Obedience

DINNER modified

Let’s start this post on a happy note. It comes from Michael, a thirtysomething whom I have not met, but apparently reads this pathetic blog.

“I am for one glad I listened to your advice, stayed off housing and invested heavily into ETFs, stocks with returns over 20% per year,” he says (seriously). “Now I have an amazing offer from the UN and I am moving to Copenhagen leaving all the craziness behind. I wouldn’t have been able to do this with a strangling debt. Looking forward to a richer fuller life.”

See, kids? There’s more to this life than getting a 650-foot condo, a swollen mortgage, property tax bills and elevator thumb. Besides having a landlord subsidize you – since renting is absolutely cheaper than buying – not being shackled with real estate yields freedom and mobility. You can chase a job, a dream, or a hottie and make the most of the one asset you’ll never recover. Time.

Besides, like Mike, you can use that extra cash from renting to invest and help finance those experiences. Or, you could borrow from the Bank of Mom and be obligated forever, embrace epic debt, buy property close by (so she can watch) and little by little, bit by bit, turn into your parents. Obedience. Sounds fun.

It’s a daily revelation to me how many young people want exactly that. We need more Michaels.

Okay, let’s review the latest big news. The Bank of Canada on Wednesday decided to do nothing. No change to its key rate. This is big because a bunch of people, like Capital Economics’ David Madani, have been beating the drum saying the economy’s so bad that money has to get cheaper. He’s predicted (and still is) that the 0.75% bank rate will be 0.25% by the end of the year.

But that’s not likely to happen unless things get really, really worse. For the poodles to hack rates would take a plunge in oil prices to the $40 level, an entire summer of serious job losses, plus an unexpected plop in the all-important US economy. Any of those things might happen, of course, but all three would probably be necessary for such a drastic reaction in Ottawa – especially with a federal election barely four months away.

Here’s what the Bank of Canada now thinks: our economy will slowly grind its way back to capacity by the end of 2016. The American economy will grow nicely after a rotten winter-from-Hell first quarter. The biggest shock to the economy (oil) is in the rear view mirror. Our economy will expand for the rest of the year after stalling badly since last autumn.

So, no need for more stimulus – a position just about every Bay Street economist has lined up behind. For example, here’s how RBC’s assistant chief egghead, Paul Ferley, reacted:

“Our forecast assumes that sufficient evidence of above-potential growth being sustained will be evident by the second quarter of 2016, thus returning the central bank to tightening mode. With core inflation expected to trend closer to the Bank of Canada’s mid-range target of 2% during the forecast horizon, we expect the pace of tightening to be gradual with the overnight rate finishing 2016 at a still stimulative 1.75%.”

What does that mean? Well, ‘tightening’ equals raising interest rates and making money less available in the process – removing stimulus, in other words. So the country’s biggest bank is telling us the core interest rate in Canada will rise by 1% between now and the end of 2016.

One per cent? Big deal?

Actually that would mean the cost of a variable rate mortgage – now available for about 2% – would rise by half. It would also set the scene for a few years of gradual rate normalization meaning anyone taking a 2.5% five-year mortgage should budget to renew that at 4%, or maybe a point higher. And because there is an inverse relationship between interest rates and house prices, we should all expect any increase in the cost of money will mean a decrease in the value of real estate.

Of course, that would also suggest this is the bottom for the cost of a home loan.

This week the lowest number for a five-year VRM is 2%. A fiver fixed can be had for 2.5% and the banks are offering 10-year loans for about 3.7%. How you borrow depends on what kind of premium you’re willing to pay to avoid higher rates later. A woman I spoke at length with today just signed up for a 10-year loan, thinking she was so clever to lock in. But maybe not. Since the ascent of rates will be slow and measured, paying a premium of 1.7% over a variable rate, which won’t hit 3% for a couple of years and can be locked in at any time, is probably too much.

Remember, if you have investments and also have a mortgage, making 7% on your cash is going to build wealth faster than paying down a 2.5% loan. The time to sink money into the house is when the borrowing renews, not every month through increased payments. That’s so Jar Lady.

Well, this is all irrelevant to Mike. Screw a mortgage. He’s off to Copenhagen. Now tell me you’re not a little green.

151 comments ↓

#1 Tak on 05.27.15 at 6:32 pm

>He’s off to Copenhagen. Now tell me you’re not a little green.

Not at all. I have cousins that live in Osterbro and they have their own housing bubble, expensive as hell too. Just as swampy and dark as Vancouver, granted the architecture is nicer.

I doubt he’ll be buying a house, swampy or dark. — Garth

#2 JSS on 05.27.15 at 6:32 pm

Yay – BMO and National Bank.
Both increased their dividends by 2 cents

#3 Smartalox on 05.27.15 at 6:36 pm

Good for Mike. Too bad about the UN’s corruption and incompetence. Or good, depending on the alignment of your personal moral compass.

#4 Nate on 05.27.15 at 6:38 pm

Hi Garth!

Very much appreciate your work, thank you very much.

Question: your opinion on ‘robo-investors’ such as Wealthsimple, WealthBar, ShareOwner, Nest Wealth, Smart Money Investments and Invisor?

They seem like an ideal solution for people who are just starting to build, and need relatively simple solutions, while keeping fees low, no?

Thanks again!

Nate

Not sure. If you have less than $100,000 then the formula for a balanced portfolio has been clearly spelled out here and elsewhere, so why not self-invest? Above that you can find a fee-based, sell-you-nothing, no-commission, real-person advisor to help with investing, tax strategies and relationship advice (!) for just 1%, tax-deductible. Seems reasonable when you’re paying not much less for a bunch of robo code. — Garth

#5 Shaun on 05.27.15 at 6:42 pm

I’m with Mike!

#6 LH on 05.27.15 at 6:45 pm

Copenhagen is great for foreigners (tax break)
For the locals not so much. But I get the message and it is a good one for the young. Stocks stocks stocks. But, don’t be silly and buy any bonds unless you are a long only investor! Combination of mortgage debt and fixed income is just plain silly (like walking up a down escalator)

#7 Former Fool on 05.27.15 at 6:53 pm

What a great story! Yes, I am a little green. I only wish I had met you Garth when I was 18 years old, and have you smack some sense into me. Oh well.

Just a little story on the cooling YYC market: I sold my house 8 months ago, asked for 399k, sold for 390k. Just looking around on MLS on my old street, there’s a house for sale a few steps away. Compared to my old house, it has one extra bedroom, a fully finished basement, a nicer kitchen, an extra full bathroom, and 500 more sq feet above grade. 3 beds 2.5 baths finished basement vs 2 beds 1.5 baths unfinished basement. They are asking 399k, which is what I was asking for 8 months ago for less house. I’d guess my old place has lost $50k of value in 8 months. That is beyond crazy. Glad I am out.

Question here: how much attention should one pay for Morningstar ratings for ETFs? I’d like to throw a few percentage points of my portfolio at some CAD/USA small cap ETFs, but morningstar rates them pretty poorly. Ditto on XSP, which I find suprising. Thoughts?

#8 Interstellar Old Yeller on 05.27.15 at 6:53 pm

Way to go, Mike!

#9 Ray Skunk on 05.27.15 at 6:55 pm

Good for Michael. A man of my own heart.

I (also a thirty-something) follow the same principles… I’m invested, liquid, debt-free and ready to roll. My fiance is ready and willing to go wherever life takes us. US and Europe are both on the table. We’ll see.

Meanwhile, many of my friends are buying $600k shitshacks in the GTA and signing themselves up for a lifetime of debt servitude and being financially violated by Kathleen Wynne, while seeing nothing of the world other than the once a year when they jet off for a week in Cuba to dodge food poisoning.

Cheers Michael – best of luck on your new adventure!

#10 Abraxas on 05.27.15 at 6:57 pm

how about real estate investing in Portugal? I’m looking at some apartments here that yield over 10% before taxes but as a EU citizen I’m bound by a fixed 28% tax which makes the net profit over 7%. Seems like it’s almost a no brainer? Tell me please why I SHOULDN’T buy Portuguese Real Estate at this particular point? It seems like every calamity has been priced in at this point. You can get great apartments in major cities for less than a hundred thousand euro dollars.

#11 Freedom First on 05.27.15 at 6:58 pm

Health is wealth. Money = Freedom. Time is precious. It’s how I roll.

Being young is extremely dangerous for most people. Bad choices. Fact.

#12 Millenial on 05.27.15 at 7:04 pm

I’d be embarrassed to tell anyone that I worked for the United Nations, so no, I’m not envious of Michael. Danish girls are cute, but hey, there’s cute ones over here too. It would be nice to have an excuse to live in Europe though for a while.

Not buying a condo in Toronto or a townhouse in Vaughan is a no brainer, and your point is well taken Garth. My concern about Michael’s future is whether he has useful skills to get him through the coming economic challenges. Last time I checked, most people who work for the UN are pretty useless.

#13 Smoking Man on 05.27.15 at 7:14 pm

So, no need for more stimulus – a position just about every Bay Street economist has lined up behind. For example, here’s how RBC’s assistant chief egghead, Paul Ferley, reacted:
….

Ha , what chance does an egghead economist have vs The Dr of Herdonomics.

The Herd is broke, debt growing, wages aren’t rising, in the tech field lots of sneaky offshoring taking place. Global trade in decline. To many laywers , to many things.

Currency Wars.

Who you going to trust. A Smoking Dr. Or a salad eating egghead.

I’m calling for a BOC cut late this year.

#14 Smoking Man on 05.27.15 at 7:17 pm

#7 LH on 05.27.15 at 6:45 pm
Copenhagen is great for foreigners (tax break)
For the locals not so much. But I get the message and it is a good one for the young. Stocks stocks stocks. But, don’t be silly and buy any bonds unless you are a long only investor! Combination of mortgage debt and fixed income is just plain silly (like walking up a down escalator)
….

Hi yeild, short duration corporate strips not so bad.

#15 james on 05.27.15 at 7:22 pm

#13

“Last time I checked, most people who work for the UN are pretty useless.”

Have to agree. Same as CIDA and other pork barrel institutions.

One of my good friends (law school compatriot from years ago) is in Geneva working for the UN. She describes it as being surrounded by idiots who can’t staple two pieces of paper together. It doesn’t pay particularly well either, since Geneva is a very expensive city.

#16 Realtor007 on 05.27.15 at 7:24 pm

Michael is an outlier and not a representative of the average person, not many people go off shore to work, the fact is that there are far more people who have screwed themselves over the last 7 years by waiting on a RE correction then one guy who benefited and now ships off to Denmark.

Most people want to stay where they grew up, when Alberta and Sask were booming they couldn’t get enough people to cross provinces for better work opportunities, never mind a new continent. People want to grow roots where they grew up and know, have friends and family close by, this will never change.

#17 Sosuke Aizen on 05.27.15 at 7:28 pm

“If you have investments and also have a mortgage, making 7% on your cash is going to build wealth faster than paying down a 2.5% loan.”

Garth, you can’t resist reminding readers that they can get a 7% long term return, can you? Of the 210 CAD-denominated ETFs and index mutual funds in Canada, NOT ONE has a 7% 15-year return (only 57 of them even have a 15-year history). Only 21 (10%) have a 7% or better 10-year return. (Source: Globe Investor.)

That is what a balanced portfolio has done over the last decade, and what equity markets have returned over the last three. BTW, ever heard of rebalancing? — Garth

#18 Andrew Woburn on 05.27.15 at 7:30 pm

“The American economy will grow nicely after a rotten winter-from-Hell first quarter. The biggest shock to the economy (oil) is in the rear view mirror.”

Well,maybe

“Transport Is Saying Consumer Spending Should Slow Further”

http://econintersect.com/a/blogs/blog1.php/consumers-are-saying-no-to

“Iraq About to Flood Oil Market in New Front of OPEC Price War”

http://www.bloomberg.com/news/articles/2015-05-26/iraq-about-to-flood-oil-market-in-new-front-of-opec-price-war

#19 Investorz on 05.27.15 at 7:32 pm

Lucky him…Copenhagen girls don’t start conversations with the topic of house prices.

Hell yes, put 85% of your money in ETFs, then buy a few growth stocks. Collect your dividends while watching Game of Thrones with a beer in hand.

#20 NextYear on 05.27.15 at 7:39 pm

If they wanted to raise the rate they would have done it years ago. We have been at Emergency rate for 6 years now even if the emergency has passed for a long time. Why are we still at 0???

Now by leaving rate at 0 for so long it got everybody addicted to it and a tiny increase is enough to put us right back into recession. Look at the US, they only talk about raising rate and there first quarter GDP was 0.1%, all the economic data coming out is pretty bad. Yes yes winter… we have never had that before.

If they raise rate it will put us right back in recession, and what do they do during a recession… they lower rates, and then when rates are at 0 they do QE.

#21 sam on 05.27.15 at 7:41 pm

bought 3 townhomes -pre construction, 16 months ago
each with 100 k down. just sold the last 1.
400k – 110k fees= 290 k profit for all 3 homes.
73% profit vs 20 etf over a period of yr.

#22 Tak on 05.27.15 at 7:50 pm

#20 Investorz on 05.27.15 at 7:32 pm

Lucky him…Copenhagen girls don’t start conversations with the topic of house prices.

Not so lucky him, Danish girls don’t start conversations with foreigners at all. Hope his game is strong, or its going to be a lonely time.

#23 Mister Obvious on 05.27.15 at 7:52 pm

“The Bank of Canada on Wednesday decided to do nothing.”
————————————-

Wise. Tomorrow I shall follow suit.

#24 Jay Currie on 05.27.15 at 7:56 pm

Renting and investing make a lot of sense at any age but particularly when you are young and child free. There is nothing less portable than a house.

If you can get 7% in a TSFA so much the better. But one of the real advantages of renting is the fact your monthly nut is pretty much a fixed cost. Own a house or a condo and be prepared for the excitements of burst water tanks and leaky windows.

A shrewd old Scots real estate appraiser I knew years ago told me that to keep a house well you needed to invest 3-5% of its value in maintenance every year. Paint, roof, plumbing, appliance repair/replacement, window coverings, lawn….It is a money sink over and above whatever it costs to finance.

There are certainly times when buying a house is an investment. (1982 in Vancouver did my first wife very well indeed.) But there needs to be blood in the streets for the prices to make “investment” sense.

The old idea that “you ave to live somewhere” is not actually answered by a $600,000, 600 square foot skybox.

#25 lala on 05.27.15 at 8:11 pm

That’s exactly my message, enjoy the life and explore the world. The life is not debt a house and a dog, is much more then that. Try and de-program your brain.

#26 Rob on 05.27.15 at 8:16 pm

#22 Sam

That’s not how you calculate a return buddy lol

#27 Former FIFA Official on 05.27.15 at 8:19 pm

Hello Mr. Turner,

Things are a little tense at the office as you may have heard. I am looking for some assistance as I pack my bags and head for the Caymans before my next work project.

I need a new gig, executive type. Can you help connect me?

I want a role with an excellent chance for lucrative conflicts of interest and an ongoing supply of brown envelopes.

I hear the Canadian media is rife with papers and broadcast outlets that take millions in ad revenues from the real estate industry while running or airing lots of puff pieces on how swell real estate is.

An upper level management position in such a media organization would, I believe, suit me perfectly.

If you could kindly point me in the direction of the best of these available options, I would be in your debt, my friend.

And happy to arrange for the 2026 World Cup to be held in Lunenburg.

Just ask, and it shall be yours, Mr. Turner.

#28 AisA on 05.27.15 at 8:28 pm

Screw the rate.

The principal amount in conjunction with the down payment is all that matters.

Buying a home to live in is a flop by all metrics and has been for a while.

#29 Mountain Man on 05.27.15 at 8:30 pm

I’ve been a renter and a homeowner, and I know that renting isn’t always a great option:

– in places like Toronto and Vancity, the rental market is extremely tight, it’s sometimes very difficult to find the right sized apartment/house for rent in the area you want for a realistic price

– then if you’re lucky enough to find a good rental, guess what? No pets allowed, no dogs, no cats. You must ditch your trusted companion or you don’t get the rental

– then, if the condo/house you’re renting is for sale, then you’ll have to put up with real estate agents showing your place, invading your privacy, sometimes dozens of times per month

– and if your landlord decides to renovate, guess what? you f***d because you’re going to live with contractors invading your space, noise, dust, dirt, and you have no control over it

– and if your landlord sells the place, you get evicted and have to find a new place to rent

– and if you want to make improvements to your place, you either have to get the landlord to pay for it (which in many cases they won’t because they are cheap), or you end up paying for it yourself and not getting compensated

– and if you took Garth’s advice and rented and put all your hard-earned cash into ETFs, then the market might crash 20 or 30% and take a year or two to recover, meanwhile, your life savings is stuck in a bear market waiting for a recovery

– and Garth keeps predicting a housing crash in Canada, which may happen, but when it does, it will take the stock market and probably the bond market along with it

Being balanced and diversified simply means that in a recession/depression means you will lose value in a variety of different asset classes; real estate, the stock market, the bond market. As interest rates rise, bonds will devalue, no?

Of course, you’d be insane to buy a house or condo in the big city with these prices, but renting and investing everything in the stock/bond market aren’t always a viable option either.

Just as being balanced and diversified with where you put your capital, you get balanced and diversified advice from a range of financial blogs.

It’s all about good choices. Choose accommodation carefully and choose your investments the same way. Your scenarios are purposefully extreme and largely unrealistic. I’m a happy renter and my finances have never suffered a 30% dccline. Guess you need to make better decisions. — Garth

#30 Paul on 05.27.15 at 8:35 pm

#22 sam on 05.27.15 at 7:41 pm

bought 3 townhomes -pre construction, 16 months ago
each with 100 k down. just sold the last 1.
400k – 110k fees= 290 k profit for all 3 homes.
73% profit vs 20 etf over a period of yr—————-
———————————————————-Sam make sure you pay your 50% a buddy of mine just got whacked by C.R.A. for a $800,000 house he flipped 3yrs. ago for a $150,000 what he thought was PROFIT.
They are checking the land registry now.

#31 seeing it from both sides on 05.27.15 at 8:37 pm

The old idea that “you ave to live somewhere” is not actually answered by a $600,000, 600 square foot skybox.

————–

Neither is paying 1800 bucks a month in rent for that 600 sq. ft skybox …..make that 500 sq. ft…going rate in Van, where all the ‘don’t have million’ people want to live. Between a rock and a hard place. Rents are just as insane in Van ….that is, IF you can even find something decent that meets your criteria WHEN you need it. The intangibles make renting an unstable proposition.

Why do renters think that landlords are so dumb as to keep on subsidising them? (Garth’s case is an anomaly, I’d venture). Landlords will just find a way to get you out so they can jack up to market rent with a new tenant. Especially when vacancy rate in Van is virtually 0.

Sure, a tenant’s monthly might be fixed (for the term of the lease, that is), but 2 or 3 forced moves would easily throw in a variable cost, plus that perpetual transient feeling. Renting is not a panacea either. And, ya, why is a transfer to Copenhagen held as a shining example?? ;)

#32 BailinginBC on 05.27.15 at 8:40 pm

I went to see the jar lady (Gail Vaz Oxlade) talk last night in West Vancouver, at a school board sponsored event. One of the things she spoke to the parents about is not telling your kids they need to buy houses. She says lots of Canadians are in for a world of pain. Now where have I heard that before? Can someone remind me – will this end well?

#33 brett on 05.27.15 at 8:45 pm

We made an offer on a condo in Calgary last summer.
There were multiple offers. The agent suggested we put in an offer with no inspection.

We pulled the offer. Walked from the market. After all who wants to buy when every one is. We do the opposite with our investments.

Happily renting for the past two years and now watching the Calgary market adjust. It will take some time.

#34 MSM-free Zone on 05.27.15 at 8:47 pm

#24 Mister Obvious on 05.27.15 at 7:52 pm
________________________

Priceless.

I was contemplating the same on future Wednesdays, although Friday or Monday would probably work better for me.

#35 Harbour on 05.27.15 at 8:50 pm

If the Canadian economy is so bad that money has to get cheaper why are all the numbnuts in this country lining up to pay half a million dollars for a starter box?

#36 SWL1976 on 05.27.15 at 8:52 pm

#4 Smartalox

Good for Mike. Too bad about the UN’s corruption and incompetence. Or good, depending on the alignment of your personal moral compass.

—————-

Indeed

#37 Lead Paint on 05.27.15 at 8:53 pm

I sure hope Michael doesn’t by real estate, they will accuse him of making homes unaffordable due to HCM.

#38 Waterloo Resident on 05.27.15 at 8:54 pm

A lot of new grads in Engineering from Conestoga College cannot find jobs so far, and it looks like a very bleak summer for them. Most are finding new employers offering between $11.50 and $13.00 per hour, that’s if the grad is ‘LUCKY’ to land such a hot job. I’m talking electrical engineering, mechanical engineering, and industrial engineering here, all areas dead due to the fact more and more companies are closing up shop and moving South to Mexico.

But have no fear, Conestoga is instituting a new program that will help new grads to train in ‘ENTREPRENEURSHIP’ so they can buy hot-dog stands and sell hotdogs and sausages at your local hardware store ( Canadian tire, Home Depot, etc.)

Yes, $13 / hr, wow, don’t spend it all in one place !

And this is supposed to be the generation that is supposed to support the housing market? GOOD LUCK !

#39 Observer on 05.27.15 at 8:55 pm

This one’s for Garth:

The U.S. dollar is going crazy this morning because traders think Fed will raise rates soon

http://business.financialpost.com/business-insider/the-u-s-dollar-is-going-crazy-this-morning-because-traders-think-fed-will-raise-rates-soon#__federated=1

#40 MSM-free Zone on 05.27.15 at 8:59 pm

“…Our forecast assumes that sufficient evidence of above-potential growth being sustained will be evident by the second quarter of 2016….”
_________________________

So……in the space of 2 months we went from ‘atrocious’ to ‘above-potential’.

You can’t make this stuff up.

What would a BoC governor’s weather forecast sound like? Becoming a mix of darkness this evening followed by periods daylight tomorrow?

#41 cramar on 05.27.15 at 9:01 pm

#22 sam on 05.27.15 at 7:41 pm
bought 3 townhomes -pre construction, 16 months ago
each with 100 k down. just sold the last 1.
400k – 110k fees= 290 k profit for all 3 homes.
73% profit vs 20 etf over a period of yr.

—————-

Good for you. Problem is that you cannot do this indefinitely. It will only work until it doesn’t. Over the long run it will not. Then rebalancing your game is necessary.

#42 joblo on 05.27.15 at 9:02 pm

“Okay, let’s review the latest big news. The Bank of Canada on Wednesday decided to do nothing.”

So they continue to punish savers and retirees, 6.5 years after the GFC ( Great Financial Cockup ).

Am I to believe the BOC and Economists have a clue? FAT CHANCE.

#43 Mean Gene on 05.27.15 at 9:06 pm

Mike is da man!!!!

#44 AisA on 05.27.15 at 9:09 pm

#33 seeing it from both sides on 05.27.15 at 8:37 pm

“And, ya, why is a transfer to Copenhagen held as a shining example?? ;)”

It’s not about you. He wants to go there and was offered a paid opportunity to do so, doing something he wanted to do, which he would otherwise be unable to take advantage of at a moments notice if his entire raison d’ etre was plowing everything he could get his hands on into a pile of organized building materials sometimes referred to as a home.

#45 Leo Trollstoy on 05.27.15 at 9:13 pm

Attaboy Mike. Fantastic job young man!

#46 IceFlows on 05.27.15 at 9:14 pm

Moving to Copenhagen is a shining example of liquidity and mobility. He is not alone. A co worker just moved to Sweden and I’m getting out of the YVR too. We both rent.

I’ve rented and owned in the YVR. Owning is obviously a more comfortable lifestyle but, it’s not the only choice and you can save serious cash when renting. If my landlord pulled a reno job on me I would politely request a reduced rent. If they don’t compensate for needed repairs it comes out of the rent.

I’ve stayed liquid and mobile and it has allowed me to pursue a career and other interests.

But, I also have a mortgage. You have to find the right ‘balance and diversity’ for your own life. I like to spread it around. Cash, RE, ETFs, business ventures, skills upgrading and even precious metals.

I have to disagree with Garth on one point; Making increased payments on the mortgage. The reason being that they are painless and putting the extra few dozen dollars in my portfolio every week is near pointless. Instead, I pay that forward to my future self and only think of it again when I need to cut expenses or when I pay the mortgage off 8 years early.

#47 Leo Trollstoy on 05.27.15 at 9:24 pm

My concern about Michael’s future is whether he has useful skills to get him through the coming economic challenges. Last time I checked, most people who work for the UN are pretty useless.

Someone appears to be butthurt.

Lol

#48 I bet... on 05.27.15 at 9:25 pm

I bet that Canada’s rate will not be 1.75% in a little over a year?

how much?

#49 MSM-free Zone on 05.27.15 at 9:28 pm

#17 Realtor007 on 05.27.15 at 7:24 pm
“……the fact is that there are far more people who have screwed themselves over the last 7 years by waiting on a RE correction……”
_________________________

Au contraire, Purple Kool-Aid Pumper. Very few here have been waiting for a ‘Re correction’, they have rewarded themselves handsomely and securely by ignoring real estate for more sensible and stable ventures.

#50 Millmech on 05.27.15 at 9:33 pm

In regards to yesterday’s post about young people making over 100,000,nephew who’s all of 23 mulling over job offer for $140,000/yr,not bad rate for industrial electrician,I told him to take the job,invest half his income and live stress free from age forty and onward.Didnt cost him a dime to get trained,did first year in high school and when he graduated his employer paid for the rest of his schooling.

#51 Randy Randerson on 05.27.15 at 9:37 pm

Congrats on Michael to be responsible for his life, and not chain himself down with a shitshack in Canada. I wish I have a job opportunity that would allow me to live in Europe.

#52 Blacksheep on 05.27.15 at 9:38 pm

SWL # 227,

“Now let’s use a litmus test on you to see where you are at on the subject of Geoengineering?”

“Is in happening”

“Yes or No?”
——————————————————
Yes, of course.

Any time water is diverted by man off it’s natural course, it’s Geoengineering.

#53 Realtor007 on 05.27.15 at 9:43 pm

#51 MSM-free Zone on 05.27.15 at 9:28 pm

Au contraire, Purple Kool-Aid Pumper. Very few here have been waiting for a ‘Re correction’, they have rewarded themselves handsomely and securely by ignoring real estate for more sensible and stable ventures.

————————-

You should learn the power of leverage before making such ridiculous statements. And many have been waiting and still are, hence this blogs 50mm visits annually.

Btw, if you know of any bank willing to lend $500k with a 5% collateral for ETF purchases let me know, I’m interested.

This blog receives only 6-7 million visits a year, not 50 million. Stop with the realtor math. — Garth

#54 devore on 05.27.15 at 9:44 pm

#33 seeing it from both sides

Neither is paying 1800 bucks a month in rent for that 600 sq. ft skybox …..make that 500 sq. ft…going rate in Van,

Plenty of above-ground rentals available for $1500, right downtown. Much less outside. Stop looking at the month-old ads on Craigslist.

Especially when vacancy rate in Van is virtually 0.

No it isn’t.

Renting is not a panacea either.

Neither is owning. Call me a disillusioned, house rich cash poor former owner, happily renting for 5+ years. Do your research, find a nice place. Most people spend more time buying jeans than selecting a rental. It’s a big choice.

#55 Nemesis on 05.27.15 at 9:47 pm

“Well, this is all irrelevant to Mike. Screw a mortgage. He’s off to Copenhagen. Now tell me you’re not a little green.” – HonGT

#ALittle???… #Let’sNotDiscussThat,ShallWe…

#Danmark… #EfterMørketsFrembrud… #ForUgifteHerrer,Kun…

https://youtu.be/q71Elbru8Yc

#&IfItDoesn’tQuiteWorkOut… #There’sAlwaysTuborg…

https://youtu.be/8qFaDfA-lFo

#BonusBorg:

http://www.tuborg.com/gl/en/

#56 Nemesis on 05.27.15 at 9:55 pm

“Last time I checked, most people who work for the UN are pretty useless.” – M.

#OhReally?… #NotSoMuch…

https://youtu.be/zPJ2LbWSwP8

https://youtu.be/qgC4_mSlU0g

https://youtu.be/TxawX2tBdhg

[NoteToGT: I once did a brief stint for the FAO… NoteToM: GFY. Figure it out.]

#57 Made in BC on 05.27.15 at 9:58 pm

Awesome…..another successful public sector employee making out well on our dime. Good for him.

#58 Dad on 05.27.15 at 10:00 pm

The day I would be happy to go anywhere in Europe will never happen.
Just get out of the city
Van this, cowtown that, gta whatever…..
Just move to small town canada and live a happy life

#59 Smoking Man on 05.27.15 at 10:07 pm

#50 I bet… on 05.27.15 at 9:25 pm
I bet that Canada’s rate will not be 1.75% in a little over a year?

how much?
…….

Your an idiot , please give your wife the debit card.

#60 Blame it on the WASPs on 05.27.15 at 10:10 pm

So rates are staying the same… so we’re looking at another year with even more housing bubble as a result.

Don’t blame it on the Chinese… blame it on the WASP bankers and policy makers who set the rates and the rules.

#61 Mister Obvious on 05.27.15 at 10:13 pm

#33 seeing it from both sides

“Why do renters think that landlords are so dumb as to keep on subsidising them? (Garth’s case is an anomaly, I’d venture). Landlords will just find a way to get you out so they can jack up to market rent with a new tenant.”
———————————-

Garth’s case is the norm, not an anomaly. Especially here in Vancouver. Landlord’s wish they had a choice about subsidizing renters. Unfortunately, they have to compete with other landlords for quality tenants from a shrinking supply.

It’s not just a matter of drumming out a tenant and raising the rent to instant profitability. If that worked it would have happened universally by now.

In YVR capitalization rates are poor because land values have risen so drastically and rents have been unable to track accordingly. This has driven capital out the rental game and into the land speculation game.

For that reason rental accommodation is indeed becoming more scarce at the lower end. At the upper end however, there is rather more to choose from.

Anyone who has already cashed in a very large tax-free principal residence windfall would be mad not to invest that money and rent quality accommodation. You can live pretty well for free even in this ridiculous town by doing just that.

#62 Andrew Woburn on 05.27.15 at 10:23 pm

Remember I was wondering why the Saudis were giving up oil and going into the solar generation business? Maybe this is why.

“Fossil industry faces a perfect political and technological storm”

“The IMF says we can no longer afford the economic wastage of fossil fuels, turning the green energy debate upside down as world leaders plan a binding climate deal in Paris”

“A report by University College London said the Arctic would never be developed under a 2C degree policy. Over 75pc of Canada’s oil would have to stay in the ground, as would 95pc of coal reserves in the US, Russia, and the Middle East, unless there are radical advances in carbon capture and storage.”

Apparently the axe will fall in Paris in December.

“It is becoming clearer that last year’s sweeping deal on climate change between the US and China was an historical inflexion point, the beginning of the end for a century of fossil dominance. At a single stroke it defused the ‘North-South’ conflict that has bedevilled climate policy and that caused the collapse of the Copenhagen talks in 2009.

Todd Stern, the chief US climate negotiator, said the chemistry is radically different today as sherpas prepare for the COPS 21 summit in Paris this December. “The two 800-pound gorillas are working together,” he said.”

If you are a realtor or homeowner in Alberta, now is a good time to stock up on Depends and offer a prayer for the re-election of the much hated Harper. He is at least the one politician who just might not roll over for the sake of Obama’s political legacy.

http://www.telegraph.co.uk/finance/economics/11633745/Fossil-industry-faces-a-perfect-political-and-technological-storm.html

#63 rawdiswar on 05.27.15 at 10:29 pm

Buddy of mine nearly bankrupted himself paying for his ex-girlfriend to go to grad school over in Denmark. Guess she was a true socialist.

When is this bond market going to collapse and where will all the money go seeking yield? I hope Gold but in reality likely elsewhere.

#64 dogman01 on 05.27.15 at 10:37 pm

Smoking Man
Yep – In Tech and friends in Tech in Calgary, outsourcing of 40 jobs, maybe 10 left over to cover the work.
I rode Tech up and see the huge decline as it is sent overseas. Not sure whom will be buying Houses or paying taxes for that matter, fortunately we should see $15.00 in Alberta.

https://www.youtube.com/watch?v=768h3Tz4Qik

Waterloo Resident on 05.27.15 at 8:54 pm
All the parents I know lamenting their kids can’t find work and more schooling is not the answer.
We have pumped Real Estate for all its worth so where will the next batch of Jobs come from. Sell each other handcrafts as “ENTREPRENEURS”
Just one word “healthcare” https://www.youtube.com/watch?v=DHGCvJjat1E

All of this was very predictable and in hindsight clearly the plan:
https://www.youtube.com/watch?v=4PQrz8F0dBI

#65 Washed Up Lawyer on 05.27.15 at 10:41 pm

The business license fees of hoteliers in Fox Creek, Alberta go up 133,000%.

http://www.edmontonjournal.com/business/Business+licence+Creek+hotel+goes/11086304/story.html

What a drag. Next a minimum wage increase from $10.20 to $15.00 per hour.

I am crossing Fox Creek off my Bucket List.

#66 MF on 05.27.15 at 10:45 pm

Anyone have any experience with small-cap ETF’s like VB?

I am thinking about diversifying into small cap at rebalancing time in about 8-12 months. I organized my portfolio around large-cap ETF’s according to the millennial portfolio Garth recommended last year and don’t have any small-cap as of yet.

The reason why I am asking is because a couple days ago Garth talked about the possibility of volatility this summer, and then in the comments section mentioned large-cap ETF’s might be at risk in response to a post. Everything seems frothy right now so I am not sure what to do. VB has gone up continuously for years.

#51 MSM-free Zone

I told him that yesterday. His comeback was do not believe everything you read on the internet. Valid point which I totally agree with but also means he won’t listen to what we are saying no matter how many times we point it out.

#22 sam

Ever heard of the CRA? They’ve heard of you.

MF

#67 Joe2.0 on 05.27.15 at 10:46 pm

Our banks will likely take the same measures the US banks did.
Milk the sheeple and continue to introduce creative mortgage rate schemes.
And then, milk them some more.

#68 Fuzzy Camel on 05.27.15 at 10:54 pm

Garth, hot off our books, our building permits are down 50% compared to last year, same time. We are entering a recession, the BoC is keeping the taps open all the way, expect more rate cuts soon. Those rate cuts keep bouncing us out of recession.

Boobus Canadianus is drowning in debt, so is the government. Only way to keep the party going is to go to 0%. Rates will probably rise this fall, if they do, expect a bad recession or outright sovereign debt incident.

You will be right soon, Hilliard MacBeths new book is a good read.

#69 Nagraj on 05.27.15 at 10:57 pm

Nagraj’s Literary Journal

“Pip Looks for Happiness in Denmark” is instalment No.2 of the serial novel “Great Expectations” by G. Turner.
Instalment No.1, “Joshua Finds Jesus” dealt with Pip’s twin brother Joshua.

Instalment No.3, “Fulfillment in Berlin” has our twin heroes performing “Money makes the world go ’round”
to great applause at “Das Drag Kabarett”.

Stay tuned.

We have also read Mr. Turner’s dispatch from the Canadian front in which he reports that the OBC (Oracular Bank of Canada) assures the citizenry that all’s quiet there with General Poloz having ordered his monetary forces to “stand pat.”

Elsewheres we note interest-ing movements rumoured south of the border.

#70 Emily Plager on 05.27.15 at 10:59 pm

Garth,

A few points here….

In line with you advice, I think all millenials should have a giant storage locker where they can stick their “stuff” in order to be mobile…..listen to George Carlin’s “stuff” skit for more perspective
https://www.youtube.com/watch?v=MvgN5gCuLac

On a bigger note, a great new toy out there to play with regarding investing in volatility directly rather than fiddling while the VIX burns….

http://www.forbes.com/sites/jenniferwoods/2015/05/26/a-new-way-to-bet-on-the-vix/2/

What is you take on this oh wise one?

#71 SWL1976 on 05.27.15 at 10:59 pm

#54 Blacksheep

Yes, of course.

Any time water is diverted by man off it’s natural course, it’s Geoengineering.

Haha true. And crafty answer, but I think frequent readers here would know I am referring to this and this when referring to geoengineering

Yes? or No?

#72 meslippery on 05.27.15 at 10:59 pm

Just anecdotal but driving by golf courses no one playing.
Signs offering deals. Local bar been able to hang on, did good summer business
outside patio live band, then NO SMOKING ON PATIO.
Now closed. Yeah dont see the good times rolling.

#73 Momma Jumbo on 05.27.15 at 11:00 pm

The sociological underpinning of house lust and leased cars is the very fact that you have pointed out about Micheal, who kept his head clear of the mincing propaganda spit out by the Lambs and Rennie’s. People buy real estate and drive lease cars like heroin because there is nothing else in this country.

Where are the head offices? Where are the industries….all off shore…and seeing the smart people like Micheal flooding out of this country in record numbers.

People in Canada have no outlet for expression..so they’ve turned to house envy, car jealousy and general merchandise mania as an excuse for a personality. There is no pride of place…no sense of existence…so they coat themselves in a sticky layer of ‘stuff’.

Good for you Micheal…you’re one of the few smart ones who got out instead of swilling the bathwater.

#74 Emily Plager on 05.27.15 at 11:01 pm

Sorry forgot to add this on previous post….with China threatening war on the US, will Vancouver become the unofficial stomping ground of all the cloak and dagger spooks…kind of like Lisbon during WW2….

#75 OttawaMike on 05.27.15 at 11:03 pm

#11 Abraxas on 05.27.15 at 6:57 pm

“Tell me why i shouldn’t invest in Portugal apartments”

I suggest you read up on Portugal’s tenancy laws. You basically have to keep the tenant forever, some apartments even pass down through the family. Selling the property or wanting to move in yourself is no reason to give them notice.

#76 Vicpaul on 05.27.15 at 11:18 pm

#52 Millmech
In regards to yesterday’s post about young people making over 100,000,nephew who’s all of 23 mulling over job offer for $140,000/yr,not bad rate for industrial electrician…

I’m pickin’ up what you’re puttin’ down. My eldest son has 15 months in the trade – but hours say he’s a third term. He’s back to school in Sept. For a short stint and will have his Red Seal in no time. Car (paid cash) and TFSA growing monthly in ETF’s as per our erudite host. He’ll be 21 next month.
Youngest son is set to take Ace-it program for electrical next year in grade 12. He’ll be an electrician like brother and G-Pa was after his European hockey days are done. )
Lead the herd…

#77 Waterloo Resident on 05.27.15 at 11:23 pm

About a year ago I warned everyone that if Canada and the U.S. does not get off their Ass and start developing Thorium fueled nuclear reactors, AND SOON, that China or India will beat us to the punch and in no time it will be us who will be paying them money for their reactor technology.

Well, its too late, China is already about to start construction on commercial uranium-free THORIUM FUELED nuclear reactors.

http://www.theguardian.com/world/2014/mar/19/china-uranium-nuclear-plants-smog-thorium

((( “n an effort to reduce the number of coal-fired plants, the Chinese government has brought forward by 15 years the deadline to develop a nuclear power plant using the radioactive element thorium instead of uranium.
A team of researchers in Shanghai has now been told it has 10 instead of 25 years to develop the world’s first such plant.
There is a lot that is still unknown about thorium but a lot of research is being carried out worldwide. Cobb said: “Other countries around the world are looking at thorium. There is a fair bit of research going on at the moment into the use of thorium. And technology-wise, using thorium would not be too much of a leap.” )))

Is Canada focusing ANY efforts to build high technology like this?

Nope, we have our heads in the sand; literally, focusing on digging up the ground and building houses, that’s as far as our technology is concerned.

Our future? We are so F*cked.

#78 Derek R on 05.27.15 at 11:26 pm

I used to visit Copenhagen on business quite regularly during the 1990s. Great place. And the Danes? Great people. Michael’s a lucky guy.

#79 OttawaMike on 05.27.15 at 11:28 pm

#64 Andrew Woburn on 05.27.15 at 10:23 pm

Nice link. Really though, do you think big oil is going to roll over that easily to a new era of green energy?

That Paris summit will be as corrupt as a FIFA meeting.

#80 S.Bby on 05.27.15 at 11:29 pm

#33 seeing it…
Especially when vacancy rate in Van is virtually 0.

The vacancy rate in Van is far from virtually 0.
Just look at Craigslist.

#81 paul a on 05.27.15 at 11:38 pm

thought i would share some observations on the personal toll this whacked out real estate market is causing to family’s and individuals, moved to a town 70 miles north of the GTA, on hwy 400, 10 years ago when new construction 1400 sq ft homes cost around 160k for the basic house. the street i bought on is in the south end or commuter end of town , street is short about 20 homes, in 10 years i am the only original owner, with the remaining 19 homes having changed hands not less than 3 times per property,in many cases more, according to data central ,my observant wife. reason for 80% of sales: divorce or separation ….. wow. that 3-4 hour commute to the gta was a killer in more ways than one. moral of the story, and key factor. the town i live in has no living wage employment to speak of,i and the mrs are self employed locally and the only non commuter residents on the street still , the reality is that if you think that buying a house 2 hours away from where you work,that in the end cost the same as one closer to home and sanity ,you are only kidding yourself and likely setting the table for trouble in the future,even though that 160k house is now getting close to 300k, none of the original buyers realized the gain in the end think about it sanity or stupidity

#82 vb on 05.27.15 at 11:43 pm

re: #33 seeing it from both sides.

from experience I would have to agree… my landlord of 2 years ( after I cashed out of my 4 bdrm house in T.O ) will raise my rent every year .. and she’s a moron. The good part is my REITS and preferreds pay for the rent ..so I’m kinda free , but it still feels like a waste. When rates rise and property values dip I will buy with my un-invested cash and my REITS / preferreds will pay me instead of her

#83 wallflower on 05.27.15 at 11:44 pm

#11 Abraxas on 05.27.15 at 6:57 pm
Two things about RE in Portugal.
Understand liquidity
Understand tenant rights

Then, understand why the Portuguese RE market is a train wreck, as a market.

#84 darthtaco on 05.27.15 at 11:47 pm

Thirty something here, I must say Garth has cured my house hornyness. My mind has changed focus and now I am attempting to invest my first chunk of change in my tfsa into etfs and other long term investments. Mr Turner I am just curious if you have written a dummies guide to etfs in a previous blog?

#85 Longterm on 05.27.15 at 11:58 pm

#11 Abraxas on 05.27.15 at 6:57 pm

‘Tell me please why I SHOULDN’T buy Portuguese Real Estate at this particular point? It seems like every calamity has been priced in at this point.’
____

Whoa there mate. Watch Greece in the lead up to the June 6 show down with the troika. The drachma may yet return. You think flats in Portugal are cheap now? Have you priced in a return to the Escudo if the Eurozone contracts to the core nations? With Europe on the edge of deflation, prices aren’t going up in Portugual any time soon. Invest your future Lisbon flat money and wait and watch what happens to Greece and whether the Portuguese and Spanish consider following suit. Then you will see what a real bargain looks like.

#86 darthtaco on 05.28.15 at 12:00 am

For the people that don’t believe that a 20ish year old can make six figures, it is extremely easy to get a trade and earn top dollar in four years. If you start your trade at 18… you get the picture. In fact people that borrow money to send the kids to University or diminish the retirement fund would be better served pushing kids towards the trades, the kids can make six figures and pay for their own house and education.

#87 sam on 05.28.15 at 12:16 am

#22 sam on 05.27.15 at 7:41 pm
bought 3 townhomes -pre construction, 16 months ago
each with 100 k down. just sold the last 1.
400k – 110k fees= 290 k profit for all 3 homes.
73% profit vs 20 etf over a period of yr.

—————-

Good for you. Problem is that you cannot do this indefinitely. It will only work until it doesn’t. Over the long run it will not. Then rebalancing your game is necessary.

—-
that’s the last real estate transaction for me, good run for the last 6yrs
time to short the equity markets. inverse etf mid august. 10-15% drop by xmas.

I know CRA is my silent partner.

#88 Longterm on 05.28.15 at 12:31 am

Michael

Good on you mate. The courage to do what too many won’t. Suck that juice from life!

I left Vancouver in 2002 at age 31 for London for a year and stayed for a decade. Sure it was expensive – my first room in a shared flat was about $1400 Canadian plus a share of the bills and free fleas. And it took me 3 months to find a job so I spent all my savings. But so what? I could have stayed in Van and bought a crappy apartment and still be there wondering what happens east of Boundary Road.

Instead I rolled the dice.

What followed was a decade of unbelievable experiences. I worked in publishing and met the most interesting people [including many at FAO, UNDP, UNEP and UN-Habitat] and colleagues, partied like a machine, travelled 6 weeks per year, summitted three dozen European mountains, drank wine in Florence, Port in Porto, ouzo on Hydra, pilsner in Prague, Pastis in Paris, HB in Munich, made friends with people from a dozen countries [including a good friend who lives in Copenhagen].

Took a work break at one point to do a 14 month round the world trip, seeing many of these friends along the way. Travelled to 43 countries, became a UK citizen, had a daughter in London, worked the London street markets, set-up and then sold a business, lived in Mexico for a winter.

I did all of this while arriving in London with $15,000 in debt and $6000 in my bank account and left London in 2013 with $313,000 saved and invested [all while renting], over 700 travel days on my back pack, a second citizenship and passport a rich catalogue of professional and personal experiences.

Or I could have bought that apartment I had been looking at in east Van.

Let your friends become their parents while you see what you and the world are made of. It’s a pretty interesting place out there.

Best of luck!

#89 westcanguy on 05.28.15 at 12:33 am

“Not so lucky him, Danish girls don’t start conversations with foreigners at all. Hope his game is strong, or its going to be a lonely time.”
______________________________________________

Nope, not green at all…

#90 drydock on 05.28.15 at 12:35 am

I eat steak , charred on the outside , bloody on the inside and wash it down with German Pilsner.
That means i’ll never be a “salad eating egghead” , right?

#91 Fortune500 on 05.28.15 at 12:50 am

I think you make an important point about time Garth. I was reminded of this reading MJ Demarco’s Millionaire Fastlane.

I think there is this middle class mindset, or perhaps an outdated view that wealth = things. But with interest rates so low, and borrowing made easy, the wealthy are no longer the ones with the ‘things’, but they are the ones with the time to enjoy them. Unlimited time.

So you can keep your bricks and mortar. I’m off to Croatia with my family for some adventure. Then we will see. I have options. I have time.

#92 Martin on 05.28.15 at 12:57 am

I hope Dorothy is not beating you up as much. You seem more calmed

#93 sideline sitter on 05.28.15 at 1:00 am

@33 – Garth’s rental is not an anomaly. I pay about 62% to rent vs buying my unit, and I live in a very upscale Toronto neighborhood.

I use the difference to save, travel and spoil my wife!!

#94 Rexx Rock on 05.28.15 at 1:33 am

Ha,to believe some RBC banker is like trusting a politician to keep his or her promises.Not going to happen.We all know they will lower rates so everyone can be debt slaves and live house poor.Good for Micheal,he knows this country is run by kleptocrats.

#95 Freedom First on 05.28.15 at 1:40 am

#14 Smoking Man

Rate cut by BOC? I agree. Just before the people vote in the erection. Could even be the full half a % in one shot. I will profit from it. But do I care?

#96 Setting the Record Straight on 05.28.15 at 2:05 am

“Most people want to stay where they grew up, when Alberta and Sask were booming they couldn’t get enough people to cross provinces for better work opportunities, never mind a new continent. People want to grow roots where they grew up and know, have friends and family close by, this will never change.”

And since Canadian taxpayers subsidize that behaviour, we will continue to get too much of it.

#97 Setting the Record Straight on 05.28.15 at 2:09 am

““The Bank of Canada on Wednesday decided to do nothing.”
————————————-

Wise. Tomorrow I shall follow suit.”

&&&&&&&
The Dao does nothing, but nothing is not done.

#98 observer on 05.28.15 at 3:04 am

Garth heres a twist for you

My buddy just built a place and sold for just under 2 Million. He’s going rent for a while until the crazy market settles.

But he wanted to know if he can place his money into a TFSA. Then use that money to invest in a future building project (real estate)

#99 jane 24 on 05.28.15 at 3:12 am

Garth

Copenhagen is no-one’s dream location. very pretty in the summer it is dark, depressing and very expensive in the winter. And there is a lot of winter. No light for months in the winter encourages the locals to top themselves.

Daughter just got back from a business trip to Finland and she reported that two British beers (strangely enough from our local brewery Badger here in Southern England) were £11 each, that is over $20 Canadian. Each !!

Plus the place is full of Danes.

Hope he got hardship money.

#100 Property Manager on 05.28.15 at 3:42 am

We are inundated with Form requests to refinance or sell/buy property here in Vancouver. People are buying at a furious rate at one would hope is the top of the market. CMHC might raise the limit again. There seems no end to it unless rates rise and old people can eat again.

My youngest daughter was employed in Alberta making lots of wages, went to New Zealand for 5 weeks Jan-Feb 2015 and the world changed when she was away. Her company found her jobs until March after she came back.

Alberta is f****d. They were laying off office buildings floor by floor months ago but that’s not reported in the news.

She moved in with Mom in Vancouver in April, at Mom’s invitation, and now has a job on a ship. She previously worked for the Coast Guard and had all her tickets before she went to Alberta. None of her former colleagues have work.

My Daughter hopes to work here in the summer months and go to the South Seas in our winter, their summer.
Nice choice. Wish I’d thought of it.

#101 ANON on 05.28.15 at 6:22 am

Copenhagen, NY, right, Mike? Copenhagen, Denmark, Europe does not look too hot in the medium to long term future. They outsourced even their money printing and minting operations, so I’d make sure I have a return ticket on the last plane from there when their bubble pops.

#102 fancy_pants on 05.28.15 at 8:18 am

The BofC stopped crying wolf long ago, what little voices do people still hear?

When rates haven’t risen by year end, let’s all get together on new years eve and fantasize about how they are so going to go up this year. Yes, 2016 will be the year.

We can be our own moral support group, sharing travel stories and reminding each other how RE hangs precariously near the abyss.

#103 Holy Crap wheres The Tylenol on 05.28.15 at 9:16 am

Well, this is all irrelevant to Mike. Screw a mortgage. He’s off to Copenhagen. Now tell me you’re not a little green.
_____________________________________________
Not really, great people (the whole country around same population as the GTA), great standard of living, good health care system, a little boring, land is flat as hell, nothing of any great significance to say other than very cool land of the Vikings. Oh yes and the weather there is crappy, very cool and lots of rain. Once had to commission a system in a place called Middlefart and spent three weeks there. Have to say though the company made wind turbine bladed and their factory was the most modern architectural building I have ever seen.
So nope not green!

The point is gaining experience, not changing countries. How obvious is that? — Garth

#104 Contrarian Coyote on 05.28.15 at 9:59 am

#105 Holy Crap wheres The Tylenol on 05.28.15 at 9:16 am
Well, this is all irrelevant to Mike. Screw a mortgage. He’s off to Copenhagen. Now tell me you’re not a little green.
_____________________________________________
Not really, great people (the whole country around same population as the GTA), great standard of living, good health care system, a little boring, land is flat as hell, nothing of any great significance to say other than very cool land of the Vikings. Oh yes and the weather there is crappy, very cool and lots of rain. Once had to commission a system in a place called Middlefart and spent three weeks there. Have to say though the company made wind turbine bladed and their factory was the most modern architectural building I have ever seen.
So nope not green!

The point is gaining experience, not changing countries. How obvious is that? — Garth

I’m with Garth on this one. I’ll take experience for ‘assets’ any day. Experience in Canada or overseas.

I wouldn’t trade my 10 years abroad for any of the particle board shacks my friends have around the 905. Collect experiences not assets for the win. Stay mobile.

#105 Londoner on 05.28.15 at 10:05 am

“Here’s what the Bank of Canada now thinks: our economy will slowly grind its way back to capacity by the end of 2016. “

So one minute the people at the BoC are bunch of idiots and poodles and the next minute you’re quoting their forecasts?

Also, do you think that if the RBC prop desk decides to take an opposite view to the BoC that Craig or Paul are going to be broadcasting it in their weekly commentary?

Rates will not be increasing any time soon. There is no economic data to support such a scenario. How many times have we heard here that rates will be higher next year and that mortgages will never be this cheap again?

#106 Bottoms_Up on 05.28.15 at 10:15 am

#100 observer on 05.28.15 at 3:04 am
————————————————
TFSA has contribution room limits. If he puts that much money in, the CRA will tax it.

#107 Say no to Yoga Pants on 05.28.15 at 10:45 am

oil….down
summer driving season not going to save it this year

if you are going to take the advice offered free on this awesome web-blog, do yourself another favor and buy a wheatgrass growing kit, and grow yourself some healthy food

1oz of wheatgrass juice = 2.5 lbs of kale, broccoli etc
I don’t know about you but i’d rather take a 1oz shot

#108 Smoking Man on 05.28.15 at 10:48 am

Anyone catch the Canadian current account balance today. Another disaster. -17.5 Billion.

Ouch. Next time a bay street salad eater says no rate cut coming. It means they missed todays report.

Dr Smoking Man
PhD Herdonomics.

#109 saskatoon on 05.28.15 at 10:52 am

saskatoon holding strong!

http://teamfisher.com/saskatoon-real-estate-week-in-review-may-17-23-2015

#110 Julia on 05.28.15 at 10:57 am

#108 Contrarian Coyote
“I’m with Garth on this one. I’ll take experience for ‘assets’ any day. Experience in Canada or overseas.

I wouldn’t trade my 10 years abroad for any of the particle board shacks my friends have around the 905. Collect experiences not assets for the win. Stay mobile.”

Totally agree. He should take advantage of the opportunity to experience the world. Can’t do that with a mortgage or event when renting once you have a family and kids.

#111 Vamanos Pest on 05.28.15 at 11:21 am

#17 Realtor007

I LOVE how the uneducated, such as you, are able to spew absolute BS as if it is uncontested fact. Honestly, I wish I was that ignorant, so I could not be weighed down by annoyances, like facts.

Let me tell you about my last several years (the ones that I screwed myself by not buying real estate).

2008: out of market
2009: 30% return
2010: 22% return
2011: 4% loss
2012: 27% return
2013: 23% return
2014: 18% return

Yep, after compounding that’s a 172% return. Or as you called it, “screwed”.

Dude, stick to your strengths and go sell some houses to some idiots. You’re embarrassing yourself here.

#112 Holy Crap Wheres The Tylenol on 05.28.15 at 11:29 am

#108 Contrarian Coyote on 05.28.15 at 9:59 am
#105 Holy Crap wheres The Tylenol on 05.28.15 at 9:16 am
Well, this is all irrelevant to Mike. Screw a mortgage. He’s off to Copenhagen. Now tell me you’re not a little green.
_____________________________________________
Not really, great people (the whole country around same population as the GTA), great standard of living, good health care system, a little boring, land is flat as hell, nothing of any great significance to say other than very cool land of the Vikings. Oh yes and the weather there is crappy, very cool and lots of rain. Once had to commission a system in a place called Middlefart and spent three weeks there. Have to say though the company made wind turbine bladed and their factory was the most modern architectural building I have ever seen.
So nope not green!

The point is gaining experience, not changing countries. How obvious is that? — Garth

I’m with Garth on this one. I’ll take experience for ‘assets’ any day. Experience in Canada or overseas.
I wouldn’t trade my 10 years abroad for any of the particle board shacks my friends have around the 905. Collect experiences not assets for the win. Stay mobile.
__________________________________________
Not disagreeing on overseas experience or intro-provincial for that matter. Ive been to many countries around the world for work and my air force career. Just didn’t find Denmark or for that matter many other places that conducive to my business interests. The only place that I would ever consider moving back to for business experience is SoCal or the Si Valley. Best business and technology experience I ever had.

#113 Millmech on 05.28.15 at 11:40 am

#78
It’s amazing the career opportunities in the trade and yet it’s so hard to find kids who want to take them.My GF got severanced out of her accounting job with a retraining package,I told her to get a trade she,just got her red seal and is making $48.00/hr on the job she’s at with no end in site for work.makes more in three months than she would mKe in a year crunching numbers.

#114 Godth on 05.28.15 at 12:12 pm

#64 Andrew Woburn on 05.27.15 at 10:23 pm

Vaclav Smil – Drivers of environmental change: focus on energy transitions
https://www.youtube.com/watch?v=nJxmlNyu4sE

60 Minutes Highlights Importance of Rare Earth Elements
https://www.youtube.com/watch?v=N1HiX0HiAuo

Very green, very realistic.

#115 Mike S on 05.28.15 at 12:33 pm

Probably a stupid question

But why do banks started to increase the dividends every quarter

For instance CIBC, divident goes:
1 -> 1.03 -> 1.06 -> 1.09

I don’t mind it of course, but why not adjusting the dividend once a year?

#116 Ogopogo on 05.28.15 at 12:42 pm

#8 Former Fool on 05.27.15 at 6:53 pm
What a great story! Yes, I am a little green. I only wish I had met you Garth when I was 18 years old, and have you smack some sense into me. Oh well.

Ditto! Instead, I was raised by well-meaning, financially illiterate parents. Why, just last week my dad repeated his mantra that he expects a “crash surpassing any we’ve seen so far” will happen soon.

Sigh.

#117 bill on 05.28.15 at 12:44 pm

#33 seeing it from both sides on 05.27.15 at 8:37 pm
” Especially when vacancy rate in Van is virtually 0.”
-not the case here. we are still having difficulty finding tenants that have a credit rating… suites ,on average,take a month or more to rent out.
this was not always the case believe me.
”Rents are just as insane in Van ”
1200$can a month for a 1 bedroom if you want cheaper you will have to go farther afield. lots of folks do. this is a very reasonable rent for where the apt is situated.
[the apt block is situated close to Broadway and Arbutus in Kits ,thus it is close to everything – the beach ,’99’ stop, restaurants etc.]
disclaimer -I sometimes work for a company that holds about 10 or so [ a couple are for sale] apartment blocks in Vancouver Burnaby and Surrey and live in one of the Kits apts.

#118 Ogopogo on 05.28.15 at 12:46 pm

Like Mike, I also lived abroad for part of my 20s and 30s. Best thing I ever did. For the second experience of being an expat, if I’d bought a house I would have been screwed trying to sell to become a non-resident and thus avoid paying taxes in Canada. The market in the Ontario town where I was then living was as moribund as it gets.

As renters, we simply gave notice and took off within two months of the job offer abroad. Can’t beat mobility + liquidity in the 21st century.

#119 BillyBob on 05.28.15 at 1:14 pm

It’s sad how many losers there are on here today doing the (sadly, typically Canadian) thing of running down the idea of having the guts to actually try something different, such as relocating to Denmark. I mean, really…some guy from the UK running down Danish weather because it’s dark and cold in the winter? Ironic, much?! lol I can tell you I’ll take the average Danish girl walking down the street to pretty much any slapper wandering around the UK!

I would doubt that one in 100 of the armchair experts tonight on living overseas have actually done so – or even visited anywhere in Scandinavia.

Idiot Realtor 007:

“Michael is an outlier and not a representative of the average person, not many people go off shore to work, the fact is that there are far more people who have screwed themselves over the last 7 years by waiting on a RE correction then one guy who benefited and now ships off to Denmark.”

Here’s the thing – not everyone wants to be average.

As I write this I’m sitting in a suite in F on an Emirates flight, enjoying the OnAir wi-fi for $1, repositioning from Dubai to Atlanta in my job as an airline pilot in Dubai. I was perfectly willing to go offshore to work, at first by necessity, and later by choice. Now when I listen to the people trying to find fault with Copenhagen – one of the most beautiful, livable cities in the world, the small-minded ignorance of my fellow countrymen/women is embarrassing. It’s not only missing the point about flexibility and mobility, it just makes Canadians sound like hillbillies. Lose the Tall Poppy Syndrome, get out and see the world.

And Smoking Man, I made it to the left seat of a B777, traveling the world (including Denmark, amongst about 130 other countries) making tax-free income, without the benefit of any higher education as well. I may not be as anti-education as you are, but I say you play the cards you’re dealt and parlay them into something big.

So to Michael I say well done, for the naysayers I feel only pity. Trapped by limits that are wholly of your own making.

#120 James Deen on 05.28.15 at 1:16 pm

#101 Jane 24

“Daughter just got back from a business trip to Finland and she reported that two British beers (strangely enough from our local brewery Badger here in Southern England) were £11 each, that is over $20 Canadian. Each !!”

That’s only true if you’ve had to buy Euro’s with Canadian peso’s. If your daughter was being paid in Euro the cost would be half…with USD 40% less. It is only the extremely low valuation of the Canadian peso that makes it seem like Europe is super expensive.

A Big Mac meal in London is 6 pounds. One pound in England spends the same as a dollar but costs $1.88 for a Canadian to buy. The Big Mac meal would cost a Canadian $11.28 because they would have had to buy the pound in the first place to use as local currency.

It is a Canadian dollar in the toilet…not a consumer price in EU terms that is super expensive.

I have a theory that since the low dollar policy was brought in more than thirty years ago it has forced Canadians to avoid the traditional European vacation and go into the third world instead…and this change has brought a different mindset back to Canada and introduced the kind of bleeding heart policies we have in Canada towards the peasant and rudimentary third world cultures .

Have Canadian youth been specifically kept away from Europe and forced to wallow in the third world in order to enforce the liberal ‘one world’ ideology of the 1970’s?

#121 Holy Crap Wheres The Tylenol on 05.28.15 at 1:22 pm

#116 Vamanos Pest on 05.28.15 at 11:21 am
#17 Realtor007
I LOVE how the uneducated, such as you, are able to spew absolute BS as if it is uncontested fact. Honestly, I wish I was that ignorant, so I could not be weighed down by annoyances, like facts.
Let me tell you about my last several years (the ones that I screwed myself by not buying real estate).
2008: out of market
2009: 30% return
2010: 22% return
2011: 4% loss
2012: 27% return
2013: 23% return
2014: 18% return
Yep, after compounding that’s a 172% return. Or as you called it, “screwed”.
Dude, stick to your strengths and go sell some houses to some idiots. You’re embarrassing yourself here.
__________________________________________
Congrats #116 Vamanos Pest your investing skills are well founded. You are on a five run with one small blip. Most people unfortunately associate real estate wealth with the value of their humble abode. It is a home, not an investment. The only way to make money on real estate is to by it and sell it to others. Not live in it and count your shekels.

#122 Holy Crap Wheres The Tylenol on 05.28.15 at 1:29 pm

#112 Smoking Man on 05.28.15 at 10:48 am

Anyone catch the Canadian current account balance today. Another disaster. -17.5 Billion.

Ouch. Next time a bay street salad eater says no rate cut coming. It means they missed todays report.

Dr Smoking Man
PhD Herdonomics.
__________________________________________

See told you! You have a degree and a doctorate!
You Sir are an one of the educated masses. All in all your just another brick in the wall. Welcome my son, welcome to the machine. Where have you been? It’s alright we know where you’ve been.

https://www.youtube.com/watch?v=lt-udg9zQSE

#123 jess on 05.28.15 at 1:37 pm

leverage so who was the auditor?

Press Release
SEC Charges Deutsche Bank With Misstating Financial Reports During Financial Crisis
FOR IMMEDIATE RELEASE
2015-99
Washington D.C., May 26, 2015 —

The Securities and Exchange Commission today charged Deutsche Bank AG with filing misstated financial reports during the height of the financial crisis that failed to take into account a material risk for potential losses estimated to be in the billions of dollars.

Deutsche Bank agreed to pay a $55 million penalty to settle the charges.

An SEC investigation found that Deutsche Bank overvalued a portfolio of derivatives consisting of “Leveraged Super Senior” (LSS) trades through which the bank purchased protection against credit default losses.

http://www.sec.gov/news/pressrelease/2015-99.html

======

The US Department of Justice has charged 15 Chinese nationals with developing a scheme to have imposters take university entrance exams.

Prosecutors said suspects used fake passports to trick administrators into allowing people other than legitimate test takers to sit the exams.

The scheme took place between 2011 and 2015 mostly in western Pennsylvania, authorities said.

he counterfeit test takers sat for the Scholastic Aptitude Test (SAT) – a major university entrance exam in the US – as well as the Test of English as a Foreign Language (Toefl) and the Graduate Record Examination (GRE), the Justice Department said.

#124 needachange on 05.28.15 at 1:39 pm

#118
I am kind of the same boat as your gf. Got let go and received severance. not sure I want to continue with what I am doing. What did you gf end up pursuing? what were her steps?

#125 The 7% Solution on 05.28.15 at 1:43 pm

Re #18

I see that today’s news (CBC) stated “The magnificent CPP return” of “19 per cent”. Actually “CPP’s real long-run return, even averaging in this bumper year, is a far less stunning 6.2 per cent”

http://www.cbc.ca/news/business/cpp-plan-won-t-help-savers-or-stop-the-pension-crisis-don-pittis-1.3089335

Garth you keep advising for the “Diversified and Balanced Portfolio giving 7% annual returns. I’ve looked around and can’t figure this one out. Even Gov Canada can’t and they have a bigger “in” than I do.

Recently put a chunk into a Canadian Fixed Income Balanced fund of moderate risk (retired) that since 2008 Avg 5.03% (4.02 YTD).

Where’s the 7% Solution ???

Invest properly and find out. — Garth

#126 Squatter on 05.28.15 at 2:09 pm

#20 Mike S on 05.28.15 at 12:33 pm

Probably a stupid question

But why do banks started to increase the dividends every quarter

For instance CIBC, divident goes:
1 -> 1.03 -> 1.06 -> 1.09

I don’t mind it of course, but why not adjusting the dividend once a year?
———————————————
They are probably just trying to be sexy for the shareholders. Helps the stock go up –> the managers make more money with their stock options plan.
Just my 2 cents opinion…

#127 pBrasseur on 05.28.15 at 2:46 pm

When rates return to normal Denmark will go bankrupt!

#128 Rational Optimist on 05.28.15 at 3:02 pm

132 pBrasseur on 05.28.15 at 2:46 pm

“When rates return to normal Denmark will go bankrupt!”

Maybe…but then they’ll probably manage to get themselves even more UN jobs located there.

#129 Smoking Man on 05.28.15 at 3:15 pm

#127 Holy Crap Wheres The Tylenol on 05.28.15 at 1:29 pm
#112 Smoking Man on 05.28.15 at 10:48 am

Anyone catch the Canadian current account balance today. Another disaster. -17.5 Billion.

Ouch. Next time a bay street salad eater says no rate cut coming. It means they missed todays report.

Dr Smoking Man
PhD Herdonomics.
__________________________________________

See told you! You have a degree and a doctorate!
You Sir are an one of the educated masses. All in all your just another brick in the wall. Welcome my son, welcome to the machine. Where have you been? It’s alright we know where you’ve been.

https://www.youtube.com/watch?v=lt-udg9zQSE
..
Not really, I just arrogantly give myself the designation of PhD in Herdonomics.

No such course taught anywhere. The combo of economics, the populations, the current zigiest all rolled up.

I’m the only one that teaches it, and I do it here for free.

So going forward , if anyone wants a question answered you must address me As Dr Smoking Man if you want a response.

#130 DM in C on 05.28.15 at 3:21 pm

Coast Capital’s marketing plan — give away $5-$1000 to 300 people to help with ‘rent’ in Vancouver

http://www.huffingtonpost.ca/2015/05/28/piggy-bank-giveaway-vancouver_n_7461418.html

#131 Blacksheep on 05.28.15 at 3:37 pm

SWL # 73,

“Yes or No?”
———————————————–
Cannot give a definitive “Yes or No” because I simply haven’t researched the topic.

How bought some solid links to share with us ignorant sods?

#132 bdy sktrn on 05.28.15 at 3:53 pm

you must address me As Dr Smoking Man if you want a response.
——————————
Dr. implies a paper obedience cert.

what about ‘guru’, ‘oracle’, or ‘prophet’. Maybe ‘wizard’ , like in oz!

also, there is no need to capitalize ‘degree’ even if you don’t have one. not that one is needed for success.

look at billybob (congrats to you dude) , he is doing about the only job i would ever want(other than the one i have now – and it pays 0) and he never did no fancy schoolin. i did mech eng.

really talented ppl are born with it, a small subset of talents are reqd for becoming a doc or eng or mba, but making it really big almost always involves other types of skills, some of which you seem to have.

and have the hell can you drink that jd swill? try the turkey man.

#133 Blacksheep on 05.28.15 at 3:57 pm

“How about”

#134 raisemyrent on 05.28.15 at 4:22 pm

great song link by Smokey. he sure knows his stuff. Sm key have you read the Foundation books by Asimov? Being called a Hari Seldon is quite the honour I should think. And wasn’t I the first one to call you Doctor?

on another topic. I wish I’d driven by that Coast Capital line. I always wonder if they’re giving money away when I see the herd lining up at McD’s or TH’s, but this time, they were!

#135 SWL1976 on 05.28.15 at 4:22 pm

#136 Blacksheep

How bought some solid links to share with us ignorant sods?

I most certainally can. Although these are the same links I posted earlier

Global Research has good cred in my books, and this is a good artical on H.A.A.R.P. A contriversial project started in Alaska and sponsered by the US Military

Dane Wigington along with some other very smart and informed people out of California have researched the subject extensively, and are uncovering more all the time.

These are not ‘nutbar’s’ or ‘tin foil hatters’ but scientist, doctors, pilots, and informed citizens speacking up.

Now from my own observations living on the West Coast, Vancouver Island. I first noticed strange planes and their trails in the sky over 10 years ago, and rarely a week goes by where they are not active.

This is very real

Once one notices it is blatantly obvious

Cheers, but sorry for the bad news

#136 Josh in Calgary on 05.28.15 at 4:34 pm

#55 Realtor007 on 05.27.15 at 9:43 pm
You should learn the power of leverage before making such ridiculous statements. And many have been waiting and still are, hence this blogs 50mm visits annually.

Btw, if you know of any bank willing to lend $500k with a 5% collateral for ETF purchases let me know, I’m interested.
——————
Leverage is also great at amplifing risk. If you’re in a bull market then leverage is a great thing. If you assume the bull will continue to rise indefinitely then you can get wiped out entirely. A bank won’t lend you money at 5% down for an ETF because and equity ETF can lose 50% in a 2008 style crash. They’ll probably lend to you at 1 to 1 and then at least they are relatively sure that you can cover the loan.
Now look at that 20 to 1 that you suggested for real estate. If it goes up 5%, then you doubled your money … but if it goes down 5% you’ve lost EVERYTHING. Worse, if it goes down more, like many have suggested you have lost money you don’t even have and are stuck in a debt trap. Worse yet, you can get out of an ETF for $10. With a house you’ll have to pay something like an additional 5% to get out of … not 5% of your investment, that same 5% that was you entire down payment. So even if housing prices hold flat you’ll have to eat all of your equity if you decide to move on.

I’m not anti-real estate and neither is Garth. But people should be aware of the costs and risks involved. And if you’re thinking of a pure investment then there are better places to put your money.

Especially for young people. I’ve got a 5 year rule of thumb for buying a house. If you’re not relatively sure that you’ll be staying in one place for 5 years then don’t buy. How many young people are sure of that?

As per this latest post by Garth, freedom and flexibility are great trump cards that allow you to take advantage of whatever opportunities come your way. There’s a lot of value in that.

#137 rosie "moving forward" in the knowledge that, "this won't end well" on 05.28.15 at 4:40 pm

Must have forgot to bring the handlers from the PMO. Budget cuts?

http://www.huffingtonpost.ca/2015/05/28/joe-oliver-labour-reform-comments_n_7463424.html?utm_hp_ref=canada-business

#138 Keith in Calgary on 05.28.15 at 4:44 pm

#141 Josh in Calgary

Great post…………!1

I doubt you’ll find any bank that will lend you money at a 1-1 ratio for equity investments. When I was a banker we needed to margin the account and usually wanted 25% equity. If you were out of margin by 5% we called, and if you didn’t pay up in 24 hours, we sold you out.

#139 Raincouver on 05.28.15 at 4:46 pm

http://money.cnn.com/gallery/real_estate/2015/05/20/worlds-hottest-luxury-housing-markets/4.html

Enough Said!!

#140 jess on 05.28.15 at 4:53 pm

“wrinklies”

http://www.bloomberg.com/news/articles/2015-05-28/worldwide-elderly-crime-rates-increase

#141 Blacksheep on 05.28.15 at 5:15 pm

SWL # 140,

“Cheers, but sorry for the bad news”
——————————————
No worries on the news, the Unicorn and Lollipop world we all grew up in went bye, bye, about 15 years ago.

Having some insight to the Red Pill realities of society are something I see as an advantage, not a burden.

Thanks for the links.

#142 The 7% Solution on 05.28.15 at 5:15 pm

correction Garth “Invest properly and find out.” And how does this amateur do that? All the Investment Advisors who are part of an unregulated industry want a Pound of Flesh … Then it’s still buyer beware. There have been so many Investment scams, Ponzi’s, and Wall Street crooks were do we go ???

That ‘unregulated industry’ is intensely regulated, and a fee-based should cost no more than 1% (tax-deductible) – far less than owning mutual funds (not deductible). Stop feeling like a victim and start researching. — Garth

#143 Godth on 05.28.15 at 5:50 pm

#140 SWL1976 on 05.28.15 at 4:22 pm

It shouldn’t surprise anyone, it’s just an extension of the control freak society we live in. It’s nothing new but we’ve reached the denouement is all.
Man, Conqueror of Nature, Dead at 408
http://thearchdruidreport.blogspot.ca/2013/12/man-conqueror-of-nature-dead-at-408.html

#144 saskatoon on 05.28.15 at 5:52 pm

#140 SWL1976

but dude…

aren’t they are forcing people to pay for these secretive giant antennae arrays–ones that throw incredible amounts of radiation up into the sky–heating up the ionosphere…causing weather disruptions, and scrambling brain wave frequency patterns…for you?

IT’S ALL FOR YOU!

don’t ya know?

to think otherwise…

is blatant conspiracy theory.

#145 Squirrel meat on 05.28.15 at 6:06 pm

#140 SWL1976 on 05.28.15 at 4:22 pm

#136 Blacksheep

How bought some solid links to share with us ignorant sods?

I most certainally can. Although these are the same links I posted earlier

Global Research has good cred in my books, and this is a good artical on H.A.A.R.P. A contriversial project started in Alaska and sponsered by the US Military

Dane Wigington along with some other very smart and informed people out of California have researched the subject extensively, and are uncovering more all the time.

These are not ‘nutbar’s’ or ‘tin foil hatters’ but scientist, doctors, pilots, and informed citizens speacking up.

Now from my own observations living on the West Coast, Vancouver Island. I first noticed strange planes and their trails in the sky over 10 years ago, and rarely a week goes by where they are not active.

This is very real

Once one notices it is blatantly obvious

Cheers, but sorry for the bad news
—————————————————-

What a pant-load. Dane Wingnuts.

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

#146 Don't stand for the sexism on 05.28.15 at 6:09 pm

Bob Rennie is aligned with Garth on a few points of view, although they disagree on others. He denies the impact of foreign money and he says that the bank of mom and dad are driving prices today. You couldn’t blame people for putting Garth and Bob in the same bucket in some circumstances.

However, today Rennie crossed a line. He is frustrated that as an old white man, he has to share the stage with a young woman.

In referring to Eveline Xia, he said:
“Rennie said his data showed buyers were happy to look far afield to find the home they wanted. “Yet we’re all paying attention to these girls, they’re holding up banners, and wanting affordability to be a party game. And it is a really serious issue,” he said.”

It’s hugely sexist. Garth, for the sake of your own reputation and the reputation of all old white men, you need to call this guy out on his sexism in your blog tonight.

#147 Millmech on 05.28.15 at 7:02 pm

129 needachange
You can get Garth to forward your email address to me and I can give you more info that way,if your comfortable with that.

#148 saskatoon on 05.28.15 at 7:08 pm

#151 Don’t stand for the sexism

ahhhh yes.

white male privilege!

it’s everywhere!

https://www.youtube.com/watch?v=3mzYKWDx6YI

#149 crowdedelevatorfartz on 05.28.15 at 8:49 pm

@#151 Dont stand for the whatever

Perhaps Bob Rennie doesnt like Ms Xia because he’s 67% gay?
http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=10&cad=rja&uact=8&ved=0CFgQFjAJ&url=http%3A%2F%2Fgay-or-straight.com%2FBob%2520Rennie&ei=YbdnVfHaMtLmoATa7YOYCQ&usg=AFQjCNG4bN–BbGY0oE5i_NTH5KMiNBHJw&bvm=bv.94455598,d.cGU

and she’s a “girl”?

#150 Roial1 on 05.29.15 at 12:53 pm

1. Travel DOES broaden ones mind. This is a fact.

2. It is easy to make more than 7%. So far, according to my wife, we have far surpassed the 7% return. (My wife is a Swiss trained business grad. I on the other hand have a hard time deciding if it is a stock or a bond. LOL)

3. Garth, is it just my suspicious mind or are the Neo-con MPs making like rats and deserting a sinking ship?
Seems as if a lot of them are “retiring” The one from my riding is among them.
Unlike you, he is a good “yes man” so Harpo made him a minister. He did not last long as minister as his incompetence sprang out like a mushroom on a rainy day. Oh well, his pension will be spent here in his home riding so some good will accrue to us.

4. Smoking man, I hate to encourage you, BUT! keep it up, the laughs are worth it.

#151 Rexx Rock on 05.29.15 at 3:04 pm

Its funny, 2 pundits on BNN today said the same thing I’ve been calling for 0.25% cuts coming this summer.Canada’s central bank is showing its true colours and Canadians might not believe their lies and propaganda anymore.Read currency wars by Jim Rickards and see what might happen soon.Canada is becoming a failed state and its running out of bullets to keep this ponzi scheme going.
Its not all bad news, its a great time to be a realtor or a mortgage broker in Canada’s 2 big cities.Inflation will be coming to Canada big time.