#286 Canada's Decline on 04.19.15 at 1:19 am

I wonder when Garth will write a piece on the “entitled” bankster cartel in Canada. Just what was the quid pro quo for introducing 0% downpayment 40 year mortgages some 10 years ago now anyway? Is stealing future growth by goosing credit markets a form of entitlement?

For me, healthy communities need engaged stakeholders who are civic-oriented and do things like vote help maintain a political debate/discourse. A nation of transient renters with a concentrated lordship of property owners will not do that, at least not as effectively as a nation of community-level engaged home-owners.

Things are rapidly coming to the end-game.

#287 Vicpaul on 04.19.15 at 1:56 am

#144 Arch Douche

We learned poor lessons about what matters in life and are obsessed with measuring up against others materially….

….life is not an even glide path to easy street.

————————–

Word.

#288 DisgustMadeMePost on 04.19.15 at 3:20 am

Geeez.

Does she want a million dollar house?? Or just a house/home to live in? I’m guessing she wouldn’t mind if the home only cost $300k. How far would she have to go to be able to buy a home for 2-3 x her yearly salary?

No, no one owes her a house. She can rent, and it’s a good time to be doing that.

But the numbers are SO far out if whack that it’s understandable if young people are frustrated.

I was making $12.50 /hr when I bought my first place in the 80’s. Can’t even believe it was possible… It was hard, with lots of sacrifices, but it was possible. I think that’s one of the problems. The possibility seems to be slipping away. Seems to have happened very quickly and the current younger generations haven’t had time to adjust. Their parents owned, that’s what they know.

And before another person casually throws out there, JUST LEAVE, I’d like them to think about their words. It’s not easy to up and move away from your family, friends. Many people have mothers and fathers, brothers, sisters , whole support systems in place in the areas they grew up. So please stop throwing that out there as if it was easy. Sure, mobility is good, but a rich life with your family around you is better.

#289 James Kook on 04.19.15 at 4:59 am

No, Garth is not racist. He is an wealthist, sort of.

Entitled or not entitled.
The question is, who decides a person is entitled to something or not?

Some time ago, Nazis took power to decide who is entitled to breeze and who is not.

If you are not a Nazi, you must admit that we are equally entitled to everything in this world.

Just matter of free competition.

#290 Bottoms_Up on 04.19.15 at 7:27 am

#288 DisgustMadeMePost on 04.19.15 at 3:20 am
———————————————————–
It’s not about thinking it’s easy to leave.

If one chooses to stay (and rent) due to wanting to be around their friends and family, that is their choice. But staying must be weighed against their desire to own their own home. That is simply fact, and given the market dynamics are unlikely to change in Vancouver, it is something that should be (and is) a serious consideration and option for many families.

#291 maxx on 04.19.15 at 7:43 am

#46 Daisy Mae on 04.17.15 at 7:26 pm

‘Professional Communications Consultant’?
What the hell is that? LOL

Bingo.

Let’s see, charm offensives, damage control, social engineering, phony optimism in the face of economic crises, partial stats in job creation, massaged stats, sales, HR support, ie “Good News! The corporation will be rolling out amazing, new software to enhance operational effectiveness……”, ie, more of you are out the door soon.

Communications consultants obfuscate. Fortunately, most of their “messaging” is transparent as hell.

#292 Bottoms_Up on 04.19.15 at 7:47 am

#250 Kim on 04.18.15 at 9:13 pm
———————————————————
The last reasonable thing you can do is accept that the Vancouver real estate market is unreasonable and not fair and not likely to change.

#293 Ralph Cramdown on 04.19.15 at 8:08 am

I love ‘Just Do It’ — an inspiration to us all!

Want to own a nice house in Vancouver? Here’s the recipe:
– Move 8 times in 25 years
– spend half your life living in a construction zone
– constantly be dealing with contractors, juggling maxed lines of credit and stretched cashflow
– keep levering up every time you move, so you’re always at risk of being underwater if a correction — or worse yet, a bear market — catches you, leaving you stuck in your current home for a decade, bankrupt, or unable to refinance
– get bailed out by 8%/year real estate appreciation due to falling interest rates and, ahem, other factors

Truly, an inspiring story of hope.

#294 maxx on 04.19.15 at 8:12 am

#83 TheAwakenedOne on 04.17.15 at 8:44 pm

” Dogs or Banks? Pick one, folks…”

Love the furballs, but I’m allergic- to both. So, unequivocally, dogs.

#295 Lisa's Pieces on 04.19.15 at 9:20 am

I read economic articles across a wide spectrum. Businessweek, the Economist, Globe and Mail business section. I’ve hung out online with right wing libertarian day traders. I’ve read a lot of Paul Craig Roberts. I am in my late fifties. My husband was in on the ground floor of the tech revolution in Seattle, beginning in the mid eighties, in Seattle. I am wealthy. But hold your fire and let me explain… It was luck. My husband would be the first to admit it. This darling man who just recently passed away suddenly, in his sleep, advocated for a much higher minimum wage, despaired what was happening in America, the sellout of the country to the .0001% a war based economy etc.. When we realized that the dot com bubble was going to collapse, we started making exit plans to leave the country as we figured a total collapse could ensue..as it nearly did a few years back.

I feel now that all that I feared down South is taking shape here and it’s not just the .001% of Canadians having a domestic impact. It’s the .001% of international elites creating bubbles in a few different sectors, particularly real estate. It is a topic gaining more and more traction in even the most conservative careful publications. It is not based on racial intolerance but an understanding of concentrations of capital and international money flows in low yield environments.

To deride the younger generation who have been mightily patient and scaled their expectations back to an almost rice and beans existence, with no hope of ever being able to afford to have children, seems rather self serving. It sounds very much like the old, “when I was a kid your age, I trudged 10 miles in the snow to school with hot potatoes in my pockets to stay warm.!”

In reality, this was my life and we were lower middle class. “When I was your age, I was well dressed well fed. My mother stayed home and provided a stable environment. We took a few European vacations, owned our own home (easily) had 2 cars.” My father retired with an indexed pension from the military in the early seventies.” Life was SO hard! Laughable.

Fade the fogies my age with their bombastic nonsense about ‘working hard to get where they are and going without’. They have NO idea they are not in the real world anymore.

#296 PEI reader on 04.19.15 at 9:36 am

We all need to have much more of a caring approach for all our fellow citizens to issues like this.

As some have said here, is it really reasonable to tell people to move far away to find affordable housing?

If ‘how you spend your time’ is your greatest asset, as Garth and others have said, does spending that time alone and isolated from your friends and families in some far-away ‘affordable’ town really make sense?

Therein lies a fundamental contradiction and inconsistency with this kind of message.

Does striving for just a decent middle-class lifestyle at age 30, the kind the boomers easily had landed in their lap when they were barely 21 with barely a pulse, make one ‘entitled’?

Should we say the 700 migrants who died today in a boat capsize as they were striving to find a (half) decent lifestyle were also ‘entitled’, and therefore ‘fools’ not worthy of our consideration?

Where does it end, this lack of compassion and understanding that the welfare of our fellow citizens is also our own?

Garth, you are not the source of all this forty year old toxic neo-conservative bullshit, and I don’t mean to demonize you, which would not be fair.

But you should reflect on the degree to which the kind of judgmental rhetoric you engage in here is a powerful enabling force for that kind of evil, society-destroying dogma.

I understand you don’t have kids, Garth, and that is all good and I hope you have a great life with your partner and family.

But if you did have kids, I really don’t think you would be writing anything like this about the younger generations.

I encourage you to spend some quality time with younger people. It’s good for all of us.

Patronized by a 30-year-old. Amusing. — Garth

#297 when I was a kid your age on 04.19.15 at 9:45 am

#295 Lisa’s Pieces

Thank you! Exactly my sentiment.

#298 Oot on 04.19.15 at 10:05 am

https://ca.news.yahoo.com/700-feared-dead-migrant-boat-sinks-off-libya-075449492.html

Helping Libyans escape to Europe is not correct analysis of the problem. Post #233 “storming another country” is not justice. It omits the big strategic game, which is in play.

Europe, Canada and USA should not have bombed Libya and installed Al Qaeda ISIS.

Obama is doing jihad on us (evidence:Benghazi, Egypt, Syria), and reforming the muslim Caliphate with the muslim brotherhood across Northern Africa through to Turkey, while pretending to install democracy. Egypt military kicked Obama in the teeth; ie. resisted.

#299 dogman01 on 04.19.15 at 10:25 am

To the Millennials whom do not vote or get involved:

The baby Boomers and elderly vote.

Why do high house prices not matter – they already have one

Why increase TFSA?

Why change RRIF rules?

“When the Hockey Parents Association is in charge, don’t expect a lot of money left over for ballet”. – Don Pitts

#300 Lisa's Pieces on 04.19.15 at 10:32 am

#297

When I Was A Kid Your Age,

Thank you! If you haven’t already, please share your own story! We need far more compassion for the disenfranchised, and deeper understanding of the very real agony of the majority, the vanishing middle class here and deepening poverty internationally.

We also have to appreciate the fact that as the middle class are kicked down the class ladder, the rungs are being artfully removed so they can’t climb out.

It is ridiculous to suggest that those forced into the only sector that is maintaining some resilience; the service sector, simply “do what WE did. Start your own business !”

With what? In order to succeed as an entrepreneur capitalist, you need access to capital! Plus you need to be in an economic atmosphere where there are potential niches. Every niche, every nook and tiny cranny has been more than exploited. These are the typical easy answers people resort to who grew up, matured, had families in easier times.

#301 crowdedelevatorfartz on 04.19.15 at 11:05 am

@#296 PEI Reader
Wow!
Where do I begin?Your comment…
“is it really reasonable to tell people to move far away to find affordable housing?”
Your missing the point.
ANY “affordable” housing isnt a “right”. Unless you were rich or a farmer. Most of the population before WW2 rented. The whole middle class “dream of home ownership” was created after the second world war was over and MILLIONS of battle hardened, disciplined veterans returned home to no jobs, and an economy that was winding down. The politicians were crapping their pants. Create work. Keep em busy. Keep em out of trouble.
Personally I moved from the Canadian East coast looking for work…all over Canada. Eventually arrived in Van.
Next comment.
“Does striving for just a decent middle-class lifestyle at age 30, the kind the boomers easily had landed in their lap when they were barely 21 with barely a pulse, make one ‘entitled’”
Whats YOUR version of a “decent middle class lifestyle”? One minute your arguing for “family time is most important” the next your demanding a house and a lifetime job dropped in your lap at age 21″.
Soooo you want a great family lifestyle AND a great job AND a house…..all before your 30.
What IS in the well water in PEI anyway? LSD?
Sorry buttercup, life isnt a bed of roses.
Im a boomer. Born at the end of the boom. So I had to grovel, kick, scratch and gouge for crappy jobs that barely existed because I had an entire cohort of Boomers ahead of me AND the east coast was not the best place to “job search”.

The rest of your nattering pseudo intellectual whine is pathetic.

Another day, another boatload of refugees decide to hop into unseaworthy boats to flee the tyranny of THEIR corrupt govts and cross illegally into another country’s waters and die…..Thats OUR fault? Please.

If you want to engage in spit flecked invective to save the world may I suggest you contact Earth First. They’re always looking for money.
Boomers , Garth, Canada, none of us are to blame for anyones elses crappy financial descisions.
And goodness knows it isnt just millenials making crappy financial descisions if any of my Boomer/Millenial/Gen X/GenY friends are any indication.
Personal choices. Get YOUR finances in order first.
Then save the world.

This is a financial site. Designed to help some of us make wise fiscal choices all while being written in easy to understand english. Thats all.

P.S. have the snow banks started melting in Charlottetown yet?

#302 Now I'm Confused on 04.19.15 at 11:27 am

I read this blog everyday since it started. (Before that when it was politics too) But this thread is staggering drunkenly all over the place. Kinda like Smoking Man. (Love you Smoking Man) But he makes more sense. Garth could you please define “Middle Class”. Never cared for societal class systems myself, seems so feudal. Sadly the younger generation is putting a lot of stock in it. At 44, not sure what generation that makes me, and don’t care much, I’ve lived in 5 provinces. Followed work, raised a family, never owned a house, don’t really want one, made new friends, stay in touch with old ones online, and experienced much in this amazing country. I think if you go to work and collect a paycheque, that make you working class. Nothing wrong with that. March to the beat of your own drum.
P.S Granite is for tombstones not countertops anyways.

#303 JSS on 04.19.15 at 11:36 am

If PG has cheaper houses and you and/or your spouse can get a decent job, then go there. If you don’t want to stay there forever, then don’t. Get some good job experience, save and invest from your paycheque, and eventually go back to Van if you so desire.

At the end of the day, ya gotta go where the jobs are. They’re not coming to you. Unless you’re a dentist of course.

#304 JSS on 04.19.15 at 11:39 am

XRE + TFSA = A Beautiful Thing

#305 NoOneOfConsequence on 04.19.15 at 12:06 pm

When the boomers bought their property…they was no guarantee they would make out like bandits LOL! Hindsight is 20:20. They were taking a risk, hoping against hope they could make things work.

Anyone petitioning to raise minimum wage is a fool. Look back in history. There has never been success with that. There is a 100% correlation between minimum wage controls and the destruction of jobs for young people and reduced employment for the uneducated. There is no doubt. Google it for god’s sake! Raising minimum wages is the fastest way to even more homeless beggars and unemployed youth!

Debt is a way for people to pull future SURPLUS earnings forward to use today. If you have no surplus – you are a fool to go into debt. Plain and simple.
People lie and fake their way to demonstrating a surplus to lenders. By doing so they can then pull forward a lump sum of pretend surplus. Welcome to a life of debt servitude. It’s your own fault.

The path to wealth and security is very simply stated “Produce more than you consume, invest the difference”.

Garth offers one way to invest that surplus, and multiply it into more surplus. If you can be patient and disciplined – you will always be ‘safe’ and ‘secure’.
You will never run out of cash!

You can also invest the surplus into education to obtain a better paying job – which in turn also creates more surplus.

This is why student loans are idiotic. People who borrow (pull forward their surplus) and use it to get degrees which do not secure them higher paying jobs are signing up to be debt slaves for their entire lives.

So simple – a monkey could see it…unless granite and stainless are blocking their view of course.

#306 Marco on 04.19.15 at 12:06 pm

Thanks Lisa.

“when I was a kid your age…”

Haha, “this is why I am entitled to have my house appreciate over time because when I was a kid…

“This is my payback for when I was a kid…”

No, you just lucked out get over yourselves already.

1 more thing stop selling your houses at such astronomical prices whilst whining about cost of living these days.

Cheers.

#307 Drunk Actuary on 04.19.15 at 12:07 pm

#73 Just Do It.

Thanks “Just do it”, your story brought me to tears. This is so inspiring. A guy who flipped house during an ever decreasing interest rate era in the greatest housing bubble in canadian history moralizing youngster to stop whining and do the same, in a probably future increasing interest rates era. wow. You should be a financial advisor.

I’m a millenial, who worked like a madman to land my six figures job. I can tell you I have a good life now, but I can also tell you that millenials has it real hard right now. Senior actuaries at my place landed the best job in the 90’s without raising a finger, bought houses in the 90’s that are worth a fortune now. All of them bought places 15 years ago that now cost 3x the price they initially bought. I rent, I have a balanced portfolio, never whined about it, but I agree with the other millenials that there is a problem in society when if a millenial like me wants to buy a decent house you have to take a huge amount of debt in the process to pay the entitled boomers retirement (since it’s socially acceptable to judge a whole generation here I’ll do it).

So if you dont want to be a greater fool you rent, but having a family makes you at risk of having to move often and break your children hearts everytime they need to leave their school and their friends.

Have a good weekend ! I’ll go buy myself some latte and play with my $20,000 gold iphone while booking my exotic travels.

#308 Panhead on 04.19.15 at 12:25 pm

I have been locked out of work for over 3 months now and am a boomer. I spend my time “on the line” with mostly 30 somethings. These guys were making good coin and benefits. A lot own houses out in the burbs of 604. They are all spending 24 hrs/ week “on the line” and working other jobs to keep up. These guys are hurting but none are complaining, they are all helping each other out. I am proud to be with them. Not all are whiners …

#309 Just Do It on 04.19.15 at 12:49 pm

#293 Ralph Cramdown.
#306 Drunk Actuary.

We’ve made those moves in the past 12 years.

We enjoy the process of renovating homes… it’s a hobby that pays… and we’re quite good at it… our last 2 renovations have ended up on magazine covers.

We have a lot of equity… so we’re not about to go under anytime soon.

We contributed to our local economy… bettered our living spaces and lives… and had a tidy share left over… it’s the ultimate win / win.

If you prefer… you can hold up signs whining about your situation… or keep on waiting for the bubble to burst… like many have been doing for the past 10 years… while real estate doubled in price around you.

Our story is an inspiration… for those that want to be inspired.

Just do it.

#310 Daisy Mae on 04.19.15 at 12:52 pm

#118 Marco: “The only way Harper was getting his majority was to appease the boomers for votes…. ”

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

Name of the game. Bottom line — it was still only a 38% ‘majority’. Which means 62% did not vote for Harper, for whatever reason.

I hear people state “you’re throwing your vote away” and other such comments referencing a certain way of voting, but I haven’t heard any reasoning behind those comments.

Something wrong will a system whereby you vote for someone who doesn’t impress, and in that way you’re voting against another who impresses even less. Obviously, I’m missing something. ;-)

Weird world we live in….

#311 BG on 04.19.15 at 12:56 pm

Again the comments section of this blog display its demographics bias.

What I think I’m reading is a few +50 people having achieved a comfortable level of wealth bashing millennials for trying to do things the same way they’ve been done since WWII.

If you want to call the millennials entitled for that, I’m going to call +50 people entitled for expecting any return from their investments, entitled for expecting that their money will bring them any kind of comfort during retirement.

Economic conditions can change and affect any one at any time. REGULAR people. Your neighbor, your friend, your family. Yourself.

If you’re not going to show any compassion, and you prefer staying up there in your immaculate cloud, throwing down lightennings on the “sheeple”, well don’t expect much compassion when it’s your turn, and the immaculate cloud dissipates leaving your sorry ass on the ground.

Like it or not, we all live together in the same society.

#312 Leo Trollstoy on 04.19.15 at 1:10 pm

Garth could you please define “Middle Class”.

Anybody who has a net worth less than 25x their annual expenses.

#313 Victor V on 04.19.15 at 1:14 pm

#307 Drunk Actuary

Renting needn’t be insecure. If one takes the time to find the right property and landlord, committing to a 2-3 year lease is a means to mitigate mobility risk.

Garth rents a $2M SFH home in mid-Toronto for peanuts vs ownership costs as do the more astute dogs on this blog.

Naturally renters can’t enjoy subjectively valued ‘pride of ownership’, but many would be surprised to learn how well one sleeps at night watching one’s portfolio growing every year with maxed out RRSPs/TFSAs/RESPs et al working their magic securing one’s family’s future.

#314 Leo Trollstoy on 04.19.15 at 1:20 pm

Think you missed the mark on this one, Garth. Millennials here are pointing out how unbalanced our real estate market is in Vancouver when our average working professionals can’t afford our average homes.

Lots of asset markets become unbalanced. What’s the purpose of pointing that out? Get over it.

#315 DisgustMadeMePost on 04.19.15 at 1:28 pm

It is striking, the attitude toward some of these so called millenials. Entitled latte sippers. Of course there are always those who sip too much. If you don’t feel there’s a problem highlighted by these decently paid young folks, I wonder what is thought of the people without even a hash tag to their name, still on the lowest rung of Maslowe’s pyramid. Guess THEY should all just leave too. What a nice, clean economically purified city that would be.

Just leave doesn’t address the bubble enabling policies our LEADERS have implemented. While at the farmers market at Riley Park yesterday, I was approached by a Stop Harper campaign. Polite Canadians taking to the streets. They all looked like boomers!

I am waiting for the collective light to go on in Vancouver.

#juststopbuying

#316 Daisy Mae on 04.19.15 at 1:35 pm

#262: “#240 Daisy Mae on 04.18.15 at 8:09 pm
—————————————————–
That’s a little harsh don’t you think?

But as another blogger indicated, you can’t hope that the circumstances around you suit you….so take action and LEAVE.”

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

So? What did I just say? If you can’t afford Vancouver then you ‘get real’….and you leave.

#317 Ralph Cramdown on 04.19.15 at 1:39 pm

#309 Just Do It — “We’ve made those moves in the past 12 years.”

You just get funnier and funnier! 8 moves in 12 years? This may come as a surprise to you, but a lot of people want to own a home for the stability it provides, especially if they’re raising kids. How many times did your children switch schools?

This may also come as a surprise to you, but unless you’ve been declaring your capital gains as income and paying tax on them at regular income rates, you risk a nasty reassessment from the CRA. It would not view your activity as a “hobby that pays,” but an Adventure in the Nature of Trade. Not that I’m confident that you’ll get caught. The CRA only has time for waitresses who don’t declare all their tips.

#318 Just Do It on 04.19.15 at 2:40 pm

317 Ralph Cramden

Not to worry.

Our daughter is in grade 4 and hasn’t changed school once.

She enjoys the process also… And is in the midst of planning her next bedroom.

She is also interested in becoming an architect or an interior designer.

All our finances are above board.

Spread your fear an loathing elsewhere.

Just Do It.

#319 BS on 04.19.15 at 5:20 pm

296:

Does striving for just a decent middle-class lifestyle at age 30, the kind the boomers easily had landed in their lap when they were barely 21 with barely a pulse, make one ‘entitled’?

Yes, that statement is the deffiniton of ‘entitled’.

There are pros and cons to being born at different times but I would take being born a millennial over a boomer any day.

#320 eazy57 on 04.20.15 at 10:28 am

I would’ve loved to remain in Toronto, but I knew it was out of control. And personally, as someone who has lived there almost my entire life, I just didn’t think the cost of houses were worth it to me. So my wife and I bought a place in Bowmanville for 300K. The same house in Toronto would’ve easily been over 1.5mil. My philosophy isn’t to bitch about what everyone else has, it’s to find away to get what we want, and the price we want. Everybody wants, but no-one wants to do what it takes. The game isn’t that hard to play.

#321 Nathan Green on 04.20.15 at 5:45 pm

It’s not entitlement to expect better from our government. Those who are entitled are the rich who have lobbied the government and rigged the system in their favour. The financiers who have made it inevitable that today’s millennials will most certainly have debt. Inequality has been rising for the last 40 decades, wages have stagnated, permanent jobs are being replaced by temporary contract positions, and with automation around the corner the prospects are bleak. This didn’t happen by accident. The entitled rich pushed neoliberalism which is pushing a third-worldization of the West.

Let me guess, your response is that a tweet won’t fix that. Of course it won’t, but when people are angry they have the right to express themselves. You can call it whining all you want, but that is all you ever do on this blog anyway.

Investing won’t fix this trend either. None of your advice fixes the system which is ultimately what these people are complaining about. Your advice caters to those who already have the means to invest, and for those who don’t may God have mercy on their souls.

We’ll see how your precious stocks are when we hit our next global recession. You might be lucky enough to have already built a solid nest egg that can withstand a depression, but I’m not so sure many of your faithful readers are there yet.

#322 slick on 04.20.15 at 8:04 pm

#77 Ralph;
EXACTLY!! took my son to the local university for a tour. 18,000 students. All the letters behind their name are only flooding their own market. Supply and demand. You would think the business classes would see this the first day!
My son is talking about becoming an actuary. Why study for years for a job that a click on the computer will provide?