‘Mom, that’s not the point’

SHORTCUT modified

“I looked up ‘conflict of interest’ in the dictionary,” says Joe, “and there was a picture of Bob Rennie.”

For those in the gritty East who think only Brad Lamb epitomizes the omnivorous side of real estate marketing, Bob Rennie might not be a household name. But in dreamy Vancouver, he’s Da Man. The 59-year-old is condo king of the Left Coast, owner of Rennie Marketing Systems, the biggest flogger of multi-unit projects, and the genius behind the troubled Olympic Village plus the Woodward’s project. That condo conversion on the lower eastside took useless, affordable housing for society’s displaced and turned it into high-end condos for yuppie princes.

This week Sir Rennie crossed a line.

“I hate when a realtor starts telling people they should give up on something that might actually be attainable if conditions change and they make better decisions,” Joe complains. “It’s just depressing that someone who adds so little value to society has this kind of influence on decent people who might actually add something.”

What did Bob do? He gave a speech saying young people who live in Vancouver should throw in the towel and simply give up on the dream of ever owning a home there. No more land is being  created, he said in a spurt of clarity, so “there’s depleting inventory and increasing demand. I know nobody wants to hear that, but unless we’re going to take a big broad brush stroke and add a lot of density, we’re in trouble.”

And what does that mean? Bingo. More condos for Rennie Marketing Systems to flog.

This kind of message ain’t new. Van property marketer Cam Good famously told the locals they’d just have to accept being priced out forever by foreigners. The numbnuts at Vancity, masters of self-promotion and purveyors of fine mortgages, have warned the average house will go for $2.1 million within a few decades. And now Rennie says if you’re young, get used to living with an elevator and a storage locker.

EVELINE1

Maybe you remember Eveline Xia. She’s the 30-year-old who created the #DontHave1Million Twitter campaign that I scorched a few weeks ago, and which made national headlines.

“We may have more in common than you think,” she said after calling me yesterday. Eveline is now famous, of course. Poster child for the disenfranchised. Spokesgirl for a generation that will never know what it is to clean eavestroughs or have a raccoon in the garage.

“This is about an entire swath of society, and it’s getting worse. This is not about asking for handouts or pity. It’s just that if professionals can’t afford to buy a house in this city then something’s not right. Housing is closer to food than anything else. It’s a necessity. You need it to function properly in order to have a healthy society.”

So we do agree on a few points. Eveline sees massive risk in the level of debt the locals are taking to buy homes, desperately. “People here can barely afford groceries because they’re spending all they possibly can on a house for fear of being left behind. Realtors are feeding this mentality and this fear, and that’s where you come in.”

So, does she feel entitled to own a house? Does she expect a ‘fair’ society to hand her a set of keys?

“No. I’m not young and I am not entitled. I’ve lived on my own for years, don’t have a car. I’m frugal. My mother offered me money to buy a home, and I said, ‘Mom, that’s not the point.’ And it isn’t. Governments are borderline criminal for allowing all of this debt and fear to happen. But they do nothing because they don’t want to be in power when the adjustment takes place, now that they have allowed to massive debt to occur.”

All true. Politicians at every level have been enablers of a bad situation. They’ve pandered to home ownership, using the tax system, monetary policy and social programs to encourage a one-asset strategy that’s now yielded the twin beasts of high debt and high prices. They’ve created the conditions in which predators like Mr. Rennie can prey on the financial illiteracy of the masses, and squish the young in the process.

Nobody’s entitled to a house. And while the current situation sucks for those who feel shut out, let’s hope Eveline and her Twittersphere full of followers have enough smarts to know what they don’t have, may be a blessing.

When condo marketers are newsworthy, we’ve lost our way. This is not over.

217 comments ↓

#1 Mean Gene on 05.20.15 at 6:10 pm

High School educated real estate agents like Mr Rennie get no respect from me.

#2 Victoria Real Estate Update on 05.20.15 at 6:11 pm

It is evident that most American markets peaked during (or close to) the summer months.

US:
January: —–
February: —–
March: —–
April: —–
May: —- San Francisco (06), Tampa (06), Washington, D.C. (06)
June: —- Dallas (07), New York (06), Phoenix (06)
July: —- Atlanta (07), Cleveland (06), Portland (07), Seattle (07)
August: —- Charlotte (07), Denver (06), Las Vegas (06)
September: —– Boston (05), Chicago (06), Los Angeles (06), Minneapolis (06),
October: —-
November: —- San Diego (05)
December: —- Detroit (05), Miami (06)

(source: Case-Shiller Index)

Some Canadian markets have most likely peaked, while others may have peaked or are probably close to peaking. Markets in Toronto and Vancouver are at or near all-time highs.

It appears that Canadian markets also have a tendency to peak during (or close to) the summer months, for obvious reasons.

Vancouver and Toronto may both peak over the next 5 months.

CANADA:
January: —-
February: —-
March: —-
April: —-
May: —-
June: —- Victoria (10), Halifax (13)
July: —- Montreal (14), Quebec (13)
August: —- Ottawa (14)
September: —- Edmonton (07), Winnipeg (14)
October: —- Calgary (14)
November: —-
December: —- Hamilton (14)

(source: Teranet’s index)

The beginning of Canada’s long overdue housing market correction will probably start soon (even with emergency rates).

Experts worldwide are predicting a major correction for Canada.

Those who work in the Canadian housing industry say it won’t happen. Their words echo those of our American friends who said it wouldn’t happen there:

* Alan Reynolds, Senior Fellow, Cato Institute (US):
“No Housing Bubble Trouble”, Washington Times (January 8, 2005):

“In short, we are asked to worry about something that has never happened for reasons still to be coherently explained. ‘Housing bubble’ worrywarts have long been hopelessly confused. It would have been financially foolhardy to listen to them in 2002. It still is.”

* James K. Glassman, Senior Fellow, American Enterprise Institute (US):
“Housing Bubbles”, Capitalism Magazine (May 24, 2005):

“Even in places where prices are soaring, worries of a bubble could be overblown because higher prices appear grounded in good old fundamentals.”

Sound familiar?

#3 HD on 05.20.15 at 6:15 pm

@#146 Davy Dogs on 05.20.15 at 4:32 pm

“#132 HD…Couchy Pot is for suckers who aim at 4-6% and end up with negative returns after factoring in inflation and taxes. Thats advice skewed for people who like eating Alpo. ”

I guess you drew your own conclusions as I recommended.

Best,

HD

#4 Jason on 05.20.15 at 6:26 pm

Haha I saw this today!

http://vancouverisawesome.com/2015/05/20/condo-developer-offers-car-or-storage-locker-full-of-cash-as-incentive-sells-300-in-3-hours/

#5 brucebruce on 05.20.15 at 6:27 pm

As a 29 year old urban planner I can attest to the principle of limited land supply. In Vancouver, the natural barrier being the mountains, which inherently limits urban sprawl. In Toronto (GTA), the enactment of the Greenbelt Plan and other related legislation has created the same situation. Then of course we have the massive population influx that further fuels the fire. I am not sure what demographic trend, other than world wide catastrophe, would reverse this scenario. Canada even then may be considered a safe haven as opposed to other riskier european or american markets. We live the safe life.

In my personal assessment, I can see how at-grade single family home prices have continued to rise. Prices in urban areas reflect high desirability and continued anticipated demand through population growth. I continue to hope for a ‘correction’ where prices become affordable – as I am seeking to enter the market in the next two-three years. But, realistically, Garth, I can’t see it happening. Maybe a small dip like in 08-09′ but we live in the best Country on earth and if you want it all – to live in a Canadian metropolitan area with all the perks of City living with your own lawn and driveway, these are the prices you have to pay.

I am not a doomsayer like the rest of this blog more so realistic, don’t invest in something you can’t afford until you can. You want to have it all? Pay what the market dictates. Except to buy a condo at $400,000 and a house at $800,000. This is the new $350,000. Save up put 30-35% down. Get a renter in the basement. Pay your bills. Put a large down-payment while not detracting from other investments. It is doable. And that’s coming from someone who makes 65k (not married, yet). Frugality at it’s finest.

#6 rawdiswar on 05.20.15 at 6:33 pm

Ever since NAFTA and the dumbing down of the education system, so no kid fails a grade lest their self esteem take a hit, North American productivity has plummeted, and by that I mean we produce very little value.

Environmentalism has become dogma so anything perceived as “dirty” like mining gets bogged down with government paperwork making it very, very difficult to bring a project into production. An economy cannot function with primary industries, regardless of how many academics tout the “knowledge economy”.

In order for governments to pacify the masses into thinking they are actually wealthy, a heavy emphasis was placed on getting people into mortgages, draining capital from productive investment into bank profits, all giving the illusion of wealth. This can only work for so long.

Sure, people might be able to make their mortgage payments now, but at what cost? Where is the new prosperity coming from? Selling each other houses? That is not a real economy producing real wealth. Hence the rise of the FIRE economy where real estate agents outnumber engineers and people that build real things besides houses.

Fake economy. Fake wealth.

#7 Alberta Ed on 05.20.15 at 6:35 pm

It is shameful that the gullible yokels masquerading as business reporters in the MSM suck up such obvious promotions as Lamb’s.

#8 SardineinKits on 05.20.15 at 6:36 pm

I couldn’t get behind Eveline’s Don’t Have A Million, but I am all for her cause. I have been in many conversations with people of all ages and incomes who speak angrily about the politicians, banks and real estate industry who have lead us into this mess. There is a seething anger. We don’t want a hand out. We want some normalcy. Tell the politicians to stop screwing with the interest rates. Slap some rules on those greedy realtors. Stop pandering to people who waste it all away. Give the savers a fighting chance.
I can tell you from the trenches of Vancouver that the realtors here are very skilled at maximizing their profits and they don’t give a damn about the clients. We have seen endless false representations, down to completely wrong statements about rooms and floor size. We’ve been told to ditch our own realtor thus giving another realtor the full commission – for this he promised us first crack at his listings. I don’t want anything handed to me. I just want the weasels put back in their cages.

#9 Freedom First on 05.20.15 at 6:36 pm

Yes, Mom, it is not the point. Well said.

I will make this even simpler. If you can’t afford a car without debt, don’t buy a car. If you can’t afford restaurants without spending your savings/assets, or have any debt, eat at home. If you carry any credit card debt, you can’t afford your lifestyle, cut back, period. If you can’t afford a house by obeying the Rule of 90 at the least, don’t buy one. I think everyone gets the idea. Cue the people who attack everything I say. The truth is too unbearable for many to handle. This is why when I am among most people, I keep my thoughts to myself. Live and let live. Many people come here to learn, and the others, well, nobody cares what you say.

#10 Dan from Richmond Hill on 05.20.15 at 6:39 pm

#5 brucebruce

…but we live in the best Country on earth…

How do you know that when you are 29 year old?

#11 Mark on 05.20.15 at 6:46 pm

“As a 29 year old urban planner I can attest to the principle of limited land supply.”

Oh good lord. Have you ever looked at a map of the Vancouver or Toronto areas? Or taken a flight into either? Plenty of unused land, and plenty of land which is currently utilized for marginal purposes which can be converted into residential RE with relative ease if the demand existed.

Not only that, but if there was a legit shortage, rents would be rising faster than inflation. Which isn’t happening for the most part either.

If you honestly believe there’s a ‘land shortage’, please put your urban planning degree back in its envelope, and return to issuer.

#12 OttawaMike on 05.20.15 at 6:49 pm

Watch out. The Fed is raising rates! Right Garth?

LOL

#13 Leo Trollstoy on 05.20.15 at 6:51 pm

High School educated real estate agents like Mr Rennie get no respect from me.

Because your respect is what he wanted right?

Get over yourself.

#14 What do you know? on 05.20.15 at 6:54 pm

#5 brucebruce

“29 year old urban planner”

What the hell do you know? Do you know anything that is not from one of your textbooks? How much life experience can you have at 29 yrs?

Go spend some time overseas or at least far from Vancouver and then get back to us.

#15 nnso on 05.20.15 at 6:58 pm

I spoke to one of my relative in Germany over the weekend, and it turned to home ownership. He lives one hour drive from Frankfurt in a small town called Giessen. The concrete build 3 bed room house cost between 100k to 150K Euro. He said stated income loan would put people in prison within a month in Germany. But high price real estate in England and France due to laxed stated income rules.
what more to say than this …
Governments are borderline criminal for allowing all of this debt and fear to happen

#16 Cici on 05.20.15 at 7:03 pm

#5 brucebruce

Wow, where to start…it’s OK if YOU want to put soon-to-be-dead money into a dead asset, but please don’t recommend that others on this blog follow you in that folly. Pretty much the stupidest way to kill wealth and ensure that you’ll be working up until the day you die.

Obviously you haven’t travelled much, but your unworldly opinion that Canada is the “best” country on Earth aside, demographics has nothing to do with the fact that prices have been pushed artificially high: it’s all about low interest rates and easy, sleazy lending practices.

#17 Kilby on 05.20.15 at 7:08 pm

Governments are borderline criminal for allowing all of this debt and fear to happen. But they do nothing because they don’t want to be in power when the adjustment takes place, now that they have allowed to massive debt to occur.”

All true.

That is the sentiment of many here on the Left Coast, Harper has managed to keep the pot boiling all these years and just needs a few more months before letting the necessary happen…So much greed by developers.

#18 The new Klondike on 05.20.15 at 7:08 pm

Vancouver is the new Klondike. It is in a real estate frenzy that is equivalent to the days of the former gold rush a hundred years ago.

Go visit the former glorious cities that were thriving and brimming with activity from gold diggers near and far.

Eventually the dream of the get-rich-quick show ended and everyone left.

Vancouver is unaffordable and becoming less and less attractive. It is already known as one of the most boring cities on the planet and it takes forever to get anywhere with a healthier and more diverse culture.

Vancouver was fun and wild for a while during the Eighties and Nineties. It lost tremendously within the last decade. To the point where the money for cultural variety is tight.

Sure, U2 kicked off their North American tour here last week but I’m not even sure if that says more about U2 than it says about Vancouver. Their latest album sucked and just like Vancouver itself, the band U2 has peaked. I guess they have that in common then?

People in Vancouver (and the burbs for that matter) are more and more obsessed with the value of their real estate and how to make their dwellings even nicer.

Garth says that average Canadian homeowners are spending $17,000 this year on improvements.
That’s probably a set of new light bulbs for $17 in Nunavut and $170,000 for a new craftsman kitchen including Miele appliances in Vancouver.

The good news is that Vancouverites are seldom ever happy and they’re too self centered to understand that there’s a whole wide and affordable world out there.

#19 ANON on 05.20.15 at 7:10 pm

The point, Mom, is that getting into the pyramid scheme early on is a lot different than getting in at the end. It is also a lot different than living in what is left after the burst. These bubble thingies produce irreversible changes, for they only have one pedal, to the metal, and no reverse, just drive. Their fuel is promises.

#20 Kev on 05.20.15 at 7:14 pm

The funniest thing about the current state of the market is that it most screws the people best equipped to actually buy. My wife and I together make over $400k and we rent because it’s cheap and we don’t want to get a condo we don’t really want and which we’ll inevitably lose money on if we do decide to buy a house because prices came down. Right now people are whining about not being able to buy a million dollar house, but under normal conditions they would be whining about not being able to buy a $600k house. Meanwhile, my wife and I who are actually well positioned to buy would have to pay $400k more for that same asset. That’s another reason we can’t fathom buying – it just seems like a sucker’s game.

#21 "Best Place on Earth" on 05.20.15 at 7:18 pm

#10 Dan from Richmond Hill

You’re asking how does the 29 yr old urban planner Bruce from Vancouver know that Canada is the greatest country on Earth?

Have you looked at any Socials book?

Our kids are being indoctrinated to think that no other place is greater than Canada. There is a whole lot of propaganda going on from kindergarten onwards.

Recent textbooks focus 90% on Canadian opinion and history (including aboriginal culture) and maybe 10% on viewpoints from outside Canada.

Now you know and you can draw your own conclusions. It all ties together including the real estate mess.

#22 Keith on 05.20.15 at 7:21 pm

Bob Rennie on CKNW Simi Sara show this morning:

http://www.cknw.com/2015/05/20/vancouver-developer-bob-rennie-on-why-its-time-to-up-the-single-home-dream/

#23 Fed target date September on 05.20.15 at 7:22 pm

Rates are going up, up, up.

US economy can handle it.

Inflation will rise as rates rise.

June could still be in play with a surprise hike.

Why not? I’m ready!

#24 BS on 05.20.15 at 7:26 pm

5:

As a 29 year old urban planner I can attest to the principle of limited land supply.

Hey Bruce thanks for the information. One question though since I never went to Urban Planning School. At what point did the land supply become limited? Did that just happen in the last 12 years so prices tripled including building costs? Is it only Canada that has limited land supply? Do other countries with smaller land masses and larger populations have unlimited land supply?

#25 H on 05.20.15 at 7:27 pm

Garth,

Figured I would pass this on to you. This outlines how the drop in oil prices (gas savings) had little effect on US economy. It also continues that the drop in spending outweighed the spending that was percieved to come.

This is the cornerstone on the revisions in US GDP (down)

http://beaconnews.ca/blog/2015/05/cheaper-oil-shrinks-us-economy-oil-industry-cuts-back/

#26 Lucky sometimes on 05.20.15 at 7:27 pm

Financial ignorance is worldwide.
Many couldn’t pass a simple finance quiz. Can you?

Read More:
http://www.theatlantic.com/international/archive/2014/05/the-danger-of-financial-ignorance-do-you-understand-money/361851/

#27 JO on 05.20.15 at 7:28 pm

Our credit fuelled economy has been inflated far beyond reason due to fiscal and junk monetary policies purposely designed to inflate aggregate demand via a massive subsidy to those who borrow to speculate on housing. This merely inflated our cost of shelter and very effectively transferred wealth to the government and the FIRE sector elites.

For the average person, it is a tax but it fools them into believing they are getting richer as the massive pile of heavily subsidized debt grows and creates the illusion of wealth

The economic system is called neoliberalism and contrary to what you hear in the media and on economics class, it has nothing to do with ” free market” economics
The system we have is one created by a kleptocracy not democracy

We are in the midst of a global economic crisis. Watch the bond markets. This is where the tumour resides and from where the cancer will spread. Canadians will come to realize that we do not live in a democracy. It was all fun and games while the elites were filling their pockets via massive debt issuance and inflated housing but now it is financial repression time. The masses are being fleeced and it will accelerate.

#28 coastal on 05.20.15 at 7:31 pm

Oh how I year for the days of yester year when CMHC meant “avoid like the plague because it means you are a high risk borrower and they will scrutinize the shit out of your employment and financial history til you cry like a fricking baby”.

Now CMHC is replaced with “come sit down and open your wallet and we will load you up to the tits cause the government told us to. Did you bring your backpack too ?”.

As Eveline says, it’s criminal and the jokes on you suckers. Easy Credit Street is just a smoke screen for the dark side of town.

#29 Ben on 05.20.15 at 7:31 pm

What? A hard working young (ish) person who is locked out due to exploitation voted in by boomers who think they are getting a cut.

What happened to all the lazy kids playing video games all day and spending their cash in ipads?

Anger is rising my boomers.

#30 Patient in Richmond on 05.20.15 at 7:31 pm

“As a 29 year old urban planner I can attest to the principle of limited land supply.”

you must be a realtor because your statement is delusional .I fly into vancouver on a weekly basis , there is a LOT of land still left .

Either return your degree or go on a flight and have a look over Vancouver and surrounding areas. Especially when you come in from the east and land on rwy 26 …..

i find a statement like that utterly uneducated and plain silly, really

#31 devore on 05.20.15 at 7:33 pm

#11 Mark

Not only that, but if there was a legit shortage, rents would be rising faster than inflation. Which isn’t happening for the most part either.

Not only that, but if the demand was organic, rents would be rising AS FAST AS house prices. But they are obviously not, telling us the bulk of the demand is speculative.

#32 Interstellar Old Yeller on 05.20.15 at 7:35 pm

Shawn Allen – happy retirement day!

I guess this means you’ll have more time to read and comment on this blog! :-)

#33 Godth on 05.20.15 at 7:36 pm

#18 “Best Place on Earth” on 05.20.15 at 7:18 pm

I thought Australia must be the best place to live on earth, or England, or New Zealand, the Netherlands, etc., etc.

Spain and Ireland used to be the best place to live too, but their bubbles were burst. :(

4 Factors Signaling Volatility Will Return With A Vengeance
Buckle up. It’s going to get bumpy.
http://www.peakprosperity.com/blog/92663/4-factors-signaling-volatility-will-return-vengeance

#34 Greg on 05.20.15 at 7:37 pm

Here’s a winner: http://www.cbc.ca/news/canada/british-columbia/james-sidney-parsons-victoria-realtor-accused-of-conduct-unbecoming-1.3079354

#35 ANON on 05.20.15 at 7:41 pm

#24 Lucky sometimes on 05.20.15 at 7:27 pm

Thank you for the link.
Amazing how even the basis is turned upside down. How’s this for an even simpler finance quiz?:
1. Suppose you borrow 100 pieces of eight for a lucrative venture, and the interest rate was 2 percent per year. After five years, how many pieces of eight do you think you would have to give back?
2. Where do the extra pieces of eight calculated at point 1 come from?
Here’s to hoping you still have at least the original 100 pieces of eight.

#36 Godth on 05.20.15 at 7:42 pm

#27 JO on 05.20.15 at 7:28 pm

Soon enough the neoliberal solutions will be trotted out to save us: Austerity and Privatization.

#37 seeing it from both sides on 05.20.15 at 7:49 pm

Ha! Even more demand for housing to come. It is different in Van ;)

‘Vancouver’s economy is in high gear, its labour market is expanding, and more Canadians are relocating here from cities with less vibrant economies. People always gravitate to places where prospects are good.’

http://www.vancouversun.com/business/economy/Barbara+Yaffe+Vancouver+leading+country+economic+growth/11069486/story.html

#38 Ben on 05.20.15 at 7:51 pm

Rents are defined by wages. That’s why they haven’t risen.

House prices are defined (when demand exceeds supply) by available credit. That’s why we’ve had the walk down to zero interest rate.

Come on guys this should be common knowledge for people on a blog like this.

#39 WHATFORWHAT? on 05.20.15 at 7:55 pm

The problem is that while there might be a lot of land in the lower mainland that is not “living in Vancouver” – and trust me to many people that matters. They can’t live in Langley for god sakes, what would their peers think?

#40 McNutty on 05.20.15 at 7:56 pm

“The game is rigged. But you cannot lose if you do not play.” – West Baltimore proverb

#41 Hawk on 05.20.15 at 8:10 pm

#5 brucebruce on 05.20.15 at 6:27 pm
we live in the best Country on earth and if you want it all……

ROTFLMAO……………..

Monaco
Much of America
Liechtenstein
Germany
Andorra
Norway
Singapore
Qatar
Switzerland
San Marino
Denmark
Finland
Bermuda

Not that the ole Maple Leaf ain’t loveable and all that, but you need to get out a bit dude………seriously :-)

#42 Mister Obvious on 05.20.15 at 8:14 pm

People who could afford to pay cash-in-full for real estate in Vancouver or Toronto can’t even consider buying if even a scrap of financial savvy exits within them. One must assume such ‘savvy’ actually does exist or their pile of liquid assets probably would not.

People with no assets are in a much better ‘position’ to consider buying because they likely have little financial sense coupled with a strong feeling there is nothing to lose in an environment where banks, realtors and even governments encourage them into debt at every turn.

Enter Mr Rennie…

#43 Observer on 05.20.15 at 8:17 pm

Prices in Vancouver are a result of supply being overtaken by demand. Rennie represents supply….can’t blame him.
So that leaves demand….and Garth succinctly laid out where that is coming from at the end of his post. If this bubble pops badly, especially in the hotter areas, there will be a lot of Canadian families to answer to. “You should have known better” or “you should have read GT’s blog” won’t cut it when the finger pointing begins.

#44 B Riding Dirty on 05.20.15 at 8:19 pm

Back in Spetember BC teachers were on strike. Friends of mine who are a married couple are both teachers (with Masters) own a beauty 690sq ft condo in the heart of Vancouver.

After Three months of striking they were broke.

– Borrowed money from Parents ( had a meeting with both sides )
– She waited tables
– He did manual labor

And they finished the strike flat broke, owing mom and dad, credit cards I would hate to know, but they had there condo and brand new car, so they still had the public image of being loaded!

I don’t see when this will end. Garth you need to take a trip out west, meet your peeps on the coast and breath in all this house horny air. Its not going anywhere soon even with interest rising, dumb are only getting dumber.

#pricedoutpushedout #langley

#45 David Lee on 05.20.15 at 8:21 pm

Bob Rennie, Brad Lamb, the entire real estate industry and every level of government is behind the ridiculousness of real estate in Canada, especially here in Vancouver:

http://www.vancourier.com/opinion/government-intervention-unlikely-in-vancouver-real-estate-market-1.1941361

People: Withhold your Consent!

I am not a “doomer” but I know my happiness in the short life that I have will not come from what the real estate industry and all levels of government would have me believe.

In the spirit of Ayn Rand’s John Galt, this is why I say “No” to buying real estate in Vancouver, why I tell the real estate industry and all levels of the present government (through my actions and my financial decisions) to go and do something physicially impossible to themselves and why I build my wealth without debt enslavement:

“Then I saw what was wrong with the world, I saw what destroyed men and nations, and where the battle for life had to be fought. I saw that the enemy was an inverted morality-and that my sanction was its only power. I saw that evil was impotent-that evil was the irrational, the blind, the anti-real-and that the only weapon of its triumph was the willingness of the good to serve it. Just as the parasites around me were proclaiming their helpless dependence on my mind and were expecting me voluntarily to accept a slavery they had no power to enforce, just as they were counting on my self-immolation to provide them with the means of their plan-so throughout the world and throughout men’s history, in every version and form, from the extortions of loafing relatives to the atrocities of collective countries, it is the good, the able, the men of reason, who act as their own destroyers, who transfuse to evil the blood of their virtue and let evil transmit to them the poison of destruction, thus gaining for evil the power of survival, and for their own values-the impotence of death. I saw that there comes a point, in the defeat of any man of virtue, when his own consent is needed for evil to win-and that no manner of injury done to him by others can succeed if he chooses to withhold his consent. I saw that I could put an end to your outrages by pronouncing a single word in my mind. I pronounced it. The word was ‘No.’

#46 B Riding Dirty on 05.20.15 at 8:23 pm

everyone tune in to see David Letterman off, guys a legend.

#47 Doug in London on 05.20.15 at 8:25 pm

Damn, it seems every time I read this blog I get sucked into the time tunnel again. This time, when I hear these arguments about how house prices will go up forever and ever because of limited land supply and a steady stream of immigrants I feel the time tunnel pulling me back to 1989. Say, how’s that cleanup of the Exxon Valdez oil spill coming along? How about that cold nuclear fusion, should I speculate and buy more platinum?

#48 Sean on 05.20.15 at 8:28 pm

Rennie is self-serving for sure (why wouldn’t he be?), but he’s still right in terms of the supply side of the equation. Interest rates, CMHC insurance, lax lending practices, stupidity, greed and the bank of mum&dad are to blame for the demand side, but it’s a fact that the supply of SFH has dropped and won’t increase (anywhere near Vancouver). A mass rezoning of SFH areas to allow townhouses and up to 6 strata units would go a long way to increasing supply without destroying communities with ugly high-rises.

#49 Smoking Man on 05.20.15 at 8:30 pm

I did something amazing today. An amazing lie.

I was just in cloverdale mall getting a new charger.

Walking out to young ladies approach me, at first I dident understand them.

Woo, they want to pray for me. “Jesus heals all.. Can we pray for you sir?”

Instinctively I was going tell them you are out of your minds, you do know you have a mental disorder.

They seemed sweet and sincere. I played along after all I had great day, got a gig lined up in California.

“Sir do you have any pains?” they asked.

Was thinking, yes you guys..but I said yes , my neck its been sore for 20 years god can’t help me.

They start making weird noises, a few hums, then said.

“Jesus take this mans pain away.” Shit talk about panic attack. I visualize a plane is going to crash into this building and kill us all, or I’m going to drop dead right this second.

I stop dead in my tracks. Look up to the Sky and bellow out a hallelujah, my acting skills on full display.

I said to them, that’s amazing my pain is instantly gone. Hallelujah , praise the lord. Thank you, Thank you.

Should have seen the looks in there face, happy, joy. They were a bit surprised.

I feel kind of guilty, I just added to there lunacy.

Atleased their happy.

Now this is what’s mind fking me right now.

My neck pain is gone….damn might need to re think this whole religious thing.

Now…time for a drink and a chat with god..

God its like this…….

#50 Retired Boomer - WI on 05.20.15 at 8:47 pm

Let the young buy that home for 5% down. Let them buy crap on their credit cards, and support TWO car payments.

Let them face interest rates of 7% in years to come and lose it ALL!!

Good training for eating out of garbage cans, picking up litter, and working a minimum wage job at Timmy’s or Mickey D’s. Hey, most of us have been there at one time or, another.

Ever wondered where tomorrows sustenance is coming from? Ever been unemployed with no prospects? This was 1974 for some that might remember it. Inflation was raging and you couldn’t buy a job in my hood.

Today, a college degree means very little, less than it has ever meant. Deflation is on the horizon, and saving money seems out of style.

Times change, the first, shall be last, the non-indebted might have a shot the rest -spent cartridges.

You want a house? Tough. If you can’t ‘afford’ one just rent. You want a car? Can’t ‘afford’ one take the bus, or walk. You, you, you!! Look at those with less, live like that if you dare!

The “BEST” Country on earth? Haven’t been to them ALL. Only a handful, and could have lived well in any of them I have always liked Canada similar to the US, similar values.

Oil can go to $100 or $30 I don’t give a rat’s sass. Inflation or deflation can go to -10 to a +30 again, I’m not affected.

Why, because I have set the compass and won the race.

The old fashioned way. Lived below my average earnings, saved, and invested in broad index funds that only delivered what the markets delivered for the last 30 years.

Look it up grasshoppers. No secrets there. Still invested.
.10 mer every year. I got 99.9% returns whether it was great, or it sucked! You wanna do better do better, go right ahead baby it’s there for you! Try it, you’ll like it!

#51 Glen on 05.20.15 at 8:53 pm

I was most taken by the Limited Land. While in some areas it can have an effect, even then it is driven by realtors hyping the prices.
Most or ALL of the reason for extreme prices in YVR and GTA are due to Realtors and Dummies and Banks and Dummies… Did I mention the Government and BOC… I guess I did in that sentence twice..

#52 espressobob on 05.20.15 at 8:54 pm

OK,lets sign for 500k for a bird coop along with taxes and fees, otherwise we are priced out forever?

Did that make any sense? No it didn’t. Why would it?

#53 TurnerNation on 05.20.15 at 8:54 pm

825k for an old junker in a poor postal code.

Unless it’s been stripped to the bones and rebuilt you have what? A project.

http://www.torontolife.com/informer/toronto-real-estate/2015/05/14/the-sell-a-savvy-couple-use-social-media-to-sell-their-parkdale-investment-property/

#54 BS on 05.20.15 at 8:58 pm

People who could afford to pay cash-in-full for real estate in Vancouver or Toronto can’t even consider buying if even a scrap of financial savvy exits within them. One must assume such ‘savvy’ actually does exist or their pile of liquid assets probably would not.

People with no assets are in a much better ‘position’ to consider buying because they likely have little financial sense coupled with a strong feeling there is nothing to lose in an environment where banks, realtors and even governments encourage them into debt at every turn.

Well said. People that have nothing have nothing to lose. They look at their assets and savings and see zeros or negatives. What they have been doing so far hasn’t worked. May as well go all in on RE. Just let them know how much they qualify for and how much the payment is.

Those that have accumulated wealth have lots to lose.

#55 pwn3d on 05.20.15 at 8:58 pm

Once again any time Mark types anything, it’s completely wrong. If this site had a fact checker instead of spell checker every post of his would be underlined in red.

brucebruce is correct for the GTA, the Oak Ridges Moraine is a huge swath of land that won’t be developed. It may as well be a mountain. On top of that regional governments are pushing higher densities that detached homes can’t provide. Only condo’s and townhouses can. Thus the mix of new housing is more of that and less detached. Less supply of something people still really want means higher prices.

#56 whitehorn on 05.20.15 at 9:00 pm

House prices have always been more expensive in Vancouver and the mainland. It almost seems to my recollection going back to the early 90’s, that a house was up to double the worth of a similar one in Edmonton/Calgary. Its been like that for awhile, will be interesting if that trend continues. Lots of people think it is expensive in AB, does not even compare in BC.

#57 Godth on 05.20.15 at 9:01 pm

#45 David Lee on 05.20.15 at 8:21 pm

Ayn Rand was too honest.
https://www.youtube.com/watch?v=fi6QT-10Ecw

#58 pwn3d on 05.20.15 at 9:03 pm

btw the latest new home sale in Vaughan went for 450 per sq foot or more. in other words 3600sq feet on a 41′ lot was 1.6 million plus.

detached = $$$$ and forevermore it will be…

#59 bigtown on 05.20.15 at 9:10 pm

The Vancouver Whiney Whiney rant is getting old. You take the ferry across GEORGIA Straight to Nanaimo or Victoria and you are good to go. All this geese hissing about what…it’s not like it’s Hong Kong or Singapore for GOSH SAKE it’s Dampcouver.

If my estranged sibling who sports an earing and works as an EXTRA in the movie business in Vancouver and is a professional psychic and does not drive a car and has recently hit 55 reads this..I stilll love you Alaska and wish you all the best even if you are a contemptible idiot. Hey we all need to address our inner left coast on occasion.

#60 Smoking Man on 05.20.15 at 9:14 pm

Just noticed the pic. No sort cut to success.

That’s not true..but in the trucks case , well he took the wrong short cut.

#61 CREIT on 05.20.15 at 9:15 pm

To Shawn A.

Enjoy retirement, I’m sure it is well deserved!

#62 Retired Boomer - WI on 05.20.15 at 9:17 pm

Looking at the truck trailer “On the road to success there are no shortcuts”

Trues enough. There ARE however, some low bridges, that cause you a minor detour on your road to “success.”

TOO FUNNY…missed that the first time.

#63 Herb on 05.20.15 at 9:19 pm

Garth, politicians have not “pandered to home ownership”. They’ve pandered to the Finance, Insurance, and Real Estate Industry – the famous FIRE – that demanded that government create the conditions to allow them to profit greatly from near-universal home ownership.

Politicians don’t pro-act, they react. As Campbell’s Minister of National Revenue, how many policy suggestions did you receive – and entertain – from individual citizens, and how many presentations, notes and papers from representatives of banks and other corporations? (Not blaming you as the incumbent Minister, but our oh-so-ostensibly but only pseudo-democratic system.)

It’s the subtle difference between rape and seduction, but if you’re going to do something about the result of the act, you’d better identify the father. Blaming the victim won’t help, and there will be a lot of those when it does not end well.

#64 Bill Grable on 05.20.15 at 9:23 pm

I’d like to express my admiration for Eveline Xia – for her sanity and sense of reality, out here in La-La Land.

Living in the West End is becoming like living on a freeway update project. All the old three levels are going, and being replaced by high rises and no doubt, a ton of new cars will clog the already over burdened Burrard Bridge and Pacific Avenue. The construction starts at 7:30 am – GRRRRR.
In the most densely populated part of North America (*look it up) – you should open a gas mask store, and clean up.

Oh, sorry – I forgot. The City Government is still building those bike lanes!!! I actually saw 3 bikes using one on Hornby today!

Help me, Rhonda.

#65 lee on 05.20.15 at 9:28 pm

#58,

I hear new builds in Vaughan are going for closer to 550 a sft and it will be 600 by next year. Some luxury builders in the Bathurst and Centre area are already getting more.

#66 Moses71 on 05.20.15 at 9:34 pm

Vancouver-centred perspective of the universe?
If you can’t afford to live there, then move
If your shack bothers you that much, it’ll bother you more in 10 yrs…20yrs, etc
Imagine how left in the dust you’ll be then with your 4 walls?
Take a hike now

#67 Andrew Woburn on 05.20.15 at 9:35 pm

“The FT’s running total of legal fines and settlements paid by banks to US regulators since 2007 now comes to $155bn.”

I get that officers and directors of major financial institutions are obviously above criminal law but what happened to all those ravening packs of ambulance-chasing US lawyers? No class action suits? Really?

http://ftalphaville.ft.com/2015/05/20/2130051/every-day-were-sorry-by-53m/

#68 pypes_diver on 05.20.15 at 9:39 pm

I have been a loyal reader of your blog for many years now; I just can’t see what you see in the American markets. US markets are up only and solo companies buying into themselves and insider trading is still on-going dirty business in the US. The US hasn’t changed policies, governments print money. It is the same as dirty money they may as well sell cocaine to the Columbians! America media hasn’t gotten any better feeding people with so much B.S.; fudge up GDP numbers all too similar to up north with real estate.
Marc Faber doesn’t share the comment future of the stock market or that interest rate will go up this year.
http://www.marcfabernews.com/2015/05/marc-faber-stocks-are-about-to-fall.html#.VV0tpCqF9sc
If so many stupid Canadians are in debt. Why aren’t we seeing anything of a bubble after so many years of this stupidity? You have mention for many years now that a bubble is about to happen, all I see is the % of the house hold continue to go up, what gives?

Please tell me you do not follow Marc Faber. If so, I hope you shower before you come here. — Garth

#69 WiseGuy on 05.20.15 at 9:40 pm

I just read an article that said the mayor of Vancouver rents a condo downtown…..hmmmm….does that tell you something!

#70 Ultraman on 05.20.15 at 9:45 pm

Rented for a year at the Woodward, pity the suckers who bought in that project, a ghetto it will be. Oh, and I worked a Vancity as well, Vanshitty we call it, now there’s a bunch of delusionals.

#71 NOTHING SURPRISES on 05.20.15 at 9:56 pm

What is the drawing force to live in Vancouver in relation to someone’s life’s endeavours to spend to the levels now being forced on them by this demand market?
Disregarding the mountain scenery etc., why such a draw?
Please don’t portray it as the garden of Eden or other such dramatic painted view as is the norm. I was there during my Navy days in the 60’s and have been back since and know it is a very nice location,
I fail to understand why someone would not settle elsewhere without sacrificing their life just to survive by living in circumstances that hobble them for life.

#72 PEGlet on 05.20.15 at 10:03 pm

If your from Peg, I quote “Calling all investors. Exceptionally well priced duplex with 9% cap rate completely renovated recently with a whopping 19% return on initial investment.” –> http://goo.gl/t7nl2d
Well, I guess its different here at the Peg!

#73 ShawnG in TO on 05.20.15 at 10:12 pm

I still question the purpose of the DontHave1Million twitter thing. What was hoped to achieve? Instead of awaken the general public about deliberate government policies to enslave them, a bunch of entitled new grads joined to demand house ownership.

It’s good a viral campaign got going. Let’s see if a more useful one can start. Say…. InformedVote … do you really know what harper’s policies are doing to you?

#74 GTA Observer on 05.20.15 at 10:15 pm

How come American exceptionalism is bad but Canada “best country on the planet” is good? Just curious.

#75 Andrew Woburn on 05.20.15 at 10:19 pm

Martin Feldstein, Professor of Economics at Harvard University, an insider’s insider says:

“But, in the end, the FOMC members must recognize that they cannot postpone the increase in interest rates indefinitely, and that once they begin to raise the rates, they must get the real (inflation-adjusted) federal funds rate to 2% relatively quickly. My own best guess is that they will start to raise rates in September, and that the federal funds rate will reach 3% by some point in 2017.

http://www.project-syndicate.org/commentary/fed-low-interest-rates-by-martin-feldstein-2015-04

#76 Victor V on 05.20.15 at 10:20 pm

http://www.thestar.com/news/gta/2015/05/20/mcmansion-tax-coming-to-mississauga.html

Mississauga — a city known for asphalt, an iconic sprawling shopping mall at its centre and suburban-style monster homes — has a message: if you want to keep paving paradise, get ready to pay more.

In a move that’s a first for the GTA, Canada’s largest suburb and its sixth largest city will soon charge home owners and businesses for storm water costs based on how much of their property is covered. If you have a very small house that causes little run-off water, you will pay nothing. But if your home is in the highest of five size categories, it will cost $170 in 2016 for your share of the city’s storm-water management costs. It’s an approach that Toronto is also looking at ahead of its 2016 budget process, according to a city spokesperson.

#77 Hot Albertan Money on 05.20.15 at 10:21 pm

nothing useful to add tonight, so I ran some names through an anagram generator…

Blab Ad Mr (Brad Lamb)

Bribe Neon (Bob Rennie)

Seems kind of apropos, right?

#78 GTA Observer on 05.20.15 at 10:24 pm

It is astonishing that a dump like this could be listed — and listed and photographed with near-complete disregard for the niceties — for nearly *half a million dollars.* Have we forgotten what that means? (Also, since when is a 2008 furnace “new?”)

http://www.remax.ca/on/toronto-real-estate/na-242-old-weston-rd-na-crea_id15487119-lst/

#79 crowdedelevatorfartz on 05.20.15 at 10:28 pm

@#44 B Riding
“After Three months of striking they were broke.”

“And they finished the strike flat broke, owing mom and dad, +++++++++++++++++++++++++++++++++

And those two teachers (with Masters Degrees) STILL think that it’s their “right” to demand a raise……because they havent had one in “x” years….
Newsflash Teachers! Most private sector employees havent had one either….so what makes you so special?
Oh. Right. I forgot.
“Its about the kids” No mention of money or blown budgets.
Regardless that the BC school budgets are broke, the BC govt is deficit spending, and the nurses want their pound of flesh next.
Whats next teachers?
A four week strike in Sept with the same results?
A ton of taxpayers out there dont have kids or their kids are in private schools…..wake up…..you lost.
This weeks G&M
http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=3&cad=rja&uact=8&ved=0CCgQFjAC&url=http%3A%2F%2Fwww.theglobeandmail.com%2Fnews%2Fbritish-columbia%2Fbcs-teachers-federation-would-do-well-to-raise-the-white-flag%2Farticle24200726%2F&ei=lEJdVabsJM_1oAT9_YHgAg&usg=AFQjCNHbtAbUP7QRRZyxEMmf3IkhPeZAEg&bvm=bv.93990622,d.cGU

#80 seeing it from both sides on 05.20.15 at 10:36 pm

#69 Wiseguy

“I just read an article that said the mayor of Vancouver rents a condo downtown…..hmmmm….does that tell you something!”

Perhaps you missed the part which tells that he is recently separated and moved out of their matrimonial home in ritzy Point Grey…?? Guy’s gotta have some place to crash in the interim.

#81 Phil Kessel on 05.20.15 at 10:37 pm

Ha! Leafs fans are as pathetic as house horny youngsters. Always ready to believe things will only go up.

Today’s hiring of Babcock means nothing. Leafs need a new executive and GM team to select a new team, not a special coach to try to lead the current crop of losers to new heights. Won’t happen.

Leafs fans=suckers.

Can I sell you a condo as well as a season ticket :)

#82 M on 05.20.15 at 10:41 pm

Eveline Xia my dear,…I would date you tomorrow !!!!!

#83 crowdedelevatorfartz on 05.20.15 at 10:42 pm

@#45 David Lee
“In the spirit of Ayn Rand’s John Galt, this is why I say “No” to buying real estate in Vancouver….”
+++++++++++++++++++++++++++++++++++

Let me see if I get the irony of your “quoting” the fictional character John Galt.

You’re using a character in an Ayn Rand novel to argue the “unfairness” of the Vancouver housing bubble and the capitalist scum realtors/media/govt. that support it.

You realize that John Galt(aka Ayn Rand) was arguing against Communism and it’s destructive control of how people should work, think, etc.

So using Ayn Rand to argue why a capitalist shouldnt “game” the system is like using an avowed communist for crucial stock tips for your retirement.

Its ridiculous.

#84 souvereigninternational on 05.20.15 at 10:45 pm

#21 “Best Place on Earth” on 05.20.15 at 7:18 pm

#10 Dan from Richmond Hill

You’re asking how does the 29 yr old urban planner Bruce from Vancouver know that Canada is the greatest country on Earth?

Have you looked at any Socials book?

Our kids are being indoctrinated to think that no other place is greater than Canada. There is a whole lot of propaganda going on from kindergarten onwards.

Recent textbooks focus 90% on Canadian opinion and history (including aboriginal culture) and maybe 10% on viewpoints from outside Canada.

Now you know and you can draw your own conclusions. It all ties together including the real estate mess.
—————————

Very well said. Thank You.
All this best country in the world propaganda translates to “sit quietly and enjoy what you got. Especially if you’re an immigrant you should be lucky you are here. Don’t question $&#@, you are privileged”

http://news.nationalpost.com/news/canada/canadian-politics/canadian-politicians-no-longer-shy-about-declaring-canada-the-best-country-of-the-world

case for Switzerland:

http://www.acting-man.com/?p=37515

Canada residential School Propaganda:

https://www.youtube.com/watch?v=s_V4d7sXoqU

also, interesting

http://www.envronozone.com/The_Book/Propaganda/propaganda.html

#85 crowdedelevatorfartz on 05.20.15 at 10:48 pm

@#1 Mean Gene
“High School educated ……”
++++++++++++++++++++++++++++++++++++

What has “high school educated” got to do with anything?
You should have kept the insult to “Real Estate agent”.
Some of the stupidest people on the planet have their Masters degrees( and they teach….Hello rebuttal #79)

Some of the smartest never finished university ……

http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=2&cad=rja&uact=8&ved=0CCMQFjAB&url=http%3A%2F%2Fwww.buzzfeed.com%2Fashleyperez%2F23-famous-dropouts-who-turned-out-just-fine&ei=BEddVc_cO46zogSGwoDoDA&usg=AFQjCNEkzZQz0G3wPEJey2e_EwazTfAvZg

#86 crowdedelevatorfartz on 05.20.15 at 10:52 pm

@#81 Phil Kessel
Re “Leafs Fans”
+++++++++++++++++++++++++++++++++++
Classic!
I was driving in Vancouver the other day and saw a truck with Ontario plates.
The owner had a HUGE sign on the back window with the Leaf Emblem with a red circle and a slash through it.
The caption?
“Leafs! Forcing Fans to make excuses since 1967!

#87 Ontario's Left Coast on 05.20.15 at 10:58 pm

#9 Freedom First

Ask yourself a question: If you keep your thoughts to yourself all day, why do you suddenly feel the need to come off like the smartest guy in the room here? Again, it seems you are trying to cover up other inadequacies via night after night of boastful hyperbole.

Last night you said I was some envious, loser wannabe. Not at all true, but I’m not about to brag about my happy family life, great job, zero debt and considerable assets to a bunch of strangers. What exactly would be the point? Other than, of course, reminding us all ad nauseum that you always put your freedom first.

#88 seeing it from both sides on 05.20.15 at 10:59 pm

#71 Nothing Surprises
“What is the drawing force to live in Vancouver…”

I’ve lived across Canada over the years, and to continue living in Canada, Vancouver is the only choice if one hates the snow as much as I do. I gladly take the drizzle (yes, drizzle, not the 24/7 buckets of rain like people think it is) any day. Keeps it lush and green all year round.
The headlines are always focused on the downtown core , but Coquitlam is very liveable and the prices are not insane like the core. There are no bidding wars in the ‘burbs, and nothing wrong with the burbs. Lots of space to breathe. Only 40 minutes to the core.

#89 joblo on 05.20.15 at 10:59 pm

Politicians, Gubmnet, Marketers, Banks, BOC, sure lets blame em.
Shift the blame seems the game.
They are just doing their jobs, you think they really give a —- about you?
Come on man, personal responsibility, common sense, don’t have it suffer the fallout Suckers all huge FAIL.

#90 Godth on 05.20.15 at 11:02 pm

#74 GTA Observer on 05.20.15 at 10:15 pm

Canada is not a sovereign country, nor a democracy (as was already pointed out). The USA isn’t either, nor is any western country – hell, I’d struggle to find one on the planet that is, maybe Iceland.

(the interview begins @ 10 min.)
http://www.globalresearch.ca/the-peoples-figher-rocco-galati-on-globalization-sovereignty-and-civil-liberties/5367066

“nation state as a fundamental unit of man’s organized life has ceased to be the principal creative force: International banks and multinational corporations are acting and planning in terms that are far in advance of the political concepts of the nation-state.”
Between Two Ages: The Technetronic Era, 1971
Zbigniew Brzezinski

It’s a new world order.

#91 Mark on 05.20.15 at 11:04 pm

“But, in the end, the FOMC members must recognize that they cannot postpone the increase in interest rates indefinitely, and that once they begin to raise the rates, they must get the real (inflation-adjusted) federal funds rate to 2% relatively quickly.”

That’s insane. Real Fed Funds at 2%? The economy can barely even generate a sustainable real rate of growth of 2%. So it does strike me as completely delusional that that professor is calling for Fed Funds to actually be at the same rate as economic growth.

In this era of excess financialization and the coming era of de-financialization, the US economy will be lucky if it can avoid a 20-30 year long period of zero % real GDP growth and even eke out 1-2% real. So not a chance that Fed Funds are going to be 2% real (ie: 4% nominal) unless it is the goal of policy makers to see the economy as one big smoking hole in the ground.

BTW, 7 days until the BoC’s next announcement. Just like last time, if they don’t cut, I will take the rest of the week off of posting. Most indications point to a rate cut as almost nothing with the Canadian economy has shown any stability or signs of improvement, but we were quite surprised last time as well.

#92 Ronaldo on 05.20.15 at 11:06 pm

#30 Patient in Richmond on 05.20.15 at 7:31 pm

Re: land shortage in lower mainland

The same sort of thing was been spouted by the realtors as far back as 1974. Agree, total BS.

#93 souvereigninternational on 05.20.15 at 11:07 pm

#83 crowdedelevatorfartz on 05.20.15 at 10:42 pm

@#45 David Lee
“In the spirit of Ayn Rand’s John Galt, this is why I say “No” to buying real estate in Vancouver….”
+++++++++++++++++++++++++++++++++++

Let me see if I get the irony of your “quoting” the fictional character John Galt.

You’re using a character in an Ayn Rand novel to argue the “unfairness” of the Vancouver housing bubble and the capitalist scum realtors/media/govt. that support it.

You realize that John Galt(aka Ayn Rand) was arguing against Communism and it’s destructive control of how people should work, think, etc.

So using Ayn Rand to argue why a capitalist shouldnt “game” the system is like using an avowed communist for crucial stock tips for your retirement.

Its ridiculous.
_____________________

You make little sense as usual. We certainly don’t have capitalism in this country. Pretty much all capitalist countries have turned to fascism as their unofficial ideology. Just ask Smoking Man or Mark. They will explain in few more worlds.

If most people are not willing to see the difficulty, this is mainly because, consciously or unconsciously, they assume that it will be they who will settle these questions for the others, and because they are convinced of their own capacity to do this.
Friedrich August von Hayek

#94 Nemesis on 05.20.15 at 11:22 pm

#ForgetAboutWaco… #RealBikersTerrorize… #GrindRod,BC…

http://youtu.be/-Cg_4keMt08

#95 Timmy on 05.20.15 at 11:26 pm

Tell her not to feel bad, I’m in my mid 40s and make over 80K a year and I’m still renting. Thanks to rampant foreign speculation and money laundering Vancouver has become unaffordable unless you want to buy one of those crappy little condos.

#96 pypes_diver on 05.20.15 at 11:28 pm

Please tell me you do not follow Marc Faber. If so, I hope you shower before you come here. — Garth

Having served in two different Armies (20 years in the Canadian Forces) has exposed me that one needs to search for many outlets of enlightening information, similar to looking after ones portfolio with diversification. Solo reading your blog would allow me to follow like all average Canadian that has put all their eggs in one basket. Following other bloggers allows me to take in what is best for my wallet.

#97 Sideshow Rob on 05.20.15 at 11:30 pm

# 42 Mister Obvious

Great post. I’m fortunate to be in a position to be able to buy a house outright and I just can’t make myself do it. My coworkers are the complete opposite. All flash and no cash. Typical Calgary.

#98 Sam Cycles on 05.20.15 at 11:34 pm

Garth

Isn’t a bit naïve to say that there will never be another financial crisis…..I mean booms and busts are part of the free market cycle….so it is inevitable at some point. Assuming the current bull market is running near a top, and interest rates are going to rise, why not tweak the 60-40 couch potato portfolio to include a huge cash and gold portion(greater than 50%). Telling people to buy equities near the top is very risky!

#99 Christopher Lackey on 05.20.15 at 11:35 pm

#dont have a million.
talk to mike babcock. He just got 50.
There was a time when being a millionaire meant being exceptionally rich. Part of the 0.01%, and therefore, exceptionally talented at being a hockey coach or whatever. Now we have tens of thousands of millionaires, on paper. Yes a million does not buy what it once did. But it is still a difficult sum to amass, and few people do, inflated house prices in certain markets notwithstanding. My point?

I agree with a lot of people here. If you scrape together seven figures by dint of your ingenuity and hard work, the last thing you would do is piss it away on one of these shitty houses

#100 Left Vancouver and Happy on 05.20.15 at 11:40 pm

My wife and I (both professionals with degrees) were making $150-175K/yr in Van. At $150K+/yr and 15 years into our careers, we felt ‘entitled’ to a house (oh, the selfishness, I know). So we left in 2010. We make less now, but live very comfortably. I know many other skilled professionals have also left since 2010. And how many do you think are wanting to move there, from the rest of Canada, when an ‘avg’ house with 10% down is going to run them a $6K/month mortgage? None.

Eveline Xia has every right to run her campaign. Vancouver is being gutted of people who actually contribute to a vibrant city, in favor of foreign speculators, sleazy realtors and politicians. If it weren’t for the politicians making the rules, it would be criminal…

#101 observer on 05.20.15 at 11:48 pm

81 Phil Kessel on 05.20.15 at 10:37 pm
Ha! Leafs fans are as pathetic as house horny youngsters. Always ready to believe things will only go up.

The tale of two delusional cities.

Just like the leafs, Toronto West (Vancouver canucks) are high on the sauce. Even if they try to make the playoffs next year they probably won’t.

The Vancouver fans are fools, thinking the twins can take them to the promise land. What save them this year was losing to Calgary, Cause if they faced the ducks, they would of just embarassed themselves. At least the flames had heart and put a decent battle, just to be spanked down and losing in 5 games

#102 Tons of Land on 05.20.15 at 11:50 pm

BruceBruce,
Are you kidding? You and everyone else who spews nonsense about the lower mainland running out of net new land must have your head so far up your backside that you can’t breathe. A ten minute drive beyond the boundary of Vancouver proper in any direction brings into view hundreds of hectares of developable property. This doesn’t take into account what’s visible from the air should you be flying into Vancouver from the east, south or north. I’m so sick of this argument justifying the high cost of housing in the 604.

I agree with Mark on this one and would add that the market is not based on sound principles, but rather an emotion driven heavily marketed ponzi scheme by the likes of Mr. Rennie.

#103 notagreaterfool on 05.21.15 at 12:14 am

There is no housing bubble in Canada: Finance Minister Joe Oliver

http://www.bnn.ca/News/2015/5/20/There-is-no-housing-bubble-in-Canada-Finance-Minister-Joe-Oliver-.aspx

#104 The American on 05.21.15 at 12:23 am

At #74: GTA Observer, you ask, “How come American exceptionalism is bad but Canada “best country on the planet” is good? Just curious.”

Americans often ponder this notion from our Northern cousins, because as we see it in the U.S., there simply isn’t a more nationalistic country on the planet than Canada. I could honestly write a days-long entry on this topic, but I’ll point out some basics, and you do the math.

You cannot pass a McDonald’s in Canada without seeing a maple leaf in the middle of the golden arch. You rarely will find a Canadian abroad without a maple leaf stuck on the back of her/his backpack. If you were to take all the Canadian brands that use the term “Canada” or “Canadian” in it, and instead replace it with “United States,” it would sound rather ridiculous (seriously, it would go on for pages, when the same companies/brands would simply omit the term United States), Canadian media is run by the government, the Canadian airlinE, the largest monopolies in the G20 (including cell carriers), Canadians constantly bringing their government-backed media to the U.S. to “test” Americans on their knowledge about a country, Canada, that is smaller than the state of California (sheesh, fox guarding the henhouse much?), brands and concepts that are continually ripped off from the Americans and then re-packaged as a “Canadian” concept, blah, blah, blah. There are the handful of Americans who are absolute flag-waivers, no doubt about it, but as a percentage, I guarantee it is lesser than than of our Canadian cousins. I travel the globe, and I will say there is no country, and I mean NO COUNTRY on EARTH that has more flags waiving from private business, homes, government entities, cars, and freaking fast food restaurants than Canada. It’s an absolutely delusional notion to believe for a split second that Canada is not nationalistic. Americans find Canadians to be sold, at birth, the notion that they are superior, entitled, better educated, and actually believe Americans think they are superior to Canadians. Even the measures by which the Canadian government uses to present fact-based data differs from the U.S., often geared to present a much rosier picture of what’s going on in Canada in way of healthcare, military, economy, housing markets, politics, etc. I can use birth-rate as an example. Canada uses a completely different measure than the U.S. to provide statistics surrounding birth rate than the U.S. It’s like there’s a big chip on that shoulder, and it’s a chip nobody has put there but your forefathers. Canadians are, in fact, the only people I know who believe Canadians are a quiet and humble people, especially when traveling abroad. In fact, many are found to be overly nationalistic and combative, encompassing inferiority complexes when they encounter an American. How else can you explain the 33 Canadian flags hanging off the Canadian embassy in Washington D.C. when every other nation in the city has a single flag of their own hanging from the front door? Canada SCREAMS “CANADA!” But, the government-owned and backed media sells it’s citizens on the false notion that instead it whispers it.

#105 IKnow on 05.21.15 at 12:34 am

#52 espressobob on 05.20.15 at 8:54 pm
OK,lets sign for 500k for a bird coop along with taxes and fees, otherwise we are priced out forever?

Did that make any sense? No it didn’t. Why would it?

———————————–

It makes sense because some culture (hint: on the other side of the big pond) can value that coop at $2M hint. Call that the new world order, new paradigm, they’ve lost their marbles, whatever. The market may stay irrational longer than Vancouverites can stay sane.

#106 IKnow on 05.21.15 at 12:37 am

#38 Ben on 05.20.15 at 7:51 pm
Rents are defined by wages. That’s why they haven’t risen.

House prices are defined (when demand exceeds supply) by available credit. That’s why we’ve had the walk down to zero interest rate.

Come on guys this should be common knowledge for people on a blog like this.

————————————-

So where will the inflection point be?
When 3k a month can rent a $5M house?
Now the rate is $3k to 2M

#107 Waterloo Resident on 05.21.15 at 12:45 am

This is what I am seeing more and more with young people buying today’s houses:

They put only the bare minimum down on a house, trying to buy a house that is 120% of what the can afford. They can meet the first 83% of their monthly expenses from their employment earnings, but the other 17% has to be pulled out of thin air. Their plan to do this magic trick is this:

1 – For the first 2 or 3 years use credit cards to meet this extra 17% that they DON’T HAVE.

2 – As the house accumulates in value, by year 3 or 4, get a home equity loan to pay off the credit cards, AND to continue to make the 17% payment each month that they DON’T HAVE from their income.

3 – As their house continues to accumulate in value, take more and more home equity loans out to put down on other houses, to be used as rental income, using first their credit cards to help make the monthly payments, then as these rental homes rise in value = take out home equity loans based on the rise in value of that house, and use this to purchase yet more houses.

RINSE AND REPEAT.

#108 Mountain Man on 05.21.15 at 1:55 am

“Nobody’s entitled to a house.”

Correction:

Nobody’s entitled to a house in Vancity or TO. You want to play in the big leagues, expect to pay big league prices.

#109 DisgustMadeMePost on 05.21.15 at 2:35 am

#80 seeing it from both sides on 05.20.15 at 10:36 pm
#69 Wiseguy

“I just read an article that said the mayor of Vancouver rents a condo downtown…..hmmmm….does that tell you something!”

Perhaps you missed the part which tells that he is recently separated and moved out of their matrimonial home in ritzy Point Grey…?? Guy’s gotta have some place to crash in the interim.

………

Me thinks he’s sold two of his houses now.

Leading by example?

#110 Shane on 05.21.15 at 2:50 am

Garth,

Metro Vancouver detached houses are selling like crazy and prices are going through the roof. Inventory is at a low. When is that correction going to happen? I think we were wrong to wait.

Shane

#111 Londoner on 05.21.15 at 5:13 am

Peter Schiff is a perma-bear and he’s also a gold-bug. No doubt, he uses fear to sell his precious metal and investment advisory services. However, every now and then his analysis of economic data is very succient. One such example was his recent commentary about the April US jobs numbers. Of course this will fall on deaf ears to those in the pro-USA camp, but have a read for yourself:

http://www.europac.com/commentaries/see_no_evil_what_we_chose_ignore_april_jobs_report

So tell me, what will the Fed do in 2-3 years time when the economy has reached full productivity, inflation is at the desired 2% level and interest rates have “normalized”? After all, isn’t that what all mainstream economists would have you believe?

The US may have stopped relying on selling over priced real estate to each other for economic growth (a lesson Canada and the UK still have to learn) and they’ve even started investing capital into productive industries. However, this change in underlying economic drivers is a long and slow process. In the mean time the US will face structural unemployment until sufficient time has passed to allow it’s citizens to change their attitudes towards debt and productivity. As a result the US Fed will move monetary policy slowly and deliberately to nurse along the fragile recovery. They will use a data based approach as opposed to the time based approach which has been suggested on here.

#112 Dominoes Lining Up on 05.21.15 at 5:50 am

It’s hard to fully appreciate the chutzpah of the denial implicit in the Fraser Institute report just out.

The right-wing “think” tank says our debt to income ratio is “not a problem” because 2/3 of that is mortgage debt, “which is the kind of debt you want people to have” and is “fully secured”.

Just in time to try to help prop up Harper’s re-election?

In the news and on radio and tv somewhere near you today.

The great denial domino, ready to fall?

http://www.cbc.ca/news/business/household-debt-is-under-control-in-canada-fraser-institute-says-1.3080638

http://www.theglobeandmail.com/report-on-business/economy/canadians-dealing-with-debt-prudently-despite-record-levels-fraser-institute/article24508666/

#113 davikk on 05.21.15 at 6:05 am

SAN FRANCISCO IS NOW UNAFFORDABLE TO 99% OF THE US POPULATION.

http://investmentwatchblog.com/san-francisco-is-now-unaffordable-to-99-of-the-us-population/

#114 Squirrel meat on 05.21.15 at 7:46 am

#104 The American on 05.21.15 at 12:23 am
At #74: GTA Observer, you ask, “How come American exceptionalism is bad but Canada “best country on the planet” is good? Just curious.”

Americans often ponder this notion from our Northern cousins, because as we see it in the U.S., there simply isn’t a more nationalistic country on the planet than Canada. I could honestly write a days-long entry on this topic, but I’ll point out some basics, and you do the math.
——————-
You seem a tad obsessed.

#115 we're fiiiiiiiine on 05.21.15 at 8:07 am

#112 Dominoes Lining Up

Garth, why worry about debt, the Fraser Institute says we’re fiiiiiiiine (said with sarcasm).

#116 Polozified on 05.21.15 at 8:09 am

#53 TurnerNation on 05.20.15 at 8:54 pm
825k for an old junker in a poor postal code.

Unless it’s been stripped to the bones and rebuilt you have what? A project.

http://www.torontolife.com/informer/toronto-real-estate/2015/05/14/the-sell-a-savvy-couple-use-social-media-to-sell-their-parkdale-investment-property/
___________________________________________

Woe betide the person who buys from a “Real Estate Investor” with a daughter named Rooksby.

#117 crowdedelevatorfartz on 05.21.15 at 8:32 am

@#93 soverigninternational

Deep.

#118 The American on 05.21.15 at 8:40 am

At #110: Shane The Realtor, then me thinks you should buy three! Seriously, you’re going to put that crap on people here on this blog? You sound like a used car sales man. Inventory low? No, not really. A simple search (that requires me to agree to a terms and conditions to SEARCH for a property in Canada on Realtor.ca yielded nearly 6,000 listings!!!! THAT IS NOT LOW INVENTORY in a city of 608,000. Would you like to know what low inventory is? Go South to Seattle, a city that is larger than Vancouver, and only has 1,100 listings, or only 18% of what Vancouver has! Can you really be serious? Also, by the way, I did a very simple search for Vancouver Island. Want to know how many listings pulled up? Hold on to your asses, folks! OVER 37,000!!!!!!! Seriously? On an island of only 760,000 people? This just goes to prove the b.s. I know Canadians are being fed by the CREA. There is ZERO justification for prices to rise with inventory levels like this, coupled with a flailing or nearly non-existent economy.

#119 Q2 Duplex Drive on 05.21.15 at 8:50 am

Eveline Xia – what a refreshing break from all the house-obsessed youngsters I see in Toronto. Lives alone, no car, frugal – more power to you!

#120 brucebruce on 05.21.15 at 9:04 am

TO EVERYONE asking (or telling?) saying there is land left in the GVA or GTA there isn’t. Just because you see it on google maps doesn’t mean it’s usable. The government regulates it. Environmentalists have there say. You can’t switch farmland to suburbia these days. It’s all protected. Furthermore, is everyone just assuming we can continue to build outwards and continue the economic disaster of urban sprawl??? Is this blog really that silly? Think of the cost of living when you live 1.5 hours from work. Density is happening and anything ground related is valuable!!

And, yes, Canada is the best place on earth to live. Not only because it’s rated so highly, but it’s safe, free healthcare the list goes on. Now, if your some fancy hipster artist go live in Berlin or Paris. Been there. Done that. This is one beautiful country we have and I guess everyone doesn’t even realize it. I guess everyone stressing to much over their portfolios to get out and enjoy life.

#121 brucebruce on 05.21.15 at 9:05 am

#102 and everyone else who thinks there is unlimited land: Check you facts before you assume otherwise.

#122 fixie guy on 05.21.15 at 9:07 am

“Nobody’s entitled to a house.”

Financial industries aren’t entitled to government backed business models and the Rennies aren’t entitled to municipalities falling over each other to treat him like royalty. yet it continues. Kick the corporatist sycophants out of office and level the playing field again and this will rectify itself.

#123 Daisy Mae on 05.21.15 at 9:22 am

Fraser Institute says not to worry about out massive debt. We’re doing just greeeaat…. *sigh*

http://www.cbc.ca/news/business/household-debt-is-under-control-in-canada-fraser-institute-says-1.3080638?cmp=rss&cid=news-digests-canada-and-world-morning

#124 Kaitlyn Brady on 05.21.15 at 9:23 am

I think that’s all that Eveline was every trying to say. As a Millennial myself, I make more than my grandfather ever did, while he had 1. a spouse who didn’t work 2. A house on Queen Street in Hamilton 3. A cottage on Lake Erie 4. a boat in the harbour 5. 2 cars in the driveway 6. multiple vacations a year 7. an alcohol problem which meant he sent many weekdays nursing a hangover.

The #donthaveamillion campaign was never about “gimme gimme gimme” it was about pointing out how broken this system is for those only getting onboard now.

#125 Prairieboy43 on 05.21.15 at 9:41 am

To the American #104. Agree with many of your points. However Canadians are Superior at Hockey.
With less than 300 yrs of European/African/Asian migration. We may not be Native to N.A. However she (N.A.), has been a great journey in 300 yrs. Thank your Ancestors, for doing the grunt work.

#126 Squirrel meat on 05.21.15 at 9:43 am

Jeb Bush for president!

http://news.nationalpost.com/news/world/stop-insulting-our-neighbour-jeb-bush-slams-u-s-president-for-poor-relations-with-canada

#127 Jeff on 05.21.15 at 9:49 am

“But they do nothing because they don’t want to be in power when the adjustment takes place, now that they have allowed to massive debt to occur.”

This is my biggest concern.
Is it at all possible that the BoC (possibly at the “request” of whatever government is in the hot seat at the time) drops interest rates further to keep the real estate gravy train on the tracks?

#128 The Professor on 05.21.15 at 10:10 am

#104 The American:
Hear, hear. Being a dual US/CDN citizen currently living in GTA, I couldn’t agree more. I wish I had a nickel for every time I hear a fellow Canadian tell me how Americans are fat, stupid, and flag-waving nationalist while Canadians are humble, nice, and peace-loving. What nonsense! Read a social-psychological study which asked US/Canadians/Chinese/Iranians to rank their own and other groups and only Canadians ranked themselves better than everyone else!

#129 fancy_pants on 05.21.15 at 10:34 am

on the flip side for Wetcouver
http://www.vancouversun.com/business/Exodus+millennials+threatens+Metro+Vancouver+economy/11070861/story.html

#130 Joe O says we're ok! on 05.21.15 at 10:36 am

http://business.financialpost.com/personal-finance/mortgages-real-estate/joe-oliver-tells-realtors-ottawa-will-stay-out-of-housing-market-because-no-bubble-seen

#131 Mike T. on 05.21.15 at 10:39 am

Brucebruce, governments of yesterday had people convinced they lived on a flat Earth despite the ROUND sun, the ROUND moon, and the ROUND other planets. There is no shortage of anything on Earth.

Deception is very much alive today.

Government borderline criminal?

I would take it so much further.

Until Stephen Harper comes along and tells us what we (humans) really are he and his kind have nothing for me.

What is it to be human? You have to find out yourself, no one can explain it to you. I can say the human form is NOT a product of random evolution just as it was not created by an invisible man in the sky.

But what if you are that invisible man…..

#132 Mark on 05.21.15 at 10:45 am

“Is it at all possible that the BoC (possibly at the “request” of whatever government is in the hot seat at the time) drops interest rates further to keep the real estate gravy train on the tracks?”

No. First, the BoC doesn’t answer to ‘requests’ of government. Second, the RE market cannot be propped up by central bank policy once it is past the peak (which it clearly is, the price peak being achieved 2 years ago). Thirdly, if rates are unduly low, retail rates won’t come down anyways as inflation concerns will over-ride such in the bond and short-term funding markets.

Rates are coming down in Canada, all the way down to zero, and a program of QE or similar will be started. But this will be in response to the deflation that is present from the declining housing market and the severe truncation it creates on consumer demand. Not catering to the electoral whims of a political party. Even though it may seem that way.

Either you do not know what deflation is, or you cannot give up a wrong position. In any case, there is no deflation in Canada, nor will be in the near future. — Garth

#133 saskatoon on 05.21.15 at 10:47 am

#124 Kaitlyn Brady

so……………………..

you don’t make more.

#134 CalgaryRocks on 05.21.15 at 10:49 am

#108 Mountain Man on 05.21.15 at 1:55 am
“Nobody’s entitled to a house.”

Correction:

Nobody’s entitled to a house in Vancity or TO. You want to play in the big leagues, expect to pay big league prices.

LOL. Vancouver & TO are the big leagues. So funny.

I’m starting to agree /w the American. Canadians are delusional.

#135 saskatoon on 05.21.15 at 10:51 am

#120 brucebruce

dude, canadian “health care” ain’t free!

geesh.

so naive.

#136 Dominoes Lining Up on 05.21.15 at 10:57 am

In other news, particleboard suburbia may be getting much less attractive, which could seriously weaken real estate enthusiasm there longer term.

New McMansion tax in Mississauga:

http://www.thestar.com/news/gta/2015/05/20/mcmansion-tax-coming-to-mississauga.html

Plus tolls for suburban commuters being debated:

http://www.theglobeandmail.com/news/toronto/toronto-councillors-suggest-tolls-for-gardiner-expressway/article24497341/

Of course the truth is that places like Mississauga, Milton, Ajax, Newmarket etc… have long been subsidized by urban provincial taxpayers who pay for a big share of their highway infrastructure. In Toronto, expressways are paid for only by local taxpayers inside its boundaries, even though it is mostly suburbanites who use them the most.

In Mississauga, they have been living in fantasyland for 40 years, with real municipal costs subsidized by one time development charges, which are now drying up due to lack of available industrial and other land for building. Fiscal reality is now setting in, even Hazel knows it and said so in her final term.

It’s always struck me as quite ironic that so many from suburbs consider themselves conservative politically, when economically they are actually closer to welfare bums living off the money of others when it comes to basics like roads and infrastructure.

In the case of the McMansion tax, this is an example of environmental reality meeting bad design with too much overpaving of the ground surface. You see this too in some parts of Toronto, popular with certain social and cultural groups who seem to like nothing better than to tear out a lawn or garden and put down asphalt or concrete to park their beautiful vehicles on. This is ugly, lowering property values, and it means much more water runoff into the storm sewer systems, which costs money for expansion, damage and maintenance especially now with more global warming and more frequent storms, damages lake water quality etc… Of course, that has to be paid for, and it will through even higher taxes in such badly designed housing areas.

We will soon be much closer to the suburban lifestyle charging residents there what it really costs. For too long, suburbia has externalized too much of its real economic (which also now means environmental) costs upon more dense urban populations.

Major centers like Toronto are seriously pinched and have to find new revenue. Mayor Tory may want to spend an extra half billion on the Gardiner, but he won’t politically be able to do that and also reject tolls on it.

Another couple of ways that real estate in suburbia may get less appealing soon.

#137 Rainclouds on 05.21.15 at 10:58 am

Anecdotal of course:

At the Notary in Van yesterday.

She commented on “how crazy busy” it was. “Real Estate is Nuts right now. Bidding wars, have been working 10 hours a day since April.”

Who is buying? Local or offshore?”

“Mainly Local, a few offshore”

#138 Mike T. on 05.21.15 at 11:09 am

Apologies for continuing….

Dear Rona Ambrose,

Please read:

http://www.castanet.net/news/Penticton/140268/Medical-pot-for-kids

she just said there is no medical evidence marijuana has healing benefits – I believe she is lying

#139 The American on 05.21.15 at 11:09 am

At #125: Prairieboy43, I completely agree with you. Canadians are indeed superior at hockey. Hockey isn’t really on the radar of most Americans. Don’t forget how many Americans are playing on the Canadian teams now. Americans are superior at Basketball, a Canadian-ivented sport :-) You have good points.

At #114: Squirrel Meat, “obsessed” is slapping a maple leaf on every McDonald’s sign, hanging a Canadian flag off 1/4 of all the businesses, and gratuitiously slapping the word “Canada” on nearly anything, even at a granular basis. Truly, it is overwhelming the amount of maple leafs one sees in a day. Delusional is not recognizing the amount of this flag waiving going on around you. I pointed it out to my Canadian friends. At first, they were militant I was wrong and exclaimed how dare I make such an assumption, especially coming from an American. Two weeks later, they called me in horror with the realization they had become immune to it over the past decade, never noticing the amount of flag waiving going on in their own back yard. Apparently its really ramped up in that time. Just pointing out some frequently overlooked things. Like I said, of course it happens here in the U.S., and I am not a fan of it. But I can guarantee on a percentage of population, this behavior happens much more frequently in Canada. It’s sort of an inside joke among Americans now. Tables have turned.

#140 Bottoms_Up on 05.21.15 at 11:13 am

#9 Freedom First on 05.20.15 at 6:36 pm
—————————————————
You sound like you belong in the 1950’s.

#141 Bottoms_Up on 05.21.15 at 11:15 am

#135 saskatoon on 05.21.15 at 10:51 am
———————————————
Take it easy would you, Canadians use the term ‘free healthcare’ as pseudonym for ‘everyone has access to healthcare’. Most Canadians get this.

Get with the program.

#142 Mark on 05.21.15 at 11:15 am

“Either you do not know what deflation is, or you cannot give up a wrong position. In any case, there is no deflation in Canada, nor will be in the near future. — Garth”

Are you kidding? Falling prices are everywhere Garth, across most asset classes and prices of consumer goods. Including the housing market. And by most accounts, the housing bust really hasn’t, until recently, gotten underway in earnest.

What is supposed to replace all the demand in the Canadian economy that was the result of the debt bubble inflating? Now that such bubble is now going in reverse. There’s practically nothing in the pipeline, other than deflation and austerity. This is why the central bank will be forced into policy action, much as it was in the USA for the past 5-6 years.

Deflation will continue until something emerges from the ashes of it all to drive consumer demand and arrest falling prices.

#143 Bottoms_Up on 05.21.15 at 11:18 am

#104 The American on 05.21.15 at 12:23 am
——————————————————
Careful how much you post about Canadians, it just might go to our heads! LOL

#144 Bottoms_Up on 05.21.15 at 11:20 am

#106 IKnow on 05.21.15 at 12:37 am
————————————————-
Isn’t it possible that in markets such as Vancouver that you can’t really rely on standard metrics such as rent to owning ratios. Rents are set based on actual affordability, whereas ownership is based on speculation/investment.

#145 AB Boxster on 05.21.15 at 11:26 am

#50 Retired Boomer
Garth
__________________________
Fairly disingenuous listing to comments from both of you regarding the state of youth opportunity and real estate.

As boomers, each of you lived through economies that have their share of booms and busts.
Recessions in the 80s and 90’s.
The massive inflation and interest rates of the 70’s.

But lets be honest.
You also lived through the biggest real estate appreciation in history. You have also lived through one of the largest stock market rises ever.

You have also likely benefited from affordable advanced education costs, and a time when there was actually value to advanced education.

Mortgage rates may have been 12% but housing was affordable. And it was far more financially beneficial to pay 12% on the mortgage, for a house that only cost $80k.
Far easier to pay off principal, and far easier to save money if you have any savings at all.
It was possible to work the summer for $5 per hour and still pay for tuition and living expenses for a year of university.
Corporate pension still existed for the private sector.

So you got your education for free, got your houses for a fair price, had reasonable opportunity in the domestic employment market and perhaps retired with an actual pension. What you have accumulated over the years and realize today, was surely assisted by this.

Sure, you can convince yourself that your current success was due to your:
-frugality
-personal initiative
-real estate prowess
-financial savvy

Perhaps these had some impact on your success.

But conditions today are far different:
Real estate is in a massive bubble and is unaffordable.
The stock market is wildly volatile unpredictable.
The worlds economies are massively indebted and there is no money for social programs.
Domestic workers now have to compete globally.
Advanced education guarantees nothing. (except for a large student loan)

Every generation goes through their own challenges.
The current generation is going through massive challenges and change, the like of which has never been seen.

The fact that you ‘got yours’ during a time of affordable real estate, massive real estate and financial market growth is great for you.

Perhaps you should be a little less judgmental to those who are trying to navigate current times.

It’s a little rich to lecture and gloat on your successes when much of your current success was built on the overall richness of the past 40 years.
It’s fairly disingenuous to lecture generations that they have no right to own a house, when the conditions you grew up with provided you with a ‘fair opportunity’ to own a house.

What Eveline Xia is saying, is that she does not demand the ‘right’ to own a house.
She is demanding the ‘opportunity’ to own a house.

Good for her.

#146 Mister Obvious on 05.21.15 at 11:27 am

#120 brucebruce

There’s plenty of land right in here Vancouver City. The only problem is that much of it has perfectly sound and usable Single Family Homes sitting on top detracting from it’s commercial potential.

This is being rectified as we speak. City council is approving demolition permits on a massive scale. Entire blocks along Granville, Oak and Cambie streets are disappearing almost overnight to make room for ‘executive’ town homes and upscale mid rises.

Infrastructure and livability be damned. For many of those neighborhoods it has already ended… badly. The cancer is now spreading eastward to Main and Fraser streets. Plenty of ‘land’ remains in those areas to succumb to Bob Rennie’s philosophy of density.

There’s is no shortage of land, only one of aesthetics.

#147 The pumping continues on 05.21.15 at 11:38 am

or… you can’t make this shyte up!

http://www.vancouversun.com/business/Exodus+millennials+threatens+Metro+Vancouver+economy/11070861/story.html

deep in that story…
“Housing prices across all types of real estate are expected to rise by 4.87 per cent each year, while wages creep up by between 0.6 and 3.2 per cent.”

then another pumping piece

http://www.vancouversun.com/business/economy/Barbara+Yaffe+Vancouver+leading+country+economic+growth/11069486/story.html

But starting next year and over the ensuing four years, Vancouver will leave all other cities behind, with its economy expanding 3.2 per cent in 2016 and 3.5 per cent in 2017. Toronto’s annual growth over that time period is projected at 2.9 per cent a year.

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

Same “news” paper, same release date.

One article saying that there’s a crisis and few can afford to live here. The other article saying that Vancouver’s GDP will outpace all other Canadian cities!

Please pass the koolaid. I need a good gulp of whatever these idiots are drinking.

Put me in the category of the first article. Not a millenial but with 47 years and 20+ years of earning income in Vancouver, I’ve sold all and moving my family out. We’re portable, schooling and job included. Building a new business in a more affordable and more exciting locale from our real estate “winnings”. Yes, you read that right. We hit the jackpot. No other way to describe it anymore.

Sick and tired of the bullshit. Cashed out and moving away, never looking back. Don’t want my kids to grow up in this mess of artificial wealth without any decent job perspective.

Rich guys can clean up their own yards, scrub their own toilets and brew their own coffees.

DONE!

#148 NewWorldParty.org on 05.21.15 at 11:41 am

Politicians should do everything they can to prevent or mitigate bubbles.

Instead, they did everything possible to create this massive housing bubble. Read:

http://www.newworldparty.org/2011/04/housing-most-manipulated-market-in.html

#149 Mister Obvious on 05.21.15 at 12:02 pm

#144 Bottoms_Up
#106 IKnow

“Isn’t it possible that in markets such as Vancouver that you can’t really rely on standard metrics such as rent to owning ratios.”
—————————–

That depends upon what you mean by ‘rely on’.

If you mean ‘rely on’ to determine an achievable rent that covers the carrying and opportunity costs of an RE investment, then no, the metric is quite useless.

But if you mean ‘rely on’ to tell you that a potential RE investment is fraught with excessive risk and a probable recipe for financial heartache, then the metric is golden.

#150 The American on 05.21.15 at 12:07 pm

At #143: Bottoms_Up, LOL. It’s already gone to your heads :-) I, for one, love you all, even if it doesn’t come across like that. I want the best for my friends, and do not want people to follow the same footsteps on the path Americans were following a decade ago.

#151 Newbie on 05.21.15 at 12:10 pm

#145 AB Boxster

Your comments are very reasonable. Garth and the bashers of anyone born after 1960 might do well to attend to just how different things have become. Yes there have always been tough times (and stock markets have always been volatile, I disagree with you there)but the combination of late is quite depressing.

More evidence of how different things are – 52% of workers now are now in McJobs.

No Boomer worker had things that tough in the 1970s, no way, no how.

http://www.thestar.com/news/gta/2015/05/21/precarious-work-is-now-the-new-norm-united-way-report-says.html

#152 Koolaid drinkers on 05.21.15 at 12:11 pm

Bruce, stop drinking the koolaid.

Vancouver is just as “safe” as Singapore or Monaco. Healthcare isn’t free.

It is actually chronically underfunded and bursting at the seams, ie long waiting lists for elective surgeries. Compare this with any European country and you will be shocked to find that there are literally no waiting lists from Amsterdam to Rome and from Lisbon to Berlin.

Canada’s economy is mainly resources and agriculture. How much equipment for either industry is actually built in Canada? Where are the trains and rail cars built that run fuels, seeds and coal across Canada? Where are the planes built that fly our passengers? The one company that is manufacturing rail cars and jets is limping on its last leg. My prediction is that before the end of this decade, Bombardier will have been completely taken apart and sold off.

Stick to what you know and continue the “urban” planning in a city that’s wedged between mountains, an ocean and rain forest.

You would think that such a challenging environment would generate innovation as to how people can be housed and transported most efficiently.

But that doesn’t make Rob Rennie Marketing et al any richer! There’s either no talent or appetite in the city for any real planning.

Now keep doing what you’re doing and collect a nice paycheque from the city that you advertise so well. Maybe create more bike lanes.

Just don’t try and sell us any of your koolaid.

#153 millenial1982 on 05.21.15 at 12:34 pm

I wonder if the first couple mentioned in this article regularly reads this blog? Young couple renting in Vancouver and investing!

http://www.theglobeandmail.com/report-on-business/economy/housing/the-real-estate-beat/amid-canadas-growing-national-debt-more-choosing-to-live-loan-free/article24343434/

#154 Realtor007 on 05.21.15 at 12:56 pm

#136 Dominoes Lining Up on 05.21.15 at 10:57 am

Toronto is not subsidizing anyone, they are being subsidized to a large extent, Vancouver and Toronto have one of the lowest property taxes in the country per $1000 assessment but the most explosive RE market in Canadian history in the last decade+.

#155 waiting on the westcoast on 05.21.15 at 1:00 pm

#129 fancy_pants on 05.21.15 at 10:34 am
on the flip side for Wetcouver
http://www.vancouversun.com/business/Exodus+millennials+threatens+Metro+Vancouver+economy/11070861/story.html

~~~~~~~~~~~~~~~~~~~~~~~

Interesting article. Love how it is pumping up the perpetual growth in prices…. Then calls for government to further help subsidize housing.

People – let the market do its thing… If we did, this problem would have never gotten this big to start with!

#156 saskatoon on 05.21.15 at 1:12 pm

#141 Bottoms_Up

telling word choice:

“pseudonyms are most usually adopted to hide true identity.”

that being said,

i’ve got news for ya:

“free health care” (the pseudonym) isn’t hiding the fact that “everyone has access to healthcare…”

learn words first.

then use.

#157 Davy Dogs on 05.21.15 at 1:12 pm

#3 HD….like a lot of people who envy, spew jealousy and vitriol at the 1% I suppose persons like yourself will always hate people like myself who took his rent money as a student and made millions speculating on resource juniors…..I get it.

Oh Boo hoo ..I have a better life…a younger wife… I trade stocks at poolside while you drive your ice cream truck….it eats at your gut every minute of the day. I won…you lost…that’s life. You brought failure on yourself by hiding from reality…under a ‘couch’ no less. I find this mindset more prevalent in Canada than anywhere I have ever been….

Bwahahahahahahahahahaha….time for another lap. Success is ripped from the teeth of complacency….it can happen to anyone…who’s prepared to commit themselves. Anyone not willing to enter thew markets full time will never make money…nor should they. You’re the chum…we’re the sharks.

#158 -=jwk=- on 05.21.15 at 1:18 pm

@#154

#136 Dominoes Lining Up on 05.21.15 at 10:57 am

Toronto is not subsidizing anyone, they are being subsidized to a large extent, Vancouver and Toronto have one of the lowest property taxes in the country per $1000 assessment but the most explosive RE market in Canadian history in the last decade+.

—————-

Uh, lets throw some commercial taxes in there, and density in condo developments, then discuss, OK?

Toronto subsidizes all of Ontario, it is the economic and taxation engine of the province. There are towns in northern ontario with budgets smaller than the tax bill for First Canadian Place alone…

#159 Rational Optimist on 05.21.15 at 1:22 pm

120 brucebruce on 05.21.15 at 9:04 am

“You can’t switch farmland to suburbia these days. It’s all protected.”

This is a good one. Huge swaths of farmland (this country’s best by far, I might add) in southern Ontario are subdivided every year to put up single-family homes. “Protected”? Not on your life.

You might not realize this, also, but the green belt hasn’t had its tenth birthday yet. It has yet to survive a change in provincial government. I’m sure to you it seems like a feature of life existing since time immemorial, but we’ll see if it lasts. I certainly hope it does, but even if so, there is so much land in southern Ontario that it will continue to be a minor factor in home prices.

#160 That Guy on 05.21.15 at 1:25 pm

“It’s just that if professionals can’t afford to buy a house in this city then something’s not right. Housing is closer to food than anything else. It’s a necessity.”

Housing is a necessity. Owning a house is not. She is mixing the two concepts.

#161 Holy Crap Wheres The Tylenol on 05.21.15 at 1:26 pm

#152 Koolaid drinkers on 05.21.15 at 12:11 pm
Bruce, stop drinking the koolaid.
Vancouver is just as “safe” as Singapore or Monaco. Healthcare isn’t free.
It is actually chronically underfunded and bursting at the seams, ie long waiting lists for elective surgeries. Compare this with any European country and you will be shocked to find that there are literally no waiting lists from Amsterdam to Rome and from Lisbon to Berlin.

Canada’s economy is mainly resources and agriculture.

How much equipment for either industry is actually built in Canada? Where are the trains and rail cars built that run fuels, seeds and coal across Canada?

Where are the planes built that fly our passengers? The one company that is manufacturing rail cars and jets is limping on its last leg. My prediction is that before the end of this decade, Bombardier will have been completely taken apart and sold off.
Stick to what you know and continue the “urban” planning in a city that’s wedged between mountains, an ocean and rain forest.
You would think that such a challenging environment would generate innovation as to how people can be housed and transported most efficiently.
But that doesn’t make Rob Rennie Marketing et al any richer! There’s either no talent or appetite in the city for any real planning.
Now keep doing what you’re doing and collect a nice paycheque from the city that you advertise so well. Maybe create more bike lanes.
Just don’t try and sell us any of your koolaid.
___________________________________________
Actually one of my larger Canadian customers builds Railcars right here in Hamilton. They are not the only ones, so tell me more?

http://www.steelcar.com/

#162 happity on 05.21.15 at 1:27 pm

“Politicians at every level have been enablers of a bad situation.”

Finally, admittance.

#163 Retired Boomer - WI on 05.21.15 at 1:30 pm

#145 A B Boxter

Yes, it WAS my attempt at a sarcastic post.

Yes, each generation has it’s own challenges, and it’s own opportunities. Each member of each generation also is charged with making choices. Some will be wise choices, others not so much.

IF, Boomers “had it so good” why are a majority of them (US) so ill prepared for their ‘golden years’?? Most places in the US have seen no wild real estate appreciation pre-bust, or recovery? Sure, we have NY, LA, and San Francisco, etc… where prices have always been high.

Me, I’ve lived in Buffalo, Detroit rea, southern and western WI no WILD prices there…no great price appreciation either. I wouldn’t buy in a bubble today, nor would I buy at 12% interest back then.

As for higher education, dropped out of college as the cost could not be justified in my mind. Today even more so. Rergrets? No, it worked out just fine based on what I knew, not any ‘obedience certificate’ to quote a famous smokin’ man.

I had no “high income, no big inheritance either.” Did learn to live with in my income, save, stopped buying ‘new cars’ I have owned quite a mitt full in the past. That was wasteful…but it was the 60s-70s-80s..

Were I 20 today…. tech school, not college. Less out sourcing chances to any specialty. Still invest money, I know of no other decent option. I would only look to buy RE with 20% down. NEVER live in a high-cost area, the rewards NEVER fit the costs. If family is domiciled in high cost area, visit them infrequently.

Here in the US we have a house & senate that make laws, spends money, and tax. A President who is mostly a figurehead, and supreme court that determines the legitimacy of laws. 535 people who set the spending agenda, taxes, import export rules tariffs etc. By the way, our taxes ARE “too low” in my opinion, and based on my own tax payment history. Hey, I am not making the rules…

IF we are indebted, it is because they ruled it, if we have a surplus the same. This is not rocket science, it is mainly political, and money DOES talk there. Look at some of the legislation and see who it benefits. We aren’t as “FREE” as we might imagine…

This is your life, not theirs! Opportunities and Choices… Never the same between the generations is it?
Never was, never will be. Today always fades into tomorrow, different again. Choices…

I have young family members as well.

No, this is not a sarcastic post!

#164 DQ on 05.21.15 at 1:31 pm

#145 AB Boxster

Couldn’t agree more. Your explanation is the best rebuttal I’ve heard to date for all the boomers who think that anyone under 40 should just ‘suck it up’. What people of our generation is lacking is the opportunity to merely compete. Being a professional couple with graduate degrees with a combined income of $200k+ per year no longer earns you the ‘opportunity’ to even consider buying a house. Even though we’re in the top 3%, we’re told to not even dream of owning a house. The boomers love to talk about how interest rates were 17% in the late 80’s. They ‘struggled’ and now we should to. It’s complete apples to oranges. Boomers grew up in an era where one parent could stay home, the other could earn $40k per year and they could buy a single family detached house for $100k. Wow. A whopping 2.5x the income of a single earner while another stayed home. Give me a break. Stop telling anyone under 40 to move to Maple Ridge and commute 1.5 hours each way. Destroying your quality of life shouldn’t be the pre-requisite for being able to live in 1500 sq ft, or to have a patch of grass for your child to play on. I went to university (twice) and got a good job and now earn a good income specifically so I wouldn’t have to do that. Now it seems now matter how hard you try, no matter how much you earn, no matter how much you save, you never get farther ahead. Why do I even bother? What’s the point? I have absolutely no debt and about $350k free and clear invested. Both TFSAs maxed, RRSP almost maxed, RESP maxed, Non-Registered account containing the surplus investments. Still, even with all of this, home ownership (not the goal of life) is but an elusive dream. Worse still, I probably could afford a house if I swallowed an enormous amount of debt. The problem is, I too believe RE is in a massive speculative bubble. If I actually capitulated and bought (which I won’t do) and then the correction happened, I’d be left with a house that would be severely under water. That’s a path to financial suicide. So what’s a young, professional, well to do couple to do? Don’t say move to a small town in the interior. I grew up in Vancouver, born and raised. My family is here, my network is here, my connections are here. Why would or should I leave. I worked harder than most, got two degrees, as did my wife, and now we do well $200K+ per year, live within our means, invest, and still that’s not good enough. We played all our cards right got left in the cold. Now we have retired shoe salesmen living in houses they bought for $65k now worth $1.8 million telling us that we’re greedy and entitled and all the other insults they throw at anyone under 40. I honestly hope a massive correction comes and most of the greater fools young and old lose everything. When they do I’ll be there ready willing and able to vulch their house for 50 cents on the dollar. Until then, my nest egg grows.

Be careful. Having a degree (or even two) does not make you a better or more worthy person than a retired shoe salesman. That was incredibly arrogant and ignorant. In one sentence you destroyed your argument. — Garth

#165 HD on 05.21.15 at 1:49 pm

@ #157 Davy Dogs on 05.21.15 at 1:12 pm

#3 HD….like a lot of people who envy, spew jealousy and vitriol at the 1% I suppose persons like yourself will always hate people like myself who took his rent money as a student and made millions speculating on resource juniors…..I get it.

Oh Boo hoo ..I have a better life…a younger wife… I trade stocks at poolside while you drive your ice cream truck….it eats at your gut every minute of the day. I won…you lost…that’s life. You brought failure on yourself by hiding from reality…under a ‘couch’ no less. I find this mindset more prevalent in Canada than anywhere I have ever been….

Bwahahahahahahahahahaha….time for another lap. Success is ripped from the teeth of complacency….it can happen to anyone…who’s prepared to commit themselves. Anyone not willing to enter thew markets full time will never make money…nor should they. You’re the chum…we’re the sharks.
————-
I wasn’t sure if I was going to respond to your post or just ignore it….it sounded juvenile so why even bother?

I never attacked or referred to your character in any way…..not sure how you can ascribe jealousy, vitriol and hate to me based on what I wrote. Could you kindly point out to me where you got this from?

As far as I can make out, I merely voiced a difference of opinion.

Best,

HD

#166 Leo Trollstoy on 05.21.15 at 1:58 pm

Either you do not know what deflation is, or you cannot give up a wrong position. In any case, there is no deflation in Canada, nor will be in the near future. — Garth

Likely both.

Inflation above 2% by the end of 2016. Easy.

#167 devore on 05.21.15 at 1:58 pm

#68 pypes_diver

Refer to my post yesterday on Marc Faber’s imminent stock market collapse predictive power. But thanks for providing me with a decent 2015 link, it was getting tedious to collect them over the years.

#168 Leo Trollstoy on 05.21.15 at 2:04 pm

BTW, 7 days until the BoC’s next announcement. Just like last time, if they don’t cut, I will take the rest of the week off of posting.

They won’t cut.

Enjoy your time outside.

Again.

#169 TurnerNation on 05.21.15 at 2:09 pm

Chart of the week: http://schrts.co/8bkWGs

#170 None on 05.21.15 at 2:10 pm

#151 Freedom First on 05.20.15 at 6:13 pm
#143 None

You must be a woman.

=========

Nope I’m actually a middle aged male. Nice try though.

#171 IKnow on 05.21.15 at 2:11 pm

#149 Mister Obvious on 05.21.15 at 12:02 pm
#144 Bottoms_Up
#106 IKnow

“Isn’t it possible that in markets such as Vancouver that you can’t really rely on standard metrics such as rent to owning ratios.”
—————————–

That depends upon what you mean by ‘rely on’.

If you mean ‘rely on’ to determine an achievable rent that covers the carrying and opportunity costs of an RE investment, then no, the metric is quite useless.

But if you mean ‘rely on’ to tell you that a potential RE investment is fraught with excessive risk and a probable recipe for financial heartache, then the metric is golden.

___________________

+1, well spoken!

#172 brucebruce on 05.21.15 at 2:21 pm

#159 Rational Optimist

In fact, the Greenbelt is currently going through a review process as we speak with the intention of expanding, not shrinking it. Various land trusts have also been set up to protect the Greenbelt. I would suggest you go buy land located in the Greenbelt if this is what you really believe.

#173 lee on 05.21.15 at 2:25 pm

I’m hoping the suggestion the Bank Rate will go to 0% is true. This should pump up real estate values another 20% and allow anyone with a mortgage-free home to sell and retire in relative comfort forever, leaving the idiots who buy in at a temporary 1.7% rate to pay the piper. Rest assured people can only pay so much for rents and real estate rising 20% won’t budge rental rates. Anyone with real estate in the $900,000 or so range will be able to price war a sale into the 1.2 range and walk away with an equity portfolio generating a conservative 75,000 a year virtually tax free. That’s equivalent to a $135,000 a year income on the backs of fools.

#174 Nemesis on 05.21.15 at 2:26 pm

#StrangerThanFiction… #YouCan’tWriteThisStuff…

“With the known facts, there is really only one conclusion: Mr. Zhao did this for financial reasons. He thought that he could get a free house. Not just any house, but a very valuable house in West Vancouver.”

http://www.cbc.ca/news/canada/british-columbia/gang-yuan-dismembered-millionaire-allegedly-killed-for-his-money-1.3081189

#EpicCorporatePRFail,Or… #ProlesVs.Poles?… #NoloContendere…

[TimesColonist] – Jack Knox: B.C. ferry-naming contest invites spirit of scorn

…”On Tuesday, B.C. Ferries invited the public to take part in a contest to name three intermediate-class vessels being built in Poland.

On Wednesday, the public replied … and replied … and replied.

Gleefully malicious/seditious posts bearing the #NameAFerry hashtag swamped social media.”…

http://www.timescolonist.com/news/local/jack-knox-b-c-ferry-naming-contest-invites-spirit-of-scorn-1.1942035

#175 Mixed Bag on 05.21.15 at 2:27 pm

#79 crowdedelevatorfartz on 05.20.15 at 10:28 pm

Three month teacher strike? Think of the money the government saved not paying their salary in those three months. Makes one wonder what machinations possibly go on behind the scenes.

#176 Bottoms_Up on 05.21.15 at 2:28 pm

#164 DQ on 05.21.15 at 1:31 pm
——————————————-
Dude why are you complaining, $350,000 in cash assets and $200,000 yearly family income.

Tough life.

Life is full of choices, if you wanted a house that bad you could have one. Clearly.

I think it’s time you got over yourself.

#177 Bottoms_Up on 05.21.15 at 2:32 pm

#156 saskatoon on 05.21.15 at 1:12 pm
————————————————-
Ok most likely the correct word would have been synonym.

But since we’re on the topic, you should learn to read.

“pseudonyms are most usually….”

I’ll stop there and leave you to contemplate where you went astray.

#178 Rational Optimist on 05.21.15 at 2:37 pm

164 DQ on 05.21.15 at 1:31 pm

Kudos to you, Garth. I was unable to read that. Nearly fifty lines, no breaks for paragraphs.

#179 Holy Crap Wheres The Tylenol on 05.21.15 at 2:40 pm

#150 The American on 05.21.15 at 12:07 pm

At #143: Bottoms_Up, LOL. It’s already gone to your heads :-) I, for one, love you all, even if it doesn’t come across like that. I want the best for my friends, and do not want people to follow the same footsteps on the path Americans were following a decade ago.
_____________________________________________
I have to say that perhaps there is some truth to Canadians waving their own flag. What wrong with that? We did that all the time when I was a teenager in California. Have to say though we did have to raise a US flag on our front lawn above the Canadian one. Holy shit our neighbor once had a fit as he thought the second flag pole with old glory was about 6 inches shorter. By the way he thought we were all English (UK) never could wrap his around the idea that we sounded just like Californians.

#180 Rational Optimist on 05.21.15 at 2:40 pm

172 brucebruce on 05.21.15 at 2:21 pm

“I would suggest you go buy land located in the Greenbelt if this is what you really believe.”

If WHAT is what I really believe? I hope and believe it will continue to be protected area for the foreseeable future. The current run-up in home prices in the Toronto suburbs predates the green belt and, anyway, there is no shortage of land in southern Ontario even allowing for that land’s unavailability for development.

There is no shortage of land in southern Ontario. This is not a significant factor in the housing bubble there.

#181 Irony on 05.21.15 at 2:48 pm

How ironic that Eveline Xia has the naivety to complain about out of reach home prices in Vancouver when she should look no further than the tens of thousands of her descendants that have chosen to take up roost there.

She’s Canadian. Her descendants will be Canadian. — Garth

#182 Railcars on 05.21.15 at 3:03 pm

#161
Thanks for the education but I think you missed the point I was making.

What are the staples of Canada’s economy and where does the equipment and hardware mostly come from to run the businesses?

#183 Retired Boomer - WI on 05.21.15 at 3:04 pm

#164 DQ

You were NOT there in the 60’s 70’s 80’s don’t even try to guess it.

Today a $200 GRAND income and you can’t “afford” a house? You probably can’t “afford” kids either.

Your “kind” destroys the entire arguments for ‘your’ generation. Move to a cheaper area, earn $160K and try to fit in.

#184 Tom on 05.21.15 at 3:13 pm

#151 Newbie on 05.21.15 at 12:10 pm

Your comments are very reasonable. Garth and the bashers of anyone born after 1960 might do well to attend to just how different things have become. Yes there have always been tough times (and stock markets have always been volatile, I disagree with you there)but the combination of late is quite depressing.

More evidence of how different things are – 52% of workers now are now in McJobs.

No Boomer worker had things that tough in the 1970s, no way, no how.

http://www.thestar.com/news/gta/2015/05/21/precarious-work-is-now-the-new-norm-united-way-report-says.html

If precarious work is the new norm, why the hell would anybody want to tether themselves to illiquid assets.

As for the idea that people living in the 1970s didn’t have issues like we do today, think again. There was the October Crisis in 1970, the Energy Crisis, “stagflation” and any number of other issues.

Kids nowadays face challenges, some due to misguided baby boomer policies, many of them are of their own making.

#185 saskatoon on 05.21.15 at 3:13 pm

#177 Bottoms_Up

the point is not to insult.

the point here is that the phrase “free” health care covers up the fact that these “free” government services occur through legitimized, systemic theft–violent and unethical.

violent and unethical theft is not something to be celebrated.

to have real debates and understanding, truthful language/definitions must be used–and “pseudonymns” must be avoided.

slippery definitions push away truth.

ironically, without realizing it, you did (subconsciously?) select the correct word.

#186 LOL CANADA on 05.21.15 at 3:31 pm

learn to rent. The joys of renting are overwhelming.
You can find homes to rent for less than 2% of the value of the property per year in Van/Tor.
Some markets still make sense to own, but there are so much more freedoms renting. What is one good reason for owning if long term values are going to depreciate?

#187 The American on 05.21.15 at 3:41 pm

At#181: Irony, seriously? Careful… Your racism and bigotry are showing. Oh wait, you’re Canadian. You’re all-loving, giving, politically correct, educated, cultured, and all about diversity inclusion, right? Did you ever consider who was selling all that Vancouver dirt in the first place? Think about it.

#188 Canadian "Ownership" on 05.21.15 at 3:54 pm

Plenty resource based companies are owned by foreign corporations. The wheat board is now owned by the Saudis.

Most of the equipment to extract the resources or work the land is imported.

I’m asking the question. What is so great about Canada? Other than the massive landscape and the opportunity for foreigners to extract and build wealth here? The locals make up the bulk of the work force and supply a quality pool of labor but the OWNERSHIP of the assets and therefore the grit of what makes a country is NOT from here!

Government propaganda constantly telling its people how great this country is does neither count nor make it so.

Politics and environmental studies aside for a moment.
Latest example is the “deal” that BC Liberals made with Petrobras. Why couldn’t this be an effort that’s made in Canada, made for Canada and financed by Canadians? Why is it supposedly such great news that we’re selling out to another foreign entity?

I realize Canada has a relatively small population and a vast landmass but Canada is part of the G7. There has to be plenty wealth to draw from within Canada and if the funding is not there, it can surely be leveraged. The asset could be a balance sheet item to allow for the debt. That is how China is financing all its infrastructure expansion including ghost towns. Massive balance sheet expansion because concrete and land become assets which allow further debt.

Canada has some of the dumbest politicians but what does that say about the country and its people?

Great, eh?

#189 Ponzius Pilatus on 05.21.15 at 4:07 pm

Be careful. Having a degree (or even two) does not make you a better or more worthy person than a retired shoe salesman. That was incredibly arrogant and ignorant. In one sentence you destroyed your argument. — Garth
————-
Al Bundy is now a retired shoe sales man, and doing very well.

#190 Spiltbongwater on 05.21.15 at 4:27 pm

“Mackenzie is recommending a home owner expense deferral account that would allow low-income seniors to defer paying for things like hydro, home insurance and repairs until after their home is sold.” Isobel Mackenzie, BC’s Seniors advocate.

We already allow the wrinklies to defer their property tax. How much interest would the wrinklies pay for the roof replacement deferral?

#191 Holy Crap Wheres The Tylenol on 05.21.15 at 4:30 pm

Are we a dictatorship? Perhaps Stephan has gone too far?
Well most of the 8th graders think so.

http://www.msn.com/en-us/video/animals/a-quarter-of-us-8th-graders-think-canada-is-under-the-rule-of-a-dictator/vp-BBk22pV

#192 Julia on 05.21.15 at 4:30 pm

#154 Realtor007

“…Vancouver and Toronto have one of the lowest property taxes in the country per $1000 assessment…”

Argh. I hate that argument.

So an identical house is worth more in Toronto or Vancouver than everywhere else. So the mill rate is lower. Optics. A way to calculate property taxes.

You want to compare property taxes? Compare it in absolute numbers on an identical property.
Everything else being equal, why would we pay more taxes in dollars on an identical house and lot just because it is worth more?

#193 Investorz on 05.21.15 at 4:35 pm

“Bond yields rising – will Canadian mortgage rates follow”?- BNN

http://www.bnn.ca/Video/player.aspx?vid=618090

She thinks rates will never go up to what they were, that we’ll see a 0.15% rate increase over the next 6 months. Very slow increases.

It’s one think if they rise slowly. It’s something else if Poloz cuts them. I worry about the second.

Imagine the insanity of house buying that would follow…

Half the “housing apocalypse” commentors here would give up and buy, then start repeating what Realtors have said for years and reproduce on their granite counters.

#194 Bye Bye Berta on 05.21.15 at 4:39 pm

Welcome to economic Armageddon:

http://calgaryherald.com/business/energy/ewart-oilpatch-communicates-125000-looming-job-loses-in-alberta-to-notley

#195 gut check on 05.21.15 at 5:09 pm

Mom, THIS is the point:

exerpted from “Our Social Depression” by Charles Hugh Smith:

“This erosion of opportunities to complete life’s stages and core dramas is rarely recognized, much less addressed.

The consequences of economic stagnation are not limited to finance: stagnation is causing a social depression.We can best understand this social depression by examining how the natural stages of human life are being disrupted.”

read the rest here:
http://www.blacklistednews.com/Our_Social_Depression/44073/0/38/38/Y/M.html

#196 SWL1976 on 05.21.15 at 5:15 pm

Always an interesting read here at the greater fool. Mark throws out a good one liner worth a chuckle.

“If you honestly believe there’s a ‘land shortage’, please put your urban planning degree back in its envelope, and return to issuer.”

And 165 HD – As far as I can make out, I merely voiced a difference of opinion.

——

Some people do not do well with a difference of opinion, and resort to childish rants

It explains more than they know

Best,

SWL

#197 Godth on 05.21.15 at 5:25 pm

Enjoy it while you can.

The Era of Impact
http://thearchdruidreport.blogspot.ca/2015/05/the-era-of-impact_20.html

“That’s what happened in the 1920s. All through the decade in the US, the rich got richer and the poor got screwed, speculation took the place of productive investment throughout the US economy, and the well-to-do wallowed in the wretched excess chronicled in F. Scott Fitzgerald’s The Great Gatsby while most other people struggled to get by. The whole decade was a classic era of pretense, crowned by the delusional insistence—splashed all over the media of the time—that everyone in the US could invest in the stock market and, since the market was of course going to keep on rising forever, everyone in the US would thus inevitably become rich.

It’s interesting to note that there were people who saw straight through the nonsense and tried to warn their fellow Americans about the inevitable consequences. They were denounced six ways from Sunday by all right-thinking people, in language identical to that used more recently on those of us who’ve had the effrontery to point out that an infinite supply of oil can’t be extracted from a finite planet. The people who insisted that the soaring stock values of the late 1920s were the product of one of history’s great speculative bubbles were dead right; they had all the facts and figures on their side, not to mention plain common sense; but nobody wanted to hear it.”

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

#198 crowdedelevatorfartz on 05.21.15 at 5:27 pm

@#175 Mixed Bag
“Three month teacher strike? Think of the money the government saved not paying their salary in those three months. Makes one wonder what machinations possibly go on behind the scenes….”
+++++++++++++++++++++++++++++++++++

Actually I think the strike only lasted 3.5 weeks but I didnt really pay attention because I dont have kids……even though my tax dollars go towards Educating little obnoxious, runny nosed “emperors” that expect to be told “Good Job” just for doing things like homework or cutting grass or taking out the garbage.
A nation of politically correct weiners hath been created.

But I do agree with you that the money savings for each week of the strike certainly crossed some politicians mind.

#199 Bob the Builder on 05.21.15 at 5:28 pm

#164 DQ

I’m with you. Only difference is we bought our first house in the early 2000s. Why should you be called entitled to want what everyone before you had a chance to get? Stay put, wait your turn, and when the correction happens you’ll be laughing. Some real idiots here telling you to move elsewhere. Shoe salesman is a good example. Nothing wrong with him having been able to afford a house, but you get looked down upon for feeling entitled? BS.

#200 Nagraj on 05.21.15 at 5:34 pm

Re the CANADA topic brought up by “The American” poster:
The CBC is legally mandated to promote national unity – I doubt that any news org in the US or Europe is legally mandated to promote national unity.
Canada is the developed West’s youngest nation, between its British heritage and Americanization there’s a lot of of Unique Identity issues.
Greece, for example, has succeeded in not sliding off the map – for a very long time; it is not a given that Canada in its current form will survive as long.
One could argue that Canada is a colonial construct, an erstwhile British colony and presently a quasi-American quasi-colony.
Canadian braggadocio’s fatal flaw is what’s still missing in all the braggadocious nonsense: the critical cultural marker (neither Stratford nor Wayne Gretzky qualify, sorry).
As long as the Canadian economy holds up reasonably well compared to the US economy, and as long as Canadian unemployment isn’t very much higher than American unemployment in the border states, and as long as Canadian prices aren’t insufferably higher – Canada has time to develop a clearly unique identity.

#201 Nosty, etc. on 05.21.15 at 5:58 pm

#151 Newbie on 05.21.15 at 12:10 pm — “More evidence of how different things are – 52% of workers now are now in McJobs.” Except this McDonalds. The times they are a’changin’ (very quickly).

#202 cramar on 05.21.15 at 6:04 pm

#164 DQ on 05.21.15 at 1:31 pm

“Now it seems now matter how hard you try, no matter how much you earn, no matter how much you save, you never get farther ahead. Why do I even bother? What’s the point? I have absolutely no debt and about $350k free and clear invested. Both TFSAs maxed, RRSP almost maxed, RESP maxed, Non-Registered account containing the surplus investments. Still, even with all of this, home ownership (not the goal of life) is but an elusive dream.”

—————–

If home ownership is not the goal of life, then why are you so obsessed with paying homage to the god of RE? You are better off financially than probably 99% of the population, yet it isn’t enough. You are unthankful for what you have! You are fortunate that your wealth is not stripped from you and given to someone who would be ecstatically thankful for it.

#203 crowdedelevatorfartz on 05.21.15 at 6:09 pm

@#199 Bob the Builder
“Some real idiots here telling you to move elsewhere.”
++++++++++++++++++++++++++++++++++++

Build single family houses here in Vancouver do ya Bob?

No conflict there……

#204 That Hate Canada Beat on 05.21.15 at 6:18 pm

#200 Nagraj on 05.21.15 at 5:34 pm

Canada does have a national identity: Insufferably smug anti-traditionalist xenophobes.

#205 crowdedelevatorfartz on 05.21.15 at 6:20 pm

@#201 Nosty

A MacDonalds run by robots?

And the obligatory whine by this unemployable chap.
“42-year-old Milton Waddams, an unemployed fast food worker, told reporters he is extremely disappointed by the decision to employ only robots instead of humans……”

And then he tops it off with…….

“My mom wants me out of the house at the end of the month, so now I’m going to have to find another place to crash I guess…….”

Alas another Gen X that cant find work……
Just another example of the heartless Boomers steppin’ on them poor hard workin X’ers.
Will their troubles ever end?

Life is sooo incredibly unfair. Then you grow up.
Usually.

#206 The American on 05.21.15 at 6:29 pm

At #200: Nagraj, you said, “… As long as the Canadian economy holds up reasonably well compared to the US economy, and as long as Canadian unemployment isn’t very much higher than American unemployment in the border states, and as long as Canadian prices aren’t insufferably higher – Canada has time to develop a clearly unique identity.”

I’m not going to agree or disagree. It is clear, however, by your position that once again Canada would rely on the U.S. by the measure for which it can grow or not grow in its future. Hmmmmmmm. I suppose I am failing to understand the connection in this statement you make for having a relatively good economy, relatively healthy employment, and affordability (all relative to the U.S., mind you) and having or creating a unique identity as a nation. Might I point out there is this country South of the U.S. called “Mexico,” with a very clear identity and culture as a people, without any of the things you mentioned.

As for the CBC being mandated to promote national unity, well that’s quite concerning in itself, and it is certainly not in the best interest of unbiased or influenced journalism. I suppose that is why the Canadian news is obsessed with only the socio-economic and political challenges going on in the U.S., as opposed to looking inward to its own land and reporting on the big topics that are actually afflicting Canada.

#207 CalgaryRocks on 05.21.15 at 6:42 pm

#201 Nosty, etc. on 05.21.15 at 5:58 pm
#151 Newbie on 05.21.15 at 12:10 pm — “More evidence of how different things are – 52% of workers now are now in McJobs.” Except this McDonalds. The times they are a’changin’ (very quickly).

Why do we even need jobs? Banks should lend all Canadians 100% of LTV on any Vancouver bungalow because as we all know, they will only go up from here, forever, and ever and ever.

Taking into account a 5% tax free appreciation (minimum) per year on a 1M$ teardown, you can see how just sitting around in a Vancouver bungalow is the way to go. You’ll make way more money than a McJob.

#208 CalgaryRocks on 05.21.15 at 6:48 pm

#191 Holy Crap Wheres The Tylenol on 05.21.15 at 4:30 pm
Are we a dictatorship? Perhaps Stephan has gone too far?
Well most of the 8th graders think so.

http://www.msn.com/en-us/video/animals/a-quarter-of-us-8th-graders-think-canada-is-under-the-rule-of-a-dictator/vp-BBk22pV

This is why we don’t let eight graders vote. Although apparently, we accept that people with the brain of an eight grader can become NDP MLAs.

#209 waiting on the westcoast on 05.21.15 at 6:50 pm

197 Godth on 05.21.15 at 5:25 pm
“Enjoy it while you can.

The Era of Impact
http://thearchdruidreport.blogspot.ca/2015/05/the-era-of-impact_20.html

“That’s what happened in the 1920s. All through the decade in the US, the rich got richer and the poor got screwed, speculation took the place of productive investment throughout the US economy, and the well-to-do wallowed in the wretched excess chronicled in F. Scott Fitzgerald’s The Great Gatsby while most other people struggled to get by. The whole decade was a classic era of pretense, crowned by the delusional insistence—splashed all over the media of the time—that everyone in the US could invest in the stock market and, since the market was of course going to keep on rising forever, everyone in the US would thus inevitably become rich.”

You are correct about the result but not why the roaring 20’s grew. Incomes for everyone rose as the US economy blossomed post WW1 (the working class and working poor actually did very well), people began gorging on consumption and debt and then began investing because the market was only going up…. The bubble eventually popped.

Go to downtown Vancouver. With all the talk about the tough times of home ownership, there are a lot of people at restaurants, lounge and bars wearing the trendiest outfits and driving the coolest cars.

#210 TCContrarian on 05.21.15 at 7:18 pm

Question to GT and others: I want to list my house (Lower Mainland) but I want to save on commissions (paid to LISTING agent). I’m thinking to offer a commission structure which ‘rewards’ the selling agent for higher prices – something like 1.5% for 1st $700k and say, 5% on balance. I believe my property is worth somewhere between $700k -775k. The intent is to give incentive for higher sale price. I welcome thoughts on this.

#211 Entrepreneur on 05.21.15 at 7:43 pm

#209 waiting on the westcoast…people are going out using the credit card which did not exist in 1920. Our economy now is based on credit, a one-way false image. A pretend world, not the real one.

The petition on restricting foreign investors in B.C. is still running. Other provinces in Canada have foreign restrictions so why not B.C.

#212 Selling in the 604 on 05.21.15 at 7:51 pm

#210

Don’t list. Realtors are desperate for listings and will promise you the moon. Depending on where you’re located of course but with few listings, the realtors actually have a book of clients looking to buy.

Interview a realtor who is busy in your neighborhood and ask if they have buyers. If not, move on to the next. Interested buyers will do the same because there are few listings.

That’s how it’s done.

Number of sales are not hitting MLS until the deal is done. Agents need the MLS listing proof for their points but they can close the deal before it even goes to MLS.

#213 crowdedelevatorfartz on 05.21.15 at 8:16 pm

@#206 The American.
“As for the CBC being mandated to promote national unity, well that’s quite concerning in itself, and it is certainly not in the best interest of unbiased or influenced journalism. I suppose that is why the Canadian news is obsessed with only the socio-economic and political challenges going on in the U.S., as opposed to looking inward to its own land and reporting on the big topics that are actually afflicting Canada. ”
+++++++++++++++++++++++++++++++++++

As much as I hate to admit it.
You’re right.
The CBC is a pathetic shadow of its former self.
The sooner the govt cuts the national “umbilical cord” to “The Corpse” as its so affectionately known in some circles….
The sooner taxpayers will save over $1 Billion dollars per year in forcing us to seen such wonderful “canadiana” as “Fresh Prince of Bel Air” reruns 3 times a day………..
Or the obligatory french language CBC tv in such francophone hotspots as Calgary or Vancouver.

The CBC deserves a to be sent the way of all languishing, money losing, govt sponsered tv channels.

Radio

#214 Practical_Logical on 05.21.15 at 11:35 pm

In Vancouver and Lower Mainland rents have not moved in 10 years, and condos/townhomes remain at 2008 prices.

However, prices on single family homes are going through the roof.

In light of these facts could someone please explain why this is because we are supposedly running out of land and or because of a constant influx of immigrants?

#215 Woke To The Sounds of Horking on 05.22.15 at 8:59 am

#104 The American
Agreed. Canadians do act like smug fools. I’ve lived overseas long enough to meet them all. Personally, I prefer the United States and if I had to return to North Amerika, I’d go there.

#164 DQ
Your whining is repugnant. Go work on a kill floor somewhere, for perspective. Maybe the constant rain has cultivated a carpet of moss on your brain.

#205 crowdedelevatorfartz
Robotic McDonalds. Fake story, ya?

#216 CHERRY BLOSSOM on 05.22.15 at 9:06 am

Just got back from Vancouver. I used to live there but got out 2 years ago. It has turned from a beautiful city to just awful. I was so glad to get out of there. Talking to a lot of younger people they are all very angry, at the cost of things and the price of real estate. They cannot afford to live. Lots of anger. I feel we are on the brink of a social revolution, lots of SOCIAL UNREST. I also feel we are beginning a CONSUMER RECESSION. Is Bob Rennie sleeping with Gregor Robertson? Is that why he left his wife. Is that why he got $$$$ help bailout of Olympic Village???

#217 Ozy - we're TOAST on 05.22.15 at 11:50 am

we’re TOAST. With globalization in profit-taking phase, many won’t know what hit them.

Let me say: owning even a small detached in an above average neighbourhood has become a luxury. and is going to get worse.

prices will climb but slow and property tax will catch-up in 4y at unbelievable levels. some seniors will be forced out, tax rebates from the city are limited.

is gonna be dog eats dog world, and that’s what children will withness, income divides, etchnical enclavization (fault on both sides).

So, before we die, things are going to get worse. Then at some point, 35 y from now, will get better.